Document:

Exhibit 10.4

	
 

SECURITIES PURCHASE AGREEMENT

 

by and between

 

META FINANCIAL GROUP, INC.

 

and

 

 

HAWK RIDGE MASTER FUND LP

 

June 29, 2015

 

 

TABLE OF CONTENTS

	 	 	 	
Page

	 	 	 	 
	
1.

	 	
PURCHASE AND SALE OF COMMON STOCK

	
1

	 	
(a)

	
Shares of Common Stock

	
1

	 	
(b)

	
Closing

	
1

	 	
(c)

	
Purchase Price

	
2

	 	
(d)

	
Form of Payment

	
2

	 	 	 	 
	
2.

	 	
BUYER’S REPRESENTATIONS AND WARRANTIES

	
2

	 	 	 	 
	 	
(a)

	
Organization; Authority

	
2

	 	
(b)

	
No Public Sale or Distribution

	
2

	 	
(c)

	
Accredited Investor Status; Sophistication

	
2

	 	
(d)

	
Reliance on Exemptions

	
3

	 	
(e)

	
Certain Securities Transactions

	
3

	 	
(f)

	
Information

	
3

	 	
(g)

	
No Governmental Review

	
3

	 	
(h)

	
Transfer or Resale

	
4

	 	
(i)

	
Legends

	
4

	 	
(j)

	
No Conflicts

	
5

	 	
(k)

	
Bank Regulatory Agencies

	
5

	 	
(l)

	
Status of the Buyer

	
6

	 	
(m)

	
Stock Ownership

	
6

	 	
(n)

	
Residency

	
6

	 	
(o)

	
No Broker

	
6

	 	 	 	 
	
3.

	 	
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

	
6

	 	 	 	 
	 	
(a)

	
Organization and Qualification

	
7

	 	
(b)

	
Status of Company and Subsidiaries

	
7

	 	
(c)

	
Authorization; Enforcement; Validity

	
7

	 	
(d)

	
Issuance of Shares; No Restrictions on Transfer

	
8

	 	
(e)

	
No Conflicts

	
8

	 	
(f)

	
Consents

	
8

	 	
(g)

	
No General Solicitation; Placement Agent’s Fees

	
9

	 	
(h)

	
No Registration Due to Integrated Offering

	
9

	 	
(i)

	
Application of Takeover and Other Protections; Rights Agreement

	
9

	 	
(j)

	
SEC Documents; Financial Statements

	
9

	 	
(k)

	
Accuracy of Information

	
10

	 	
(l)

	
Absence of Certain Changes.

	
10

	 	
(m)

	
No Undisclosed Liabilities

	
11

	 	
(n)

	
Conduct of Business; Regulatory Permits

	
12

	 	
(o)

	
Investment Company Status

	
12

 

i

	 	
(p)

	
Transactions With Affiliates

	
12

	 	
(q)

	
Agreements with Regulatory Agencies

	
13

	 	
(r)

	
Equity Capitalization

	
13

	 	
(s)

	
Subsidiaries

	
14

	 	
(t)

	
Absence of Litigation

	
15

	 	
(u)

	
Properties and Leases

	
15

	 	
(v)

	
Insurance

	
15

	 	
(w)

	
Tax Status

	
15

	 	
(x)

	
Manipulation of Price

	
16

	 	
(y)

	
Shell Company Status

	
16

	 	
(z)

	
U.S. Real Property Holding Corporation Status

	
16

	 	
(aa)

	
Allowance for Possible Loan Losses

	
16

	 	
(bb)

	
Intellectual Property

	
16

	 	
(cc)

	
No Disqualification Events

	
16

	 	 	 	 
	
4.

	 	
COVENANTS.

	
17

	 	 	 	 
	 	
(a)

	
Form D and Blue Sky

	
17

	 	
(b)

	
Reports

	
17

	 	
(c)

	
Listing

	
17

	 	
(d)

	
Conduct of the Business

	
18

	 	
(e)

	
Access to Information

	
18

	 	
(f)

	
Efforts to Consummate Transaction; Cooperation

	
18

	 	
(g)

	
NASDAQ Stock Issuance Notice

	
19

	 	
(h)

	
Expenses

	
19

	 	
(i)

	
Pledge of Shares

	
19

	 	
(j)

	
Disclosure of Transactions and Other Material Information

	
19

	 	
(k)

	
Certain Future Actions.

	
20

	 	
(l)

	
Standstill

	
22

	 	
(m)

	
Stock Certificates

	
23

	 	
(n)

	
Disclosure Letter Updates

	
23

	 	
(o)

	
Disqualification Events

	
24

	 	
(p)

	
Use of Proceeds

	
24

	 	 	 	 
	
5.

	 	
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL

	
24

	 	 	 	 
	
6.

	 	
CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE

	
25

	 	 	 	 
	
7.

	 	
SURVIVAL AND INDEMNIFICATION

	
27

	 	 	 	 
	 	
(a)

	
Survival

	
27

	 	
(b)

	
Indemnification

	
27

	 	
(c)

	
Procedure

	
28

	 	
(d)

	
Reimbursement

	
29

	 	 	 	 
	
8.

	 	
TERMINATION

	
29

	 	 	 	 
	 	
(a)

	
Termination by Mutual Agreement

	
29

	 	
(b)

	
Termination for Failure to Close

	
29

 

ii

	 	
(c)

	
Termination for Breach

	
29

	 	
(d)

	
Effects of Termination

	
29

	 	 	 	 
	
9.

	 	
MISCELLANEOUS

	
30

	 	 	 	 
	 	
(a)

	
Definitions

	
30

	 	
(b)

	
Governing Law; Jurisdiction; Jury Trial

	
36

	 	
(c)

	
Counterparts

	
36

	 	
(d)

	
Headings

	
36

	 	
(e)

	
Severability

	
36

	 	
(f)

	
Entire Agreement; Amendments

	
37

	 	
(g)

	
Notices

	
37

	 	
(h)

	
Successors and Assigns

	
38

	 	
(i)

	
No Third Party Beneficiaries

	
38

	 	
(j)

	
Further Assurances

	
38

	 	
(k)

	
No Strict Construction

	
38

	 	
(l)

	
Remedies

	
38

	 	
(m)

	
Acknowledgment Regarding Buyer’s Shares

	
38

	 	
(n)

	
Buyer’s Acknowledgments Regarding Other Private Placements

	
38

	 	
(o)

	
Interpretive Matters

	
39

Schedules

Schedule 9(a)     Knowledge of the Company

Disclosure Letter

Exhibits

Exhibit A    Form of Registration Rights Agreement

 

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SECURITIES PURCHASE AGREEMENT

SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of June 29, 2015, by and between Meta Financial Group, Inc., a Delaware corporation, with headquarters located at 5501 South Broadband Lane, Sioux Falls, South Dakota 57108 (the “Company”), and Hawk Ridge Master Fund LP, a Delaware limited partnership (the “Buyer”). Certain defined terms used herein are listed in Section 9(a).

WHEREAS:

A.            Each of the Company and the Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

B.            The Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, certain shares of common stock, par value $0.01, of the Company (the “Common Stock”).

C.            Contemporaneously with and as a condition to the Closing, the Company and the Buyer will enter into a Registration Rights Agreement pursuant to the terms of which the Company shall file a registration statement with respect to the resale of the shares of Common Stock purchased by the Buyer hereunder.

D.            The Company desires to issue and sell additional shares of Common Stock pursuant to one or more other private placements with Other Investors, which sales are intended to close simultaneously with the Closing hereunder or at such other times as the parties thereto shall agree (the “Other Private Placements”).

E.            The Company’s Board of Directors has approved the transactions contemplated by this Agreement and the Other Private Placements.

NOW, THEREFORE, the Company and the Buyer hereby agree as follows:

1.                   PURCHASE AND SALE OF COMMON STOCK.

(a)          Shares of Common Stock. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the Company shall issue and sell to the Buyer, and the Buyer agrees to purchase from the Company, on the Closing Date, 93,809 shares of Common Stock (the number of shares of Common Stock so purchased by the Buyer is referred to herein as the “Shares”).

(b)          Closing. The closing (the “Closing”) of the purchase of the Shares by the Buyer shall occur at the offices of Katten Muchin Rosenman LLP, 525 W. Monroe Street, Chicago, IL 60661. The date and time of the Closing (the “Closing Date”) shall be substantially concurrently with the consummation of the Acquisition, subject to the satisfaction or waiver (to the extent permitted by applicable law) of the conditions to the Closing set forth in Sections 5 and 6 below by the parties hereto (other than those conditions required to be satisfied on the Closing Date, in which case such conditions shall have been so satisfied or waived as of the Closing Date) or such other date and time as is mutually agreed to by the Company and the Buyer.

 

(c)          Purchase Price. The aggregate purchase price for all the Shares to be purchased by the Buyer (the “Purchase Price”) shall be an amount equal to $4,000,015.76.

(d)          Form of Payment. On the Closing Date, (i) the Buyer shall pay the Purchase Price to the Company for the Shares to be issued and sold to the Buyer at the Closing, by wire transfer of immediately available funds in accordance with the Company’s written wire instructions which shall be given to the Buyer in writing not later than one (1) day prior to the Closing Date, and (ii) the Company shall instruct its transfer agent, Computershare Trust Company, N.A. (the “Transfer Agent”), to issue and deliver to the Buyer the Shares in a single stock certificate, free and clear of all restrictive legends (except as expressly provided in Section 2(i) hereof), evidencing the number of Shares being purchased by the Buyer.

2.                  BUYER’S REPRESENTATIONS AND WARRANTIES. As of the date hereof, and as of the Closing Date, the Buyer represents and warrants that:

(a)          Organization; Authority. The Buyer is a limited partnership duly formed, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and each other Transaction Document to which it is or will be a party and otherwise to carry out its obligations hereunder and thereunder. This Agreement and each other Transaction Document to which the Buyer is or will be a party have been, or when executed and delivered will have been, duly authorized, executed and delivered by the Buyer and constitute or, when executed and delivered, will constitute the legal, valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

(b)          No Public Sale or Distribution. The Buyer is acquiring the Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempt from the registration requirements under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Shares for any minimum or other specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to a registration statement or an exemption from the registration requirements under the 1933 Act. The Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to resell or distribute any of the Shares in violation of the 1933 Act.

(c)          Accredited Investor Status; Sophistication.

(i)            The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

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(ii)            The Buyer has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of the type contemplated hereby that it is capable of (A) evaluating the merits and risks of an investment in the Shares and making an informed investment decision, (B) protecting its own interests (financially or otherwise), and (C) bearing the economic risk of such investment for an indefinite period of time.

(d)          Reliance on Exemptions. The Buyer understands that the Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Shares.

(e)          Certain Securities Transactions. During the period (the “Pre-Announcement Period”) beginning with the date on which the Buyer commenced discussions with the Company in respect of the transactions contemplated hereby and ending on the date of the Pre-Closing 8-K filing (as defined below), neither the Buyer nor any Affiliate controlled by the Buyer, nor to the knowledge of the Buyer any Affiliate controlling the Buyer or under common control with the Buyer, has entered, or will enter, into any transaction in respect of or involving the Common Stock or any Convertible Securities or Options, including any purchase or sale, derivative or hedging transaction, other than the transactions contemplated by this Agreement. Without limiting the foregoing, during the Pre-Announcement Period, the Buyer has not and will not engage in any transaction constituting a “short sale” (as defined in Rule 200 of Regulation SHO under the Securities Exchange Act of 1934, as amended (the “1934 Act”)) of shares of Common Stock or establish an open “put equivalent position” (within the meaning of Rule 16a-1(h) under the 1934 Act) with respect to the Common Stock.

(f)          Information. The Buyer and its advisors, if any, have received all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Shares which have been requested by the Buyer. The Buyer and its advisors, if any, have been afforded the opportunity to ask questions of, and have received answers from, the Company regarding the Company and the transactions contemplated hereby. Neither such inquiries nor any other due diligence investigations conducted by the Buyer or its advisors or representatives, nor any other statement made by Buyer in this Section 2, shall modify, amend or affect the Company’s representations and warranties contained herein or the Buyer’s right to rely thereon. The Buyer understands that its investment in the Shares involves a high degree of risk. The Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Shares.

(g)          No Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

 

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(h)          Transfer or Resale. The Buyer understands that:

(i)             the Shares have not been and, except as provided in the Registration Rights Agreement, are not being registered under the 1933 Act or any state securities Laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder and sold, assigned or transferred pursuant to an effective registration statement, (B) the Buyer shall have delivered to the Company an opinion of counsel reasonably acceptable to the Company, which opinion shall be in a form reasonably acceptable to the Company and the transfer agent for the Common Stock, to the effect that such Shares to be sold, assigned or transferred have been or are being sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Buyer provides the Company with reasonable assurance, and certifications to the effect, that (I) such Shares have been or are being sold, assigned or transferred pursuant to Rule 144 promulgated under the 1933 Act (or a successor rule thereto) (“Rule 144”) or Rule 144A promulgated under the 1933 Act (or successor rule thereto) (“Rule 144A”) or (II) the Buyer is not an Affiliate of the Company and the Shares can then be sold by the Buyer pursuant to Rule 144 without any restrictions or limitations thereunder and without compliance with the current public information requirement thereof;

(ii)            any sale of the Shares made in reliance on Rule 144 or Rule 144A shall be made in accordance with the terms of Rule 144 or Rule 144A, as applicable, and, further, if Rule 144 or Rule 144A is not applicable, any resale of the Shares under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and

(iii)            except as set forth in the Registration Rights Agreement, neither the Company nor any other Person is under any obligation to register the Shares under the 1933 Act or any state securities Laws or to comply with the terms and conditions of any exemption thereunder.

The Shares may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Shares and such pledge of Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and, except as required by applicable Law, the Buyer shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement, including this Section 2(h), in connection with such a pledge.

(i)          Legends. The Buyer understands that the stock certificates representing the Shares, except as set forth below, shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates in violation of the restrictions on transfer set forth herein):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE 1933 ACT OR (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE COMPANY AND THE TRANSFER AGENT FOR THE COMPANY’S COMMON STOCK, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.

 

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The legend set forth above shall be removed and the Company shall issue one or more certificates without such legend to the holder of the Shares upon which it is stamped, unless otherwise required by state securities Laws, if (i) such Shares are registered for resale and shall be resold pursuant to an effective registration statement under the 1933 Act, (ii) the Buyer shall have delivered to the Company an opinion of counsel reasonably acceptable to the Company, which opinion shall be in a form reasonably acceptable to the Company and the transfer agent for the Common Stock, to the effect that such Shares may be freely sold without restriction or limitation without registration under the 1933 Act, or (iii) such holder provides the Company with reasonable assurance, and certification to the effect, that (A) the Shares have been or are being sold, assigned or transferred pursuant to Rule 144 or Rule 144A or (B) such holder is not an Affiliate of the Company and the Shares can be sold by such holder pursuant to Rule 144 without any restrictions or limitations under Rule 144 and without compliance with the current public information requirement thereof.

(j)          No Conflicts. The execution, delivery and performance by the Buyer of this Agreement and the other Transaction Documents to which it is or will be a party and the consummation by the Buyer of the transactions contemplated hereby and thereby, will not (i) result in a violation of the organizational or formation documents of the Buyer, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Buyer is a party, or (iii) result in a violation of any Law (including federal and state securities Laws) applicable to the Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Buyer to perform its obligations hereunder.

(k)          Bank Regulatory Agencies. Neither the Buyer nor its Affiliates is required to obtain any consent, authorization or order of, or make any filing or registration with, any bank regulatory authority or agency, including, but not limited to, the Federal Reserve, in order for the Buyer to execute or deliver this Agreement or any of the other Transaction Documents to which it is or will be a party or perform any of its obligations under or as contemplated by this Agreement or any of the other Transaction Documents to which it is or will be a party in accordance with the terms hereof or thereof. Without limiting the generality of the foregoing sentence, the Buyer is not in “control” (rebuttably or otherwise, as such term is used in 12 C.F.R. Part 238) and has not acted in concert, and is not “acting in concert” within the meaning of 12 C.F.R. §238.31(b)(2) or (d), with any Person (including any of its Affiliates) to knowingly participate in joint activity or parallel action towards a common goal of acquiring control of the Company, whether or not pursuant to an express agreement, such that it would result in the Buyer or any of its Affiliates to be determined by the Federal Reserve (A) to have the power, directly or indirectly, to exercise a controlling influence over, or direct, the management or policies of the Company or any Subsidiary, (B) to have acquired, or to be attempting to acquire, control (rebuttably or otherwise, as such term is used in 12 C.F.R. Part 238) of the Company or any Subsidiary, or otherwise be required to register as a savings and loan holding company, as such term is defined in 12 C.F.R. § 238.2(m), (C) to be an “affiliate” (as defined under 12 C.F.R. § 238.2(a)) of any Subsidiary, such that any transactions between the Buyer and such Subsidiary would be subject to compliance with §§ 23A and 23B of the Federal Reserve Act or Regulation W, 12 C.F.R. Part 223, or (D) to be an “insider” (as defined in 12 C.F.R. § 215.2) of the Company or any Subsidiary such that any transactions between the Buyer and its Affiliates, on the one hand, and the Company and such Subsidiary, on the other, would be subject to compliance with Regulation O of 12 C.F.R. § 215.

 

5

(l)          Status of the Buyer. Neither the Buyer nor any of its Affiliates shall, as a result of the Buyer entering into, or performing under, this Agreement and the other Transaction Documents to which it is or will be a party (A) have the power, directly or indirectly, to exercise a controlling influence over, or direct, the management or policies of the Company or any Subsidiary, (B) be in “control” of the Company or any Subsidiary, as such term is used in 12 C.F.R. Part 238, or otherwise be required to register as a savings and loan holding company, as such term is defined in 12 C.F.R. § 238.2(m), or (C) be an “affiliate” (as defined under 12 C.F.R. § 238.2(a)) of any Subsidiary, such that any transactions between the Buyer and such Subsidiary would be subject to compliance with §§ 23A and 23B of the Federal Reserve Act or Regulation W, 12 C.F.R. Part 223.

(m)          Stock Ownership. Neither the Buyer nor any of its Affiliates own beneficially or of record any Common Stock or other securities of the Company other than (i) in the case of the Buyer, as of the Closing Date, the Shares purchased by it pursuant to this Agreement, and (ii) in the case of any such Affiliate, shares of capital stock of the Company that are held through the mutual fund holdings of such Affiliate.

(n)          Residency. The Buyer is formed in the State of Delaware and its principal place of business is located in the State of California.

(o)          No Broker. The Buyer has not engaged any broker or other similar agent in connection with its purchase of the Shares.

3.                   REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Buyer as of the date hereof and as of the Closing Date that, except as otherwise disclosed or incorporated by reference and readily apparent in: (i) the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2014, or any of its other reports and forms filed with or furnished to the SEC under Section 12, 13, 14 or 15(d) of the 1934 Act after September 30, 2014 and publicly available before the date of this Agreement and, solely with respect to the representations and warranties made by the Company in this Agreement as of the Closing Date, all such other reports and forms filed or furnished by the Company with the SEC under the 1934 Act after the date of this Agreement and publicly available before the Closing Date (in each case including any amendments or supplements thereto, but excluding risk factors and/or any other disclosures of risks included in any forward-looking statement disclaimers or other statements that are similarly nonspecific and are predictive and forward-looking in nature); or (ii) the disclosure letter dated as of the date hereof separately provided to the Buyer in connection with, and containing qualifications or information with respect to the provisions of, this Agreement and, with respect to the representations and warranties made by the Company in this Agreement as of the Closing Date, as set forth in any disclosure letter delivered to the Buyer prior to the Closing Date pursuant to Section 4(n) hereof solely for purposes of the representations and warranties made by the Company in this Agreement as of the Closing Date (such disclosure letter, and, as applicable, as supplemented by the disclosure schedules delivered pursuant to Section 4(n) hereof, the “Disclosure Letter”), it being agreed that a disclosure set forth on any particular Schedule of the Disclosure Letter shall constitute disclosure on each other Schedule thereof provided it is readily apparent that the information so disclosed on the first Schedule shall apply to such other Schedule or the representation and warranty as to which such Schedule relates.

 

6

(a)          Organization and Qualification. The Company and the Subsidiaries other than MetaBank are entities duly organized and validly existing and in good standing, and MetaBank is duly organized and validly existing, under the Laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted. Each of the Company and the Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect.

(b)          Status of Company and Subsidiaries. The Company is a savings and loan holding company under the Home Owners’ Loan Act of 1933, as amended (“HOLA”), regulated and supervised primarily by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). MetaBank is a federally chartered stock savings bank duly organized and validly existing under HOLA and regulated and supervised primarily by the Office of the Comptroller of the Currency (the “OCC”). The deposit accounts of MetaBank are insured up to applicable limits by the Deposit Insurance Fund, which is administered by the Federal Deposit Insurance Corporation (the “FDIC”), and no proceedings for the termination or revocation of such insurance are pending or, to the Knowledge of the Company, threatened. The federal stock savings bank charter of MetaBank complies in all material respects with applicable Law. MetaBank is considered “well capitalized” under the prompt corrective action provisions of the Federal Deposit Insurance Act (12 U.S.C. § 1831o and 12 C.F.R. Part 565).

(c)          Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under the Transaction Documents and to issue the Shares in accordance with the terms hereof. The execution and delivery by the Company of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including the issuance of the Shares, have been duly authorized by the Company’s board of directors (the “Board of Directors”). No further corporate consent or authorization is required by the Company, the Board of Directors or the Company’s stockholders in connection with the execution and delivery by the Company of this Agreement or any of the other Transaction Documents and the performance of the Company’s obligations hereunder and thereunder, including the issuance of the Shares. This Agreement has been, and when executed and delivered by the Company at the Closing, each other Transaction Document will be, duly executed and delivered by the Company and constitute (or when executed and delivered will constitute) the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar Laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

7

(d)          Issuance of Shares; No Restrictions on Transfer. Upon the issuance of and payment for the Shares in accordance with this Agreement, such Shares will be validly issued, fully paid and nonassessable, and free and clear of all liens and/or restrictions on transfer (other than restrictions on transfer provided for by applicable federal and state securities Laws or expressly provided for herein) and will not be subject to preemptive rights of any other stockholder of the Company. Subject to the accuracy of the representations and warranties of the Buyer in this Agreement, the offer and sale by the Company of the Shares to the Buyer hereunder will be exempt from registration under the 1933 Act.

(e)          No Conflicts. Except as set forth on Schedule 3(e) of the Disclosure Letter, the execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby (including the issuance of the Shares) will not (i) violate the Certificate of Incorporation or the Bylaws, (ii) violate, conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of the Subsidiaries is a party, (iii) assuming the filing of a Form D and state securities Law filings, and such filings or notices as are required by the Principal Market (or the rules and regulations thereof), result in a violation of any Law, or rules and regulations of the Principal Market, applicable to the Company or any of the Subsidiaries or by which any property or asset of the Company or any of the Subsidiaries is bound or affected or (iv) result in or require the creation or imposition of any lien upon or with respect to any of the properties or assets of the Company or any of the Subsidiaries, except in the case of clauses (ii) and (iv), as would not reasonably be expected to have a Material Adverse Effect.

(f)          Consents. Neither the Company nor any of the Subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency (including the OCC or the Federal Reserve), or any regulatory or self‐regulatory agency (including the Principal Market) or any other Person in order for the Company to execute, deliver or perform any of its obligations under or contemplated by this Agreement in accordance with the terms hereof, other than (i) the filing with the SEC of a Form D and any the filings contemplated by Section 4(j), (ii) any other filings as may be required by any state securities agencies, and (iii) such filings as are required by the Principal Market (or the rules and regulations thereof).

 

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(g)          No General Solicitation; Placement Agent’s Fees. None the Company or any of the Subsidiaries or any of their Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Shares. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by or on behalf of the Buyer or any of the Other Investors) relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold the Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any fee claimed by any placement agent, financial advisor or broker claiming to have been engaged by the Company, or to otherwise have been acting on the Company’s behalf, in connection with the transactions contemplated hereby. Neither the Company nor any of the Subsidiaries has engaged any placement agent or other similar agent in connection with the sale of the Shares.

(h)          No Registration Due to Integrated Offering. None of the Company, the Subsidiaries, any of the Affiliates of the Company, and any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the offer or sale to the Buyer of any of the Shares under the 1933 Act. None of the Company or the Subsidiaries or any Person acting on their behalf will take any action or steps referred to in the preceding sentence that would require registration of the offer or sale to the Buyer of any of the Shares under the 1933 Act (except as contemplated by the Registration Rights Agreement).

(i)          Application of Takeover and Other Protections; Rights Agreement. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation or any certificates of designations or the Laws of the jurisdiction of its formation or incorporation which is or could become applicable to the Buyer as a result of the transactions contemplated by this Agreement, including the Company’s issuance of the Shares and the Buyer’s ownership of the Shares.

(j)          SEC Documents; Financial Statements.

(i)            Except as set forth on Schedule 3(j)(i) of the Disclosure Letter, since September 30, 2014, the Company has timely filed with or furnished to the SEC all forms, reports, schedules, statements, certificates and other documents required to be filed by it with or furnished by it to the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed or furnished since September 30, 2014 and prior to the date hereof being hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act, and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with or furnished to the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. There are no outstanding unresolved written comments from the SEC with respect to any SEC Document.

 

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(ii)            As of their respective dates, the consolidated financial statements of the Company and the Subsidiaries included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial statements (A) have been prepared from, and are in accordance in all material respects with, the books and records of the Company and the Subsidiaries, (B) have been prepared in accordance with GAAP, consistently applied, during the periods involved (except (1) as may be otherwise indicated in such financial statements or the notes thereto, or (2) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements), and (C) fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations, changes in stockholders’ equity and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end adjustments). Since the date of the most recent balance sheet included in the SEC Documents, the Company has not effected any change in any method of accounting or accounting practice, except for any such change required because of a concurrent change in GAAP, nor has it been advised by its independent registered accounting firm or any Governmental Entity that any such change in method of accounting or accounting practice is appropriate.

(iii)            Solely to the extent that the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated by the SEC and the Principal Market thereunder (collectively, the “Sarbanes-Oxley Act”) have been applicable to the Company, the Company is in compliance in all material respects with any provision of the Sarbanes-Oxley Act applicable to the Company.

(k)           Accuracy of Information. All factual information, taken as a whole, furnished by or on behalf of the Company in writing to the Buyer on or prior to the date of this Agreement for purposes of this Agreement and all other such factual information, taken as a whole, furnished by the Company on behalf of itself and the Subsidiaries in writing to the Buyer pursuant to the terms of this Agreement does not, when taken together with the SEC Documents, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading; provided, however, that with respect to any projected financial information or forward-looking statements, business assumptions, strategic plans or similar information, the Company represents only that such information was prepared in good faith based upon assumptions, and subject to such qualifications, believed to be reasonable at the time. The Company understands and confirms that the Buyer will rely on the representations and warranties contained in this Section 3 in effecting transactions in securities of the Company.

(l)             Absence of Certain Changes. 

 

 (i)          Except as disclosed in Schedule 3(l)(i) of the Disclosure Letter or in the SEC Documents, since September 30, 2014, no event or events have occurred that, individually or in the aggregate, has had, or would reasonably be expected to have, a Material Adverse Effect.

 

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(ii)            Except as set forth in Schedule 3(l)(ii) of the Disclosure Letter or in the SEC Documents, since September 30, 2014, each of the Company and each Subsidiary has conducted its business in the ordinary course of business consistent with past practice, and during such period neither the Company nor any Subsidiary has:

(A)            issued any note, bond, or other debt security or created, incurred, assumed, or guaranteed any Indebtedness for borrowed money or capitalized lease obligation, individually or in the aggregate, in excess of $250,000;

(B)            (x) acquired any other Person (or any significant business, portion or division thereof), whether by merger, consolidation or reorganization or by purchase of such Person’s assets or capital stock or otherwise and/or (y) terminated and/or made material modifications to any material provisions of any agreements evidencing or relating to the transactions described in the preceding clause (x);

(C)            incurred any material loss except for losses adequately provided for on the Company’s most recent balance sheet included in the SEC Documents and expenses associated with this transaction;

(D)            in the case of the Company, declared or paid any dividends;

(E)            sold any material assets outside the ordinary course of business;

(F)            experienced any material change in asset concentrations as to customers or industries or in the nature and source of its liabilities or in the mix of interest-bearing versus noninterest-bearing deposits such that any such material change has had, or can reasonably be anticipated to have, a Material Adverse Effect; or

(G)            committed to any of the foregoing.

(iii)            Neither the Company nor any of the Subsidiaries has taken any steps to seek protection pursuant to any bankruptcy Law nor does the Company have any Knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings or any actual Knowledge of any fact that would reasonably lead a creditor to do so. The Company and the Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing will not be, Insolvent.

(m)          No Undisclosed Liabilities. Neither the Company nor any of the Subsidiaries is subject to any liabilities or obligations of any nature (absolute, accrued, contingent or otherwise) which are not properly reflected or reserved against in the Company’s financial statements included in the SEC Documents to the extent required to be so reflected or reserved against in accordance with generally accepted accounting principles in the United States except for, since the date of the most recent balance sheet included in the SEC Documents, liabilities or obligations (i) that are listed or disclosed in Schedule 3(m) included in the Disclosure Letter, (ii) arising in the ordinary course of business consistent with past practices, (iii) incurred under this Agreement or the securities purchase agreements entered into with Other Investors in connection with the Other Private Placements or in connection with the transactions contemplated hereby or thereby, or (iv) that have not had, and would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 

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(n)          Conduct of Business; Regulatory Permits.

(i)            The Company is not in violation of any term of its Certificate of Incorporation, any certificate of designation, preferences or rights of any outstanding series of its preferred stock or its Bylaws. No Subsidiary is in violation of any term of its certification of incorporation or bank charter (as the case may be), any certificate of designation, preferences or rights of any outstanding series of its preferred stock or its bylaws (as amended, if at all).

(ii)            The Company is not in violation in any material respect of any of the rules, regulations or requirements of the Principal Market and has no Knowledge of any facts or circumstances that would reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future. Since September 30, 2014, (A) the Common Stock has been listed on the Principal Market, (B) trading in the Common Stock has not been suspended by the SEC or the Principal Market (other than pursuant to ordinary marketwide circuit breakers and excluding ordinary temporary suspensions in connection with announcements of material Company news) and (C) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market.

(iii)            The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary for them to own or lease their properties and assets and to conduct their respective businesses as presently conducted, except where the failure to possess such certificates, authorizations or permits has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any written notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit. The Company and the Subsidiaries have complied with and are not in default or violation in any respect of any Law, policy or guideline of any Governmental Entity, other than such defaults or violations that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. To the Knowledge of the Company, neither the Company nor any of the Subsidiaries is under investigation with respect to, or has been threatened to be charged with or given notice of, any violation of any Law, policy or guideline of any Governmental Entity, other than such investigations or violations that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

(o)          Investment Company Status. The Company is not, and upon consummation of the sale of the Shares will not be, an “investment company”, or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

(p)          Transactions With Affiliates. Except as set forth in the SEC Documents and other than the outstanding stock options and/or unvested restricted stock disclosed on Schedule 3(p) of the Disclosure Letter, none of the officers, directors or employees of the Company or any of the Subsidiaries, or any of their respective Family Members, is presently a party to any transaction with the Company or any of the Subsidiaries (other than for services as employees, officers, directors or consultants), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from, any such officer, director, employee or Family Member, or, to the Knowledge of the Company, any corporation, partnership, trust or other entity in which any such officer, director, employee or Family Member has a substantial interest or is an officer, director, trustee or partner.

 

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(q)          Agreements with Regulatory Agencies. Except as set forth on Schedule 3(q) of the Disclosure Letter:

(i)            Since September 30, 2014, neither the Company nor any of the Subsidiaries is or has been subject to any cease and desist order, consent order, assistance agreement, capital directive, supervisory agreement or other formal agreement or memorandum of understanding with, or a party to any commitment letter or similar undertaking to, or is subject to any formal or informal order or directive by, or is a recipient of any supervisory letter from any Governmental Entity which places any restriction on the business of the Company or any Subsidiary (each, a “Regulatory Agreement”).

(ii)            Since September 30, 2014, neither the Company nor any Subsidiary (A) has been advised by any Governmental Entity that it is contemplating issuing or requesting (or is considering the appropriateness of issuing or requesting) any Regulatory Agreement, or (B) has any obligation to submit a capital restoration plan.

(iii)            Except for examinations conducted by a Governmental Entity in the ordinary course of the business of the Company and each Subsidiary, to the Knowledge of the Company, no Governmental Entity has initiated since September 30, 2014 or has pending any proceeding, enforcement action or formal investigation into the business, disclosures or operations of the Company or any Subsidiary.

(iv)            Since September 30, 2014, no Governmental Entity has resolved any proceeding, enforcement action or formal investigation into the business, disclosures or operations of the Company or any Subsidiary.

(v)            There is no unresolved violation, criticism or exception by any Governmental Entity with respect to any report or statement relating to any examination or inspection of the Company or any Subsidiary, except where such violation, criticism or exceptions would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

(vi)            Since September 30, 2014, other than in the ordinary course of the Company’s business, there have been no formal inquiries by, or disagreements or disputes with, any Governmental Entity with respect to the business, operations, policies or procedures of the Company or any Subsidiary.

(r)          Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists of (i) 10,000,000 shares of Common Stock, par value $.01 per share, of which as of the date of this Agreement, 6,965,129 are issued and 6,944,879 are outstanding and 800,369 shares are reserved for issuance pursuant to securities outstanding as of the date of this Agreement and exercisable or exchangeable for, or convertible into, shares of Common Stock, and (ii) 800,000 shares of preferred stock, par value $.01 per share, of which as of the date of this Agreement none are issued and outstanding. All of such outstanding and reserved shares have been, or upon issuance will be, validly issued and fully paid and nonassessable. Except for any shares to be issued in connection with the Acquisition, the Transaction Documents, or as disclosed in Schedule 3(r) of the Disclosure Letter: (i) none of the Company’s capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) other than shares of Common Stock issuable to the Buyer hereunder or the shares of Common Stock issued to any Other Investor pursuant to any Other Private Placement, as of the date hereof there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of the Subsidiaries, or contracts or arrangements by which the Company or any of the Subsidiaries is or may become bound to issue additional capital stock of the Company or any of the Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company or any of the Subsidiaries; (iii) except as provided in the Registration Rights Agreement to be executed with the Buyer on the Closing Date, and except for registration rights to be granted to any Other Investor pursuant to any registration rights agreement entered into by the Company in connection with any Other Private Placement, as of the date hereof there are no agreements or arrangements under which the Company or any of the Subsidiaries remains obligated to register the sale of any of their securities, whether presently outstanding or securities that may be issued subsequently, under the 1933 Act; (iv) there are no outstanding securities or instruments of the Company or any of the Subsidiaries which contain any redemption or similar provisions, and as of the date of this Agreement, there are no contracts, commitments or arrangements by which the Company or any of the Subsidiaries is or may become bound to redeem a security of the Company or any of the Subsidiaries; (v) there are no securities or instruments of the Company containing anti-dilution or similar provisions, other than provisions for equitable adjustments upon a stock split, stock dividend, combination or similar recapitalizations with respect to the Company’s capital stock; and (vi) the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement. To the Company’s Knowledge, no stockholder of the Company has entered into any agreement with any other stockholder with respect to the voting of equity securities of the Company. The Company has furnished to the Buyer true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date of this Agreement (the “Certificate of Incorporation”), and the Company’s Bylaws, as amended and as in effect on the date of this Agreement (the “Bylaws”).

 

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(s)          Subsidiaries. Schedule 3(s) of the Disclosure Letter sets forth a complete and accurate list of all direct and indirect Subsidiaries as of the date of this Agreement, showing in each case as of the date of this Agreement (as to each such Subsidiary) the jurisdiction of its formation, and, with respect to each non-wholly owned Subsidiary, the number of shares, membership interests or partnership interests (as applicable) of each class of its equity interests authorized, and the number outstanding, on the date of this Agreement and the percentage of each such class of its equity interests owned (directly or indirectly) by the Company, and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights as of the date of this Agreement. All of the outstanding equity interests in each of the Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by the Company or one or more of the Subsidiaries, free and clear of all liens. Except as set forth in Schedule 3(s) of the Disclosure Letter, the Company or one or more of the Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by applicable Law) to receive dividends and distributions on, all capital securities of the Subsidiaries as owned by the Company or such Subsidiary.

 

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(t)          Absence of Litigation. Except as set forth in Schedule 3(t) of the Disclosure Letter or as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, government agency, arbiter, mediator, self-regulatory organization or body pending or, to the Knowledge of the Company, threatened against or affecting the Company or any of the Subsidiaries, or, to the Company’s Knowledge, any of the Company’s or the Subsidiaries’ officers or directors, that (i) is reasonably likely to have a Material Adverse Effect or (ii) purports to affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated by this Agreement.

(u)          Properties and Leases. The Company and the Subsidiaries have good and marketable title to all real properties and all other material properties and assets that purport to be owned by them, in each case free from liens, encumbrances, claims and defects that would affect the value thereof or interfere with the use made or to be made thereof by them, except for such defects in title or liens, encumbrances and claims that would not, individually or in the aggregate, reasonably be likely to result in a Material Adverse Effect. The Company and the Subsidiaries hold all leased real or personal property under valid and enforceable leases with no exceptions that would interfere with the use made or to be made thereof by them, and neither the Company nor any of the Subsidiaries has any notice of any claim of any sort that has been asserted by anyone adverse to the rights of the Company or any such Subsidiary under any such leases, or affecting or questioning the rights of such entity to the continued possession of the leased premises, except for such title exceptions or claims that would not, individually or in the aggregate, reasonably be likely to result in a Material Adverse Effect.

(v)          Insurance. The Company and each of the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as companies engaged in a similar business would, in accordance with good business practice, customarily be insured.

(w)          Tax Status. (i) Each of the Company and the Subsidiaries has (A) duly and timely filed (including pursuant to applicable extensions granted without penalty) all material Tax Returns required to be filed by it, (B) paid in full all Taxes due, whether or not shown as due on such Tax Returns, other than such Taxes being contested in good faith or such Taxes the nonpayment of which would not, individually or in the aggregate, reasonably be likely to result in a Material Adverse Effect, and (C) made adequate provision for any unpaid Taxes not yet due in the financial statements of the Company (in accordance with GAAP); (ii) no material deficiencies for any Taxes have been proposed, asserted or assessed in writing against or with respect to any Taxes due by or Tax Returns of the Company or any of the Subsidiaries, which deficiencies have not since been resolved, except for Taxes proposed, asserted or assessed that are being contested in good faith by appropriate proceedings and for which reserves adequate in accordance with GAAP have been provided in the financial statements of the Company; and (iii) there are no material liens for Taxes upon the assets of either the Company or its material Subsidiaries except for statutory liens for current Taxes not yet due or liens for Taxes that are being contested in good faith by appropriate proceedings and for which reserves adequate in accordance with GAAP have been provided in the financial statements of the Company.

 

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(x)          Manipulation of Price. The Company has not, and to its Knowledge no one acting on its behalf has, taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale of any of the Shares to the Buyer hereunder.

(y)          Shell Company Status. The Company is not, and has never been, an issuer of the type described in paragraph (i) of Rule 144.

(z)          U.S. Real Property Holding Corporation Status. The Company is not, nor has ever been, a U.S. real property holding corporation within the meaning of Section 897 of the Code.

(aa)          Allowance for Possible Loan Losses. The allowance for possible loan or credit losses (the “Allowance”) shown on the consolidated balance sheets of each Subsidiary, as applicable, included in the most recent SEC Documents dated prior to the date of this Agreement was, as of the dates thereof, adequate (within the meaning of GAAP and applicable regulatory requirements or guidelines) to provide for all known, reasonably anticipated or probable losses relating to or inherent in the loan and lease portfolios (including accrued interest receivables) of such Subsidiary and other extensions of credit (including letters of credit and commitments to make loans or extend credit) by such Subsidiary as of the date thereof; provided, however, that there can be no assurance that future losses will not exceed the Allowance, or that additional provisions for loan losses will not be required in future periods, and provided, further, that it is understood that the Company’s determination of the Allowance is subject to review by the Company’s bank regulator, which can require the establishment of additional general or specific allowances.

(bb)          Intellectual Property. Except as would not have a Material Adverse Effect, (i) the Company owns or has the right to use all Intellectual Property necessary to conduct its business as currently conducted (the “Company Intellectual Property”) and (ii) to the Company’s Knowledge, no Person is infringing, violating or misappropriating any Company Intellectual Property.

(cc)          No Disqualification Events. None of the Company, any of its predecessors, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, any beneficial owner (as that term is defined in Rule 13d-3 under the 1934 Act) of 20% or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power, any “promoter” (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the Closing Date, any placement agent or dealer participating in the offering of the Shares and any of such agents’ or dealer’s directors, executive officers, other officers participating in the offering of the Shares (each, a “Covered Person” and, together, “Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a “Disqualification Event”). The Company has exercised reasonable care to determine (i) the identity of each person that is a Covered Person; and (ii) whether any Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e) under the 1933 Act. With respect to each Covered Person, the Company has established procedures reasonably designed to ensure that the Company receives notice from each such Covered Person of (i) any Disqualification Event relating to that Covered Person, and (ii) any event that would, with the passage of time, become a Disqualification Event relating to that Covered Person; in each case occurring up to and including any Closing Date. The Company is not for any other reason disqualified from reliance upon Rule 506 of Regulation D under the 1933 Act for purposes of the offer and sale of the Shares.

 

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4.                   COVENANTS.

(a)          Form D and Blue Sky. The Company agrees to file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof to the Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action (if any) as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Shares for sale to the Buyer at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and sale to the Buyer of the Shares required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date.

(b)          Reports. For as long as the Buyer holds the Shares, the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act from and after the date hereof and so long as the Company shall be required to do so under the 1934 Act. For as long as the Buyer holds the Shares, if the Company is not required to file reports pursuant to the 1934 Act, it will prepare and furnish to the Buyer and make publicly available in accordance with Rule 144(c) such information as is required for the Buyer to sell the Shares under Rule 144.

(c)          Listing. Subject to the occurrence of the Closing, the Company shall promptly secure the listing of all of the Shares upon the Principal Market and, at all times while the Common Stock is listed on the Principal Market, and for so long as the Buyer holds the Shares, shall maintain such listing of all Shares. The Company shall use its commercially reasonable efforts to maintain authorization for the Common Stock for quotation on the Principal Market or any other Eligible Market, and so long as the Buyer owns at least 33% of the number of Shares originally purchased hereunder, neither the Company nor any of the Subsidiaries shall take any action which would reasonably be expected to result in the delisting or suspension of the Common Stock on the Principal Market or any other Eligible Market (other than in connection with a change of listing to another Eligible Market and excluding ordinary temporary suspensions in connection with announcements of material Company news). The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(c).

 

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(d)          Conduct of the Business. Commencing on the date hereof and ending on the earlier of the Closing Date and the date that this Agreement shall terminate in accordance with Section 8 hereof (the “Interim Period”), the Company shall, and shall cause each Subsidiary to, use commercially reasonable efforts to carry on and maintain and preserve its business in the ordinary course of business; provided, however, that nothing contained in this sentence shall limit, preclude or require any actions that the Board of Directors or the board of directors of such Subsidiary (as the case may be) may, in good faith, determine to be inconsistent with their duties or the Company’s or such Subsidiary’s obligations under applicable Law; and, provided, further, that nothing contained in this sentence shall limit or preclude the Company or such Subsidiary from terminating any contract, license, loan or other extension of credit made or extended to any borrower, customer or other obligor, or other agreement or right, or entry into the Purchase Agreement, as the Company or such Subsidiary, as the case may be, shall in its good faith judgment deem necessary, appropriate or advisable.

(e)          Access to Information. During the Interim Period and upon reasonable advance written notice from the Buyer, the Company shall (and shall cause each of the Subsidiaries to) provide to officers, directors, managers, employees, accountants, counsel, consultants, advisors and representatives of the Buyer (collectively, the “Buyer Representatives”), solely for the purpose of evaluating the transactions contemplated by this Agreement, reasonable access, during normal business hours, to members of the Company Executive Team and to such other employees of the Company and the Subsidiaries as specifically approved by a member of the Company Executive Team, and to the assets, properties, agreements, books and records of the Company and the Subsidiaries. During the Interim Period, the Company shall and shall cause each of the Subsidiaries to (i) furnish promptly to a Buyer Representative all information concerning its finances, operations, business, properties, personnel and condition (financial or otherwise), and respond to such inquiries, in each case as may from time to time be reasonably requested by such Buyer Representative, and (ii) use commercially reasonable efforts to make available during normal business hours to such Buyer Representative, upon request, the appropriate individuals (including management, personnel, employees, attorneys, accountants and other professionals) for reasonable inquiries regarding the Company’s and the Subsidiaries’ finances, operations, business, properties, personnel and condition (financial or otherwise). Notwithstanding the foregoing provisions of this Section 4(e), nothing contained herein shall require the Company or any of the Subsidiaries to disclose any information to the extent that the Company reasonably believes that (x) such information is a trade secret or competitively sensitive proprietary information or because there exists, or the Company reasonably believes there exists, a conflict or a potential conflict of interest between the Company and the Buyer, (y) disclosure would cause a violation of any applicable Law or any confidentiality agreement or undertaking in effect and binding upon the Company or such Subsidiary or (z) disclosure would cause a risk of a loss of privilege to the Company or such Subsidiary, in which case with respect to clause (x) or (y) the parties hereto will make appropriate substitute disclosure arrangements, if such arrangements can be made by the parties using their commercially reasonable efforts and without such violation. The Buyer acknowledges and agrees that all information so provided the Buyer and its Buyer Representatives is and shall be subject to the terms of the Confidentiality Agreement.

(f)          Efforts to Consummate Transaction; Cooperation. Each party hereto shall use its commercially reasonable efforts to satisfy on a timely basis each of the covenants and conditions to be satisfied by it as provided in Sections 4, 5 and 6 of this Agreement. Each party shall refrain from taking any action which would render any representation or warranty contained in Sections 2 and 3 hereof inaccurate in any material respect as of the Closing Date. Each party hereto shall promptly notify the other party of (i) any event or matter that would reasonably be expected to cause any of its representations or warranties to be untrue in any material respect as of the Closing Date or that would reasonably be expected to cause any of the conditions to Closing provided in Section 5 or 6, as the case may be, not to be satisfied in the manner contemplated herein, or (ii) any action, suit or proceeding that shall be instituted or threatened against such party to restrain, prohibit or otherwise challenge the legality of any of the transactions contemplated by this Agreement.

 

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(g)          NASDAQ Stock Issuance Notice. At least fifteen (15) days prior to the issuance of the Shares hereunder (but in any event as soon as reasonably practicable following the date hereof), the Company shall file with the NASDAQ OMX Listing Center the notice, appropriately completed, required by NASDAQ Stock Market Rule 5250(e)(2)(D) in respect of the Shares issuable hereunder and the shares of capital stock issuable in connection with the Other Private Placements, and thereafter prepare and file such amendments and supplements thereto as shall be required, and respond to such inquiries (if any) from the NASDAQ OMX Listing Center (or the Principal Market) relating thereto, in each case on a timely basis. At the request of the Buyer, the Company shall provide copies to the Buyer of such filing and any such amendments and supplements in advance of the filing of any thereof. The Buyer shall reasonably cooperate, in a timely manner, in connection with the Company’s obligations under this Section 4(g), including, without limitation, furnishing the Company in a timely manner upon request with all information with respect to the Buyer as may be required to be included in the NASDAQ Stock Market Rule notice filing or any amendment or supplement thereto.

(h)          Expenses. Each party hereto shall be responsible for its own costs and expenses incurred by it in connection with the transactions contemplated hereby.

(i)          Pledge of Shares. The Company acknowledges and agrees that the Shares may be pledged by the Buyer and that such pledge of the Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and, except as required by applicable Law, the Buyer shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement; provided, however, that the Buyer and its pledgee shall be required to provide notice to the Company and comply with the applicable provisions hereof, including the requirements of Section 2(l), in order to effect (and otherwise in connection with) any sale, transfer or assignment of the Shares to such pledgee.

(j)          Disclosure of Transactions and Other Material Information. On or before 5:30 p.m., New York City time, on the fourth (4th) Business Day following (i) the date of this Agreement the Company shall issue a press release and file a current report on Form 8-K describing the terms of the transactions contemplated by this Agreement, in the form required by the 1934 Act and attaching this Agreement (and, as appropriate, any other Transaction Document) as an exhibit to such filing (including such attachment, the “Pre-Closing 8-K”), and (ii) such other matters as are required or deemed appropriate by the Company to be disclosed under Form 8-K relating to the transactions contemplated hereby, in the form required by the 1934 Act. In addition, following the Closing, the Company may file a press release and a Form 8-K relating to the Closing of the transactions contemplated hereby to the extent deemed appropriate by the Company (the “Post-Closing 8‐K”). A reasonable time prior to issuing any press release referred to in the previous two sentences, the Company shall provide the Buyer with a copy of the proposed press release and shall consult with the Buyer with respect to the content of such press release and Pre-Closing 8-K, or Post-Closing 8-K, as the case may be, and consider in good faith any comments proposed by the Buyer. Subject to the foregoing, none of the Company and the Subsidiaries nor the Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that (i) the Company shall be entitled, without the prior approval of the Buyer, to make any press release or other public disclosure with respect to such transactions in substantial conformity with the Pre-Closing 8-K or the Post-Closing 8-K, as the case may be (provided that the Company shall consult with the Buyer in connection with any such press release or other public disclosure prior to its release and consider in good faith any comments proposed by the Buyer) and (ii) either party may make such disclosure as is required by applicable Law.

 

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(k)          Certain Future Actions.

(i)            From the date of this Agreement and so long as the Buyer and its Affiliates, individually or collectively, shall hold any Shares, the Buyer shall not, nor shall it permit any of its Affiliates to “act in concert” within the meaning of C.F.R. §238.21(b)(2) or (D) with any Person (including any of its Affiliates) to knowingly participate in joint activity or parallel action towards a common goal of acquiring control of the Company, whether or not pursuant to an express agreement, such that it would result in Buyer or any of its Affiliates to be determined by the Federal Reserve (A) to have the power, directly or indirectly, to exercise a controlling influence over, or direct, the management or policies of the Company or any Subsidiary, (B) to have acquired, or to be attempting to acquire, control (rebuttably or otherwise, as such term is used in 12 C.F.R. Part 238) of the Company or any Subsidiary, or otherwise be required to register as a savings and loan holding company, as such term is defined in 12 C.F.R. § 238.2(m), (C) to be an “affiliate” (as defined under 12 C.F.R. § 238.2(a)) of any Subsidiary, such that any transactions between the Buyer and such Subsidiary would be subject to compliance with §§ 23A and 23B of the Federal Reserve Act or Regulation W, 12 C.F.R. Part 223, or (D) to be an “insider” (as defined in 12 C.F.R. § 215.2) of the Company or any Subsidiary such that any transactions between the Buyer and its Affiliates, on the one hand, and the Company and such Subsidiary, on the other, would be subject to compliance with Regulation O of 12 C.F.R. § 215.

 

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(ii)            From and after the Closing Date and so long as the Buyer and its Affiliates (who are known to the Company to be a holder of any Shares), individually or collectively, shall hold any Shares, if (A) the Company intends to redeem or repurchase shares of Common Stock from any holder of shares of Common Stock and such redemption or repurchase will not be offered to the holders (including the Buyer and its Affiliates known to the Company who hold Shares) of all (or substantially all) of the outstanding shares of Common Stock on a pro-rata basis (a “Non-Pro-Rata Stock Repurchase”) and (B) such Non-Pro-Rata Stock Repurchase would, immediately after completion of such Non-Pro-Rata Stock Repurchase, result in the Buyer’s and such Affiliates’ collective ownership of the Shares to exceed 9.999% of the total outstanding shares of Common Stock of the Company, as calculated for the purposes of the Bank Holding Company Act of 1956 (as amended) or HOLA (the occurrence of the events described in the foregoing clauses (A) and (B), collectively, a “Stock Reduction Triggering Event”), then the Buyer shall use its commercially reasonable efforts to sell or cause to be sold that number of Shares held by the Buyer that would, immediately after giving effect to such sale, result in the Buyer’s and such Affiliates’ collective ownership of the Shares to not exceed 9.999% of the total shares of outstanding Common Stock (such number of shares required to be sold, the “Excess Shares”), all in accordance with the provisions of this Section 4(k)(ii); provided, however, that if the Buyer then holds fewer than the number of Excess Shares that are required to be sold, then the Buyer shall use its commercially reasonable efforts to sell all such fewer Shares, and the term “Excess Shares” shall be deemed to mean such fewer number of Shares. The Company shall give written notice to the Buyer of a Stock Reduction Triggering Event at least twenty (20) Business Days prior to effecting any such Non-Pro-Rata Stock Repurchase (such prior notice period, the “Pre-Redemption Period”). The Buyer shall use its commercially reasonable efforts to sell or cause to be sold the Excess Shares (in a single transaction or in multiple transactions over a period of one or more Business Days) not later than the expiration of the Pre-Redemption Period provided that the Excess Shares may be then sold pursuant to an effective registration statement or pursuant to an exemption available under the 1933 Act (including under Rule 144) that would be sufficient to enable the Buyer to sell all such Excess Shares during such period; provided, however, that if there shall not be a registration statement then in effect with respect to the Excess Shares or if there shall not be an exemption available under the 1933 Act (including under Rule 144) that would be sufficient to enable the Buyer to sell all such Excess Shares during the Pre-Redemption Period, then the Pre-Redemption Period shall be automatically extended until the expiration of twenty (20) Business Days following the earlier of the first date on which (x) such registration statement shall have become so effective and (y) the Buyer shall have the right to sell such Excess Shares pursuant to an exemption from the 1933 Act sufficient to enable the Buyer to sell all such Excess Shares within a twenty (20) Business Day period. If, with respect to any Excess Shares sold by the Buyer pursuant to this Section 4(k)(ii), the Benchmark Price (as defined below) on the date of such sale is greater than the Market Price (as defined below) on such date, then the Company shall pay to the Buyer an amount that is equal to the product of (x) the number of Excess Shares so sold on such date pursuant to this Section 4(k)(ii) and (y) the amount by which such Benchmark Price exceeds such Market Price. Any amount required to be paid by the Company to the Buyer pursuant to this Section 4(k)(ii) shall be paid not later than three (3) Business Days following the date on which the Company is notified that the Excess Shares shall have been sold. The Company and the Buyer agree to cooperate with all reasonable requests of the other party for purposes of more fully giving effect to and carrying out the intent and purposes of this Section 4(k)(ii), including providing to the Company such evidence and other information relating to the sale of the Excess Shares as shall be reasonably requested by the Company. Notwithstanding anything to the contrary contained herein, the Company’s obligation to make any payment to the Buyer pursuant to this Section 4(k)(ii) shall be subject to applicable banking and bank holding company Laws and any order or directive (or similar action) of any governmental regulatory authority or agency (including the Federal Reserve) having regulatory authority over the Company. For purposes of this Section 4(k)(ii), the following terms shall have the following meanings:

“Benchmark Price” means, in the case of any Excess Shares sold pursuant to this Section 4(k)(ii), (x) during the period commencing on the Closing Date and ending on the eighteen (18) month anniversary of the Closing Date, the greater of the Fair Market Value per share of the Excess Shares and the price per share paid hereunder for the Shares at the Closing, and (y) at any time after the eighteen (18) month anniversary of the Closing Date, the Fair Market Value per share of such Excess Shares.

 

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“Fair Market Value” means, in the case of any Excess Shares sold pursuant to this Section 4(k)(ii), (a) if the Common Stock is traded on an Eligible Market, the price which represents the trailing 20-trading day (including trading days on which no Common Stock were in fact traded) average of the closing “bid” price (determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours) of the Common Stock ending on (and including) the trading day immediately preceding the date that is one (1) trading day prior to the date on which such Excess Shares shall have been so sold or (b) if the Common Stock is not so traded, the fair market value (per share) of Common Stock as of the date that is one (1) trading day immediately preceding the date on which such Excess Shares shall have been sold as determined in good faith between the Company and the Buyer; provided, however, that if the Company and the Buyer do not reach an agreement as to the fair market value of such Common Stock by the date on which the Company shall be required to make any payment to the Buyer pursuant to this Section 4(k)(ii), then such fair market value shall be determined by an independent, nationally recognized investment banking firm, accounting firm or appraisal firm selected by the Buyer and reasonably acceptable to the Company and paid for by the Company and the date on which any payment required to be made by the Company to the Buyer pursuant to this Section 4(k)(ii) shall be extended until the date that is three (3) Business Days following the date on which such valuation firm shall have delivered to the Company and the Buyer its fair market value determination (which determination shall, for purposes of this Section 4(k)(ii), be conclusive and binding on the parties hereto absent manifest error).

“Market Price” means, with respect to any Excess Shares sold by the Buyer pursuant to this Section 4(k)(ii), the fair market value thereof, per share, based on the price that would be obtained by a seller of such Excess Shares who was acting in good faith and in a commercially reasonable manner on the date of such sale; provided, however, that if any such Excess Shares are sold at any time during which the Company’s Common Stock is listed on any national securities exchange or quoted on the over-the-counter bulletin board, then the “Market Price” shall be deemed to be the closing price of such shares of Common Stock as reported on such national securities exchange or bulletin board on the date of sale of such Excess Shares.

(l)          Standstill. The Buyer hereby agrees that, during the period commencing on the Closing Date and ending on the second annual anniversary thereof (the “Standstill Period”), unless specifically invited in writing by the Company, the Buyer will not, and will not permit any director, officer or Affiliate of the Buyer to, in any manner, directly or indirectly (including by directing or causing any other Person that is not the Buyer or a director, officer or Affiliate of the Buyer):

 

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(i)            effect or seek, offer or propose (whether publicly or otherwise) to effect, or announce any intention to effect or cause or participate in or in any way assist, facilitate or encourage any other Person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in, (A) any acquisition of any securities (or beneficial ownership thereof) or rights or options to acquire any securities (or beneficial ownership thereof) of the Company or any of the Subsidiaries or Company Controlled Affiliates if, after giving effect to any such acquisition, the Buyer and/or any Buyer Controlled Entity and/or Control Group Member, either individually or in the aggregate, would beneficially own more than nine and ninety-nine one hundredths percent (9.99%) of the shares of Common Stock then outstanding, (B) any tender or exchange offer, merger or other business combination involving the Company or any of the Subsidiaries or Company Controlled Affiliates or any division or line of business of any thereof, (C) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of the Subsidiaries or Company Controlled Affiliates or any division thereof, or (D) any “solicitation” of “proxies” (as such terms are used in the proxy rules of the SEC) or consents to vote any voting securities of the Company;

(ii)            form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of the 1934 Act) with respect to the securities of the Company or any of the Subsidiaries or Company Controlled Affiliates;

(iii)            otherwise act, alone or in concert with others, to seek to control or influence the management, the board of directors or the policies of the Company or any of the Subsidiaries or Company Controlled Affiliates;

(iv)            take any action which would or would reasonably be expected to force the Company to make a public announcement regarding any of the types of matters set forth in clause (i) above; or

(v)            enter into any discussions or arrangements with any third party with respect to any of the foregoing.

The Buyer further agrees that it shall not, and shall not permit any director, officer or Affiliate of the Buyer to, during the Standstill Period, directly or indirectly, publicly request the Company (or its directors, officers, employees or agents) to amend or waive any provision of this Section 4(l) (including this sentence).

(m)          Stock Certificates. In connection with the Closing, the Company shall instruct the Transfer Agent to issue the stock certificate representing the Shares as required by this Agreement and take such actions as shall be reasonably requested by the Transfer Agent such that such stock certificate shall be delivered to the Buyer within five (5) Business Days after the Closing Date.

(n)          Disclosure Letter Updates. No later than two Business Days prior to the Closing Date, the Company shall amend or supplement the Disclosure Letter with respect to any matter or event arising or occurring after the date hereof to the extent necessary or desirable in order to make the representations and warranties being made by the Company pursuant to this Agreement as of the Closing Date true and correct as of the Closing Date.

 

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(o)          Disqualification Events. The Company will notify the Buyer in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Covered Person.

(p)          Use of Proceeds. The Company will use the proceeds from the sale of the Shares to finance the Acquisition (including to pay any expenses associated with the Acquisition).

5.                   CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

The obligation of the Company hereunder to issue and sell the Shares to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions; provided that these conditions are for the Company’s sole benefit and (to the extent permitted by applicable Law) may be waived by the Company at any time in its sole discretion by providing the Buyer with prior written notice thereof:

(i)            Other Transaction Documents. The Buyer shall have duly executed each other Transaction Document (in the case of the Registration Rights Agreement, substantially in the form of Exhibit A hereto) and delivered each such other Transaction Document to the Company.

(ii)            Representations, Warranties and Covenants. The representations and warranties of the Buyer shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects) as of such specified date), and the Buyer shall have performed, satisfied and complied with, in all material respects, the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date. The Company shall have received a certificate, executed by the Chief Executive Officer or Chief Financial Officer (or other senior executive officer reasonably acceptable to the Company) of the Buyer and dated as of the Closing Date, to the foregoing effect.

(iii)            Purchase Price. The Buyer shall have delivered to the Company the Purchase Price for the Shares by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company pursuant to Section 1(d).

(iv)            No Injunction or Restraints. No Laws shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by any Transaction Document, nor shall there be on file any complaint by any Person seeking an order or decree, restraining, enjoining or prohibiting the transactions contemplated by any Transaction Document.

(v)            Governmental Filings and Consents. All material governmental filings, consents, orders and approvals legally required to be filed or made by the Buyer for the consummation of the transactions contemplated hereby shall have been made or obtained and shall be in full force and effect.

 

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(vi)            Corporate Documents. The Buyer shall have delivered to the Company a certificate, executed by the Secretary of the Buyer and dated as of the Closing Date, as to (A) the certificate of formation of the Buyer, as in effect at the Closing, (B) the limited partnership agreement or similar governing document of the Buyer as in effect at the Closing, and (C) the incumbency signatures of the officers of such Buyer or its general partner or investment manager, as the case may be, executing this Agreement or any other document executed in connection with this Agreement.

(vii)            Other Documents. The Buyer shall have delivered to the Company such other documents relating to the transactions contemplated by this Agreement as the Company or its counsel may reasonably request.

(viii)            Consummation of the Acquisition. The Acquisition shall have been (or shall substantially concurrently with the Closing be) consummated.

6.                   CONDITIONS TO THE BUYER’S OBLIGATION TO PURCHASE.

The obligation of the Buyer hereunder to purchase the Shares at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and (to the extent permitted by applicable Law) may be waived by the Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

(i)            Other Transaction Documents. The Company shall have duly executed each other Transaction Document (in the case of the Registration Rights Agreement, substantially in the form of Exhibit A hereto) and delivered each such other Transaction Document to the Buyer.

(ii)            Stock Certificate and Transfer Agent. The Company shall have delivered to the Buyer a copy of the instructions delivered to the Transfer Agent instructing the Transfer Agent to issue the stock certificate evidencing the Shares as required by this Agreement and deliver such stock certificate to the Buyer within five (5) Business Days after the Closing Date.

(iii)            Legal Opinion. The Buyer shall have received the opinion of Katten Muchin Rosenman LLP, the Company’s outside counsel, substantially in the form approved by the Buyer prior to the execution and delivery of this Agreement, dated as of the Closing Date.

(iv)            Good Standing Certificate. The Company shall have delivered to the Buyer a certificate evidencing the incorporation and good standing of the Company issued by the Secretary of State of the State of Delaware as of a date within fifteen (15) days of the Closing Date.

(v)            Corporate Documents. The Company shall have delivered to the Buyer a certificate, executed by the Secretary of each of the Company and MetaBank and dated as of the Closing Date, as to (A) the resolutions consistent with Section 3(c) as adopted by the Board of Directors, (B) the Certificate of Incorporation, (C) the federal stock charter of MetaBank, as in effect at the Closing, (D) the Bylaws and the bylaws of MetaBank, as in effect at the Closing, and (E) the incumbency signatures of the officers of the Company executing each Transaction Document or any other document executed in connection with this Agreement.

 

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(vi)            Representations, Warranties and Covenants.

(1)            The representations and warranties of the Company set forth in Sections 3(a), 3(b), 3(c), 3(d), 3(g), 3(h), 3(i), 3(l)(i), 3(x), 3(y), 3(z) and 9(n) (the “Fundamental Representations”) shall be true and correct in all respects as of the date hereof and as of the Closing Date (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date);

(2)            The representations and warranties of the Company set forth in Section 3 hereof, other than the Fundamental Representations, shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect or like qualifiers, which shall be true and correct in all respects) as of the date hereof and as of the Closing Date (except for representations and warranties that speak as of a specific date, which shall be true and correct in all material respects (or, if such representation and warranty is qualified by materiality or Material Adverse Effect, in all respects) as of such specified date);

(3)            The Company shall have performed, satisfied and complied with in all material respects the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date; and

(4)            The Buyer shall have received a certificate, executed by the Chief Executive Officer or Chief Financial Officer (or other senior executive officer reasonably acceptable to the Buyer) of the Company, dated as of the Closing Date, that the conditions set forth in each of clauses (1) through and including (3) above have been satisfied, and further certifying that the facts, events or circumstances described in updates to the Disclosure Letter and in any document filed or furnished with the SEC under the 1934 Act after the date hereof and publicly available before the Closing Date have not had, and are reasonably expected not to have, a Material Adverse Effect.

(vii)            No Injunction or Restraints. No Laws shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by any Transaction Document, nor shall there be on file any complaint by any Person (other than the Buyer or its Affiliates) seeking an order or decree, restraining, enjoining or prohibiting the transactions contemplated by any Transaction Document.

(viii)            Number of Outstanding Shares of Common Stock. The Company shall have delivered to the Buyer a letter from the Company’s transfer agent certifying the number of shares of Common Stock outstanding as of a date within five (5) Business Days of the Closing Date.

 

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(ix)            Common Stock Remains Listed. The Common Stock (including the Shares) (A) shall be listed on the Principal Market and (B) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the Closing Date, either (x) in writing by the SEC or the Principal Market or (y) by the Company’s falling below the minimum listing maintenance requirements of the Principal Market.

(x)            Governmental Filings and Consents. All material governmental filings, consents, orders and approvals legally required to be filed or made by the Company for the consummation of the transactions contemplated hereby shall have been made or obtained and shall be in full force and effect.

(xi)            Other Documents. The Company shall have delivered to the Buyer such other documents relating to the transactions contemplated by this Agreement as the Buyer or its counsel may reasonably request.

(xii)            No Company Material Adverse Effect. Since the date of this Agreement, no Material Adverse Effect shall have occurred.

(xiii)           Consummation of the Acquisition. The Acquisition shall have been (or shall substantially concurrently with the Closing be) consummated.

7.                   SURVIVAL AND INDEMNIFICATION.

(a)          Survival. Unless this Agreement is terminated under Section 8, the representations and warranties of the Company and the Buyer contained in Sections 2 and 3 and the agreements and covenants set forth in Sections 4, 7, 8 and 9(b) shall survive the Closing and the delivery of the Shares.

(b)          Indemnification. Subject to the other terms and conditions of this Section 7, the Company shall indemnify, defend and hold harmless the Buyer, its Affiliates and their respective partners, directors, officers, employees, advisors and representatives (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) against any and all Losses (including actions brought by the Buyer or the Company or any equity holders of the Company or derivative actions brought by any Person claiming through or in the Company’s name other than actions brought by the Company for breach of any of the Buyer’s representations, warranties or covenants made by it under this Agreement), proceedings or investigations (whether formal or informal), or threats thereof, based upon, resulting from, relating to or arising out of (i) any breach of any representation or warranty of the Company in this Agreement, (ii) any breach of any covenant, agreement or obligation of the Company contained in this Agreement, or (iii) any action, suit or proceeding initiated by one or more stockholders of the Company (other than the Buyer) as a result of the transactions contemplated by this Agreement that are to be consummated on the Closing Date; provided, that if and to the extent that such indemnification is unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of such Losses which shall be permissible under applicable Laws; and, provided, further, that the Company shall have no obligation to indemnify, defend or hold harmless (or make contribution to the payment and satisfaction to) any Indemnified Party to the extent the Losses suffered by such Indemnified Party arise out of or result from a breach of any representation, warranty or covenant made or to be complied with by such Indemnified Party hereunder or the gross negligence or willful misconduct of such Indemnified Party.

 

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(c)          Procedure. Promptly after receipt by an Indemnified Party of notice by a third party of any complaint or the commencement of any audit, investigation, action or proceeding with respect to which such Indemnified Party may be entitled to receive payment from the Company for any Losses, such Indemnified Party will notify the Company in writing following the Indemnified Party’s receipt of such complaint or of notice of the commencement of such audit, investigation, action or proceeding; provided, however, that the failure to so notify the Company in writing will not relieve the Company from liability under this Agreement with respect to such claim unless such failure to notify the Company in writing results in the forfeiture of material rights or defenses otherwise available to the Company with respect to such claim. The Company will have the right, upon written notice delivered to the Indemnified Party within twenty (20) days thereafter, which notice shall include the Company’s written statement that it is assuming full responsibility for any Losses resulting from such audit, investigation, action or proceeding, to assume the defense of such audit, investigation, action or proceeding, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of the fees and disbursements of such counsel. In the event, however, that the Company declines or fails to assume the defense of the audit, investigation, action or proceeding on the terms provided above or to employ counsel reasonably satisfactory to the Indemnified Party, in either case within such twenty (20) day period, then such Indemnified Party may employ counsel to represent or defend it in any such audit, investigation, action or proceeding and the Company will pay the reasonable fees and disbursements of such counsel as incurred; provided, however, that the Company will not be required to pay the fees and disbursements of more than one counsel plus appropriate local counsel for all Indemnified Parties in any jurisdiction in any single audit, investigation, action or proceeding. In any audit, investigation, action or proceeding with respect to which indemnification is being sought hereunder, the Indemnified Party or the Company, whichever is not assuming the defense of such action, will have the right to participate in such matter and to retain its own counsel at such party’s own expense. The Company or the Indemnified Party, as the case may be, shall at all times use reasonable efforts to keep the Company or the Indemnified Party, as the case may be, reasonably apprised of the status of the defense of any matter the defense of which they are maintaining and to cooperate in good faith with each other with respect to the defense of any such matter. No Indemnified Party may settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder without the prior written consent of the Company, unless (i) the Company fails to assume and maintain the defense of such claim pursuant to this Section 7(c) or (ii) such settlement, compromise or consent (A) includes an unconditional release of the Company from all liability arising out of such claim, (B) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Company, and (C) does not contain any equitable order, judgment or term which in any manner affects, restrains or interferes with the business of the Company or any of the Company’s Affiliates. The Company may not, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or delayed), settle or compromise any claim or consent to the entry of any judgment with respect to which indemnification is being sought hereunder unless such settlement, compromise or consent (A) includes an unconditional release of the Indemnified Party from all liability arising out of such claim, (B) does not contain any admission or statement suggesting any wrongdoing or liability on behalf of the Indemnified Party, (C) does not contain any equitable order, judgment or term which in any manner affects, restrains or interferes with the business of the Indemnified Party or any of the Indemnified Party’s Affiliates and (D) does not require payment of any amount that is not being paid by the Company.

 

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(d)          Reimbursement. In the event the Company is obligated to indemnify for expenses, the Company shall, subject to the provisions of this Section 7, upon presentation of appropriate invoices containing reasonable detail, reimburse each Indemnified Party for all such expenses (including reasonable expenses of investigation and reasonable fees, disbursements and other charges of counsel in connection with any claim, action, suit or proceeding) as they are incurred by such Indemnified Party. “Losses” means all losses, claims (including any claim by a third party), damages and expenses (including reasonable expenses of investigation and reasonable fees, disbursements and other charges of counsel in connection with any claim, action, suit or proceeding) actually incurred by the Indemnified Party in connection with any claim, action, suit or proceeding.

8.                   TERMINATION.

(a)          Termination by Mutual Agreement. This Agreement may be terminated prior to the Closing by mutual written agreement of the Company and the Buyer.

(b)          Termination for Failure to Close. In the event that the Closing shall not have occurred on or before 5:00 p.m., New York City Time, on September 30, 2015, either the Company or the Buyer shall have the option to terminate this Agreement at the close of business on such date or at any time thereafter, without liability to such party, by the giving of written notice of termination, unless the Closing has not occurred by reason of the failure of the party seeking to terminate this Agreement to comply in all material respects with its obligations under this Agreement.

  (c)          Termination for Breach. This Agreement may be terminated by the Company or the Buyer in the event the other party is in breach in any material respect of any representation, warranty, covenant or agreement contained in this Agreement such that the conditions to the nonbreaching party’s obligation to consummate the transactions contemplated by this Agreement would not be satisfied, the terminating party has notified the other party of the breach, and such breach has continued without cure for a period of ten (10) Business Days after the notice of breach.

(d)          Effects of Termination. In the event of any termination of this Agreement as provided in Section 8(a), 8(b) or 8(c), this Agreement (other than this Section 8(d), Section 7 and Section 9, which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect; provided, that the Company will remain liable to the Buyer for any breach of this Agreement by the Company existing at the time of such termination, the Buyer will remain liable to the Company for any breach of this Agreement by the Buyer existing at the time of such termination, and the Buyer or the Company, as the case may be, may seek such remedies against the other with respect to any such breach as are provided in this Agreement or as are otherwise available at Law or in equity.

 

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9.                   MISCELLANEOUS.

(a)          Definitions.

“1933 Act” has the meaning set forth in Whereas clause A.

“1934 Act” has the meaning set forth in Section 2(e).

“Acquisition” means the first of any of the following after the date of this Agreement: (i) a consolidation, merger or other business combination of the Company or any Subsidiary, on the one hand, with or into another Person, on the other hand (including, for the avoidance of doubt, through the acquisition of equity interests in another Person), immediately after giving effect to which the Company or any Subsidiary holds, directly or indirectly, a majority of the combined voting power of the surviving entity or entities entitled to vote generally for the election of a majority of the members of the board of directors (or their equivalent if other than a corporation) of such entity or entities, or (ii) an acquisition by the Company or any Subsidiary, directly or indirectly, of all or substantially all of the assets of another Person; provided that, in any such case, such transaction is approved by the Board of Directors and provides for the payment or other delivery by, or on behalf of, the Company or any Subsidiary of aggregate consideration (whether in the form of cash or otherwise) of not less than $40 million.

“Affiliate” means any Person controlling, controlled by or under common control with any other Person. For purposes of this definition, “control” (including “controlled by” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of securities, partnership or other ownership interests, by contract or otherwise.

“Agreement” has the meaning set forth in the preamble.

“Allowance” has the meaning set forth in Section 3(aa).

“Board of Directors” has the meaning set forth in Section 3(c).

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in the City of New York are authorized or required by Law to remain closed.

“Buyer” has the meaning set forth in the preamble.

“Buyer Controlled Entity” means any Person controlled, directly or indirectly, by the Buyer.

“Buyer Representatives” has the meaning set forth in Section 4(e).

 

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“Bylaws” has the meaning set forth in Section 3(r).

“Certificate of Incorporation” has the meaning set forth in Section 3(r).

 “Closing” has the meaning set forth in Section 1(b).

“Closing Date” has the meaning set forth in Section 1(b).

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

“Common Stock” has the meaning set forth in Whereas clause B.

“Company” has the meaning set forth in the preamble.

“Company Controlled Affiliate” means any Affiliate controlled, directly or indirectly, by the Company.

“Company Executive Team” means J. Tyler Haahr, Bradley C. Hanson, Troy Moore, Glen W. Herrick, Ira D. Frericks and Ronald W. Butterfield.

“Company Intellectual Property” has the meaning set forth in Section 3(bb).

“Confidentiality Agreement” means the confidentiality letter agreement, dated as of June 23, 2015, by and between Hawk Ridge Management, LLC, an Affiliate of the Buyer, and the Company.

“Contingent Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

“Control Group Member” means any Person which directly or indirectly controls, or is under common control with, the Buyer.

“Convertible Securities” means any stock or securities (other than Options) convertible into or exercisable or exchangeable for shares of Common Stock.

“Covered Person” and “Covered Persons” has the meaning set forth in Section 3(cc).

“Disclosure Letter” has the meaning set forth in Section 3.

“Disqualification Event” has the meaning set forth in Section 3(cc).

 

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“Eligible Market” means the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange or the Over-the-Counter Bulletin Board.

“Excess Shares” has the meaning set forth in Section 4(k)(ii).

“Family Member” means, with respect to any Person, such Person’s spouse, children, parents or siblings.

“FDIC” has the meaning set forth in Section 3(b).

“Federal Reserve” has the meaning set forth in Section 3(b).

“Fundamental Representations” has the meaning set forth in Section 6(vi)(1).

“Fundamental Terms” has the meaning set forth in Section 9(n).

“GAAP” means U.S. generally accepted accounting principles.

“Governmental Entity” means any federal, state, local or foreign, court, governmental, legislative, judicial, administrative or regulatory authority, agency, commission, body or other governmental entity or self-regulatory organization or stock exchange, including the OCC, the FDIC, the SEC and NASDAQ.

“HOLA” has the meaning set forth in Section 3(b).

“Indebtedness” of any Person means, without duplication (i) all indebtedness (including principal, interest, fees and charges) for borrowed money, but exclusive of “deposits” (as defined in 12 U.S.C. § 1813(l)), (ii) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, “capital leases” in accordance with generally accepted accounting principles) (other than trade payables incurred in the ordinary course of business), (iii) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (iv) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (v) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (vi) all monetary obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness referred to in clauses (i) through (vi) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness; provided that the amount of the indebtedness included in “Indebtedness” pursuant to this clause (vii) shall be limited to the fair market value of the property or asset subject to such mortgage, lien, pledge, charge, security interest or other encumbrance, and (viii) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (i) through (vii) above.

 

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“Indemnified Party” or “Indemnified Parties” has the meaning set forth in Section 7(b).

“Insolvent” means, with respect to any Person, that (i) the fair value of the assets of such Person, at a fair valuation, will exceed his, her or its debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of such Person will be greater than the amount that will be required to pay the probable liability of his, her or its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) such Person will be able to pay his, her or its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) such Person will not have unreasonably small capital with which to conduct the business in which he, she or it is engaged as such business is now conducted.

“Intellectual Property” means any and all of the following in any jurisdiction throughout the world: (i) trademarks and service marks, including all applications and registrations and the goodwill connected with the use of and symbolized by the foregoing; (ii) copyrights, including all applications and registrations related to the foregoing; (iii) trade secrets and confidential know-how; (iv) patents and patent applications; (v) internet domain name registrations; and (vi) other intellectual property and related proprietary rights, interests and protections.

“Interim Period” has the meaning set forth in Section 4(d).

“Knowledge of the Company” or phrases of similar effect (including the words “Known” or “Know”) means the knowledge, after reasonable investigation, of the individuals listed on Schedule 9(a) attached hereto.

“Law” means any statute, ordinance, license, rule, regulation, order, demand, writ, injunction, decree or judgment of any Governmental Entity, including any of the foregoing which relate to the business of banking generally, lending activities, deposit taking, money transmission, stored value cards, credit cards, savings associations, savings and loan holding companies, trust operations, government contracts, national security, and protection of classified information, including, without limitation, the Home Owners Loan Act of 1934, the Savings and Loan Holding Company Act, the Bank Secrecy Act, the United States Foreign Corrupt Practices Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Equal Credit Opportunity Act, the Community Reinvestment Act of 1977, the Gramm‐Leach‐Bliley Act, the Fair Consumer Credit Protection Act, and all regulations promulgated thereunder.

“Losses” has the meaning set forth in Section 7(d).

“Material Adverse Effect” means any fact, circumstance, effect, event or change (whether or not constituting a breach of a representation, warranty, covenant or agreement set forth in this Agreement) that, individually or in the aggregate with all other facts, circumstances, effects, events or changes, has a material adverse effect on the business, properties, assets, operations, results of operations or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or on the Company’s ability to consummate the transactions contemplated hereby, or on the authority or ability of the Company to perform its obligations under this Agreement, but shall not include facts, circumstances, effects, events or changes: (i) generally affecting any of the industries in which the Company, taken together with the Subsidiaries, operates in the United States or elsewhere in the world or the economy or the financial or securities markets in the United States or elsewhere in the world; (ii) resulting from political conditions, including acts of war (whether or not declared), armed hostilities and terrorism, or developments or changes therein; (iii) resulting from any announcement of this Agreement or any of the other agreements entered into with the Other Investors in the Other Private Placements or the transactions contemplated hereby or thereby, in each case, solely to the extent due to such announcement; (iv) resulting from a change in the Company’s stock price or the trading volume in the Common Stock in and of itself (it being understood that the underlying circumstances, event or reasons giving rise to any such failure (to the extent provided for in this definition) can be taken into account in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur); or (v) resulting from a failure to meet securities analysts’ published revenue or earnings predictions for the Company in and of itself (it being understood that the underlying circumstances, event or reasons giving rise to any such failure (to the extent provided for in this definition) can be taken into account in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur); provided, however, that the facts, circumstances, events or changes set forth in clause (i) above may be taken into account in determining whether there is or has been a Material Adverse Effect if and only to the extent such act, circumstance, event, effect or change has a materially disproportionate impact on the Company and the Subsidiaries relative to the other participants in the industries in which the Company and the Subsidiaries operate.

 

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 “MetaBank” means MetaBank, a federally-chartered savings association and wholly-owned subsidiary of the Company.

“Non-Pro-Rata Stock Repurchase” has the meaning set forth in Section 4(k)(ii).

“OCC” has the meaning set forth in Section 3(b).

“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

“Other Investor” means any Person who has executed a securities purchase agreement dated as of June 25, 2015 pursuant to which such Person has agreed to purchase shares of Common Stock in connection with the Other Private Placements.

“Other Private Placements” has the meaning set forth in Whereas clause D.

“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization or a government or any department or agency thereto.

“Post-Closing 8-K” has the meaning set forth in Section 4(j).

 

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“Pre-Announcement Period” has the meaning set forth in Section 2(e).

“Pre-Closing 8-K” has the meaning set forth in Section 4(j).

“Pre-Redemption Period” has the meaning set forth in Section 4(k)(ii).

“Principal Market” means the NASDAQ Global Select Market.

“Purchase Price” has the meaning set forth in Section 1(c).

“Registration Rights Agreement” means a Registration Rights Agreement between the Company and the Buyer substantially in the form set forth on Exhibit A hereto.

“Regulation D” has the meaning set forth in Whereas clause A.

“Regulatory Agreement” has the meaning set forth in Section 3(q)(i).

“Rule 144” has the meaning set forth in Section 2(h)(i).

“Rule 144A” has the meaning set forth in Section 2(h)(i).

“Sarbanes-Oxley Act” has the meaning set forth in Section 3(j)(iii).

“SEC” has the meaning set forth in Whereas clause A.

“SEC Documents” has the meaning set forth in Section 3(j)(i).

“Shares” has the meaning set forth in Section 1(a).

“Standstill Period” has the meaning set forth in Section 4(l).

“Stock Reduction Triggering Event” has the meaning set forth in Section 4(k)(ii).

 “Subsidiaries” means MetaBank and any other entity (including any joint venture) in which the Company, directly or indirectly, owns capital stock or holds an equity or similar interest having general voting power in respect of more than fifty percent (50%) of all of the capital stock or equity or similar interest of such entity or joint venture.

“Tax” means all federal, state, local, foreign or other governmental taxes, assessments, duties, fees, levies or similar charges of any kind imposed by a Governmental Entity, including, but not limited to, all income, profit, gross receipts, franchise, excise, property, use, intangibles, sales, payroll, social security, employment, value added, withholding and other taxes, and including all interest, penalties and additional amounts imposed with respect to such amounts, whether as a primary obligor or as a result of being a “transferee” (within the meaning of Section 6901 of the Code or any other applicable Law) of another Person or as a result of being a member of an affiliated, consolidated, unitary or combined group.

 

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“Tax Return” means any return, declaration, report, claim for refund, information return, statement or other document relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

“Transaction Documents” means, collectively, this Agreement, the Registration Rights Agreement and each of the other agreements and instruments the Company or the Buyer is, or will be, a party or by which it is, or will be, bound in connection with the transactions contemplated hereby and thereby.

“Transfer Agent” has the meaning set forth in Section 1(d).

(b)          Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal Laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the Laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Sioux Falls, South Dakota, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by Law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

(c)          Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided, that a facsimile or electronic (i.e., “PDF”) signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original.

(d)          Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

(e)          Severability. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.

 

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(f)          Entire Agreement; Amendments. This Agreement, the Confidentiality Agreement, the Registration Rights Agreement and the other Transaction Documents supersede all other prior oral or written agreements among the Buyer and the Company, their Affiliates and Persons acting on their behalf with respect to the matters discussed herein and therein, and this Agreement, the Confidentiality Agreement, the Registration Rights Agreement and the other Transaction Documents contain the entire understanding of the parties hereto with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Buyer. No provision hereof may be waived other than by an instrument in writing signed by the party from whom waiver is sought.

(g)          Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

If to the Company:

Meta Financial Group, Inc.

5501 S. Broadband Lane

Sioux Falls, South Dakota 57108

Facsimile: (605) 338-0596

Attention: J. Tyler Haahr

with a copy (for informational purposes only) to:

Katten Muchin Rosenman LLP

2900 K Street, NW

North Tower, Suite 200

Washington, DC 20007

Facsimile: (202) 339-8281

Attention: Jeffrey M. Werthan, Esq.

If to the Buyer:

Hawk Ridge Master Fund LP

12400 Wilshire Blvd., Suite 820

Los Angeles, CA 90025

Facsimile: (213) 402-7727

		Attention:	Eric Wolff

David Bradley

 

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or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party pursuant to this Section.

(h)          Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Neither the Company nor the Buyer shall assign or delegate this Agreement or any of its rights or obligations hereunder without the prior written consent of the other party hereto.

(i)          No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

(j)          Further Assurances. Each party hereto shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

(k)          No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rules of strict construction will be applied against any party.

(l)          Remedies. The Buyer shall have all rights and remedies set forth in this Agreement and all rights and remedies which it has been granted at any time under any other agreement or contract and all of the rights which such holders have under any Law. Each party hereto shall be entitled to enforce its rights hereunder specifically (without posting a bond or other security or proving actual damages), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by Law. Notwithstanding anything to the contrary contained herein, neither party hereto shall be entitled to consequential, special, exemplary, indirect or incidental damages hereunder.

(m)          Acknowledgment Regarding Buyer’s Shares. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company or any of the Subsidiaries (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby, and any advice given by the Buyer or any of its representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental to the Buyer’s purchase of the Shares. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation by the Company and its representatives.

(n)          Buyer’s Acknowledgments Regarding Other Private Placements. Except as set forth in the proviso to this sentence, the Buyer acknowledges and agrees that it is entering into (or will enter into) this Agreement and each other Transaction Document to which it is or will be a party without relying on any representation and warranty of, or any other statement made by, the Company or any of its advisors or representatives to the effect that the terms, conditions and provisions of this Agreement and such other Transaction Documents are based on the same terms, conditions and provisions as those terms, conditions and provisions agreed to by the Company and any Other Investor in connection with any Other Private Placement; provided, that the Company hereby represents and warrants that this Agreement and each of the securities purchase agreements entered into by the Other Investors in connection with the Other Private Placements are on the date hereof, and will be on the Closing Date, substantially the same with respect to the following provisions (or absence thereof, as the case may be), and the terms of each such provision are not more or less favorable in any respect to the Buyer as compared to any Other Investor: (i) the manner of computing the Purchase Price (as set forth in Section 1(c) hereof), (ii) the outside date by which any party hereto or thereto, as applicable, may terminate such agreement if the Closing of the transactions contemplated hereby or thereby, as applicable, shall not have occurred (as set forth in Section 8(b) hereof), (iii) the definition of “Material Adverse Effect” (as set forth in Section 9(a) hereof), (iv) the indemnification provisions (as set forth in Section 7 hereof), and (v) the absence of a provision relating to the Buyer or any Other Investor being entitled to receive reimbursement from the Company of any of its costs or expenses related to entering into this Agreement or the securities purchase agreements entered into in connection with the Other Private Placements, as the case may be (other than pursuant to the indemnification provisions to the extent provided therein, if at all, which indemnification provisions are substantially the same) (collectively, the “Fundamental Terms”). In the event that the Company agrees to amend any of the Fundamental Terms for any Other Investor in connection with any Other Private Placement, the Company shall notify the Buyer within one (1) Business Day of such amendment (which, in any event, shall be not less than one (1) Business Day prior to the Closing Date) and provide to the Buyer a draft of the revised securities purchase agreement or other transaction document, as applicable.

 

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(o)          Interpretive Matters. Unless the context otherwise requires, (a) all references to Sections, Schedules, Appendices or Exhibits are to Sections, Schedules, Appendices or Exhibits contained in or attached to this Agreement, (b) words in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (c) the words “hereof,” “herein” and words of similar effect shall reference this Agreement in its entirety, and (d) the use of the word “including” in this Agreement shall be by way of example rather than limitation.

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date first written above.

	 	
COMPANY:

	 	
	 	
META FINANCIAL GROUP, INC.

	 	
	 	
By

	
/s/ Glen W. Herrick

	 	
Name:

	
Glen W. Herrick

	 	
Title:

	
Executive Vice President and Chief Financial Officer

	 	 	 
	 		
	 	
BUYER:

	 	
	 	
HAWK RIDGE MASTER FUND LP

	 	 	 
	 	
By:

	
/s/ Eric Wolff

	 	
Name:

	
Eric Wolff

	 	
Title:

	
Principal

[Signature Page to Securities Purchase Agreement - Hawk Ridge]

 

Schedule 9(a)

Knowledge of the Company

J. Tyler Haahr

Glen W. Herrick

Bradley C. Hanson

John Hagy

 

META FINANCIAL GROUP, INC.

SECURITIES PURCHASE AGREEMENT

DISCLOSURE LETTER

This Meta Financial Group, Inc. Disclosure Letter (the “Disclosure Letter”) is the Disclosure Letter referred to in, and is being delivered pursuant to, the Securities Purchase Agreement, dated as of June 29, 2015 (the “Agreement”), by and between Meta Financial Group, Inc., a Delaware corporation (“Company”), and Hawk Ridge Master Fund LP, a Delaware limited partnership (“Buyer”). Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the Agreement, unless the context otherwise requires.

The information and disclosures made in this Disclosure Letter are subject to, and made under, the following terms and conditions:

The information included in this Disclosure Letter is disclosed confidentially and is subject to the obligations of confidentiality contained in the Confidentiality Agreement. The information provided in this Disclosure Letter is being provided solely for the purpose of making the required disclosures to Buyer under the Agreement. Except as expressly required by the Agreement, the inclusion of any fact, item, matter, circumstance, transaction, action, proceeding, or event in a Schedule hereof is not deemed to be an admission or representation that the fact, item, matter, circumstance, transaction, action, proceeding, or event is or is not material or would or could have a Material Adverse Effect, and such inclusion shall not be deemed an acknowledgement that such fact, item, matter, circumstance, transaction, action, proceeding, or event is required to be disclosed pursuant to the Agreement. The introductory language and the heading to each Schedule are inserted for convenience of reference only and shall not create a different standard for disclosure from that set forth in the Agreement. Further, the use of headings in this Disclosure Letter shall not create a representation regarding the completeness or accuracy of the organization of the information in this Disclosure Letter. In disclosing this information in this Disclosure Letter, Company expressly does not waive any attorney-client privilege associated with such information, nor any protection afforded by the work-product doctrine with respect to any of the matters disclosed or discussed herein.

In accordance with the Agreement, Company hereby discloses to Buyer the following:

 

Schedule 3(e)

No Conflicts

None.

 

Schedule 3(j)(i)

Certain Reports Not Filed with the SEC

None.

 

Schedule 3(l)(i)

Material Adverse Effect Events

None.

 

Schedule 3(l)(ii)

Certain Changes

None.

 

Schedule 3(m)

Undisclosed Liabilities

None.

 

Schedule 3(p)

Transactions with Affiliates

Affiliate Transactions with Subsidiaries

None of the officers, directors or employees of the Company or any of its subsidiaries is a party to any affiliate transaction with any of the Subsidiaries.

Affiliate Transactions with the Company

See the Company’s Annual Report on Form 10-K filed December 12, 2014 and the Company’s Proxy Statement on Schedule DEF 14A filed on December 16, 2014 for a description of the Company’s stock option and incentive plans and information regarding options and restricted shares outstanding thereunder.

As of June 17, 2015, the executive officers of the Company held the number of unexercised options for shares of Common Stock and shares of unvested restricted common stock set forth opposite their names below:

	
Executive Officer

	
Unexercised Options for shares of Common Stock

	
Shares of Unvested Restricted Common Stock

	
J. Tyler Haahr

	
49,065

	
0

	
Bradley C. Hanson

	
81,920

	
0

	
Glen W. Herrick

	
0

	
2,000

	
Troy Moore, III

	
20,417

	
0

	
Ira D. Frericks

	
0

	
0

	
Ronald W. Butterfield

	
3,119

	
0

	
Total:

	
154,521

	
2,000

As of June 17, 2015, all other employees, officers, directors and consultants of the Company and its Subsidiaries held a total of 225,620 unexercised options and 4,230 shares of unvested restricted stock.

 

Schedule 3(q)

Agreements with Regulatory Agencies

	
(i)

	
Section 3(q)(i) – Regulatory Agreements.

As previously disclosed in public filings with the SEC, on July 15, 2011, the Company and MetaBank each stipulated and consented to a Cease and Desist Order (together, the “Orders” or the “Consent Orders”) issued by the Office of Thrift Supervision (the “OTS”), imposing various restrictions and compliance requirements on the Company and the Bank, respectively. On August 7, 2014, the Office of the Comptroller of the Currency (“OCC”), as successor to the OTS as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, terminated the Bank’s Consent Order. On May 26, 2015, the Federal Reserve Board announced that on May 21, 2015, it had terminated the Consent Order relating to the Company.

	(ii)	Section 3(q)(ii) – Pending or threatened Regulatory Agreements; capital restoration plans.

The information presented elsewhere in this Schedule 3(q) is incorporated herein by reference.

	(iii)	Section 3(q)(iii) – Initiated or pending proceedings, enforcement actions, or formal investigations.

None.

	(iv)	Section 3(q)(iv) – Resolutions of proceedings, enforcement actions, or formal investigations.

As previously disclosed in public filings with the SEC, on July 15, 2011, the Company and MetaBank each stipulated and consented to the Consent Orders issued by the OTS.

On August 7, 2014, the Company announced that its bank subsidiary, MetaBank, had been released from its Consent Order by the OCC. The Consent Order was terminated effective August 7, 2014.

On May 26, 2015, the Federal Reserve Board announced that on May 21, 2015, it had terminated the Consent Order relating to the Company. The Consent Order was originally issued by the Office of Thrift Supervision.

	(v)	Section 3(q)(v) – Unresolved violations, criticisms or exceptions.

None.

 

	(vi)	Section 3(q)(vi) – Formal inquiries by or disagreement or disputes with any Government Agency.

None.

 

Schedule 3(r)

Certain Capitalization Matters

	
(i)

	
Capital Stock of Company Subject to Preemptive Rights or Similar Rights or Liens, etc.

None.

	(ii)	Outstanding Options, Warrants, Convertible Securities, Rights to Subscribe, etc. Relating to the Company and its Subsidiaries

The options and other securities described or referenced on Schedule 3(p) of this Disclosure Letter.

	(iii)	Registration Obligations of the Company or its Subsidiaries

None.

	(iv)	Agreements of the Company or its Subsidiaries That May Require Redemption of Securities of the Company

		(A)	Securities Purchase Agreement, dated as of January 29, 2010, between the Company and NetSpend Holdings, Inc.

		(B)	Securities Purchase Agreement, dated as of May 9, 2012, between the Company and ACP MFG Holdings, LLC.

		(C)	Securities Purchase Agreement, dated as of May 9, 2012, among the Company and Boathouse Row I, LP, Boathouse Row II, LP and Boathouse Row Offshore, LTD.

		(D)	Securities Purchase Agreement, dated as of May 9, 2012, between the Company and Long Meadow Holdings, L.P.

	(v)	Securities of the Company or its Subsidiaries With Anti-Dilution Rights, etc.

None.

	(vi)	Stock Appreciation Rights and Phantom Stock Plans of the Company

None.

 

Schedule 3(s)

Subsidiaries of the Company

The following are the direct and indirect subsidiaries of the Company, showing the owner thereof, percentage interest held and jurisdiction of organization:

	
Name and Jurisdiction

of Subsidiary

	
Owner

of Subsidiary

	
Percentage Interest of

Subsidiary Held by Owner

	
 

MetaBank,

a federally chartered

savings association

 

 

	
 

Meta Financial Group, Inc.

	
 

100%

	
 

First Midwest

Financial Capital Trust I,

a Delaware business trust

 

 

	
 

Meta Financial Group, Inc.

	
 

100%

 

Schedule 3(t)

Litigation

None.

 

Exhibit A to Securities Purchase Agreement

(Form of Registration Rights Agreement)

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of __________ ___, 2015, by and between Meta Financial Group, Inc., a Delaware corporation (the “Company”), and Hawk Ridge Master Fund LP, a Delaware limited partnership (the “Buyer”).

RECITALS:

WHEREAS, this Agreement is being entered into pursuant to the provisions of that certain Securities Purchase Agreement (the “Securities Purchase Agreement”), dated as of June 29, 2015, by and between the Company and the Buyer; and

WHEREAS, as an inducement to the Buyer’s investment in the Company pursuant to the Securities Purchase Agreement, the parties desire to enter into this Agreement in order to grant certain registration rights to the Buyer as set forth below.

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1.

GENERAL

1.1            Definitions. As used in this Agreement, the following terms shall have the following respective meanings:

“120-Day Deadline” shall have the meaning ascribed to it in Section 2.1(b) hereof.

“Affiliate” of any particular Person means any other Person controlling, controlled by or under common control with such particular Person or entity.

“Agreement” shall have the meaning ascribed to it in the preamble hereof.

“Black Out Period” shall have the meaning ascribed to it in Section 2.11(a) hereof.

“Business Day” means any day that is not a Saturday or Sunday or a day on which banks are required or permitted to be closed in the State of New York.

“Buyer” shall have the meaning ascribed to it in the preamble hereof.

“Closing Date” means the date on which the closing of the transactions contemplated by the Securities Purchase Agreement occurs.

“Common Stock” means shares of common stock, $0.01 par value per share, of the Company.

 

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“Company” shall have the meaning ascribed to it in the preamble hereof.

“Event” shall have the meaning ascribed to it in Section 2.1(b) hereof.

“Event Date” shall have the meaning ascribed to it in Section 2.1(b) hereof.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

“Holder” or “Holders” means the Buyer and any holder of Registrable Securities to whom the registration rights conferred by this Agreement have been transferred in compliance with Section 2.8 hereof.

“Mandatory Registration Statement” shall have the meaning ascribed to it in Section 2.1(a) hereof.

“Misstatement” shall have the meaning ascribed to it in Section 2.4 hereof.

“Person” means any individual, corporation, partnership, joint venture, limited liability company, business trust, joint stock company, trust or unincorporated organization or any government or any agency or political subdivision thereof.

“Register,” “registered,” and “registration” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement.

“Registrable Securities” means (a) the Shares, and (b) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, preferred stock or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the Shares held by the Holders; provided, however, that Registrable Securities shall not include any shares of Common Stock (i) which have been sold or otherwise disposed of either pursuant to a registration statement or Rule 144 under the Securities Act; (ii) which have been sold in a private transaction in which the transferor’s rights under this Agreement are not assigned in compliance with the terms of this Agreement; or (iii) which may be sold by the Holder in question pursuant to Rule 144 without volume restrictions or public information requirements.

“Registration Expenses” means all expenses incurred by the Company in effecting any registration pursuant to this Agreement (including any Mandatory Registration Statement), including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of the Company’s independent accountants in connection with any regular or special reviews or audits incident to or required by any such registration, and any other Persons retained by the Company and the compensation of regular employees of the Company, which shall be paid in any event by the Company, but shall not include Selling Expenses.

 

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“Rule 144” means Rule 144 under the Securities Act or any successor rule.

“SEC” or “Commission” means the Securities and Exchange Commission and any successor agency.

“Securities Act” means the Securities Act of 1933, as amended, or similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time.

“Securities Purchase Agreement” shall have the meaning ascribed to it in the recitals hereof.

“Selling Expenses” means all underwriting discounts, selling commissions, fees of underwriters, selling brokers, dealer managers and similar securities industry professionals and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder.

“Shares” means the 93,809 shares of Common Stock issued by the Company to the Buyer on the Closing Date pursuant to the Securities Purchase Agreement.

“Trading Markets” shall have the meaning ascribed to it in Section 2.3(g) hereof.

“Violation” shall have the meaning ascribed to it in Section 2.7(a) hereof.

SECTION 2.

REGISTRATION

2.1            Registration Statement.

(a)            In accordance with the requirements of Section 2.3 below, the Company shall file with the SEC within thirty (30) calendar days after the Closing Date, and shall use commercially reasonable efforts to cause to be declared effective by the SEC as soon as practicable after the date of such filing, and in any event within 120 calendar days after the Closing Date, a registration statement on Form S-1 or Form S-3 with respect to the resale of the Registrable Securities by the Holders thereof. The Company shall also, once such registration statement becomes effective, maintain the effectiveness of the registration effected pursuant to this Section 2.1 and keep such registration statement free of any material misstatements or omissions at all times, subject only to the limitations set forth herein, including pursuant to Section 2.4 hereof. The registration statement contemplated by this Section 2.1 is referred to herein as the “Mandatory Registration Statement.” The Company shall cause the Mandatory Registration Statement to remain effective until such date as is the earlier of (i) the date on which all Registrable Securities included in the registration statement shall have been sold or shall have otherwise ceased to be Registrable Securities and (ii) the date on which all remaining Registrable Securities may be sold pursuant to Rule 144 without volume restrictions or public information requirements and any and all restrictive legends with respect to restrictions on transferability under the Securities Act have been removed from the Shares (provided that removal of such legends shall not be a condition to the Company’s right to cause the Mandatory Registration Statement to no longer remain effective if the Holders shall fail to promptly take such reasonable actions as the Company shall reasonably request to facilitate removal of the restrictive legends).

 

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(b)            If: (i) the Mandatory Registration Statement is not filed on or prior to thirty (30) calendar days after the Closing Date (subject to the provisions of Section 2.11), or (ii) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five (5) Business Days after the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that the Mandatory Registration Statement will not be “reviewed” or not be subject to further review, or (iii) the Mandatory Registration Statement filed or required to be filed hereunder is not declared effective by the Commission within 120 calendar days after the Closing Date (the “120-Day Deadline”), or (iv) in the event that, after the 120-Day Deadline, the Registrable Securities have not been listed on the Trading Markets (as defined below), or (v) after the 120-Day Deadline, the Mandatory Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are otherwise not permitted to utilize the prospectus therein to resell such Registrable Securities (except as may be restricted pursuant to Section 2.4 or 2.11) for more than 14 consecutive calendar days or more than an aggregate of 20 calendar days during any 12-month period (which need not be consecutive calendar days) (any such failure or breach being referred to as an “Event”, and for purposes of clause (i), (iii) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such five (5) Business Day period is exceeded, or for purposes of clause (v) the date on which such 14 or 20 calendar day period, as applicable, is exceeded being referred to as the “Event Date”), then in addition to any other rights a Holder may have hereunder or under applicable law, on each such Event Date and on the expiration of each thirty (30) day period following such Event Date (if the applicable Event shall not have been cured by such date) until the earlier of the date on which the applicable Event is cured or such Holder no longer owns Registrable Securities, the Company shall pay to such Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to two and one-half percent (2.50%) of the aggregate purchase price paid by such Holder for all Registrable Securities then held by such Holder. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven calendar days after the date payable hereunder, the Company will pay interest thereon at a rate of 18% per annum (or, to the extent such amount exceeds the maximum amount that is permitted to be paid under applicable law, such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due hereunder until such amounts, plus all such interest thereon, are paid in full. Notwithstanding anything herein to the contrary, in no event shall liquidated damages or any interest thereon accrue, nor shall the Company have any payment or other obligations pursuant to this Section 2.1(b), with respect to more than one Event at any time. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event.

2.2            Expenses of Registration. All reasonable Registration Expenses incurred in connection with any registration hereunder shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the Holders of the Registrable Securities so registered pro rata on the basis of the number of shares so registered.

 

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2.3            Additional Obligations of the Company. The Company shall:

(a)            At least three (3) Business Days before filing the Mandatory Registration Statement, furnish to counsel selected by the Holders of a majority of the Registrable Securities covered by such registration statement copies of all such documents proposed to be filed (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and any similar or successor reports that have been filed via EDGAR which may be incorporated or deemed to be incorporated by reference thereto), and the Company shall in good faith consider any reasonable comments of such counsel received at least one (1) Business Day prior to filing.

(b)            Promptly notify the Holders when the Mandatory Registration Statement is declared effective by the Commission. The Company shall respond as promptly as reasonably practicable to any comments received from the Commission with respect to the registration statement or any amendments thereto and shall furnish to the Holders, upon request, any comments of the Commission staff regarding the Holders. The Company shall promptly file with the Commission a request for acceleration of effectiveness in accordance with Rule 461 promulgated under the Securities Act after the Company concludes that the staff of the Commission has no further comments on the filing.

(c)            Furnish to the Holders such number of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

(d)            Use commercially reasonable efforts to register and qualify the securities covered by the Mandatory Registration Statement under such other securities or Blue Sky laws of such U.S. jurisdictions as shall be reasonably requested by the Holders unless an exemption from registration and qualification exists; provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business, file a general consent to service of process or subject itself to general taxation in any such states or jurisdictions.

(e)            Promptly notify each Holder of Registrable Securities covered by the Mandatory Registration Statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing (provided that in no event shall such notice contain any material, non-public information regarding the Company) and, when such state of facts no longer exists whether due to passage of time or filing of supplemental disclosure by the Company, the Company shall promptly furnish to each such Holder a reasonable number of copies of any supplement or amendment to such prospectus filed by the Company.

(f)            Use commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of the Mandatory Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction in the United States, and in the event of the issuance of any stop order suspending the effectiveness of such registration statement, or any order suspending or preventing the use of any related prospectus or suspending the qualification of any equity securities included in such registration statement for sale in any jurisdiction, the Company shall use commercially reasonable efforts to obtain promptly the withdrawal of such order.

 

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(g)            Use commercially reasonable efforts to cause all Shares to be listed on each securities exchange on which the same class of securities issued by the Company are then listed (collectively, the “Trading Markets”), including, without limitation, by the filing of any required additional listing applications.

(h)            Use commercially reasonable efforts to cooperate with the Holders who hold Registrable Securities being offered and, to the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities sold pursuant to the Mandatory Registration Statement, and enable such certificates to be in such denominations or amounts, as the case may be, as the Holders may reasonably request and registered in such names as the Holders may request.

(i)            Provide and cause to be maintained a registrar and transfer agent for all Registrable Securities covered by any registration statement from and after a date not later than the effective date of the Mandatory Registration Statement.

(j)            Not, nor shall any subsidiary or affiliate thereof, identify any Holder as an underwriter in any public disclosure or filing with the SEC or the NASDAQ Stock Market or any other securities exchange or market without the consent of such Holder except as required by law.

2.4            Suspension of Sales. Upon receipt of written notice from the Company that the Mandatory Registration Statement or a prospectus relating thereto contains an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading (a “Misstatement”), each Holder of Registrable Securities shall forthwith discontinue disposition of Registrable Securities until such Holder has received copies of the supplemented or amended prospectus that corrects such Misstatement, or until such Holder is advised in writing by the Company that the use of the prospectus may be resumed, and, if so directed by the Company, such Holder shall deliver to the Company all copies, other than permanent file copies then in such Holder’s possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. The total number of calendar days that any such suspension may be in effect in any 365 day period shall not exceed 90 days.

2.5            Termination of Registration Rights. A Holder’s registration rights under this Agreement, including any right to payment under Section 2.1(b), shall expire on the date on which such Holder ceases to own Registrable Securities or securities that are expressly convertible into or exercisable for Registrable Securities.

2.6            Furnishing Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Agreement that the selling Holders shall furnish to the Company such information regarding themselves, the Registrable Securities held by them and the intended method of disposition of such securities as shall be required to effect the registration of their Registrable Securities.

 

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2.7            Indemnification. In the event any Registrable Securities are included in a registration statement under this Section 2:

(a)            To the extent permitted by law, the Company shall indemnify and hold harmless each Holder and each person, if any, who controls such Holder within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Investment Company Act of 1940, as amended, or the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any related preliminary prospectus or final prospectus or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, or state securities laws or any rule or regulation promulgated under the Securities Act, the Exchange Act or any other federal or state securities law in connection with the registration of the Registrable Securities; and the Company will pay to each such Holder or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 2.7(a) shall not apply to any Holder (or any related controlling person) with respect to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs (i) solely in reliance upon and in conformity with written information furnished expressly for use in connection with such registration statement (including any related preliminary prospectus or final prospectus) or any amendment thereof or supplement thereto by such Holder or controlling person, (ii) as a result of any failure of such Holder or controlling person to deliver or cause to be delivered a prospectus made available by the Company in a timely manner, or (iii) as a result of a violation by such Holder or controlling person of such Holder’s obligations under Section 2.4 hereof.

(b)            To the extent permitted by law and provided that such Holder is not entitled to indemnification pursuant to Section 2.7(a) above with respect to such matter, each selling Holder (severally and not jointly) shall indemnify and hold harmless the Company, each of its directors, officers, persons, if any, who control the Company within the meaning of the Securities Act, any other Holder selling securities in such registration statement and any controlling person of any such other Holder, against any losses, claims, damages, or liabilities to which any of the foregoing persons may become subject under the Securities Act, the Exchange Act or other federal or state securities law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any (i) untrue statement or alleged untrue statement of a material fact regarding such Holder and provided in writing by such Holder expressly for use in connection with a registration statement which is contained in such registration statement, including any related preliminary prospectus or final prospectus or any amendments or supplements thereto, (ii) the omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, in the case of each of clause (i) and (ii), to the extent (and only to the extent) that such untrue statement or alleged untrue statement or omission or alleged omission was made in such registration statement, preliminary or final prospectus, amendment or supplement thereto, in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration statement, preliminary or final prospectus, amendment or supplement thereto, (iii) any failure by such Holder or controlling person to deliver or cause to be delivered a prospectus made available by the Company in a timely manner, or (iv) violation by such Holder or controlling person of such Holder’s obligations under Section 2.4 hereof; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred by any Person intended to be indemnified pursuant to this Section 2.7(b) in connection with investigating or defending any such loss, claim, damage, liability, or action as a result of such Holder’s untrue statement, omission, failure or violation; provided, however, that the indemnity agreement contained in this Section 2.7(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld); provided, that, (x) the indemnification obligations in this Section 2.7(b) shall be individual and ratable not joint and several for each Holder and (y) in no event shall the aggregate of all indemnification payments by any Holder under this Section 2.7(b) exceed the net proceeds from the offering received by such Holder.

 

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(c)            Promptly after an indemnified party under this Section 2.7 becomes aware of any matter that such indemnified party believes will entitle such party to indemnification pursuant to this Section 2.7, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.7, deliver to the indemnifying party a written notice thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense of the action in question (including any governmental action) with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses of such counsel to be paid by the indemnifying party, if (i) the indemnifying party shall have failed to assume the defense of such claim within twenty (20) days after receipt of notice of the claim and to employ counsel reasonably satisfactory to such indemnified party, as the case may be; or (ii) in the reasonable opinion of counsel retained by the indemnifying party, representation of such indemnified party by such counsel would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The indemnified party shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the indemnified party which relates to such action or claim. The indemnifying party shall keep the indemnified party reasonably apprised of the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the indemnified party under this Section 2.7, except to the extent such failure to give notice actually and materially prejudices the indemnifying party.

 

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(d)            If the indemnification provided for in this Section 2.7 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage, or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, the amount that any Holder will be obligated to contribute pursuant to this Section 2.7(d) will be limited to an amount equal to the net amount of proceeds received by such Holder from the sale of Registrable Securities sold by such Holder pursuant to the registration statement which gives rise to such obligation to contribute (less the aggregate amount of any damages which such Holder has otherwise been required to pay in respect of such loss, liability, claim, damage, or expense or any substantially similar loss, liability, claim, damage, or expense arising from the sale of such Registrable Securities). No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution hereunder from any person who was not guilty of such fraudulent misrepresentation.

(e)            The obligations of the Company and Holders under this Section 2.7 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 2, and otherwise.

2.8            Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Agreement may be assigned by a Holder to a transferee or assignee of Registrable Securities if (a) such transferee is an Affiliate, subsidiary or parent company of a party hereto, or (b) such transferee acquires at least 25% of the Registrable Securities then owned by such Holder; provided, that (i) the transferor shall furnish to the Company written notice at or prior to the time of transfer of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned, (ii) such transferee shall agree in writing to be subject to all restrictions set forth in this Agreement in the same capacity and to the same extent as the transferring Holder; and (iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the Securities Act or applicable state securities laws and such transferee shall acknowledge, immediately following such assignment, that the further disposition of such securities by such assignee is restricted under the Securities Act.

2.9            Rule 144 Reporting. With a view to making available to the Holders the benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable Securities to the public without registration, the Company agrees, so long as shares of Registrable Securities are outstanding, to use its reasonable best efforts to:

 

A-9

(a)            make and keep public information available, as those terms are understood and defined in Securities Act Rule 144 or any similar or analogous rule promulgated under the Securities Act, at all times after the effective date of this Agreement;

(b)            file with the SEC, in a timely manner, all annual and quarterly reports required of the Company under Section 13 or Section 15(d) of the Exchange Act; and

(c)            so long as a Holder owns any Registrable Securities, furnish to such Holder forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of Rule 144 under the Securities Act, and of the Exchange Act; a copy of the most recent annual or quarterly report of the Company; and such other reports and documents as a Holder may reasonably request in availing itself of any rule or regulation of the SEC allowing it to sell any such securities without registration.

2.10            Obligations of the Holders.

(a)            Each Holder shall furnish in writing to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request in connection therewith. Upon the execution of this Agreement, each Holder shall complete, execute and deliver to the Company a selling securityholder notice and questionnaire in form reasonably satisfactory to the Company. At least five (5) Business Days prior to the first anticipated filing date of any registration statement, the Company shall notify each Holder of any additional information the Company requires from such Holder if such Holder elects to have any of the Registrable Securities included in such registration statement. A Holder shall provide such information to the Company at least two (2) Business Days prior to the first anticipated filing date of such Registration Statement. Each holder agrees that, in connection with any sale of Registrable Securities by it pursuant to a registration statement, it shall comply with the “Plan of Distribution” section of the then current prospectus relating to such registration statement.

(b)            Each Holder, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the Mandatory Registration Statement hereunder, unless such Holder has notified the Company in writing of its election to exclude all of its Registrable Securities from the Mandatory Registration Statement.

(c)            Each Holder covenants and agrees that it shall comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Mandatory Registration Statement (including any related prospectus) and any amendment or supplement thereto.

2.11            Suspension of Registration Rights.

 

A-10

(a)            Notwithstanding anything to the contrary herein, if the Company shall at any time furnish to the Holders a certificate signed by any of its authorized officers (a “Suspension Notice”) stating that the Company is engaged in a material merger, acquisition or sale, or a pending material financing, material corporate reorganization or other material corporate transaction, and the Board of Directors of the Company determines, in good faith and by appropriate resolution after consultation with its outside counsel, that the filing of the Mandatory Registration Statement would require additional disclosure of material information that would be materially detrimental to the Company, then the right of the Holders to require the Company to file the Mandatory Registration Statement shall be suspended for a period (a “Black Out Period”) of not more than sixty (60) days in the aggregate in any three hundred and sixty (360) consecutive-day period (and no more than ten (10) consecutive Business Days in any three hundred and sixty (360) consecutive day period).

(b)            Notwithstanding anything to the contrary in this Section 2.11, the Company shall not impose any Black Out Period in a manner that is more restrictive (including, without limitation, as to duration) than the comparable restrictions that the Company may impose on transfers of the Company’s equity securities by its directors and senior executive officers.

(c)            If the public announcement of the applicable material transaction or material, nonpublic information is made during a Black Out Period, then the Black Out Period shall terminate without any further action of the parties and the Company shall immediately notify the Holders of such termination.

SECTION 3.

MISCELLANEOUS

3.1            Successors and Assigns. Except as otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the parties (including, subject to Section 2.8, transferees of Registrable Securities). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

3.2            Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal Laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the Laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Sioux Falls, South Dakota, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by Law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

A-11

3.3            Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument

3.4            Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement

3.5            Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) Business Day after deposit with a nationally recognized overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

If to the Company:

Meta Financial Group, Inc.

5501 S. Broadband Lane

Sioux Falls, South Dakota 57108

Facsimile: (605) 338-0596

Attention: J. Tyler Haahr

with a copy (for informational purposes only) to:

Katten Muchin Rosenman LLP

2900 K Street, NW

North Tower, Suite 200

Washington, DC 20007

Facsimile: (202) 339-8281

Attention: Jeffrey M. Werthan, Esq.

If to the Buyer:

Hawk Ridge Master Fund LP

12400 Wilshire Blvd., Suite 820

Los Angeles, CA 90025

Facsimile: (213) 402-7727

	 	Attention:	Eric Wolff

David Bradley

 

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or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party pursuant to this Section.

3.6            Expenses. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

3.7            Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the prior written consent of the Company and a majority-in-interest of the Holders.

3.8            Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

3.9            Entire Agreement. This Agreement supersedes all other prior oral or written agreements between the Buyer, the Company, their Affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters.

3.10            Termination. This Agreement shall terminate and be of no further legal force and effect when all of the Registrable Securities shall no longer be or constitute Registrable Securities in accordance with the definition thereof set forth in Section 1.1; provided, however, that the provisions of Section 2.2, Section 2.7 and Section 3 shall survive the termination of this Agreement.

3.11            Interpretive Matters. Unless the context otherwise requires, (a) all references to Sections, Schedules, Appendices or Exhibits are to Sections, Schedules, Appendices or Exhibits contained in or attached to this Agreement, (b) words in the singular or plural include the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (c) the words “hereof,” “herein” and words of similar effect shall reference this Agreement in its entirety, and (d) the use of the word “including” in this Agreement shall be by way of example rather than limitation.

[Remainder of page intentionally left blank]

 

A-13

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

	 	
COMPANY:

	 	 	 	 
	 	
META FINANCIAL GROUP, INC.

	 	 	 	 
	 	
By:

	    
	 	 	
Name:

	
J. Tyler Haahr

	 	 	
Title:

	
Chief Executive Officer

	 	 	 	 
	 			
	 	
BUYER:

	 	 	 	 
	 	
HAWK RIDGE MASTER FUND LP

	 	 	 	 
	 	
By:

	    
	 	 	
Name:

	
Eric Wolff

	 	 	
Title:

	
Principal

[Signature Page to Registration Rights Agreement]Exhibit 10.1

 

 

EXECUTION VERSION

 

 

 

$1,200,000,000.00

 

FIVE-YEAR CREDIT AGREEMENT

 

dated as of

June 30, 2015

among

 

McGRAW HILL FINANCIAL, INC.

as Borrower

 

STANDARD & POOR’S FINANCIAL SERVICES
LLC

as a Loan Guarantor

 

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 

BANK OF AMERICA, N.A.

as Syndication Agent

 

CITIBANK, N.A.

DEUTSCHE BANK SECURITIES INC.

MIZUHO BANK, LTD.

MORGAN STANLEY MUFG LOAN PARTNERS, LLC

as Documentation Agents

 

J.P.
MORGAN SECURITIES LLC

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

CITIGROUP GLOBAL MARKETS INC.

DEUTSCHE BANK SECURITIES INC.

MIZUHO BANK, LTD.

MORGAN STANLEY MUFG LOAN PARTNERS, LLC

as Joint Lead Arrangers and Joint Bookrunners

 

 

 

    	 

    	 

    

 

 

TABLE OF CONTENTS

 

Page

 

	Article I Definitions	1
	 	Section 1.01.	Defined Terms	1
	 	Section 1.02.	Classification of Loans and Borrowings	19
	 	Section 1.03.	Terms Generally	19
	 	Section 1.04.	Accounting Terms; GAAP	20
	Article II The
    Credits	20
	 	Section 2.01.	Commitments	20
	 	Section 2.02.	Loans and Borrowings	20
	 	Section 2.03.	Requests for Revolving Borrowings	21
	 	Section 2.04.	Competitive Bid Procedure	22
	 	Section 2.05.	Swingline Loans	24
	 	Section 2.06.	Funding of Borrowings	25
	 	Section 2.07.	Interest Elections	26
	 	Section 2.08.	Termination and Reduction of Commitments	27
	 	Section 2.09.	Repayment of Loans; Evidence of Debt	27
	 	Section 2.10.	Prepayment of Loans	28
	 	Section 2.11.	Fees	29
	 	Section 2.12.	Interest	29
	 	Section 2.13.	Alternate Rate of Interest	30
	 	Section 2.14.	Increased Costs	30
	 	Section 2.15.	Break Funding Payments	32
	 	Section 2.16.	Taxes	33
	 	Section 2.17.	Payments Generally; Pro Rata Treatment; Sharing of Set- offs	36

 

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Page

 

	 	Section 2.18.	Mitigation Obligations; Replacement of Lenders	37
	 	Section 2.19.	Defaulting Lenders	37
	 	Section 2.20.	Proceeds	39
	Article III Letters
    of Credit	39
	 	Section 3.01.	L/C Commitment	39
	 	Section 3.02.	Procedure for Issuance of Letter of Credit	40
	 	Section 3.03.	Fees and Other Charges	40
	 	Section 3.04.	L/C Participations	41
	 	Section 3.05.	Reimbursement Obligation of the Borrower	42
	 	Section 3.06.	Obligations Absolute	42
	 	Section 3.07.	Letter of Credit Payments	43
	 	Section 3.08.	Applications	43
	 	Section 3.09.	Applicability of ISP and UCP	43
	Article IV Representations
    and Warranties	43
	 	Section 4.01.	Organization, Powers and Good Standing	43
	 	Section 4.02.	Authorization of Borrowing, etc	44
	 	Section 4.03.	Financial Condition	44
	 	Section 4.04.	No Adverse Material Change	45
	 	Section 4.05.	Litigation	45
	 	Section 4.06.	Payment of Taxes	45
	 	Section 4.07.	Governmental Regulation	45
	 	Section 4.08.	Securities Activities	45
	 	Section 4.09.	ERISA	45
	 	Section 4.10.	Disclosure	46

 

    ii 

     

    

 

Page

 

	 	Section 4.11.	Anti-Corruption Laws and Sanctions	46
	Article V Conditions	46
	 	Section 5.01.	Effective Date	46
	 	Section 5.02.	Each Credit Event	47
	Article VI Affirmative
    Covenants	48
	 	Section 6.01.	Financial Statements and Other Reports	48
	 	Section 6.02.	Corporate Existence	50
	 	Section 6.03.	Payment of Taxes	50
	 	Section 6.04.	Maintenance of Properties; Insurance	50
	 	Section 6.05.	Compliance with Laws	50
	 	Section 6.06.	Notices of ERISA Event	50
	 	Section 6.07.	Inspection Rights	51
	Article VII Negative
    Covenants	51
	 	Section 7.01.	Fundamental Changes	51
	 	Section 7.02.	Liens	51
	 	Section 7.03.	Financial Covenant	52
	 	Section 7.04.	Use of Proceeds	52
	Article VIII Events
    of Default	53
	 	Section 8.01.	Failure to Make Payments When Due	53
	 	Section 8.02.	Default in Other Agreements	53
	 	Section 8.03.	Breach of Certain Covenants	54
	 	Section 8.04.	Breach of Warranty	54
	 	Section 8.05.	Other Defaults Under Agreement	54
	 	Section 8.06.	Change In Control	54

 

    iii 

     

    

 

Page

 

	 	Section 8.07.	Involuntary Bankruptcy; Appointment of Receiver, etc	54
	 	Section 8.08.	Voluntary Bankruptcy; Appointment of Receiver, etc	55
	 	Section 8.09.	Judgments and Attachments	55
	 	Section 8.10.	Involuntary Dissolution	55
	 	Section 8.11.	ERISA Event	55
	Article IX The
    Administrative Agent	56
	Article X Miscellaneous	58
	 	Section 10.01.	Notices	58
	 	Section 10.02.	Waivers; Amendments	60
	 	Section 10.03.	Expenses; Indemnity; Damage Waiver; No Fiduciary Duty	61
	 	Section 10.04.	Successors and Assigns	62
	 	Section 10.05.	Survival	65
	 	Section 10.06.	Counterparts; Integration; Effectiveness	66
	 	Section 10.07.	Severability	66
	 	Section 10.08.	Adjustments; Right of Setoff	66
	 	Section 10.09.	Governing Law; Jurisdiction; Consent to Service of Process	67
	 	Section 10.10.	Waiver of Jury Trial	68
	 	Section 10.11.	Headings	68
	 	Section 10.12.	Confidentiality	68
	 	Section 10.13.	USA PATRIOT Act	69
	Article XI Loan
    Guaranty	69
	 	Section 11.01.	Guaranty	69
	 	Section 11.02.	Guaranty of Payment	70
	 	Section 11.03.	No Discharge or Diminishment of Loan Guaranty	70

 

    iv 

     

    

 

Page

 

	 	Section 11.04.	Rights of Subrogation	70
	 	Section 11.05.	Reinstatement; Stay of Acceleration	71
	 	Section 11.06.	Maximum Liability	71

 

    v 

     

    
 

Page

 

 

SCHEDULES:

Schedule 2.01 – Commitments

Schedule 4.01 -- Material Subsidiaries

Schedule 4.05 -- Material Litigation

Schedule 7.02 -- Existing Liens

 

EXHIBITS:

Exhibit A – Form of Assignment and Assumption

Exhibit B – Form of U.S. Tax Compliance Certificate

Exhibit C – Form of Opinion of General Counsel of Borrower

Exhibit D – Form of Joinder Agreement

 

    vi 

     

    

 

FIVE-YEAR CREDIT AGREEMENT dated as of June
30, 2015, among MCGRAW HILL FINANCIAL, INC. (the “Borrower”), STANDARD & POOR’S FINANCIAL SERVICES
LLC (“S&P”) and the certain other subsidiaries of the Borrower parties hereto from time to time as Loan
Guarantors (as defined herein), the several banks and other financial institutions from time to time parties hereto (the “Lenders”),
BANK OF AMERICA, N.A., as syndication agent (in such capacity, the “Syndication Agent”), CITIBANK, N.A., DEUTSCHE
BANK SECURITIES INC., MIZUHO BANK, LTD. and MORGAN STANLEY MUFG LOAN PARTNERS, LLC, as documentation agents (in such capacity,
the “Documentation Agents”), and JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative
Agent”).

 

The parties hereto hereby 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 is, or the Loans comprising such Borrowing are, bearing interest at a rate
determined by reference to the Alternate Base Rate.

 

“Administrative Agent”
has the meaning set forth in the preamble to this Agreement.

 

“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.

 

“Agreement” means this
Credit Agreement, as amended, supplemented or otherwise modified from time to time.

 

“Alternate Base Rate” means,
for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective
Rate in effect on such day plus 1/2 of 1% and (c) the LIBO Rate on such day for a LIBOR Loan with a one-month interest period (or
if such day is not a Business Day, the immediately preceding Business Day) plus 1%. Any change in the Alternate Base Rate due to
a change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate shall be effective from and including the effective
date of such change in the Prime Rate, the Federal Funds Effective Rate or the LIBO Rate, respectively.

 

    	 

    	 

    

 

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

 

“Applicable ABR Spread”
has the meaning set forth in the definition of “Applicable Rate” in this Section 1.01.

 

“Applicable LIBOR Spread”
has the meaning set forth in the definition of “Applicable Rate” in this Section 1.01.

 

“Applicable Percentage”
means, with respect to any Lender, the percentage of the total Commitments represented by such Lender’s Commitment; provided,
that in the case of Section 2.19 when a Defaulting Lender shall exist, Applicable Percentage shall mean the percentage of the total
Commitments (disregarding any Defaulting Lender’s Commitment) 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 and to any Lender’s status as a Defaulting Lender at the time of determination.

 

“Applicable Pricing Grid”
has the meaning set forth in the definition of “Applicable Rate” in this Section 1.01.

 

“Applicable Rate” means,
for any day, with respect to (a) any ABR Revolving Loan, the Applicable LIBOR Spread less 1% per annum (the “Applicable
ABR Spread”); provided that, the Applicable ABR Spread shall not be less than 0%, (b) any LIBOR Revolving Loan,
the applicable rate per annum set forth below under the caption “Applicable LIBOR Spread” (the “Applicable
LIBOR Spread”), or (c) commitment fees payable hereunder, the applicable rate per annum set forth below under the caption
“Commitment Fee Rate”, based upon the applicable Category set forth in the grid below (the “Applicable Pricing
Grid”):

 

	Indebtedness
    to Cash Flow Ratio:	Applicable
    LIBOR Spread	Commitment
    Fee Rate
	Category
    1: Less than 0.5 to 1.0	1.00%	0.10%
	Category
    2: Equal to or greater than 0.5 to 1.0 but less than 1.5 to 1.0.	1.125%	0.125%
	Category
    3: Equal to or greater than 1.5 to 1.0 but less than 2.5 to 1.0.	1.25%	0.15%
	Category 4: Equal to or greater
    than 2.5 to 1.0.	1.50%	0.20%

 

For purposes of determining any Applicable
Rate, (i) until the delivery of the Compliance Certificate relating to the financial statements required to be delivered pursuant
to Section 6.01(a)(i) for the first full Fiscal Quarter ended after the Effective Date, the Applicable

 

    2 

     

    

 

Rate
described in Category 2 shall be in effect and (ii) thereafter, the Applicable Rate shall be determined by the Indebtedness to
Cash Flow Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section
6.01(b)(i). Any changes in the Applicable Rate resulting from changes in the Indebtedness to Cash Flow Ratio shall become effective
on the date that is three Business Days after the date on which financial statements and the related Compliance Certificate are
delivered to the Administrative Agent pursuant to Section 6.01 and shall remain in effect until the next change to be effected
pursuant to this paragraph. If any financial statements and related Compliance Certificate referred to above are not delivered
within the time periods specified in Section 6.01, then, until the date that is three Business Days after the date on which such
financial statements and Compliance Certificate are delivered, the highest Applicable Rate set forth in the Applicable Pricing
Grid shall apply. In addition, at all times while an Event of Default shall have occurred and be continuing, the highest Applicable
Rate set forth in the Applicable Pricing Grid shall apply.

 

“Application” means an
application, in such form as the Issuing Lender may specify from time to time, requesting the Issuing Lender to open a Letter of
Credit.

 

“Approved Fund” means,
with respect to any Lender that is a fund that invests in commercial loans, any other fund that invests in commercial loans and
is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.

 

“Assignment and Acceptance”
means an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party whose consent is required
by Section 10.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative
Agent.

 

“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.

 

“Available Commitment”
means, as to any Lender at any time, an amount equal to the excess, if any, of (a) such Lender’s Commitment then in effect
minus (b) such Lender’s Revolving Credit Exposure then outstanding; provided that, in calculating any Lender’s
Available Commitment for the purpose of determining such Lender’s Available Commitment pursuant to Section 2.11(a), the aggregate
principal amount of Swingline Loans then outstanding shall be deemed to be zero.

 

“Bankruptcy Event” means,
with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation
of its business appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance
of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment; provided that a Bankruptcy
Event shall not result solely by virtue of any of the control of, an ownership interest in, or the acquisition of any ownership
interest in, such Person, or any direct or indirect parent entity thereof, by a Governmental Authority or instrumentality thereof,
provided, further, that such ownership interest does not result in or provide such Person with immunity from the jurisdiction of
courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person
(or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made
by such Person.

 

    3 

     

    

 

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

 

“Borrower” has the meaning
set forth in the preamble to this Agreement.

 

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

 

“Borrowing Request” means
a request by the Borrower for a Revolving 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 are authorized or required by law to
remain closed; provided that, when used in connection with a LIBOR 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.

 

“Capitalized Lease” means
any lease which is or should be capitalized on the balance sheet of the lessee in accordance with GAAP existing on the date hereof
and Topic 840 of the Financial Accounting Standards Board Accounting Standards Codification.

 

“Capitalized Lease Obligations”
means the amount of the liability reflecting the aggregate discounted amount of future payments under all Capitalized Leases calculated
in accordance with GAAP existing on the date hereof and Topic 840 of the Financial Accounting Standards Board Accounting Standards
Codification.

 

“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, for purposes of Section 2.14(b), by any lending office of such Lender or by such Lender’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. Notwithstanding anything herein to the contrary, (a) all requests, rules, guidelines,
requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or
any successor or similar authority) or by United States or foreign regulatory authorities, in each case pursuant to Basel III,
and (b) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives
thereunder or issued in connection therewith or in implementation thereof, shall in each case be deemed to be a Change in Law,
regardless of the date enacted, adopted, issued or implemented.

 

    4 

     

    

 

“Class”, when used in reference
to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Competitive
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 of such Lender to make Revolving Loans and to acquire participations in Swingline Loans
and Letters of Credit hereunder, expressed as an amount representing the maximum aggregate 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 10.04. The initial amount of each
Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such Lender shall
have assumed its Commitment, as applicable.

 

“Competitive Bid” means
an offer by a Lender to make a Competitive Loan in accordance with Section 2.04.

 

“Competitive Bid Rate”
means, with respect to any Competitive Bid, the Margin or the Fixed Rate, as applicable, offered by the Lender making such Competitive
Bid.

 

“Competitive Bid Request”
means a request by the Borrower for Competitive Bids in accordance with Section 2.04.

 

“Competitive Loan” means
a Loan made pursuant to Section 2.04.

 

“Compliance Certificate”
has the meaning assigned to that term in Section 6.01(b)(i) hereof.

 

“Consolidated Cash Flow”
of the Borrower and the Subsidiaries for any period (the “Determination Period”) means the sum of (i) Consolidated
Net Income for the Determination Period, plus (ii) all amounts deducted in the determination of such Consolidated Net Income in
respect of (a) depreciation and amortization (including without limitation amortization of assets held under Capitalized Leases)
excluding amortization relating to prepublication costs, (b) Consolidated Interest Expense, (c) provisions for taxes based on or
measured by income, (d) non-recurring non-cash losses or charges and (e) charges in respect of Settlement Costs and minus (iii)
all amounts added in the determination of such Consolidated Net Income in respect of non-recurring non-cash gains; provided,
however, that (1) when and to the extent that non-cash losses or charges described in clause (ii)(d) above become cash paid items,
such amounts shall be deducted from Consolidated Cash Flow for the period when paid and (2) when and to the extent that non-cash
gains described in clause (iii) above become cash received items, such amounts shall be added to Consolidated Cash Flow for the
period when received; provided, further, that (A) if during the Determination Period the Borrower disposes of any asset and such
disposition constitutes a Material Disposition, the sum of (x) the net income (loss) produced by such asset, before extraordinary
items, during the portion of the Determination Period prior to the date on which such asset was disposed of, plus (y) all amounts
deducted in determining such net income (loss) for such period in respect of depreciation and amortization (including without limitation
amortization of assets held under Capitalized Leases),

 

    5 

     

    

 

interest
on Indebtedness, and provisions for taxes based on or measured by income shall be excluded on a pro forma adjusted and consolidated
basis in Consolidated Cash Flow for the Determination Period (to the extent they would otherwise have been included thereto),
and (B) if during the Determination Period the Borrower makes an investment in any asset and such investment constitutes a Material
Investment, the sum of (x) the net income (loss) produced by such asset, before extraordinary items, during the portion of the
Determination Period prior to the date on which such investment in such asset was made, plus (y) all amounts deducted in determining
such net income (loss) for such period in respect of depreciation and amortization (including, without limitation, amortization
of assets held under Capitalized Leases), interest on Indebtedness, and provisions for taxes based on or measured by income shall
be included on a pro forma adjusted and consolidated basis in Consolidated Cash Flow for the Determination Period (to the extent
they would have otherwise been excluded therefrom). As used in this definition, “Material Disposition” means
any disposition of assets or series of related dispositions of assets that yields gross proceeds to the Borrower or any of its
Subsidiaries in excess of $100,000,000, provided that such proceeds, together with the proceeds received by the Borrower
or such Subsidiary in any other such disposition of assets that yields gross proceeds to the Borrower or such Subsidiary in excess
of $100,000,000 during the Determination Period, exceeds $200,000,000; and “Material Investment” means any
acquisition of assets or series of related acquisitions of assets by the Borrower or any of its Subsidiaries that (a) constitutes
assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common
stock of a Person and (b) involves the payment of consideration by the Borrower or such Subsidiary in excess of $100,000,000,
provided that such consideration, together with the consideration paid in any other such acquisitions of assets that involves
the payment of consideration by the Borrower or such Subsidiary in excess of $100,000,000 during the Determination Period, exceeds
$200,000,000.

 

“Consolidated Interest Expense”
means, for any period, the interest expense of the Borrower and its Subsidiaries determined on a consolidated basis in conformity
with GAAP existing on the date hereof including, without limitation, (i) the amortization of debt discount, (ii) the amortization
of all fees payable in connection with the incurrence of Indebtedness to the extent included in interest expense and (iii) the
portion of any obligation with respect to a Capitalized Lease allocable to interest expense.

 

“Consolidated Net Income”
for any period means the net income (or loss) of the Borrower and its Subsidiaries for such period before extraordinary items,
determined in accordance with GAAP existing on the date hereof on a consolidated basis, after eliminating all intercompany items,
provided that there shall be excluded (i) income (or loss) of any Person (other than a consolidated Subsidiary of such Person)
in which any other Person (other than such Person or any of its consolidated Subsidiaries) has a joint interest, except to the
extent of the amount of dividends or other distributions actually paid to such Person or any of its consolidated Subsidiaries by
such other Person during such Period, (ii) except for purposes of Consolidated Cash Flow to the extent provided in clause (B) of
the definition thereof, the income (or loss) of any Person accrued prior to the date it becomes a consolidated Subsidiary of such
Person or is merged into or consolidated with such Person or any of its consolidated Subsidiaries, (iii) the income of any consolidated
Subsidiary of such Person to the extent that the declaration or payment of dividends or similar distributions by that consolidated
Subsidiary of the income is not at the time permitted, (iv) any after-tax gains (but not pre-tax losses) attributable to sales
of

 

    6 

     

    

 

assets
out of the ordinary course of business and any after-tax gains on pension reversions received by such Person and its consolidated
Subsidiaries and (v) any income (or loss) attributable to any lease of property (whether real, personal or mixed) under which
the Borrower or any of its Subsidiaries is the lessor; provided, however, there shall be excluded from any calculation
pursuant to any of clauses (ii)-(iv) any income or loss attributable to assets purchased or sold, as the case may be, having an
individual or aggregate (for any consecutive twelve month period) fair market value of less than $50,000,000.

 

“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.

 

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

 

“CRISIL Limited” means
CRISIL Limited, a company organized under the laws of India, and each of its Subsidiaries.

 

“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.

 

“Defaulting Lender” means
any Lender that (a) has failed, within three Business Days of the date required to be funded or paid, to (i) fund any portion of
its Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii) pay over to any Credit
Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative
Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to
funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower
or any Credit Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with
any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based
on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular
default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits
to extend credit, (c) has failed, within three Business Days after request by the Administrative Agent, the Issuing Lender or the
Swingline Lender, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it
will comply with its obligations (and is financially able to meet such obligations) to fund prospective Loans and participations
in Letters of Credit and Swingline Loans under this Agreement, provided that such Lender shall cease to be a Defaulting Lender
pursuant to this clause (c) upon such Person’s receipt of such certification in form and substance satisfactory to it and
the Administrative Agent, or (d) has become the subject of a Bankruptcy Event.

 

“Determination Date” means,
as used in connection with any certificate, report or calculation delivered hereunder, the date (which shall be specified in such
certificate, report or calculation) as of which the determinations set forth in such certificate, report or calculation are made.

 

    7 

     

    

 

“Documentation Agents”
has the meaning set forth in the preamble to this Agreement.

 

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

 

“Effective Date” means
the date on which the conditions specified in Section 5.01 are satisfied (or waived in accordance with Section 10.02).

 

“Environmental Laws” means
federal, state, local and foreign laws or regulations, codes, orders, decrees, judgments or injunctions issued, promulgated, approved
or entered thereunder relating to pollution or protection of the environment, including, without limitation, laws relating to emissions,
discharges, releases or threatened releases of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances
or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface
strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

 

“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 is under common control with the Borrower within the meaning of Section
4001(a)(14) of ERISA or that, together with the Borrower, is treated as a single employer under Section 414(b), (c), (m) or (o)
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 a non-exempt
Prohibited Transaction; (c) any failure by any Pension Plan to satisfy the minimum funding standards (within the meaning of Sections
412 or 430 of the Code or Section 302 of ERISA) applicable to such Pension Plan, whether or not waived; (d) the filing pursuant
to Section 412 of the Code or Section 302 of ERISA of an application for a waiver of the minimum funding standard with respect
to any Pension Plan or the failure by the Borrower or any of its ERISA Affiliates to make any required contribution to a Multiemployer
Plan; (e) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Pension Plan, including but not limited to the imposition of any Lien in favor of the PBGC or any Pension
Plan; (f) a determination that any Pension Plan is, or is reasonably expected to be, in “at risk” status (within the
meaning of Section 430 of the Code or Section 303 of ERISA); (g) the receipt by the Borrower or any of its ERISA Affiliates from
the PBGC or a plan administrator of any notice relating to an intention to terminate any Pension Plan or to appoint a trustee to
administer any Pension Plan under Section 4042 of ERISA; (h) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Pension Plan or Multiemployer Plan; or (i) the receipt

 

    8 

     

    

 

by
the Borrower or any of its ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from the Borrower or any of
its ERISA Affiliates 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 endangered or critical status (within the meaning of Section 432 of the Code or
Section 305 or Title IV of ERISA) or in critical and declining status (within the meaning of Section 305 of ERISA) or that the
PBGC has issued a partition order under Section 4233 of ERISA with respect to the Multiemployer Plan.

 

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

 

“Exchange Act” means the
Securities Exchange Act of 1934, as from time to time amended, and any successor statutes.

 

“Excluded Taxes” means,
with respect to the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income (including branch profits taxes)
by a jurisdiction as a result of a present or former connection between such recipient and the jurisdiction imposing such tax (other
than any such connection arising solely from the execution and delivery of this Agreement, the performance of the rights and obligations
herein, the receipt of any payment hereunder or the enforcement of this Agreement), (b) in the case of a Foreign Lender (other
than an assignee pursuant to a request by the Borrower under Section 2.18(b)), any U.S. withholding tax resulting from any law
in effect on the date such Foreign Lender becomes a party to this Agreement or at the time such Lender changes its applicable lending
office, except to the extent that such Foreign Lender’s assignor (if any) or such Foreign Lender, in the case of a Lender
that changes its applicable lending office, was entitled, at the time of assignment or at the time of the change in applicable
lending office, to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 2.16(a),
(c) Taxes attributable to a Lender’s (or a recipient’s) failure to comply with Section 2.16(f) or (h) and (d) Taxes
imposed pursuant to FATCA.

 

“Existing Facility” means
the existing $1,000,000,000.00 syndicated four-year credit facility under the Four-Year Credit Agreement, dated as of June 19,
2013, as amended, among the Borrower, the lenders parties thereto and JPMorgan Chase Bank, as administrative agent.

 

“FATCA” means Sections
1471 through 1474 of the Code, as of the date hereof (or any amended or successor version), any current or future regulations or
official interpretations thereof, any agreements entered into pursuant to Section 1471(b) of the Code, any intergovernmental agreement
with respect thereto and any law, regulation, rule, promulgation or official agreement implementing an intergovernmental agreement
with respect to the foregoing.

 

“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

 

    9 

     

    

 

by
the Administrative Agent from three Federal funds brokers of recognized standing selected by it; provided, that if the
Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Fee Payment Date” means
(a) the third Business Day following the last day of each March, June, September and December and (b) the day upon which the Commitments
terminate.

 

“Fiscal Quarter” means
a quarterly period beginning on the first day of January, April, July and October in each Fiscal Year.

 

“Fiscal Year” means an
annual period beginning on January 1 in each year and ending on December 31 of such year.

 

“Fixed Rate” means, with
respect to any Competitive Loan (other than a LIBOR Competitive Loan), the fixed rate of interest per annum specified by the Lender
making such Competitive Loan in its related Competitive Bid.

 

“Fixed Rate Loan” means
a Competitive Loan bearing interest at a Fixed Rate.

 

“Foreign Benefit Arrangement”
means any employee benefit arrangement mandated by non-U.S. law that is maintained or contributed to by the Borrower or any ERISA
Affiliate.

 

“Foreign Lender” means
any Lender that is not a “United States Person” as defined by Section 7701(a)(30) of the Code.

 

“Foreign Plan” means each
employee benefit plan (within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA) that is not subject to U.S.
law and is maintained or contributed to by the Borrower or any ERISA Affiliate.

 

“GAAP” means generally
accepted accounting principles in the United States of America in effect from time to time except as specifically noted.

 

“Governmental Authority”
means the government of the United States of America, any other nation or any political subdivision thereof, whether state 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” means, with
respect to any Person, (i) any guarantee, reimbursement agreement or similar contingent obligation made by such Person in respect
of any Indebtedness of any other Person, (ii) any other arrangement whereby credit is extended to any other Person on the basis
of any promise or undertaking of such Person, (a) to pay the Indebtedness of such other Person, (b) to purchase an obligation owed
by such other Person, (c) to purchase or lease assets under circumstances that would enable such other Person to discharge such
credit of its obligations or (d) to maintain the capital, working capital, solvency or general financial condition of such other
Person, in each case whether or not such arrangement is disclosed in the balance

 

    10 

     

    

 

sheet
of such other Person or is referred to in a footnote thereto, and (iii) any liability (other than Indebtedness which is recourse
to a Subsidiary of the Borrower, the only asset of which is its interest in the partnership of which the Subsidiary is the general
partner, and which Indebtedness is non-recourse to the Borrower) as a general partner of a partnership in respect of Indebtedness
of such partnership; provided, however, that the term Guarantee shall not include (1) endorsements for collection
or deposit in the ordinary course of business or (2) obligations of the Borrower and its Subsidiaries which would constitute Guarantees
solely by virtue of the continuing liability of any such Person which has sold assets subject to liabilities for liabilities which
were assumed by another Person acquiring the assets which were sold, unless such liability is required to be carried on the balance
sheet of the Borrower and its Subsidiaries in accordance with GAAP. The amount of any Guarantee and the amount of Indebtedness
resulting from such Guarantee shall be the amount which would have to be carried on the balance sheet of the guarantor in respect
of such Guarantee in accordance with GAAP.

 

“Guaranteed Obligations”
has the meaning set forth in Section 11.01.

 

“Indebtedness” means, with
respect to any Person, all obligations, for the repayment of borrowed money, which in accordance with GAAP in effect on the date
hereof should be classified upon such Person’s balance sheet as liabilities, but in any event including (i) liabilities for
the repayment of borrowed money to the extent secured by any Lien existing on property owned or acquired by such Person or a Subsidiary
thereof, whether or not the liability secured thereby shall have been assumed by such Person, (ii) all Guarantees of such Person
for the repayment of borrowed money and (iii) all Unpaid Settlement Costs.

 

“Indebtedness to Cash Flow Ratio”
means the ratio of (i) Indebtedness of the Borrower at the Determination Date to (ii) the Consolidated Cash Flow for the four consecutive
Fiscal Quarters ending on the Determination Date.

 

“Indemnified Taxes” means
Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan
Party under this Agreement.

 

“Independent Public Accountant”
means any of the firms of public accountants (or their survivors in any merger therewith) currently referred to as the “Big
Four” or any other firm of public accountants of nationally recognized stature which is (i) independent (as such term is
defined in the rules and regulations promulgated by the Securities and Exchange Commission under the Exchange Act) from the Person
the financial statements of which are being reported on, (ii) selected by such Person and (iii) reasonably acceptable to the Required
Lenders.

 

“Interest Election Request”
means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.07.

 

“Index Joint Venture” means
the joint venture among the Borrower, CME Group Inc. and CME Group Index Services LLC pursuant to that certain Contribution Agreement,
dated as of November 4, 2011.

 

“Interest Payment Date”
means (a) with respect to any ABR Loan, the last day of each March, June, September and December, (b) with respect to any LIBOR
Loan, the last day

 

    11 

     

    

 

of
the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a LIBOR Borrowing with an Interest
Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period, (c) with respect to any Fixed Rate 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 Fixed Rate Borrowing
with an Interest Period of more than 90 days’ duration (unless otherwise specified in the applicable Competitive Bid Request),
each day prior to the last day of such Interest Period that occurs at intervals of 90 days’ duration after the first day
of such Interest Period, and any other dates that are specified in the applicable Competitive Bid Request as Interest Payment
Dates with respect to such Borrowing and (d) with respect to any Swingline Loan, the day that such Loan is, or is required to
be, repaid.

 

“Interest Period” means
(a) with respect to any LIBOR 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, twelve months) thereafter,
as the Borrower may elect, (b) with respect to any Fixed Rate Borrowing, the period (which shall not be less than 7 days or more
than 360 days) commencing on the date of such Borrowing and ending on the date specified in the applicable Competitive Bid Request;
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, in the case of a LIBOR Borrowing only, 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, (ii) any Interest
Period pertaining to a LIBOR Borrowing 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 and (iii) no Interest Period shall extend beyond the Maturity Date. For purposes hereof,
the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing,
thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.

 

“ISP” means, with respect
to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking
Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

 

“Issuing Lender” means
each of (i) JPMorgan Chase Bank, (ii) Bank of America, N.A. and (iii) any other Lender approved by the Administrative Agent (such
approval not to be unreasonably withheld, conditioned or delayed) and the Borrower that has agreed in its sole discretion to act
as an “Issuing Lender” hereunder, or any of their respective affiliates of any of the foregoing, in each case in its
capacity as issuer of any Letter of Credit and with respect to all or a portion of the L/C Commitment as reflected in such Issuing
Lender’s L/C Sublimit. Each reference herein to “the Issuing Lender” shall be deemed to be a reference to the
relevant Issuing Lender.

 

“JPMorgan Chase Bank” means
JPMorgan Chase Bank, N.A.

 

“L/C Commitment” means
$50,000,000.00.

 

    12 

     

    

 

“L/C Exposure” means, at
any time, the total L/C Obligations. The L/C Exposure of any Lender at any time shall be its Applicable Percentage of the total
L/C Exposure at such time.

 

“L/C Obligations” means,
at any time, an amount equal to the sum of (a) the aggregate then undrawn and unexpired amount of the then outstanding Letters
of Credit and (b) the aggregate amount of drawings under Letters of Credit that have not then been reimbursed pursuant to Section
3.05. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount
may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding”
in the amount so remaining available to be drawn.

 

“L/C Participants” means
the collective reference to all the Lenders other than the Issuing Lender with respect to the relevant Letter of Credit.

 

“L/C Sublimit” means (i)
for each of JPMorgan Chase Bank and Bank of America, N.A., each separately in its capacity as Issuing Lender, $25,000,000.00 and
(ii) for any other Lender that becomes an Issuing Lender after the date hereof, such amount as may be separately agreed in writing
between the Borrower and such Issuing Lender.

 

“Lenders” means the Persons
listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Acceptance, other
than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance. Unless the context otherwise requires,
the term “Lenders” includes the Swingline Lender.

 

“Letters of Credit” has
the meaning set forth in Section 3.01.

 

“LIBO Rate” means, with
respect to any LIBOR Loan for any Interest Period, the London interbank offered rate as administered by the ICE Benchmark Administration
(or any other person which takes over the administration of that rate) for dollars for a period equal in length to such Interest
Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters Screen that displays such rate (or, in the event that such rate
does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on
the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative
Agent in its reasonable discretion; in each case, the “Screen Rate”) at approximately 11:00 a.m., London time,
two Business Days prior to the commencement of such Interest Period; provided, that if the Screen Rate shall be less than
zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided further, that if the Screen Rate
shall not be available at such time for such Interest Period (an “Impacted Interest Period”), then the LIBO
Rate shall be the Interpolated Rate. “Interpolated Rate” means the rate per annum determined by the Administrative
Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating
on a linear basis between: (a) the Screen Rate for the longest period for which the Screen Rate is available that is shorter than
the Impacted Interest Period and (b) the Screen Rate for the shortest period for which that Screen Rate is available that exceeds
the Impacted Interest Period, in each case, at such time; provided, that if any Interpolated Rate shall be less than zero,
such rate shall be deemed to be zero for purposes of this Agreement.

 

    13 

     

    

 

“LIBOR”, when used in reference
to any Loan or Borrowing, refers to whether such Loan is, or the Loans comprising such Borrowing are, bearing interest at a rate
determined by reference to the LIBO Rate.

 

“Lien” means any mortgage,
pledge, security interest, encumbrance, lien or charge of any kind (including, without limitation, any conditional sale or other
title retention agreement or lease in the nature thereof) or any sale of receivables with recourse against the seller.

 

“Loan Guarantors” means,
collectively, S&P and each other Subsidiary of the Borrower that has executed a Joinder Agreement substantially in the form
of Exhibit D and has not been released from the Loan Guaranty, and their successors and assigns.

 

“Loan Guaranty” means Article
XI of this Agreement.

 

“Loan Parties” means the
Borrower and the Loan Guarantors.

 

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

 

“Margin” means, with respect
to any Competitive Loan bearing interest at a rate based on the LIBO Rate, the marginal rate of interest, if any, to be added to
or subtracted from the LIBO Rate to determine the rate of interest applicable to such Loan, as specified by the Lender making such
Loan in its related Competitive Bid.

 

“Margin Stock” has the
meaning assigned to that term in Regulation U of the Board as in effect from time to time.

 

“Material Adverse Effect”
means a material adverse effect on the business, operations, properties, assets or financial condition of the Borrower and its
Subsidiaries, taken as a whole.

 

“Material Subsidiary” means
each Subsidiary of the Borrower that is a “significant subsidiary” as defined in Regulation § 230.405 promulgated
pursuant to the Securities Act, as such Regulation is in effect on the date hereof.

 

“Maturity Date” means June
30, 2020.

 

“MH Brand License Agreement”
has the meaning set forth in the Contribution Agreement referred to in the definition of “Index Joint Venture”.

 

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

 

“Notes” means the Revolving
Notes and the Swingline Note.

 

“Obligated Party” has the
meaning set forth in Section 11.02.

 

    14 

     

    

 

“Obligations” means all
unpaid principal of and accrued and unpaid 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, all accrued
and unpaid fees and all expenses, reimbursements, indemnities and other obligations (including Reimbursement Obligations) of the
Borrower to the Lenders or to any Lender, the Administrative Agent, any Issuing Lender or any indemnified party arising under this
Agreement or the Letters of Credit.

 

“Officer’s Certificate”
means, as applied to any Loan Party, a certificate executed on behalf of such Loan Party by its Chairman of the Board (if an officer),
its President, its Chief Financial Officer or its Treasurer.

 

“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 hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement, except
any such Taxes that are imposed with respect to an assignment as a result of a present or former connection between a Lender (or
other recipient of a payment) and the jurisdiction imposing such Tax (other than any such connection arising solely from the execution
and delivery of this Agreement, the performance of the rights and obligations herein, the receipt of any payment hereunder or the
enforcement of this Agreement).

 

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

 

“Participant” has the meaning
set forth in Section 10.04.

 

“Participant Register”
has the meaning set forth in Section 10.04.

 

“PBGC” means the Pension
Benefit Guaranty Corporation referred to and defined in Section 4002 of ERISA and any successor entity performing similar functions.

 

“Pension Plan” means any
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 Borrower 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.

 

“Permitted Liens” means:

 

(a)Liens for taxes, assessments or governmental
charges or levies (including any Lien imposed by ERISA arising out of an ERISA Event), either not yet delinquent or so long as
the amount, applicability or validity of the same is being contested in good faith provided that any proceedings commenced
for the foreclosure on such Liens have been duly suspended and adequate reserves, if any, have been established therefor in accordance
with GAAP;

 

(b)Statutory Liens of landlords and Liens
of carriers, warehousemen, mechanics, materialmen and other Liens imposed by law incurred in the ordinary course of business for
sums not delinquent for a period of more than 45 days or being contested in good faith, if such reserve or other appropriate provision,
if any, as shall be required by GAAP, shall have been made therefor;

 

    15 

     

    

 

(c)Liens incurred or deposits made in
the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social
security, or to secure the performance of tenders, statutory obligations, bids, leases, government contracts, performance and return-of-money
bonds and other similar obligations (exclusive of obligations for the payment of borrowed money);

 

(d)Any attachment or judgment Lien unless
the attachment or judgment it secures shall remain undischarged and execution thereof shall remain unstayed pending appeal for
a period of 60 days;

 

(e)Easements, rights-of-way, restrictions,
minor defects or irregularities in title and other similar charges or encumbrances not interfering in any material respect with
the ordinary conduct of the business of the Borrower or any of its Subsidiaries;

 

(f)Any interest or title of a lessor under
any lease;

 

(g)Liens arising from equipment leases
entered into in the ordinary course of business; and

 

(h)Liens in favor of the Index Joint Venture
granted pursuant to the Trademark Security Agreement as in effect on the date thereof to secure the obligations of the Loan Guarantor
under the MH Brand License Agreement.

 

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

 

“Plan” means any employee
benefit plan as defined in Section 3(3) of ERISA, including any employee welfare benefit plan (as defined in Section 3(1) of ERISA),
any employee pension benefit plan (as defined in Section 3(2) of ERISA), and any plan which is both an employee welfare benefit
plan and an employee pension benefit plan, and in respect of which the Borrower or any ERISA Affiliate is an “employer”
as defined in Section 3(5) of ERISA.

 

“Prime Rate” means the
rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank 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.

 

“Prohibited Transaction”
has the meaning assigned to such term in Section 406 of ERISA and Section 4975(c)(1) of the Code.

 

“Register” has the meaning
set forth in Section 10.04.

 

“Reimbursement Obligation”
means the obligation of the Borrower to reimburse the Issuing Lender pursuant to Section 3.05 for amounts drawn under Letters of
Credit.

 

    16 

     

    

 

“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 at least 51% of the sum of the total
Revolving Credit Exposures and unused Commitments at such time; provided that, for purposes of declaring the Loans to be
due and payable pursuant to Article VIII, and for all purposes after the Loans become due and payable pursuant to Article VIII
or the Commitments expire or terminate, the outstanding Competitive Loans of the Lenders shall be included in their respective
Revolving Credit Exposures in determining the Required Lenders.

 

“Requirement of Law” means,
as to any Person, any law, treaty, rule or regulation or determination of any arbitrator or a court or other Governmental Authority,
in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is
subject.

 

“Revolving Credit Exposure”
means, with respect to any Lender at any time, the sum of (a) the outstanding principal amount of such Lender’s Revolving
Loans at such time, (b) such Lender’s Swingline Exposure at such time and (c) such Lender’s L/C Exposure at such time.

 

“Revolving Loan” means
a Loan made pursuant to Section 2.03.

 

“Revolving Note” means
a promissory note executed and delivered pursuant to Section 2.09(e) evidencing the Revolving Loans made by a Lender.

 

“S&P” has the meaning
set forth in the preamble to this Agreement.

 

“Sanctions” means all economic
or financial sanctions or trade embargos imposed, administered or enforced from time to time by (a) the U.S. government, including
those administered by the Office of Foreign Assets Control of the U.S. Department of Treasury or the U.S. Department of State,
or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

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

 

“Sanctioned Person” means,
at any time, (a) any Person listed in any Sanctions- related list of designated Persons maintained by the Office of Foreign Assets
Control of the U.S. Department of Treasury, the U.S. Department of State or by the United Nations Security Council, the European
Union or Her Majesty’s Treasury of the United Kingdom, (b) any Person located, organized or resident in a Sanctioned Country
or (c) any Person owned 50% or more by any such Person or Persons described in the foregoing clause (a).

 

“Securities Act” means
the Securities Act of 1933, as from time to time amended, and any successor statutes.

 

    17 

     

    

 

“Settlement Costs” means
all costs and obligations incurred, owing, paid or payable by the Borrower or any Subsidiary in connection with the settlement
of any Specified Claim, including, without limitation, payment of restitution, damages (consequential, special, indirect, incidental,
punitive, compensatory, exemplary or otherwise), liabilities, costs, expenses, legal fees and expert fees, fines and penalties
of the Borrower or any Subsidiary related thereto.

 

“Specified Claim” means
any claim, complaint, lawsuit, action, administrative or regulatory proceeding, allegation, inquiry or investigation described
or referred to in the first, second and seventh paragraphs under the subheading “Legal & Regulatory Matters – S&P
Ratings” in Note 12 – Commitments and Contingencies in the financial statements included in the Borrower’s
Annual Report on Form 10-K, as filed with the Securities and Exchange Commission with respect to the Fiscal Year ended December
31, 2013, and under the subheadings “Legal & Regulatory Matters – S&P Ratings – U.S. Department of Justice
“, “Legal & Regulatory Matters – S&P Ratings – State Attorneys General” and “Legal
& Regulatory Matters – S&P Ratings – U.S. Securities and Exchange Commission” in Note 11 – Commitments
and Contingencies in the Borrower’s Quarterly Report on Form 10-Q for the Fiscal Quarter ended September 30, 2014, as
filed with the Securities and Exchange Commission, or that, as of January 22, 2015, has been the subject of a filed complaint by
or on behalf of any state government or state public entity of one of the states party to any of the foregoing matters on such
date, and based on the same facts and circumstances described or referred to therein.

 

“Statutory Reserve Rate”
means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the applicable Lender is subject for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

 

“Subsidiary” means, with
respect to any Person, 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.

 

“Swingline Commitment”
means the commitment of the Swingline Lender made in Section 2.05(a).

 

“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.

 

    18 

     

    

 

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

 

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

 

“Swingline Note” means
a promissory note executed and delivered pursuant to Section 2.09(e) evidencing the Swingline Loans made by the Swingline Lender.

 

“Syndication Agent” has
the meaning set forth in the preamble to this Agreement.

 

“Taxes” means any and all
present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

 

“Trademark Security Agreement”
means the Trademark Security Agreement entered into between the Loan Guarantor and the Index Joint Venture.

 

“Transactions” means the
execution, delivery and performance by each Loan Party of this Agreement (including by execution and delivery of a Joinder Agreement
substantially in the form of Exhibit D), any request for and the issuance of any Letter of Credit, and, in the case of the Borrower,
the borrowing of Loans and the use of the proceeds thereof.

 

“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 or, in the case of a Competitive Loan or Borrowing, the LIBO Rate or a Fixed
Rate.

 

“UCP” means, with respect
to any Letter of Credit, the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication
No. 600 (or such later version thereof as may be in effect at the time of issuance).

 

“Unpaid Settlement Costs”
means Settlement Costs that have not been paid.

 

“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 “LIBOR Loan”) or by Class and Type (e.g., a
“LIBOR Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”)
or by Type (e.g., a “LIBOR Borrowing”) or by Class and Type (e.g., a “LIBOR 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

 

    19 

     

    

 

“without
limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”.
Unless the context requires otherwise (b) 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), (c) any
reference herein to any Person shall be construed to include such Person’s successors and assigns, (d) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (f) the words “asset”
and “property” shall be construed to have the same meaning and 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. Except as otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP; 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 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.

 

Article
II

 

The Credits

 

Section
2.01.                   
Commitments. Subject to the terms and conditions set forth herein, each Lender severally agrees to make Revolving
Loans in dollars to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not
result in (b) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (c) the sum of the total
Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans exceeding the total Commitments.
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. 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. Each Competitive Loan shall be made in accordance
with the procedures set forth in Section 2.04. 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 and Competitive Bids of the Lenders are several
and no Lender shall be responsible for any other Lender’s failure to make Loans as required.

 

    20 

     

    

 

(b)              
Subject to Section 2.13, (i) each Revolving Borrowing shall be comprised entirely of ABR Loans or LIBOR Loans as the Borrower
may request in accordance herewith, and (ii) each Competitive Borrowing shall be comprised entirely of LIBOR Loans or Fixed Rate
Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be an ABR Loan. Each Lender at its option may
make any LIBOR 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 and shall not cause the Borrower to incur as of the date of the exercise of such option any greater liability than
it shall then have under Sections 2.14 and 2.16.

 

(c)               
At the commencement of each Interest Period for any LIBOR Revolving Borrowing, such Borrowing shall be in an aggregate amount
that is an integral multiple of $5,000,000 and not less than $10,000,000. At the time that each ABR Revolving Borrowing is made,
such Borrowing shall be in an aggregate amount that is an integral multiple of $5,000,000 and not less than $10,000,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments.
Each Competitive Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000.
Each Swingline Loan shall be in an amount that is an integral multiple of $1,000,000 and shall be in an aggregate minimum amount
of $1,000,000. Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at
any time be more than a total of 10 LIBOR Revolving Borrowings outstanding.

 

(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 (b) in the case of a LIBOR Borrowing, not later than 11:00 a.m., New York City time, three Business
Days before the date of the proposed Borrowing or (c) in the case of an ABR Borrowing, not later than 10:00 a.m., New York City
time, on the day 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 the requested Borrowing;

 

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

 

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

 

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

 

    21 

     

    

 

(v)              
the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the
requirements of Section 2.06.

 

If no election as to the Type of Revolving Borrowing is specified,
then the requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested
LIBOR Revolving Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s 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.                   
Competitive Bid Procedure. Subject to the terms and conditions set forth herein, from time to time during
the Availability Period the Borrower may request Competitive Bids and may (but shall not have any obligation to) accept Competitive
Bids and borrow Competitive Loans; provided that the sum of the total Revolving Credit Exposures plus the aggregate principal
amount of outstanding Competitive Loans at any time shall not exceed the total Commitments. To request Competitive Bids, the Borrower
shall notify the Administrative Agent of such request by telephone, in the case of a LIBOR Borrowing, not later than 11:00 a.m.,
New York City time, four Business Days before the date of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not
later than 10:00 a.m., New York City time, one Business Day before the date of the proposed Borrowing; provided that the
Borrower may submit up to (but not more than) three Competitive Bid Requests on the same day, but a Competitive Bid Request shall
not be made within five Business Days after the date of any previous Competitive Bid Request, unless any and all such previous
Competitive Bid Requests shall have been withdrawn or all Competitive Bids received in response thereto rejected. Each such telephonic
Competitive Bid Request shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Competitive
Bid Request in a form approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written Competitive
Bid Request shall specify the following information in compliance with Section 2.02:

 

(i)               
the aggregate amount of the requested Borrowing;

 

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

 

(iii)             
whether such Borrowing is to be a LIBOR Borrowing or a Fixed Rate Borrowing;

 

(iv)             
the Interest Period to be applicable to such Borrowing, which shall be a period contemplated by the definition of the term
“Interest Period”;

 

(v)              
the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the
requirements of Section 2.06; and

 

(vi)             
the maturity date of such Borrowing, which shall be a date between 7 and 360 days after the date of such Borrowing.

 

    22 

     

    

 

Promptly following receipt of a Competitive Bid Request in accordance
with this Section, the Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting the Lenders to
submit Competitive Bids.

 

(c)               
Each Lender may (but shall not have any obligation to) make one or more Competitive Bids to the Borrower in response to
a Competitive Bid Request. Each Competitive Bid by a Lender must be in a form approved by the Administrative Agent and must be
received by the Administrative Agent by telecopy, in the case of a LIBOR Competitive Borrowing, not later than 9:30 a.m., New York
City time, three Business Days before the proposed date of such Competitive Borrowing, and in the case of a Fixed Rate Borrowing,
not later than 9:30 a.m., New York City time, on the proposed date of such Competitive Borrowing. Competitive Bids that do not
conform substantially to the form approved by the Administrative Agent may be rejected by the Administrative Agent, and the Administrative
Agent shall notify the applicable Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal amount
(which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may equal the entire principal amount
of the Competitive Borrowing requested by the Borrower) of the Competitive Loan or Loans that the Lender is willing to make, (ii)
the Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan or Loans (expressed as a percentage rate per
annum in the form of a decimal to no more than four decimal places) and (iii) the Interest Period applicable to each such Loan
and the last day thereof.

 

(d)              
The Administrative Agent shall promptly notify the Borrower by telecopy of the Competitive Bid Rate and the principal amount
specified in each Competitive Bid and the identity of the Lender that shall have made such Competitive Bid.

 

(e)               
Subject only to the provisions of this paragraph, the Borrower may accept or reject any Competitive Bid. The Borrower shall
notify the Administrative Agent by telephone, confirmed by telecopy in a form approved by the Administrative Agent, whether and
to what extent it has decided to accept or reject each Competitive Bid, in the case of a LIBOR Competitive Borrowing, not later
than 10:30 a.m., New York City time, three Business Days before the date of the proposed Competitive Borrowing, and in the case
of a Fixed Rate Borrowing, not later than 10:30 a.m., New York City time, on the proposed date of the Competitive Borrowing; provided
that (i) the failure of the Borrower to give such notice shall be deemed to be a rejection of each Competitive Bid, (ii) the Borrower
shall not accept a Competitive Bid made at a particular Competitive Bid Rate for a particular Interest Period if the Borrower rejects
a Competitive Bid made at a lower Competitive Bid Rate for the same Interest Period, (iii) the aggregate amount of the Competitive
Bids accepted by the Borrower shall not exceed the aggregate amount of the requested Competitive Borrowing specified in the related
Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii) above, the Borrower may accept Competitive Bids
at the same Competitive Bid Rate in part, which acceptance, in the case of multiple Competitive Bids at such Competitive Bid Rate,
shall be made pro rata in accordance with the amount of each such Competitive Bid, and (v) except pursuant to clause (iv) above,
no Competitive Bid shall be accepted for a Competitive Loan unless such Competitive Loan is in a minimum principal amount of $5,000,000
and an integral multiple of $1,000,000; provided, further, that if a Competitive Loan must be in an amount less than
$5,000,000 because of the provisions of clause (iv) above, such Competitive Loan may be for a minimum of $1,000,000 or any integral
multiple thereof, and in calculating the pro rata

 

    23 

     

    

 

allocation
of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate pursuant to clause (iv) the amounts
shall be rounded to integral multiples of $1,000,000 in a manner determined by the Borrower. A notice given by the Borrower pursuant
to this paragraph shall be irrevocable.

 

(f)               
The Administrative Agent shall promptly notify each bidding Lender by telecopy whether or not its Competitive Bid has been
accepted (and, if so, the amount and Competitive Bid Rate so accepted), and each successful bidder will thereupon become bound,
subject to the terms and conditions hereof, to make the Competitive Loan in respect of which its Competitive Bid has been accepted.

 

(g)              
If the Administrative Agent shall elect to submit a Competitive Bid in its capacity as a Lender, it shall submit such Competitive
Bid directly to the Borrower at least one quarter of an hour earlier than the time by which the other Lenders are required to submit
their Competitive Bids to the Administrative Agent pursuant to paragraph (b) of this Section.

 

Section
2.05.                   
Swingline Loans. 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 an aggregate principal amount at any time
outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $100,000,000, (ii)
the aggregate principal amount of Swingline Loans, together with the Revolving Credit Exposure of the Swingline Lender (determined
for this purpose without duplication of any Swingline Exposure), exceeding the Swingline Lender’s Commitment or (iii) the
sum of the total Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans exceeding the
total 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 12:00 noon, New York City time, on the day of a proposed Swingline Loan. Each such notice shall be
irrevocable and shall specify the requested date (which shall be a Business Day) 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 by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.

 

(c)               
The Swingline Lender may, by written notice given to the Administrative Agent not later than 10:00 a.m., New York 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 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

 

    24 

     

    

 

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 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 2.06 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 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. 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
2.06.                   
Funding of Borrowings. 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 12:00 noon, 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 2.05. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received,
in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City and designated by the Borrower
in the applicable Borrowing Request or Competitive Bid Request.

 

(b)              
Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing (in
the case of a LIBOR Borrowing) or the proposed time of any Borrowing (in the case of an ABR 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 (i)
in the case of such Lender, the Federal Funds Effective Rate or (ii) in the case of the Borrower, the interest rate applicable
to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s
Loan included in such Borrowing.

 

    25 

     

    

 

Section
2.07.                   
Interest Elections. Each Revolving Borrowing initially shall be of the Type specified in the applicable Borrowing
Request and, in the case of a LIBOR Revolving 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 LIBOR Revolving 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 Borrowing. This Section shall not apply to Competitive
Borrowings or 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:

 

(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 or a LIBOR Borrowing; and

 

(iv)            
if the resulting Borrowing is a LIBOR 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 LIBOR 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.

 

(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.

 

    26 

     

    

 

(e)               
If the Borrower fails to deliver a timely Interest Election Request with respect to a LIBOR Revolving 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 an ABR Borrowing. Notwithstanding any contrary provision hereof, (a) 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 Revolving Borrowing may be converted to or
continued as a LIBOR Borrowing and (ii) unless repaid, each LIBOR Revolving Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto and (b) no Revolving Loan may be converted into or continued as a LIBOR Borrowing
after the date that is one month prior to the Maturity Date.

 

Section
2.08.                   
Termination and Reduction of Commitments. Unless previously terminated, the Commitments shall terminate on
the Maturity Date.

 

(b)              
The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that, (i) each reduction
of the Commitments shall be in minimum aggregate amounts of $10,000,000 (unless the total Commitment at such time is less than
$10,000,000, in which case, in an amount equal to the total Commitment at such time) and, if such reduction is greater than $10,000,000,
in integral multiples of $5,000,000 in excess of such amount (unless the total Commitment is being terminated) and (ii) the Borrower
shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with
Section 2.10, the sum of the Revolving Credit Exposures plus the aggregate principal amount of outstanding Competitive Loans would
exceed the total 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 three 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 by the Borrower (by notice to the Administrative Agent on
or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall
be permanent. Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments.

 

Section
2.09.                   
Repayment of Loans; Evidence of Debt. 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 on the Maturity Date, (ii) to the
Administrative Agent for the account of each Lender with an outstanding Competitive Loan the then unpaid principal amount of such
Competitive Loan on the last day of the Interest Period applicable to such Loan and (iii) to the Swingline Lender the then unpaid
principal amount of each Swingline Loan on the earlier of the Maturity Date and the first date after such Swingline Loan is made
that is the 15th or last day of a calendar month and is at least 5 Business Days after such Swingline Loan is made.

 

    27 

     

    

 

(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. If there is a conflict in entries made in the accounts maintained pursuant
to paragraph (b) or (c) of this Section, the entries made in the accounts maintained by the Administrative Agent shall be such
prima facie evidence of the existence and amounts of the obligations.

 

(e)               
Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrower shall prepare,
execute and deliver to such Lender a promissory note 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.

 

Section
2.10.                   
Prepayment of Loans. 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 prior notice in accordance with paragraph (b) of this Section; provided that the Borrower shall
not have the right to prepay any Competitive Loan without the prior consent of the Lender thereof.

 

(b)              
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 LIBOR Revolving Borrowing,
not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment
of an ABR Revolving Borrowing, not later than 11:00 a.m., 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 and 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 2.08, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance
with Section 2.08. Promptly following receipt of any such notice relating to a Revolving Borrowing, the Administrative Agent shall
advise the Lenders of the contents

 

    28 

     

    

 

thereof.
Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of
a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving 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 2.12 and shall be subject to Section 2.15.

 

Section
2.11.                   
Fees. The Borrower agrees to pay to the Administrative Agent, for the account of each Lender, a commitment
fee, which shall accrue at the Applicable Rate on the daily amount of the Available Commitment of such Lender during the period
from and including the Effective Date to the last day of the Availability Period. Accrued commitment fees shall be payable in arrears
on each Fee Payment Date, commencing on the first such date to occur after the date hereof. All commitment 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 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.

 

(c)               
All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent for
distribution, in the case of commitment fees, to the Lenders. Fees paid shall not be refundable under any circumstances.

 

Section
2.12.                   
Interest. The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear interest at a
rate per annum equal to the Alternate Base Rate plus the Applicable ABR Spread then in effect for such Borrowing.

 

(b)              
The Loans comprising each LIBOR Borrowing shall bear interest at a rate per annum equal to (i) in the case of a LIBOR Revolving
Loan, the LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable LIBOR Spread then in effect for such
Borrowing, or (ii) in the case of a LIBOR Competitive Loan, the LIBO Rate for the Interest Period in effect for such Borrowing
plus (or minus, as applicable) the Margin applicable to such Loan.

 

(c)               
Each Fixed Rate Loan shall bear interest at a rate per annum equal to the Fixed Rate applicable to such Loan.

 

(d)              
Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount (including Reimbursement
Obligations) 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 above or (ii) in the case of any other amount
(including Reimbursement Obligations), 2% plus the rate applicable to ABR Loans as provided above.

 

(e)               
Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan; 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

 

    29 

     

    

 

Loan
(other than a prepayment of an ABR 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, (iii) in the event of any conversion of
any LIBOR Revolving 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 and (iv) all accrued interest shall be payable upon termination of the Commitments.

 

(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 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.

 

Section
2.13.                   
Alternate Rate of Interest. If prior to the commencement of any Interest Period for a LIBOR Borrowing:

 

(a)               
the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable
means (including, without limitation, by means of an Interpolated Rate) do not exist for ascertaining the LIBO Rate for such Interest
Period; or

 

(b)              
the Administrative Agent is advised by the Required Lenders (or, in the case of a LIBOR Competitive Loan, the Lender that
is required to make such Loan) that the LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such
Lenders (or Lender) of making or maintaining their Loans (or its Loan) 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 Revolving Borrowing to, or continuation of any Revolving Borrowing as, a LIBOR Borrowing shall
be ineffective, (ii) if any Borrowing Request requests a LIBOR Revolving Borrowing, such Borrowing shall be made as an ABR Borrowing
and (iii) any request by the Borrower for a LIBOR Competitive Borrowing shall be ineffective; provided that (A) if the circumstances
giving rise to such notice do not affect all the Lenders, then requests by the Borrower for LIBOR Competitive Borrowings may be
made to Lenders that are not affected thereby and (B) if the circumstances giving rise to such notice affect only one Type of Borrowings,
then the other Type of Borrowings shall be permitted.

 

Section
2.14.                   
Increased Costs. If any Change in Law shall:

 

(i)impose, modify or deem applicable any
reserve, special deposit, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement as is covered by Section 2.14(c));

 

    30 

     

    

 

(ii)subject any Lender to any Tax (other
than Indemnified Taxes and Excluded Taxes) on its assets or deposits; or

 

(iii)impose on any Lender or the London
interbank market any other condition affecting this Agreement or LIBOR Loans or Fixed Rate Loans made by such Lender therein (other
than Taxes);

 

and the result of any of the foregoing shall be to increase
the cost to such Lender of making or maintaining any LIBOR Loan or Fixed Rate Loan (or of maintaining its obligation to make any
such Loan) or issuing or participating in Letters of Credit, or to reduce the amount of any sum received or receivable by such
Lender hereunder (whether of principal, interest or otherwise), then the Borrower will, upon notice by such Lender, pay to such
Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered;
provided that such Lender is generally seeking compensation from similarly situated borrowers under similar credit facilities
(to the extent such Lender has the right under such similar credit facilities to do so) with respect to such Change in Law.

 

(b)              
If any Lender determines that any Change in Law regarding capital or liquidity requirements has or would have the effect
of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any,
as a consequence of this Agreement or the Loans made by such Lender or any Letter of Credit issued by it to a level below that
which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration
such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy or liquidity),
then from time to time the Borrower, upon notice by such Lender, will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction suffered to the extent allocable to this Agreement;
provided that such Lender is generally seeking compensation from similarly situated borrowers under similar credit facilities (to
the extent such Lender has the right under such similar credit facilities to do so) with respect to such Change in Law regarding
capital or liquidity requirements.

 

(c)               
The Borrower shall pay to each Lender at any time when such Lender is required to maintain reserves for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board), additional interest on the unpaid
principal amount of each LIBOR Loan of such Lender from the date of such requirement until such principal amount is paid in full
or such requirement ceases at the rate per annum equal to (i) the LIBO Rate for the relevant Interest Period multiplied by (ii)
the Statutory Reserve Rate for such Lender minus (iii) such LIBO Rate, payable upon notice by such Lender on each Interest Payment
Date for such LIBOR Loan.

 

(d)              
A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company,
as the case may be, as specified in paragraph (a), (b) or (c) of this Section shall be delivered to the Borrower 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.

 

    31 

     

    

 

(e)               
Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver
of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate
a Lender pursuant to this Section for any increased costs or reductions incurred more than six months prior to the date that such
Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’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.

 

(f)               
Notwithstanding the foregoing provisions of this Section, a Lender shall not be entitled to compensation pursuant to this
Section in respect of any Competitive Loan if the Change in Law that would otherwise entitle it to such compensation shall have
been publicly announced prior to submission of the Competitive Bid pursuant to which such Loan was made.

 

(g)              
For purposes of this Section 2.14, the term “Lender” includes the Issuing Lender and the Swingline Lender.

 

Section
2.15.                   
Break Funding Payments. In the event of (a) the payment of any principal of any LIBOR Loan or Fixed Rate Loan
other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion
of any LIBOR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue
or prepay any LIBOR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted
to be revocable under Section 2.10(b) and is revoked in accordance therewith), (d) the failure to borrow any Competitive Loan after
accepting the Competitive Bid to make such Loan, or (e) the assignment of any LIBOR Loan or Fixed Rate 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 2.18, then, in any such
event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event (excluding any loss
of anticipated profits). In the case of a LIBOR Loan, the loss to any Lender attributable to any such event shall be deemed to
include an amount determined by such Lender to be equal to the excess, if any, of (i) the amount of interest that such Lender would
pay for a deposit equal to the principal amount of such Loan for the period from the date of such payment, conversion, failure
or assignment to the last day of the then current Interest Period for such Loan (or, in the case of a failure to borrow, convert
or continue, the duration of the Interest Period that would have resulted from such borrowing, conversion or continuation) if the
interest rate payable on such deposit were equal to the LIBO Rate for such Interest Period, over (ii) the amount of interest that
such Lender would earn on such principal amount for such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an affiliate of such Lender) for dollar deposits from other banks in
the eurodollar market at the commencement of such period. 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 Borrower 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.

 

    32 

     

    

 

Section
2.16.                   
Taxes. Any and all payments by or on account of any obligation of any Loan Party hereunder to, or for the
account of, the Administrative Agent or any Lender or any recipient of any payment to be made by or on account of any obligation
of any Loan Party under this Agreement shall be made free and clear of and without withholdings or deductions for any Indemnified
Taxes or Other Taxes; provided that, if any Loan Party or other withholding agent shall be required to withhold or deduct
any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable by the Borrower or such Loan Guarantor, as applicable,
shall be increased as necessary so that after making all required withholdings and deductions (including any applicable to additional
sums payable under this Section), the Administrative Agent or such Lender receives an amount equal to the sum it would have received
had no such withholdings or deductions been made, (ii) such Loan Party shall make such withholdings or deductions and (iii) such
Loan Party shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

 

(b)              
In addition, the Loan Parties shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable
law.

 

(c)               
The Loan Parties shall indemnify the Administrative Agent, and each Lender, within 10 days after written demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on
or attributable to amounts payable under this Section) paid by the Administrative Agent or such Lender and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto.

 

(d)              
Each Lender shall indemnify the Administrative Agent, within 10 days after demand therefor, for the full amount of any Taxes
attributable to such Lender that are payable or paid by the Administrative Agent in connection with the Credit Agreement (but only
to the extent that the Borrower has not already indemnified the Administrative Agent for such Taxes and without limiting the obligation
of the Borrower to do so), and reasonable expenses arising therefrom or with respect thereto, whether or not such 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 any Lender by the Administrative Agent shall be conclusive absent manifest error.

 

(e)               
As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Loan Party to a Governmental Authority
pursuant to this Section 2.16, the such Loan Party 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.

 

(f)               
Any Lender that is entitled to an exemption from or reduction of any applicable withholding tax with respect to payments
under this Agreement shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the
Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable law, or otherwise
reasonably requested by the Borrower or the Administrative Agent, as will permit such payments to be made without withholding or
at a

 

    33 

     

    

 

reduced
rate of withholding. All reasonable out-of-pocket expenses incurred by such Lender in connection with the completion of such forms
or documentation (other than with respect to forms applicable to U.S. withholding tax) shall be borne by the Borrower. In addition,
any Lender, if requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable
law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent
to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Each Lender agrees
that if any form or certification it previously delivered pursuant to this Section 2.16 expires or becomes obsolete or inaccurate
in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent of its
inability to do so. Without limiting the generality of the foregoing, each Foreign Lender shall, to the extent it is legally entitled
to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient)
on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement or changes its lending office (and
from time to time thereafter upon the request of the Borrower or the Administrative Agent), whichever of the following is applicable:

 

(i)              
duly completed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E claiming eligibility for benefits of an income
tax treaty to which the United States of America is a party,

 

(ii)             
duly completed copies of Internal Revenue Service Form W-8ECI,

 

(iii)            
in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the
Code, (x) a certificate substantially in the form of Exhibit B to the effect (1) that such Foreign Lender is not (A) a “bank”
within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning
of Section 881(c)(3)(B) of the Code or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of
the Code and (2) that the interest payments in question are not effectively connected with the United States trade or business
conducted by such Lender (a “U.S. Tax Compliance Certificate”) and (y) duly completed copies of Internal Revenue
Service Form W-8BEN or W-8BEN-E,

 

(iv)            
to the extent a Foreign Lender is not the beneficial owner (for example, where the Foreign Lender is a partnership or participating
Lender granting a typical participation), an Internal Revenue Service Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN or W-8BEN-E,
U.S. Tax Compliance Certificate, Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided
that, if the Foreign Lender is a partnership (and not a participating Lender) and one or more beneficial owners of such Foreign
Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate on behalf
of each such beneficial owner, or

 

(v)              
any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding
tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower
to determine the withholding or deduction required to be made.

 

    34 

     

    

 

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

 

(g)              
If any Lender or the Administrative Agent determines, in its reasonable discretion, that it has received a refund attributable
to any Indemnified Taxes or Other Taxes paid by any Loan Party or for which such Lender or the Administrative Agent has received
payment from any Loan Party hereunder, such Lender or the Administrative Agent, within 30 days of such receipt, shall deliver to
the Borrower the amount of such refund (but only to the extent of indemnity payments made under this Section with respect to the
Indemnified Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of such Lender or the
Administrative Agent and without interest (other than any interest paid by the relevant Governmental Authority with respect to
such refund); provided however, that the relevant Loan Party, upon the request of such Lender or Administrative Agent,
agrees to repay the amount paid over pursuant to this Section 2.16(g) (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) to such Lender or the Administrative Agent in the event that such Lender or the Administrative
Agent is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph
(g), in no event will any Lender be required to pay any amount to the Borrower the payment of which would place such Lender or
the Administrative Agent in a less favorable net after-Tax position than such Lender or the Administrative Agent would have been
in if the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph shall not
be construed to require any Lender or the Administrative Agent to make available its Tax returns (or any other information relating
to its Taxes that it deems confidential) to the Borrower or any other Person.

 

(h)              
Each Lender that is a “United States person” as defined in Section 7701(a)(30) of the Code shall, on or prior
to the date on which such Lender becomes a Lender under this Agreement or changes its lending office (and from time to time thereafter
at the reasonable request of the Borrower or the Administrative Agent) to the extent it is legally entitled to do so, deliver to
the Borrower and the Administrative Agent two U.S. Internal Revenue Service Form W-9s (or substitute or successor form), properly
completed and duly executed, certifying that such Lender is exempt from the United States backup withholding.

 

(i)                
If a payment made to a Lender under this Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if
such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b)
or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times
prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent
to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations
under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this subsection (i), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.

 

    35 

     

    

 

(j)                
For purposes of this Section 2.16, the term “Lender” includes the Issuing Lender and the Swingline Lender.

 

Section
2.17.                   
Payments Generally; Pro Rata Treatment; Sharing of Set- offs. The Borrower shall make each payment required
to be made by it hereunder (whether of principal, interest, or fees, or under Section 2.14, 2.15 or 2.16, or otherwise) prior to
2:00 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 383 Madison Avenue, New York, New York, except payments to be made directly to the Swingline Lender as
expressly provided herein and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 10.03 shall be made directly to the
Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is
not a Business Day, the date for payment shall be extended to the next 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 hereunder 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, interest and fees then due hereunder, such funds shall be applied (i) first, to pay 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, to pay principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal
then due to such parties.

 

(c)               
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 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 the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders
severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender with interest
thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, atthe Federal Funds Effective Rate.

 

(d)              
If and for so long as any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(c), 2.06(b),
2.17(c) or 10.03(c), then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (i)
apply any amounts thereafter received by the Administrative Agent for the account of such Lender for the benefit of the Administrative
Agent, the Swingline Lender or the Issuing Lender to satisfy such Lender’s obligations to it under such Section until all
such unsatisfied obligations are fully paid,

 

    36 

     

    

 

and/or
(ii) hold any such amounts in a segregated account as cash collateral for, and application to, any future funding obligations
of such Lender under any such Section, in the case of each of clauses (i) and (ii) above, in any order as determined by the Administrative
Agent in its discretion (provided that any such amounts so held shall be returned to such Lender upon its payment of the aforementioned
previously unpaid amounts then due and owing).

 

Section
2.18.                   
Mitigation Obligations; Replacement of Lenders. If any Lender requests compensation under Section 2.14, 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 2.16, 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
2.14 or 2.16, 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 in any material respect 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 any Lender requests compensation under Section 2.14, 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 2.16, or if any Lender becomes a Defaulting
Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender andthe Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 10.04),
all its interests, rights and obligations under this Agreement (other than any outstanding Competitive Loans held by it) 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 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 (other than Competitive 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 2.14 or payments required to be made pursuant to Section 2.16, such assignment will result
in a 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 by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

 

Section
2.19.                   
Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes
a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(b)              
fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.11;

 

    37 

     

    

 

(c)               
the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether all
Lenders or the Required Lenders have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant
to Section 10.02), provided, that this clause (b) shall not apply in the case of an amendment, waiver or other modification
requiring the consent of such Defaulting Lender as “such Lender” or “each Lender affected thereby”, as
such terms are used in Sections 10.02(b)(i), (ii) or (iii);

 

(d)              
any amount payable to such Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and
including any amount that would otherwise be payable to such Defaulting Lender pursuant to Section 2.17 but excluding Section 2.18)
may, in lieu of being distributed to such Defaulting Lender, be applied by the Administrative Agent (i) first, to the payment of
any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, to the funding of any Loan in respect
of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement and (iii) third, to such Defaulting
Lender; provided that if such payment is (x) a prepayment of the principal amount of any Loans and (y) made at a time when the
conditions set forth in Section 5.02 are satisfied, such payment shall be applied solely to prepay the Loans of all non-Defaulting
Lenders pro rata prior to being applied to the prepayment of any Loans of any Defaulting Lender;

 

(e)               
if any Swingline Exposure or L/C Exposure exists at the time such Lender becomes a Defaulting Lender, then all or any part
of the Swingline Exposure and L/C Exposure of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance
with their respective Applicable Percentages, but only to the extent (i) the sum of all non- Defaulting Lenders’ Revolving
Credit Exposures plus such Defaulting Lender’s Swingline Exposure and L/C Exposure does not exceed the total of all non-Defaulting
Lenders’ Commitments and (ii) no Default shall have occurred and be continuing; provided, however, that if such reallocation
cannot, or can only partially, be effected, the Borrower shall, within one Business Day following notice by the Administrative
Agent, (x) first, prepay such Swingline Exposure and (y) second, cash collateralize for the benefit of the Issuing Lender only
the Borrower’s obligations corresponding to such Defaulting Lender’s L/C Exposure (after giving effect to any partial
reallocation pursuant to this clause (d)) in accordance with the procedures set forth in Article VIII for so long as such L/C Exposure
is outstanding;

 

(f)               
if the Borrower cash collateralizes any portion of such Defaulting Lender’s L/C Exposure pursuant to the proviso to
Section 2.19(d), the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 3.03(a) with
respect to such Defaulting Lender’s L/C Exposure during the period such Defaulting Lender’s L/C Exposure is cash collateralized.
If the L/C Exposure of the non-Defaulting Lenders is reallocated pursuant to Section 2.19(d), then the fees payable to the Lenders
pursuant to Section 2.11(a) and Section 3.03(a) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable
Percentages. If all or any portion of such Defaulting Lender’s L/C Exposure is neither reallocated nor cash collateralized
pursuant to Section 2.19(d), then, without prejudice to any rights or remedies of the Issuing Lender or any other Lender hereunder,
all fees payable under Section 3.03(a) with respect to such Defaulting Lender’s L/C Exposure shall be payable to the Issuing
Lender until and to the extent that such L/C Exposure is reallocated and/or cash collateralized; and

 

    38 

     

    

 

(g)              
so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and
the Issuing Lender shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related
exposure and the Defaulting Lender’s then-outstanding L/C Exposure will be 100% covered by the Commitments of the non-Defaulting
Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.19(d), and participating interests
in any newly made Swingline Loan or any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders
in a manner consistent with Section 2.19(d) (and such Defaulting Lender shall not participate therein).

 

If (i) a Bankruptcy Event with respect to
a Parent of any Lender shall occur following the date hereof and for so long as such event shall continue or (ii) the Swingline
Lender or the Issuing Lender has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more
other agreements in which such Lender commits to extend credit, the Swingline Lender shall not be required to fund any Swingline
Loan and the Issuing Lender shall not be required to issue, amend or increase any Letter of Credit, unless the Swingline Lender
or the Issuing Lender, as the case may be, (A) shall be satisfied that if such Lender were subsequently to become a Defaulting
Lender, the relevant exposure would be 100% covered by the Commitments of the non-Defaulting Lenders or cash collateralized, in
each case in a manner consistent with Section 2.19(d) or (B) shall have entered into other arrangements with the Borrower or such
Lender, satisfactory to the Swingline Lender or the Issuing Lender, as the case may be, to defease any risk to it in respect of
such Lender hereunder.

 

In the event that the Administrative Agent,
the Borrower, the Swingline Lender and the Issuing Lender each agrees that a Defaulting Lender has adequately remedied all matters
that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and L/C Exposure of the Lenders shall be readjusted
to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Revolving
Loans of the other Lenders as the Administrative shall determine may be necessary in order for such Lender to hold such Loans in
accordance with its Applicable Percentage.

 

Section
2.20.                   
Proceeds. The proceeds of the Loans made by the Lenders to the Borrower shall be used for acquisitions, repurchases
of capital stock of the Borrower, the funding of dividends payable to shareholders of the Borrower and for general corporate purposes
of the Borrower; provided, however, that after the application of the proceeds of any Loan, not more than 25% of
the value of the assets of the Borrower will be represented by Margin Stock. The proceeds of the Letters of Credit shall be used
for general corporate purposes of the Borrower.

 

Article
III

 

Letters of Credit

 

Section
3.01.                   
L/C Commitment.

 

(b)              
Subject to the terms and conditions hereof, the Issuing Lenders, in reliance on the agreements of the other Lenders set
forth in Section 3.04(a), agree to issue, amend, renew

 

    39 

     

    

 

or
extend letters of credit (“Letters of Credit”) for the account of the Borrower on any Business Day during the
Availability Period in such form as may be approved from time to time by the Issuing Lenders; provided that no Issuing
Lender shall have an obligation to issue, amend, renew or extend any Letter of Credit if, after giving effect thereto, (i) the
L/C Obligations would exceed the L/C Commitment, (ii) the L/C Obligations with respect to all Letters of Credit issued by such
Issuing Lender would exceed its L/C Sublimit or (iii) the aggregate amount of the Available Commitments would be less than zero.
Each Letter of Credit shall (i) be denominated in dollars and (ii) expire no later than the earlier of (x) the first anniversary
of its date of issuance and (y) the date that is five Business Days prior to the Maturity Date, provided that any Letter of Credit
with a one-year term may provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond
the date referred to in clause (y) above); provided further, that any such renewal must permit the Issuing Lender to prevent any
such renewal at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving
prior notice to the beneficiary thereof not later than a day in each such twelve-month period to be agreed upon at the time such
Letter of Credit is issued. From time to time and upon reasonable request therefor, the Issuing Lenders shall confirm to the Administrative
Agent the L/C Exposure and the Administrative Agent shall confirm to the Issuing Lenders the aggregate amount of Available Commitments.

 

(c)               
The Issuing Lenders shall not at any time be obligated to issue, amend, renew or extend any Letter of Credit if doing so
would conflict with, or cause the Issuing Lenders or any L/C Participant to exceed any limits imposed by, any applicable Requirement
of Law.

 

Section
3.02.                   
Procedure for Issuance of Letter of Credit. The Borrower may from time to time request that an Issuing Lender
issue, amend, renew (other than by automatic renewal) or extend a Letter of Credit by delivering to the applicable Issuing Lender
at its address for notices specified herein an Application therefor, completed to the reasonable satisfaction of the Issuing Lender,
and such other certificates, documents and other papers and information as the Issuing Lender may reasonably request. Upon receipt
of any Application, the Issuing Lender will process such Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary procedures and shall promptly issue, amend, renew or extend
(as applicable) the Letter of Credit requested thereby (but in no event shall the Issuing Lender be required to issue, amend, renew
or extend any Letter of Credit earlier than three Business Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to
the beneficiary thereof or as otherwise may be agreed to by the Issuing Lender and the Borrower. The Issuing Lender shall furnish
a copy of such Letter of Credit to the Borrower promptly following the issuance thereof. The Issuing Lender shall promptly furnish
to the Administrative Agent, which shall in turn promptly furnish to the Lenders, notice of the issuance of each Letter of Credit
(including the amount thereof).

 

Section
3.03.                   
Fees and Other Charges.

 

(b)              
The Borrower will pay a fee on the face amount of all outstanding Letters of Credit at a per annum rate equal to the Applicable
Rate then in effect with respect to LIBOR

 

    40 

     

    

 

Revolving
Loans, shared ratably among the Lenders and payable in arrears on each Fee Payment Date after the issuance date. In addition,
the Borrower shall pay to each Issuing Lender for its own account a fronting fee of 0.125% per annum on the undrawn and unexpired
amount of each Letter of Credit issued by such Issuing Lender, payable quarterly in arrears on each Fee Payment Date after the
issuance date.

 

(c)               
In addition (but without duplication) to the foregoing fees, the Borrower shall pay or reimburse each Issuing Lender for
such normal and customary costs and expenses as are incurred or charged by such Issuing Lender in issuing, negotiating, effecting
payment under, amending or otherwise administering any Letter of Credit.

 

Section
3.04.                   
L/C Participations.

 

(b)              
The Issuing Lenders irrevocably agree to grant and hereby grants to each L/C Participant, and, to induce the Issuing Lenders
to issue Letters of Credit, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from
the Issuing Lenders, on the terms and conditions set forth below, for such L/C Participant’s own account and risk an undivided
interest equal to such L/C Participant’s Applicable Percentage in each Issuing Lender’s obligations and rights under
and in respect of each Letter of Credit and the amount of each draft paid by the Issuing Lender thereunder. Each L/C Participant
agrees with the Issuing Lenders that, if a draft is paid under any Letter of Credit for which the Issuing Lender is not reimbursed
in full by the Borrower in accordance with the terms of this Agreement (or in the event that any reimbursement received by such
Issuing Lender shall be required to be returned by it at any time), such L/C Participant shall pay to the Issuing Lender upon demand
at the Issuing Lender’s address for notices specified herein an amount equal to such L/C Participant’s Applicable Percentage
of the amount that is not so reimbursed (or is so returned). Each L/C Participant’s obligation to pay such amount shall be
absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense
or other right that such L/C Participant may have against the Issuing Lenders, the Borrower or any other Person for any reason
whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions
specified in Article V, (iii) any adverse change in the condition (financial or otherwise) of the Borrower, (iv) any breach of
this Agreement by the Borrower, any other Loan Party or any other L/C Participant or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing

 

(c)               
If any amount required to be paid by any L/C Participant to an Issuing Lender pursuant to Section 3.04(a) in respect of
any unreimbursed portion of any payment made by such Issuing Lender under any Letter of Credit is paid to the Issuing Lender within
three Business Days after the date such payment is due, such L/C Participant shall pay to the Issuing Lender on demand an amount
equal to the product of (i) such amount, times (ii) the daily average Federal Funds Effective Rate during the period from and including
the date such payment is required to the date on which such payment is immediately available to the Issuing Lenders, times (iii)
a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360. If
any such amount required to be paid by any L/C Participant pursuant to Section 3.04(a) is not made available to the Issuing Lender
by such L/C Participant within three Business Days after the date such payment is due, the Issuing Lender

 

    41 

     

    

 

shall
be entitled to recover from such L/C Participant, on demand, such amount with interest thereon calculated from such due date at
the rate per annum applicable to ABR Loans. A certificate of the Issuing Lender submitted to any L/C Participant with respect
to any amounts owing under this Section shall be conclusive in the absence of manifest error.

 

(d)              
Whenever, at any time after an Issuing Lender has made payment under any Letter of Credit and has received from any L/C
Participant its pro rata share of such payment in accordance with Section 3.04(a), such Issuing Lender receives any payment related
to such Letter of Credit (whether directly from the Borrower or otherwise, including proceeds of collateral applied thereto by
such Issuing Lender), or any payment of interest on account thereof, such Issuing Lender will distribute to such L/C Participant
its pro rata share thereof; provided, however, that in the event that any such payment received by such Issuing Lender
shall be required to be returned by such Issuing Lender, such L/C Participant shall return to such Issuing Lender the portion thereof
previously distributed by such Issuing Lender to it.

 

Section
3.05.                   
Reimbursement Obligation of the Borrower. If any draft is paid under any Letter of Credit, the Borrower shall
reimburse the relevant Issuing Lender for the amount of (a) the draft so paid and (b) any taxes, fees, charges or other costs or
expenses incurred by such Issuing Lender in connection with such payment, not later than 12:00 Noon, New York City time, on (i)
the Business Day that the Borrower receives notice of such draft, if such notice is received on such day prior to 10:00 A.M., New
York City time, or (ii) if clause (i) above does not apply, the Business Day immediately following the day that the Borrower receives
such notice. Each such payment shall be made to such Issuing Lender at its address for notices referred to herein in dollars and
in immediately available funds. Interest shall be payable on any such amounts from the date on which the relevant draft is paid
until payment in full at the rate set forth in (x) until the Business Day next succeeding the date of the relevant notice, Section
2.12(a) and (y) thereafter, Section 2.12(d).

 

Section
3.06.                   
Obligations Absolute. The Borrower’s obligations under this Article III shall be absolute and unconditional
under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that the Borrower may have or
have had against the Issuing Lenders, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with
the Issuing Lenders that the Issuing Lenders shall not (absent a finding of gross negligence or willful misconduct by the Issuing
Lender as determined by a final and nonappealable decision of a court of competent jurisdiction) be responsible for, and the Borrower’s
Reimbursement Obligations under Section 3.05 shall not be affected by, among other things, the validity or genuineness of documents
or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute
between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may
be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.
The Issuing Lender shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of
any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a
final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct
of such Issuing Lender. The Borrower agrees that any action taken or omitted by the relevant Issuing Lender under or in connection
with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct,
shall be binding on the Borrower and shall not result in any liability of such Issuing Lender to the Borrower.

 

    42 

     

    

 

Section
3.07.                   
Letter of Credit Payments. If any draft shall be presented for payment under any Letter of Credit, the relevant
Issuing Lender shall promptly notify the Borrower of the date and amount thereof. The responsibility of the Issuing Lenders to
the Borrower in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation
expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered
under such Letter of Credit in connection with such presentment are substantially in conformity with such Letter of Credit.

 

Section
3.08.                   
Applications. To the extent that any provision of any Application related to any Letter of Credit is inconsistent
with the provisions of this Article III, the provisions of this Article III shall apply.

 

Section
3.09.                   
Applicability of ISP and UCP. Unless otherwise expressly agreed by the Issuing Lender and the Borrower (including
pursuant to the express terms hereof), the rules of the ISP shall apply to each standby Letter of Credit. Notwithstanding the foregoing,
the Issuing Lender shall not be responsible to the Borrower for, and the Issuing Lender’s rights and remedies against the
Borrower shall not be impaired by, any action or inaction of the Issuing Lender required under any law, order or practice that
is required to be applied to any Letter of Credit, including the law or any order of a jurisdiction where the Issuing Lender or
the beneficiary is located or the practice stated in the ISP or UCP, as applicable.

 

Article
IV

 

Representations and Warranties

 

The Borrower represents and warrants to the
Lenders that the following statements are true, correct and complete:

 

Section
4.01.                   
Organization, Powers and Good Standing. Each Loan Party is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization. Each Loan Party has all requisite power and authority (i) to own and operate
its properties and to carry on its business as now conducted and proposed to be conducted, except where the lack of power and authority
would not have a Material Adverse Effect and (ii) to enter into this Agreement and to carry out the transactions contemplated hereby,
and, in the case of the Borrower, to issue the Notes.

 

(b)              
Each Loan Party is in good standing wherever necessary to carry on its present business and operations, except in jurisdictions
in which the failure to be in good standing would not have a Material Adverse Effect.

 

(c)               
All of the Material Subsidiaries of the Borrower, as of the Effective Date, are identified in Schedule 4.01 annexed hereto.
Each Material Subsidiary of the Borrower is validly existing and in good standing under the laws of its respective jurisdiction
of organization and has all requisite power and authority to own and operate its properties and to carry on its business as now
conducted except where failure to be in good standing or a lack of power and authority would not have a Material Adverse Effect.

 

    43 

     

    

 

Section
4.02.                   
Authorization of Borrowing, etc. The execution, delivery and performance of this Agreement by each Loan Party
(including by execution and delivery of a Joinder Agreement substantially in the form of Exhibit D), and, in the case of the Borrower,
the issuance, delivery and payment of the Notes and the obtaining of extensions of credit hereunder, have been duly authorized
by all necessary action of such Loan Party.

 

(b)              
The execution, delivery and performance of this Agreement by each Loan Party (including by execution and delivery of a Joinder
Agreement substantially in the form of Exhibit D) and, in the case of the Borrower, the issuance, delivery and payment of the Notes,
the issuance of Letters of Credit and the borrowing of the Loans, do not and will not (i) violate any provision of law applicable
to the such Loan Party or any of its Material Subsidiaries, (ii) violate the certificate of organization or bylaws of such Loan
Party or any of its Material Subsidiaries, (iii) violate any order, judgment or decree of any court or other agency of government
binding on such Loan Party or any of its Material Subsidiaries, conflict with, result in a breach of or constitute (with due notice
or lapse of time or both) a default under any contractual obligation of such Loan Party or any of its Material Subsidiaries, result
in or require the creation or imposition of any Lien upon any of the material properties or assets of such Loan Party or any of
its Material Subsidiaries or require any approval of stockholders or any approval or consent of any Person under any contractual
obligation of such Loan Party or any of its Material Subsidiaries other than such approvals and consents which have been or will
be obtained on or before the Effective Date; except for any violation, conflict, default, breach, lien or lack of approval the
existence of which would not have a Material Adverse Effect.

 

(c)               
The execution, delivery and performance of this Agreement by each Loan Party (including by execution and delivery of a Joinder
Agreement substantially in the form of Exhibit D) and, in the case of the Borrower, the issuance, delivery and payment of the Notes,
the issuance of Letters of Credit and the borrowing of the Loans, will not require on the part of such Loan Party any registration
with, consent or approval of, or notice to, or other action to, with or by, any federal, state or other governmental authority
or regulatory body other than any such registration, consent, approval, notice or other action which has been duly made, given
or taken.

 

(d)              
This Agreement is, and each of the Notes when executed and delivered by the Borrower will be, a legally valid and binding
obligation of each Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights
generally or by equitable principles relating to enforceability.

 

Section
4.03.                   
Financial Condition. The Borrower has delivered to the Administrative Agent the following materials: (i) audited
consolidated financial statements of the Borrower and its Subsidiaries for the year ended December 31, 2014 and (ii) unaudited
consolidated financial statements of the Borrower and its Subsidiaries for the Fiscal Quarter ended March 31, 2015 (collectively,
the “Financial Statements”). All such Financial Statements were prepared in accordance with GAAP except for
the preparation of footnote disclosures for the unaudited statements. All such Financial Statements fairly present the consolidated
financial

 

    44 

     

    

 

position
of the Borrower and its Subsidiaries as at the respective dates thereof and the consolidated statements of income and changes
in financial position of the Borrower and its Subsidiaries for each of the periods covered thereby, subject, in the case of any
unaudited interim financial statements, to changes resulting from normal year-end adjustments.

 

Section
4.04.                   
No Adverse Material Change. Since December 31, 2014, there has been no change in the business, operations,
properties, assets or financial condition of the Borrower or any of its Subsidiaries, which has been, either in any case or in
the aggregate, materially adverse to the Borrower and its Subsidiaries taken as a whole.

 

Section
4.05.                   
Litigation. Except as disclosed in the Borrower’s Report on Form 10-K for the year ended December 31,
2014 and the Borrower’s Report on Form 10-Q for the Fiscal Quarter ended March 31, 2015 or in Schedule 4.05 to this Agreement,
there is no action, suit, proceeding, governmental investigation (including, without limitation, any of the foregoing relating
to laws, rules and regulations relating to the protection of the environment, health and safety) of which the Borrower has knowledge
or arbitration (whether or not purportedly on behalf of the Borrower or any of its Subsidiaries) at law or in equity or before
or by any Governmental Authority, domestic or foreign, pending or, to the knowledge of the Borrower, threatened against the Borrower
or any of its Subsidiaries or affecting any property of the Borrower or any of its Subsidiaries which (i) challenges the validity
of this Agreement or any Note or (ii) could reasonably be expected to have a Material Adverse Effect.

 

Section
4.06.                   
Payment of Taxes. Except to the extent permitted by Section 6.03 hereof, the Borrower has paid or caused to
be paid all taxes, assessments, fees and other governmental charges upon the Borrower and each of its Subsidiaries and upon their
respective properties, assets, income and franchises, except for any taxes the failure of which to pay would not have a Material
Adverse Effect (provided that no Tax Lien has been filed, and, to the knowledge of the Borrower, no claim is being asserted with
respect to any such Tax, fee or other charge) or which are not yet due and payable or which are being contested in good faith.
The Borrower does not know of any proposed tax assessment against the Borrower or such Subsidiary that would have a Material Adverse
Effect, which is not being contested in good faith by the Borrower or such Subsidiary; provided that such reserves or other
appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor.

 

Section
4.07.                   
Governmental Regulation. The Borrower is not an “investment company” or a company “controlled”
by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.

 

Section
4.08.                   
Securities Activities. The Borrower is not engaged principally, or as one of its important activities, in
the business of extending credit for the purpose of purchasing or carrying any Margin Stock.

 

Section
4.09.                   
ERISA. (a) Except as could not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect: (i) the Borrower and each of its ERISA Affiliates is in compliance with the applicable provisions of ERISA and
the provisions of the Code relating to Plans and the regulations and published interpretations thereunder; (ii) no ERISA Event
has occurred or is reasonably expected to occur; and (iii) all amounts required by

 

    45 

     

    

 

applicable
law with respect to, or by the terms of, any retiree welfare benefit arrangement maintained by the Borrower or any ERISA Affiliate
or to which the Borrower or any ERISA Affiliate has an obligation to contribute have been accrued in accordance with Topic 715-60
of the Financial Accounting Standards Board Accounting Standards Codification.

 

(b)              
Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect: (i) all employer and employee
contributions required by applicable law or by the terms of any Foreign Benefit Arrangement or Foreign Plan have been made, or,
if applicable, accrued in accordance with normal accounting practices; (ii) the accrued benefit obligations of each Foreign Plan
(based on those assumptions used to fund such Foreign Plan) with respect to all current and former participants do not exceed the
assets of such Foreign Plan; (iii) each Foreign Plan that is required to be registered has been registered and has been maintained
in good standing with applicable regulatory authorities; and (iv) each Foreign Benefit Arrangement and Foreign Plan is in compliance
(A) with all material provisions of applicable law and all material applicable regulations and published interpretations thereunder
with respect to such Foreign Benefit Arrangement or Foreign Plan and (B) with the terms of such arrangement or plan.

 

Section
4.10.                   
Disclosure. As of the Effective Date, none of the reports, financial statements, certificates or other information
furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this
Agreement or delivered hereunder (as modified or supplemented by other information so furnished) 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.

 

Section
4.11.                   
Anti-Corruption Laws and Sanctions. The Borrower has implemented and maintains in effect policies and procedures
reasonably designed to promote compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees
and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and, to the knowledge of the
Borrower, their respective directors, officers, employees and agents are in compliance with Anti-Corruption Laws and applicable
Sanctions in all material respects. None of the Borrower, any Subsidiary or, to the knowledge of the Borrower, any of their respective
directors, officers, employees or agents is a Sanctioned Person.

 

Article
V

 

Conditions

 

Section
5.01.                   
Effective Date. The obligations of the Lenders to make extensions 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 10.02):

 

(b)              
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 satisfactory to the Administrative Agent (which may include telecopy or
e-mail transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 

    46 

     

    

 

(c)               
The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the
Lenders and dated the Effective Date) of Lucy Fato, General Counsel to the Borrower, substantially in the form of Exhibit C, and
covering such other matters relating to the Loan Parties, this Agreement or the Transactions as the Required Lenders shall reasonably
request.

 

(d)              
The Administrative Agent shall have received such documents and certificates as the Administrative Agent, any Lender or
their counsel may reasonably request relating to the organization, existence and good standing of the Loan Parties, the authorization
of the Transactions and any other legal matters relating to the Loan Parties, this Agreement or the Transactions, all in form and
substance satisfactory to the Administrative Agent and its counsel.

 

(e)               
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 forth in paragraphs (a) and (b)
of Section 5.02.

 

(f)               
The Administrative Agent and the Lenders 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 reasonable and actual out-of-pocket expenses
required to be reimbursed or paid by the Borrower hereunder.

 

(g)              
The Administrative Agent shall have received evidence satisfactory to it that the Existing Facility has been terminated
and all amounts, if any, owing by the Borrower thereunder have been paid in full.

 

The Administrative Agent shall notify the Borrower and the Lenders
of the Effective Date, and such notice shall be conclusive and binding.

 

Section
5.02.                   
Each Credit Event. The obligation of each Lender to make any extension of credit hereunder is subject to the
satisfaction of the following conditions:

 

(b)              
The representations and warranties of the Borrower set forth in this Agreement (other than in Section 4.04 and Section 4.05(ii)
for any extension of credit made after the Effective Date) shall be true and correct in all material respects (or, if qualified
by materiality or Material Adverse Effect, in all respects) on and as of the date of such extension of credit, except to the extent
that such representations and warranties specifically relate to an earlier date, in which case they shall be true and correct in
all material respects (or, if qualified by materiality or Material Adverse Effect, in all respects) as of such earlier date.

 

(c)               
At the time of and immediately after giving effect to such extension of credit, no Default shall have occurred and be continuing.

 

    47 

     

    

 

Each request for an extension of credit shall be deemed to constitute
a representation and warranty by the Borrower on the date of such extension of credit as to the matters specified in paragraphs
(a) and (b) of this Section.

 

Article
VI

 

Affirmative Covenants

 

Until the Commitments have expired or been
terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full, and no Letter
of Credit remains outstanding, the Borrower covenants and agrees with the Lenders that:

 

Section
6.01.                   
Financial Statements and Other Reports. The Borrower and each of its Subsidiaries will maintain a system of
accounting established and administered in accordance with sound business practices to permit preparation of consolidated financial
statements in conformity with GAAP and the Borrower will deliver to the Administrative Agent (which will deliver copies thereof
to the Lenders) (except to the extent otherwise expressly provided below in subsection 6.01(b)(ii)):

 

(b)              
 

 

(i)                
as soon as practicable and in any event within 45 days after the end of each of the first three Fiscal Quarters of each
Fiscal Year ending after the Effective Date the consolidated balance sheet of the Borrower and its consolidated Subsidiaries as
at the end of such period, and the related consolidated statements of income and shareholders’ equity and cash flows of the
Borrower and its consolidated Subsidiaries in each case certified by the chief financial officer or controller of the Borrower
that they fairly present the financial condition of the Borrower and its consolidated Subsidiaries as at the dates indicated and
the results of their operations and changes in their financial position, subject to changes resulting from audit and normal year-end
adjustments, based on the Borrower’s normal accounting procedures applied on a consistent basis (except as noted therein);

 

(ii)              
as soon as practicable and in any event within 90 days after the end of each Fiscal Year the consolidated balance sheet
of the Borrower and its consolidated Subsidiaries as at the end of such year and the related consolidated statements of income
and shareholders’ equity and cash flows of the Borrower and its consolidated Subsidiaries for such Fiscal Year, accompanied
by a report thereon of an Independent Public Accountant which report shall be unqualified as to (w) the accuracy of all numbers
or amounts set forth in such financial statements, (x) the inclusion or reflection in such financial statements of all amounts
pertaining to contingencies required to be included or reflected therein in accordance with GAAP, (y) going concern and (z) scope
of audit, and shall state that such consolidated financial statements present fairly the financial position of the Borrower and
its consolidated Subsidiaries as at the dates indicated and the results of their operations and changes in their financial position
for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as noted in such report
and approved by such Independent Public Accountant) and that the

 

    48 

     

    

 

examination
by such Independent Public Accountant in connection with such consolidated financial statements has been made in accordance with
generally accepted auditing standards;

 

The Borrower will be deemed to have complied
with the requirements of Section 6.01(a)(i) hereof if within 45 days after the end of each Fiscal Quarter (other than the final
Fiscal Quarter) of each of its Fiscal Years, a copy of the Borrower’s Form 10-Q as filed with the Securities and Exchange
Commission with respect to such Fiscal Quarter is furnished to the Administrative Agent, and the Borrower will be deemed to have
complied with the requirements of Section 6.01(a)(ii) hereof if within 90 days after the end of each of its Fiscal Years, a copy
of the Borrower’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission with respect to such Fiscal
Year is furnished to the Administrative Agent:

 

(c)               
 

 

(i)                
together with each delivery of financial statements of the Borrower and its consolidated Subsidiaries pursuant to subdivisions
(a)(i) and (a)(ii) above, (x) an Officer’s Certificate of the Borrower stating that the signer has reviewed the terms of
this Agreement and has made, or caused to be made under such signer’s supervision, a review in reasonable detail of the transactions
and condition of the Borrower and its consolidated Subsidiaries during the accounting period covered by such financial statements
and that such review has not disclosed the existence during or at the end of such accounting period, and that the signer does not
have knowledge of the existence as at the date of the Officers’ Certificate, of any condition or event which constitutes
an Event of Default or Default, or, if any such condition or event existed or exists, specifying the nature and period of existence
thereof and what action the Borrower has taken, is taking and proposes to take with respect thereto; and (y) an Officer’s
Certificate demonstrating in reasonable detail compliance with the restrictions contained in Section 7.03 hereof as of the last
day of the accounting period covered by such financial statements (a “Compliance Certificate”) and, in addition, a
written statement of the chief accounting officer, chief financial officer, any vice president or the treasurer or any assistant
treasurer of the Borrower describing in reasonable detail the differences between the financial information contained in such financial
statements and the information contained in the Officer’s Certificate relating to compliance with Section 7.03 hereof;

 

(ii)              
promptly upon their becoming available but only to the extent requested by the Administrative Agent, copies of all publicly
available financial statements, reports, notices and proxy statements sent by the Borrower to its security holders, all regular
and periodic reports and all registration statements and prospectuses, if any, filed by the Borrower with any securities exchange
or with the Securities and Exchange Commission;

 

(iii)            
promptly upon (and in no event later than three days after) any of the chairman of the board, the chief executive officer,
the president, the chief accounting officer, the chief financial officer or the treasurer of the Borrower obtaining actual knowledge
(x) of any condition or event which constitutes an Event of Default or Default, or (y) of a Material Adverse Effect, an Officer’s
Certificate specifying the nature and period of existence of any such condition or event, or specifying the notice given or

 

    49 

     

    

 

action
taken by such holder or Person and the nature of such claimed Default, Event of Default, event or condition, and what action,
if any, the Borrower has taken, is taking and proposes to take with respect thereto; and

 

(iv)            
with reasonable promptness, such other information and data with respect to the Borrower or any of its Subsidiaries as from
time to time may be reasonably requested by any Lender.

 

Section
6.02.                   
Corporate Existence. Except as may result from a transaction permitted by Section 7.01 hereof, the Borrower
will, and will cause each other Loan Party to, maintain its corporate existence in good standing and qualify and remain qualified
to do business as a foreign corporation in each jurisdiction in which the character of the properties owned or leased by it therein
or in which the transaction of its business is such that the failure to qualify would have a Material Adverse Effect.

 

Section
6.03.                   
Payment of Taxes. The Borrower will, and will cause each of its Subsidiaries to, pay all taxes, assessments
and other governmental charges imposed upon it or any of its properties or assets or in respect of any of its franchises, business,
income or property when due which are material to the Borrower and its Subsidiaries, taken as a whole, provided, that no such amount
need be paid if being contested in good faith by appropriate proceedings diligently conducted and if such reserve or other appropriate
provision, if any, as shall be required in conformity with GAAP shall have been made therefor.

 

Section
6.04.                   
Maintenance of Properties; Insurance. The Borrower will maintain or cause to be maintained in good repair,
working order and condition (ordinary wear and tear excepted) all material properties and equipment used or useful in its business.
The foregoing sentence shall not be construed as to prohibit or restrict the sale or disposition of any assets of the Borrower
or any of its Subsidiaries. The Borrower will maintain or cause to be maintained, with financially sound and reputable insurers,
insurance with respect to its material properties and business and the material properties and business of its Subsidiaries against
loss or damage of the kinds customarily insured against by corporations of established reputation engaged in the same or similar
businesses and similarly situated, of such types and in such amounts as are customarily carried under similar circumstances by
such other corporations.

 

Section
6.05.                   
Compliance with Laws. The Borrower and its Subsidiaries shall exercise all due diligence in order to comply
in all material respects with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority
(including, without limitation, laws, rules and regulations relating to the disposal of hazardous wastes and asbestos in the environment),
noncompliance with which would have a Material Adverse Effect. The Borrower shall maintain in effect policies and procedures reasonably
designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents
with Anti-Corruption Laws and applicable Sanctions.

 

Section
6.06.                   
Notices of ERISA Event. The Borrower will furnish to the Administrative Agent and each Lender prompt written
notice of 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 Borrower and its Subsidiaries in an aggregate amount exceeding $50,000,000.

 

    50 

     

    

 

Section
6.07.                   
Inspection Rights. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives
designated by the Administrative Agent or any Lender, upon reasonable prior notice and at reasonable times, to visit and inspect
its properties, to examine and make extracts from its books, and to discuss its affairs, finances and condition with its officers
and, in the presence of its officers, its independent accountants.

 

Article
VII

 

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 no Letter of Credit remains
outstanding, the Borrower covenants and agrees with the Lenders that:

 

Section
7.01.                   
Fundamental Changes. The Borrower will not consolidate with or merge with or into, or transfer all or substantially
all, or any substantial portion, of its properties and assets to one or more Persons in one or a series of related transactions
unless (i) if the Borrower is the surviving entity in any such consolidation or merger, after giving effect to such transaction,
there would not exist any Default or Event of Default hereunder, (ii) if the Borrower is not the surviving entity in any such consolidation
or merger, each of the Lenders (or in the case of any such consolidation or merger which is in the nature of an internal corporate
reorganization of only the Borrower and its Subsidiaries and does not, in the reasonable judgment of the Required Lenders, affect,
in any material respect, the creditworthiness of the Borrower, the Required Lenders) consents to such consolidation or merger in
advance or (iii) if the Borrower transfers all or substantially all, or any substantial portion, of its properties and assets,
the transferee or transferees thereto are wholly owned Subsidiaries (except the transferee or transferees of any substantial portion
of its properties and assets, but not all or substantially all of its properties and assets, shall not be required to be wholly
owned Subsidiaries if the transfer is for fair consideration as reasonably determined by the Borrower) and any such transferee
that is a domestic Subsidiary becomes a Loan Guarantor hereunder pursuant to a Joinder Agreement substantially in the form of Exhibit
D (it being understood that the Borrower and the Administrative Agent, on behalf of the Lenders, may agree to amendments hereto
solely to provide for such guarantor arrangements as they may reasonably determine are necessary or useful). For the purposes of
this Section, “Subsidiary” of the Borrower shall include any partnership, limited liability company or other entity
of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests
having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers
thereof are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries,
or both, by the Borrower.

 

Section
7.02.                   
Liens. The Borrower will not, and will not permit any of its Subsidiaries (other than CRISIL Limited) to,
directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to any property or asset (including
any document or instrument in respect of goods or accounts receivable) of the Borrower or any of its Subsidiaries, whether now
owned or hereafter acquired, or any income or profits therefrom, except:

 

    51 

     

    

 

(b)              
Liens set forth on Schedule 7.02 hereto;

 

(c)               
Permitted Liens;

 

(d)              
Purchase money security interests (including mortgages, conditional sales, Capitalized Leases and any other title retention
or deferred purchase devices) in real or personal property of the Borrower or any of its Subsidiaries existing or created at the
time of acquisition thereof or within 90 days thereafter, and the renewal, extension or refunding of any such security interest
in an amount not exceeding the amount thereof remaining unpaid immediately prior to such renewal, extension or refunding; provided,
however, that the principal amount of Indebtedness and Capitalized Lease Obligations secured by each such security interest
in each item of property shall not exceed the cost (including all such Indebtedness secured thereby, whether or not assumed) of
the item subject thereto and that such security interests shall attach solely to the particular item of property so acquired;

 

(e)               
Liens on property of a Person existing at the time such Person is merged into or consolidated with the Borrower or any Subsidiary
of the Borrower or becomes a Subsidiary of the Borrower; provided that such Liens were not created in contemplation of such
merger, consolidation or acquisition and do not extend to any assets other than those of the Person so merged into or consolidated
with the Borrower or such Subsidiary or acquired by the Borrower or such Subsidiary; and

 

(f)               
In addition to Liens permitted by clauses (a) through (d), the Borrower and its Subsidiaries may have attachment or judgment
Liens and Liens securing the payment of Indebtedness or other obligations, which Liens secure in the aggregate not more than $300,000,000;
provided that no Lien shall be counted against the basket in this clause (e) if such Lien ranks junior to, or equally with, a Lien
securing the obligations in respect of this Agreement.

 

Section
7.03.                   
Financial Covenant. The Borrower shall not permit the Indebtedness to Cash Flow Ratio for each Determination
Date, which is the last day of a Fiscal Quarter of the Borrower, to be greater than 4.00:1.00 at any time.

 

Section
7.04.                   
Use of Proceeds. No portion of the proceeds of any borrowing under this Agreement shall be used by the Borrower
in any manner which would cause the borrowing or the application of such proceeds to violate Regulation U, Regulation T, or Regulation
X of the Board or any other regulation of the Board or to violate the Exchange Act, in each case as in effect on the date or dates
of such borrowing and such use of proceeds. The Borrower shall not request any Borrowing or Letter of Credit, and the Borrower
shall not use and shall procure that its Subsidiaries and its and their respective directors, officers, employees and agents shall
not use the proceeds of any Borrowing or Letter of Credit (A) in furtherance of an offer, payment, promise to pay or authorization
of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Law, (B) for the
purpose of funding, financing or facilitating any activities, business or transactions of or with

 

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any
Sanctioned Person, or in any Sanctioned Country, to the extent such activities, business or transactions would be prohibited by
Sanctions if conducted by an entity incorporated or formed in the United States or in a European Union member state or (C) in
any manner that would result in the violation of any Sanctions applicable to any party hereto.

 

Article
VIII

 

Events of Default

 

If any of the following conditions or events
(“Events of Default”) shall occur and be continuing:

 

Section
8.01.                   
Failure to Make Payments When Due. Failure to pay any installment of principal of any Loan or Reimbursement
Obligation when due, whether at stated maturity, by acceleration, by notice of prepayment or otherwise; or failure to pay any other
amount due under this Agreement (including, without limitation, the fees described in Section 2.11 hereof) or to pay interest on
any Loan or Reimbursement Obligation, in either case within three Business Days after the date when due.

 

Section
8.02.                   
Default in Other Agreements. (b) Failure of the Borrower or any of its Material Subsidiaries to pay when due,
after giving effect to any applicable grace period and to any waiver or extension granted thereunder, any principal or interest
on any Indebtedness of the Borrower or any Material Subsidiary (other than Indebtedness referred to in Section 8.01) and Capital
Lease Obligations in a principal amount (individually or in the aggregate) of $75,000,000 or more.

 

(b)              
The breach or default of the Borrower or any of its Subsidiaries with respect to any other term of any Indebtedness or Capital
Lease Obligations in a principal amount (individually or in the aggregate) of $75,000,000 or more or any loan agreement, mortgage,
indenture or other agreement relating thereto, if such failure, default or breach results in such Indebtedness or Capital Lease
Obligations in a principal amount (individually or in the aggregate) of $75,000,000 or more becoming or being declared by the holders
thereof to be due and payable prior to its stated maturity; provided that if the Borrower or any of its Material Subsidiaries
enters into or is a party to (as a borrower, guarantor or other obligor) any such loan agreement, mortgage, indenture or other
agreement and such instrument contains a provision in the nature of a “cross-default” clause (whether as a default
provision, a covenant or otherwise), such provision is hereby incorporated by reference in this Agreement, mutatis mutandis,
for the benefit of the Lenders and the Administrative Agent (and without giving effect to any amendment, modification or waiver
unless such amendment, modification or waiver is intended solely to cure any ambiguity, omission, defect or inconsistency (which
intention shall be determined in good faith by the Chief Financial Officer of the Borrower)); provided, further,
that notwithstanding anything contained in this Agreement to the contrary, this Section 8.02 shall not be applicable to any Indebtedness
of, or Capitalized Lease Obligation (or loan agreement, mortgage, indenture or other agreement relating thereto) entered into by,
a partnership (a “Partnership”) of which any Subsidiary of the Borrower is a general partner (a “General
Partner”) provided that (i) such General Partner’s only asset is its interest in the Partnership and
(ii) such Indebtedness and/or Capitalized Lease Obligation, as the case may be, (A) is with

 

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recourse
only to such asset, the assets of the Partnership and any asset or assets of any general partner or other entity that is not an
Affiliate of the General Partner and (B) is without recourse to the Borrower and any of its other Subsidiaries.

 

Section
8.03.                   
Breach of Certain Covenants. Failure of the Borrower to perform or comply with any term or condition contained
in Section 6.02 or Article 7 of this Agreement.

 

Section
8.04.                   
Breach of Warranty. Any material representation or warranty made by the Borrower in this Agreement or in any
statement or certificate at any time given by the Borrower in writing pursuant hereto or thereto or in connection herewith or therewith
shall be false in any material respect on the date as of which made or deemed to be made.

 

Section
8.05.                   
Other Defaults Under Agreement. The Borrower shall default in the performance of or compliance with any term
contained in this Agreement (other than any default described in any other provision of Section 8 hereof) and such default shall
not have been remedied or waived within 30 days after receipt by the Borrower of notice from the Administrative Agent or any Lender
of such default.

 

Section
8.06.                   
Change In Control. The acquisition (other than from the Borrower) by any Person or any “group”,
within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (excluding, for this purpose, the Borrower or its Subsidiaries
or any employee benefit plan of the Borrower or its Subsidiaries) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 35% or more of either the then outstanding shares of common stock or the combined voting power of the
Borrower’s then outstanding voting securities entitled to vote generally in the election of directors; or (b) individuals
who, as of the date hereof, constitute the board of directors of the Borrower (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the board, provided that any person becoming a director subsequent to the date
hereof, whose election, or nomination for election by the Borrower’s shareholders, was approved by a vote of at least a majority
of the directors then comprising the Incumbent Board shall be, for purposes of this provision, considered a member of the Incumbent
Board.

 

Section
8.07.                   
Involuntary Bankruptcy; Appointment of Receiver, etc. A court having jurisdiction in the premises shall enter
a decree or order for relief in respect of the Borrower or any of its Material Subsidiaries in an involuntary case under the Bankruptcy
Code or any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, which decree or order is not stayed;
or any other similar relief shall be granted under any applicable federal or state law and is not stayed.

 

(b)              
An involuntary case is commenced against the Borrower or any of its Material Subsidiaries under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises
for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over the
Borrower or any of its Material Subsidiaries, or over all or a substantial part of its property, shall have been entered; or an
interim receiver, trustee or other custodian of

 

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the
Borrower or any of its Material Subsidiaries for all or a substantial part of the property of the Borrower or any of its Material
Subsidiaries is involuntarily appointed; or a warrant of attachment, execution or similar process is issued against any substantial
part of the property of the Borrower or any of its Material Subsidiaries; and the continuance of any such events in subpart (b)
for 90 days unless dismissed, bonded or discharged.

 

Section
8.08.                   
Voluntary Bankruptcy; Appointment of Receiver, etc. The Borrower or any of its Material Subsidiaries shall
have an order for relief entered with respect to it or commence a voluntary case under the Bankruptcy Code or any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary
case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment
of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; the making by
the Borrower or any of its Material Subsidiaries of any assignment for the benefit of creditors generally; or the inability or
failure of the Borrower or any of its Material Subsidiaries, or the admission by the Borrower or any of its Material Subsidiaries
in writing of its inability to pay its debts as such debts become due; or the Board of Directors of the Borrower or any Material
Subsidiary (or any committee thereof) adopts any resolution or otherwise authorizes action to approve any of the foregoing; or

 

Section
8.09.                   
Judgments and Attachments. Any money judgment, writ or warrant of attachment, or similar process involving
individually or at any one time in the aggregate an amount in excess of $200,000,000 (calculated net of insurance coverage, so
long as such coverage has been accepted by the relevant insurance company or companies) shall be entered or filed against the Borrower
or any of its Subsidiaries or any of its assets and shall remain undischarged, unvacated, unbonded or unstayed, as the case may
be, for a period of 90 days or in any event later than five days prior to the date of any announced sale thereunder; or

 

Section
8.10.                   
Involuntary Dissolution. Any order, judgment or decree shall be entered against the Borrower or any of its
Material Subsidiaries decreeing the dissolution or split up of the Borrower or any of its Material Subsidiaries and such order
shall remain undischarged or unstayed for a period in excess of 60 days; or

 

Section
8.11.                   
ERISA Event. An ERISA Event shall have occurred that, when taken together with all other ERISA Events that
have occurred, could reasonably be expected to result in a Material Adverse Effect;

 

THEN (i) upon the occurrence of any Event
of Default described in the foregoing subsection 8.07 or 8.08, the unpaid principal amount of and accrued interest on the Loans
and any fees and other amounts owing by the Borrower under this Agreement and the Notes (including all Reimbursement Obligations)
shall automatically become immediately due and payable, without presentment, demand, protest or other requirements of any kind,
all of which are hereby expressly waived by the Borrower and the obligation of each Lender to make any Loans shall thereupon terminate,
and (ii) upon the occurrence of any other Event of Default, the Administrative Agent, as directed by the Required Lenders, may,
by written notice to the Borrower, declare all of the unpaid principal amount of and accrued interest on the Loans and any fees
and other amounts owing by the Borrower under this Agreement and the Notes

 

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(including
all Reimbursement Obligations) to be, and the same shall forthwith become immediately, due and payable, together with accrued
interest thereon, and the obligation of each Lender to make any Loan and of the Issuing Lender to issue, amend or increase any
Letter of Credit hereunder shall thereupon terminate. With respect to all Letters of Credit with respect to which presentment
for honor shall not have occurred at the time of an acceleration pursuant to this paragraph, the Borrower shall at such time deposit
in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate L/C Exposure. Amounts held in
such cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of
Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall
be applied to repay other obligations of the Borrower hereunder and under the Notes. After all such Letters of Credit shall have
expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other obligations of the Borrower
hereunder and under Notes shall have been paid in full, the balance, if any, in such cash collateral account shall be returned
to the Borrower (or such other Person as may be lawfully entitled thereto). Except as expressly provided above in this Section,
presentment, demand, protest and all other notices of any kind are hereby expressly waived by the Borrower.

 

Notwithstanding the foregoing, if at any time
within 60 days after acceleration of the maturity of the Loans the Borrower shall pay all arrears of interest and all payments
on account of the principal which shall have become due otherwise than by acceleration (with interest on principal and, to the
extent permitted by law, on overdue interest, at the rates specified in this Agreement or the Notes) and all other fees or expenses
then owed hereunder (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters
of Credit shall have presented the documents required thereunder) and all Events of Default and Defaults (other than non-payment
of principal of and accrued interest on the Loans and the Notes due and payable solely by virtue of acceleration) shall be remedied
or waived pursuant to Section 10.02 hereof, then the Required Lenders by written notice to the Borrower may (in their sole discretion)
rescind and annul the acceleration and its consequences; but such action shall not affect any subsequent Event of Default or Default
or impair any right consequent thereon.

 

Article
IX

 

The Administrative Agent

 

Each of the Lenders 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 the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably
incidental thereto.

 

The bank serving as the 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 of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent
hereunder.

 

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The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein. 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 hereby that the Administrative Agent is required to exercise in writing
by the Required Lenders, and (c) except as expressly set forth herein, 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 Borrower or any of its Subsidiaries that is
communicated to or obtained by the 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,
if so specified by this Agreement, all Lenders) or in the absence of its own gross negligence or willful misconduct (as determined
in a final and nonappealable decision of a court of competent jurisdiction). 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 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 this Agreement, (ii) the contents of any certificate, report or other document
delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other
terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article V or elsewhere herein, other
than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

The Administrative Agent shall be entitled
to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument,
document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and believed by it 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 it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or experts.

 

The Administrative Agent may perform any and
all its 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
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.

 

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 and the Borrower. Upon any such resignation, the Required Lenders shall have the

 

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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, 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. 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 10.03 shall continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as Administrative Agent.

 

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 related agreement or any document furnished hereunder or thereunder.

 

It is agreed that neither the Syndication
Agent nor any Documentation Agent shall have any duties, responsibilities or liabilities hereunder in its capacity as such.

 

Article
X

 

Miscellaneous

 

Section
10.01.               
Notices. Except in the case of notices and other communications expressly permitted to be given by telephone
or as contemplated below, 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:

 

(a) if to any Loan Party, to the Borrower
at:

 

McGraw Hill Financial, Inc.

55 Water St.

New York, New York 10041

Attention:Elizabeth O’Melia

Treasurer

(Telecopy No. (212) 512-6052)

 

with a copy to:

 

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55 Water St.

New York, New York 10041

Attention:Lucy Fato

Executive Vice President and General Counsel

(Telecopy No. (212) 438-2277)

 

(b) if to the Administrative Agent, to:

 

JPMorgan Chase Bank, N.A.

500 Stanton Christiana Rd.

Newark, Delaware 19713

Attention: Neer Reibenbach

Telephone: (302) 634-1678

Telecopy: (302) 634-3301

 

with a copy to:

 

JPMorgan Chase Bank, N.A.

383 Madison Avenue, 24th Floor

New York, New York 10179

Attention: Bruce Borden

Telecopy: (212) 270-5799

E-mail: bruce.s.borden@jpmorgan.com

 

(c) if to the Swingline Lender, to:

 

JPMorgan Chase Bank, N.A.

500 Stanton Christiana Rd. Newark, Delaware 19713

Attention: Neer Reibenbach

Telephone: (302) 634-1678

Telecopy: (302) 634-3301

 

(d) if to any other Lender, to it at its address
(or telecopy number) set forth in its Administrative Questionnaire.

 

Notices and other communications to the Lenders hereunder may
be delivered or furnished by electronic communications (including e-mail and internet or intranet websites) pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II or to certificates
delivered pursuant to Section 6.01(b) unless otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative
Agent or the Borrower (on behalf of the Loan Parties) may, in its 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. All such notices and other communications sent to an e- mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e- mail or other written acknowledgement), provided that if not given during
the normal business

 

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hours of the recipient, such notice or communication shall be
deemed to have been given at the opening of business on the next Business Day for the recipient. All other notices and communications
given to any party hereto in accordance with the provisions of this Agreement and delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopy shall be deemed to have been given on the date of receipt, provided
that if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business
on the next Business Day for the recipient. Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto.

 

Section
10.02.               
Waivers; Amendments. No failure or delay by the Administrative Agent or any Lender in exercising any right
or power hereunder 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 and the Lenders hereunder are cumulative
and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by the Borrower 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 shall not be construed as a waiver of any Default,
regardless of whether the Administrative Agent or any Lender may have had notice or knowledge of such Default at the time.

 

(b)              
Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements
in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent 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 reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of
the principal amount of any Loan, or any interest thereon, or any 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 2.17(b) or Section 10.08(a) 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 Section 2.19 without the written consent
of the Administrative Agent and the Swingline Lender, (vi) change any of the provisions of this Section or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify
any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender, (vii)
release the Loan Guaranty without the consent of all Lenders or (viii) amend the definition of Applicable Percentage without the
consent of all Lenders; provided, further, that no such agreement shall amend, modify or otherwise affect the rights
or duties of the Administrative Agent, the Swingline Lender or the Issuing Lender hereunder without the prior written consent of
the Administrative Agent, the Swingline Lender or the Issuing Lender, as the case may be (it being understood that any amendment,
modification or waiver of any provision of Article III shall require the prior written consent of the Issuing Lender).

 

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Section
10.03.               
Expenses; Indemnity; Damage Waiver; No Fiduciary Duty. The Borrower shall pay (i) all reasonable and actual
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable and actual fees, charges
and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facilities provided
for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions
hereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all reasonable and actual
out-of- pocket expenses incurred by the Administrative Agent, any Lender or the Issuing Lender, including the fees, charges and
disbursements of any counsel for the Administrative Agent, any Lender or the Issuing Lender, in connection with the enforcement
or protection of their respective rights in connection with this Agreement, including their respective rights under this Section,
or in connection with the Loans made or the Letters of Credit issued hereunder, including in connection with any workout, restructuring
or negotiations in respect thereof.

 

(b)              
The Borrower shall indemnify the Administrative Agent, each Lender, the Issuing 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 fees, charges and disbursements of any
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 this Agreement or any agreement or instrument contemplated hereby, the performance by the parties
hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated
hereby, (ii) any actual or alleged presence or release of hazardous materials on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any environmental liability related in any way to the Borrower or any of its Subsidiaries,
or (iii) 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
resulted from the gross negligence or willful misconduct of such Indemnitee or any of its Affiliates (as determined in a final
and nonappealable decision of a court of competent jurisdiction). This Section shall not apply with respect to Taxes (other than
Taxes arising from a non-Tax claim). No Indemnitee shall be liable for any damages arising from the use by unintended recipients
of any information or other materials distributed by it through telecommunications, electronic or other information transmission
systems in connection with this Agreement or the Notes or the transactions contemplated hereby or thereby.

 

(c)               
To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent, the Issuing
Lender or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative
Agent, the Issuing Lender or the Swingline Lender, as the case may be, such Lender’s Applicable Percentage (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, the Issuing Lender or the Swingline Lender in its capacity as such.

 

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(d)              
To the extent permitted by applicable law, each of the Loan Parties, the Lenders, the Issuing Lender and the Administrative
Agent shall not assert, and hereby waives, any claim against any Indemnitee or any other party hereto, 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 or the use of the
proceeds thereof. For the avoidance of doubt, nothing in this clause (d) shall affect the obligations of the Borrower under clause
(b) of this Section to indemnify any Indemnitee in accordance with the provisions thereof.

 

(e)               
The Borrower shall not be liable for any liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
claims, costs, expenses and disbursements which may be imposed on, incurred by or asserted against an Indemnitee that is a Lender
by another Lender or any entity which has purchased or otherwise acquired a participation in any Loan, Commitment or interest herein
or in a Note of such Indemnitee to the extent such relate solely to or arise solely out of actions taken or not taken by the Indemnitee
Lender in connection with matters that are of an “interbank nature”. To the extent that the undertaking to indemnify,
pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy
or otherwise, the Borrower shall contribute the maximum portion which it is permitted to pay and satisfy under applicable law,
to the payment and satisfaction of all indemnified liabilities incurred by the Indemnitees or any of them.

 

(f)               
All amounts due under this Section shall be payable promptly after written demand therefor.

 

(g)              
Each Loan Party agrees that neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty
to such Loan Party arising out of or in connection with this Agreement, and the relationship between the Administrative Agent and
the Lenders, on the one hand, and the Loan Parties on the other hand, in connection herewith or therewith is solely that of debtor
and creditor. The Loan Parties have been advised that the Lenders are engaged in a broad range of transactions that may involve
interests that differ from the Loan Parties’ interests and that the Lenders have no obligation to disclose such interests
and transactions to the Loan Parties.

 

Section
10.04.               
Successors and Assigns. 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 the Issuing Lender
that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such
consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except
in accordance with this Section. 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, Participants (to the extent provided
in paragraphs (e) and (f) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

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(b)              
(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees (other
than a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of,
a natural person), the Borrower or any of the Borrower’s Affiliates or Subsidiaries, to any Defaulting Lender or any of its
Subsidiaries or to any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof)
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 or delayed) of (A) the Borrower;
provided that (i) no consent of the Borrower shall be required for an assignment to a Lender, Affiliate of a Lender, an
Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee and (ii) the consent of the Borrower
shall be deemed granted if the Borrower does not object to a proposed assignment within ten Business Days of a request for its
consent; (B) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment
of all or any portion of a Competitive Loan to a Lender, an Affiliate of a Lender or an Approved Fund; (C) in the case of an assignment
of all or a portion of a Commitment or any Lender’s obligations in respect of its Swingline Exposure, the Swingline Lender;
and (D) in the case of an assignment of all or a portion of a Commitment or any Lender’s obligations in respect of its L/C
Exposure, the Issuing Lender, (ii) Assignments shall be subject to the following additional conditions: 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 or Loans of any Class, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent)
shall not be less than $10,000,000 or, in the case of a Competitive Loan, $1,000,000, 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; (iii) 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, except that this clause (iii) shall not apply to rights in respect of outstanding
Competitive Loans, (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and
Acceptance, together with a processing and recordation fee of $3,500, and (v) the assignee, if it shall not be a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire in which the assignee designates one or more credit contacts
to whom all syndicate-level information (which may contain material non-public information about the Borrower and its related parties)
will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable
laws, including Federal and state securities laws. Upon acceptance and recording pursuant to paragraph (d) of this Section, from
and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, 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 Acceptance,
be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance 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

 

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to
be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 10.03). Without the prior written consent of the Administrative Agent,
no assignment shall be made to any Person that bears a relationship to the Borrower described in Section 108(e)(4) of the Code;
provided that consent shall not be required to the extent the Borrower is able to establish to the reasonable satisfaction
of the Administrative Agent that, as a result of such assignment, the assigned portion of such Loan will not have original issue
discount for U.S. federal income tax purposes, or will have an amount of original issue discount for U.S. federal income tax purposes
that is exactly equal to the amount of original issue discount, if any, on the remaining Loans. 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.

 

(c)               
The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices in a
copy of each Assignment and Acceptance 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 L/C Obligations owing to, each Lender pursuant to the terms hereof
from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and
the Borrower, the Administrative Agent, the Issuing Lender and the Lenders shall 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 the Borrower and any Lender, at any reasonable time and from time to time, upon
reasonable prior notice.

 

(d)              
Upon its receipt of a duly completed Assignment and Acceptance 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 Acceptance 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.

 

(e)               
Any Lender may, without the consent of the Borrower, the Administrative Agent, the Swingline Lender or the Issuing Lender,
sell participations to one or more banks or other entities (other than a natural person (or a holding company, investment vehicle
or trust for, or owned and operated for the primary benefit of, a natural person), the Borrower or any of the Borrower’s
Affiliates or Subsidiaries, any Defaulting Lender or any of its Subsidiaries or any Person who, upon becoming a Lender hereunder,
would constitute a Defaulting Lender or a Subsidiary thereof) (a “Participant”) in all or a portion of such
Lender’s rights and 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, (iii) the Borrower, the Administrative
Agent, the Issuing Lender 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 and (iv) without the prior written consent of the Administrative
Agent, no participation shall be sold to any Person that bears a relationship

 

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to
the Borrower described in Section 108(e)(4) of the Code; provided that consent shall not be required to the extent the
Borrower is able to establish to the reasonable satisfaction of the Administrative Agent that, as a result of such assignment,
the assigned portion of such Loan will not have original issue discount for U.S. federal income tax purposes, or will have an
amount of original issue discount for U.S. federal income tax purposes that is exactly equal to the amount of original issue discount,
if any, on the remaining Loans. 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 this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; 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 10.02(b)
that affects such Participant. Subject to paragraph (f) of this Section, the Borrower agrees that each Lender shall be entitled
to the benefits of Sections 2.14, 2.15 and 2.16 for the account of any Participant from such Lender to the extent that (i) such
Lender would have been entitled to such benefits had it not sold a participation to such Participant and (ii) such Participant
has suffered the same disadvantage as such Lender would have suffered had it not sold such participation. Each Lender that sells
a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it
enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest
in the Loans or other obligations under this Agreement (the “Participant Register”). The entries in the Participant
Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant
Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

 

(f)               
A Participant shall not be entitled to receive any greater payment under Section 2.14, 2.15 or 2.16 than the applicable
Lender would have been entitled to receive with respect to the participation sold to such Participant, unless (solely with respect
to Sections 2.14 and 2.15) the sale of the participation to such Participant is made with the Borrower’s prior written consent.
A Participant shall not be entitled to the benefits of Section 2.16 unless such Participant complies with Section 2.16(f) and (h)
as though it were a Lender (it being understood that any forms required to be completed by such Participant under Section 2.16(f)
or (h) shall be delivered to the participating Lender).

 

(g)              
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement
(including under its Notes, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank or any other central banking authority; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

Section
10.05.               
Survival. All covenants, agreements, representations and warranties made by the Loan Parties herein and in
the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans,
regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent
or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is

 

    65 

     

    

 

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 and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.14, 2.15, 2.16 and 10.03 and Article IX 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 Commitments or the termination of this Agreement or any provision hereof.

 

Section
10.06.               
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 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 5.01, 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 or e-mail shall be effective as delivery of a manually
executed counterpart of this Agreement.

 

Section
10.07.               
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.

 

Section
10.08.               
Adjustments; Right of Setoff. Except to the extent that this Agreement or a court order expressly provides
for payments to be allocated to a particular Lender, if any Lender (a “Benefitted Lender”) shall receive any
payment of all or part of the Obligations owing to it (other than in connection with an assignment made pursuant to Section 10.04),
or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings
of the nature referred to in Section 8.07 or 8.08, or otherwise), in a greater proportion than any such payment to or collateral
received by any other Lender, if any, in respect of the Obligations owing to such other Lender, such Benefitted Lender shall purchase
for cash from the other Lenders a participating interest in such portion of the Obligations owing to each such other Lender, or
shall provide such other Lenders with the benefits of any such collateral, as shall be necessary to cause such Benefitted Lender
to share the excess payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or
any portion of such excess payment or benefits is thereafter recovered from such Benefitted Lender, such purchase shall be rescinded,
and the purchase price and benefits returned, to the extent of such recovery, but without interest.

 

(b)              
In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the right, without notice
to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, upon any Obligations

 

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becoming
due and payable by the Borrower (whether at the stated maturity, by acceleration or otherwise), to apply to the payment of such
Obligations, by setoff or otherwise, any and all deposits (general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Lender, any affiliate thereof or any of their respective branches or agencies
to or for the credit or the account of the Borrower; provided that if any Defaulting Lender shall exercise any such right
of setoff, (i) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance
with the provisions of this Agreement and, pending such payment, shall be segregated by such Defaulting Lender from its other
funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Lender, the Swingline Lender and the Lenders
and (ii) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail
the obligations owing to such Defaulting Lender as to which it exercised such right of set-off. Each Lender agrees promptly to
notify the Borrower and the Administrative Agent after any such application made by such Lender, provided that the failure to
give such notice shall not affect the validity of such application.

 

Section
10.09.               
Governing Law; Jurisdiction; Consent to Service of Process. This Agreement shall be construed in accordance
with and governed by the law of the State of New York.

 

(b)              
Each Loan Party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive 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, sitting in the Borough of Manhattan, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement, 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 shall affect any right that the Administrative Agent or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement against any Loan Party or its properties in the
courts of any jurisdiction.

 

(c)               
Each Loan Party hereby irrevocably and unconditionally waives, 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 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.

 

(d)              
Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 10.01.
Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by
law.

 

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Section
10.10.               
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
OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON 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
10.11.               
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
10.12.               
Confidentiality.

 

(b)              
The Lenders shall hold all Information obtained pursuant to this Agreement which has been identified as such by the Borrower
in accordance with their customary procedures for handling confidential information of this nature and in accordance with safe
and sound banking practices, and in any event may make disclosure (i) reasonably required by any bona fide transferee or participant
or prospective transferee or participant, or relevant credit default or swap counterparty, in connection with the contemplated
transfer of any Note, Loan or Commitment or participation therein, (ii) to its employees, directors, agents, attorneys, accountants
and other professional advisors or those of any of its affiliates on a confidential basis, (iv) as required or requested by any
Governmental Authority or representative thereof or pursuant to legal process, (v) to any credit insurance provider relating to
the Borrower and its obligations hereunder (vi) if such Information has been publicly disclosed, (vii) in connection with the exercise
of any remedy hereunder or under any Note or (viii) if agreed by the Borrower in its sole discretion; provided that, unless specifically
prohibited by applicable law or court order, each Lender shall notify the Borrower of any request by any governmental agency or
representative thereof (other than any such request in connection with an examination of the financial condition of such Lender
by such governmental agency) or request pursuant to legal process for disclosure of any such Information prior to disclosure of
such Information so that either or both of them may seek an appropriate protective order; and further, provided that in no event
shall any Lender be obligated or required to return any materials furnished by the Borrower or any of its Subsidiaries. “Information”
means all information received from the Borrower relating to the Borrower or its business, other than any such information that
is available to the Administrative Agent or any Lender on a non-confidential basis prior to disclosure by the Borrower and other
than information pertaining to this Agreement routinely provided by arrangers to data service providers, including league table
providers, that serve the lending industry; 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.

 

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(c)               
EACH LENDER ACKNOWLEDGES THAT INFORMATION FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC
INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING
THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE
PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

 

(d)              
ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT
PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL
NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS RELATED PARTIES. ACCORDINGLY, EACH LENDER ACKNOWLEDGES TO THE BORROWER AND THE
ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT
MAY CONTAIN MATERIAL NON- PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

 

Section
10.13.               
USA PATRIOT Act. Each Lender hereby notifies the Loan Parties 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 Loan Parties, which information includes the name and address of the
Loan Parties and other information that will allow such Lender to identify the Loan Parties in accordance with the Act.

 

Article
XI

 

Loan Guaranty

 

Section
11.01.               
Guaranty. Each Loan Guarantor hereby agrees that it is jointly and severally liable for, and, as primary obligor
and not merely as surety, absolutely and unconditionally guarantees to the Lenders and other holders of Obligations from time to
time the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the
Obligations and all costs and expenses including, without limitation, all court costs and attorneys’ fees and expenses paid
or incurred by the Administrative Agent and the Lenders and such other holders in endeavoring to collect all or any part of the
Obligations from, or in prosecuting any action against, the Borrower, any Loan Guarantor or any other guarantor of all or any part
of the Obligations (such costs and expenses, together with the Obligations, collectively the “Guaranteed Obligations”).
Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice
to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.

 

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Section
11.02.               
Guaranty of Payment. This Loan Guaranty is a guaranty of payment and not of collection. Each Loan Guarantor
waives any right to require the Administrative Agent or any Lender or other holder of obligations to sue the Borrower, any Loan
Guarantor, any other guarantor, or any other Person obligated for all or any part of the Guaranteed Obligations (each, an “Obligated
Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.

 

Section
11.03.               
No Discharge or Diminishment of Loan Guaranty.

 

(b)              
Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder are continuing, unconditional
and absolute and not subject to any reduction, limitation, impairment, discharge, termination, or otherwise affected by for any
reason (other than the indefeasible payment in full in cash of the Guaranteed Obligations), including: (i) any claim of waiver,
release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guaranteed Obligations, by operation
of law or otherwise; (ii) any amendment, waiver or modification of or supplement to any provision of any agreement relating to
the Guaranteed Obligations; (iii) any change in the corporate existence, structure or ownership of the Borrower or any other guarantor
of or other person liable for any of the Guaranteed Obligations; (iv) any insolvency, bankruptcy, reorganization or other similar
proceeding affecting any Obligated Party, or their assets or any resulting release or discharge of any obligation of any Obligated
Party; (v) any release, non-perfection, or invalidity of any indirect or direct security for the obligations of the Borrower for
all or any part of the Guaranteed Obligations or any obligations of any other guarantor of or other person liable for any of the
Guaranteed Obligations; (vi) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any time against
any Obligated Party, the Administrative Agent, any Lender, or any other person, whether in connection herewith or in any unrelated
transactions; (vii) the failure of the Administrative Agent or any Lender or other holder of Obligations to assert any claim or
demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (viii) any action or failure to
act by the Administrative Agent or any Lender with respect to any collateral securing any part of the Guaranteed Obligations; or
(ix) any default, failure or delay, willful or otherwise, in the payment or performance of any of the Guaranteed Obligations, or
any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of such Loan Guarantor or
that would otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the indefeasible payment
in full in cash of the Guaranteed Obligations). Each Loan Guarantor waives diligence, presentment, protest, demand for payment
and notice of default or nonpayment to or upon the Borrower, any other Loan Guarantor or any other Person with respect to the Obligations.

 

(c)               
The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff, counterclaim, recoupment, or
termination whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Guaranteed Obligations or otherwise,
or any provision of applicable law or regulation purporting to prohibit payment by any Loan Guarantor, of the Guaranteed Obligations
or any part thereof.

 

Section
11.04.               
Rights of Subrogation. No Loan Guarantor will assert any right, claim or cause of action, including, without
limitation, a claim of subrogation, contribution or indemnification that it has against any Obligated Party, or any collateral,
until the Loan Parties and the Loan Guarantors have fully performed all their obligations to the Administrative Agent and the Lenders.

 

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Section
11.05.               
Reinstatement; Stay of Acceleration. If at any time any payment of any portion of the Guaranteed Obligations
is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of the Borrower or otherwise,
each Loan Guarantor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time
as though the payment had not been made and whether or not the Administrative Agent and the Lenders are in possession of this Loan
Guaranty. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy
or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of any agreement relating
to the Guaranteed Obligations shall nonetheless be payable by the Loan Guarantors forthwith on demand by the Lender.

 

Section
11.06.               
Maximum Liability. The provisions of this Loan Guaranty are severable, and in any action or proceeding involving
any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights
of creditors generally, if the obligations of any Loan Guarantor under this Loan Guaranty would otherwise be held or determined
to be avoidable, invalid or unenforceable on account of the amount of such Loan Guarantor’s liability under this Loan Guaranty,
then, notwithstanding any other provision of this Loan Guaranty to the contrary, the amount of such liability shall, without any
further action by the Loan Guarantors or the Lenders, be automatically limited and reduced to the highest amount that is valid
and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the relevant Loan Guarantor’s
“Maximum Liability”. Each Loan Guarantor agrees that the Guaranteed Obligations may at any time and from time
to time exceed the Maximum Liability of each Loan Guarantor without impairing this Loan Guaranty or affecting the rights and remedies
of the Lenders hereunder, provided that, nothing in this sentence shall be construed to increase any Loan Guarantor’s obligations
hereunder beyond its Maximum Liability.

 

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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.

 

	MCGRAW HILL FINANCIAL, INC., 

    as Borrower
	 
	 
	By:	/s/ Jack Callahan
	 	Name:	Jack Callahan
	 	Title:	EVP – Chief Financial Officer

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	STANDARD & POOR’S FINANCIAL SERVICES LLC, as Loan Guarantor
	 
	 
	By:	/s/ Neeraj Sahai
	 	Name:	Neeraj Sahai
	 	Title:	Chairman and President

 

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	JPMORGAN CHASE BANK, N.A.,

    as Administrative Agent, Swingline Lender, 
Issuing
    Lender and Lender
	 
	 
	By:	/s/ Bruce S. Borden
	 	Name:	Bruce S. Borden
	 	Title:	Executive Director

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	BANK OF AMERICA, N.A.,

    as Syndication Agent, Issuing Lender and Lender
	 
	 
	By:	/s/ Prayes Majmudar
	 	Name:	Prayes Majmudar
	 	Title:	Director

 

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	CITIBANK, N.A.,

    as Documentation Agent and Lender
	 
	 
	By:	/s/ Michael Vondriska
	 	Name:	Michael Vondriska
	 	Title:	Vice President

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	DEUTSCHE BANK AG NEW YORK BRANCH, 
as Documentation
    Agent and Lender
	 
	 
	By:	/s/ Virginia
    Cosenza
	 	Name:	Virginia Cosenza
	 	Title:	Vice President
	 	 	 
	 	 	 
	By:	/s/ Ming K. Chu 
	 	Name:	Virginia Cosenza
	 	Title:	Vice President
	 	 	 

 

 

 

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	MIZUHO BANK, LTD.,

    as Documentation Agent and Lender
	 
	 
	By:	/s/ Bertram H. Tang
	 	Name:	Bertram H. Tang
	 	Title:	Authorized Signatory

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	MORGAN STANLEY BANK, N.A., 

    as Lender
	 
	 
	By:	/s/ Michael King
	 	Name:	Michael King
	 	Title:	Authorized Signatory

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., 

    as Lender
	 
	 
	By:	/s/ Ola Anderssen
	 	Name:	Ola Anderssen
	 	Title:	Director

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

	The Bank of Nova Scotia, as a Lender

    

	 
	 
	By:	/s/ Paul J. Czach
	 	Name:	Paul J. Czach
	 	Title:	Managing Director

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

Signature Page to

McGraw Hill Financial, Inc.

Five-Year Credit Agreement

 

 

 

	GOLDMAN SACHS BANK USA, as a Lender
	 
	 
	By:	/s/ Rebecca Kratz
	 	Name:	Rebecca Kratz
	 	Title:	Authorized Signatory

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

Signature Page to

McGraw Hill Financial, Inc.

Five-Year Credit Agreement

 

 

 

	U.S. Bank National Association, as a Lender
	 
	 
	By:	/s/ Stacey L. Harrison
	 	Name:	Stacey L. Harrison
	 	Title:	Officer

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

Signature Page to

McGraw Hill Financial, Inc.

Five-Year Credit Agreement

 

 

 

	The Northern Trust Company, as a Lender
	 
	 
	By:	/s/ Eric Siebert
	 	Name:	Eric Siebert
	 	Title:	Vice President

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

Signature Page to

McGraw Hill Financial, Inc.

Five-Year Credit Agreement

 

 

 

	Bank of Montreal, Chicago Branch, 

    as a Lender
	 
	 
	By:	/s/ Christina Boyle
	 	Name:	Christina Boyle
	 	Title:	Vice President

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

Signature Page to

McGraw Hill Financial, Inc.

Five-Year Credit Agreement

 

 

 

	SunTrust Bank, as a Lender
	 
	 
	By:	/s/ Min Park
	 	Name:	Min Park
	 	Title:	Vice President

 

 

 

[Signature Page to MHFI Five-Year Credit
Agreement]

 

 

    	 

    	 

    

 

Schedule 2.01

 

COMMITMENTS

 

	Name
    of Lender	Commitment
	JPMorgan
    Chase Bank, N.A.	$130,000,000.00
	Bank
    of America, N.A.	$130,000,000.00
	Citibank,
    N.A.	$130,000,000.00
	Deutsche
    Bank AG New York Branch	$130,000,000.00
	Mizuho
    Bank, Ltd.	$130,000,000.00
	Bank
    of Nova Scotia	$85,000,000.00
	Goldman
    Sachs Bank USA	$85,000,000.00
	U.S.
    Bank National Association	$85,000,000.00
	The
    Northern Trust Company	$65,000,000.00
	Morgan
    Stanley Bank, N.A.	$65,000,000.00
	The
    Bank of Tokyo-Mitsubishi UFJ, Ltd.	$65,000,000.00
	Bank
    of Montreal, Chicago Branch	$50,000,000.00
	SunTrust
    Bank	$50,000,000.00
	Total	1,200,000,000.00

 

    	 

    	 

    

 

Schedule 4.01

 

MATERIAL SUBSIDIARIES

 

Standard & Poor’s Financial Services LLC

 

S&P Opco, LLC

 

    	 

    	 

    

 

Schedule 4.05

 

MATERIAL LITIGATION

 

None.

 

    	 

    	 

    

 

Schedule 7.02

 

EXISTING LIENS

 

None.

 

    	 

    	 

    

 

EXHIBIT A

 

[FORM OF]

ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption
(the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).
Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as
amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of
which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby
agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

 

For an agreed consideration,
the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective
Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity
as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under
the respective facilities identified below (including any letters of credit, guarantees and swingline loans included in such facilities)
and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of
the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in
any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the
rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

 

	1. Assignor:	 	 
	 	 	 
	2. Assignee:	 	 
	 	[and is an Affiliate/Approved
    Fund of [identify Lender]1
	 	 
	3. Borrower:	McGraw Hill Financial, Inc.
	 	 
	4.Administrative Agent:	JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement
	 	 
	5.Credit Agreement:	The Five-Year Credit Agreement, dated as of [●], 2015, among McGraw Hill Financial, Inc., the Loan Guarantors party thereto, the Lenders party thereto, Bank of America, N.A., as Syndication Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent.

 

 

1
Select as applicable.

 

 

    	 

    	 

    

 

6.Assigned Interest:

 

	Facility Assigned	Aggregate Amount of Commitment/Loans for all Lenders	Principal Amount Assigned (and identifying information as to individual Competitive Loans)	Percentage Assigned of Facility/Commitment (set forth, to at least 9 decimals, as a percentage of the Facility and the aggregate Commitments of all Lenders thereunder)
	Commitment Assigned:	$	$	%
	Revolving Loans: 	$	$	%
	Competitive Loans: 	$	$	%

 

Effective Date: ____________, 20__ [TO
BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

If the Assignee is not
already a Lender under the Credit Agreement, the Assignee agrees to deliver to the Administrative Agent a completed Administrative
Questionnaire in which the Assignee designates one or more Credit Contacts to whom all syndicate-level information (which may contain
material non-public information about the Borrower and its Related Parties) will be made available and who may receive such information
in accordance with the Assignee’s compliance procedures and applicable laws, including federal and state securities laws.

 

The [Assignee/Assignor]
shall pay the fee payable to the Administrative Agent pursuant to Section 10.04(b) of the Credit Agreement.

 

The terms set forth in this Assignment
and Assumption are hereby agreed to:

 

	
        ASSIGNOR

         

        [NAME OF ASSIGNOR]

         
	 	
        ASSIGNEE

         

        [NAME OF ASSIGNEE]

         

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

 

    	A-2

    	 

    
 

Consented to and Accepted:

 

JPMORGAN CHASE BANK, N.A., as Administrative Agent2

 

	By:	 
	 	Name:
	 	Title:

 

 

[Consented to:]3

 

MCGRAW HILL FINANCIAL, INC., as

Borrower

 

 

	By:	 
	 	Name:
	 	Title:

 

[NAME OF ANY OTHER RELEVANT PARTY]

 

 

	By:	 
	 	Name:
	 	Title:

 

 

 

2
To be added only if the consent of the Administrative Agent is required by Section 10.04(b) of the Credit Agreement.

 

3
To be added only if the consent of the Borrower and/or other parties (e.g. Swingline Lender, Issuing Lender) is required
by Section 10.04(b) of the Credit Agreement.

 

 

    	A-3

    	 

    
 

ANNEX 1

to EXHIBIT A

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.Representations
and Warranties.

 

1.1Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby;
and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with
the Credit Agreement, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement
or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other
Person obligated in respect of the Credit Agreement or (iv) the performance or observance by the Borrower, any of its Subsidiaries
or Affiliates or any other Person of any of their respective obligations under the Credit Agreement.

 

1.2.Assignee.
The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute
and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under
the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied
by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound
by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations
of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned
Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative
Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required
to be delivered by it pursuant to the terms of Section 2.16(f) of the Credit Agreement, duly completed and executed by the Assignee;
and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Credit Agreement, and (ii) it will perform in accordance with their terms all of the obligations
which by the terms of the Credit Agreement are required to be performed by it as a Lender.

 

2.Payments.
From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

 

3. General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors
and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy or e-mail shall
be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall
be governed by, and construed in accordance with, the law of the State of New York.

 

    	 

    	 

    

 

EXHIBIT B

 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to
the Five-Year Credit Agreement, dated as of [●], 2015 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among McGraw Hill Financial, Inc. (the “Borrower”), the Loan Guarantors
party thereto, the Lenders party thereto, Bank of America, N.A., as syndication agent, and JPMorgan Chase Bank, N.A., as administrative
agent (in such capacity, the “Administrative Agent”). Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. ____________ (the “Non-U.S.
Lender”) is providing this certificate pursuant to Section 2.16(f) of the Credit Agreement.

 

Pursuant to the provisions
of Section 2.16(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is
not a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its business within
the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (iii) it is not
a “10-percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a
“controlled foreign corporation” related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v)
the interest payments in question are not effectively connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished
the Administrative Agent and the Borrower with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN
or W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes,
the undersigned shall promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at all times
furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the
calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF LENDER]

 

 

	By:	 
	 	Name:
	 	Title:

 

 

Date: ___________, ___, 20[ ]

 

    	 

    	 

    

 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to
the Five-Year Credit Agreement, dated as of [●], 2015 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among McGraw Hill Financial, Inc. (the “Borrower”), the Loan Guarantors
party thereto, the Lenders party thereto, Bank of America, N.A., as syndication agent, and JPMorgan Chase Bank, N.A., as administrative
agent (in such capacity, the “Administrative Agent”). Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. ____________ (the “Non-U.S.
Lender”) is providing this certificate pursuant to Section 2.16(f) of the Credit Agreement.

 

Pursuant to the provisions
of Section 2.16(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s)
(as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect
partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect
to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary
course of its business within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”),
(iv) none of its direct or indirect partners/members is a “10-percent shareholder” of the Borrower within the meaning
of Section 871(h)(3)(B) of the Code, (v) none of its direct or indirect partners/members is a “controlled foreign corporation”
related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively
connected with the undersigned’s or its direct or indirect partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished
the Administrative Agent and the Borrower with Internal Revenue Service Form W-8IMY accompanied by one of the following forms from
each of its partners/members that is claiming the portfolio interest exemption: (i) an Internal Revenue Service Form W-8BEN or
W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an Internal Revenue Service Form W-8BEN or W-8BEN-E from each of such partner’s/member’s
beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that
(1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative
Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed
and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments.

 

Unless otherwise defined herein, terms defined
in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF LENDER]

 

 

	By:	 
	 	Name:
	 	Title:

 

 

Date: ___________, ___, 20[ ]

 

    	B-2

    	 

    

 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to
the Five-Year Credit Agreement, dated as of [●], 2015 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among McGraw Hill Financial, Inc. (the “Borrower”), the Loan Guarantors
party thereto, the Lenders party thereto, Bank of America, N.A., as syndication agent, and JPMorgan Chase Bank, N.A., as administrative
agent (in such capacity, the “Administrative Agent”). Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. ____________ (the “Non-U.S.
Lender”) is providing this certificate pursuant to Section 2.16(f) of the Credit Agreement.

 

Pursuant to the provisions
of Section 2.16(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner
of the participation in respect of which it is providing this certificate, (ii) it is not a “bank” extending credit
pursuant to a loan agreement entered into in the ordinary course of its business within the meaning of Section 881(c)(3)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”), (iii) it is not a “10-percent shareholder”
of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a “controlled foreign corporation”
related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest payments in question are not effectively
connected with the undersigned’s conduct of a U.S. trade or business.

 

The undersigned has furnished
its participating Lender with a certificate of its non-U.S. person status on Internal Revenue Service Form W-8BEN or W-8BEN-E.
By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned
shall promptly so inform such Lender in writing (2) the undersigned shall have at all times furnished such Lender with a properly
completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned,
or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF PARTICIPANT]

 

 

	By:	 
	 	Name:
	 	Title:

 

 

Date: ___________, ___, 20[ ]

 

    	B-3

    	 

    
 

[FORM OF]

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to
the Five-Year Credit Agreement, dated as of [●], 2015 (as amended, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among McGraw Hill Financial, Inc. (the “Borrower”), the Loan Guarantors
party thereto, the Lenders party thereto, Bank of America, N.A., as syndication agent, and JPMorgan Chase Bank, N.A., as administrative
agent (in such capacity, the “Administrative Agent”). Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. ____________ (the “Non-U.S.
Lender”) is providing this certificate pursuant to Section 2.16(f) of the Credit Agreement.

 

Pursuant to the provisions
of Section 2.16(f) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation
in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners
of such participation, (iii) with respect to such participation, neither the undersigned nor any of its direct or indirect partners/members
is a “bank” extending credit pursuant to a loan agreement entered into in the ordinary course of its business within
the meaning of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), (iv) none of its
direct or indirect partners/members is a “10-percent shareholder” of the Borrower within the meaning of Section 871(h)(3)(B)
of the Code, (v) none of its direct or indirect partners/members is a “controlled foreign corporation” related to the
Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected
with the undersigned’s or its direct or indirect partners/members’ conduct of a U.S. trade or business.

 

The undersigned has furnished
its participating Lender with Internal Revenue Service Form W-8IMY accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an Internal Revenue Service Form W-8BEN or W-8BEN-E or (ii) an IRS Form
W-8IMY accompanied by an Internal Revenue Service Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial
owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the
information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned
shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar
year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

[NAME OF PARTICIPANT]

 

 

	By:	 
	 	Name:
	 	Title:

 

 

Date: ___________, ___, 20[ ]

 

    	B-4

    	 

    
 

EXHIBIT C

 

FORM OF OPINION OF GENERAL COUNSEL OF BORROWER

 

    	C-1

    	 

    
 

EXHIBIT D

 

[FORM OF]

JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT
(this “Agreement”), dated as of _________, ____, 20_, is entered into between , a (the “New Subsidiary”)
and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the “Administrative Agent”) under that
certain Five-Year Credit Agreement, dated as of [●], 2015 among McGraw Hill Financial, Inc. (the “Borrower”),
the Loan Guarantors party thereto, the Lenders party thereto, Bank of America, N.A., as syndication agent, and the Administrative
Agent (as the same may be amended, modified, extended or restated from time to time, the “Credit Agreement”).
All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement.

 

The New Subsidiary and
the Administrative Agent, for the benefit of the Lenders, hereby agree as follows:

 

1.         The New Subsidiary
hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a “Loan
Guarantor” for all purposes of the Credit Agreement and shall have all of the obligations of a Loan Guarantor thereunder
as if it had executed the Credit Agreement. The New Subsidiary hereby agrees to be bound by all of the guaranty obligations set
forth in Article XI of the Credit Agreement. Without limiting the generality of the foregoing terms of this paragraph 1, the New
Subsidiary, subject to the limitations set forth in Section 11.06 of the Credit Agreement, hereby guarantees, jointly and severally
with any other Loan Guarantor, to the Administrative Agent and the Lenders, as provided in Article XI of the Credit Agreement,
the prompt payment and performance of the Guaranteed Obligations in full when due (whether at stated maturity, as a mandatory prepayment,
by acceleration or otherwise) strictly in accordance with the terms thereof and agrees that if any of the Guaranteed Obligations
are not paid or performed in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise),
the New Subsidiary will, jointly and severally together with any other Loan Guarantor, promptly pay and perform the same, without
any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations,
the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or otherwise)
in accordance with the terms of such extension or renewal.

 

2.         If required,
the New Subsidiary is, simultaneously with the execution of this Agreement, executing and delivering such other documents and instruments
as requested by the Administrative Agent in accordance with the Credit Agreement.

 

3.         The address
of the New Subsidiary for purposes of Section 10.01 of the Credit Agreement is as follows:

 

	 
	 
	 
	 

 

4.         The New Subsidiary
hereby waives acceptance by the Administrative Agent and the Lenders of the guaranty by the New Subsidiary upon the execution of
this Agreement by the New Subsidiary.

 

5.         This Agreement
may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which
shall constitute one and the same instrument.

 

    	D-1

    	 

    
 

6.         THIS AGREEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

 

IN WITNESS WHEREOF,
the New Subsidiary has caused this Agreement to be duly executed by its authorized officer, and the Administrative Agent, for the
benefit of the Lenders, has caused the same to be accepted by its authorized officer, as of the day and year first above written.

 

	[NEW SUBSIDIARY]
	 
	 
	By:	 
	Name:	
	Title:	 

 

	Acknowledged
and accepted:
	 
	JPMORGAN
CHASE BANK, N.A., as Administrative Agent

 

 

	By:	 
	Name:	 
	Title:	 

 

 

 

 

 

    	D-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00246-of-00352.parquet"}]]