Document:

Document

Exhibit 10.1

Execution Version

			
	265110167v.17

J.P.Morgan

	364-DAY CREDIT AGREEMENT

dated as of

March 26, 2021
among
ARCOSA, INC.
as Borrower,
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

with

BANK OF AMERICA, N.A.,
as Syndication Agent

___________________________________

JPMORGAN CHASE BANK, N.A.

and 

BofA SECURITIES, INC.

as Joint Bookrunners and Joint Lead Arrangers

	

TABLE OF CONTENTS
Page

						
	Article I Definitions	1

	SECTION 1.01. Defined Terms	1

	SECTION 1.02. Classification of Loans and Borrowings	34

	SECTION 1.03. Terms Generally	34

	SECTION 1.04. Accounting Terms; GAAP; Pro Forma Calculations	35

	SECTION 1.05. Status of Obligations	36

	SECTION 1.06. Interest Rates; LIBOR Notification	36

	SECTION 1.07. [Reserved]	37

	SECTION 1.08. Divisions	37

	SECTION 1.09. Conversion of Foreign Currencies	37

	Article II The Credits	37

	SECTION 2.01. Commitments	37

	SECTION 2.02. Loans and Borrowings	38

	SECTION 2.03. Requests for Borrowings	38

	SECTION 2.04. Determination of Dollar Amounts	39

	SECTION 2.05. [Reserved]	39

	SECTION 2.06. [Reserved]	39

	SECTION 2.07. Funding of Borrowings	39

	SECTION 2.08. Interest Elections	40

	SECTION 2.09. Termination and Reduction of Commitments	41

	SECTION 2.10. Repayment and Amortization of Loans; Evidence of Debt	42

	SECTION 2.11. Prepayment of Loans	42

	SECTION 2.12. Fees	43

	SECTION 2.13. Interest	44

	SECTION 2.14. Alternate Rate of Interest	45

	SECTION 2.15. Increased Costs	48

	SECTION 2.16. Break Funding Payments	49

	SECTION 2.17. Taxes	49

	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs	53

	SECTION 2.19. Mitigation Obligations; Replacement of Lenders	54

	SECTION 2.20. [Reserved]	55

	SECTION 2.21. Judgment Currency	55

	SECTION 2.22. Defaulting Lenders	55

	Article III Representations and Warranties	56

	SECTION 3.01. Organization; Powers; Subsidiaries	56

	SECTION 3.02. Authorization; Enforceability	57

	SECTION 3.03. Governmental Approvals; No Conflicts	57

	SECTION 3.04. Financial Condition; No Material Adverse Change	57

	SECTION 3.05. Properties	57

	SECTION 3.06. Litigation, Environmental and Labor Matters	58

	SECTION 3.07. Compliance with Laws and Agreements	58

	SECTION 3.08. Investment Company Status	58

	SECTION 3.09. Taxes	58

	SECTION 3.10. ERISA	59

	SECTION 3.11. Disclosure	59

TABLE OF CONTENTS
(continued)
Page

						
	SECTION 3.12. Margin Regulations	59

	SECTION 3.13. Liens	59

	SECTION 3.14. No Default	59

	SECTION 3.15. No Burdensome Restrictions	59

	SECTION 3.16. Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions	59

	SECTION 3.17. Affected Financial Institutions	59

	SECTION 3.18. Solvency	59

	SECTION 3.19. Plan Assets	59

	Article IV Conditions	60

	SECTION 4.01. Effective Date	60

	SECTION 4.02. Each Credit Event	61

	Article V Affirmative Covenants	61

	SECTION 5.01. Financial Statements and Other Information	61

	SECTION 5.02. Notices of Material Events	63

	SECTION 5.03. Existence; Conduct of Business	64

	SECTION 5.04. Payment of Obligations	64

	SECTION 5.05. Maintenance of Properties; Insurance	64

	SECTION 5.06. Books and Records; Inspection Rights	64

	SECTION 5.07. Compliance with Laws	65

	SECTION 5.08. Use of Proceeds	65

	SECTION 5.09. Subsidiary Guaranty	65

	SECTION 5.10. Accuracy of Information	65

	Article VI Negative Covenants	66

	SECTION 6.01. Indebtedness	66

	SECTION 6.02. Liens	67

	SECTION 6.03. Fundamental Changes	68

	SECTION 6.04. Dispositions	68

	SECTION 6.05. Investments, Loans, Advances, Guarantees and Acquisitions	70

	SECTION 6.06. Swap Agreements	70

	SECTION 6.07. Transactions with Affiliates	71

	SECTION 6.08. Restricted Payments	71

	SECTION 6.09. Restrictive Agreements	71

	SECTION 6.10. Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents	72

	SECTION 6.11. Sale and Leaseback Transactions	73

	SECTION 6.12. Financial Covenants	73

	Article VII Events of Default	73

	SECTION 7.01. Events of Default	73

	SECTION 7.02. Application of Payments	75

	Article VIII The Administrative Agent	76

	SECTION 8.01. Authorization and Action	76

	SECTION 8.02. Administrative Agent’s Reliance, Indemnification, Etc	78

	SECTION 8.03. Posting of Communications	79

	SECTION 8.04. The Administrative Agent Individually	80

	SECTION 8.05. Successor Administrative Agent	81

2

TABLE OF CONTENTS
(continued)
Page

						
	SECTION 8.06. Acknowledgments of Lenders	81

	SECTION 8.07. Certain ERISA Matters	83

	Article IX Miscellaneous	84

	SECTION 9.01. Notices	84

	SECTION 9.02. Waivers; Amendments	85

	SECTION 9.03. Expenses; Indemnity; Damage Waiver	86

	SECTION 9.04. Successors and Assigns	88

	SECTION 9.05. Survival	91

	SECTION 9.06. Counterparts; Integration; Effectiveness; Electronic Execution	91

	SECTION 9.07. Severability	92

	SECTION 9.08. Right of Setoff	92

	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process	93

	SECTION 9.10. WAIVER OF JURY TRIAL	93

	SECTION 9.11. Headings	94

	SECTION 9.12. Confidentiality	94

	SECTION 9.13. USA PATRIOT Act	95

	SECTION 9.14. Releases of Subsidiary Guarantors	95

	SECTION 9.15. Interest Rate Limitation	95

	SECTION 9.16. No Fiduciary Duty, etc	96

	SECTION 9.17. Acknowledgment and Consent to Bail-In of EEA Financial Institutions	96

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TABLE OF CONTENTS

			
	SCHEDULES:

	
	Schedule 2.01 – Commitments
	Schedule 3.01 – Subsidiaries
	Schedule 3.06 – Disclosed Matters
	Schedule 6.01 – Existing Indebtedness
	Schedule 6.02 – Existing Liens
Schedule 6.09 – Restrictive Agreements

	
	EXHIBITS:

	
	Exhibit A – Form of Assignment and Assumption
	Exhibit B – Form of Opinion of Loan Parties’ Counsel
	Exhibit C – [Reserved]
	Exhibit D – [Reserved]
	Exhibit E – Compliance Certificate
	Exhibit F – Form of Subsidiary Guaranty
	Exhibit G-1 – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)
	Exhibit G-2 – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)
	Exhibit G-3 – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)
	Exhibit G-4 – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)
	Exhibit H-1 – Form of Borrowing Request
	Exhibit H-2 – Form of Interest Election Request
	Exhibit I – Form of Revolving Loan Note

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364-DAY CREDIT AGREEMENT (this “Agreement”) dated as of March 26, 2021 among ARCOSA, INC., a Delaware corporation (the “Borrower”), the LENDERS from time to time party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent and BANK OF AMERICA, N.A., as Syndication Agent.
WITNESSETH:
In consideration of the mutual covenants and agreements contained herein and in consideration of the loans which may hereafter be made by Lenders to the Borrower, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Article I
Definitions
SECTION 1.01.  Defined Terms
.  As used in this Agreement, the following terms have the meanings specified below:
“ABR” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Alternate Base Rate.
“Adjusted EURIBOR Rate” means, with respect to any Eurocurrency Borrowing denominated in Euros for any Interest Period, an interest rate per annum equal to (a) the EURIBOR Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
“Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing denominated in any Agreed Currency (other than Euros) for any Interest Period or for any ABR Borrowing based on the Adjusted LIBO Rate, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.
 “Administrative Agent” means JPMorgan Chase Bank, N.A. (including its branches and affiliates), in its capacity as administrative agent for the Lenders hereunder.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.
“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.
“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.
“Aggregate Revolving Commitment” means the aggregate of the Revolving Commitments of all of the Lenders, as reduced or increased from time to time pursuant to the terms and conditions hereof.  As of the Effective Date, the Aggregate Revolving Commitment is $150,000,000.

“Agreed Currencies” means (a) Dollars, (b) euro, (c) Pounds Sterling, (d) Canadian Dollars, (e) Mexican Pesos and (f) any other currency (i) that is a lawful currency (other than Dollars) that is readily available and freely transferable and convertible into Dollars, (ii) for which a LIBOR Screen Rate is available as determined by the Administrative Agent and (iii) mutually agreed upon by the Borrower, Lenders and the Administrative Agent; provided that if any Agreed Currency shall cease to be readily available and freely transferable and convertible into Dollars as determined by the Administrative Agent, such currency shall cease to be an Agreed Currency. 
“Agreement” has the meaning assigned to such term in the preamble.
“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 NYFRB Rate in effect on such day plus 1⁄2 of one percent (1%) and (c) the Adjusted LIBO Rate for a one month Interest Period in Dollars on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus one percent (1%), provided that for the purpose of this definition the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one month Interest Period in Dollars, the Interpolated Rate) at approximately 11:00 a.m. London time on such day, subject to the interest rate floors set forth therein.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively.  If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.14 hereof (for the avoidance of doubt, only until the Benchmark Replacement has been determined pursuant to Section 2.14(c)), then the Alternate Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the Alternate Base Rate as so determined pursuant to the foregoing would be less than 1.00% per annum, such rate shall be deemed to be 1.00% per annum for purposes of this Agreement.
“Amended and Restated Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as of January 2, 2020, among the Borrower, the lender parties thereto and the Administrative Agent, and as amended by that certain Amendment No. 1 to the Amended and Restated Credit Agreement, dated as of March 26, 2021.
“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery or corruption.
“Anti-Money Laundering Laws” shall mean any and all laws, statutes, regulations or obligatory government orders, decrees, ordinances or rules related to terrorism financing, money laundering, any predicate crime to money laundering or any financial record keeping, including any applicable provision of the Patriot Act and The Currency and Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act,” 31 U.S.C. §§ 5311-5330<tel:5311-5330> and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959).
 “Applicable Percentage” means, with respect to any Lender, with respect to Revolving Loans, the percentage equal to a fraction the numerator of which is such Lender’s Revolving Commitment and the denominator of which is the aggregate Revolving Commitments of all Revolving Lenders (and, if the Revolving Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Revolving Commitments most recently in effect, giving effect to any assignments); provided that when a Defaulting Lender shall exist, any such Defaulting Lender’s Revolving Commitment shall be disregarded in such calculation.
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“Applicable Rate” means, for any day, with respect to any Eurocurrency Loan or any ABR Loan or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Applicable Rate for Eurocurrency Loans”, “Applicable Rate for ABR Loans” or “Commitment Fee”, as the case may be, based upon the Pricing Level applicable on such date:
															
	Pricing Level	Total Leverage Ratio	Commitment Fee	Applicable Rate for Eurocurrency Loans

	Applicable Rate for ABR Loans
	Level I	< 1.00 to 1.00	0.20%	1.25%

	0.25%
	Level II	> 1.00 to 1.00 but 
< 2.00 to 1.00
	0.25%	1.50%	0.50%
	Level III	> 2.00 to 1.00 but 
< 2.50 to 1.00
	0.30%	1.75%

	0.75%
	Level IV	> 2.50 to 1.00

	0.35%	2.00%

	1.00%

The Pricing Level shall be determined in accordance with the foregoing table based on the Borrower’s then-current Leverage Ratio.
If at any time the Borrower fails to deliver the Financials on or before the date the Financials are due pursuant to Section 5.01, Pricing Level IV shall be deemed applicable for the period commencing three (3) Business Days after such required date of delivery and ending on the date which is three (3) Business Days after the Financials are actually delivered, after which the Pricing Level shall be determined in accordance with the table above as applicable.
Except as otherwise provided in the paragraph below, adjustments, if any, to the Pricing Level then in effect shall be effective three (3) Business Days after the Administrative Agent has received the applicable Financials (it being understood and agreed that each change in Pricing Level shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change).
Notwithstanding the foregoing, Pricing Level I shall be deemed to be applicable until the Administrative Agent’s receipt of the applicable Financials for the Borrower’s first fiscal quarter ending after the Effective Date (unless such Financials demonstrate that Pricing Level II, III or IV should have been applicable during such period, in which case such other Pricing Level shall be deemed to be applicable during such period) and adjustments to the Pricing Level then in effect shall thereafter be effected in accordance with the preceding paragraphs.
“Approved Electronic Platform” has the meaning assigned to such term in Section 8.03(a).
“Approved Fund” has the meaning assigned to such term in Section 9.04(b).
“Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form (including electronic records generated by the use of an electronic platform) approved by the Administrative Agent.
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“Attributable Receivables Indebtedness” means, at any time, the principal amount of Indebtedness which (i) if a Permitted Receivables Facility is structured as a lending agreement or other similar agreement, constitutes the principal amount of such Indebtedness or (ii) if a Permitted Receivables Facility is structured as a purchase agreement or other similar agreement, would be outstanding at such time under the Permitted Receivables Facility if the same were structured as a lending agreement rather than a purchase agreement or such other similar agreement (whether such amount is described as “capital” or otherwise).
“Authorized Officer” means the Chairman, the President, the Chief Financial Officer, any Senior Vice President, any Vice President or the Treasurer of any Loan Party or any other officer of any Loan Party specified to the Administrative Agent in writing by any of the aforementioned officers of such Loan Party.
“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 2.14(g).
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a voluntary or involuntary 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 or has had any order for relief in such proceeding entered in respect thereof, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, unless such ownership interest results in or provides 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 permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.
“Benchmark” means, initially, the Relevant Rate; provided that, if a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to the Relevant Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.14(c) or (d).
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“Benchmark Replacement” means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date; provided that, in the case of any Loan denominated in an Foreign Currency, “Benchmark Replacement” shall mean the alternative set forth in (3) below:
(1)    the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;
(2)    the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;
(3)    the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for syndicated credit facilities denominated in the applicable Agreed Currency at such time; and (b) the related Benchmark Replacement Adjustment;
provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided further that solely with respect to a Loan denominated in Dollars, notwithstanding anything to the contrary in this Agreement or in any other Loan Document, upon the occurrence of a Term SOFR Transition Event, and the delivery of a Term SOFR Notice, on the applicable Benchmark Replacement Date the “Benchmark Replacement” shall revert to and shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment, as set forth in clause (1) of this definition (subject to the first proviso above).
If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:
(1) for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first alternative set forth in the order below that can be determined by the Administrative Agent:
(a) the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor; and
(b) the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be 
5

effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and
(2) for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for syndicated credit facilities denominated in the applicable Agreed Currency at such time;
provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion.
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Alternate Base Rate,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).
“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark: 
(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); 
(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein;
(3) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the date a Term SOFR Notice is provided to the Lenders and the Borrower pursuant to Section 2.14(d); or
(4) in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of 
6

such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders.
For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event” means, with respect to any Benchmark, the occurrence of one or more of the following events with respect to the then-current Benchmark: 
(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);
(2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), in each case, which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or
(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative.
For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Unavailability Period” means, with respect to any Benchmark, the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.14 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.14.
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“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.
“Beneficial Ownership Certification” means a certification regarding beneficial ownership or control as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Part 4 of Subtitle B of Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
“Borrower” means Arcosa, Inc., a Delaware corporation.
“Borrowing” means a Revolving Borrowing of the same Type, made, converted or continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect.
“Borrowing Request” means a request by the Borrower for a Revolving Borrowing in accordance with Section 2.03, which shall be substantially in the form attached hereto as Exhibit H-1 or any other form approved by the Administrative Agent.
“Burdensome Restrictions” means any consensual encumbrance or restriction of the type described in clause (a) or (b) of Section 6.09.
“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 Eurocurrency Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in the relevant Agreed Currency in the London interbank market or the principal financial center of any relevant Foreign Currency (and, if the Borrowings which are the subject of a borrowing, drawing, payment, reimbursement or rate selection are denominated in euro, the term “Business Day” shall also exclude any day on which the TARGET2 payment system is not open for the settlement of payments in Euro).
“Canadian Dollars” means the lawful currency of Canada.
“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) Property, which obligations are required to be classified and accounted for as capital lease obligations on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.
“Casualty Event” means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of the Borrower or any Subsidiary and, with respect to clause (b) of the definition of “Prepayment Event”, to the extent that the cost to the Borrower or such Subsidiary to replace, rebuild or repair such property or asset would be equal to or greater than $15,000,000.
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“CDOR Screen Rate” means on any day for the relevant Interest Period, the annual rate of interest equal to the average rate applicable to Canadian dollar Canadian bankers’ acceptances for the applicable period that appears on the “Reuters Screen CDOR Page” as defined in the International Swap Dealer Association, Inc. definitions, as modified and amended from time to time (or, in the event such rate does not appear on such page or screen, on any successor or substitute page or 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), rounded to the nearest 1/100th of 1% (with .005% being rounded up), as of 10:15 a.m. Toronto local time on the first day of such Interest Period and, if such day is not a business day, then on the immediately preceding business day (as adjusted by Administrative Agent after 10:15 a.m. Toronto local time to reflect any error in the posted rate of interest or in the posted average annual rate of interest).  If the CDOR Screen Rate shall be less than zero, the CDOR Screen Rate shall be deemed to be zero for purposes of this Agreement.
“Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity Interests representing more than thirty-five percent (35%) of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were not (i) directors of the Borrower on the date of this Agreement, (ii) nominated or appointed by the board of directors of the Borrower or (iii) approved by the board of directors of the Borrower as director candidates prior to their election; (c) the acquisition of direct or indirect Control of the Borrower by any Person or group; or (d) the occurrence of a change in control, or other similar provision, as defined in any agreement or instrument evidencing any Material Indebtedness of the Borrower (triggering a default or mandatory prepayment, which default or mandatory prepayment has not been waived in writing). 
“Change in Law” means the occurrence, after the date of this Agreement (or with respect to any Lender, if later, the date on which such Lender becomes a Lender), of any of the following:  (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (c) compliance by any Lender (or, for purposes of Section 2.15(b), by any lending officer of such Lender or by such Lender’s holding company, if any) with any request, rules, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority; provided however, that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof, and (ii) 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 the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” regardless of the date enacted, adopted, issued or implemented.
“Code” means the Internal Revenue Code of 1986, as amended.
“Co-Documentation Agent” means each of Wells Fargo Bank, National Association and Truist Bank, formerly known as Branch Banking and Trust Company and as successor by merger to SunTrust Bank, each in its respective capacity as co-documentation agent for the credit facility evidenced by this Agreement.
“Co-Management Agent” means each of U.S. Bank National Association and PNC Bank, National Association, each in its respective capacity as co-management agent for the credit facility evidenced by this Agreement. 
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“Commitment” means, with respect to each Lender, its Revolving Commitment.
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Communications” has the meaning assigned to such term in Section 8.03(d).
“Computation Date” has the meaning assigned to such term in Section 2.04.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Consolidated EBITDA” means, with reference to any period, (a) Consolidated Net Income plus (b) without duplication and to the extent deducted from revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense for income and franchise taxes paid or accrued, (iii) depreciation, (iv) amortization, (v) extraordinary or non-recurring non-cash expenses or losses incurred other than in the ordinary course of business, (vi) non-cash expenses related to stock based compensation, (vii) writeoffs or amortization of goodwill, (viii) non-recurring fees and expenses incurred in connection with Permitted Acquisitions, (ix) all amounts incurred and payable for all fees, commissions and charges under this Agreement and the other Loan Documents including any amendment, modification, or supplement hereof or thereof minus (c) to the extent included in Consolidated Net Income, (i) income tax credits and refunds (to the extent not netted from tax expense), (ii) any cash payments made during such period in respect of items described in clauses (b)(v) or (b)(vi) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were incurred and (iii) extraordinary, unusual or non-recurring income or gains realized other than in the ordinary course of business, all calculated for the Borrower and its Subsidiaries in accordance with GAAP on a consolidated basis.  For the purposes of calculating Consolidated EBITDA for any period of four consecutive fiscal quarters (each such period, a “Reference Period”), (A) if at any time during such Reference Period the Borrower or any Subsidiary shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the Property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such Reference Period, and (B) if during such Reference Period the Borrower or any Subsidiary shall have made a Material Acquisition, Consolidated EBITDA for such Reference Period shall be calculated after giving effect thereto on a pro forma basis as if such Material Acquisition occurred on the first day of such Reference Period.  As used in this definition, “Material Acquisition” means any acquisition of Property or series of related acquisitions of Property or series of acquisitions in a three (3) month period (whether related or not) that (a) constitutes (i) assets comprising all or substantially all or any significant portion of a business or operating unit of a business, or (ii) all or substantially all of the common stock or other Equity Interests of a Person, and (b) involves the payment of consideration by the Borrower and the Subsidiaries in an amount material to the business of the Loan Parties, as reasonably determined by the Borrower; and “Material Disposition” means any Disposition of Property or series of related Dispositions of Property that yields gross proceeds to the Borrower and the Subsidiaries in an amount material to the business of the Loan Parties, as reasonably determined by the Borrower.
“Consolidated Interest Expense” means, with reference to any period, the interest expense (including without limitation interest expense under Capital Lease Obligations that is treated as interest in accordance with GAAP) of the Borrower and its Subsidiaries calculated on a consolidated basis for such period with respect to (a) all outstanding Indebtedness of the Borrower and its Subsidiaries allocable to such period in accordance with GAAP (including, without limitation, all commissions, discounts and other fees and charges 
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owed with respect to letters of credit and bankers acceptance financing and net costs under interest rate Swap Agreements to the extent such net costs are allocable to such period in accordance with GAAP) and (b) the interest, yield or discount, as applicable, component of all Attributable Receivable Indebtedness of the Borrower and its Subsidiaries for such period.  In the event that the Borrower or any Subsidiary shall have completed a Material Acquisition or a Material Disposition since the beginning of the relevant period, Consolidated Interest Expense shall be determined for such period on a pro forma basis as if such acquisition or Disposition, and any related incurrence or repayment of Indebtedness, had occurred at the beginning of such period.
“Consolidated Net Income” means, with reference to any period, the net income (or loss) of the Borrower and its Subsidiaries calculated in accordance with GAAP on a consolidated basis (without duplication) for such period.
“Consolidated Net Worth” means, as of the date of any determination thereof, the consolidated shareholders’ equity of the Borrower and its Subsidiaries (including redeemable common stock) calculated in accordance with GAAP on a consolidated basis as of such date.
“Consolidated Total Assets” means, as of the date of any determination thereof, total assets of the Borrower and its Subsidiaries calculated in accordance with GAAP on a consolidated basis as of such date.
“Consolidated Total Indebtedness” means at any date the sum, without duplication, of (a) the aggregate Indebtedness of the Borrower and its Subsidiaries calculated on a consolidated basis as of such date in accordance with GAAP, and (b) Indebtedness of the type referred to in clause (a) hereof of another Person guaranteed by the Borrower or any of its Subsidiaries, but excluding in each case (to the extent included therein), without duplication the aggregate amount of Indebtedness of the Borrower and its Subsidiaries consisting of the undrawn amount of all letters of credit outstanding and bankers acceptances as of such date.  For the avoidance of doubt, Consolidated Total Indebtedness includes all Attributable Receivables Indebtedness.
“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.  The terms “Controlling” and “Controlled” have meanings correlative thereto.
“Corresponding Tenor” with respect to a Benchmark Replacement means a tenor (including overnight) having approximately the same length (disregarding business day adjustment) as the applicable tenor for the applicable Interest Period with respect to the LIBO Rate.
“Covered Entity” means any of the following:
(i)    a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(ii)    a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(iii)    a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Credit Event” means a Borrowing.
“Credit Party” means the Administrative Agent or any Lender.
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“Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.
“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.
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. 
“Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans or (ii) 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 (3) Business Days after request by a Credit Party, 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 under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit Party’s receipt of such certification in form and substance satisfactory to it and the Administrative Agent, or (d) has become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action.
“Delaware Divided LLC” means any Delaware LLC which has been formed upon the consummation of a Delaware LLC Division.
“Delaware LLC” means any limited liability company organized or formed under the laws of the State of Delaware.
“Delaware LLC Division” means the statutory division of any Delaware LLC into two or more Delaware LLCs pursuant to Section 18-217 of the Delaware Limited Liability Company Act.
“Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06.
“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (in one transaction or in a series of transactions and whether effected pursuant to a division or otherwise) of any Property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests of a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith and including any disposition of property to a Delaware Divided LLC pursuant to a Delaware LLC Division. 
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“Dollar Amount” of any currency at any date means (a) the amount of such currency if such currency is Dollars or (b) the equivalent amount thereof in Dollars if such currency is a Foreign Currency, calculated on the basis of the Exchange Rate for such currency, on or as of the most recent Computation Date provided for in Section 2.04.
“Dollars” or “$” refers to lawful money of the United States of America.
“Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction located in the United States of America other than a Subsidiary substantially all of the assets of which consist of the Equity Interests of (and/or receivables or other amounts due from) one or more “controlled foreign corporations” within the meaning of Section 957 of the Code, so long as such Subsidiary (i) does not conduct any business or activities other than the ownership of such Equity Interests and/or receivables and (ii) does not incur and is not otherwise be liable for any Indebtedness or other liabilities.
“Early Opt-in Election” means:
(a)    in the case of Loans denominated in Dollars, the occurrence of:

(1)    a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding Dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and
(2)    the joint election by the Administrative Agent and the Borrower to trigger a fallback from the LIBO Rate and the provision by the Administrative Agent of written notice of such election to the Lenders; and
(b)     in the case of Loans denominated in any Foreign Currency, the occurrence of:

(1)     (i) a determination by the Administrative Agent or (ii) a notification by the Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined that syndicated credit facilities denominated in the applicable Foreign Currency being executed at such time, or that include language similar to that contained in Section 2.14 are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the LIBO Rate, and 
(2)     (i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent. 
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
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“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
 “Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).
“Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.
 “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to (i) the environment, (ii) preservation or reclamation of natural resources, (iii) the management, release or threatened release of any Hazardous Material or (iv) health and safety matters.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing.
“Equivalent Amount” means, for any amount of any Foreign Currency, at the time of determination thereof, (a) if such amount is expressed in such Foreign Currency, such amount and (b) if such amount is expressed in Dollars, the equivalent of such amount in such Foreign Currency determined by using the rate of exchange for the purchase of such Foreign Currency with Dollars last provided (either by publication or otherwise provided to the Administrative Agent) by the applicable Reuters source on the Business Day (New York City time) immediately preceding the date of determination or if such service ceases to be available or ceases to provide a rate of exchange for the purchase of such Foreign Currency with Dollars, as provided by such other publicly available information service which provides that rate of exchange at such time in place of Reuters chosen by the Administrative Agent in its sole discretion (or if such service ceases to be available or ceases to provide such rate of exchange, the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion).
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or Section 4001(14) of ERISA or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.
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“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 failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived, with respect to any Plan; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) 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 Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice concerning the imposition upon the Borrower or any of its ERISA Affiliates of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent, within the meaning of Title IV of ERISA.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.
“EURIBOR Interpolated Rate” means, at any time, with respect to any Eurocurrency Borrowing denominated in Euros and for any Interest Period, the rate per annum (rounded to the same number of decimal places as the EURIBOR Screen Rate) 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 EURIBOR Screen Rate for the longest period (for which the EURIBOR Screen Rate is available for Euros) that is shorter than the Impacted EURIBOR Rate Interest Period; and (b) the EURIBOR Screen Rate for the shortest period (for which the EURIBOR Screen Rate is available for Euros) that exceeds the Impacted EURIBOR Rate Interest Period, in each case, at such time; provided that, if any EURIBOR Interpolated Rate shall be less than 0%, such rate shall be deemed to be 0% for the purposes of this Agreement.
“EURIBOR Rate” means, with respect to any Eurocurrency Borrowing denominated in Euros and for any Interest Period, the EURIBOR Screen Rate at approximately 11:00 a.m., Brussels time, two TARGET days prior to the commencement of such Interest Period; provided that, if the EURIBOR Screen Rate shall not be available at such time for such Interest Period (an “Impacted EURIBOR Rate Interest Period”) with respect to Euros then the EURIBOR Rate shall be the EURIBOR Interpolated Rate.
“EURIBOR Rate” means, with respect to any Eurocurrency Borrowing denominated in Euros and for any Interest Period, the EURIBOR Screen Rate at approximately 11:00 a.m., Brussels time, two (2) TARGET2 Days prior to the commencement of such Interest Period; provided that, if the EURIBOR Screen Rate shall not be available at such time for such Interest Period (an “Impacted EURIBOR Rate Interest Period”) with respect to Euros, then the EURIBOR Rate shall be the EURIBOR Interpolated Rate.
“Euro” and/or “€” means the single currency of the Participating Member States.
“Eurocurrency” when used in reference to a currency means a Foreign Currency and when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bear interest at a rate determined by reference to the Adjusted LIBO Rate or the Adjusted EURIBOR Rate.
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“Eurocurrency Payment Office” of the Administrative Agent means, for each Foreign Currency, the office, branch, affiliate or correspondent bank of the Administrative Agent for such currency as specified from time to time by the Administrative Agent to the Borrower and each Lender.
“Event of Default” has the meaning assigned to such term in Section 7.01.
“Exchange Rate” means, on any day, (a) with respect to any Foreign Currency, the rate of exchange for the purchase of Dollars with such Foreign Currency in the London foreign exchange market at or about 11:00 a.m. London time (or New York time, as applicable) on a particular day as displayed by ICE Data Services as the “ask price”, or as displayed on such other information service which publishes that rate of exchange from time to time in place of ICE Data Services (or if such service ceases to be available, the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion) and (b) if such amount is denominated in any other currency (other than Dollars), the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion.
 “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. Federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f) and (d) any U.S. Federal withholding Taxes imposed under FATCA.
“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as shall be set forth on the Federal Reserve Bank of New York’s Website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate; provided that if the Federal Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement. 
“Federal Reserve Bank of New York’s Website” means the website of the NYFRB at http://www.newyorkfed.org, or any successor source.
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“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States of America.
“Fee Letter” means that certain Fee Letter dated as of March 25, 2021, by and among the Borrower and JPMorgan Chase Bank, N.A.
“Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower.
“Financials” means the annual or quarterly financial statements, and accompanying certificates and other documents, of the Borrower and its Subsidiaries required to be delivered pursuant to Section 5.01(a) or 5.01(b).
“Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the LIBO Rate or EURIBOR Rate, as applicable.
“Foreign Currencies” means Agreed Currencies other than Dollars.
“Foreign Currency Sublimit” means $50,000,000.
“Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.
“GAAP” means generally accepted accounting principles in the United States of America.
“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” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease Property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary course of business.
“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.
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“Hostile Acquisition” means (a) the acquisition of the Equity Interests of a Person through a tender offer or similar solicitation of the owners of such Equity Interests which has not been approved (prior to such acquisition) by the board of directors (or any other applicable governing body) of such Person or by similar action if such Person is not a corporation and (b) any such acquisition as to which such approval has been withdrawn.
“IBA” has the meaning assigned to such term in Section 1.06.
“Impacted EURIBOR Rate Interest Period” has the meaning assigned to such term in the definition of “EURIBOR Rate.”
 “Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”. 
“Impacted LIBO Rate Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate.”
“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money or with respect to deposits or advances of any kind (excluding deposits from customers received in the ordinary course of business), (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to Property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of Property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on Property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, provided that the amount of any Indebtedness under this clause (f) that has not been assumed by such Person shall be equal to the lesser of the stated amount of such Indebtedness and the fair market value of the Property securing such Indebtedness, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) all Attributable Receivables Indebtedness of such Person and (l) liabilities of such Person in respect of any Swap Agreement, provided that, for purposes of this definition, such liabilities of such Person in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Person would be required to pay if such Swap Agreement were terminated at such time.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.  Indebtedness of a Person shall not include the amount of the purchase price of an asset held back by such Person to satisfy warranty, indemnity or other unperformed obligations of the applicable seller.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a) hereof, Other Taxes.
“Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).
“Interest Coverage Ratio” has the meaning assigned to such term in Section 6.12(b).
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“Interest Election Request” means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.08 in substantially the form attached hereto as Exhibit H-2, or any other form approved by the Administrative Agent.
“Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each March, June, September and December and the Maturity Date and (b) with respect to any Eurocurrency Loan, the last day of each Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurocurrency 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 and the Maturity Date.
“Interest Period” means with respect to any Eurocurrency Borrowing, the period commencing on the date of such Eurocurrency Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect; provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.
“Interpolated Rate” means, at any time, for any Interest Period, 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 applicable Screen Rate for the longest period (for which the applicable Screen Rate is available for the applicable currency) that is shorter than the Impacted Interest Period and (b) the applicable Screen Rate for the shortest period (for which the applicable Screen Rate is available for the applicable currency) that exceeds the Impacted Interest Period, in each case, at such time.
“IRS” means the United States Internal Revenue Service.
“Joint Lead Arrangers” means JPMorgan Chase Bank, N.A. and BofA Securities, Inc., each in its capacity as a Joint Lead Arranger and Joint Bookrunner.  
“Lender Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.
“Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a Lender hereunder pursuant to an Assignment and Assumption or other documentation contemplated hereby, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption or other documentation contemplated hereby.  
“Leverage Ratio” has the meaning assigned to such term in Section 6.12(a).
“LIBO Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) 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 applicable LIBO Screen Rate for the longest period 
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(for which the applicable LIBO Screen Rate is available for the applicable currency) that is shorter than the applicable Impacted LIBO Rate Interest Period and (b) the applicable LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available for the applicable currency) that exceeds the applicable Impacted LIBO Rate Interest Period, in each case, at such time; provided that, if any LIBO Interpolated Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“LIBO Rate” means, with respect to any Eurocurrency Borrowing denominated in any Agreed Currency (other than Euros) and for any applicable Interest Period or for any ABR Borrowing based on the Adjusted LIBO Rate, the LIBO Screen Rate at approximately 11:00 a.m., London time, on the Quotation Day for such Agreed Currency and Interest Period (or such other time as provided by the definition of Alternate Base Rate); provided that, if the LIBO Screen Rate shall not be available at such time for such Interest Period (an “Impacted LIBO Rate Interest Period”), then the LIBO Rate for such Agreed Currency and such Interest Period shall be the LIBO Interpolated Rate, subject to Section 2.14 in the event that the Administrative Agent shall conclude that it shall not be possible to determine such LIBO Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error).  Notwithstanding the above, to the extent that “LIBO Rate” or “Adjusted LIBO Rate” is used in connection with an ABR Borrowing, such rate shall be determined as modified by the definition of Alternate Base Rate.  It is understood and agreed that all of the terms and conditions of this definition of “LIBO Rate” shall be subject to Section 2.14.
“LIBO Screen Rate” means, for any day and time, with respect to any Eurocurrency Borrowing denominated in any Agreed Currency (other than Euros) and for any Interest Period or for any ABR Borrowing based on the Adjusted LIBO Rate, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for such Agreed Currency for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event 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); provided that, if the LIBO Screen Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.  The term “Lien” shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, liens and other statutory, constitutional or common law rights of landlords, leases and other title exceptions and encumbrances affecting Property.  For purposes of this Agreement, the Borrower and any Subsidiary shall be deemed to be the owner of any Property which it has acquired or holds subject to a conditional sale agreement, financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person for security purposes.
“Loan Documents” means this Agreement, any promissory notes issued pursuant to Section 2.10(g), the Subsidiary Guaranty, and all other agreements, instruments, documents and certificates identified in Section 4.01 executed and delivered to, or in favor of, the Administrative Agent or any Lenders and including all other pledges, powers of attorney, consents, assignments, contracts, notices and all other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party, or any employee of any Loan Party, and delivered to the Administrative Agent or any Lender in connection with this Agreement or the transactions contemplated hereby.  Any reference in this Agreement or any other Loan Document to a Loan 
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Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall refer to this Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.
“Loan Parties” means, collectively, the Borrower and the Subsidiary Guarantors.
“Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.
“Local Screen Rate” means either the CDOR Screen Rate or the TIIE Screen Rate.
“Local Time” means (a) New York City time in the case of a Loan or Borrowing denominated in Dollars and (b) local time in the case of a Loan or Borrowing denominated in a Foreign Currency (it being understood that such local time shall mean London, England time unless otherwise notified by the Administrative Agent).
“Margin Stock” means margin stock within the meaning of Regulations T, U and X, as applicable. 
“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or financial condition of the Loan Parties, taken as a whole, (b) the ability of any Loan Party to perform any of its obligations under this Agreement or any other Loan Document or (c) the validity or enforceability of this Agreement or any and all other Loan Documents or the rights or remedies of the Administrative Agent and the Lenders thereunder.
“Material Domestic Subsidiary” means each Domestic Subsidiary (other than any Receivables Entity) (a) which, as of the most recent fiscal quarter of the Borrower, for the period of four consecutive fiscal quarters then ended, for which financial statements have been delivered pursuant to Section 5.01(a) or (b) (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the most recent financial statements referred to in Section 3.04(a)), contributed (together with any Subsidiary of such Domestic Subsidiary) greater than ten percent (10%) of Consolidated EBITDA for such period, (b) which contributed (together with any Subsidiary of such Domestic Subsidiary) greater than ten percent (10%) of Consolidated Total Assets as of such date or (c) which accounts (together with any Subsidiary of such Domestic Subsidiary) for more than ten percent (10%) of the consolidated revenues of the Borrower and its Subsidiaries as determined for the most-recently ended fiscal year ending on or prior to such date of determination; provided that (i) any Domestic Subsidiary that has a Subsidiary that is a Material Domestic Subsidiary shall itself constitute a Material Domestic Subsidiary, and (ii) in the event that the Material Domestic Subsidiaries (after giving effect to clause (i) of this proviso and any other designation pursuant to this clause (ii) of this proviso), when combined with the Borrower (on a standalone basis), at any time represent less than seventy-five percent (75%) of (x) Consolidated EBITDA for such period, (y) Consolidated Total Assets as of such date or (z) the consolidated revenues of the Borrower and its Subsidiaries as determined for the most-recently ended fiscal year ending on or prior to such date of determination, the Borrower shall designate additional Domestic Subsidiaries (other than Receivables Entities) as Material Domestic Subsidiaries in accordance with Section 5.09 so that the thresholds in this proviso shall have been satisfied.
“Material Indebtedness” means Indebtedness (other than the Loans but, for the avoidance of doubt, including Indebtedness in respect of the Amended and Restated Credit Agreement), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $40,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any Swap Agreement at 
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any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.
“Maturity Date” means March 25, 2022.
“Mexican Pesos” means the lawful currency of the Republic of Mexico.
“Moody’s” means Moody’s Investors Service, Inc.
“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.
“Net Cash Proceeds” means, with respect to any event (a) the cash proceeds received in respect of such event net of (b) the sum of (i) all fees and out-of-pocket expenses incurred in connection with such event, (ii) in the case of a Disposition of an asset (including pursuant to a Casualty Event or a condemnation or similar proceeding), the amount of (A) all payments required to be made as a result of such Disposition to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment as a result of such event or to repay or reduce other contractual obligations required to be repaid or reduced as a result of such event, (B) all legal, title and recording tax expense and all federal, state, provincial, foreign and local taxes required to be accrued as a liability under GAAP as a consequence of such Disposition, (C) any portion of the purchase price from such Disposition placed in escrow, whether as a reserve for adjustment of the purchase price, for satisfaction of indemnities in respect of such Disposition or otherwise in connection with such Disposition and (D) all amounts paid for the early termination of Swap Agreements required as a result of such Disposition, (iii) the amount of all Taxes paid or reasonably estimated to be payable in connection with such event, (iv) the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer) and (v) with respect to any Casualty Event, any actual and reasonable costs incurred in connection with the adjustment or settlement of any claims of in respect thereof.
“Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(e).
“Non-Quoted Currency” means any of (a) Canadian Dollars and (b) Mexican Pesos.
“NYFRB” means the Federal Reserve Bank of New York.
“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Administrative Agent from a Federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), obligations and liabilities of any Loan Party to any of the Lenders, the Administrative Agent or any indemnified party, individually or collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, 
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operation of law or otherwise, arising or incurred under this Agreement or any of the other Loan Documents or reimbursement or other obligations incurred or any of the other instruments at any time evidencing any thereof.
“OFAC” means the Office of Foreign Assets Control of the U.S. Department of the Treasury.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.19).
“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight Eurocurrency borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on the Federal Reserve Bank of New York’s Website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.
“Overnight Foreign Currency Rate” means, for any amount payable in a Foreign Currency, the rate of interest per annum as determined by the Administrative Agent at which overnight or weekend deposits in the relevant currency (or if such amount due remains unpaid for more than three (3) Business Days, then for such other period of time as the Administrative Agent may elect) for delivery in immediately available and freely transferable funds would be offered by the Administrative Agent to major banks in the interbank market upon request of such major banks for the relevant currency as determined above and in an amount comparable to the unpaid principal amount of the related Credit Event, plus any taxes, levies, imposts, duties, deductions, charges or withholdings imposed upon, or charged to, the Administrative Agent by any relevant correspondent bank in respect of such amount in such relevant currency.
“Participant” has the meaning assigned to such term in Section 9.04(c).
“Participant Register” has the meaning assigned to such term in Section 9.04(c).
“Participating Member State” means any member state of the European Union that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Union relating to economic and monetary union.
“Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).
“Payment” has the meaning assigned to it in Section 8.06(c)(i).
“Payment Notice” has the meaning assigned to it in Section 8.06(c)(i)(ii).
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“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.
“Permitted Acquisition” means any acquisition (whether by purchase, merger, consolidation or otherwise but excluding in any event a Hostile Acquisition) or series of related acquisitions by the Borrower or any of its Subsidiaries of (a) all or substantially all the assets of or (b) all or substantially all the Equity Interests in, a Person or division or line of business of a Person, if, at the time of and immediately after giving effect thereto, (i) no Default has occurred and is continuing or would arise after giving effect (including giving effect on a pro forma basis) thereto, (ii) the Borrower and the Subsidiaries are in compliance, on a pro forma basis, with the covenants contained in Section 6.12 recomputed as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements are available, as if such acquisition (and any related incurrence or repayment of Indebtedness, with any new Indebtedness being deemed to be amortized over the applicable testing period in accordance with its terms) had occurred on the first day of each relevant period for testing such compliance and (iii) in the case of an acquisition, merger or consolidation involving the Borrower, the Borrower is the surviving entity of such merger and/or consolidation.
“Permitted Encumbrances” means:
(a)    Liens imposed by law for Taxes that are not yet due or are being contested in compliance with Section 5.04;
(b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or are being contested in compliance with Section 5.04;
(c) pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance, health and wellness plans and other social security laws or regulations;
(d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;
(e) judgment Liens in respect of judgments that do not constitute an Event of Default under Section 7.01(k);
(f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any Subsidiary;
(g) leases, licenses, subleases or sublicenses granted to third parties in the ordinary course of business and not interfering in any material respect with the ordinary conduct of business of the Borrower or any Subsidiary;
(h) Liens in favor of a banking or other financial institution arising as a matter of law or in the ordinary course of business under customary general terms and conditions encumbering deposits or other funds maintained with a financial institution (including the right of set-off) and that are within the general parameters customary in the banking industry or arising pursuant to such banking institution’s general terms and conditions;
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(i) Liens on specific items of inventory or other goods (other than fixed or capital assets) and proceeds thereof of any Person securing such Person’s obligations in respect of bankers’ acceptances or letters of credit issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods in the ordinary course of business;
(j) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business so long as such Liens only cover the related goods; 
(k) Liens arising from precautionary Uniform Commercial Code financing statement or similar filings made in respect of (i) operating leases entered into by the Borrower or any Subsidiary and (ii) Dispositions permitted under Section 6.04(l), provided that such Liens are only with respect to the accounts receivable and proceeds thereof that are the subject of such Disposition;
(l) any set-off or netting rights granted by the Borrower or any Subsidiary pursuant to any Swap Agreement solely in respect of amounts owing under such Swap Agreements; and
(m) Liens encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course of business and not for speculative purposes;
provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.
“Permitted Investments” means:
(a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof), in each case maturing within one year from the date of acquisition thereof;
(b) investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, a credit rating of at least A-1 from S&P or P-1 from Moody’s;
(c) investments in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000;
(d) fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; and
(e) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000.
“Permitted Receivables Facility” means a receivables facility or facilities created under the Permitted Receivables Facility Documents, providing for the sale, transfer and/or pledge by the Borrower and/or one or more other Receivables Sellers of Permitted Receivables Facility Assets (thereby providing financing to the Borrower and the Receivables Sellers) to a Receivables Entity (either directly or through another 
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Receivables Seller), which in turn shall sell, transfer and/or pledge interests in the respective Permitted Receivables Facility Assets to third-party lenders or investors pursuant to the Permitted Receivables Facility Documents (with the Receivables Entity permitted to issue or convey purchaser interests, investor certificates, purchased interest certificates or other similar documentation evidencing interests in the Permitted Receivables Facility Assets) in return for the cash used by such Receivables Entity to acquire the Permitted Receivables Facility Assets from the Borrower and/or the respective Receivables Sellers, in each case as more fully set forth in the Permitted Receivables Facility Documents.
“Permitted Receivables Facility Assets” means Receivables (whether now existing or arising in the future) of the Receivables Sellers which are transferred, sold and/or pledged to a Receivables Entity pursuant to a Permitted Receivables Facility and any related Permitted Receivables Related Assets which are also so transferred, sold and/or pledged to the Receivables Entity and all proceeds thereof.
“Permitted Receivables Facility Documents” means each of the documents and agreements entered into in connection with any Permitted Receivables Facility, including all documents and agreements relating to the issuance, funding and/or purchase of certificates and purchased interests or the incurrence of loans, as applicable, all of which documents and agreements shall be in form and substance reasonably satisfactory to the Administrative Agent, in each case as such documents and agreements may be amended, modified, supplemented, refinanced or replaced from time to time so long as (i) any such amendments, modifications, supplements, refinancings or replacements do not impose any conditions or requirements on the Borrower or any Subsidiary that are more restrictive in any material respect than those in existence immediately prior to any such amendment, modification, supplement, refinancing or replacement unless otherwise consented to by the Administrative Agent, (ii) any such amendments, modifications, supplements, refinancings or replacements are not adverse in any material respect to the interests of the Lenders unless otherwise consented to by the Administrative Agent and (iii) any such amendments, modifications, supplements, refinancings or replacements are otherwise in form and substance reasonably satisfactory to the Administrative Agent.
“Permitted Receivables Related Assets” means any assets that are customarily sold, transferred and/or pledged or in respect of which security interests are customarily granted in connection with asset securitization transactions involving receivables similar to Receivables and any collections or proceeds of any of the foregoing (including, without limitation, lock-boxes, deposit accounts, records in respect of Receivables and collections in respect of Receivables).
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the 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.
“Pounds Sterling” means the lawful currency of the United Kingdom.
“Prepayment Event” means:
(a)    any Disposition of any property or asset of the Borrower or any of its Subsidiaries (whether in one transaction or in a series of transactions), or
(b)    any Casualty Event;
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in each case, to the extent that the aggregate Net Cash Proceeds received from all such Prepayment Events in any fiscal year exceeds $50,000,000. 
“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent).  Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.
“Property” means any interest in any kind of property or asset, whether real, personal or mixed (including Equity Interests).
“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
“Qualified Acquisition” means any Material Acquisition involving consideration paid by the Borrower or any of its Subsidiaries in an amount in excess of $75,000,000.
“Quotation Day” means, with respect to any Eurocurrency Borrowing for any Interest Period, (a) if the currency is Pounds Sterling or Canadian Dollars, the first day of such Interest Period, (b) if the currency is euro, the day that is two (2) TARGET2 Days before the first day of such Interest Period, and (c) for any other currency, two (2) Business Days prior to the commencement of such Interest Period (unless, in each case, market practice differs in the relevant market where the LIBO Rate for such currency is to be determined, in which case the Quotation Day will be determined by the Administrative Agent in accordance with market practice in such market (and if quotations would normally be given on more than one day, then the Quotation Day will be the last of those days)).
“Recipient” means (a) the Administrative Agent and (b) any Lender, as applicable.
 “Receivables” means any right to payment created by or arising from sales of goods, leases of goods or the rendition of services rendered no matter how evidenced whether or not earned by performance (whether constituting accounts, general intangibles, chattel paper or otherwise).
“Receivables Entity” means a wholly-owned Subsidiary which engages in no activities other than in connection with the financing of accounts receivable of the Receivables Sellers and which is designated (as provided below) as a “Receivables Entity” (a) no portion of the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by the Borrower or any Subsidiary, (ii) is recourse to or obligates the Borrower or any Subsidiary in any way (other than pursuant to Standard Securitization Undertakings) or (iii) subjects any property or asset of the Borrower or any Subsidiary, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings, (b) with which neither the Borrower nor any Subsidiary has any contract, agreement, arrangement or understanding (other than pursuant to the Permitted Receivables Facility Documents (including with respect to fees payable in the ordinary course of business in connection with the servicing of accounts receivable and related assets)) on terms less favorable to the Borrower or such Subsidiary than those that might be obtained at the time from persons that are not Affiliates of the Borrower, and (c) to which neither the Borrower nor any Subsidiary has any obligation to maintain or preserve such entity’s financial condition or cause such entity to achieve certain levels of operating results (other than pursuant to Standard Securitization Undertakings).  Any such designation shall be evidenced to the Administrative Agent by delivering to the 
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Administrative Agent an officer’s certificate of the Borrower certifying that, to the best of such officer’s knowledge and belief after consultation with counsel, such designation complied with the foregoing conditions.
“Receivables Sellers” means the Borrower and those Subsidiaries that are from time to time party to the Permitted Receivables Facility Documents (other than any Receivables Entity).
“Reference Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is the LIBO Rate, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not the LIBO Rate, the time determined by the Administrative Agent in its reasonable discretion.
“Register” has the meaning assigned to such term in Section 9.04(b).
“Regulation D” means Regulation D of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof. 
 “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents, advisors and representatives of such Person and such Person’s Affiliates.
“Relevant Governmental Body” means (i) with respect to a Benchmark Replacement in respect of Loans denominated in Dollars, the Federal Reserve Board and/or the NYFRB, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or, in each case, any successor thereto, and (ii) with respect to a Benchmark Replacement in respect of Loans denominated in a Foreign Currency, (a) the central bank for the currency in which such Benchmark Replacement is denominated or any central bank or other supervisor which is responsible for supervising either (1) such Benchmark Replacement or (2) the administrator of such Benchmark Replacement or (b) any working group or committee officially endorsed or convened by (1) the central bank for the currency in which such Benchmark Replacement is denominated, (2) any central bank or other supervisor that is responsible for supervising either (A) such Benchmark Replacement or (B) the administrator of such Benchmark Replacement, (3) a group of those central banks or other supervisors or (4) the Financial Stability Board or any part thereof.
“Relevant Rate” means (i) with respect to any Eurocurrency Borrowing denominated in an Agreed Currency (other than Euros), the LIBO Rate or (ii) with respect to any Eurocurrency Borrowing denominated in Euros, the EURIBOR Rate, as applicable.  
“Relevant Screen Rate” means (i) with respect to any Eurocurrency Borrowing denominated in an Agreed Currency (other than Euros), the LIBO Screen Rate or (ii) with respect to any Eurocurrency Borrowing denominated in Euros, the EURIBOR Screen Rate, as applicable.
“Required Lenders” means, subject to Section 2.22, 
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(a) at any time prior to the earlier of the Loans becoming due and payable pursuant to Section 7.01 or all of the Commitments terminating or expiring, Lenders having Total Credit Exposures and Unfunded Commitments representing more than fifty percent 50% of the sum of the Total Credit Exposures and Unfunded Commitments at such time, provided that, solely for purposes of declaring the Loans to be due and payable pursuant to Section 7.01, the Unfunded Commitment of each Lender shall be deemed to be zero; and
(b) for all purposes after the Loans become due and payable pursuant to Section 7.01 or the Commitments expire or terminate, Lenders having Total Credit Exposures representing more than 50% of the sum of the Total Credit Exposures.
“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.
“Responsible Officer” means the president or other executive officer of the Borrower.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any Subsidiary.
 “Revolving Borrowing” means Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurocurrency Loans, as to which a single Interest Period is in effect.
“Revolving 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 Revolving Commitments.
 “Revolving Commitment” means, with respect to each Lender, the amount set forth on Schedule 2.01 opposite such Lender’s name under the caption “Revolving Commitment”, or in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C), pursuant to which such Lender shall have assumed its Commitment, as applicable, and giving effect to (a) any reduction in such amount from time to time pursuant to Section 2.09 and (b) any reduction or increase in such amount from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04; provided, that at no time shall the aggregate of the Revolving Credit Exposure of any Lender exceed its Revolving Commitment.
“Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans at such time.
“Revolving Lenders” means the Persons listed on Schedule 2.01 as having a Revolving Commitment and any other Person that shall acquire a Revolving Commitment, other than any such Person that ceases to be a Revolving Lender pursuant to an Assignment and Assumption. 
“Revolving Loan” means a Loan made pursuant to Section 2.01.
“S&P” means Standard & Poor’s Rating Services, a Standard & Poor’s Financial Services LLC business.
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“Sale and Leaseback Transaction” means any sale or other transfer of any Property by any Person with the intent to lease such Property as lessee.
“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 and Syria).
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom, or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b) or (d) any Person otherwise the subject of any Sanctions.
“Sanctions” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom, or other relevant sanctions authority.
“Screen Rate” means the LIBOR Screen Rate and the CDOR Screen Rate collectively and individually as the context may require.
“SEC” means the United States Securities and Exchange Commission.
“SOFR” means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day.
“SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).
“SOFR Administrator’s Website” means the NYFRB’s Website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.
 “Securities Act” means the United States Securities Act of 1933. 
“Solvent” means, as to any Person as of any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts, including contingent debts, as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities, including contingent debts and liabilities, beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s property would constitute an unreasonably small capital.  The amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
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“Specified Additional Indebtedness” means Indebtedness for borrowed money (other than Indebtedness under the Amended and Restated Credit Agreement) in an aggregate principal amount equal to or greater than the then-effective Commitments incurred by the Borrower or any of its Subsidiaries after the Effective Date.
“Standard Securitization Undertakings” means representations, warranties, covenants and indemnities entered into by the Borrower or any Subsidiary thereof in connection with the Permitted Receivables Facility which are reasonably customary in an accounts receivable financing transaction.
“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, liquid asset, fees or similar requirements (including any marginal, special, emergency or supplemental reserves or other requirements) established by any central bank, monetary authority, the Federal Reserve Board, the Financial Conduct Authority, the Prudential Regulation Authority, the European Central Bank or other Governmental Authority for any category of deposits or liabilities customarily used to fund loans in the applicable currency, expressed in the case of each such requirement as a decimal.  Such reserve, liquid asset, fees or similar requirements shall include those imposed pursuant to Regulation D.  Eurocurrency Loans shall be deemed to be subject to such reserve, liquid asset, fee or similar requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under any applicable law, rule or regulation, including Regulation D.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve, liquid asset or similar requirement.
“Subordinated Indebtedness” means any Indebtedness of the Borrower or any Subsidiary the payment of which is subordinated to payment of the obligations under the Loan Documents pursuant to terms and conditions reasonably satisfactory to the Administrative Agent.
“Subordinated Indebtedness Documents” means any document, agreement or instrument evidencing any Subordinated Indebtedness or entered into in connection with any Subordinated Indebtedness, in each case, on terms and conditions reasonably satisfactory to the Administrative Agent.
“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than fifty percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power or, in the case of a partnership, more than fifty percent (50%) of the general partnership interests are, as of such date, owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.
“Subsidiary” means any subsidiary of the Borrower.
“Subsidiary Guarantor” means each Material Domestic Subsidiary that guaranties the Amended and Restated Credit Agreement and is a party to the Subsidiary Guaranty.  The Subsidiary Guarantors on the Effective Date are identified as such in Schedule 3.01 hereto.

“Subsidiary Guaranty” means that certain Subsidiary Guaranty dated as of the Effective Date in the form of Exhibit F (including any and all supplements thereto) and executed by each Subsidiary Guarantor, as amended, restated, supplemented or otherwise modified from time to time.
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“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.
 “Syndication Agent” means Bank of America, N.A., in its capacity as syndication agent for the credit facility evidenced by this Agreement.
“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET2) payment system (or, if such payment system ceases to be operative, such other payment system (if any) reasonably determined by the Administrative Agent to be a suitable replacement) for the settlement of payments in euro. 
“TARGET2 Day” means a day that TARGET2 is open for the settlement of payments in euro.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
“Term SOFR Notice” means a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Transition Event. 
“Term SOFR Transition Event” means the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event or an Early Opt-in Election, as applicable, has previously occurred resulting in a Benchmark Replacement in accordance with Section 2.14 that is not Term SOFR.
 “Total Credit Exposure” means, with respect to any Lender at any time, such Lender’s Revolving Credit Exposure.
“Transactions” means the execution, delivery and performance by the Loan Parties of this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions 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 Adjusted LIBO Rate, the Adjusted EURIBOR Rate or the Alternate Base Rate.
“UK Financial Institutions” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) 
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promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.
 “Unfunded Commitment” means, with respect to each Lender, the Revolving Commitment of such Lender less its Revolving Credit Exposure.
“Unit Purchase Agreement” means that certain Unit Purchase Agreement, dated as of March 22, 2021, by and among StonePoint Ultimate Holding, LLC, Sun StonePoint Aggregator, LP and the other sellers party thereto.
“Unit Purchase Agreement Termination Event” means the termination of the Unit Purchase Agreement prior to the “Closing” (as defined in the Unit Purchase Agreement) in accordance with Section 9.01 of the Unit Purchase Agreement. 
“U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the Code.
“U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.17(f)(ii)(B)(3).
“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.
“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
SECTION 1.02.  Classification of Loans and Borrowings
.  For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., a “Eurocurrency Loan”).  Borrowings also may be classified and referred to by Type (e.g., a “Eurocurrency Borrowing”).
SECTION 1.03.  Terms Generally
.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  The word “law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply), and all judgments, orders and decrees, of all Governmental Authorities.  Unless 
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the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignment set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law, rule or regulation herein shall, unless otherwise specified, refer to such law, rule or regulation as amended, modified or supplemented from time to time 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; Pro Forma Calculations
.  (a) Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an 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.  Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made without giving effect to (i) any election under Financial Accounting Standards Board Accounting Standards Codification 825 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein and (ii) any treatment of Indebtedness under Accounting Standards Codification 470-20 or 2015-03 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof. 
(b)  Notwithstanding anything to the contrary contained in Section 1.04(a) or in the definition of “Capital Lease Obligations,” any change in accounting for leases pursuant to GAAP resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update No. 2016-02, Leases (Topic 842) (“FAS 842”), to the extent such adoption would require treating any lease (or similar arrangement conveying the right to use) as a capital lease where such lease (or similar arrangement) would not have been required to be so treated under GAAP as in effect on December 31, 2015, such lease shall not be considered a capital lease, and all calculations and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in accordance therewith.
(c)  All pro forma computations required to be made hereunder giving effect to any acquisition or Disposition, or issuance, incurrence or assumption of Indebtedness, or other transaction shall in each case be calculated giving pro forma effect thereto (and, in the case of any pro forma computation made hereunder to determine whether such acquisition or Disposition, or issuance, incurrence or assumption of Indebtedness, or 
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other transaction is permitted to be consummated hereunder, to any other such transaction consummated since the first day of the period covered by any component of such pro forma computation and on or prior to the date of such computation) as if such transaction had occurred on the first day of the period of four consecutive fiscal quarters ending with the most recent fiscal quarter for which financial statements shall have been delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financial statements, ending with the last fiscal quarter included in the financial statements referred to in Section 3.04(a)), and, to the extent applicable, to the historical earnings and cash flows associated with the assets acquired or disposed of (but without giving effect to any synergies or cost savings) and any related incurrence or reduction of Indebtedness, all in accordance with Article 11 of Regulation S-X under the Securities Act.  If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Swap Agreement applicable to such Indebtedness).
SECTION 1.05.  Status of Obligations
.  In the event that the Borrower or any other Loan Party shall at any time issue or have outstanding any Subordinated Indebtedness, the Borrower shall take or cause such other Loan Party to take all such actions as shall be necessary to cause the Obligations to constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.  Without limiting the foregoing, the Obligations are hereby designated as “senior indebtedness” and as “designated senior indebtedness” and words of similar import under and in respect of any indenture or other agreement or instrument under which such Subordinated Indebtedness is outstanding and are further given all such other designations as shall be required under the terms of any such Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.
SECTION 1.06.  Interest Rates; LIBOR Notification
.  The interest rate on a Loan denominated in Dollars or a Foreign Currency may be derived from an interest rate benchmark that is, or may in the future become, the subject of regulatory reform.  Regulators have signaled the need to use alternative benchmark reference rates for some of these interest rate benchmarks and, as a result, such interest rate benchmarks may cease to comply with applicable laws and regulations, may be permanently discontinued, and/or the basis on which they are calculated may change.  The London interbank offered rate is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Eurocurrency Loans.  In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank offered rate.  Upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-In Election, Section 2.14(b) and (c) provide a mechanism for determining an alternative rate of interest.  The Administrative Agent will promptly notify the Borrower, pursuant to Section 2.14(e), of any change to the reference rate upon which the interest rate on Eurocurrency Loans is based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the 
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administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “LIBO Rate” (or “EURIBOR Rate”, as applicable) or with respect to any alternative or successor rate thereto, or replacement rate thereof (including, without limitation, (i) any such alternative, successor or replacement rate implemented pursuant to Section 2.14(b) or (c), whether upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, and (ii) the implementation of any Benchmark Replacement Conforming Changes pursuant to Section 2.14(d)), including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, the LIBO Rate (or the EURIBOR Rate, as applicable) or have the same volume or liquidity as did the London interbank offered rate (or the euro interbank offered rate, as applicable) prior to its discontinuance or unavailability.
SECTION 1.07.  [Reserved]
.
SECTION 1.08.  Divisions
.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its Equity Interests at such time.
SECTION 1.09.  Conversion of Foreign Currencies
.
(a) Dollar Equivalents.  The Administrative Agent may determine the Dollar Amount of any amount as required hereby, and a determination thereof by the Administrative Agent shall be conclusive absent manifest error.  The Administrative Agent may, but shall not be obligated to, rely on any determination of any Dollar Amount by the Borrower.  The Administrative Agent may determine or redetermine the Dollar Amount of any amount on any date either in its own discretion or upon the request of any Lender, including the Dollar Amount of any Loan made or issued in any Foreign Currency.
(b) Rounding-Off.  The Administrative Agent may set up appropriate rounding-off mechanisms or otherwise round-off amounts hereunder to the nearest higher or lower amount in whole Dollars, euro, Pounds Sterling, Canadian Dollars, Mexican Pesos, whole other currency or smaller denomination thereof to ensure amounts owing by any party hereunder or that otherwise need to be calculated or converted hereunder are expressed in whole Dollars, whole Pounds Sterling, euro, Mexican Peso, whole other currency or in whole smaller denomination thereof, as may be necessary or appropriate.
Article II
The Credits
SECTION 2.01.  Commitments
(a) .  Subject to the terms and conditions set forth herein, each Lender (severally and not jointly) agrees to make Revolving Loans to the Borrower in Agreed Currencies from time to time during the 
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Revolving Availability Period in an aggregate principal amount that will not result in (a) subject to Sections 2.04 and 2.11(b), the Dollar Amount of such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment, (b) subject to Sections 2.04 and 2.11(b), the sum of the Dollar Amount of the total Revolving Credit Exposures exceeding the Aggregate Revolving Commitment or (c) subject to Sections 2.04 and 2.11(b), the Dollar Amount of the total outstanding Revolving Loans, in each case denominated in Foreign Currencies, exceeding the Foreign Currency Sublimit.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.
SECTION 2.02.  Loans and Borrowings
.  (a) Each Loan shall be made as part of a Borrowing consisting of Loans of the same Type made by the Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several.
(b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans or Eurocurrency Loans as the Borrower may request in accordance herewith; provided that each ABR Loan shall only be made in Dollars.  Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the same extent as to such Lender); 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.
(c) At the commencement of each Interest Period for any Eurocurrency Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 (or, if such Borrowing is denominated in a Foreign Currency, 1,000,000 units of such currency) and not less than $5,000,000 (or, if such Borrowing is denominated in a Foreign Currency, 5,000,000 units of such currency).  At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Aggregate Revolving Credit Commitment.  Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of fifteen (15) Eurocurrency 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 Borrowings
.  To request a Borrowing, the Borrower shall notify the Administrative Agent of such request (a) by irrevocable written notice (via a written Borrowing Request signed by the Borrower, promptly followed by telephonic confirmation of such request) in the case of a Eurocurrency Borrowing, not later than 12:00 noon, Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing denominated in Dollars) or by irrevocable written notice (via a written Borrowing Request signed by the Borrower) not later than 12:00 noon, Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing denominated in a Foreign Currency), in each case before the date of the proposed Borrowing or (b) by telephone in the case of an ABR Borrowing, not later than 12:00 noon, New York City time, on the date of the proposed Borrowing.  Each such Borrowing Request shall be irrevocable and shall be confirmed by a Responsible Officer of the Borrower.  Each such Borrowing Request shall specify the following information in compliance with Section 2.02:
37

(i) the aggregate principal 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 Eurocurrency Borrowing;
(iv) in the case of a Revolving Eurocurrency Borrowing, the Agreed Currency;
(v) in the case of a Eurocurrency Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and
(vi) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.07.
If no election as to the Type of Borrowing is specified, then, in the case of a Borrowing denominated in Dollars, the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurocurrency 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.  Determination of Dollar Amounts
.  The Administrative Agent will determine the Dollar Amount of:
(a) each Eurocurrency Borrowing as of the date two (2) Business Days prior to the date of such Borrowing or, if applicable, the date of conversion/continuation of any Borrowing as a Eurocurrency Borrowing, and
(b) all outstanding Credit Events on and as of the last Business Day of each calendar quarter and, during the continuation of an Event of Default, on any other Business Day elected by the Administrative Agent in its discretion or upon instruction by the Required Lenders.
Each day upon or as of which the Administrative Agent determines Dollar Amounts as described in the preceding clauses (a) and (b) is herein described as a “Computation Date” with respect to each Credit Event for which a Dollar Amount is determined on or as of such day.
SECTION 2.05.  [Reserved]
.
SECTION 2.06.  [Reserved]
.
SECTION 2.07.  Funding of Borrowings
.  (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds (i) in the case of Loans denominated in Dollars, by 1:00 p.m., New York City time, to the account of the Administrative Agent most recently designated by it for such 
38

purpose by notice to the Lenders and (ii) in the case of each Loan denominated in a Foreign Currency, by 12:00 noon, Local Time, in the city of the Administrative Agent’s Eurocurrency Payment Office for such currency and at such Eurocurrency Payment Office for such currency.  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to (x) an account of the Borrower maintained with the Administrative Agent in New York City or Chicago and designated by the Borrower in the applicable Borrowing Request, in the case of Loans denominated in Dollars and (y) an account of the Borrower in the relevant jurisdiction and designated by the Borrower in the applicable Borrowing Request, in the case of Loans denominated in a Foreign Currency.
(b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation (including without limitation the Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency) 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.
SECTION 2.08.  Interest Elections
.  (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency 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 Eurocurrency 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.
(b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election (by telephone or irrevocable written notice in the case of a Borrowing denominated in Dollars or by irrevocable written notice (via an Interest Election Request signed by the Borrower) in the case of a Borrowing denominated in a Foreign Currency) 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 signed by the Borrower.  Notwithstanding any contrary provision herein, this Section shall not be construed to permit the Borrower to (i) change the currency of any Borrowing, (ii) elect an Interest Period for Eurocurrency Loans that does not comply with Section 2.02(d) or (iii) convert any Borrowing to a Borrowing of a Type not available under such Borrowing.
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(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 Eurocurrency Borrowing; and
(iv) if the resulting Borrowing is a Eurocurrency Borrowing, the Interest Period and Agreed Currency to be applicable thereto after giving effect to such election, which Interest Period shall be a period contemplated by the definition of the term “Interest Period”.
If any such Interest Election Request requests a Eurocurrency 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.
(e) If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurocurrency 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 (i) in the case of a Borrowing denominated in Dollars, such Borrowing shall be converted to an ABR Borrowing and (ii) in the case of a Borrowing denominated in a Foreign Currency in respect of which the Borrower shall have failed to deliver an Interest Election Request prior to the third (3rd) Business Day preceding the end of such Interest Period, such Borrowing shall automatically continue as a Eurocurrency Borrowing in the same Agreed Currency with an Interest Period of one month unless such Eurocurrency Borrowing is or was repaid in accordance with Section 2.11.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing denominated in Dollars may be converted to or continued as a Eurocurrency Borrowing, (ii) unless repaid, each Eurocurrency Borrowing denominated in Dollars shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto and (iii) unless repaid, each Eurocurrency Revolving Borrowing denominated in a Foreign Currency shall automatically be continued as a Eurocurrency Borrowing with an Interest Period of one month.
SECTION 2.09.  Termination and Reduction of Commitments
.  (a) Unless previously terminated, the Revolving Commitments shall terminate on the Maturity Date.
(b) The Borrower may at any time terminate, or from time to time reduce the Revolving Commitments; provided that (i) each reduction of the Revolving Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance 
40

with Section 2.11, the Dollar Amount of the sum of the Revolving Credit Exposures would exceed the Aggregate Revolving Commitment. 
(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 (3) Business Days (or such lesser period as the Administrative Agent shall agree to in writing) 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 or other transactions specified therein, 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.
(d) In the event the Borrower or any of its Subsidiaries receives Net Cash Proceeds from Specified Additional Indebtedness (whether in a single incurrence or a series of incurrences), the Borrower shall make the prepayments required pursuant to Section 2.11(c) and the Revolving Commitments shall immediately terminate and be permanently reduced to zero.
(e) Upon the occurrence of a Unit Purchase Agreement Termination Event, the Commitments shall immediately terminate and be permanently reduced to zero.
SECTION 2.10.  Repayment and Amortization of Loans; Evidence of Debt
SECTION 1.01..
(a) The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Revolving Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date in the currency of such Revolving Loan.
(b) [Reserved]. 
(c) 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.
(d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class, Agreed Currency 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.
(e) [Reserved].
(f) The entries made in the accounts maintained pursuant to paragraph (c) or (d) 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 Obligations.
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(g) Any Lender may request that Loans made by it be evidenced by a promissory note.  If such Loan is a Revolving Loan, 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 the form attached hereto as Exhibit I.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).
SECTION 2.11.  Prepayment of Loans
.  
(a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (e) of this Section and, if applicable, payment of any break funding expenses under Section 2.16. 
(b) If at any time, (i) other than as a result of fluctuations in currency exchange rates, (A) the sum of the aggregate principal Dollar Amount of all of the Revolving Credit Exposures (calculated, with respect to those Credit Events denominated in Foreign Currencies, as of the most recent Computation Date with respect to each such Credit Event) exceeds the Revolving Commitment or (B) the sum of the aggregate principal Dollar Amount of all of the outstanding Revolving Credit Exposures denominated in Foreign Currencies (the “Foreign Currency Exposure”) (so calculated), as of the most recent Computation Date with respect to each such Credit Event, exceeds the Foreign Currency Sublimit or (ii) solely as a result of fluctuations in currency exchange rates, (A) the sum of the aggregate principal Dollar Amount of all of the Revolving Credit Exposures (so calculated) exceeds 105% of the Revolving Commitment or (B) the Foreign Currency Exposure, as of the most recent Computation Date with respect to each such Credit Event, exceeds 105% of the Foreign Currency Sublimit, the Borrower shall in each case immediately repay Revolving Loan Borrowings in an account with the Administrative Agent, as applicable, in an aggregate principal amount sufficient to cause (x) the aggregate Dollar Amount of all Revolving Credit Exposures (so calculated) to be less than or equal to the Aggregate Revolving Commitment and (y) the Foreign Currency Exposure to be less than or equal to the Foreign Currency Sublimit, as applicable.
(c) In the event the Borrower or any of its Subsidiaries receives Net Cash Proceeds from Specified Additional Indebtedness (whether in a single incurrence or a series of incurrences), the Borrower shall, substantially concurrently with receipt of such Net Cash Proceeds, prepay the outstanding Revolving Loan Borrowings in full.
(d) [Reserved].
(e) The Borrower shall notify the Administrative Agent by written notice (promptly followed by telephonic confirmation of such request) of any prepayment hereunder (i) in the case of prepayment of a Eurocurrency Borrowing, not later than 12:00 noon, Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing denominated in Dollars) or four (4) Business Days (in the case of a Eurocurrency Borrowing denominated in a Foreign Currency), in each case before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, 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 Revolving Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.  
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Promptly following receipt of any such, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02, except as necessary to apply fully the required amount of a mandatory prepayment.  Except as set forth in clause (d) above, each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) break funding payments pursuant to Section 2.16.
SECTION 2.12.  Fees
.  (a) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee, which shall accrue at the Applicable Rate on the average daily unused amount of the Revolving Commitment of such Revolving Lender during the period from and including the Effective Date to but excluding the date on which such Revolving Commitment terminates.  Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the Revolving Commitments terminate, 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) [Reserved].
(c) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent (including all fees due and payable pursuant to the terms of the Fee Letter).
(d) All fees payable hereunder shall be paid on the dates due, in Dollars (except as otherwise expressly provided in this Section 2.12) and immediately available funds, to the Administrative Agent for distribution, in the case of commitment fees and participation fees, to the Lenders.  Fees paid shall not be refundable under any circumstances.
SECTION 2.13.  Interest
.  (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate.
(a) The Loans comprising each Eurocurrency Borrowing shall bear interest at the Adjusted LIBO Rate or the Adjusted EURIBOR Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.
(b) Notwithstanding the foregoing, during the occurrence and continuance of an Event of Default, the Required Lenders may, at their option, by written notice to the Borrower (which notice may be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent of “each Lender directly affected thereby” for reductions in interest rates), declare that (i) all Loans shall bear interest at 2% per annum plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount outstanding hereunder, such amount shall accrue at 2% per annum plus the rate applicable to such fee or other obligation as provided hereunder; provided that during the occurrence and continuance of an Event of Default under Section 7.01(a), (b), (h) or (i), all Loans shall automatically bear interest at 2% per annum plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section and in the case of any other amount outstanding hereunder, 
43

such amount shall automatically accrue at 2% per annum plus the rate applicable to such fee or other obligation as provided hereunder.
(c) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Revolving Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Revolving Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurocurrency 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.
(d) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest (i) 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 (ii) for Borrowings denominated in Pounds Sterling shall be computed on the basis of a year of 365 days, 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, Adjusted LIBO Rate, or LIBO Rate, Adjusted EURIBOR Rate or EURIBOR Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.
SECTION 2.14.  Alternate Rate of Interest
.
(a) Subject to clauses (c), (d), (e), (f), and (g) of this Section 2.14, if prior to the commencement of any Interest Period for a Eurocurrency Borrowing:
(i) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or, the LIBO Rate, the Adjusted EURIBOR Rate or the EURIBOR Rate, as applicable (including because the Relevant Screen Rate is not available or published on a current basis), for the applicable Agreed Currency and such Interest Period; or
(ii) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate, the LIBO Rate, the Adjusted EURIBOR Rate or the EURIBOR Rate, as applicable, for the applicable Agreed Currency and 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 the applicable Agreed Currency and such Interest Period;
then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or electronic mail 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, (A) any Interest Election Request that requests the conversion of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a Eurocurrency Borrowing shall be ineffective and (B) if any Borrowing Request requests a Eurocurrency Revolving Borrowing in Dollars, such Borrowing shall be made as an ABR Borrowing, and if any Borrowing Request requests a Eurocurrency Borrowing in such Foreign Currency, then such Borrowing shall be ineffective; provided that the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.  Furthermore, if any Eurocurrency Loan in any Agreed Currency is outstanding on the date of the Borrower’s receipt of the notice from the Administrative Agent 
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referred to in this Section 2.14(a) with respect to a Relevant Rate applicable to such Eurocurrency Loan, then (i) if such Eurocurrency Loan is denominated in Dollars, then on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), such Loan shall be converted by the Administrative Agent to, and shall constitute, an ABR Loan denominated in Dollars on such day or (ii) if such Eurocurrency Loan is denominated in any Agreed Currency (other than Dollars), then such Loan shall, on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), at the Borrower’s election prior to such day: (A) be prepaid by the Borrower on such day or (B) be converted by the Administrative Agent to, and (subject to the remainder of this subclause (B)) shall constitute, an ABR Loan denominated in Dollars (in an amount equal to the Dollar Equivalent of such Agreed Currency) on such day (it being understood and agreed that if the Borrower does not so prepay such Loan on such day by 12:00 noon, New York City time, the Administrative Agent is authorized to effect such conversion of such Eurocurrency Loan into an ABR Loan denominated in Dollars), and, in the case of such subclause (B), upon the Borrower’s receipt of notice from the Administrative Agent that the circumstances giving rise to the aforementioned notice no longer exist, such ABR Loan denominated in Dollars shall then be converted by the Administrative Agent to, and shall constitute, a Eurocurrency Loan denominated in such original Agreed Currency on the day of such notice being given to the Borrower by the Administrative Agent.
(b) If any Lender determines that any Requirement of Law has made it unlawful, or if any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending office to make, maintain, fund or continue any Eurocurrency Borrowing or any Borrowing based on the Adjusted LIBO Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars or any other Agreed Currency in the applicable interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligations of such Lender to make, maintain, fund or continue Eurocurrency Loans in such currency or Loans based on the Adjusted LIBO Rate or to convert ABR Borrowings to Eurocurrency Borrowings denominated in Dollars will be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, the Borrower will, upon demand from such Lender (with a copy to the Administrative Agent), either prepay or convert all Eurocurrency Borrowings of such Lender or, in the case of Eurocurrency Borrowings denominated in Dollars, convert such Borrowings to ABR Borrowings, either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Borrowings to such day, or immediately, if such Lender may not lawfully continue to maintain such Loans.  Upon any such conversion or prepayment, the Borrower will also pay accrued interest on the amount so converted or prepaid.
(c) Notwithstanding anything to the contrary herein or in any other Loan Document (and any Swap Agreement shall be deemed not to be a “Loan Document” for purposes of this Section 2.14), if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document 
45

so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.
(d) Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, solely with respect to a Dollar Loan, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided that, this clause (c) shall not be effective unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice.  For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice after a Term SOFR Transition Event and may do so in its sole discretion.
(e) In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.
(f) The Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to Section 2.14 and (v) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.14, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.14.
(g) Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBO Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.
(h) Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Eurocurrency Borrowing of, conversion to or continuation of 
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Eurocurrency Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, either (x)  the Borrower will be deemed to have converted any request for a Eurocurrency Borrowing denominated in Dollars into a request for a Borrowing of or conversion to ABR Loans or (y) any Eurocurrency Borrowing denominated in an Foreign Currency shall be ineffective.  During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of ABR.  Furthermore, if any Eurocurrency Loan in any Agreed Currency is outstanding on the date of the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period with respect to a Relevant Rate applicable to such Eurocurrency Loan, then (i) if such Eurocurrency Loan is denominated in Dollars, then on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), such Loan shall be converted by the Administrative Agent to, and shall constitute, an ABR Loan denominated in Dollars on such day or (ii) if such Eurocurrency Loan is denominated in any Agreed Currency (other than Dollars), then such Loan shall, on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), at the Borrower’s election prior to such day: (A) be prepaid by the Borrower on such day or (B) be converted by the Administrative Agent to, and (subject to the remainder of this subclause (B)) shall constitute, an ABR Loan denominated in Dollars (in an amount equal to the Dollar Equivalent of such Agreed Currency) on such day (it being understood and agreed that if the Borrower does not so prepay such Loan on such day by 12:00 noon, New York City time, the Administrative Agent is authorized to effect such conversion of such Eurocurrency Loan into an ABR Loan denominated in Dollars), and, in the case of such subclause (B), upon any subsequent implementation of a Benchmark Replacement in respect of such Agreed Currency pursuant to this Section 2.14, such ABR Loan denominated in Dollars shall then be converted by the Administrative Agent to, and shall constitute, a Eurocurrency Loan denominated in such original Agreed Currency on the day of such implementation, giving effect to such Benchmark Replacement in respect of such Agreed Currency.
SECTION 2.15.  Increased Costs
.  (a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate or the Adjusted EURIBOR Rate, as applicable);
(ii) impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender; or
(iii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;
and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting into or maintaining any Loan or of maintaining its obligation to make any such Loan or to reduce the amount of any sum received or receivable by such Lender or such other Recipient hereunder, whether of principal, interest or otherwise, then the Borrower will pay to such Lender or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
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(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 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 and liquidity), then from time to time the Borrower 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.
(c) 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) or (b) 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 ten (10) days after receipt thereof.
(d) 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 270 days 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 270-day period referred to above shall be extended to include the period of retroactive effect thereof.
SECTION 2.16.  Break Funding Payments
.  In the event of (a) the payment of any principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any prepayment pursuant to Section 2.11), (b) the conversion of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurocurrency Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.11(a) and is revoked in accordance therewith) or (d) the assignment of any Eurocurrency Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  In the case of a Eurocurrency Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Eurocurrency Loan had such event not occurred, at the Adjusted LIBO Rate or the Adjusted EURIBOR Rate, as applicable, that would have been applicable to such Eurocurency Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Eurocurency Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in the relevant currency of a comparable amount and period from other banks in the eurocurrency market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof.
SECTION 2.17.  Taxes
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.  (a) Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.17) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
(b) Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes.
(c) Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.17, 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.
(d) Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
(e) Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any 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.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).
(f) Status of Lenders.  (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document 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 reasonably requested by the Borrower or the 
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Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably 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.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.17(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(ii) Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person:
(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), an executed copy of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;
(B) any 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 (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:
(1)  in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, an executed copy of IRS Form W-8BEN-E or IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN-E or IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

(2)  in the case of a Foreign Lender claiming that its extension of credit will generate U.S. effectively connected income, an executed copy of IRS Form W-8ECI;

(3) 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 G-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) an executed copy of IRS Form W-8BEN-E or IRS Form W-8BEN; or

(4) to the extent a Foreign Lender is not the beneficial owner, an executed copy of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E or IRS Form W-8BEN, a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and 
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one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-4 on behalf of each such direct and indirect partner;
(C) any 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 (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of 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 or the Administrative Agent to determine the withholding or deduction required to be made; and
(D) if a payment made to a Lender under any Loan Document 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 clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
(g) Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.17 (including by the payment of additional amounts pursuant to this Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.17 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  
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This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
(h) Survival.  Each party’s obligations under this Section 2.17 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.
(i) Defined Terms.  For purposes of this Section 2.17, the term “applicable law” includes FATCA.
SECTION 2.18.  Payments Generally; Pro Rata Treatment; Sharing of Set-offs
.
(a) The Borrower shall make each payment required to be made by it hereunder (whether of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to (i) in the case of payments denominated in Dollars, 1:00 p.m., New York City time and (ii) in the case of payments denominated in a Foreign Currency, 12:00 noon, Local Time, in the city of the Administrative Agent’s Eurocurrency Payment Office for such currency, in each case on the date when due, in immediately available funds, without set-off, recoupment 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 (i) in the same currency in which the applicable Credit Event was made (or where such currency has been converted to euro, in euro) and (ii) to the Administrative Agent at its offices in New York City or, in the case of a Credit Event denominated in a Foreign Currency, the Administrative Agent’s Eurocurrency Payment Office for such currency.  The Administrative Agent shall distribute any such payments denominated in the same currency 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.  Notwithstanding the foregoing provisions of this Section, if, after the making of any Credit Event in any Foreign Currency, currency control or exchange regulations are imposed in the country which issues such currency with the result that the type of currency in which the Credit Event was made (the “Original Currency”) no longer exists or the Borrower is not able to make payment to the Administrative Agent for the account of the Lenders in such Original Currency, then all payments to be made by the Borrower hereunder in such currency shall instead be made when due in Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due, it being the intention of the parties hereto that the Borrower takes all risks of the imposition of any such currency control or exchange regulations.
(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, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal then due to such parties.
(c) At the election of the Administrative Agent, all payments of principal, interest, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the Loan Documents, may be paid from the proceeds of 
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Borrowings made hereunder whether made following a request by the Borrower pursuant to Section 2.03 or a deemed request as provided in this Section or may be deducted from any deposit account of the Borrower maintained with the Administrative Agent.  The Borrower hereby irrevocably authorizes (i) the Administrative Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged shall constitute Loans and that all such Borrowings shall be deemed to have been requested pursuant to Section 2.03 and (ii) the Administrative Agent to charge any deposit account of the Borrower maintained with the Administrative Agent for each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents.
(d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Revolving Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply).  The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.
(e) 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, at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation (including without limitation the Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency).
(f) If any Lender shall fail to make any payment required to be made by it pursuant to Sections 2.07(b), 2.18(e) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent to satisfy such Lender’s obligations to it under such Section until all such unsatisfied obligations are fully paid.
SECTION 2.19.  Mitigation Obligations; Replacement of Lenders
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.  (a) If any Lender requests compensation under Section 2.15, or the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(b) If (i) any Lender requests compensation under Section 2.15, (ii) the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17 or (iii) any Lender becomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Sections 2.15 or 2.17) and obligations under the Loan Documents 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, 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, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a 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 2.20.  [Reserved]
.  
SECTION 2.21.  Judgment Currency
.  If for the purposes of obtaining judgment in any court it is necessary to convert a sum due from the Borrower hereunder in the currency expressed to be payable herein (the “specified currency”) into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the specified currency with such other currency at the Administrative Agent’s main New York City office on the Business Day preceding that on which final, non-appealable judgment is given.  The obligations of the Borrower in respect of any sum due to any Lender or the Administrative Agent hereunder shall, notwithstanding any judgment in a currency other than the specified currency, be discharged only to the extent that on the Business Day following receipt by such Lender or the Administrative Agent (as the case may be) of any sum adjudged to be so due in such other currency such Lender or the Administrative Agent (as the case may be) may in accordance with normal, reasonable banking procedures purchase the specified currency with such other currency.  If the amount of the specified currency so purchased is less than the sum originally due to such Lender or the Administrative Agent, as the case may be, in the specified currency, the Borrower agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify such Lender or the Administrative Agent, as the case may be, against such loss, and if 
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the amount of the specified currency so purchased exceeds (a) the sum originally due to any Lender or the Administrative Agent, as the case may be, in the specified currency and (b) any amounts shared with other Lenders as a result of allocations of such excess as a disproportionate payment to such Lender under Section 2.18, such Lender or the Administrative Agent, as the case may be, agrees to remit such excess to the Borrower.
SECTION 2.22.  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:
(a) fees shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting Lender pursuant to Section 2.12(a);
(b) any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 7.02 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows: (i) first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; (ii) second, as the Borrower may request (so long as no Default or Event of Default exists), 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, as determined by the Administrative Agent; (iii) third, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement; (iv) fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; (v) fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender until such time as all Loans are held by the Lenders pro rata in accordance with the Commitments.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto; and
(c) the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section 9.02); except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender disproportionately adversely relative to other affected Lenders shall require the consent of such Defaulting Lender.
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Article III
Representations and Warranties
The Borrower represents and warrants to the Lenders that:
SECTION 3.01.  Organization; Powers; Subsidiaries
.  Each of the Borrower and its Subsidiaries is duly organized or formed, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.  Schedule 3.01 hereto (as supplemented from time to time) identifies each Subsidiary, noting whether such Subsidiary is a Material Domestic Subsidiary, the jurisdiction of its incorporation or organization, as the case may be, the percentage of issued and outstanding shares of each class of its Equity Interests owned by the Borrower and the other Subsidiaries and, if such percentage is not 100% (excluding directors’ qualifying shares as required by law), a description of each class issued and outstanding.  
SECTION 3.02.  Authorization; Enforceability
.  The Transactions are within each Loan Party’s corporate or other organizational powers and have been duly authorized by all necessary corporate or other organizational and, if required, stockholder action.  The Loan Documents to which each Loan Party is a party have been duly executed and delivered by such Loan Party and constitute a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
SECTION 3.03.  Governmental Approvals; No Conflicts
.  The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (b) will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon the Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result in the creation or imposition of, or the requirement to create, any Lien on any asset of the Borrower or any of its Subsidiaries.
SECTION 3.04.  Financial Condition; No Material Adverse Change
.  (a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows as of and for the fiscal year ended December 31, 2020 reported on by Ernst & Young, LLP, independent public accountants.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in preceding sentence above.
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(b) Since the date of the audited statements furnished pursuant to Section 5.01(a), there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to result in a Material Adverse Effect.
(c) To the best knowledge of the Borrower, the information included in the Beneficial Ownership Certification provided on or prior to the Effective Date to any Lender in connection with this Agreement is true and correct in all material respects. 
SECTION 3.05.  Properties
.  (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business, which is not subject to any Lien except for (i) Permitted Encumbrances and (ii) minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes.
(b) Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
SECTION 3.06.  Litigation, Environmental and Labor Matters
.  (a) There are no actions, suits, proceedings or investigations by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than Disclosed Matters) or (ii) that involve this Agreement or the Transactions.
(b) Except for the Disclosed Matters and except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.
(c) There are no strikes, lockouts or slowdowns against the Borrower or any of its Subsidiaries pending or, to their knowledge, threatened.  The hours worked by and payments made to employees of the Borrower and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or foreign law relating to such matters.  All material payments due from the Borrower or any of its Subsidiaries, or for which any claim may be made against the Borrower or any of its Subsidiaries, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as liabilities on the books of the Borrower or such Subsidiary.  The consummation of the Transactions will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement under which the Borrower or any of its Subsidiaries is bound that could reasonably be expected to result in a Material Adverse Effect.
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(d) Since the date of this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.
SECTION 3.07.  Compliance with Laws and Agreements
.  Each of the Borrower and its Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
SECTION 3.08.  Investment Company Status
.  Neither the Borrower nor any of its Subsidiaries is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.
SECTION 3.09.  Taxes
.  Each of the Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.
SECTION 3.10.  ERISA
.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.
SECTION 3.11.  Disclosure
.  Neither the confidential information memorandum nor any of the other reports, financial statements, certificates or other information furnished by or on behalf of the Borrower or any Subsidiary 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; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.
SECTION 3.12.  Margin Regulations
.  The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing hereunder will be used to buy or carry any Margin Stock.  Following the application of the proceeds of each Borrowing, not more than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) will be Margin Stock.
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SECTION 3.13.  Liens
.  There are no Liens on any of the real or personal properties of the Borrower or any Subsidiary except for Liens permitted by Section 6.02.
SECTION 3.14.  No Default
.  No Default or Event of Default has occurred and is continuing.
SECTION 3.15.  No Burdensome Restrictions
.  The Borrower is not subject to any Burdensome Restrictions except Burdensome Restrictions permitted under Section 6.09.
SECTION 3.16.  Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions
.  The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions, and the Borrower, its Subsidiaries and to the knowledge of the Borrower its officers, directors, employees and agents, are in compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions in all material respects.  None of the Borrower, any Subsidiary, or to the knowledge of the Borrower or such Subsidiary their respective directors, officers, employees or any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing, use of proceeds or other Transactions will violate any Anti-Corruption Laws, Anti-Money Laundering Laws or applicable Sanctions.
SECTION 3.17.  Affected Financial Institutions
.  No Loan Party is an Affected Financial Institution.
SECTION 3.18.  Solvency
.  The Borrower and its Subsidiaries taken as a whole are Solvent.
SECTION 3.19.  Plan Assets
.  None of the Borrower or any of its Subsidiaries is a Benefit Plan.
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Article IV
Conditions
SECTION 4.01.  Effective Date
.  The effectiveness of this Agreement and the obligations of the Lenders to make Loans hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):
(a) The Administrative Agent (or its counsel) shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may include telecopy or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement and (ii) duly executed copies of the Loan Documents and such other legal opinions, certificates, documents, instruments and agreements as the Administrative Agent shall reasonably request in connection with the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
(b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of Haynes & Boone, LLP, counsel for the Loan Parties, substantially in the form of Exhibit B, and covering such other matters relating to the Loan Parties, the Loan Documents or the Transactions as the Administrative Agent shall reasonably request.  The Borrower hereby requests such counsel to deliver such opinion.
(c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the initial Loan Parties, the authorization of the Transactions and any other legal matters relating to such Loan Parties, the Loan Documents or the Transactions, all in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
(d) All governmental and third party approvals necessary in connection with the Loan Documents or the Transactions and the continuing operations of the Loan Parties (including shareholder approvals, if any) shall have been obtained on satisfactory terms and shall be in full force and effect.  
(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, certifying (i) that the representations and warranties contained in Article III are true and correct in all material respects (or, in the case of any representation or warranty already qualified by materially, in all respects) as of such date and (ii) that no Default or Event of Default has occurred and is continuing as of such date.
(f) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.
(g) To the extent any Loan Party qualifies as a “legal entity customer” under the Beneficial Ownership Regulation and any Lender delivers a written request to such Loan Party at least ten (10) days prior to the Effective Date, then the Administrative Agent and the Lenders shall have received at 
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least five (5) days prior to the Effective Date, and be reasonably satisfied in form and substance with, a Beneficial Ownership Certification in relation to such Loan Party (provided that upon the execution and delivery by such Lender of its signature page to this Agreement, the condition set forth in this clause (h) shall be deemed to be satisfied).
(h) Upon the reasonable request of any Lender made in writing at least ten (10) days prior to the Effective Date, the Borrower shall have provided to such Lender, and such Lender shall be reasonably satisfied with, the documentation and other information so requested in connection with applicable “know your customer” and Anti-Money Laundering Laws, including, without limitation, the PATRIOT Act, in each case at least five (5) days prior to the Effective Date. 
The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.
SECTION 4.02.  Each Credit Event
.  The obligation of each Lender to make a Loan on the occasion of any Borrowing is subject to the satisfaction of the following conditions:
(a) The representations and warranties of the Borrower set forth in the Loan Documents shall be true and correct in all material respects (without duplication of any materiality qualifiers set forth therein) on and as of the date of such Borrowing, as applicable, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or, in the case of any representation or warranty already qualified by materially, in any respect) as of such earlier date, and except that the representations and warranties contained in Sections 3.04(a) be deemed to refer to the most recent statements furnished pursuant to Sections 5.01(a) and (b).
(b) At the time of and immediately after giving effect to such Borrowing, as applicable, no Default or Event of Default shall have occurred and be continuing.
Each Borrowing shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.
Article V
Affirmative Covenants
Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants and agrees with the Lenders that:
SECTION 5.01.  Financial Statements and Other Information
.  The Borrower will furnish to the Administrative Agent and each Lender:
(a) within ninety (90) days after the end of each fiscal year of the Borrower (or, if earlier, by the date that the Annual Report on Form 10-K of the Borrower for such fiscal year would be required to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing of such form) (commencing with the fiscal year ended December 31, 2021), its audited consolidated 
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balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Ernst & Young, LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;
(b) within forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (or, if earlier, by the date that the Quarterly Report on Form 10-Q of the Borrower for such fiscal quarter would be required to be filed under the rules and regulations of the SEC, giving effect to any automatic extension available thereunder for the filing of such form) (commencing with the fiscal quarter ended March 31, 2021), its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by one of its Financial Officers as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(c) concurrently with any delivery of financial statements under clause (a) or (b) above, a certificate of a Financial Officer of the Borrower, substantially in the form of Exhibit E, (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 5.09 and Section 6.12 and (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate;
(d) concurrently with any delivery of the financial statements under clause (a) above, a copy of the internally prepared business plan and forecast (including a projected consolidated balance sheet, income statement and funds flow statement) of the Borrower for the upcoming fiscal year in form reasonably satisfactory to the Administrative Agent;
(e) promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Borrower or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be;
(f) promptly after receipt thereof by the Borrower or any Subsidiary, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by the SEC or such other agency regarding financial or other operational results of the Borrower or any Subsidiary thereof;
(g) promptly following any request therefor, copies of any detailed audit reports, management letters or recommendations submitted to the board of directors (or the audit committee of the board of directors) of the Borrower by independent accountants in connection with the accounts or books of the Borrower or any Subsidiary, or any audit of any of them as the Administrative Agent or any Lender (through the Administrative Agent) may reasonably request; and
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(h) promptly following any request therefor, (x) such other information regarding the operations, business affairs and financial condition of the Borrower or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request and (y) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and Anti-Money Laundering Laws, including the Patriot Act and the Beneficial Ownership Regulation.
Documents required to be delivered pursuant to Section 5.01(a), (b) or (e) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether made available by the Administrative Agent); provided that: (A) upon written request by the Administrative Agent (or any Lender through the Administrative Agent) to the Borrower, the Borrower shall deliver paper copies of such documents to the Administrative Agent or such Lender until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (B) the Borrower shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such document to it and maintaining its copies of such documents Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper copies of the compliance certificates required by clause (c) of this Section 5.01 to the Administrative Agent.
SECTION 5.02.  Notices of Material Events
.  The Borrower will furnish to the Administrative Agent and each Lender prompt written notice of the following:
(a) the occurrence of any Default;
(b) the filing or commencement of any action, suit, proceeding or investigation by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Subsidiary thereof, including pursuant to any applicable Environmental Laws, that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;
(c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;
(d) notice of any action arising under any Environmental Law or of any noncompliance by the Borrower or any Subsidiary with any Environmental Law or any permit, approval, license or other authorization required thereunder that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;
(e) any material change in accounting or financial reporting practices by the Borrower or any Subsidiary;
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(f) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; 
(g) any change in the information provided in the Beneficial Ownership Certification delivered to such Lender that would result in a change to the list of beneficial owners identified in such certification; and 
(h) the occurrence of any Unit Purchase Agreement Termination Event. 
Each notice delivered under this Section (i) shall be in writing, (ii) shall contain a reference line that reads “Notice under Section 5.02 of the Arcosa, Inc. 364-Day Credit Agreement dated March 26, 2021” and (iii) shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
SECTION 5.03.  Existence; Conduct of Business
.  The Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect (a) its legal existence and (b) the rights, qualifications, licenses, permits, privileges, franchises, governmental authorizations and intellectual property rights and to maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted except, in the case of clause (b), where the failure to do so could reasonably be expected to result in a Material Adverse Effect; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03.
SECTION 5.04.  Payment of Obligations
.  The Borrower will, and will cause each of its Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect.
SECTION 5.05.  Maintenance of Properties; Insurance
.  The Borrower will, and will cause each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted, and (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by the Borrower and its Subsidiaries prior to the Effective Date (as modified from time to time based on the nature of the Borrower’s and its Subsidiaries’ respective businesses).
SECTION 5.06.  Books and Records; Inspection Rights
.  The Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities.  The 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 (but in any event at least 3 Business Days’ notice), to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at 
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such reasonable times and as often as reasonably requested.  The Borrower acknowledges that the Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain reports pertaining to the Borrower’s and its Subsidiaries’ assets for internal use by the Administrative Agent and the Lenders.
SECTION 5.07.  Compliance with Laws
.  The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property (including without limitation Environmental Laws, Anti-Corruption Laws and Sanctions) except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  The Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions.
SECTION 5.08.  Use of Proceeds
.  The proceeds of the Loans will be used only to finance the working capital needs, and for general corporate purposes, of the Borrower and its Subsidiaries in the ordinary course of business.  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Federal Reserve Board, including Regulations T, U and X.  The Borrower will not request any Borrowing, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, directly or indirectly, the proceeds of any Borrowing, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or any other Person (i) 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 Laws or Anti-Money Laundering Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permitted for a Person required to comply with Sanctions, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.
SECTION 5.09.  Subsidiary Guaranty
.  Within 30 days after the delivery of the certificate described in Section 5.01(c) for each fiscal quarter (and if requested by the Administrative Agent at any time a Default exists, as soon as reasonably practical, but in any event within 30 days after such request), the Borrower shall deliver to the Administrative Agent: (a) a Subsidiary Guaranty duly executed by each Material Domestic Subsidiary that has not previously executed and delivered to the Administrative Agent a Subsidiary Guaranty; (b) such resolutions, member or partner consents, certificates, legal opinions and such other related documents as the Administrative Agent may reasonably request with respect to each such Material Domestic Subsidiary, all in form and substance reasonably satisfactory to the Administrative Agent (and such Material Domestic Subsidiary shall become a Subsidiary Guarantor hereunder upon delivery of the items described in clauses (a) and (b)); and (c) an updated Schedule 3.01.  Notwithstanding the foregoing, if, at the time the certificate described in Section 5.01(c) is delivered, the Material Domestic Subsidiaries are insufficient to satisfy each of the thresholds set forth in clause (ii) of the proviso of the definition of “Material Domestic Subsidiary”, the Borrower shall, no later than thirty (30) days after the date of delivery of such certificate, designate in writing to the Administrative Agent such additional Domestic Subsidiaries as “Material Domestic Subsidiaries” as are necessary to comply with such definition and deliver all of the deliverables set forth in this Section with respect to such designated Material 
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Domestic Subsidiaries.  Notwithstanding the foregoing no Receivables Entity shall be required to become a Subsidiary Guarantor.
SECTION 5.10.  Accuracy of Information
.  The Borrower will ensure that any information, including financial statements or other documents, furnished to the Administrative Agent or the Lenders in connection with this Agreement or any amendment or modification hereof or waiver hereunder contains no 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, and the furnishing of such information shall be deemed to be a representation and warranty by the Borrower on the date thereof as to the matters specified in this Section.
Article VI
Negative Covenants
Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full, the Borrower covenants and agrees with the Lenders that:
SECTION 6.01.  Indebtedness
.  The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:
(a) the Obligations and Indebtedness in respect of the Amended and Restated Credit Agreement;
(b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 and extensions, renewals and replacements of any such Indebtedness with Indebtedness of a similar type that does not increase the outstanding principal amount thereof;
(c) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary;
(d) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of the Borrower or any other Subsidiary;
(e) Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof; provided that (i) such Indebtedness is incurred prior to or within ninety (90) days after such acquisition or the completion of such construction or improvement and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed $100,000,000 at any time outstanding;
(f) Indebtedness of any Person that becomes a Subsidiary after the date hereof; provided that (i) such Indebtedness exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (ii) the aggregate 
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principal amount of Indebtedness permitted by this clause (f) shall not exceed a Dollar Amount equal to $60,000,000, and extensions, renewals and replacements of any such Indebtedness with Indebtedness of a similar type that does not increase the outstanding principal amount thereof;
(g) Indebtedness of the Borrower or any Subsidiary as an account party in respect of trade letters of credit;
(h) Indebtedness of the Borrower or any Subsidiary secured by a Lien on any asset of the Borrower or any Subsidiary; provided that the aggregate outstanding principal amount of Indebtedness permitted by this clause (h) shall not in the aggregate exceed $15,000,000 at any time;
(i) Indebtedness under any Swap Agreement, provided that such Swap Agreement complies with Section 6.06;
(j)  Subordinated Indebtedness;
(k) In addition to Indebtedness permitted by the foregoing clauses of this Section 6.01, unsecured Indebtedness of the Borrower and its Subsidiaries; provided that after giving pro forma effect to such Indebtedness, the Borrower shall be in compliance with the financial covenants set out in Section 6.12 (including any increase in the maximum Leverage Ratio elected by the Borrower pursuant to and in accordance with Section 6.12(a)), as calculated for the fiscal year then most recently ended as if the Indebtedness had been incurred as of the first day of each such period (and to the extent such Indebtedness bears interest at a floating rate, using the rate in effect at the time of calculation for the entire period of calculation); and
(l) Indebtedness of the Borrower or any Subsidiary incurred pursuant to Permitted Receivables Facilities; provided that the Attributable Receivables Indebtedness thereunder shall not exceed an aggregate amount of $25,000,000 at any time outstanding.
SECTION 6.02.  Liens
.  The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:
(a) Permitted Encumbrances;
(b) any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;
(c) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary securing Indebtedness permitted by Section 6.01(f); provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a 
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Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;
(d) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that (i) such security interests secure Indebtedness permitted by clause (e) of Section 6.01, (ii) such security interests and the Indebtedness secured thereby are incurred prior to or within ninety (90) days after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such security interests shall not apply to any other property or assets of the Borrower or any Subsidiary; 
(e) Liens on assets of the Borrower and its Subsidiaries not otherwise permitted above securing Indebtedness permitted by Section 6.01(h) or on cash collateral provided in connection with the Amended and Restated Credit Agreement; and
(f) Liens on Permitted Receivables Facility Assets arising under Permitted Receivables Facilities.
SECTION 6.03.  Fundamental Changes
(a) .  (a) The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or Dispose of all or substantially all/any substantial part of its assets, or all or substantially all of the Equity Interests of any of its Subsidiaries (including, in each case, pursuant to a Delaware LLC Division and, in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing:
(i) any Person may merge into the Borrower in a transaction in which the Borrower is the surviving corporation;
(ii) any Subsidiary may merge into a Borrower or another Subsidiary; provided that any such merger involving (A) the Borrower must result in the Borrower as the surviving entity or (B) a Subsidiary Guarantor must result in a Subsidiary Guarantor as the surviving entity; provided, further that, if as a result of a merger between Subsidiaries that are not Loan Parties, the surviving Subsidiary qualifies as a Material Domestic Subsidiary (determined as of the date of such Disposition), the Borrower shall take, and shall cause such Material Domestic Subsidiary to take, the actions specified in Section 5.09 within the time limits set forth therein;
(iii) any Subsidiaries included in the “Other” component of the Borrower’s Energy Equipment Group having assets with a net book value not in excess of $10,000,000 in the aggregate may liquidate or dissolve; and
(iv) any Subsidiary that is not a Loan Party may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders;
provided that any such merger or consolidation involving a Person that is not a wholly-owned Subsidiary immediately prior to such merger or consolidation shall not be permitted unless it is also permitted by Section 6.05.
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(b) The Borrower will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.
(c) The Borrower will not, nor will it permit any of its Subsidiaries to, change its fiscal year from the basis in effect on the Effective Date without the prior written consent of the Administrative Agent, such consent not to be unreasonably withheld or delayed.
SECTION 6.04.  Dispositions
.  The Borrower will not, and will not permit any Subsidiary to, make any Disposition, except if at the time thereof and immediately after giving effect thereto no Default shall have occurred and be continuing:
(a) Dispositions of obsolete or worn out property in the ordinary course of business;
(b) Dispositions of inventory and Permitted Investments in the ordinary course of business;
(c) Dispositions of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property;
(d) Dispositions of property by any Subsidiary to the Borrower or another Subsidiary (provided that any such Disposition by a Loan Party must be to another Loan Party); provided that, if as a result of such Disposition, the Subsidiary acquiring such property qualifies as a Material Domestic Subsidiary (determined as of the date of such Disposition), the Borrower shall take, and shall cause such Material Domestic Subsidiary to take, the actions specified in Section 5.09 within the time limits set forth therein;
(e) Dispositions permitted by Section 6.03;
(f) leases, licenses, subleases or sublicenses (including the provision of open source software under an open source license) granted in the ordinary course of business and on ordinary commercial terms that do not interfere in any material respect with the business of the Borrower and its Subsidiaries;
(g) Dispositions of intellectual property rights that are no longer used or useful in the business of the Borrower and its Subsidiaries;
(h) the discount, write-off or Disposition of accounts receivable deemed doubtful or uncollectible, in each case in the ordinary course of business;
(i) Restricted Payments permitted by Section 6.08 and investments permitted by Section 6.05; 
(j) Dispositions of Equity Interests in any Subsidiaries included in the “Other” component of the Borrower’s Energy Equipment Group having assets with a net book value not in excess of $10,000,000 in the aggregate or any of such Subsidiaries’ properties or assets; 
(k) Dispositions by the Borrower and its Subsidiaries not otherwise permitted under this Section; provided that the aggregate book value of all property Disposed of pursuant to this clause (k) shall not exceed ten percent (10%) of the Borrower’s Consolidated Net Worth during the term of this Agreement; 
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(l) the sale on a non-recourse basis by the Borrower and its Subsidiaries in the ordinary course of business of accounts receivable owing from an account debtor pursuant to a supply chain or similar finance program established by such account debtor with a third party provider; and
(m) the Borrower or any Subsidiary may transfer, sell and/or pledge Permitted Receivables Related Assets under Permitted Receivables Facilities (subject to the limitation that the Attributable Receivables Indebtedness thereunder shall not exceed an aggregate amount of $25,000,000).
SECTION 6.05.  Investments, Loans, Advances, Guarantees and Acquisitions
.  The Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger or consolidation with any Person that was not a wholly owned Subsidiary prior to such merger or consolidation) any Equity Interests, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person (other than Equity Interests exercisable or convertible into, or exchangeable for, Equity Interests of the Borrower and its Subsidiaries), or purchase or otherwise acquire (in one transaction or a series of transactions) any Person or any assets of any other Person constituting a business unit, except:
(a) Permitted Investments;
(b) Permitted Acquisitions;
(c) investments by the Borrower and its Subsidiaries existing on the date hereof in the Equity Interests of its Subsidiaries;
(d) investments, loans or advances made by the Borrower in or to any Subsidiary and made by any Subsidiary in or to the Borrower or any other Subsidiary;
(e) Guarantees constituting Indebtedness permitted by Section 6.01; 
(f)  Swap Agreements permitted by Section 6.06; 
(g)  in addition to investments permitted by the foregoing clauses of this Section 6.05, any other investments as long as at the time of and immediately after giving effect to any such investment, (i) no Default has occurred and is continuing or would result and (ii) the Leverage Ratio, on a pro forma basis, is less than 2.5 to 1.00; provided that in the event that the Leverage Ratio is equal to or greater than 2.5 to 1.00 at the time an investment is made, then the aggregate amount measured at cost of the investments made under this Section 6.04(g) during the entire term of this Agreement (including the investment in question) may not exceed the greater of (A) $75,000,000 or (B) 2.5% of the Borrower’s consolidated current assets as determined in accordance with GAAP as reflected in the then-most recent financial statements provided by the Borrower at the time an investment is made pursuant to this Section 6.04(g); and
(h) (i) contributions of Permitted Receivables Facility Assets and cash deemed received from proceeds of Permitted Receivables Facility Assets to any Receivables Entity to the extent required or made pursuant to Permitted Receivables Facility Documents or to the extent necessary to keep such Receivables Entity properly capitalized to avoid insolvency or consolidation with a Loan Party or any of the Subsidiaries and (ii) loans or advances made by the Borrower or any Receivables Seller to the Receivables Entity for the purchase price of the Receivables and the Permitted Receivables Facility Assets.
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SECTION 6.06.  Swap Agreements
.  The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure or in connection with the repurchase of any Equity Interests of the Borrower to the extent permitted by Section 6.08, and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary.  
SECTION 6.07.  Transactions with Affiliates
.  The Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Borrower and its wholly owned Subsidiaries not involving any other Affiliate, (c) any Restricted Payment permitted by Section 6.08 and (d) transactions contemplated by any Permitted Receivables Facility Documents.
SECTION 6.08.  Restricted Payments
.  The Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a) the Borrower may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its common stock, (b) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (c) the Borrower may make Restricted Payments pursuant to and in accordance with stock compensation plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (d) any Receivables Entity may declare and pay dividends or other distributions to the Borrower or any wholly-owned Subsidiary thereof, (e) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire its Equity Interests with the proceeds received from the substantially concurrent issuance of Equity Interests of such Person, (f) the Borrower may declare and pay dividends in respect of its Equity Interests if, as of the date of the payment of such dividends and after giving effect to the payment thereof and any Indebtedness incurred in connection therewith, no Default has occurred and is continuing or would result and: (i) the Leverage Ratio (as calculated on a pro forma basis) is less than 2.5 to 1.00, or (ii) if the Leverage Ratio (as calculated on a pro forma basis) is equal to or greater than 2.5 to 1.00, then the aggregate amount of dividends paid under the permissions of this clause (f) during any fiscal year shall not exceed an amount equal to the greater of (A) $40,000,000, or (B) 25% of the Borrower’s Consolidated Net Income for the preceding fiscal year, and (g) in addition to the dividends permitted by clause (f) and the other Restricted Payments permitted by this Section 6.08, the Borrower may make other Restricted Payments (including repurchase of the Borrower’s Equity Interests) if, as of the date of the payment of such Restricted Payment and after giving effect to the payment thereof and any Indebtedness incurred in connection therewith, no Default has occurred and is continuing or would result and: (i) the Leverage Ratio (as calculated on a pro forma basis) is less than 2.5 to 1.00, and (ii) if the Leverage Ratio (as calculated on a pro forma basis) is equal to or greater than 2.5 to 1.00, then the aggregate cash amount of all Restricted Payments made under the permissions of this clause (g) during the then current fiscal year shall not exceed an amount equal $40,000,000.
SECTION 6.09.  Restrictive Agreements
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.  The Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to holders of its Equity Interests or to make or repay loans or advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document, or any agreement related to the Amended and Restated Credit Agreement, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.09 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness, (v) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment thereof, (vi) the foregoing shall not apply to customary restrictions and conditions contained in Permitted Receivables Facility Documents and (vii) the foregoing shall not apply to restrictions and conditions imposed by any agreement relating to other Indebtedness permitted under this Agreement so long as such restrictions and conditions are not more onerous for the Borrower and the Subsidiaries than the restrictions and conditions contained in the Loan Documents.
SECTION 6.10.  Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents
.  The Borrower will not, and will not permit any Subsidiary to, directly or indirectly voluntarily prepay, defease or in substance defease, purchase, redeem, retire or otherwise acquire, any Subordinated Indebtedness or any Indebtedness from time to time outstanding under the Subordinated Indebtedness Documents.  Furthermore, the Borrower will not, and will not permit any Subsidiary to, amend the Subordinated Indebtedness Documents or any document, agreement or instrument evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness Documents (or any replacements, substitutions, extensions or renewals thereof) or pursuant to which such Indebtedness is issued where such amendment, modification or supplement provides for the following or which has any of the following effects:
(a) increases the overall principal amount of any such Indebtedness or increases the amount of any single scheduled installment of principal or interest;
(b) shortens or accelerates the date upon which any installment of principal or interest becomes due or adds any additional mandatory redemption provisions;
(c) shortens the final maturity date of such Indebtedness or otherwise accelerates the amortization schedule with respect to such Indebtedness;
(d) increases the rate of interest accruing on such Indebtedness;
(e) provides for the payment of additional fees or increases existing fees;
(f) amends or modifies any financial or negative covenant (or covenant which prohibits or restricts the Borrower or any Subsidiary from taking certain actions) in a manner which is more onerous or more restrictive in any material respect to the Borrower or such Subsidiary or which is otherwise materially 
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adverse to the Borrower, any Subsidiary and/or the Lenders or, in the case of any such covenant, which places material additional restrictions on the Borrower or such Subsidiary or which requires the Borrower or such Subsidiary to comply with more restrictive financial ratios or which requires the Borrower to better its financial performance, in each case from that set forth in the existing applicable covenants in the Subordinated Indebtedness Documents or the applicable covenants in this Agreement; or
(g) amends, modifies or adds any affirmative covenant in a manner which (i) when taken as a whole, is materially adverse to the Borrower, any Subsidiary and/or the Lenders or (ii) is more onerous than the existing applicable covenant in the Subordinated Indebtedness Documents or the applicable covenant in this Agreement.
SECTION 6.11.  Sale and Leaseback Transactions
.  The Borrower will not, nor will it permit any Subsidiary to, enter into any Sale and Leaseback Transaction except for any such Sale and Leaseback Transaction of any fixed or capital assets that (i) is in accordance with, and permitted by, Section 6.01(e), (ii) is made for cash consideration in an amount not less than the cost of such fixed or capital asset and (iii) is consummated within 120 days after the Borrower or such Subsidiary acquires or completes the construction of such fixed or capital asset.
SECTION 6.12.  Financial Covenants
.
(a) Maximum Leverage Ratio.  The Borrower will not permit the ratio (the “Leverage Ratio”), determined as of the end of each of its fiscal quarters ending on and after March 31, 2021, of (i) Consolidated Total Indebtedness to (ii) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending with the end of such fiscal quarter, all calculated for the Borrower and its Subsidiaries on a consolidated basis, to be greater than 3.00 to 1.00; provided that as of the last day of the four (4) fiscal quarters following a Qualified Acquisition, the Borrower may elect to permit the Leverage Ratio to be greater than 3.00 to 1.00 but not greater than 3.50 to 1.00 so long as the Borrower has not previously made two such elections during the term of this Agreement.
(b) Minimum Interest Coverage Ratio.  The Borrower will not permit the ratio (the “Interest Coverage Ratio”), determined as of the end of each of its fiscal quarters ending on and after March 31, 2021, of (i) Consolidated EBITDA to (ii) Consolidated Interest Expense, in each case for the period of four (4) consecutive fiscal quarters ending with the end of such fiscal quarter, all calculated for the Borrower and its Subsidiaries on a consolidated basis, to be less than 2.50 to 1.00.
Article VII
Events of Default
SECTION 7.01.  Events of Default
.  If any of the following events (“Events of Default”) shall occur:
(a) the Borrower shall fail to pay (including, but not limited to, any failure to pay any mandatory prepayment required by Section 2.11(b)) any principal of any Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;
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(b) any Loan Party shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Section) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;
(c) any representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any representation or warranty already qualified by materiality, in any respect) when made or deemed made;
(d) the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Sections 5.01, 5.02, 5.03 (with respect to the Borrower’s existence) or 5.08, in Article VI;
(e) the Borrower or any Subsidiary, as applicable, shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Section) or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after the earlier to occur of either (i) an Authorized Officer of the Borrower becoming aware of such default or (ii) notice thereof having been given to the Borrower by the Administrative Agent (which notice will be given at the request of any Lender);
(f) the Borrower or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable (after the expiration of any grace or notice periods, if any);
(g) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;
(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;
(i) the Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the 
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material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;
(j) the Borrower or any Subsidiary shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
(k) one or more judgments for the payment of money in an aggregate amount in excess of $50,000,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) shall be rendered against the Borrower, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of thirty (30) consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Borrower or any Subsidiary to enforce any such judgment;
(l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect;
(m) a Change in Control shall occur;
(n) the occurrence of any “default”, as defined in any Loan Document (other than this Agreement) or the breach of any of the terms or provisions of any Loan Document (other than this Agreement), which default or breach continues beyond any period of grace therein provided; or
(o) any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms (or the Borrower or any Subsidiary shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction based on any such assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms); 
then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Section), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different times:  (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations of the Borrower accrued hereunder and under the other Loan Documents, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower, and (iii) exercise on behalf of itself and the Lenders all rights and remedies available to it, the Lenders under the Loan Documents and applicable law; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Section, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other Obligations accrued hereunder and under the other Loan Documents, shall automatically become due and payable, in each case, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.  Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights and remedies provided to the Administrative Agent under the Loan Documents or at law or equity.
SECTION 7.02.  Application of Payments
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.  Notwithstanding anything herein to the contrary, following the occurrence and during the continuance of an Event of Default, and notice thereof to the Administrative Agent by the Borrower or the Required Lenders, all payments received on account of the Obligations shall, subject to Section 2.22, be applied by the Administrative Agent as follows:
(i)    first, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts payable to the Administrative Agent (including fees and disbursements and other charges of counsel to the Administrative Agent payable under Section 9.03 and amounts pursuant to Section 2.12(d) payable to the Administrative Agent in its capacity as such);
(ii)    second, to payment of that portion of the Obligations constituting fees, expenses, indemnities and other amounts payable to the Lenders (including fees and disbursements and other charges of counsel to the Lenders payable under Section 9.03) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this clause (ii) payable to them;
(iii)    third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause (iii) payable to them;
(iv)    fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause (iv) payable to them;
(v)    fifth, to the payment in full of all other Obligations, in each case ratably among the Administrative Agent, the Lenders and their respective Affiliates based upon the respective aggregate amounts of all such Obligations owing to them in accordance with the respective amounts thereof then due and payable; and
(vi)    finally, the balance, if any, after all Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by law.
Article VIII
The Administrative Agent
SECTION 8.01.  Authorization and Action
.  (a) Each Lender hereby irrevocably appoints the entity named as Administrative Agent in the heading of this Agreement and its successors and assigns to serve as the administrative agent under the Loan Documents and each Lender authorize the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent under such agreements and to exercise such powers as are reasonably incidental thereto.  Without limiting the foregoing, each Lender hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents. 
(b) As to any matters not expressly provided for herein and in the other Loan Documents (including enforcement or collection), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan Documents), and, unless and 
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until revoked in writing, such instructions shall be binding upon each Lender; provided, however, that the Administrative Agent shall not be required to take any action that (i) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification satisfactory to it from the Lenders with respect to such action or (ii) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors; provided, further, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided.  Except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower, any Subsidiary or any Affiliate of any of the foregoing that is communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any capacity.  Nothing in this Agreement shall require the Administrative Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
(c) In performing its functions and duties hereunder and under the other Loan Documents, the Administrative Agent is acting solely on behalf of the Lenders (except in limited circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are entirely mechanical and administrative in nature.  Without limiting the generality of the foregoing:
(i)    the Administrative Agent does not assume and shall not be deemed to have assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for any Lender or holder of any other obligation other than as expressly set forth herein and in the other Loan Documents, regardless of whether a Default or an Event of Default has occurred and is continuing (and it is understood and agreed that the use of the term “agent” (or any similar term) herein or in any other Loan Document with reference to the Administrative Agent is not intended to connote any fiduciary duty or other implied (or express) obligations arising under agency doctrine of any applicable law, and that such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between contracting parties); additionally, each Lender agrees that it will not assert any claim against the Administrative Agent based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this Agreement and the transactions contemplated hereby;

(ii)    nothing in this Agreement or any Loan Document shall require the Administrative Agent to account to any Lender for any sum or the profit element of any sum received by the Administrative Agent for its own account;

(d) The Administrative Agent may perform any of its duties and exercise its rights and powers hereunder or under any other Loan Document 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 of their respective duties and exercise their respective rights and powers through their respective Related Parties.  The exculpatory provisions of this Article 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 pursuant to this Agreement.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agent except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agent.
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(e) None of any Syndication Agent, any Co-Documentation Agent, any Co-Management Agent or any Joint Lead Arranger shall have obligations or duties whatsoever in such capacity under this Agreement or any other Loan Document and shall incur no liability hereunder or thereunder in such capacity, but all such persons shall have the benefit of the indemnities provided for hereunder.
(f) In case of the pendency of any proceeding with respect to any Loan Party under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, the Administrative Agent (irrespective of whether the principal of any Loan or any other obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
(i)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim under Sections 2.12, 2.13, 2.15, 2.17 and 9.03) allowed in such judicial proceeding; and

(ii)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent, under the Loan Documents (including under Section 9.03).  Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

(g) The provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders and, except solely to the extent of the Borrower’s rights to consent pursuant to and subject to the conditions set forth in this Article, none of the Borrower or any Subsidiary, or any of their respective Affiliates, shall have any rights as a third party beneficiary under any such provisions.  Each Lender or Affiliate of a Lender party to a Swap Agreement, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Guarantees of the Obligations provided under the Loan Documents, to have agreed to the provisions of this Article.
SECTION 8.02.  Administrative Agent’s Reliance, Indemnification, Etc.
  (a) Neither the Administrative Agent nor any of its Related Parties shall be (i) liable to any Lender for any action taken or omitted to be taken by it under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and nonappealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other 
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document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder.
(b) The Administrative Agent shall be deemed not to have knowledge of any (i) notice of any of the events or circumstances set forth or described in Section 5.02 unless and until written notice thereof stating that it’s a “notice under Section 5.02” in respect of this Agreement and identifying the specific clause under said Section is given to the Administrative Agent by the Borrower, or (ii) notice of any Default or Event of Default unless and until written notice thereof (stating that it is a “notice of Default” or a “notice of an Event of Default”) is given to the Administrative Agent by the Borrower, a Lender.  Further, the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document or the occurrence of any Default or Event of Default, (iv) the sufficiency, validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items (which on their face purport to be such items) expressly required to be delivered to the Administrative Agent or satisfaction of any condition that expressly refers to the matters described therein being acceptable or satisfactory to the Administrative Agent.  Notwithstanding anything herein to the contrary, the Administrative Agent shall not be liable for, or be responsible for any loss, cost or expense suffered by the Borrower, any Subsidiary, any Lender as a result of, any determination of the Revolving Credit Exposure, any of the component amounts thereof or any portion thereof attributable to each Lender, or any Exchange Rate or Dollar Amount.
(c) Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 9.04, (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may consult with legal counsel (including counsel to the Borrower), independent public accountants and other experts selected by it, and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations made by or on behalf of any Loan Party in connection with this Agreement or any other Loan Document, (v) in determining compliance with any condition hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a Lender, may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender sufficiently in advance of the making of such Loan and (vi) shall be entitled to rely on, and shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon, any notice, consent, certificate or other instrument or writing (which writing may be a fax, any electronic message, Internet or intranet website posting or other distribution) or any statement made to it orally or by telephone and believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or parties (whether or not such Person in fact meets the requirements set forth in the Loan Documents for being the maker thereof).
SECTION 8.03.  Posting of Communications
.  (a) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”). 
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(b) Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Effective Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders and the Borrower acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there are confidentiality and other risks associated with such distribution.  Each of the Lenders and the Borrower hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.
(c) THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”.  THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY JOINT LEAD ARRANGER, ANY CO-DOCUMENTATION AGENT, ANY CO-MANAGEMENT AGENT, ANY SYNDICATION AGENT OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM. 
(d) “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender by means of electronic communications pursuant to this Section, including through an Approved Electronic Platform.
(e) Each Lender agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents.  Each Lender agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender’s email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.
(f) Each of the Lenders and the Borrower agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent’s generally applicable document retention procedures and policies.
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(g) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.
SECTION 8.04.  The Administrative Agent Individually
.  With respect to its Commitment and Loans, the Person serving as the Administrative Agent shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender.  The terms “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity as a Lender or as one of the Required Lenders, as applicable.  The Person serving as the Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of banking, trust or other business with, the Borrower, any Subsidiary or any Affiliate of any of the foregoing as if such Person was not acting as the Administrative Agent and without any duty to account therefor to the Lenders.
SECTION 8.05.  Successor Administrative Agent
.  (a) The Administrative Agent may resign at any time by giving 30 days’ prior written notice thereof to the Lenders and the Borrower, whether or not a successor Administrative Agent has been appointed.  Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent.  If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of 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.  In either case, such appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld and shall not be required while an Event of Default has occurred and is continuing).  Upon the acceptance of any appointment as Administrative Agent by a successor Administrative Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Administrative Agent.  Upon the acceptance of appointment as Administrative Agent by a successor Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents.  Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents.
(b) Notwithstanding paragraph (a) of this Section, in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may give notice of the effectiveness of its resignation to the Lenders and the Borrower, whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents; and (ii) the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent; provided that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender.  Following the effectiveness of the Administrative Agent’s resignation from its capacity as such, the provisions of this Article and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, 
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shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.
SECTION 8.06.  Acknowledgments of Lenders
.  (a) Each Lender represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and that it has, independently and without reliance upon the Administrative Agent, any Joint Lead Arranger or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, any Joint Lead Arranger or any other Lender, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
(b) Each Lender, by delivering its signature page to this Agreement on the Effective Date, or delivering its signature page to an Assignment and Assumption or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Effective Date.
(c) (i) Each Lender hereby agrees that (x) if the Administrative Agent notifies such Lender that the Administrative Agent has determined in its sole discretion that any funds received by such Lender from the Administrative Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a “Payment”) were erroneously transmitted to such Lender (whether or not known to such Lender), and demands the return of such Payment (or a portion thereof), such Lender shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall not assert, and hereby waives, as to the Administrative Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Payments received, including without limitation any defense based on “discharge for value” or any similar doctrine.  A notice of the Administrative Agent to any Lender under this Section 8.06(c) shall be conclusive, absent manifest error. 
(ii) Each Lender hereby further agrees that if it receives a Payment from the Administrative Agent or any of its Affiliates (x) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by the Administrative Agent (or any of its Affiliates) with respect to such Payment (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment.  Each Lender agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such 
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Lender shall promptly notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. 
(iii) The Borrower and each other Loan Party hereby agrees that (x) in the event an erroneous Payment (or portion thereof) are not recovered from any Lender that has received such Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Lender with respect to such amount and (y) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Loan Party. 
(iv) Each party’s obligations under this Section 8.06(c) shall survive the resignation or replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Loan Document.
SECTION 8.07.  Certain ERISA Matters
.  (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, that at least one of the following is and will be true:
(i) such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments or this Agreement, 

(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, 

(iii) (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or
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(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has not provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent, and each Joint Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the Administrative Agent, or any Joint Lead Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).
Article IX
Miscellaneous
SECTION 9.01.  Notices
.  (a) Except in the case of notices and other communications expressly permitted to be given by telephone (and subject to paragraph (b) 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:
(i) if to the Borrower, to it at Arcosa, Inc., 500 North Akard Street, Suite 400, Dallas, Texas 75201, Attention: Gail M. Peck;
(ii) if to the Administrative Agent, to it at JPMorgan Chase Bank, N.A., 712 Main Street, 8th Floor, Houston, Texas, 77002, Attention: Kody Nerios (Email: kody.j.nerios@jpmorgan.com; Telecopy No.: 713-216-6710; Telephone No: 214-965-3736), with a copy to JPMorgan Chase Bank, N.A., Loan and Agency Services Group, 10 South Dearborn Street, Floor L2, Chicago, IL 60603, Attn: Leonida Mischke (Email: leonida.g.mischke@jpmorgan.com; Telecopy No.: 888-292-9533; Telephone No.: 312-385-7055); and
(iii) if to any other Lender (other than JPMorgan Chase Bank, N.A.), to it at its address (or telecopy number) set forth in its Administrative Questionnaire.
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through the Approved Electronic Platform, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).
(b) Notices and other communications to the Lenders hereunder may be delivered or furnished by using Approved Electronic Platform pursuant to procedures approved by the Administrative Agent; provided 
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that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent or the Borrower 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.
Unless the Administrative Agent otherwise prescribes, (i) 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), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto.
SECTION 9.02.  Waivers; Amendments
.  (a) No failure or delay by the Administrative Agent or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of 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 directly 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 directly affected thereby, (iv) change Section 2.09(c) or 2.18(b) or (d) in a manner that would alter the pro rata sharing of payments or pro rata reduction of Commitments required thereby, without the written consent of each Lender affected thereby, (v) change the payment waterfall provisions of Section 2.22(b) or 7.02 without the written consent of each Lender affected thereby, (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 
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written consent of each Lender, (vii) change any of the provisions of the definition of “Agreed Currencies” without the written consent of each Lender, or (viii) release all or substantially all of the Subsidiary Guarantors from their obligations under the Subsidiary Guaranty, in each case, without the written consent of each Lender; provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent without the prior written consent of the Administrative Agent (it being understood that any change to Section 2.22 shall require the consent of the Administrative Agent).
(c) Notwithstanding the foregoing, this Agreement and any other Loan Document may be amended (or amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the Borrower (x) to add one or more credit facilities to this Agreement and to permit extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Loans and the accrued interest and fees in respect thereof and (y) to include appropriately the Lenders holding such credit facilities in any determination of the Required Lenders and Lenders.
(d) If the Administrative Agent and the Borrower acting together identify any ambiguity, omission, mistake, typographical error or other defect in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Borrower shall be permitted to amend, modify or supplement such provision to cure such ambiguity, omission, mistake, typographical error or other defect, and such amendment shall become effective without any further action or consent of any other party to this Agreement.
(e) If, in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender directly affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but has not been obtained being referred to herein as a “Non-Consenting Lender”), then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently with such replacement, (i) another bank or other entity (other than any Ineligible Institution) which is reasonably satisfactory to the Borrower, the Administrative Agent shall agree, as of such date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b) of Section 9.04, and (ii) the Borrower shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination, including without limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to the payment which would have been due to such Lender on the day of such replacement under Section 2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender.  Each party hereto agrees that (a) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (b) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender, provided that any such documents shall be without recourse to or warranty by the parties thereto.
(f) Notwithstanding anything to the contrary contained herein, the parties hereto hereby agree that all Swap Agreements in effect from time to time between any Lender (or any of its Affiliates) and the 
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Borrower or any of the Subsidiaries are independent agreements governed by the written provisions of such Swap Agreements, which will remain in force and effect, notwithstanding any repayment, prepayment, acceleration, reduction, increase, or change in the terms of this Agreement or any other Loan Document except as otherwise expressly provided in any such Swap Agreement, and any payoff statement from the Administrative Agent relating to the Obligations hereunder shall not apply to any such Swap Agreement unless otherwise expressly consented or agreed to by the applicable Lender (or its Affiliate) and the Borrower
SECTION 9.03.  Expenses; Indemnity; Damage Waiver
.  (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of outside counsel for the Administrative Agent, in connection with the syndication and distribution (including, without limitation, via the internet or through a service such as Intralinks) of the credit facilities provided for herein, the preparation and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all out-of-pocket expenses incurred by the Administrative Agent or any Lender, including the fees, charges and disbursements of any outside counsel for the Administrative Agent or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement and any other Loan Document, including its rights under this Section, or in connection with the Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.
(b) The Borrower shall indemnify the Administrative Agent and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any outside counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument contemplated thereby, the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or the use of the proceeds therefrom, (iii) 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 (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not such claim, litigation, investigation or proceeding is brought by the Borrower or any other Loan Party or its or their respective equity holders, Affiliates, creditors or any other third Person and whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have (x) resulted from the material breach by such Indemnitee of its obligations under the Loan Documents or the gross negligence or willful misconduct of such Indemnitee or (y) arisen out of disputes solely between and among Indemnitees (other than (1) as a result of any act or omission by the Borrower or any of its Affiliates and (2) any dispute involving an Indemnitee acting in its capacity or fulfilling its role as Administrative Agent, Lead Arranger, Co-Documentation Agent, Co-Management Agent or Syndication Agent).  This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages arising from any non-Tax claim.
(c) Each Lender severally agrees to pay any amount required to be paid by the Borrower under paragraph (a) or (b) of this Section 9.03 to the Administrative Agent and each Related Party of any of the foregoing Persons (each, an “Agent Indemnitee”) (to the extent not reimbursed by the Borrower and without 
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limiting the obligation of the Borrower to do so), ratably according to their respective Applicable Percentage in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Applicable Percentage immediately prior to such date), from and against any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent Indemnitee in any way relating to or arising out of the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent Indemnitee under or in connection with any of the foregoing; 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 such Agent Indemnitee in its capacity as such; provided further that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from such Agent Indemnitee’s gross negligence or willful misconduct.  The agreements in this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.
(d) To the extent permitted by applicable law, (i) the Borrower shall not assert, and hereby waives, any claim against any Indemnitee for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic or other information transmission systems (including the Internet), and (ii) no party hereto shall assert, and each such party hereby waives, any claim against 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, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or the use of the proceeds thereof; provided that, nothing in this clause (d)(ii) shall relieve the Borrower of any obligation it may have to indemnify an Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.
(e) All amounts due under this Section shall be payable not later than fifteen (15) days after written demand therefor.
SECTION 9.04.  Successors and Assigns
.  (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, 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 paragraph (c) 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.
(b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible Institution) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of:
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(A) the Borrower (provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof); provided, further, that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; and
(B) the Administrative Agent; provided that no consent of the Administrative Agent shall be required for an assignment of any Commitment to an assignee that is a Lender (other than a Defaulting Lender) with a Commitment immediately prior to giving effect to such assignment.
(ii) Assignments shall be subject to the following additional conditions:
(A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund 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 Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;
(B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement;
(C) the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing and recordation fee of $3,500, such fee to be paid by either the assigning Lender or the assignee Lender or shared between such Lenders; and
(D) 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 Affiliates and their Related Parties or their respective securities) 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.
For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution” have the following meanings:
“Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
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“Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or its Lender Parent, (c) the Borrower, any of its Subsidiaries or any of its Affiliates, or (d) a company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof.
(iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 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 (c) of this Section.
(iv) The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount (and stated interest) of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent 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.
(v) Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.07(b), 2.18(e) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.
(c) Any Lender may, without the consent of the Borrower or the Administrative Agent, sell participations to one or more banks or other entities (a “Participant”), other than an Ineligible Institution, 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 (A) such Lender’s obligations under this Agreement shall remain unchanged; (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations; and (C) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall 
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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 9.02(b) that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 (subject to the requirements and limitations therein, including the requirements under Section 2.17(f) (it being understood that the documentation required under Section 2.17(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.15 or 2.17, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.19(b) with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(d) as though it were a Lender.  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 the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
SECTION 9.05.  Survival
.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans, 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 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 or any other Loan Document is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or 
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termination of the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof.
SECTION 9.06.  Counterparts; Integration; Effectiveness; Electronic Execution
.  This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that nothing herein shall require the Administrative Agent to accept electronic signatures in any form or format without its prior written consent.  Without limiting the generality of the foregoing, the Borrower hereby (i) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders and the Loan Parties, electronic images of this Agreement or any other Loan Documents (in each case, including with respect to any signature pages thereto)  shall have the same legal effect, validity and enforceability as any paper original, and (ii) waives any argument, defense or right to contest the validity or enforceability of the Loan Documents based solely on the lack of paper original copies of any Loan Documents, including with respect to any signature pages thereto.
SECTION 9.07.  Severability
.  Any provision of any Loan Document 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 thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
SECTION 9.08.  Right of Setoff
.  If an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final and in whatever currency denominated) at any time held, and other obligations at any time owing, by such Lender or any such Affiliate, to or for the credit or the account of the Borrower or any Subsidiary Guarantor against any 
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and all of the Obligations now or hereafter existing under this Agreement or any other Loan Document to such Lender or their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations may be contingent or unmatured or are owed to a branch office or Affiliate of such Lender different from the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.22 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 and the Lenders, and (y) 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 setoff.  The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have.  Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application.
SECTION 9.09.  Governing Law; Jurisdiction; Consent to Service of Process
.  (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York.
(b) Each of the Lenders and the Administrative Agent hereby irrevocably and unconditionally agrees that, notwithstanding the governing law provisions of any applicable Loan Document, any claims brought against the Administrative Agent by any Lender relating to this Agreement, any other Loan Document or the consummation or administration of the transactions contemplated hereby or thereby shall be construed in accordance with and governed by the law of the State of New York.
(c) The Borrower 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 the Borough of Manhattan, and of the United States District Court for 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 any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction.
(d) The Borrower 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 or any other Loan Document in any court referred to in paragraph (c) 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.
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(e) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.
SECTION 9.10.  WAIVER OF JURY TRIAL
.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (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 9.11.  Headings
.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.
SECTION 9.12.  Confidentiality
.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its, and its Affiliates’, directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any Governmental Authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies under this Agreement or any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (1) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (2) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) on a confidential basis to (1) any rating agency in connection with rating the Borrower or its Subsidiaries or the credit facilities provided for herein or (2) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the credit facilities provided for herein, (h) with the consent of the Borrower or (i) to the extent such Information (1) becomes publicly available other than as a result of a breach of this Section or (2) becomes available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower.  For the purposes of this Section, “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 nonconfidential 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 
94

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.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, 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.
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, THE OTHER LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS 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 9.13.  USA PATRIOT Act
.  Each Lender that is subject to the requirements of the Patriot Act hereby notifies each Loan Party that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies such Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the Patriot Act.
SECTION 9.14.  Releases of Subsidiary Guarantors
.
(a) A Subsidiary Guarantor shall automatically be released from its obligations under the Subsidiary Guaranty upon the consummation of any transaction permitted by this Agreement as a result of which such Subsidiary Guarantor ceases to be a Subsidiary; provided that, if so required by this Agreement, the Required Lenders shall have consented to such transaction and the terms of such consent shall not have provided otherwise.  In connection with any termination or release pursuant to this Section, the Administrative Agent shall (and is hereby irrevocably authorized by each Lender to) execute and deliver to any Loan Party, at such Loan Party’s expense, all documents that such Loan Party shall reasonably request to evidence such termination or release.  Any execution and delivery of documents pursuant to this Section shall be without recourse to or warranty by the Administrative Agent.
(b) Further, the Administrative Agent shall (and is hereby irrevocably authorized by each Lender to), upon the request of the Borrower, release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty if such Subsidiary Guarantor is no longer a Material Domestic Subsidiary.
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(c) At such time as the principal and interest on the Loans, the fees, expenses and other amounts payable under the Loan Documents and the other Obligations (other than obligations under any Swap Agreement and other Obligations expressly stated to survive such payment and termination) shall have been paid in full in cash and the Commitments shall have been terminated, the Subsidiary Guaranty and all obligations (other than those expressly stated to survive such termination) of each Subsidiary Guarantor thereunder shall automatically terminate, all without delivery of any instrument or performance of any act by any Person.
SECTION 9.15.  Interest Rate Limitation
.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the NYFRB Rate to the date of repayment, shall have been received by such Lender.
SECTION 9.16.  No Fiduciary Duty, etc.
.  The Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that no Credit Party will have any obligations except those obligations expressly set forth herein and in the other Loan Documents and each Credit Party is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower with respect to the Loan Documents and the transactions contemplated therein and not as a financial advisor or a fiduciary to, or an agent of, the Borrower or any other person.  The Borrower agrees that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary duty by such Credit Party in connection with this Agreement and the transactions contemplated hereby.  Additionally, the Borrower acknowledges and agrees that no Credit Party is advising the Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction.  The Borrower shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Credit Parties shall have no responsibility or liability to the Borrower with respect thereto.
The Borrower further acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service securities or banking firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, any Credit Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, the Borrower and other companies with which it may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.
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In addition, the Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party and its affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Borrower or its Subsidiaries may have conflicting interests regarding the transactions described herein and otherwise.  No Credit Party will use confidential information obtained from the Borrower by virtue of the transactions contemplated by the Loan Documents or its other relationships with the Borrower in connection with the performance by such Credit Party of services for other companies, and no Credit Party will furnish any such information to other companies.  The Borrower also acknowledges that no Credit Party has any obligation to use in connection with the transactions contemplated by the Loan Documents, or to furnish to the Borrower, confidential information obtained from other companies.
SECTION 9.17.  Acknowledgment and Consent to Bail-In of EEA Financial Institutions
.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
(b) the effects of any Bail-In Action on any such liability, including, if applicable:
(i) a reduction in full or in part or cancellation of any such liability;
(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

[Signature Pages Follow]

97

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

ARCOSA, INC.,
as the Borrower
By         /s/ Gail M. Peck                                      
Name:  Gail M. Peck
Title:    Senior Vice President, Finance and Treasurer

Signature Page to 364-Day Credit Agreement

JPMORGAN CHASE BANK, N.A., individually as a Lender and as Administrative Agent
By:        /s/ Kody J. Nerios                        
Name:  Kody J. Nerios
Title:       Authorized 

        

Signature Page to 364-Day Credit Agreement

BANK OF AMERICA, N.A.,
as a Lender, as Syndication Agent
By:          /s/ Allison W. Connally                
Name:    Allison W. Connally
Title:    Senior Vice President

        

Signature Page to 364-Day Credit Agreement​

Exhibit 4.5{*}
​
Execution Version 
CONFIDENTIAL
​
[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.
​
​
​
​
​
​
​
JOINT COMMERCIALIZATION AGREEMENT
​
by and between
GENMAB A/S
and
SEAGEN INC.
Dated as of October 19, 2020
​
​

​
[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
	TABLE OF CONTENTS

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	Page

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	ARTICLE 1 DEFINITIONS
	1

	ARTICLE 2 GOVERNANCE
	21

	2.1
	Governance Generally
	21

	2.2
	Joint Steering Committee
	23

	2.3
	Joint Development Committee.
	24

	2.4
	Joint Commercialization Committee
	26

	2.5
	Joint Finance Team
	27

	2.6
	Joint Chemistry, Manufacturing & Controls Team
	28

	2.7
	Joint Medical Affairs Team
	30

	2.8
	Joint Regulatory Team
	32

	2.9
	CDS Working Group
	33

	2.10
	General Committee, Team, and Working Group Membership and Procedures
	33

	2.11
	Alliance Managers
	37

	2.12
	Budgetary Matters
	38

	ARTICLE 3 GENMAB CO-PROMOTION
	38

	3.1
	Genmab Right to Co-Promote and Provide Medical Affairs Efforts
	38

	3.2
	Co-Promotion in the United States
	40

	3.3
	Performance of US Activities
	41

	3.4
	Size and Deployment of Sales Representatives and MSLs in the United States
	41

	3.5
	US Coordination Plan
	42

	3.6
	Compliance and Training
	43

	3.7
	Miscellaneous
	44

	ARTICLE 4 COMMERCIALIZATION; FURTHER DEVELOPMENT
	46

	4.1
	Commercialization in Major Markets Generally
	46

	4.2
	Combined Major Market Commercialization Plan
	47

	4.3
	Commercialization by each Party in its Party Major Market(s)
	48

	4.4
	Commercialization in the Royalty Territory
	50

	4.5
	Recalls and Withdrawals
	50

​

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	TABLE OF CONTENTS

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	4.6
	Development Activities
	50

	4.7
	Subcontracting and Sublicensing
	52

	ARTICLE 5 FINANCIAL TERMS
	53

	5.1
	Profit Sharing in the Major Markets
	54

	5.2
	Royalty Territory
	56

	5.3
	Taxes
	57

	5.4
	Currency
	60

	5.5
	Foreign Exchange
	60

	5.6
	Late Payments
	60

	5.7
	Financial Records; Audits
	60

	5.8
	Third Party License Agreements.
	61

	5.9
	Payment to Third Parties
	62

	ARTICLE 6 MANUFACTURE AND SUPPLY
	63

	6.1
	Overview
	63

	6.2
	Global Manufacturing Plan
	63

	6.3
	Manufacturing Transition; Supply and Quality Agreements
	64

	6.4
	Existing CMOs; Second Source
	65

	6.5
	Manufacturing Costs
	65

	6.6
	Inventory
	65

	6.7
	Product Shortfall; Allocation
	65

	ARTICLE 7 MEDICAL AFFAIRS ACTIVITIES
	66

	7.1
	Overview
	66

	7.2
	Combined Major Market Medical Affairs Plan
	66

	7.3
	Party Major Market(s) Medical Affairs
	67

	7.4
	Medical Affairs Standards of Conduct
	67

	ARTICLE 8 REGULATORY MATTERS
	68

	8.1
	Regulatory Matters.
	68

	8.2
	Pharmacovigilance; Adverse Event Reporting
	72

	ARTICLE 9 COMPLIANCE
	72

	9.1
	Compliance
	72

​

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	TABLE OF CONTENTS

	(continued)

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	9.2
	Export
	74

	ARTICLE 10 REPRESENTATIONS AND WARRANTIES; COVENANTS
	74

	10.1
	Mutual Representations and Warranties
	74

	10.2
	No Debarment
	74

	10.3
	DISCLAIMER
	75

	ARTICLE 11 INTELLECTUAL PROPERTY
	75

	11.1
	Copyrights
	75

	11.2
	Product Trademarks
	75

	11.3
	Infringement of Trademarks
	76

	11.4
	Domain Names.
	77

	11.5
	No Implied Licenses
	77

	11.6
	Defense of Third Party Patent Claims
	77

	11.7
	Amendment of Collaboration Agreement IP Provisions
	78

	11.8
	Patent Costs
	79

	11.9
	Court or Government Order or Decree
	79

	ARTICLE 12 AMENDMENT TO EXCLUSIVITY PROVISIONS OF COLLABORATION AGREEMENT
	80

	12.1
	Overview
	80

	12.2
	Amendments to Section 1.1 of the Collaboration Agreement
	80

	12.3
	Amendments to Section 3.4 of the Collaboration Agreement
	81

	ARTICLE 13 CONFIDENTIALITY
	84

	13.1
	Confidentiality
	84

	13.2
	Publicity
	86

	13.3
	Securities Filings
	86

	13.4
	Publications
	86

	13.5
	Existing Confidentiality Agreement
	87

	ARTICLE 14 TERM AND TERMINATION
	87

	14.1
	Term
	87

	14.2
	Expiration
	87

	14.3
	Material Breach
	87

​
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	TABLE OF CONTENTS

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	14.4
	Termination of Co-Funding; Out-License of Product
	90

	14.5
	Termination for Insolvency; Bankruptcy
	90

	14.6
	Remedies
	90

	14.7
	Accrued Rights; Surviving Obligations
	90

	ARTICLE 15 INDEMNIFICATION
	91

	15.1
	Indemnification
	91

	15.2
	Indemnification Procedure
	91

	15.3
	Treatment of Manufacturing Losses
	92

	15.4
	No Consequential or Punitive Damages
	92

	15.5
	Effect on Collaboration Agreement
	92

	ARTICLE 16 DISPUTE RESOLUTION
	93

	16.1
	Disputes.
	93

	ARTICLE 17 MISCELLANEOUS
	93

	17.1
	Non-Solicitation of Employees
	​

	17.2
	Maintenance of Records
	93

	17.3
	Force Majeure
	94

	17.4
	Assignment
	94

	17.5
	Severability
	94

	17.6
	Insurance
	95

	17.7
	Notices
	95

	17.8
	Governing Law
	96

	17.9
	Headings; Construction
	96

	17.10
	No Third Party Beneficiaries
	97

	17.11
	Entire Agreement; Amendment
	97

	17.12
	Relationship Between Agreements
	97

	17.13
	Independent Contractors
	97

	17.14
	Affiliates
	97

	17.15
	No Waiver
	98

	17.16
	Fees and Expenses
	98

	17.17
	Counterparts
	98

​
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	TABLE OF CONTENTS

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	SCHEDULES
	​
	​

	​
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	Schedule 1.6:
	Approved Subcontractors Schedule 
	​

	1.44:
	Europe
	​

	Schedule 3.1:
	Genmab US Activities
	​

	Schedule 5.3.4:
	Certain U.S. Federal Income Tax Matters Schedule 
	​

	6.3:
	Manufacturing
	​

​
​

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[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

INDEX OF DEFINED TERMS
 ​
	​

	​

	​

	​

	​

	Adverse Event
	1.1
	    
	Core Data Sheet
	1.30

	Adverse Ruling
	14.3.1
	​
	Corporate Names
	1.31

	Affected Party
	8.1.10
	​
	CSO
	1.32

	Affected Region
	14.3.1
	​
	CVO Activities
	1.33

	Affiliate
	1.2
	​
	DAA
	1.39

	Agreement
	Preamble
	​
	Data Protection Laws
	1.4

	Alliance Manager
	2.11.1
	​
	Default Notice
	14.3.1

	Allowable Expenses
	1.3
	​
	Detail
	1.34

	Applicable Law
	1.4
	​
	Development
	1.35

	Approved Plans
	1.5
	​
	Development Costs
	1.36

	Approved Subcontractors
	1.6
	​
	Disclosing Party
	13.1

	[*] Agreement
	1.90
	​
	Disease
	1.37

	Biosimilar Product
	1.7
	​
	Dollars
	1.38

	BLA
	1.8
	​
	Drug Regulatory Approval Application
	1.39

	Breaching Party
	14.3
	​
	ECI
	5.3.4

	Business Day
	1.9
	​
	Effective Date
	Preamble

	CDS Working Group
	2.9
	​
	EFTA
	1.40

	Centralized Procedure
	1.10
	​
	EMA
	1.41

	CFR
	1.53
	​
	EU
	1.42

	Change in Control
	1.11
	​
	EU14
	1.43

	China
	1.12
	​
	Europe
	1.44

	Claims
	15.1
	​
	European Commission
	1.45

	Clinical Supply
	1.13
	​
	Existing CMO Agreements
	6.3.1

	Clinical Supply Agreement
	1.14
	​
	Existing Product CMOs
	6.3.1

	Clinical Trial
	1.15
	​
	FDA
	1.46

	CMC 
	2.6.2(e)
	​
	FFDCA
	1.47

	CMC Development
	1.16
	​
	First Regulatory Approval
	1.48

	CMC Development Costs
	1.17
	​
	Force Majeure
	17.3

	CMOs
	6.3.1
	​
	FTE
	1.49

	Collaboration
	1.18
	​
	FTE Cost
	1.50

	Collaboration Accounting Standards
	1.19
	​
	Fundamental Breach
	14.3.1

	Collaboration Agreement
	Recitals
	​
	GCP
	1.53

	Combination Product
	1.20
	​
	Genmab
	Preamble

	Combined Major Market
	​
	​
	Genmab Japan Approval Trial
	4.6.3

	Commercialization Plan
	4.1
	​
	Genmab Major Market
	1.51

	Combined Major Market Medical
	​
	​
	Genmab Major Market
	​

	Affairs Plan
	7.2
	​
	Commercialization Plan
	4.1

	Combined Major Market Plans
	1.21
	​
	Genmab Major Market Medical Affairs Plan
	7.3.1

	Commercial Packaging and Labeling
	​
	​
	Genmab Managers  
	3.1.1(c)

	Costs
	1.22
	​
	Genmab MSLs
	3.1.1

	Commercial Sublicense
	4.7.2(c)
	​
	Genmab Party Combination Study
	1.81

	Commercial Supply
	1.23
	​
	Genmab Sales Representatives
	3.1.1

	Commercial Supply Agreement
	6.3.2
	​
	Genmab US Activities
	3.1.2

	Commercialization
	1.24
	​
	Genmab US Personnel
	3.1.1

	Commercialization Costs
	1.25
	​
	Global Brand Strategy 
	2.4.2(a)

	Commercialization Plan
	1.26
	​
	Global Development Plan
	2.3.2

	Commercially Reasonable Efforts
	1.27
	​
	Global Manufacturing Plan.
	6.2

	Committee
	1.28
	​
	Global Plan
	1.52

	Confidential Information
	13.1
	​
	Global Regulatory Plan
	8.1.1

	Control
	1.29
	​
	​
	​

​
​

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[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

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	INDEX OF DEFINED TERMS

	(continued)

	​
	​
	​
	​
	​

	GLP
	1.54
	​
	Medical Science Liaisons
	1.76

	GMP
	1.55
	​
	MSLs
	1.76

	Good Clinical Practice
	1.53
	​
	Net Loss
	1.77

	Good Laboratory Practice
	1.54
	​
	Net Profit
	1.77

	Good Manufacturing Practice
	1.55
	​
	Net Profit/Net Loss
	1.77

	Governmental Authority
	1.56
	​
	Net Sales
	1.78

	GxP
	1.57
	​
	Non-Breaching Party
	14.3

	HCP
	1.58
	​
	Officials
	9.1.2

	Healthcare Professional
	1.58
	​
	Other Components
	1.20

	HEOR
	1.24
	​
	Other Marks
	11.2.1

	Hospital and Organized Customer
	​
	​
	Out of Pocket Costs
	1.79

	Activities
	1.59
	​
	Packaging and Labeling
	1.80

	ICH
	1.60
	​
	Party
	Preamble

	IND
	1.61
	​
	Party Combination Study
	1.81

	Indemnified Party
	15.2.1
	​
	Party Major Market Commercialization Plan
	1.81

	Indemnifying Party
	15.2.1
	​
	Party Major Market Medical Affairs Plan
	1.85

	Indemnitees
	15.1
	​
	Party Major Market Plans
	1.84

	Indirect Taxes
	1.62
	​
	Party Major Market(s)
	1.83

	Industry Codes
	9.1
	​
	Party Regulatory Plan
	8.1.1

	Information
	1.63
	​
	Party Tactical Matter
	1.86

	JCC
	2.4.1
	​
	Party Written Consent
	1.87

	JCMCT
	2.6.1
	​
	Patent Costs
	1.88

	JDC
	2.3.1
	​
	Patent Infringement Claims
	11.6

	JFT
	2.5.1
	​
	Patents
	1.89

	JMAT
	2.7.1
	​
	Payee Party
	5.3.2

	Joint Chemistry, Manufacturing &
	​
	​
	Paying Party
	5.3.2

	Controls Team
	2.6.1
	​
	Payment
	9.1.2

	Joint Commercialization Committee
	2.4.1
	​
	Payments to Third Parties
	1.90

	Joint Committee Consent
	1.64
	​
	Payors
	1.91

	Joint Development Committee
	2.3.1
	​
	Person
	1.92

	Joint Finance Team
	2.5.1
	​
	Post-Market Surveillance
	1.93

	Joint Medical Affairs Team
	2.7.1
	​
	Primary Position Detail
	1.94

	Joint Regulatory Team
	2.8.1
	​
	Process
	4.7.2(d)

	Joint Steering Committee
	1.65
	​
	Product
	1.95

	JRT
	2.8.1
	​
	Product Inquiry Notice
	8.1.10

	JSC
	1.65
	​
	Product Liability
	1.96

	Launch
	1.66
	​
	Product Liability Losses
	1.97

	Lead Negotiating Party
	5.8.3
	​
	Product Trademarks
	11.2.1

	Lead Regulatory Party
	8.1.2
	​
	Promote
	1.98

	[*] Agreement
	1.67
	​
	Promotional Materials
	1.99

	Losses
	15.1
	​
	Publication
	13.4

	MAA
	1.68
	​
	Publication Charter
	13.4

	Major Market Sublicense
	1.114
	​
	QA
	1.100

	Major Markets
	1.69
	​
	QC
	1.101

	Manufacture
	1.70
	​
	Quarter
	1.102

	Manufacturing Costs
	1.71
	​
	Receiving Party
	13.1

	Manufacturing Losses
	1.72
	​
	Reconciling Payment Determination  
	5.1.4(b)

	Manufacturing Transition Plan
	6.3.1
	​
	Regional Material Breach
	14.3.1

	Medical Affairs Activities
	1.73
	​
	Regulatory Approval
	1.103

	Medical Affairs Costs
	1.74
	​
	​
	​

	Medical Affairs Plan
	1.75
	​
	​
	​

​
​

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[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

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	​

	​

	​

	​

	​

	INDEX OF DEFINED TERMS

	(continued)

	​
	​
	​
	​
	​

	Regulatory Authority
	1.104
	​
	Target Prescribers
	1.34

	Related Manufacturing Agreement
	1.105
	​
	Tax Code
	5.3.4

	Related Party
	1.106
	​
	Tax Partnership
	5.3.4

	Relevant Review Period
	5.1.4(b)
	​
	Tax Partnership Formation Date
	5.3.4

	Royalty Term
	5.2.3
	​
	Team
	2.10.1

	Royalty Territory
	1.107
	​
	Term
	14.1

	Royalty Territory Decisions 
	2.1.3(b)
	​
	Territory
	1.116

	Sales and Distribution
	1.108
	​
	Third Party
	1.117

	Sales Representative
	1.109
	​
	Third Party License Agreement
	1.118

	Samples
	1.110
	​
	Trademark Costs
	1.119

	Secondary Position Detail
	1.111
	​
	Trademark Infringement Claims
	11.3.1

	Securities Exchanges
	13.3
	​
	Trademark Owner
	11.2.1

	Selling Party
	1.112
	​
	Trigger Condition
	5.2.2

	SGI
	Preamble
	​
	U.S
	1.120

	SGI Major Market Commercialization Plan
	4.1
	​
	United States
	1.120

	SGI Major Market Medical Affairs Plan
	7.3.1
	​
	US Coordination Plan
	3.5.1

	SGI Major Markets
	1.113
	​
	US Co-Pro Coordinator
	3.1.6

	SGI Party Combination Study
	1.81
	​
	Withholding Tax Claim
	5.3.3(a)

	Sublicensing Revenue
	1.114
	​
	Working Group
	2.10.1

	Supply Chain Management
	1.115
	​
	Year
	1.121

​
​

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[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

OINT COMMERCIALIZATION AGREEMENT
​
THIS JOINT COMMERCIALIZATION AGREEMENT (this “Agreement”) is made as of October 19, 2020 (the “Effective Date”), by and between GENMAB A/S, a Danish corporation (“Genmab”), and SEAGEN INC. (f/k/a SEATTLE GENETICS, INC.), a Delaware corporation (“SGI”). Genmab and SGI are sometimes referred to herein, individually, as a “Party” and, collectively, as the “Parties.”
​
RECITALS
​
WHEREAS, Genmab and SGI entered into a License and Collaboration Agreement, dated as of October 7, 2011 (as amended from time to time, the “Collaboration Agreement”), to, among other things, collaborate on the development and commercialization of Collaboration Products (as defined in the Collaboration Agreement);
​
WHEREAS, the Parties and their Affiliates are jointly developing the Product (as defined below) as a Collaboration Product pursuant to the Collaboration Agreement; and
​
WHEREAS, upon obtaining Regulatory Approval in relevant jurisdictions, the Parties have agreed to Commercialize the Product, and have allocated to each Party the right to lead Commercialization in certain Major Markets (as defined below) and other territories, with Genmab having certain rights to co-Promote (as defined below) the Product in the United States, in each case, on the terms and subject to the conditions contained in this Agreement, which terms and conditions amend and further define the terms of the Collaboration Agreement.
​
NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows:
​
ARTICLE 1 DEFINITIONS
​
As used in this Agreement, the following terms shall have the following meanings:
​
1.1“Adverse Event” means any unfavorable and unintended medical occurrence in a human patient or subject who is administered the Product, including any undesirable sign (including abnormal laboratory findings of clinical concern), symptom or disease temporally associated with the use of the Product, whether or not considered related to the Product.
​
1.2“Affiliate” of a Person means any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with such Person. As used in this definition of Affiliate, the term “control” means the direct or indirect ownership of fifty percent (50%) or more of the stock having the right to vote for directors thereof or the ability to otherwise control the management thereof.
​
1.3“Allowable Expenses” means, with respect to the Product for any period (or until expiration of the applicable Royalty Term as specified below), subject to the provisions of this
​
​

1
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Agreement, the following expenses that are incurred by a Party or any of its Affiliates and are directly attributable or reasonably allocable to Commercialization activities, Medical Affairs Activities, or other relevant activities indicated below for the Product during such period with respect to the Major Markets (or, with respect to the Territory for Sections [*], and as otherwise indicated below), in each case, determined in accordance with the Collaboration Accounting Standards:
​
1.3.1[*];
​
1.3.2[*];
​
1.3.3[*];
​
1.3.4to the extent that the Parties have agreed to Manufacturing of the Product internally by a Party, itself or through an Affiliate, in each case, pursuant to Section 6.3 or Section 6.4 (as applicable), [*]; provided, that such [*] has been approved by the JFT and is included in the Global Manufacturing Plan; provided, further, that the [*];
​
1.3.5[*];
​
1.3.6[*];
​
1.3.7[*];
​
1.3.8[*];
​
1.3.9[*];
​
1.3.10 [*];
​
1.3.11 [*];
​
1.3.12 [*]; and
​
1.3.13 [*];
​
provided, that, in each of Sections [*], such expenses shall be included within Allowable Expenses for the Product only to the extent consistent with the budget included in the applicable Approved Plan (as adjusted pursuant to this Agreement). The components of Allowable Expenses shall be calculated in accordance with the applicable definition thereof and the applicable terms of this Agreement, including the Collaboration Accounting Standards, and shall be determined and charged as provided in Section 5.1. If any cost or expense is directly attributable or reasonably allocable to more than one activity, such cost or expense shall only be counted as an Allowable Expense with respect to one of such activities. Where appropriate, the Parties, through the JFT, may agree that certain Allowable Expenses shall be determined and charged on the basis of a specified annual charge or as a percentage of Net Sales. For clarity, Allowable Expenses shall exclude (i) any expenses that are deductible in the definition of Net Sales, (ii) any Indirect Taxes
​

2
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CONFIDENTIAL

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that are reasonably recoverable from a Governmental Authority, (iii) any expenses treated as Development Costs under this Agreement or “Joint Development Costs” (as defined in the Collaboration Agreement) thereunder, and (iv) any Commercial Packaging and Labeling Costs and Manufacturing Costs for Product for the Royalty Territory.
​
1.4“Applicable Law” means any law or statute, any rule or regulation issued by a Governmental Authority (including courts and Regulatory Authorities), as well as and any judicial, governmental, or administrative order, judgment, decree or ruling, in each case, as applicable to the subject matter and the Parties at issue (including the marketing, sale, and promotion of pharmaceutical products for human use), including GxP and any other rules, regulations, guidelines, or other requirements of Regulatory Authorities. For example, (a) in the United States, Applicable Law includes the FFDCA, the Public Health Service Act, the Prescription Drug Marketing Act, the Federal False Claims Act (31 U.S.C. §3729 et seq.), the Federal Health Care Program Anti-Kickback Law (42 U.S.C. §§1320a-7b), and all rules and regulations promulgated under any the foregoing, (b) in the EU, Applicable Law includes the Directive 2001/83/EC on the Community code relating to medicinal products for human use, as well as the requirements for authorization of the manufacturing or importation of such products, the related national implementing laws and regulations of individual EU member states, provisions of the national laws and industry and professionals codes in individual EU member states governing anti-bribery and anti-kickback practices, and (c) Applicable Law includes foreign equivalents of the foregoing. In addition, Applicable Law includes any law, rule, regulation, ordinance, directive, interpretation, judgment, or decision of any Governmental Authority in relation to data protection; privacy; restrictions on, or requirements in respect of, the processing of personal data of any kind, including the Regulation (EU) 2016/679 and the Health Insurance Portability and Accountability Act of 1996 (collectively, “Data Protection Laws”).
​
1.5“Approved Plans” means the Global Development Plan (including the Global Regulatory Plan incorporated therein), the Commercialization Plans, the Medical Affairs Plans, and the Global Manufacturing Plan, in each case, as amended from time to time, and as approved in accordance with the terms hereof, including any corresponding budgets incorporated therein, as the context requires. For clarity, references herein to the “applicable Approved Plan(s)” shall be deemed to be followed by the phrase “(if any),” and such references shall not limit the activities of SGI in the Royalty Territory if such activities are not subject to an Approved Plan.
​
1.6“Approved Subcontractors” means any Third Party subcontractor (including for clarity any CSO) engaged by a Party or its Affiliate to perform activities under this Agreement that is either (i) set forth on Schedule 1.6 or (ii) approved by a Committee to perform specific obligations of the subcontracting Party under this Agreement (including under the Global Development Plan).
​
1.7“Biosimilar Product” means, (a) in respect of the Product as sold in the United States, a biological product approved under the Public Health Service Act 351(k) that is highly similar to the Product, notwithstanding minor differences in clinically inactive components, and for which there are no clinically meaningful differences between such product and the Product in terms of safety, purity and potency; (B) in respect of the Product as sold in the EU, a biological product approved under Article 10(4) of Directive 2001/83/EC and Section 4, Part II, Annex I to such Directive based on the demonstration of the similar nature of such biological medicinal
​

3
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CONFIDENTIAL

​
product and the Product; and (C) in respect of the Product as sold outside the United States and outside of the EU, a biological product approved under a similar regulatory pathway as in the United States or in the EU, if such pathway exists in such territory.
​
1.8“BLA” means a Biologics License Application submitted to FDA, and all supplements and amendments that may be submitted with respect to the foregoing.
​
1.9“Business Day” means a day that is not a Saturday, Sunday or a day on which banking institutions in New York, New York or Copenhagen, Denmark are required by Applicable Law to remain closed.
​
1.10“Centralized Procedure” means, to the extent compulsory or permitted for the Regulatory Approval of a pharmaceutical product in Iceland, Liechtenstein, Norway, or any country in the EU, the procedure administrated by the EMA which results in a single Regulatory Approval granted by the European Commission (excluding any pricing or reimbursement approval) that is valid in all countries in the EU and, following recognition, in Iceland, Liechtenstein and Norway.
​
1.11[*].
​
1.12“China” means, for purposes of this Agreement, the People’s Republic of China, including the Hong Kong Special Administrative Region, the Macau Special Administrative Region, and the Taiwan Region.
​
1.13“Clinical Supply” means, with respect to the Product, Product intended or used for the purpose of Development or obtaining Regulatory Approval of the Product in accordance with the Global Development Plan.
​
1.14“Clinical Supply Agreement” means the Tisotumab Vedotin Clinical Supply Agreement, by and between Genmab and SGI, dated as of March 15, 2018, as amended.
​
1.15“Clinical Trial” means a Phase I Clinical Trial, a Phase II Clinical Trial, a Phase III Clinical Trial, a Phase III-B Study, or a Phase IV Study, as the case may be, as such terms are defined in the Collaboration Agreement. For clarity, “Clinical Trials” do not include any investigator-initiated trials or investigator-sponsored research, which shall be considered Medical Affairs Activities.
​
1.16“CMC Development” means the Development activities related to the composition, manufacture, and specification of the drug substance and the drug product (including Combination Products in a single formulation) intended to assure the proper identification, quality, purity and strength of the drug, including site transfer (as conducted pursuant to and in accordance with this Agreement), test method development and stability testing, process development, process improvements (i.e., improving product robustness or manufacturing efficiencies), drug substance development, process validation, process scale-up, formulation development, delivery system development, QA and QC development.
​
1.17“CMC Development Costs” means, with respect to the Product, the [*] and [*] that are incurred by a Party or any of its Affiliates on or after the Effective Date that are directly
​

4
​
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CONFIDENTIAL

​
attributable or reasonably allocable to CMC Development activities undertaken directly or indirectly by such Party or any of its Affiliates with respect to the Product anywhere in the Territory, in each case, determined in accordance with the Collaboration Accounting Standards; provided, that the costs incurred by a Party or any of its Affiliates directly attributable or reasonably allocable to the establishment (but not the ongoing supply costs) of site(s) for the Manufacture of Product shall [*].
​
1.18“Collaboration” means the collaboration between Genmab and SGI and their respective Affiliates for the Development, Manufacturing, and Commercialization of the Product pursuant to this Agreement and the Collaboration Agreement.
​
1.19“Collaboration Accounting Standards” means (a) in the case of SGI, U.S. generally accepted accounting principles (GAAP), and (b) in the case of Genmab, International Financial Reporting Standards (IFRS), in each case ((a) and (b)), as consistently applied by such Party and its Affiliates.
​
1.20“Combination Product” means, solely with respect to Net Sales of a Product in or reasonably allocable to the Royalty Territory, any product or therapy containing (a) as a single formulation, (i) the Product and (ii) one or more other active pharmaceutical ingredients (that are not the Product) (the “Other Components”), or (b) in a single package or container or intended and approved for marketing as a coordinated use, where the Product and the Other Component(s) are both sold by the relevant Selling Party, two or more products or therapies as components including
(i) the Product, and (ii) one or more Other Components.
​
1.21“Combined Major Market Plans” means the Combined Major Market Commercialization Plan, and the Combined Major Market Medical Affairs Plan, individually or collectively, as the context requires.
​
1.22“Commercial Packaging and Labeling Costs” means the [*] and [*] incurred by a Party or its Affiliates that are directly attributable or reasonably allocable to Packaging and Labeling of Commercial Supply (including safety stock) conducted by or on behalf of a Party or its Affiliates and calculated in accordance with the Collaboration Accounting Standards.
​
1.23“Commercial Supply” means, with respect to the Product, Product intended or used for the purpose of Commercializing (including Launching and maintaining safety stock) the Product in accordance with the Commercialization Plans (for clarity, whether such Product was Manufactured prior to, on, or after the date on which Regulatory Approval was obtained for the Product). For clarity, Clinical Supply shall not constitute Commercial Supply.
​
1.24“Commercialization” means, with respect to the Product, any and all activities to establish and maintain commercial sales for the Product which are undertaken pursuant to an Approved Plan or by SGI with respect to the Royalty Territory. These activities shall include: (a) the pre-Launch marketing and other Launch and Launch preparation activities for the Product, including conducting training of Sales Representatives and any other personnel conducting Commercialization activities, (b) the marketing, Promotion, offering for sale and selling of the Product, (c) importing and exporting the Product for commercial sale, (d) Manufacturing the Product for commercial sale (except for CMC Development activities and Manufacturing
​

5
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CONFIDENTIAL

​
performed prior to the First Regulatory Approval, including inventory build to support the first Launch, each of which shall be considered Development activities), (e) Sales and Distribution activities, (f) market access and health economics and outcomes research (“HEOR”) activities, and (g) Hospital and Organized Customer Activities, in each case ((a) through (g)), in accordance with the applicable Approved Plan. For the avoidance of doubt, as used herein, “Commercialization” shall not include Manufacture of the Product other than Manufacturing for commercial sale following the First Regulatory Approval. When used as a verb, “Commercialize” means to engage in Commercialization.
​
1.25“Commercialization Costs” means those [*] and [*] incurred by a Party or its Affiliates for Commercialization activities conducted by or on behalf of such Party or its Affiliates on or after the Effective Date that are directly attributable or reasonably allocable to Commercialization activities for the Product for the Major Markets, in each case, determined in accordance with the Collaboration Accounting Standards, but only to the extent consistent with the applicable Commercialization Plan and the budget included for such activities; provided, that where appropriate, the Parties, through the JCC, may agree that [*]. Notwithstanding the foregoing, Commercialization Costs do not include (i) [*], (ii) [*], or (iii) [*]. For clarity, Commercialization Costs shall exclude [*].
​
1.26“Commercialization Plan” means the Combined Major Market Commercialization Plan, the SGI Major Market Commercialization Plan, and the Genmab Major Market Commercialization Plan, or any one or more of them, as the context requires.
​
1.27“Commercially Reasonable Efforts” means (a) with respect to the efforts to be [*] by a Party to [*] other than with respect to [*], the [*] and [*] that such Party and its Affiliates would [*] to [*] a [*] under [*], and (b) with respect to the [*] of the Product under this Agreement, the level of efforts and [*] substantially [*] to those efforts and [*] by a Party and its Affiliates for [*] of [*] and at a [*] in its [*], taking into account commercially relevant factors such as [*]. Commercially Reasonable Efforts shall be determined on a [*] and [*] basis for the Product and it is anticipated that the [*] of [*] may be [*] for [*], and may [*], reflecting [*] in the [*] of the Product and the market(s) and indication(s) involved. In addition, the Parties recognize that (i) one or more market(s) or indication(s) may not represent a commercially reasonable opportunity, and therefore may not merit the allocation of any [*], and (ii) the use of Commercially Reasonable Efforts may result in ceasing Commercialization of the Product for one or more market(s) or indication(s). Further, to the extent that the performance of a Party’s obligations hereunder is adversely affected by the other Party’s failure to perform its obligations hereunder or under the Collaboration Agreement, the impact of such performance failure will [*].
​
1.28“Committee” means any of the Joint Steering Committee, the Joint Development Committee, the Joint Commercialization Committee, the Joint Medical Affairs Team, the Joint Chemistry, Manufacturing & Controls Team, or the Joint Finance Team, individually or collectively, as the context requires.
​
1.29“Control” and “Controlled by” mean, with respect to any information or intellectual property right, possession by a Party or any of its Affiliates of the ability to grant the right to access or use, or to grant a license or a sublicense to, such information or intellectual property right as provided for herein or in the Collaboration Agreement without violating the terms of any agreement
​

6
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CONFIDENTIAL

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or other arrangement with any Third Party.
1.30“Core Data Sheet” means a document setting forth material information relating to safety, efficacy, indications, dosing, pharmacology and other information concerning the Product that will serve as a global reference document and, subject to Section 8.1.6(a), the basis for local labeling for use in regulatory filings and discussions with Regulatory Authorities in the Territory.
​
1.31“Corporate Names” means (a) in the case of SGI, the trademarks “Seagen” and “Seattle Genetics” and the SGI corporate logo or such other names and logos as SGI may designate in writing from time to time and (b) in the case of Genmab, the trademark “Genmab” and the Genmab corporate logos or such other names and logos as Genmab may designate in writing from time to time, in each case ((a) and (b)), together with any variations and derivatives thereof.
​
1.32“CSO” means a contract sales force organization.
​
1.33“CVO Activities” means, with respect to the Product: (a) meetings with or presentations to (in-person or otherwise) physicians, administrators, or other professionals identified in an applicable Medical Affairs Plan that are conducted in a hospital setting or with Payors, in each case, with respect to clinical value and outcomes (CVO), and (b) clinical value and outcomes activities conducted with any hospital, health system, Payor, or any other Person.
​
1.34“Detail” means a face-to-face meeting (including a virtual face-to-face meeting or group presentation, if in accordance with an applicable Approved Plan or otherwise approved by the JCC), including any such meeting conducted in a hospital or physician’s office (a) with one or more physicians and other persons included in other medical professional categories identified in the applicable Commercialization Plan (such individuals, “Target Prescribers”) (where, in the case of group presentations, each such physician or other person participating in a group presentation shall be counted as a separate Detail), in each case, who are permitted under the Applicable Law of the country in which they work to prescribe the applicable Product, in which such meeting key Product attributes are orally presented consistent with the terms of this Agreement. As of the Effective Date and so long as the Product has obtained Regulatory Approval for only one Disease in the United States (or other country or region in a Major Market), “Details” for purposes of this Agreement include only Primary Position Details; provided, that in connection with the Launch of the Product for a second or subsequent Disease in the United States (or other country or region in a Major Market), the Parties may determine to include Secondary Position Details as “Details” hereunder, in which case the Parties shall also review and determine the terms and conditions applicable to Primary Position Details and Secondary Position Details under this Agreement. For the avoidance of doubt, (i) a mere Sample drop without discussion with the professional about the Product shall not be considered a Detail, and (ii) any contact between a Sales Representative and a Payor (as distinguished from calls on individual HCPs who may be affiliated with a Payor in connection with their professional prescribing decisions) shall not be considered a Detail. “Detail,” when used as a verb, and “Detailing” shall have correlative meanings.
​
1.35“Development” means all research, non-clinical and clinical drug development activities and processes, including toxicology, pharmacology, project management and other non- clinical efforts, statistical analysis, delivery system development, the performance of Clinical Trials (including the Manufacturing of Product for use in Clinical Trials) and other activities, in

7
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each case, which are reasonably necessary to prepare submissions for, and obtain or maintain, Regulatory Approval of the Product, including lifecycle management studies and other activities. For the avoidance of doubt, as used herein “Development” shall include CMC Development and Manufacturing of the Product prior to the First Regulatory Approval.
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1.36“Development Costs” means, with respect to the Product, (a) [*] and [*] that are incurred by a Party or any of its Affiliates on or after the Effective Date that are directly attributable or reasonably allocable to Development activities undertaken directly or indirectly by or on behalf of such Party or any of its Affiliates with respect to the Product pursuant to the Global Development Plan anywhere in the Territory, (b) [*] and [*] incurred by a Party or any of its Affiliates with respect to [*] of the Product Manufactured prior to the First Regulatory Approval, and (c) [*], in each case ((a) through (c)), determined in accordance with the Collaboration Accounting Standards and as set forth in an applicable Approved Plan. For clarity, “Development Costs” shall include: (i) [*]; (ii) [*] and [*] incurred in connection with the planning and conduct of any Clinical Trials, including [*] therefor; (iii) [*] and [*] for research, non-clinical or clinical purposes prior to the First Regulatory Approval, and (iv) [*] in connection with Manufacturing for Clinical Supply, in each case ((i)-(iv)), determined in accordance with the Collaboration Accounting Standards and set forth in an applicable Approved Plan. Development Costs shall exclude [*] and [*] incurred in connection with the planning and conduct of investigator-initiated trials or investigator-sponsored research, which shall be considered [*].
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1.37“Disease” means a disease condition for which the Product has received Regulatory Approval to treat having a distinct histology (e.g., carcinoma) or affected organ (e.g., lung).
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1.38“Dollars” or “$” means the legal tender of the United States.
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1.39“Drug Regulatory Approval Application” or “DAA” means an application for Regulatory Approval required before commercial sale or use of the Product in a regulatory jurisdiction, including a BLA filed with the FDA, an MAA filed with EMA in the EU or the Regulatory Authority of a country in the European Economic Area, or any foreign equivalents thereof.
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1.40“EFTA” means the European Free Trade Association, as its membership may be constituted from time to time, and any successor thereto.
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1.41“EMA” means the European Medicines Agency and any successor agency(ies) thereto.
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1.42“EU” means the European Union, as its membership may be constituted from time to time, and any successor thereto.
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1.43“EU14” means [*].
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1.44“Europe” means the United Kingdom, each member state of EU and the EFTA as of the Effective Date (whether or not such countries remain member states of the EU or EFTA), and each member state of the EU and the EFTA from time to time, including the countries set forth on Schedule 1.44.
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1.45“European Commission” means the executive body of the EU that is responsible for, among other things, granting marketing authorization for medicinal products through the Centralized Procedure.
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1.46“FDA” means the United States Food and Drug Administration, and any successor agency(ies) thereto.
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1.47“FFDCA” means the United States Federal Food, Drug, and Cosmetic Act (21 U.S.C. §301 et seq.).
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1.48“First Regulatory Approval” means the first Regulatory Approval of the Product in any jurisdiction in the Territory.
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1.49“FTE” means the equivalent of the work of one (1) employee full time for one (1) Year consisting of a total of (a) [*] hours per Year for employees of a Party or its Affiliate [*] and
(b) [*] hours per Year for employees of a Party or its Affiliate [*] (or, in each case ((a) and (b)), such other number as may be agreed to by the Parties by mutual Party Written Consent, or by the JSC) directly related to the Commercialization of the Product, or any other activities contemplated under this Agreement. Any such employee who devotes less than [*] hours or [*] hours, as applicable, per Year (or such other number as may be agreed by the Parties by Party Written Consent or by the JSC) shall be treated as an FTE on a pro-rata basis upon the actual number of hours worked divided by [*] or [*] (or such other number as may be agreed by the Parties by mutual Party Written Consent, or by the JSC).
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1.50“FTE Costs” means, with respect to FTEs for Development, Manufacturing, Commercialization and other activities conducted under this Agreement for the Product, the cost of an FTE based on a blended global rate of [*] for all activities conducted under this Agreement for the Product. Commencing January 1, 2021 and upon January 1 of each Year thereafter, such rate will be adjusted in accordance with the [*].
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1.51“Genmab Major Market” means [*].
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1.52“Global Plan” means the Global Development Plan (including the Global Regulatory Plan incorporated therein) and the Global Manufacturing Plan, individually or collectively, as the context requires.
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1.53“Good Clinical Practice” or “GCP” shall mean any and all laws, rules, regulations, guidelines and generally accepted standards and requirements regarding the ethical conduct of clinical trials, including the U.S. Code of Federal Regulations (“CFR”) Title 21, ICH GCP Guidelines E6(R1), current step 4 version, dated 10 June 1996, national legislation implementing European Community Directive 2001/20/EC of 4 April 2001 on the approximation of the laws, regulations and administrative provisions of the Member States relating to the implementation of good clinical practice in the conduct of clinical trials on medicinal products for human use, European Community Directive 2005/28/EC of 8 April 2005 laying down principles and detailed guidelines for good clinical practice as regards to investigational medicinal products for human use, in each case as amended from time to time.
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1.54“Good Laboratory Practice” or “GLP” shall mean any and all laws, rules, regulations, guidelines and generally accepted standards and requirements regarding quality control for laboratories to ensure the consistency and reliability of results, including the CFR Title 21, national legislation implementing European Community Directive 2004/9/EC of 11 February 2004 on the inspection and verification of good laboratory practice (GLP) and European Community Directive 2004/10/EC of 11 February 2004 on the harmonization of laws, regulations and administrative provisions relating to the application of the principles of good laboratory practice and the verification of their applications for tests on chemical substances, OECD Series on Principles of Good Laboratory Practice and Compliance Monitoring, in each case as amended from time to time.
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1.55“Good Manufacturing Practice” or “GMP” shall mean any and all laws, rules, regulations, guidelines and generally accepted standards and requirements regarding the quality control and manufacturing of pharmaceutical products, including the CFR Title 21, ICH GMP Guidelines Q7, current step 4 version, dated 10 November 2000, national legislation implementing European Community Directive 91/356/EEC of 13 June 1991 laying down the principles and guidelines of good manufacturing practice for medicinal products for human use as amended by European Community Directives 2003/94/EC, the Rules Governing Medicinal Products in the European Community, Volume 4, including annexes, in each case as amended from time to time.
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1.56“Governmental Authority” means any supranational, national, federal, state, provincial, country, city or local government or any agency, department, authority, court, or other instrumentality thereof, including any Regulatory Authority.
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1.57“GxP” means GCP, GLP or GMP or any combination thereof, as applicable.
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1.58“Healthcare Professional” or “HCP” mean any member of the medical, pharmacy or nursing professions who in the course of his or her professional activities may prescribe, administer or dispense to an end-user a medicinal product.
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1.59“Hospital and Organized Customer Activities” means, with respect to field-based efforts regarding the Product: (a) meetings with or presentations to (in-person or otherwise) physicians, administrators, or other professionals identified in an applicable Commercialization Plan, that are conducted in a hospital setting, or within Integrated Delivery Networks (IDNs), group practices, Accountable Care Organizations (ACOs) or other healthcare systems; and (b) activities conducted with respect to formularies with hospitals, health systems, or integrated health care networks; but excluding, in each case, activities involving (i) Payors, pathways, clinical value, outcomes, or other related terms, (ii) the negotiation or, unless otherwise engaged in by SGI’s Sales Representatives or MSLs (at SGI’s sole discretion) with respect to the Product in the United States, the implementation, in each case, of agreements with hospitals, health systems, or integrated health care networks, or (iii) distribution partners (including wholesalers, specialty distributors and pharmacies).
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1.60“ICH” means the International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use of the World Health Organization, or any successor conference, council or organization.
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1.61“IND” means (a) an Investigational New Drug Application, or successor application, filed with the FDA or its equivalent in any country outside the United States where a regulatory filing is required or obtained to conduct a clinical trial or (b) with respect to any country where a regulatory filing is not required or obtained to conduct a clinical trial, the first enrollment of a patient in the first trial involving the first use of the Product in humans.
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1.62“Indirect Taxes” means value added taxes, sales taxes, consumption taxes and other similar taxes.
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1.63“Information” means all technical, scientific, regulatory and other information, results, knowledge, techniques and data, in whatever form and whether or not confidential, proprietary, patented or patentable, invention disclosures, plans, processes, practices, methods, knowledge, know-how, skill, experience, ideas, concepts, test data (including pharmacological, toxicological and clinical test data), analytical and quality control data, formulae, specifications, marketing, pricing, distribution, cost, sales, and manufacturing data or descriptions. For clarity, Information does not include issued Patents or the inventions claimed thereby.
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1.64“Joint Committee Consent” means the mutual consent or agreement of both Parties’ representatives on a specified Committee, Team, or Working Group (or, if no other Committee is specified, the JSC) documented in the meeting minutes of such Committee, Team, or Working Group explicitly (i.e., identified as a Joint Committee Consent) and confirmed as accurate by representatives of each Party on the applicable Committee, Team, or Working Group in accordance with Section 2.10.2 or a writing signed by at least one representative of Genmab and one representative of SGI on such Committee, Team, or Working Group; provided, that if a matter may be approved or agreed by Joint Committee Consent of a specified Committee, Team or Working Group, such approval or agreement may be given by Joint Committee Consent of any other Committee, Team, or Working Group to which such Committee, Team, or Working Group directly or indirectly reports, including, in each case, the JSC.
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1.65“Joint Steering Committee” or “JSC” means the joint steering committee established pursuant to the terms of the Collaboration Agreement to provide oversight and endorsement of the development, manufacturing and commercialization plans, and associated budgets, for Collaboration Products, and which JSC’s role is expanded and modified hereunder with respect to the Development, Manufacturing, Commercialization and other activities to be conducted hereunder for the Product (provided that, for clarity, the JSC shall continue to have the roles and responsibilities as set forth under the Collaboration Agreement with respect to Licensed Products (as defined thereunder) that are not the Product).
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1.66“Launch” means, with respect to the Product and an applicable country or territory, the first commercial sale of the Product to a Third Party in such country or territory after receipt of Regulatory Approval with respect thereto (and, if the context requires, for a particular Disease for which the Product has obtained Regulatory Approval). For the avoidance of doubt, sales of the Product prior to receipt of Regulatory Approval in a country or territory, such as so-called “treatment IND sales,” “named patient sales,” “compassionate use sales,” and the like, shall not be construed as a Launch.
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1.67“[*] Agreement” means the [*], as amended by [*], dated [*].
1.68“MAA” means a Marketing Authorization Application filed with the EMA pursuant to the Centralized Procedure or, under Applicable Law for Product, with the applicable Regulatory Authority of a country in the European Economic Area with respect to the decentralized procedure, mutual recognition or any national approval procedure.
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1.69“Major Markets” means the Genmab Major Market and the SGI Major Markets, individually or collectively, as the context requires. Unless otherwise indicated, references to “Major Markets” mean (a) with respect to SGI, the SGI Major Markets and (b) with respect to Genmab, (i) the Genmab Major Market and (ii) the [*].
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1.70“Manufacture” means all activities related to the manufacture and supply of the Product, including manufacturing supplies for Development or Commercialization, packaging, labeling, in-process and finished Product testing, release of Product or any component or ingredient thereof, quality assurance and quality control activities related to manufacturing and release of Product (except for CMC Development), ongoing stability tests, storage, distribution and shipment, import and export, and regulatory activities directly related to any of the foregoing, but not including any Sales and Distribution activities. For clarity, “Manufacturing” has a correlative meaning.
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1.71“Manufacturing Costs” means, with respect to the Product and incurred on or after the Effective Date:
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1.71.1To the extent that Product is Manufactured by a Third Party CMO, the [*] incurred by the Parties that are directly attributable or reasonably allocable to such Manufacture; or
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1.71.2To the extent that Product is Manufactured by either Party or its Affiliates, the [*], as calculated in a manner consistent with a costing methodology as agreed by the JFT, including (if applicable) [*] consistent with such costing methodology agreed by the JFT, but excluding [*] not reasonably allocated to the Manufacture of Product in accordance with the cost methodology agreed by the JFT;
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provided, in each case, that “Manufacturing Costs” shall not include [*], or the costs of [*].
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1.72“Manufacturing Losses” means any and all Losses incurred by one or both Parties, or their Affiliates, resulting from any claim, suit, action, or demand to the extent that such Losses are incurred, relate to, or arise out of the Manufacturing of the Product (including any such claim, suit, action, or demand related to or arising out of Product Liability, breach of Product warranty, the inaccuracy of any representation or warranty, failure to comply with Applicable Law or other breach of any provision of this Agreement, the Collaboration Agreement, or any Related Manufacturing Agreement, in each case, with respect to the Manufacturing of Product), including Losses incurred, related to, or arising under a Related Manufacturing Agreement and Losses resulting, directly or indirectly, from the acts or omissions of any Third Party CMO Manufacturing the Product on the Manufacturing Party’s behalf, except in all cases to the extent such Losses (a) are incurred, relate to, or arise out of the gross negligence, recklessness or willful misconduct of the Manufacturing Party (or its Affiliate) or (b) are caused by or result directly from a material
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uncured breach by the Manufacturing Party (or its Affiliate) of any relevant Manufacturing agreement entered into by the Manufacturing Party (or its Affiliate) with any Third Party CMO that Manufactures the Product on the Manufacturing Party’s behalf if such material breach is acknowledged by the Manufacturing Party in writing, results from a failure by the Manufacturing Party to make any undisputed payment when due (after giving effect to any available cure period) or is finally determined by a court or arbitrator of competent jurisdiction; provided, that the foregoing clause (b) shall not apply to any such material breach that is caused by or results directly from an act or omission of a Third Party including any other Third Party CMO that Manufactures the Product on the Manufacturing Party’s behalf.
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1.73“Medical Affairs Activities” means the following activities of medical affairs personnel (including, in certain cases, Medical Science Liaisons; provided, for clarity, that not all of the following activities are performed by MSLs) related to the Product: (a) providing input and assistance with consultancy meetings, recommending investigators for Clinical Trials and providing input in the design of trials, and delivering non-promotional scientific exchanges and conducting non-promotional activities such as presenting new Clinical Trial and other scientific Information; (b) providing grants to support continuing medical education or symposia for educational needs related to the Product, including with respect to its therapeutic use; (c) development, publication, presentation and dissemination of publications relating to the Product; (d) responding to medical inquiries and providing medical information services in response to inquiries communicated via Sales Representatives or received by letter, phone call or email, in each case, from HCPs; (e) conducting so-called “named patient,” “compassionate use,” or similar patient assistance or access programs; (f) providing appropriate support for investigator- initiated trials and investigator-sponsored research; and (g) CVO Activities.
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1.74“Medical Affairs Costs” means those [*] and [*] that are incurred by such Party or any of its Affiliates on or after the Effective Date that are directly attributable or reasonable allocable to Medical Affairs Activities conducted by or on behalf of such Party or its Affiliates for the Product in the Major Markets in accordance with the Medical Affairs Plans. For clarity, Medical Affairs Costs shall exclude [*]. Medical Affairs costs shall exclude the [*] and [*] incurred in connection with the planning and conduct of Clinical Trials, which shall be considered [*].
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1.75“Medical Affairs Plan” means the Combined Major Market Medical Affairs Plan, the SGI Major Market Medical Affairs Plan, or the Genmab Major Market Medical Affairs Plan, or any one or more of them, as the context requires.
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1.76“Medical Science Liaisons” or “MSLs” mean those health care professionals employed or engaged by a Party or any of their Affiliates with sufficient health care experience (including at least a four-year degree and either (a) clinical, residency or fellowship experience or (b) other highly specialized training relevant to a specific therapeutic area) to engage in in-depth dialogues with physicians or other HCPs regarding medical issues associated with the Product and who are not Sales Representatives or otherwise engaged in direct selling, Promotion, or Hospital and Organized Customer Activities for the Product.
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1.77“Net Profit/Net Loss” means, with respect to the Product during any period, [*] of the Product in [*] plus [*] actually received during such period, less the sum of [*] and [*] incurred during such period. For clarity, Net Profit/Net Loss shall be determined prior to application of any
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income or other direct taxes, and if such terms are used individually, “Net Profit” shall mean a positive Net Profit/Net Loss, and “Net Loss” shall mean a negative Net Profit/Net Loss.
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1.78“Net Sales” means the gross amount invoiced in arm’s-length transactions by Related Parties or, solely in the Royalty Territory, Sublicensees, from or on account of the sale of the Product by such Related Party, or only as to the Royalty Territory, a Sublicensee, to a non- Related Party (including sales to any Third Party distributor, wholesaler, or the like), less the sum of the following:
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1.78.1credits or allowances, [*], on account of price adjustments, recalls, claims, damaged goods, and rejections or returns of items previously sold (including Product returned in connection with recalls or withdrawals);
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1.78.2import taxes, export taxes, excise taxes, sales taxes, value-added taxes, consumption taxes, duties or other taxes levied on, absorbed, determined or imposed with respect to such sales (excluding income or net profit taxes or franchise taxes of any kind), in each case, to the extent (a) [*] and (b) [*];
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1.78.3insurance, customs charges, freight, shipping and other transportation costs incurred in shipping Product to such non-Related Parties, in each case, to the extent [*];
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1.78.4amounts written off by reason of uncollectible debt, to the extent consistent with the relevant Party’s business practices for its other pharmaceutical products, as determined on a country-by-country basis and in accordance with the Collaboration Accounting Standards (provided, that any such amounts subsequently collected will be included in Net Sales for the period in which collected);
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1.78.5discounts (including trade, quantity and cash discounts) [*], cash and non- cash coupons, retroactive price reductions, and charge-back payments and rebates granted to any non-Related Party (including to [*]); and
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1.78.6rebates (or their equivalent), administrative fees, chargebacks and retroactive price adjustments and any other similar allowances [*] to non-Related Parties (including to [*]) which effectively reduce the selling price or gross sales of the Product.
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All of the foregoing deductions from the gross amount invoiced for such sales of the Product shall be determined in accordance with Collaboration Accounting Standards. Product transferred to non-Related Parties in connection with clinical and non-clinical research and trials, Samples, “named patient sales,” “compassionate use sales,” or any similar program or bona fide arrangement in which a Related Party agrees to forego a normal profit margin shall give rise to Net Sales only to the extent that any Related Party invoices or receives amounts therefor in excess of the cost of goods thereof.
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Product shall be considered “sold” in accordance with Collaboration Accounting Standards. Net Sales shall be determined from the books and records of the Related Party.
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It is understood that any accruals for individual items reflected in Net Sales are periodically trued up and adjusted by each Related Party consistent with its customary practices and in accordance with Collaboration Accounting Standards.
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Sale or transfer of Product between any of the Related Parties, or solely in the Royalty Territory, between a Related Party and a Sublicensee, shall not result in any Net Sales, and Net Sales shall be calculated based on any subsequent sales or dispositions to a non-Related Party who is not a Sublicensee. To the extent that any Related Party, or solely in the Royalty Territory, a Sublicensee receives consideration other than or in addition to cash in consideration for the sale of the Product to a non-Related Party and such consideration does not constitute Sublicensing Revenue hereunder in the Major Markets, Net Sales shall include the fair market value of such non-cash consideration for such sale of Product. For clarity, sales by a Related Party (or solely in the Royalty Territory, by a Sublicensee) to a Third Party wholesaler or similar distributor, group purchasing organization, pharmacy benefit manager, or retail chain customer shall be considered sales to a non-Related Party and Net Sales hereunder.
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Solely with respect to Net Sales occurring in the Royalty Territory, Net Sales of any Combination Product for the purpose of calculating royalties due under this Agreement shall be determined on a country-by-country basis for a given accounting period as follows: first, the Related Party (or Sublicensee, solely with respect to the Royalty Territory) that owns or otherwise controls the Combination Product shall determine the actual Net Sales of such Combination Product (using the above provisions), and then: such Net Sales amount for the Combination Product shall be multiplied by the fraction A/(A+B), where “A” is the net selling price in such country of the Product, if sold separately for the same dosage as contained in the Combination Product, and “B” is the net selling price in such country of the Other Components in the combination if sold separately for the same dosage as contained in the Combination Product. All net selling prices of the elements of such end-user product or service shall be calculated as the average net selling price of said elements during the applicable accounting period for which the Net Sales are being calculated. In the event that, in any country, no separate sale of either the Product or Other Components included in such Combination Product are made during the accounting period in which the sale was made or if the net selling price for an active ingredient cannot be determined for an accounting period, Net Sales allocable to the Product in each such country shall be determined by mutual agreement reached in good faith by the Parties prior to the end of the accounting period in question based on an equitable method of determining same that takes into account, on a country-by-country basis, all relevant factors (including variations in potency, the relative contribution and value to the end user of the Product and the Other Components in the combination).
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In the case where a drug delivery device is sold with or for use with the Product and included in the gross sales amount, any appropriate adjustment to Net Sales shall be determined by mutual agreement reached in good faith by the Parties prior to the end of the accounting period in question based on an equitable method of determining same that takes into account all relevant factors.
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1.79“Out of Pocket Costs” means amounts paid by a Party to Third Parties for goods
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and services required for such Party to perform its obligations under this Agreement in accordance with any applicable Approved Plan.
1.80“Packaging and Labeling” means secondary packaging, labeling, and serializing (as required by Applicable Law) for the Product.
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1.81“Party Combination Study” means any Clinical Trial regarding the combination (including co-administration or other coordinated use) of (a) the Product, on the one hand, and (b) one or more other products developed and/or commercialized by or on behalf of a Party or its Affiliates (including products co-developed by a Party or its Affiliate and a Third Party). A Party Combination Study involving a product developed and/or commercialized by or on behalf of (i) SGI (including products co-developed by SGI or its Affiliate and a Third Party) is referred to herein as an “SGI Party Combination Study” and (ii) Genmab (including products co-developed by Genmab or its Affiliate and a Third Party) is referred to herein as a “Genmab Party Combination Study.”
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1.82“Party Major Market Commercialization Plan” means the Genmab Major Market Commercialization Plan and the SGI Major Market Commercialization Plan, individually or collectively, as the context requires.
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1.83“Party Major Market(s)” means (a) with respect to Genmab, the Genmab Major Market, and (b) with respect to SGI, the SGI Major Markets, individually or collectively, as the context requires.
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1.84“Party Major Market Plans” means the Party Major Market Commercialization Plans and the Party Major Market Medical Affairs Plans, individually or collectively, as the context requires.
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1.85“Party Major Market Medical Affairs Plan” means the Genmab Major Market Medical Affairs Plan and the SGI Major Market Medical Affairs Plan, individually or collectively, as the context requires.
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1.86“Party Tactical Matters” means, with respect to a Party, such Party’s operational or tactical-level actions and decisions with respect to matters and functions allocated or delegated to such Party pursuant to (i) a Combined Major Market Plan, (ii) a Party Major Market Plan, (iii) the US Coordination Plan, or (iv) otherwise pursuant to this Agreement with respect to the Product (including, generally, Commercialization activities, Manufacturing activities, and Medical Affairs Activities with respect to the Product) to the extent that such actions or decisions are consistent with the terms of this Agreement, the scope of such allocation or delegation, Applicable Law, and the Combined Major Market Plans, Party Major Market Plans, and US Coordination Plan, including the tactical and strategic matters described in such plans, in each case, in or for such Party’s Party Major Market(s) or, subject to ARTICLE 3 and the US Coordination Plan, the United States with respect to Genmab. For clarity, (1) Party Tactical Matters exclude any responsibilities or determinations that (a) are expressly delegated to a Committee hereunder, or (b) expressly require the consent of the other Party or any Committee (including via Joint Committee Consent or Party Written Consent), and (2) “Party Tactical Matters” of Genmab in or for the United States must be consistent with the US Coordination Plan and ARTICLE 3.
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1.87“Party Written Consent” means (a) with respect to a matter to be agreed by the Parties, the mutual written agreement or consent of the Parties, in each case, executed on behalf of each Party by an appropriate officer or employee of such Party; and (b) with respect to a matter to be consented to or approved by a Party, the written consent or agreement of such Party executed by an appropriate officer or employee of such Party. For the avoidance of doubt, a writing evidencing Party Written Consent may be executed by (i) delivery of electronically scanned copies of original signatures delivered by electronic mail or other means of electronic transmission, or (ii) electronic signature (e.g., DocuSign®), but electronic mail without execution will not evidence Party Written Consent.
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1.88“Patent Costs” means the [*] incurred by a Party or any of its Affiliates on or after the Effective Date in connection with the Patent prosecution, maintenance, and enforcement activities conducted pursuant to Sections 14.2 and 14.3 of the Collaboration Agreement or Section
11.6 of this Agreement with respect to the Product.
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1.89“Patents” means: (a) patent applications filed in the Territory; (b) all patents, including supplemental protection certificates, that have issued or in the future issue from any of the foregoing, including utility models, design patents and certificates of invention; and (c) all divisionals, continuations, continuations-in-part, reissues, re-examination certificates, renewals, extensions or additions to any such patents and patent applications (as applicable).
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1.90“Payments to Third Parties” means any amounts paid to a Third Party (whether in the form of a royalty, up-front payment, milestone payment or otherwise) by or on behalf of a Party following the Effective Date in consideration for the grant of a license or other rights under a Patent or other intellectual property rights controlled by such Third Party that are [*] to Develop, Manufacture, or Commercialize the Product under (i) a Third Party License Agreement for one or more Major Markets entered into by a Party in accordance with this Agreement, (ii) the [*] Agreement dated [*] between [*] and [*], as amended (the “[*] Agreement”), or (iii) the [*] Agreement.
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1.91“Payors” means, pharmacy benefit managers, managed health care organizations, group purchasing organizations, large employers, government agencies and government health care programs (e.g., the U.S. Department of Veterans Affairs and Medicare in any form), and similar programs or organizations.
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1.92“Person” means any individual, firm, corporation, partnership, limited liability company, trust, business trust, joint venture, Governmental Authority, association, or other entity.
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1.93“Post-Market Surveillance” means a program in place after the receipt of Regulatory Approval to be further defined in a pharmacovigilance agreement entered into pursuant to Section 8.2 that provides for (a) monitoring the safety of a product in the market, including reporting of certain Adverse Events to Regulatory Authorities; (b) monitoring, investigating, reporting, and responding to complaints from the market, whether medical, technical, or otherwise; and (c) evaluating whether additional actions, such as a label amendment, dear doctor letter, or recall, may be necessary.
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1.94“Primary Position Detail” means, with respect to the Product, a Detail (a) in which
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key attributes of the Product are orally presented consistent with the terms of this Agreement and (b) where the Product is given primary emphasis (i.e., an emphasis that is more important than the emphasis given to any other product presented, as a first position detail).
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1.95“Product” means Tisotumab Vedotin, as referenced in the Opt-In Notice dated [*] provided by SGI to Genmab pursuant to the Collaboration Agreement, in [*].
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1.96“Product Liability” means any liability in respect of any personal injury or death (or risk of personal injury or death) arising from, relating to or otherwise in respect of the use or ingestion of, or exposure to, the Product, whether based on negligence, strict product liability or any other product liability theory, including liability predicated on any alleged or actual manufacturing, design or formulation defect or failure to warn or any breach of any express or implied warranties.
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1.97“Product Liability Losses” means any and all Losses that relate to Claims in respect of Product Liability or alleged Product Liability, in each case, anywhere in the Territory.
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1.98“Promote” means, with respect to the Product, promotional activities to be conducted by Sales Representatives of a Party in the Major Markets that are set forth in an applicable Commercialization Plan or otherwise approved by the JCC, including the following (as approved by the JCC or set forth in an applicable Commercialization Plan): (a) Detailing; (b) utilizing Promotional Materials during Details; (c) conducting display booths, displaying Promotional Materials and conducting meetings with Target Prescribers in exhibits at conferences and trade shows; (d) sponsoring advertising in journals and publications directed to Target Prescribers; (e) conducting company-directed peer-to-peer programs regarding the Product (including speakers bureau and speaker training) directed at Target Prescribers; and (f) distributing Promotional Materials to Target Prescribers using direct mail, electronic media, digital channels or other appropriate dissemination methods.    For clarity, “Promotion” shall not include: (i) discussing or responding to questions regarding the Product outside of the approved Product labeling; (ii) independently maintaining a website, call center or medical information hotline for the Product; (iii) taking Product orders or otherwise selling or offering the Product for sale; (iv) Hospital and Organized Customer Activities; or (v) other marketing activities not allocated to the applicable Party under this Agreement or in an approved Commercialization Plan. “Promotion” and “Promotional” shall have the correlative meanings.
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1.99“Promotional Materials” means any advertising, marketing, or Promotional materials, any communication, educational or training tools or materials related thereto, and any similar tools or materials (but not including materials for Medical Affairs Activities), in each case, relating to the Product and in any medium.
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1.100“QA” means quality assurance activities conducted to ensure that all products are of the quality required for their intended use and that quality systems are maintained in accordance with Applicable Law.
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1.101“QC” means quality control activities conducted to check or test that specifications are met in accordance with Applicable Law.
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1.102“Quarter” means each of the three (3) month periods ending on March 31, June 30, September 30 and December 31; provided, that the first Quarter under this Agreement shall commence on the Effective Date and the final Quarter under this Agreement shall end on the last day of the Term.  “Quarterly” shall have the correlative meaning.
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1.103“Regulatory Approval” means final regulatory approval (including, where applicable, pricing approval in the event that actual commercial sales are not permitted under Applicable Law absent such approval) required to Commercialize the Product for a disease or condition in accordance with the Applicable Law of a given country or regulatory jurisdiction. In the United States, Regulatory Approval means approval of a New Drug Application, BLA or an equivalent application by the FDA. In the EU, Regulatory Approval means approval of an MAA granted by the European Commission or the Regulatory Authority of a country in the European Economic Area.
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1.104“Regulatory Authority” means the FDA, the EMA, the European Commission, the Pharmaceuticals and Medical Devices Agency of Japan, or any comparable national or territorial regulatory entity within the Territory having substantially the same functions.
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1.105“Related Manufacturing Agreement” means any supply or quality agreement entered into between the Parties or their respective Affiliates with respect to the Product.
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1.106“Related Party” means a Party and its Affiliates. For clarity, Related Party shall not include any distributors, wholesalers or the like unless such entity is an Affiliate of the applicable Party.
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1.107“Royalty Territory” means all countries and territories within the Territory except for the Major Markets.
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1.108“Sales and Distribution” means all sales and distribution activities for the Product in connection with Commercialization thereof, including customer service, handling of returns, order processing, inventory, warehousing, shipping, serialization compliance, invoicing, booking of sales, distribution and collection of receivables.
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1.109“Sales Representative” of a Party means (a) an employee of such Party or an Affiliate of such Party engaged by such Party or Affiliate to Promote the Product on behalf of such Party or such Affiliate, or (b) an Approved Subcontractor, including a CSO, engaged by such Party or Affiliate (to the extent permitted in this Agreement) to Promote the Product on behalf of such Party or such Affiliate, excluding, in each case ((a) and (b)), (i) those employees or independent contractors of either Party or such an Affiliate that are solely engaged in telemarketing, professional education or other indirect activities in support of direct selling, and (ii) Medical Science Liaisons of a Party or such Affiliate. For clarity, “Sales Representatives” do not include employees or Approved Subcontractors engaged in Hospital and Organized Customer Activities.
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1.110“Samples” means Product units which are not intended to be sold or traded, which are intended to be distributed to authorized health care professionals, and which are intended to promote the sale of such prescription drug in accordance with 21 U.S.C. §§353(c) and (d), and the
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applicable regulations of Title 21 of the U.S. Food and Drug Administration governing prescription drug samples, including 21 C.F.R. Part 203, or any successor provisions to such laws and regulations and in accordance with Applicable Law in any non-U.S. jurisdiction where Product units are to be distributed, including with respect to the EU, Article 96 of Directive 2001/83.
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1.111“Secondary Position Detail” means, with respect to the Product, a Detail in which key attributes of the Product are orally presented consistent with the terms of this Agreement, where the Product is given significant but not primary emphasis (i.e., an emphasis that is at least or more important than the emphasis given to any other product presented other than the product that is presented as a Primary Position Detail), as a second position detail.
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1.112“Selling Party” means (a) SGI or its Affiliates in the SGI Major Markets and in the Royalty Territory, and (b) Genmab or its Affiliates in the Genmab Major Market.
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1.113“SGI Major Markets” means [*].
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1.114“Sublicensing Revenue” means (a) all consideration actually received by a Party or its Affiliates from a Sublicensee for the grant of a (sub)license to such Sublicensee of rights to Develop and/or Commercialize the Product in one or more countries in a Major Market (a “Major Market Sublicense”), net of any tax or similar withholding obligations imposed by any tax or other Governmental Authority, which consideration may include upfront, milestone, royalty or other payments; provided, that (i) if a Major Market Sublicense also includes rights granted both within the Major Markets and outside of the Major Markets, only the portion of the consideration reasonably allocable to the Major Markets will be included in the calculation of Sublicensing Revenue, (ii) if a Major Market Sublicense also includes rights to any intellectual property not necessary or useful for the Development, Manufacture or Commercialization of the Product, only the portion of the consideration reasonably allocable to the Product will be included in the calculation of Sublicensing Revenue, and (iii) Sublicensing Revenue shall not include any consideration paid by such Sublicensee for bona fide goods or services provided by such Party or its Affiliates to such Sublicensee up to [*], including a commercially reasonable supply or transfer price for any Product supplied to such Sublicensee, and (b) the amount of [*]; provided, that if such distributor has been granted rights both within and outside the Major Markets, only the consideration reasonably allocable to the Major Markets will be included in the calculation of Sublicensing Revenue. For clarity, neither (a) nor (b) will include (1) [*] (provided such consideration does not [*]), or (2) [*].
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1.115“Supply Chain Management” means the planning, management and execution of internal activities and activities of Third Party suppliers that (a) provide raw materials used in the manufacture of the Product; (b) manufacture, fill and finish, package and label the Product or any component thereof; or (c) test, assist in the release of, hold or distribute the Product or any component thereof. Supply Chain Management also includes management of forecasting activities.
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1.116“Territory” means the entire world.
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1.117“Third Party” means any Person other than Genmab, SGI or an Affiliate of either of them.
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1.118“Third Party License Agreement” means an agreement between a Party and a Third Party pursuant to which a Party in-licenses rights to Patents or other intellectual property rights controlled by such Third Party that are [*] for the Development, Manufacture or Commercialization of the Product and executed after the Effective Date in accordance with this Agreement, including Section 5.8.
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1.119“Trademark Costs” means, subject to Section 11.3, (a) the [*] (including [*]) incurred by a Party or any of its Affiliates on or after the Effective Date in connection with (i) the clearance of the Product Trademarks and the establishment of the Product Trademarks in the Major Markets and (ii) the maintenance of rights of the Product Trademarks in the Major Markets and (b) the [*] and [*] incurred by a Party or any of its Affiliates on or after the Effective Date in connection with bringing, maintaining and prosecuting any action described in Section 11.3.1, in each case, with respect to the Product and determined in accordance with the Collaboration Accounting Standards.
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1.120“United States” or “U.S.” means the United States of America, including its territories and possessions as recognized by the United Nations from time to time, but in all cases including, for clarity, Puerto Rico.
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1.121“Year” means a calendar year beginning on January 1 and ending on December 31; provided, that the first Year under this Agreement shall commence on the Effective Date and the final Year under this Agreement shall end on the last day of the Term. For clarity, references in this Agreement to “year” without capitalization mean a period of twelve (12) consecutive months (365 or 366 days, as applicable).
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1.122Other Definitions; Terms Defined in Collaboration Agreement. Capitalized terms defined elsewhere in this Agreement shall have the meanings ascribed to such terms for all provisions in this Agreement. See the Index of Defined Terms for the location of such other definitions in this Agreement. Except where the context otherwise requires, capitalized terms used in this Agreement without definitions have the meanings ascribed to such terms in the Collaboration Agreement.
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1.123Relationship to Collaboration Agreement. In the event a term is defined in this Agreement and in the Collaboration Agreement, the definition in this Agreement shall govern and control with respect to the Product and all matters under this Agreement (but, for clarity, not with respect to other “Licensed Products” as such term is defined in the Collaboration Agreement, subject to ARTICLE 12, which expressly amends and restates the sections of the Collaboration Agreement referenced therein).
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ARTICLE 2 GOVERNANCE
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2.1Governance Generally.
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2.1.1General.Each Party shall assign responsibilities for the various operational aspects of the Collaboration allocated to such Party pursuant to this Agreement to those
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portions of its organization that have the appropriate resources, expertise and responsibility for such functions.
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2.1.2Collaboration Committees, Teams and Working Groups. The Parties have established a JSC, a JDT and a joint commercialization team pursuant to the Collaboration Agreement. The Parties desire to establish additional committees or teams or clarify and modify the roles and responsibilities of existing committees or teams formed under the Collaboration Agreement as Committees or Teams hereunder, as provided below, to further oversee the Collaboration, to provide additional decision-making structures, and to provide a forum for discussion of matters relating to the Collaboration, in each case, with respect to the Product. Each Committee established hereunder shall have the responsibilities and authority allocated to it in this ARTICLE 2 and elsewhere in this Agreement.
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2.1.3Limitations on the Authority of Committees.
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(a)General. No rights, powers, or discretion shall be delegated to or vested in a Committee unless such delegation or vesting of rights is expressly provided for in this Agreement or the Parties expressly so agree by mutual Party Written Consent. The Parties hereby agree that: (a) no Committee shall have any authority with respect to the amendment, modification or waiver of compliance with any provision of this Agreement, which matters may be approved only by mutual Party Written Consent (and in the case of a waiver of compliance, by Party Written Consent of the Party entitled to waive such compliance); (b) any matter that otherwise would be within the jurisdiction of any Committee may be agreed or resolved by mutual Party Written Consent; (c) any matter that is expressly reserved to the consent or other decision-making authority of one (1) Party in this Agreement may be decided only by such Party; (d) any matter that is expressly reserved to the consent or agreement of both of the Parties may be decided only by mutual Party Written Consent; (e) all determinations made by any Committee shall be subject to and shall comply with the terms of this Agreement; (f) a Committee may not make any decision that is inconsistent with the Combined Major Market Plans unless an amendment to the applicable Combined Major Market Plan addressing such inconsistency is approved by the JSC; and (g) the Committees shall have no authority over Royalty Territory matters except as set forth in Section 2.1.3(b). Additionally, and for the avoidance of doubt, neither the JSC nor the JCC shall have any authority with respect to [*] in or for the Party Major Market(s) of either Party, or any country therein; provided, that [*] approved by the JSC. Each Party shall have the exclusive right to [*] in its Party Major Market(s) [*], in compliance with Applicable Laws (including antitrust and competition laws).
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(b)Additional Royalty Territory Limitations on Committees. Notwithstanding any other provision in this Agreement or the Collaboration Agreement to the contrary, no Committee shall have any decision-making authority with respect to the Development, Manufacturing, or Commercialization of the Product solely in the Royalty Territory or outside the Royalty Territory solely to support Development or Commercialization of the Product in the Royalty Territory (“Royalty Territory Decisions”), and such Royalty Territory Decisions shall be made by SGI at its discretion; provided, that such decisions shall be consistent with [*] (including with respect to [*]) and applicable terms of this Agreement.
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2.2Joint Steering Committee. The JSC formed under the Collaboration Agreement shall have the following responsibilities with respect to the activities to be conducted for the Product pursuant to this Agreement (provided that, for clarity, the JSC shall continue to have the roles and responsibilities as set forth under the Collaboration Agreement with respect to Licensed Products (as defined thereunder) that are not the Product):
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2.2.1overseeing the Development, Manufacturing and Commercialization of the Product, generally;
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2.2.2approving each Combined Major Market Plan (and budgets therefor, as applicable), including the global Launch plan and Launch sequence set forth in the Combined Major Market Commercialization Plan;
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2.2.3subject to Section 8.1.6(a), approving the Core Data Sheet prepared in accordance with this Agreement, which shall be submitted to it by the JDC, and amendments thereto;
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2.2.4approving final target pricing bands for the Product both globally and regionally (with relevant regions recommended by the JCC) in the Territory, in compliance with Applicable Laws (including antitrust and competition laws);
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2.2.5approving any Third Party License Agreement for one or more Major Markets in accordance with Section 5.8, approving any amendment or modification to any such Third Party License Agreement, and approving any amendment or modification to any other agreement giving rise to Payments to Third Parties treated as Allowable Expenses or Development Costs hereunder;
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2.2.6deciding whether to pursue a Commercial Sublicense for one or more countries in the Major Markets and approving any Commercial Sublicense for a Party Major Market, in each case, in accordance with and to the extent provided in Section 4.7.2;
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2.2.7approving any determination to pursue an additional or alternative source of Manufacturing for the Product or any component thereof in accordance with Section 6.3 or Section 6.4 (as applicable); provided, that the specific arrangement(s) for any such Manufacturing, including any Manufacturing by a Party, itself or through an Affiliate, are subject to the review and approval of the JCMCT as provided in Section 6.3 or Section 6.4 (as applicable);
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2.2.8approving any global allocation of Product supply proposed by the JCMCT pursuant to Section 6.7;
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2.2.9approving any recommendation from the JDC regarding whether and when to submit a DAA, including a BLA, for the Product anywhere in the Territory;
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2.2.10conducting any other activities as expressly provided for in this Agreement;
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and
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2.2.11resolving disputes referred to it by other Committees pursuant to this Agreement.
2.3Joint Development Committee.
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2.3.1Formation and Purpose. Genmab and SGI have established a “Joint Development Team” or “JDT” pursuant to the Collaboration Agreement and wish to clarify and modify its role by way of forming a “Joint Development Committee” or “JDC” hereunder for the purposes of activities related to the Product to be conducted under this Agreement as set forth herein and to assume the role of the JDT under the Collaboration Agreement solely with respect to the Product (and for clarity the JDT shall continue to have the roles and responsibilities as set forth under the Collaboration Agreement with respect to Licensed Products (defined thereunder) that are not the Product). The JDC shall consist of [*] representatives from each Party (or such other equal number of representatives from each Party as may be agreed by mutual Party Written Consent). Subject to the oversight of the JSC and subject to Sections 2.1 and 2.10, the JDC shall be principally responsible for overseeing the Development (other than CMC Development, which shall be subject to the oversight of the JCMCT) of the Product globally under the Collaboration Agreement and this Agreement, including coordination and implementation of activities between the Parties. The JDC shall operate by the procedures set forth in Section 2.10. For clarity, (a) the JDT formed under the Collaboration Agreement shall have no authority or other role with respect to the Product following the Effective Date, and (b) following the Effective Date, references in the Collaboration Agreement to the “Joint Development Team” or “JDT” solely as they relate to the Product shall refer to the JDC under this Agreement.
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2.3.2Global Development Plan. Prior to the Effective Date, the JDT adopted a Joint Development Plan and Joint Budget (each, as defined in the Collaboration Agreement) that govern the global Development, Manufacturing, and regulatory activities of the Parties with respect to the Product under the Collaboration Agreement. As promptly as practicable following the Effective Date, the JDC shall (a) update such Joint Development Plan and Joint Budget to the extent necessary to (i) align the contents thereof with this Agreement and the Approved Plans hereunder, including by incorporating the Global Regulatory Plan prepared pursuant to Section 8.1.1 and by revising the Joint Development Plan and Joint Budget to exclude Manufacturing and instead addressing Manufacturing activities in the separate Global Manufacturing Plan to be drafted and approved hereunder, and (ii) otherwise reflect the global Development activities of the Parties with respect to the Product throughout the Territory, and the corresponding budget therefor, and (b) submit such updated plan and budget to the JSC for approval (as approved by the JSC, such plan and budget, collectively, the “Global Development Plan”). Following its approval by the JSC, the Global Development Plan under this Agreement shall replace the Joint Development Plan and Joint Budget under the Collaboration Agreement for all purposes with respect to the Product under this Agreement and the Collaboration Agreement. On an annual basis, or more often as the Parties deem appropriate, the JDC shall prepare amendments to the then-current Global Development Plan for approval by the JSC. The JSC will endeavor to approve the Global Development Plan or such amendments before the end of the then- applicable Year. In the event of any inconsistency between the Global Development Plan and this Agreement, the terms of this Agreement shall prevail. For clarity, and without limiting the treatment of CMC Development Costs as Development Costs, the portions of the existing Joint Development Plan and Joint Budget relating to Manufacturing or CMC Development will not become part of the Global Development Plan pursuant to this Section
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2.3.2, and will instead become part of the Global Manufacturing Plan as addressed in Section 6.2.
2.3.3Specific Responsibilities. Subject to the oversight of the JSC, the JDC shall be responsible for overseeing Development strategy for the Product globally under this Agreement. The JDC’s responsibilities shall include the following:
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(a)overseeing the preparation of annual updates and other amendments to the Global Development Plan (including the budget therefor) for approval by the JSC;
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(b)subject to Section 8.1.6(a), reviewing and approving a form of Core Data Sheet and submitting a draft thereof to the JSC for its approval pursuant to Section 2.2.3;
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(c)monitoring compliance with the then-current budget included in the Global Development Plan;
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(d)reviewing, coordinating and monitoring the activities and progress of the Parties in implementing the Development activities contemplated by the Global Development Plan;
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(e)monitoring the activities of its Working Groups, including the JMAT, JRT and CDS Working Group in accordance the terms of this Agreement (provided, for clarity, that despite the JDC’s global role with respect to Development, its role with respect to the JMAT and Medical Affairs Activities will be limited to the JMAT’s responsibilities under this Agreement with respect to the Major Markets);
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(f)in consultation with the JRT, recommending to the JSC whether and when to submit a DAA, including a BLA, for the Product anywhere in the Territory;
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(g)facilitating the flow of information with respect to the Development of the Product and coordinating such information flow with other Committees, as appropriate;
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(h)overseeing the strategic planning and conduct of Clinical Trials consistent with the allocation of sponsorship and responsibility for Clinical Trials set forth in Section 4.6.2; provided, that the JDC shall coordinate with the JMAT with respect to the JDC’s strategic planning and conduct of Phase III-B Studies and Phase IV Studies;
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(i)making forecasts of Clinical Supply requirements for Development of the Product and reviewing the supply of Product;
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(j)making recommendations for further Development of the Product, including Development for new indications that are not in the then current Global Development Plan;
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(k)providing Quarterly updates on the JDC’s activities to the JSC;
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(l)establishing and implementing a responsibility assignment
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matrix consistent with this Agreement to define the roles and responsibilities between the Parties with respect to Development activities; and
(m)performing such other functions as the JSC may request from time to time or are expressly assigned to the JDC in this Agreement.
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2.4Joint Commercialization Committee.
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2.4.1Formation and Purpose. Genmab and SGI have established a joint commercialization team pursuant to the Collaboration Agreement and wish to supersede such joint commercialization team by way of forming a “Joint Commercialization Committee” or “JCC” hereunder for the purposes of activities related to the Product to be conducted under this Agreement as set forth herein. The JCC shall consist of [*] representatives from each Party (or such other equal number of representatives from each Party as may be agreed by mutual Party Written Consent). Subject to the oversight of the JSC and subject to Sections 2.1 and 2.10, the JCC shall be principally responsible for strategic oversight for the Commercialization of the Product in the Major Markets in accordance with the Combined Major Market Commercialization Plan. The JCC shall operate by the procedures set forth in Section 2.10 and as of the Effective Date the joint commercialization team formed under the Collaboration Agreement shall disband and have no further role, rights, or responsibilities with respect to the Product.
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2.4.2Specific Responsibilities. Subject to the oversight of the JSC, the JCC shall be responsible for general oversight of Commercialization of the Product in the Major Markets, and to coordinate consistent messaging and branding across the Major Markets and, subject to Section 2.1.3, the Royalty Territory, including the following:
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(a)overseeing the development of a Major Market Commercial strategy for the Product, including goals and strategy for Product positioning and messaging, and preparation of an overall brand strategy for the Product (the “Global Brand Strategy”), and at a minimum annual updates thereto, which shall be consistent with the Combined Major Market Commercialization Plan, for review and approval by the JSC;
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(b)developing the core content for Promotional Materials for the Product for use in the Major Markets;
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(c)overseeing the development of goals and strategy for Product pricing and reimbursement for review and approval by the JSC, including recommending to the JSC target pricing bands for the Product both globally and regionally (with relevant regions recommended by the JCC) in the Territory, in compliance with Applicable Laws (including antitrust and competition laws), and monitoring Product pricing and reimbursement in the Territory;
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(d)overseeing the preparation of the Combined Major Market Commercialization Plan (including the budget therefor and the global Launch plan and Launch sequence contained therein) and annual updates and other amendments thereto, in each case, for review and approval by the JSC;
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(e)monitoring compliance with the then-current budget included in
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the Combined Major Market Commercialization Plan;
(f)monitoring progress under and overseeing the implementation of the Combined Major Market Commercialization Plan;
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(g)reviewing the Party Major Market Commercialization Plans and annual updates thereto for consistency, and confirming whether they are consistent, with the Combined Major Market Commercialization Plan (subject to Section 2.10.5(c));
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(h)reviewing and approving the US Coordination Plan relating to the Commercialization activities of the Parties in the United States incorporated into the SGI Major Market Commercialization Plan (and any updates or amendments thereto), subject to Section 3.5, including reviewing such plan and activities for consistency, and confirming that they are consistent, with the Combined Major Market Commercialization Plan, subject to Section 2.10.5(c), and monitoring compliance with the core job description and time periods for hiring Sales Representatives in the United States set forth in the US Coordination Plan;
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(i)reviewing the recommendations of the independent Third Party consultant engaged pursuant to Section 3.4 with respect to the total target headcount or number of FTEs for Sales Representatives in the United States and making a determination with respect to such allocation and deployment pursuant to Section 3.4 which shall be reflected in the US Coordination Plan;
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(j)reviewing and monitoring the forecasting of unit volume demand in the Territory for purposes of the Global Manufacturing Plan;
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(k)reviewing and monitoring Allowable Expenses and each Party’s sales and financial reports pertaining thereto in coordination with the JFT;
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(l)facilitating the flow of information with respect to the Commercialization of the Product and coordinating such information flow with other Committees, as appropriate;
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(m)providing Quarterly updates on Commercialization activities in the Major Markets and the JCC’s activities to the JSC; and
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(n)performing such other functions as the JSC may request from time to time or are expressly assigned to the JCC in this Agreement.
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2.5Joint Finance Team.
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2.5.1Formation and Purpose. Genmab and SGI hereby establish a joint finance team (the “Joint Finance Team” or “JFT”), which shall consist of [*] representatives from each Party (or such other equal number of representatives as may be agreed by mutual Party Written Consent). Subject to the oversight of the JSC and Sections 2.1 and 2.10, the JFT shall provide support to all other Committees with respect to accounting and financial matters relating to the Collaboration and the Product. The JFT shall report directly to the JSC. The JFT shall operate by the procedures set forth in Section 2.10. Additionally, as of the Effective Date, the Financial
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Representatives (as defined in the Collaboration Agreement) shall be superseded and replaced by the JFT and shall have no further role, rights, or responsibilities with respect to the Product.
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2.5.2Specific Responsibilities of the JFT. Subject to the oversight of the JSC,
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the JFT shall:
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(a)work with the other Committees and the Parties to assist in
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financial, budgeting and planning matters as required, including (i) assisting in the preparation of such reports on financial matters as are requested by the JSC for the implementation of the financial aspects of the Collaboration, and (ii) assisting with the preparation of budgets for the relevant Approved Plans;
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(b)agree on procedures, formats and timelines consistent with this Agreement for reporting financial data;
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(c)assist in resolving differences that relate to the financial terms of this Agreement; provided, that no Party shall be required to make any material change to its internal accounting and reporting systems and standards (as opposed to generating ad hoc or additional reports which the Parties shall generate upon reasonable request);
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(d)review each Party’s reporting of financial data, including Net Sales and Allowable Expenses, under this Agreement;
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(e)facilitate the flow of financial information with respect to the Development, Commercialization and Manufacture of the Product in the Major Markets and coordinate such information flow with other Committees, as appropriate;
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(f)to the extent that the JSC and the JCMCT have approved Manufacturing by a Party, itself or through an Affiliate, in each case, pursuant to Section 6.3 or Section 6.4 (as appropriate), review and approve the amount of capital expenditures, including for plant and equipment, directly attributable or reasonably allocable to the Manufacture of Product for Commercialization by such Party or its Affiliate in the Major Markets and not accounted for in Manufacturing Costs or Commercial Packaging and Labeling Costs, as such amount is proposed by the JCMCT to be budgeted as an Allowable Expense in the Global Manufacturing Plan;
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(g)review and propose any changes to the FTE rates used to calculate FTE Costs for activities conducted under this Agreement with respect to the Product for review and approval by Party Written Consent; and
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(h)perform such other functions as the JSC may request from time to time or are expressly assigned to the JFT in this Agreement.
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2.6Joint Chemistry, Manufacturing & Controls Team.
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2.6.1Formation and Purpose. Genmab and SGI have established a joint chemistry, manufacturing & controls committee pursuant to the Collaboration Agreement and wish to clarify and modify its role by way of forming a “Joint Chemistry, Manufacturing & Controls Team” or “JCMCT” hereunder solely for the purposes of activities related to the Product to be conducted under this Agreement as set forth herein. The JCMCT shall consist of [*] representatives from each Party (or such other equal number of representatives from each Party as may be agreed by mutual Party Written Consent). Subject to the oversight of the JSC and Sections 2.1 and 2.10, the JCMCT shall oversee the Manufacture and supply of the Product globally, as well as all CMC Development activities and the global supply chain. The JCMCT shall operate by the procedures set forth in Section 2.10. For the avoidance of doubt, the specific allocation of responsibilities for Manufacturing activities between Genmab and SGI shall be made in 

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accordance with ARTICLE 6 and as of the Effective Date the joint chemistry, manufacturing & controls committee formed under the Collaboration Agreement shall be superseded and replaced by the JCMCT and shall disband and have no further role, rights, or responsibilities with respect to the Product.
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2.6.2Specific Responsibilities of the Joint Chemistry, Manufacturing & Controls Team. Subject to the oversight of the JSC, Sections 2.1 and 2.10, and ARTICLE 6, the JCMCT shall, in particular and in addition to its other responsibilities set forth in this Agreement:
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(a)oversee CMC Development activities and clinical and commercial Manufacturing of the Product;
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(b)with input from the JDC, JCC, and JFT, as necessary, oversee the preparation of an annual Global Manufacturing Plan (and budget therefor) for the Product, including, to the extent that the JSC and the JCMCT have approved Manufacturing by a Party, itself or through an Affiliate in accordance with Section 6.3 or Section 6.4 (as applicable), and proposing the amount of capital expenditures, including for plant and equipment, directly attributable or reasonably allocable to the Manufacture of Product for Commercialization in the Major Markets by such Party or its Affiliate and not accounted for in Manufacturing Costs or Commercial Packaging and Labeling Costs to be budgeted as an Allowable Expense, for review and approval by the JFT pursuant to Section 2.5.2(f);
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(c)monitor compliance with the budget under the Global Manufacturing Plan for Manufacturing Commercial Supply, Manufacturing Clinical Supply and for CMC Development;
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(d)review and monitor Manufacturing Costs, CMC Development Costs, Commercial Packaging and Labeling Costs, and any other Manufacturing-related costs proposed for inclusion in Allowable Expenses or Development Costs;
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(e)oversee the preparation of submissions to Regulatory Authorities related to chemistry, manufacturing and controls (“CMC”) matters;
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(f)oversee the preparation for and reviewing responses to regulatory inspections related to CMC aspects related to the Product, including the development of policies and procedures therefor;
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(g)oversee and monitor QA- and QC-related matters concerning the Product, including QA- and QC-related matters with respect to Post-Market Surveillance;
(h)review and monitor Manufacturing processes and specifications for the Product, and to the extent agreed by the JCMCT, develop and implement continuous improvement or similar programs to promote Manufacturing quality and efficiency;
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(i)oversee Supply Chain Management, develop a global supply and risk mitigation strategy for the Product, and consider whether additional or alternative sourcing is necessary;
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(j)facilitate the flow of information with respect to the Manufacture of the Product and coordinate such information flow with other Committees, as appropriate;
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(k)provide Quarterly updates on the JCMCT’s activities to the JSC; and
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(l)perform such other functions as the JSC may request from time to time or are expressly assigned to the JCMCT in this Agreement.
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2.7Joint Medical Affairs Team.
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2.7.1Formation and Purpose. Genmab and SGI hereby agree to establish a joint medical affairs team solely for the purposes of activities related to the Product to be conducted under this Agreement as set forth herein (the “Joint Medical Affairs Team” or “JMAT”) within [*] days after the Effective Date. The JMAT shall constitute a Working Group of the JDC and shall consist of [*] representatives from each Party (or such other equal number of representatives from each Party as may be agreed by mutual Party Written Consent). The JMAT shall report to the JDC; provided, however, that notwithstanding anything contained herein to the contrary, the Combined Major Market Medical Affairs Plan prepared by the JMAT and its corresponding budget, and any amendments thereto which shall be proposed by the JMAT, shall be submitted directly to the JSC for its review and approval pursuant to Section 2.2.2. Subject to the oversight of the JDC, Sections 2.1 and 2.10, and ARTICLE 7, the JMAT shall be responsible for strategic oversight of the Medical Affairs Activities in the Major Markets with respect to the Product under this Agreement, including coordination of such activities between the Parties. The JMAT shall operate by the procedures set forth in Section 2.10. For the avoidance of doubt, the specific allocation of responsibilities for Medical Affairs Activities between Genmab and SGI shall be made in accordance with ARTICLE 7.
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2.7.2Specific Responsibilities of the Joint Medical Affairs Team. Subject to Sections 2.1 and 2.10, and ARTICLE 7, the JMAT shall, in particular and in addition to its other responsibilities set forth in this Agreement:
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(a)oversee the preparation of the Combined Major Market Medical Affairs Plan (including the budget therefor) and annual updates and other amendments thereto;
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(b)monitor compliance with the then-current budget included in the Combined Major Market Medical Affairs Plan;
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(c)monitor progress under, and oversee the implementation of, the Combined Major Market Medical Affairs Plan, including with respect to named patient/compassionate use programs, grants, investigator-initiated and investigator-sponsored research for the Product, in each case, included in such plan;
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(d)review the Party Major Market Medical Affairs Plans and annual updates thereto for consistency with the Combined Major Market Medical Affairs Plan (subject to Section 2.10.5(c));
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(e)review and approve the US Coordination Plan relating to the
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Medical Affairs Activities of the Parties in the United States incorporated into the SGI Major Market Medical Affairs Plan (and any updates or amendments thereto), subject to Section 3.5, and reviewing such plan and activities for consistency, and confirming that they are consistent, with the Combined Major Market Medical Affairs Plan, subject to Section 2.10.5(c), and monitoring compliance with the core job description and time periods for hiring MSLs in the United States set forth in the US Coordination Plan;
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(f)review the recommendations of the independent Third Party consultant engaged pursuant to Section 3.4 with respect to the total target headcount or number of FTEs for MSLs for the Product, allocation and deployment thereof in the United States and making a determination with respect to such allocation and deployment pursuant to Section 3.4 which shall be reflected in the US Coordination Plan;
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(g)review, discuss and coordinate the Parties’ global scientific presentation and publication strategy relating to the Product in accordance with this Agreement and the Publication Charter;
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(h)in coordination with the JDC prior to obtaining Regulatory Approval in a given jurisdiction and other Committees, as appropriate, develop a strategy for investigator-initiated trials and investigator-sponsored research in the Major Markets;
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(i)coordinate with the JDC with respect to the JDC’s planning and conduct of Phase III-B Studies and Phase IV Studies;
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(j)facilitate the flow of information with respect to the Medical Affairs Activities for the Product in the Major Markets and coordinate the flow of such information with other Committees, as appropriate;
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(k)monitor Allowable Expenses for Medical Affairs Activities in coordination with the JFT;
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(l)provide Quarterly updates on Medical Affairs Activities in the Major Markets and the JMAT’s activities to the JDC; and
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(m)perform such other functions as the JDC or JSC may request from time to time or are expressly assigned to the JMAT in this Agreement.
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2.8Joint Regulatory Team.
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2.8.1Formation and Purpose. Genmab and SGI have established a joint regulatory team pursuant to the Collaboration Agreement and wish to clarify and modify its role by way of forming a “Joint Regulatory Team” or “JRT” hereunder solely for the purposes of activities related to the Product to be conducted under this Agreement as set forth herein. The Joint Regulatory Team shall constitute a Working Group of the JDC and consist of [*] representatives from each Party (or such other equal number of representatives from each Party as may be agreed by mutual Party Written Consent). The JRT shall report to the JDC. Subject to the oversight of the JDC, Sections 2.1 and 2.10, and ARTICLE 8, the JRT shall be principally responsible for strategic oversight and coordination of global regulatory activities with respect to the Product, except that the JCMCT will oversee CMC-related regulatory activities in coordination with the JRT, as applicable. For clarity, while the JDC will retain overall oversight of global regulatory activities with respect to the Product, the JRT will have the responsibilities for global regulatory activities with respect to the Product described in this Section 2.8. The JRT shall operate by the procedures set forth in Section 2.10 and as of the Effective Date the joint regulatory team formed under the Collaboration Agreement shall be superseded and replaced by the JRT and shall disband and have no further role, rights, or responsibilities with respect to the Product.
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2.8.2Specific Responsibilities of the Joint Regulatory Team. Subject to the oversight of the JDC, Sections 2.1 and 2.10, and ARTICLE 8, the JRT shall, in particular and in addition to its other responsibilities set forth in this Agreement:
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(a)discuss, prepare and submit to the JDC on an annual basis a Global Regulatory Plan or the regulatory portions of the Global Development Plan as contemplated by Section 8.1.1 (which shall include a high-level summary prepared by SGI with respect to the Royalty Territory) describing the Parties’ global regulatory strategy for the Product in the Territory which shall be incorporated into the Global Development Plan by the JDC and submitted to the JSC for approval;
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(b)monitor progress under, and oversee the implementation of, the Global Regulatory Plan;
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(c)review the Party Regulatory Plans and annual updates thereto for consistency with the Global Regulatory Plan as provided in Section 8.1.1;
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(d)consult with the JDC to develop the JDC’s recommendations to the JSC regarding whether and when to submit a DAA, including a BLA, for the Product anywhere in the Territory;
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(e)subject to Section 8.1.6(a), in conjunction with the CDS Working Group, review the draft Core Data Sheet prepared by SGI and any amendments to the Core Data Sheet proposed by SGI, and agree on a proposed form of Core Data Sheet for submission to the JDC and ultimately review and approval by the JSC;
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(f)provide Quarterly updates on the JRT’s activities to the JDC; and
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(g)perform such other functions as the JDC may request from time to time or are expressly assigned to the JRT in this Agreement.
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2.9CDS Working Group. Genmab and SGI hereby agree to establish a Core Data Sheet working group (the “CDS Working Group”) within [*] days after the Effective Date. The CDS Working Group shall constitute a Working Group of the JDC and consist of [*] representatives from each Party (or such other equal number of representatives from each Party as may be agreed by mutual Party Written Consent). The CDS Working Group shall report to the JDC. Subject to Section 8.1.6(a), the CDS Working Group shall, in conjunction with the JRT, review the draft Core Data Sheet prepared by SGI and any amendments to the Core Data Sheet proposed by SGI, and agree on a proposed form of Core Data Sheet for submission to the JDC for review and approval, and ultimately submission by the JDC to the JSC for review and approval.
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2.10General Committee, Team, and Working Group Membership and Procedures.
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2.10.1Teams and Working Groups. From time to time, the JSC and the Committees may establish and delegate duties to working groups, teams, sub-teams, sub- committees or similar bodies formed under such Committee (each, a “Team” or a “Working Group”) on an “as-needed” basis to oversee particular projects or activities, which delegations shall be reflected in the minutes of the meetings of the applicable Committee. Such Teams or Working Groups may be established on an ad hoc basis for purposes of a specific project, for the life of the Product or on such other basis as the establishing Committee may determine, and shall be constituted and shall operate as the establishing Committee may determine; provided, that (a) decision-making shall be [*], with each Party’s representatives on the applicable Team or Working Group collectively having [*] on all matters brought before the Team or Working Group and (b) a Team or Working Group may not make any decision that is inconsistent with the Global Plans or Combined Major Market Plans unless an amendment to the applicable Global Plan or Combined Major Market Plan addressing such inconsistency is approved in accordance with this Agreement. Each Team and Working Group and their respective activities shall be subject to the oversight, review and approval of, and, shall report to, the Committee that established such Team or Working Group. In no event shall the authority of the Team or Working Group exceed that specified for the relevant Committee in this ARTICLE 2. Teams or Working Groups shall meet as needed to accomplish the objectives for which they were formed, and shall keep minutes of such meetings in accordance with Section 2.10.2. A Committee that forms a Team or Working Group shall have the ability to dissolve such Team or Working Group; provided, that (a) the JFT, JMAT and JCMCT are all to be deemed Teams established under the JSC for that purpose, and (b) the JRT is to be deemed a Team established under the JDC for that purpose.
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2.10.2Committee Membership. Each of Genmab and SGI shall designate representatives with appropriate expertise to serve as members of each Committee, Team, or Working Group and each representative may serve on more than one Committee, Team or Working Group as appropriate in view of the individual’s expertise. Each Party may replace its Committee, Team, or Working Group representatives at any time upon written notice to the other Party. Each member of each Committee, Team, or Working Group shall be made aware of the Parties’ obligation of compliance with all Applicable Laws, including antitrust and competition
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laws, as set forth in Section 9.1.5. Each Committee, Team, or Working Group shall have a chairperson; provided, that the chairperson for each Committee shall be staggered such that the chairperson for each Committee, Team, or Working Group shall alternate from one Party to the other Party annually. The initial chairperson of each of the Committees or Teams formed under this Agreement shall be a representative of a Party designated by the JSC. Each Party may change its designated chairpersons from time to time upon written notice to the other Party. The chairperson of each Committee, Team, or Working Group (or their respective designees), with assistance and guidance from the Alliance Managers, shall be responsible for calling meetings and preparing and circulating an agenda in advance of each meeting of such Committee, Team, or Working Group; provided, that the Committee, Team, or Working Group chairpersons shall call a meeting of the applicable Committee promptly upon the written request of either Party to convene such a meeting. The then-current chairperson of each Committee, Team, or Working Group shall appoint its Alliance Manager to attend the meeting and record the minutes of the meeting in writing; provided, that such minutes shall be based on contemporaneous notes reflecting the substance of such meeting shared and mutually agreed between such Alliance Manager and the Alliance Manager or other representative of the other Party immediately following or as soon as practicable following such meeting. Notwithstanding the foregoing, such minutes shall be circulated to the other Party’s Alliance Manager no later than [*] following the meeting for review, comment and approval of the other Party. If no comments are received within [*] of the receipt of the minutes by a Party, unless otherwise agreed, they shall be deemed to be approved by such Party. Furthermore, if the Parties are unable to reach agreement on the minutes within [*] of the applicable meeting, the sections of the minutes which have been agreed between the Parties by that date shall be deemed approved and, in addition, each Party shall record in the same document its own version of those sections of the minutes on which the Parties were not able to agree.
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2.10.3Meetings. Each Committee, Team, or Working Group shall hold meetings at such times as it elects to do so, but in no event shall such meetings of each Committee be held less frequently than [*] unless otherwise agreed by the JSC (provided, that a Committee, Team, or Working Group shall meet upon the reasonable request of a Party or any member thereof to discuss a matter within its purview). Each Committee shall meet alternately at a location designated by Genmab and a location designated by SGI, or at such other locations, including by audio or video teleconference as permitted below, as the Parties may agree. Except under exigent circumstances requiring Committee input, each Party will notify the other Party of proposed agenda items and provide appropriate information at least [*] in advance of each meeting of the JSC and at least [*] in advance of each meeting of any other Committee. The Alliance Managers (or their respective designees) shall attend meetings of each Committee as non-voting observers. Additional employees, consultants, and representatives of a Party may attend meetings of each Committee as non-voting observers; provided, that (a) any such employees, consultants or representatives are (i) under obligations to comply with all Applicable Laws (including antitrust and competition laws as set forth in Section 9.1.5), (ii) under obligations of confidentiality and non-use applicable to the Confidential Information of each Party that are at least as stringent as those set forth in this Agreement and (iii) obligated to assign to the Parties any inventions made by any of them arising out of their participation in such meetings, and (b) with respect to non- employees of a Party, such attendance is subject to consent of the other Party. Each Party shall be responsible for all of its own expenses of participating on the Committees. Meetings of any Committee may be held by audio or video teleconference with the consent of each Party; provided, that (A) each Committee formed or initially organized under this Agreement as of the Effective
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Date will endeavor to meet by videoconference in lieu of audio-only teleconference to the extent reasonably practicable, and (B) the Parties will discuss in good faith holding at least [*] meeting per year of each such Committee in person at a location alternately designated by Genmab and SGI (subject to travel restrictions, public health guidance and Applicable Law). No Committee shall take any action or make any decision except at a meeting properly called, and no action taken at any meeting of a Committee shall be effective unless a representative of each Party is present or participating. Subject to each Party’s regulatory compliance policies and Applicable Law, the JMAT and the JCC may meet as a single body to discuss and exchange information if mutually agreed by such Committees or reasonably requested by either Party.
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2.10.4Charter. Each Committee shall adopt a charter setting forth such additional rules and procedures as may be necessary for the performance of its responsibilities; provided, that such rules and procedures must be consistent with the terms of this Agreement. In the event of any conflict or inconsistency between any such Committee charter and the terms and conditions of this Agreement, the terms and conditions of this Agreement shall govern and control.
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2.10.5Decision-Making.
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(a)Decisions. Decisions of each Committee, Team and Working Group shall be made by Joint Committee Consent, with each Party’s representatives on a Committee, Team or Working Group collectively having [*] on all matters brought before it; provided, that (i) Party Tactical Matters are subject to Section 2.10.6, (ii) any dispute between the Parties regarding the US Coordination Plan, including any decision or failure to reach consensus by a Committee, Team or Working Group regarding the US Coordination Plan shall be resolved in accordance with Section 3.5.2 (provided that any dispute regarding whether the US Coordination Plan is consistent with the Combined Major Market Plans shall be resolved pursuant to Section 2.10.5(c)), and (iii) each Committee’s authority is limited as set forth in Section 2.1.3.
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(b)Committee Dispute Resolution in General. Working Groups, Teams and Committees should make every effort to resolve disputes promptly without escalation. Any disagreement between the representatives of Genmab and SGI on any Working Group, Committee or Team as to matters within such Working Group, Team or Committee’s purview (including, for clarity, whether a matter constitutes a Party Tactical Matter) shall, at the election of either Party, be referred for resolution as follows: (i) disputes between the representatives of Genmab and SGI on any Working Group or Team shall be referred for resolution to the applicable Committee to which it reports, and (ii) disputes between the representatives of Genmab and SGI on any Committee (including a dispute referred from a Working Group or Team to the applicable Committee that is not resolved within [*] Business Days after such referral) shall be referred to the JSC for resolution. The Alliance Managers shall assist the relevant Committee in attempts to amicably resolve any such dispute in connection with the decision-making and dispute-resolution processes outlined in this Section 2.10.5 generally.
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(c)Combined Major Market Plan Disputes. Notwithstanding Section 2.10.5(b) above, the following principles shall apply to a Committee responsible under this Agreement for reviewing a Party Major Market Plan (including, if applicable, the US Coordination Plan incorporated therein pursuant to Section 2.4.2(h), Section 2.7.2(e) or Section 3.5.1) for consistency with an applicable Combined Major Market Plan. Such reviewing
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Committee may consult with the relevant market-level and/or functional leads of each Party in connection with its review. If there is a dispute on such Committee regarding whether or not such Party Major Market Plan is consistent with the applicable Combined Major Market Plan and such dispute is not resolved within [*] Business Days, the question of such Party Major Market Plan’s consistency with the applicable Combined Major Market Plan shall be referred to the JSC for resolution. If the JSC determines that such Party Major Market Plan is consistent with the applicable Combined Major Market Plan (either as such Party Major Market Plan was presented to the JSC, or with any amendments requested by the JSC in order to make such Party Major Market Plan consistent with the applicable Combined Major Market Plan), the JSC’s determination shall be binding on the Parties without further review by the Committee originally charged with reviewing such Party Major Market Plan; provided, that any subsequent amendment or update to such Party Major Market Plan shall be reviewed by such Committee for consistency, and confirmed by the Committee to be consistent, with the applicable Combined Major Market Plan (subject again to this Section 2.10.5(c)). If the JSC cannot agree on whether a Party Major Market Plan is consistent with the applicable Combined Major Market Plan or determines that a Party Major Market Plan is not consistent with the applicable Combined Major Market Plan (and the JSC cannot agree on amendments to such Party Major Market Plan that would make it consistent with the applicable Combined Major Market Plan), in each case, within [*] Business Days of its referral to the JSC, such matter shall be referred to [*] for resolution. If [*] are unable to resolve the matter within [*] Business Days after the matter is first referred to them, then [*]. Any portion of the proposed Party Major Market Plan and corresponding budget that is not in dispute (i.e., not specifically subject to such dispute resolution process) will go into effect immediately notwithstanding such ongoing dispute resolution proceedings, and the portions of the most recently approved Party Major Market Plan and budget that correspond to the matters in dispute will be deemed to carry forward and apply to subsequent budget periods to the extent practicable, mutatis mutandis, until the resolution of such dispute, so as to minimize any disruption to the ongoing Development, Manufacturing, or Commercialization of the Product.
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(d)Disputes at the JSC.   Except   for   matters   subject   to Section 2.10.5(c), any dispute or disagreement arising on the JSC as to matters within the JSC’s purview or that are submitted to the JSC by another Committee in accordance with this Agreement for attempted resolution that are unable to be resolved within [*] Business Days after the matter is first submitted to the JSC (or such other time period as may be agreed by the JSC) shall be referred to [*] for resolution. If the [*] are unable to resolve a matter within [*] days after the matter is first referred to them, then [*].
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2.10.6Party Tactical Matters. Notwithstanding Section 2.10.5 or anything to the contrary contained in this Agreement or the Collaboration Agreement, but subject to this Section 2.10.6, Party Tactical Matters (a) with respect to the SGI Major Markets other than the United States shall be Party Tactical Matters of SGI and as such within the sole decision-making authority of SGI, (b) with respect to the Genmab Major Market shall be Party Tactical Matters of Genmab and as such within the sole decision-making authority of Genmab, (c) with respect to activities allocated to Genmab under the US Coordination Plan shall be Party Tactical Matters of Genmab and as such, subject to ARTICLE 3, within the sole decision-making authority of Genmab, and (d) except as provided in clause (c) above, with respect to all other activities in or for the United States shall be Party Tactical Matters of SGI and as such within the sole decision- making authority of SGI; provided, that (and so long as) all such decisions shall be consistent with the terms of this
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Agreement, the scope of such allocation or delegation of responsibility for the Major Markets, Applicable Law, the Global Plans, the Combined Major Market Plans, and the relevant Party Major Market Plans (including the US Coordination Plan). Subject to Section 2.1.3 and this Section 2.10.6, Party Tactical Matters may be discussed by applicable Committee(s); provided, that a Party’s decision with respect to its Party Tactical Matters (in the case of Genmab’s activities in the United States, subject to the US Coordination Plan and ARTICLE 3) shall be final, and not subject to Committee decision-making or the dispute resolution procedures contained in this Section 2.10, ARTICLE 16, or elsewhere in this Agreement or the Collaboration Agreement.
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2.10.7Exception for Urgent or Serious Safety Matters. Notwithstanding anything to the contrary in this Section 2.10, in the event of any dispute or disagreement arising on any Committee or otherwise between the Parties regarding an urgent or serious safety matter (including patient risk management and risk minimization events and safety issues that impact Product labeling) that a Party believes in good faith requires a determination on an expedited basis, then either Party may require that the dispute be referred to their respective safety officers (or similar functions) for the purpose of seeking to resolve the dispute on an expedited basis (including within, to the extent applicable, any timeframes required by Applicable Law). Such safety officers may designate an appropriate advisory group of each Party, as well as obtain any Third Party advice on their decision (with any such Third Parties to be bound by obligations of confidentiality at least as restrictive as those contained in this Agreement). If such safety officers are not able to resolve the dispute on any action referred to them [*], within [*] Business Days of such referral and at least [*] Business Days in advance of any timeframes required by Applicable Law, [*] with respect to such matter to the extent consistent with Applicable Law (including for clarity requirements of a Regulatory Authority).
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2.11Alliance Managers.
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2.11.1Each of the Parties shall appoint one (1) representative who possesses a general understanding of biopharmaceutical Development, regulatory matters, Medical Affairs Activities, and Commercialization to act as its Alliance Manager in connection with the Collaboration (each, an “Alliance Manager”). The role of the Alliance Managers is to act as a single point of contact between the Parties to enable a successful Collaboration. The Alliance Managers (or their respective designees) may attend all meetings of any Committee, Team or Working Group and support the chairpersons of each Committee in the discharge of their responsibilities. An Alliance Manager (or designee) may bring any matter to the attention of any Committee, Team or Working Group if such Alliance Manager (or designee) reasonably believes that such matter warrants such attention. In addition, Alliance Managers (or their respective designees) may attend any joint meetings of the Parties regarding the Collaboration that are held independent of the Committees, Teams, or Working Groups.
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2.11.2Each Party may change its designated Alliance Manager from time to time upon written notice to the other Party. Each Party and its Alliance Manager may designate a substitute to temporarily perform the functions of Alliance Manager upon written notice to the other Party’s Alliance Manager.
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2.12Budgetary Matters.
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2.12.1Prior to each regular meeting of the JSC and not less than Quarterly, the JFT shall prepare an analysis of actual Allowable Expenses and Development Costs incurred and Net Profit/Net Loss recorded by the Parties through the most recent date practicable in relation to the amounts budgeted therefor in the applicable Approved Plans. The JFT shall determine the frequency and timing of projections for each category described in the previous sentence, with the goal of accommodating each Party’s corporate financial processes. Each Party shall provide to the JFT in a timely manner such information as the JFT may reasonably request for use in the preparation of such analysis; provided, that such information is in the possession of such Party. Each Party shall promptly notify the JFT in the event it anticipates any cost overrun with respect to Development Costs and/or Allowable Expenses in a given functional area (e.g., Medical Affairs Activities or Commercialization activities) incurred or to be incurred by it with respect to any Year or any material variation in Net Sales amounts from the amounts projected in the Approved Plans. The JFT shall promptly review any actual or projected cost overrun that is reported to it and thereafter shall, in conjunction with the JSC, consider and recommend to the JSC for approval either (a) an appropriate variance to the applicable Approved Plans, which variance, if approved by the JSC, shall be considered a part of the Approved Plans or (b) such other amendments to the Approved Plans as may be necessary or appropriate to bring the operation of the Collaboration within the budgetary guidelines set forth in the Approved Plans; provided, that the JSC shall approve such variance unless such cost overrun exceeds the lower of [*] of the budgeted amount for a given functional area (e.g., Medical Affairs Activities or Commercialization activities) in a given Year, in which case the JSC may elect not to approve the variance or amend the applicable Approved Plan. If the JSC does not approve such variance or does not amend the applicable Approved Plan, [*], and such expense shall [*].
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2.12.2In order to facilitate planning and budgetary control by the relevant Committees and the Parties, each Party shall provide to the JFT and to the other Party not later than [*] after the end of each Quarter a projection (representing a good faith estimate) of the Allowable Expenses it expects to incur and the Net Sales it expects to record in its Major Markets and the Development Costs it expects to incur, in each case, in such Quarter.
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ARTICLE 3 GENMAB CO-PROMOTION
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3.1Genmab Right to Co-Promote and Provide Medical Affairs Efforts.
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3.1.1Genmab U.S. Co-Promotion Rights. Notwithstanding anything to the contrary contained in this Agreement, but without prejudice to the status of the United States as an SGI Major Market, the Parties agree that Genmab will be SGI’s co-promotion and medical affairs partner with respect to the Product in the United States on the terms and subject to the conditions contained in this ARTICLE 3. In particular, Genmab will provide with respect to the Product in the United States:
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(a)the Sales Representatives as described in Section 1 of Schedule 3.1 to Promote the Product in the United States;
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(b)the MSLs described in Section 2 of Schedule 3.1 to engage in in- depth dialogues with physicians or other HCPs regarding medical issues associated with the Product; and
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(c)FTEs for [*] management of such Sales Representatives and MSLs as described in Section 3 of Schedule 3.1 (collectively, “Genmab Managers”); 
in each case ((a) through (c)), as more fully described in this ARTICLE 3.
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The Sales Representatives contemplated by Section 3.1.1 are referred to herein as “Genmab Sales Representatives,” the MSLs contemplated by Section 3.1.1 are referred to herein as “Genmab MSLs,” and the Genmab Sales Representatives, Genmab MSLs and Genmab Managers are referred to herein, collectively, as “Genmab US Personnel.”
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3.1.2Genmab US Activities. All activities undertaken by the Genmab US Personnel with respect to the Product in or for the United States (collectively, the “Genmab US Activities”) will be subject to and taken in accordance with the SGI Major Market Commercialization Plan, the SGI Major Market Medical Affairs Plan, the US Coordination Plan, and this ARTICLE 3.
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3.1.3SGI Rights. The rights and responsibilities of SGI with respect to Commercialization and Medical Affairs Activities for the Product in the United States will remain the same as elsewhere in the SGI Major Markets except as explicitly stated in this ARTICLE 3. In particular, subject only to the consistency of SGI’s Party Major Market Plans with the applicable Combined Major Market Plans, the US Coordination Plan, and the terms and conditions of this Agreement, SGI will have authority and responsibility for:
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(a)subject to [*], [*] for the Product in the United States [*] in accordance with this Agreement;
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(b)subject to consistency with [*] the terms of this Agreement [*] with respect to the Product in the United States; and
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(c)subject to [*] and consistency with [*] the terms of this Agreement, [*] with respect to the Product in the United States.
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3.1.4Limitations on Genmab Activities. Except to the extent expressly provided in the US Coordination Plan or otherwise with the prior written authorization of SGI, Genmab shall have no independent right or authority to, and shall not, through the Genmab US Personnel or otherwise, with respect to the Product in or for the United States:
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(a)conduct any form of [*] or [*]; or
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(b)conduct any [*] or other activities [*].
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3.1.5Genmab Activities. To the extent expressly provided in the US
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Coordination Plan or otherwise with the prior written authorization of SGI, Genmab may, through the Genmab US Personnel, with respect to the Product in or for the United States:
(a)participate in and provide input on [*], or similar activity, whether [*] or [*], and Genmab may [*] in accordance with this Agreement and [*];
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(b)participate in and provide input as to [*], including [*] with respect to the Product for the United States;
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(c)participate in and provide input on and support for [*], or similar activity, [*] with respect to the Product for the United States;
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(d)provide [*] or [*] regarding the Product;
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(e)authorize, support or facilitate [*], or otherwise [*];
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(f)participate in and provide input on and support for [*] with respect to the Product;
(g)retain, engage, or otherwise contract with [*]; or
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(h)[*] or [*], in each case, to the extent that [*] have been approved by SGI.
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The Parties agree that each Party’s role in the co-Promotion of and Medical Affairs Activities for the Product in the United States will be conducted only as set forth in [*]. Notwithstanding the foregoing, [*] (provided that such decisions are consistent with the US Coordination Plan and this ARTICLE 3), but, for the avoidance of doubt, [*] in the United States shall not include decisions [*] as set forth in the [*] or this ARTICLE 3.
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3.1.6Genmab Collaboration. Following the Effective Date and so long as the Product has obtained Regulatory Approval for only one Disease in the United States, the Parties will each designate a [*] to interact for non-field coordination. Each Party will [*] for its [*]. In connection with obtaining Regulatory Approval in the United States for a second or subsequent Diseases, the Parties will discuss and consider in good faith whether to add further personnel to serve as, and/or to [*] for, [*]. For clarity, the [*] shall not be assigned to or perform services at any facility of [*] or its [*] and each Party acknowledges and agrees that the [*] and [*] are not, are not intended to be, and will not be treated as, employees of [*] for any purpose.
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3.2Co-Promotion in the United States. The Parties agree that the activities of their Sales Representatives and MSLs for the Product in the United States for each Disease for which Regulatory Approval is obtained will be conducted consistent with the following:
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3.2.1activities to be conducted by each Party’s Sales Representatives and MSLs will be allocated in a manner consistent with Section 3.4;
3.2.2at a minimum, [*] related to the Launch of the Product for a Disease in the United States will be jointly attended by the Parties’ personnel performing such co-Promotion
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activities and Medical Affairs Activities;
3.2.3the Parties will share information related to the activities of their Sales Representatives and MSLs for the Product in the United States, including to the extent applicable in relation to [*], on a timely and recurring basis and in any event, upon the reasonable request of the JCC or JMAT, as applicable, or the other Party; and
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3.2.4as of the Effective Date and so long as the Product has obtained Regulatory Approval for only one Disease in the United States, each Party will provide an equal number of Sales Representatives in the United States who will be dedicated solely to the Product and such Disease, and consistent with Section 1.34, “Details” for purposes of this Agreement will include only Primary Position Details; provided, that in connection with the Launch of the Product for a second or subsequent Disease in the United States, the Parties may agree to amend the Agreement to include Secondary Position Details as “Details” hereunder, in which case the Parties shall also review and determine the terms and conditions applicable to Primary Position Details and Secondary Position Details under this Agreement and, if applicable, Sales Representative FTEs, including for example methods to assess performance against key performance indicators.
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3.3Performance of US Activities. Each Party will hire and maintain Sales Representatives and MSLs of sufficient number and expertise to permit such Party to fully perform the activities allocated to it for the United States under this ARTICLE 3, in each case, in accordance with the core job descriptions and time periods set forth in the US Coordination Plan. Compliance with such criteria will be monitored by the JCC with respect to Sales Representatives pursuant to Section 2.4.2(h) and by the JMAT with respect to MSLs pursuant to Section 2.7.2(e). If either Party fails at any time to meet the applicable hiring goals or maintain the agreed level of Sales Representatives and MSLs as set forth in the US Coordination Plan (including a failure to satisfy the criteria set forth in the applicable core job description), it shall, at its own cost and expense, provide a plan to the JCC and/or JMAT, respectively, designed to remedy such failure expeditiously, and then take such actions as are reasonably necessary to cure any such failure as promptly as practicable, such as by offering hiring bonuses or other incentives, [*], as applicable. If any such failure to meet its applicable hiring goals or maintain the agreed level of Sales Representatives and MSLs as set forth in the US Coordination Plan, as applicable, continues without cure for (a) more than [*] days or (b) more than [*] days during the [*] prior to the anticipated first Launch of the Product in the United States, the other Party may, in its sole discretion, elect to assume responsibility for and provide Sales Representatives or MSLs to perform activities allocated to the first Party under the US Coordination Plan, to the extent of such failure. If the first Party disputes whether it failed to satisfy the hiring goals or cure any such failure, it may submit such failure to the JSC for resolution; provided, that the other Party shall be permitted to provide such Sales Representatives and MSLs and perform such activities pending the resolution of any such dispute. If the first Party cures any failure to satisfy such hiring goals or to maintain the agreed level of Sales Representatives and MSLs after the time periods described in clauses (a) or (b) and such cure is confirmed by the JCC or JMAT, as applicable, [*], and the Parties shall [*]. Without limiting the foregoing, the Parties acting through the JCC or JMAT, as applicable, shall mutually consider the [*] set forth in the Combined Major Market Commercialization Plan and Combined Major Market Medical Affairs Plan, as applicable, and agree on [*].
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3.4Size and Deployment of Sales Representatives and MSLs in the United States. Except as otherwise mutually agreed by the Parties through the JSC, the Parties shall engage a mutually agreed independent Third Party consultant with requisite expertise regarding the commercialization of pharmaceutical products and therapies (such as [*]) to: (a) recommend options for [*] for Sales Representatives and MSLs for the Product in the United States and (b) propose options for Sales Representative and MSL FTEs [*] within the United States for the Product in the United States with the goal of equitably sharing responsibilities between the Sales Representatives and MSLs of both Parties consistent with each Party’s respective fifty percent (50%) share of the total Sales Representative and MSL FTEs for the Product in the United States as set forth on Schedule 3.1, in each case of (a) and (b), for the Parties to [*]. The Parties shall engage in such process both initially in anticipation of first Regulatory Approval of the Product in the United States, and additionally in anticipation of each subsequent Regulatory Approval of the Product in the United States for additional Disease(s). The recommendations of such independent Third Party consultant with respect to the [*] of Sales Representative and MSL FTEs in the United States shall be taken [*], which shall make determinations with respect to such [*] Sales Representatives and MSLs pursuant to Section 2.4.2(i) and Section 2.7.2(f), respectively. The recommendations of such independent Third Party consultant with respect to [*] of Sales Representative and MSL FTEs in the United States shall be taken [*] by [*], which shall make a determination with respect to such Sales Representative and MSL FTEs in the United States in its [*] in advance of the anticipated Regulatory Approval of the Product in the United States for a given Disease; provided, that such [*] of Sales Representative and MSL FTEs selected by [*] shall fall within the [*] for Sales Representative and MSL FTEs agreed by [*] or by [*], as applicable.
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3.5US Coordination Plan.
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3.5.1In General. SGI, in collaboration with Genmab as provided in this Section 3.5.1, will prepare a plan describing (a) the sales and marketing plans for the Product in the United States, (b) the activities to be performed by the Parties’ Sales Representatives and MSLs with respect to the Product in or for the United States, (c) a mechanism to ensure that the Parties hire and maintain Sales Representatives and MSLs of sufficient number and expertise to permit the Parties to fully perform the activities allocated to them under this ARTICLE 3, including core job descriptions (e.g., responsibilities, core competencies, experience and other qualifications), a methodology for demonstrating proficiency, time points at which progress against hiring goals will be measured, (d) procedures for monitoring Sales Representatives and MSLs in the United States, and (e) training programs for such Sales Representatives and MSLs (the “US Coordination Plan”). SGI will provide an initial draft of the US Coordination Plan to Genmab for its review and comment for a period of not less than [*] Business Days. Genmab’s representatives on the JCC and JMAT, respectively, will work with SGI’s representatives on such Committees to develop the US Coordination Plan relating to the Commercialization activities (for the JCC) and Medical Affairs Activities (for the JMAT) of the Parties under this ARTICLE 3 with respect to the Product in or for the United States, respectively, and the US Coordination Plan will be subject to JCC and JMAT approval pursuant to Sections 2.4.2(h) and 2.7.2(e), respectively. SGI shall update the initial US Coordination Plan on an annual basis (or more frequently as directed by the JCC). For each such update, Genmab shall have not less than [*] Business Days to review and comment thereon. Such updated US Coordination Plan will be subject to JCC and JMAT approval pursuant to Sections 2.4.2(h) and 2.7.2(e), respectively. The US Coordination Plan will be incorporated into the SGI Major Market Commercialization Plan
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and the SGI Major Market Medical Affairs Plan, as applicable. Accordingly, the US Coordination Plan will be consistent with the Combined Major Market Commercialization Plan and the Combined Major Market Medical Affairs Plan, as applicable, and the strategic matters described therein, and will be reviewed for consistency, and confirmed to be consistent, with the Combined Major Market Plans by the JCC and JMAT, respectively. For clarity, the US Coordination Plan will include a stand-alone budget, and the activities contemplated by the US Coordination Plan will be included in the applicable budgets under the SGI Major Market Commercialization Plan and SGI Major Market Medical Affairs Plan, as applicable.
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3.5.2US Coordination Plan Disputes. Notwithstanding SGI’s role as the Selling Party in the United States and that the United States is a SGI Major Market country, it is agreed and acknowledged that the US Coordination Plan (and any material updates or amendments thereto) shall be subject to review and approval of the JCC and JMAT pursuant to Sections 2.4.2(h) and 2.7.2(e), respectively. However, in the event of any dispute between the Parties regarding the US Coordination Plan that is not a Party Tactical Matter (which is to be resolved pursuant to Section 2.10.6) or a dispute regarding whether the US Coordination Plan is consistent with an applicable Combined Major Market Plan (which is to be resolved pursuant to Section 2.10.5(c)), including any failure despite good faith efforts by the Parties’ representatives on the JCC or JMAT to approve or otherwise reach consensus on any aspect of the US Coordination Plan after the US Coordination Plan is first presented to such Committee, the Parties (through their representatives on the relevant Committee) will endeavor in good faith to amicably resolve the dispute as promptly as practicable, but if such dispute is not resolved within [*] Business Days of the US Coordination Plan first being referred to the JCC or JMAT, as applicable, then such matter (which shall be limited to only that portion of the US Coordination Plan in dispute) will be submitted for resolution to the JSC. Upon request by either Party made during such [*] Business Day period, the Parties’ respective Chief Executive Officers (or their delegates mandated with equivalent decision-making authority) shall during such [*] Business Day period discuss any such matter that is material to either Party or the Collaboration. If the JSC does not resolve such matter within [*] Business Days after the matter is first referred to it, then SGI shall have final decision-making authority over the matter(s) in dispute and the contents of the US Coordination Plan, subject only to consistency of the US Coordination Plan with the Combined Major Market Commercialization Plan and/or the Combined Major Market Medical Affairs Plan, as applicable, as required under Section 3.5.1. For clarity, SGI’s final decision-making authority under this Section 3.5.2 shall be final and is not be subject to dispute resolution under Section 2.10.5 or ARTICLE 16, except to the extent Section 2.10.5(c) applies with respect to consistency of the US Commercialization Plan with the Combined Major Market Commercialization Plan and/or the Combined Major Market Medical Affairs Plan, as applicable. During the pendency of any dispute regarding the US Coordination Plan, all of the terms and conditions of this Agreement will remain in effect and the Parties will continue to perform all of their respective obligations hereunder in good faith and, to the extent practicable, maintain the status quo and operate under the last approved US Coordination Plan (if applicable) until resolution of the relevant dispute or approval of the US Coordination Plan.
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3.6Compliance and Training.
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3.6.1In General. All Genmab US Activities as well as Promotional activities and
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Medical Affairs Activities conducted by SGI in the United States shall be undertaken in accordance with (a) all Applicable Laws and (b) notwithstanding anything contained herein or the Collaboration Agreement to the contrary, the compliance practices, policies and procedures of SGI (as to Genmab, to the extent such practices, policies and procedures are communicated to Genmab or the Genmab US Personnel); provided, however, that neither Party or its personnel will be required to undertake any obligation in connection with such activities to the extent that such Party reasonably believes in good faith that such activities violate or are reasonably likely to violate Applicable Law or such Party’s written policies regarding the promotion of pharmaceutical products (and any such deviations made by a Party shall not be considered a material breach of this Agreement). For the avoidance of doubt, the preceding sentence shall not entitle [*]. Genmab agrees to use Commercially Reasonable Efforts to make available to SGI, upon SGI’s reasonable request, such information regarding the [*] in or for the United States as may be provided in the US Coordination Plan or otherwise reasonably required in order for SGI to Commercialize the Product in the United States and monitor compliance with this Agreement and Applicable Law.
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3.6.2Training. All Genmab US Personnel and SGI personnel performing Promotion and Medical Affairs Activities for the Product in the United States must complete, prior to performing such activities and on an ongoing basis, the applicable mandatory training program(s) developed by SGI and described in the US Coordination Plan. Each Party may conduct such other non-mandatory training for its personnel performing such activities as it determines at its sole cost and expense (i.e., the expenses thereof shall not be included in Allowable Expenses); provided, that Genmab shall permit a representative of SGI to attend such other non-mandatory Product-related training (such attendance of such SGI representative to be at SGI’s sole cost and expense, and not included in Allowable Expenses) and SGI shall permit a representative of Genmab to attend such other non-mandatory Product-related training (such attendance of such Genmab representative to be at Genmab’s sole cost and expense, and not included in Allowable Expenses).
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3.6.3Promotional Materials. In connection with the Genmab US Activities, unless otherwise agreed by the Parties by mutual Party Written Consent, Genmab [*]; provided, that such Promotional Materials shall in all cases be consistent with (a) the core content for Promotional Materials prepared by the JCC and approved by the JSC pursuant to Section 2.4.2(b), (b) the Approved Plans, and (c) the Product labeling approved by the FDA. Without limiting the foregoing, Genmab will have a reasonable opportunity (not less than [*] Business Days) through the Committees or otherwise to [*] (and [*] shall in good faith consider any comments provided by [*]) before such Promotional Materials are finally approved by [*].
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3.7Miscellaneous.
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3.7.1Genmab Diligence. Genmab shall use Commercially Reasonable Efforts to conduct the Genmab US Activities allocated to Genmab US Personnel in the US Coordination Plan, SGI Major Market Commercialization Plan, SGI Major Market Medical Affairs Plan, or otherwise under this Agreement.
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3.7.2Invoicing and Booking of Sales. [*] may not accept [*], and if [*] receives any [*] in or for the United States, it shall refer such [*] for acceptance or rejection.
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3.7.3No Sublicensing or Subcontracting. [*] may not [*] any Genmab US Activities, in whole or in part, to any [*] without [*] prior written consent.
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3.7.4No Other Co-Promotion or Participation Rights. Except as expressly contemplated with respect to the Genmab US Activities under this ARTICLE 3, neither Party will have the right to Promote, co-Promote, or otherwise conduct or participate in Commercialization activities, Medical Affairs Activities, or similar activities with respect to the Product in the other Party’s Party Major Market(s).
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3.7.5Responsibility for Acts and Omission of Personnel. Each Party shall be solely responsible for: (a) the acts and omissions of its Sales Representatives, MSLs, and other personnel while performing any of the activities to be performed by such Party under this Agreement; and (b) all disciplinary, probationary and termination actions taken by it, as well as for the formulation, content, and for the dissemination (including content) of all human resources policies and rules (including written disciplinary, probationary and termination policies) applicable to any members of its personnel. Each Party shall comply with all Applicable Laws in the hiring, employment, and discharge of all members of its personnel.
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3.7.6Employment of Personnel. Each Party acknowledges and agrees that all matters of compensation, benefits and other terms of employment for all personnel of such Party are solely between such Party or its Affiliate and such individual. Each Party shall be solely responsible and liable for the payment of all compensation and benefits to its employees and any other members of its field force, and each Party acknowledges and agrees that neither Party will maintain or procure any worker’s compensation, healthcare, or other insurance for or on behalf of the other Party or its personnel, all of which shall be the sole responsibility of the Party to which such person is employed or engaged. Without limiting the foregoing, a Party shall not be responsible to the other Party, or to any member of the other Party’s field force (or any other personnel), for any compensation, expense reimbursements, benefits, or payroll-related taxes or withholdings that may be imposed upon or be related to the performance by individuals employed or engaged by such other Party, all of which shall be the sole responsibility of the Party to which such person is employed or engaged, even if it is subsequently determined by any court or Governmental Authority that any such individual may be an employee or a common law employee of the other Party or any of its Affiliates, or is otherwise entitled to such payments and benefits.
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3.7.7Non-Compliance by Field Force. In the event that a Party has a reasonable basis for believing (i.e., based on evidence or other reasonable substantiation) that any personnel of the other Party or any of its Affiliates may have violated any Applicable Law or failed to comply with this Agreement or the US Coordination Plan, or is otherwise damaging relationships with any health care professional or health care organization, or the Product brand, in each case, in connection with activities performed by such personnel in the United States pursuant to this Agreement, then such Party shall promptly notify the other Party in writing of such belief and the basis therefor. Following such notification and a reasonable opportunity to investigate the relevant facts, the Parties shall meet to discuss such belief and basis. The notified Party shall take such actions as are reasonable under the circumstances in response to the notifying Party’s justified concerns, including, if necessary, excluding such individual from Product-related activities. For
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clarity, the foregoing shall not limit any rights or remedies of a Party hereunder.
		3.7.8
	Termination of U.S. Rights.

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(a)Genmab may terminate its rights and activities with respect to the Product in the United States under this ARTICLE 3 by providing SGI at least [*] prior written notice. Any such termination shall be with respect to Genmab’s rights under this ARTICLE 3 in their entirety.
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(b)In the event that Genmab exercises its right to terminate its activities with respect to the Product in the United States under Section 3.7.8(a), Genmab shall promptly (and in any event within [*] of such termination) wind down, discontinue and terminate all activities undertaken or to be undertaken, directly or indirectly, by Genmab, its Affiliates, or Genmab US Personnel with respect to the Product in the United States, in each case, in an orderly manner consistent with Applicable Law. Without limiting the foregoing, the Parties will discuss in good faith and endeavor to agree on a transition plan for such wind down and termination through the JCC and JSC, such agreement not to be unreasonably withheld, conditioned, or delayed. Without limiting any rights of SGI contemplated by this ARTICLE 3, following any termination of Genmab’s rights under this Section 3.7.8(b), SGI shall have no further obligations under this ARTICLE 3, including any obligation to prepare a US Coordination Plan. For clarity, after any such termination of Genmab’s rights under this Section 3.7.8(b), the Parties’ rights and obligations with respect to the Product in the United States will be consistent with their rights and obligations with respect to the Product in any other SGI Major Market.
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ARTICLE 4
COMMERCIALIZATION; FURTHER DEVELOPMENT
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4.1Commercialization in Major Markets Generally. Subject to the terms and conditions of this Agreement, including Genmab’s rights with respect to the United States under ARTICLE 3, (a) SGI shall have the sole and exclusive right to Commercialize the Product in the SGI Major Markets or any portion thereof consistent with an annual Commercialization plan and budget for the SGI Major Markets prepared by SGI in accordance with Section 4.3.1 (such plan and budget, collectively, the “SGI Major Market Commercialization Plan”), and (b) Genmab shall have the sole and exclusive right to Commercialize the Product in the Genmab Major Market or any portion thereof consistent with an annual Commercialization plan and budget for the Genmab Major Market prepared by Genmab in accordance with Section 4.3.1 (such plan and budget, collectively, the “Genmab Major Market Commercialization Plan”); provided, in each case ((a) and (b)), that such Party Major Market Commercialization Plans shall be consistent with the annual Combined Major Market Commercialization Plan, including the corresponding budget therein, prepared by the Parties and approved by the JSC in accordance with Section 4.2 (such plan and budget, collectively, the “Combined Major Market Commercialization Plan”). In the event of (i) any inconsistency between the Combined Major Market Commercialization Plan and this Agreement, the terms of this Agreement shall prevail, and (ii) any inconsistency between a Party Major Market Commercialization Plan and the Combined Major Market Commercialization Plan, the terms of the Combined Major Market Commercialization Plan shall prevail.
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4.2Combined Major Market Commercialization Plan.
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4.2.1Generally. The Combined Major Market Commercialization Plan will set forth the Parties’ mutually agreed: (a) Commercialization strategy and resourcing plans with respect to the Product (including with respect to strategic imperatives, branding, positioning, campaign and messaging platforms) in the Major Markets; (b) anticipated performance obligations and funding requirements for the Commercialization of the Product in the Major Markets; (c) target pricing bands for the Product both globally and regionally (with relevant regions recommended by the JCC) in the Territory; (d) reimbursement strategy for the Product in the Major Markets; (e) global Launch plan and Launch sequence for the Product in the Territory; (f) budget for activities contemplated by the Combined Major Market Commercialization Plan, including anticipated Sales Representatives and other personnel conducting Commercialization activities for the Product; (g) an agreed range for the aggregate number of Sales Representatives expected to be deployed in the Major Markets either by country or region as reasonably determined by the JCC; (h) key performance indicators either by country or region, as reasonably determined by the JCC, that the Parties shall implement, and that shall apply to the activities of the Sales Representatives of each Party in the Major Markets to monitor and assess Product performance, such as sales, attitudes, trial and usage market research, vial volume, and, to the extent such information is reasonably available, total prescriptions, new patient starts, sales, first claim fill rates, and prescription duration, and (i) [*] forecasts and projections for an additional [*] for such topics included in the Combined Major Market Commercialization Plan; in each case of (a)-(i), for the Major Markets except as otherwise indicated. The topics included in the Combined Major Market Commercialization Plan will be presented both on a global basis across all Major Markets and on a regional or Major Market-by-Major Market basis as reasonably determined by the JCC. For the avoidance of doubt, the Combined Major Market Commercialization Plan will contain detailed strategic plans and, where applicable, budgets for the elements set forth in clauses (a)-(i) above for each region or Major Market as determined by the JCC, and each Party’s Party Major Market Commercialization Plan will be consistent with the overall plan and budget for each of the relevant region(s) or Major Market(s) contained in the Combined Major Market Commercialization Plan. The Combined Major Market Commercialization Plan and each amendment or annual update thereto shall reflect each Party’s good faith estimate of its anticipated Commercialization commitments for each of the relevant region(s) or Major Market(s).
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4.2.2Initial Combined Major Market Commercialization Plan and Annual Updates. The Parties shall jointly prepare an initial draft of the Combined Major Market Commercialization Plan which shall be submitted to the JCC for review and approval at least [*] prior to the first anticipated Launch of the Product in a Major Market (as such date is determined by the JDC) and cover such period (including forecasts and projections) as determined by the JCC. Once agreed by the JCC, the JCC shall recommend the Combined Major Market Commercialization Plan to the JSC for approval. The Combined Major Market Commercialization Plan shall be updated at least [*], and all updates and amendments shall be reviewed and approved by the JCC and then submitted to the JSC for approval. The Parties shall agree on a timeline for conducting all such reviews and approvals that accommodates the Parties’ respective planning and budgeting purposes and allows for necessary or reasonably useful coordination between the Committees.
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4.3Commercialization by each Party in its Party Major Market(s).
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4.3.1Generally. Subject to the terms and conditions of this Agreement, including Genmab’s rights in the United States under ARTICLE 3, each Party (itself or through its Affiliates or (sub)licensees as otherwise permitted herein) shall have the right to Commercialize the Product in its Party Major Market(s) or any portion thereof, including by performing activities for such Party Major Market(s) as follows: (a) preparing Promotional Materials for use in its Party Major Market(s) (provided, that such materials are consistent with the core content approved by the JSC), (b) preparing training materials and training programs for personnel engaged in such Commercialization activities, and implementing such training, and (c) making decisions with respect to its Party Tactical Matters in connection with such Commercialization activities; provided, that, in each case ((a) through (c)), such activities shall be consistent with the Party Major Market Commercialization Plan, Combined Major Market Commercialization Plan, and US Coordination Plan, including the tactical and strategic matters described in such plans, and otherwise conducted in accordance with this Agreement (including ARTICLE 3 with respect to the United States).
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4.3.2Party Major Market Commercialization Plans.   Each Party will prepare a Party Major Market Commercialization Plan for its respective Party Major Market(s) that is consistent with the Combined Major Market Commercialization Plan, which Party Major Market Commercialization Plan covers the same time period addressed by such Combined Major Market Commercialization Plan. The Genmab Major Market Commercialization Plan and the SGI Major Market Commercialization Plan will each describe the plan for Commercialization of the Product in the applicable Party Major Market(s), specify in reasonable detail the Commercialization activities to be performed by or on behalf of the applicable Party for the Product in the applicable Party Major Market(s), and include a budget for such Party’s Commercialization activities to be conducted in its Party Major Market(s). In addition, the SGI Major Market Commercialization Plan will incorporate the Commercialization activities set forth in the US Coordination Plan. Each Party shall prepare its own Party Major Market Commercialization Plan and provide it to the JCC, which shall review such plans for consistency with the Combined Major Market Commercialization Plan (subject to Section 2.10.5(c)). The initial draft of each Party Major Market Commercialization Plan shall be submitted to the JCC within [*] after submission to the JSC of the initial draft of the Combined Major Market Commercialization Plan by the JCC in accordance with Section 4.2.2. The Party Major Market Commercialization Plans shall be updated at least annually, and all updates and amendments shall be reviewed and approved by the JCC for consistency with the Combined Major Market Commercialization Plan (subject to Section 2.10.5(c)). The Parties shall agree on a timeline for conducting all such reviews and approvals that accommodates the Parties’ respective planning and budgeting purposes and allows for necessary or reasonably useful coordination between the Committees. Each Party Major Market Commercialization Plan shall include with respect to the Product and the relevant Party’s Party Major Market(s), as applicable and as consistent with the Combined Major Market Commercialization Plan:
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(a)an executive summary;
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(b)an overview of tactical planning, consistent with the Global Brand Strategy and the Combined Major Market Commercialization Plan, for the Promoting, Detailing and Commercialization of the Product for each relevant indication;
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(c)an overview of plans for the number, structure and deployment of Sales Representatives and other personnel conducting Commercialization activities for the Product by geography, target audience, activities, or other relevant criteria;
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(d)an overview of (i) market research plans and market assessments and (ii) general plans for the marketing, Promotion and sale of the Product, with appropriate input as to financial matters from the JFT;
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(e)a market, unit sales, and Net Sales forecast (provided, for clarity, that the Parties are not required to mutually agree on a Net Sales forecast or a Net Profit/Net Loss forecast, but, if relevant, they will cooperate with respect to preparing such forecasts in accordance with Section 5.1.2(d));
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(f)an overview of pricing and discounting strategies for the applicable Party Major Market(s) consistent with Section 2.4.2(c); and
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(g)key performance indicators to monitor and assess Product performance consistent with the key performance indicators set forth in the Combined Major Market Commercialization Plan.
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4.3.3Commercialization Diligence in the Major Markets. Following the receipt of relevant Regulatory Approvals in relevant country(ies), each Party shall use Commercially Reasonable Efforts to Commercialize the Product in its Party Major Market(s) in accordance with and to the extent provided in the Combined Major Market Commercialization Plan, the applicable Party Major Market Commercialization Plan, and otherwise in accordance with this Agreement.
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4.3.4Sales Efforts Reporting for the Party Major Market(s). Within [*] after the end of each Year beginning in the Year in which the first Regulatory Approval of the Product in a Party’s Party Major Market(s) is obtained, each Party shall provide a high-level report to the JCC summarizing its selling efforts for the Product where the Product receives a primary or secondary ranking in its Party Major Market(s).
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4.3.5Packaging and Labeling; Booking of Sales; Distribution in the Major Markets. In its Party Major Market(s), the Selling Party (a) will hold title to the Product inventories until such inventory is sold to customers, (b) shall effect all sales of Product and shall be responsible for invoicing all sales of Product and shall book all sales of Product for its own account, and (c) shall be responsible for all Packaging and Labeling and Sales and Distribution activities for the Product. Notwithstanding the foregoing, to the extent not prohibited by Applicable Law and subject to approval by the applicable Regulatory Authorities, unless the Parties otherwise agree by mutual Party Written Consent, all product labels for the Product worldwide shall include, in equal prominence, the [*].
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4.4Commercialization in the Royalty Territory. Following the receipt of relevant Regulatory Approvals in relevant country(ies), SGI shall use Commercially Reasonable Efforts to Commercialize the Product in [*], as determined by SGI in its reasonable discretion consistent with its obligation to use Commercially Reasonable Efforts to Commercialize the Product in the Royalty Territory, in accordance with the terms and conditions of this Agreement, and except as otherwise provided in this Agreement shall be solely responsible for all costs and expenses incurred by or on behalf of SGI or any of its Affiliates for Commercializing the Product in the Royalty Territory or any portion thereof. For the avoidance of doubt, SGI may satisfy its obligations under this Section 4.4 by using Commercially Reasonable Efforts to enter into (or entering into) one or more Commercial Sublicenses with respect to one or more countries in the Royalty Territory.
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4.5Recalls and Withdrawals. The initiation and implementation of a Product distribution hold, recall, clinical hold, market withdrawal, or similar action in the Territory will be determined in accordance with the relevant clinical or commercial quality agreement agreed to by the Parties in accordance with Section 6.3 (including the process for consultation and, if possible, reaching consensus set forth therein); provided, that the Lead Regulatory Party shall have final decision-making authority, after consultation with the other Party with respect to the initiation and conduct of any such hold, recall, withdrawal, or similar action in a particular country if there is a dispute between the Parties with respect thereto (unless there is a mandatory hold, recall, withdrawal, or similar action by the Regulatory Authorities, which shall supersede any decision of the Lead Regulatory Party to the contrary). The costs of implementing any such hold, recall, withdrawal, or action in accordance with this Section 4.5 in the Major Markets shall constitute Commercialization Costs except to the extent that such hold, recall, withdrawal, or action is (a) attributable to (i) a breach by a Party or its Affiliates of this Agreement or (ii) the gross negligence, recklessness or willful misconduct of a Party or its Affiliates, or (b) caused by or results directly from a material uncured breach by a Party or its Affiliates of any agreement with a Third Party CMO engaged by such Party or its Affiliate for the Manufacture of Product if such material breach is acknowledged by such Party in writing, results from a failure by the Manufacturing Party to make any undisputed payment when due (after giving effect to any available cure period) or is finally determined by a court or arbitrator of competent jurisdiction; provided, that the foregoing clause (b) shall not apply to any such material breach that is caused by or results directly from an act or omission of a Third Party including any other Third Party CMO that Manufactures the Product on the Party’s behalf. Any such costs not included in Commercialization Costs pursuant to the preceding sentence shall be borne solely by the applicable Party.
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4.6Development Activities.
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4.6.1In General. Except as otherwise expressly provided in this Agreement, including Sections 2.3, 4.6.2 and 8.1.2, Development of the Product in the Territory following the Effective Date will continue to be conducted in accordance with the terms and conditions of the Collaboration Agreement.
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4.6.2Clinical Trials. Notwithstanding anything to the contrary contained in the
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Collaboration Agreement or the Joint Development Plan as of the Effective Date, following the Effective Date: (a) Genmab shall be the sponsor of and solely conduct and be responsible for the performance of (i) the Clinical Trials known as [*], (ii) to the extent such studies are included in the Global Development Plan, any Phase III-B Studies or Phase IV Studies conducted in the Genmab Major Market, (iii) any Genmab Party Combination Studies to be conducted by or on behalf of Genmab, to the extent such studies are included in the Global Development Plan (such Global Development Plan to also set forth the details regarding Clinical Supply and data sharing with respect to such Genmab Party Combination Studies), and (iv) any Genmab [*] Approval Trial initiated by Genmab in accordance with Section 0; and (b) SGI shall be the sponsor of and solely conduct and be responsible for the performance of any other Clinical Trials of the Product which are not specified in clause (a) above, including (1) the Clinical Trials known as [*], (2) any other Clinical Trials for the Product to be conducted for [*], (3) any Phase III-B or Phase IV Studies, (4) any SGI Party Combination Studies to be conducted by or on behalf of SGI, to the extent such studies are included in the Global Development Plan (such Global Development Plan to also set forth the details regarding Clinical Supply and data sharing with respect to such SGI Party Combination Studies), and (5) any Clinical Trial regarding the Product and any other product owned or otherwise controlled by a Third Party, to the extent such studies are included in the Global Development Plan. For clarity, the foregoing is intended to establish which Party will have operational control over relevant Clinical Trials following the Effective Date, but it is not intended to prevent the other Party from performing Medical Affairs Activities, including through outreach and contacts with Clinical Trial sites, in its Party Major Market(s) to the extent otherwise permitted under this Agreement.
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Development in [*]. It is the expectation of the Parties that Clinical Trials for the Product conducted by SGI as sponsor in accordance with Section 4.6.2 will include an adequate patient population from [*] to support Regulatory Approval of the Product in [*] for the Disease(s) for which such Clinical Trials are intended to treat. However, to the extent that it is not reasonably practicable for such Clinical Trials to include an adequate patient population from [*] to support such Regulatory Approval of the Product in [*], the Parties, acting through the JDC, will promptly amend the Global Development Plan to add such Clinical Trial(s) to be conducted in [*] with an adequate patient population from [*] to support such Regulatory Approval in [*] (any such Clinical Trial, a “Genmab [*] Approval Trial”), and Genmab shall be the sponsor of and solely conduct and be responsible for the performance of any such Genmab [*] Approval Trial. For the avoidance of doubt, the FTE Costs of Genmab’s personnel and Out of Pocket Costs incurred by Genmab in connection with the planning and conduct of any Genmab [*] Approval Trial, including Manufacturing Costs for Clinical Supply and any comparator or placebo therefor, shall be considered Development Costs hereunder.
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4.6.3Development in the Royalty Territory. SGI shall use Commercially Reasonable Efforts to Develop the Product in the Royalty Territory, as determined by SGI in its reasonable discretion consistent with its obligation to use Commercially Reasonable Efforts to Develop the Product in the Royalty Territory, in accordance with and to the extent provided from time to time in the mutually agreed Global Development Plan (including any amendments or modifications to the Global Development Plan with respect to the Royalty Territory proposed by SGI consistent with its obligation to use Commercially Reasonable Efforts). For clarity, if Genmab or its representatives on any Committee refuse to approve any such amendment or modification to the Global Development Plan with respect to the Royalty Territory, SGI shall not be deemed to
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have failed to use [*].
4.6.4Development Costs. Development Costs incurred by the Parties in connection with Development activities conducted for the Product under this Agreement (including [*]) in accordance with the Global Development Plan shall be shared as Net Profit/Net Loss in accordance with Section 5.1 and the other applicable terms and conditions of this Agreement. For clarity, any Development activities conducted by or on behalf of SGI or its Affiliates or their Sublicensees for countries in the Royalty Territory that are not included in the Global Development Plan shall be at SGI’s sole cost and expense, and shall not be shared as Net Profit/Net Loss hereunder.
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4.7Subcontracting and Sublicensing.
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4.7.1Subcontracting. Each Party may perform some or all of its obligations (a) under the Global Development Plan (including the Global Regulatory Plan), Global Manufacturing Plan and Party Major Market Commercialization Plan or (b) otherwise under this Agreement for the Product in its Party Major Market(s) (or with respect to Genmab and the Genmab US Activities, in the United States subject to ARTICLE 3), in each case ((a) and (b)), solely through one or more Approved Subcontractors or as otherwise approved by the JSC; provided, that (i) none of the rights of the other Party shall be diminished or otherwise adversely affected as a result of such subcontracting, (ii) nothing in this Section 4.7.1 shall limit a requirement to obtain Party Written Consent or Joint Committee Consent for Third Party Manufacturing under ARTICLE 6, (iii) each subcontractor shall undertake in writing obligations of confidentiality and non-use regarding each Party’s Confidential Information which are substantially the same as those undertaken by the Parties hereunder, and (iv) the subcontracting Party shall be responsible for the performance by such subcontractor of such Party’s obligations hereunder. For clarity, the Parties and their Affiliates may enter into arrangements with (X) nationally recognized shipping or transportation companies such as United Parcel Service or FedEx or (Y) with contract research organizations with respect to non-clinical Development, in each case of (X) and (Y), with respect to the Product or their obligations under this Agreement without the prior Committee approval and, solely with respect to (X), such arrangements shall be excluded from the requirements of clause (ii) above. Notwithstanding the foregoing or anything to the contrary contained in this Agreement or the Collaboration Agreement, SGI may engage subcontractors to perform Development, Manufacturing, or Commercialization activities with respect to the Product in the Royalty Territory or outside the Royalty Territory solely to support Development or Commercialization of the Product in the Royalty Territory without the prior written consent of Genmab or any Committee, provided that subsections (i)-(iii) above shall continue to apply.
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4.7.2Sublicensing. This Section 4.7.2 supersedes Section 5.11 of the Collaboration Agreement with respect to the grant by either Party of a Commercial Sublicense for the Product to a Third Party. In addition, to the extent any sublicense permitted under this Agreement would require the grant of a sublicense under the Collaboration Agreement with respect to the Product, the Parties agree to grant that sublicense with respect to the Product notwithstanding anything to the contrary in the Collaboration Agreement.
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(a)In General. Except as expressly provided in this Section 4.7.2,
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neither Party shall grant any [*] with respect to their [*] to any Third Party without the consent of the JSC, such consent not to be unreasonably withheld, delayed, or conditioned.
(b)Service Providers. Subject to Section 4.7.2(a), each Party may sublicense its rights and obligations under this Agreement and the Collaboration Agreement to a subcontractor permitted under Section 4.7.1 to the extent necessary to enable such subcontractor to perform its obligations to the subcontracting Party.
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(c)Third Party Sublicensing. With respect to the grant by a Party or its Affiliate to a Third Party sublicensee that includes the right to Commercialize the Product, but not including any wholesaler, distributor, or the like (such sublicensee, a “Sublicensee,” and such sublicense, a “Commercial Sublicense”):
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(i)In the [*] Markets. If a Party desires to grant a Commercial Sublicense in countries or territories that include one or more of its Party [*] Market(s), such Party shall notify the other Party in writing thereof. Thereafter, the Parties, through the JSC, shall discuss the strategy, timing, and other considerations relating to finding an appropriate Sublicensee for such [*] Market Sublicense. If the JSC agrees to pursue a Sublicensee to Commercialize Product in such [*] Market, then (i) each Party shall take the [*] Market Sublicense that includes solely the Party [*] Market(s) of such Party, and (ii) if such [*] Market Sublicense would involve the grant of rights in or for the Party [*] Market(s) of both Parties, the JSC shall determine which Party [*]. The [*] Party shall provide the other Party [*] without the approval of the JSC, such approval not to be unreasonably withheld, delayed, or conditioned.
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(ii)In the Royalty Territory. SGI may grant a Commercial Sublicense in or for countries or territories solely within the Royalty Territory in its sole discretion; provided, that, without limiting the foregoing, SGI will first notify Genmab and upon a written request by Genmab within [*] of SGI’s notice, SGI shall reasonably consider [*]. For the avoidance of doubt, (A) Product sales by any such Sublicensee in the Royalty Territory shall be considered Net Sales to the extent provided in the definition of “Net Sales” hereunder, (B) Product sales to any Third Party distributor, wholesaler, or the like in or for the Royalty Territory shall be considered Net Sales to the extent provided in the definition of “Net Sales” hereunder, and (C) any other consideration paid to SGI or any of its Affiliates by or on behalf of any such Sublicensee or distributer, wholesaler, or the like shall be retained by SGI and shall not be considered “Sublicensing Revenue” hereunder.
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(d)[*] Sublicensing. Without limiting subsection (c)(i) above, the Parties acknowledge that prior to the Effective Date, [*] initiated a business development process with respect to the potential out-license of rights to Commercialize the Product in [*] (the “Process”). Subject to subsection (c)(i) above, [*] shall transition the Process to [*] following the Effective Date, and [*] may continue the Process or otherwise pursue a Commercial Sublicense with respect to [*] in accordance with subsection (c)(i) above.
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ARTICLE 5 
FINANCIAL TERMS
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The Parties shall make or cause to be made the payments provided for in this ARTICLE 5.
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For clarity, this ARTICLE 5 supersedes Sections 11.4, 11.5, 11.6, and Article 12 of the Collaboration Agreement with respect to activities conducted after the Effective Date with respect to the Product.
5.1Profit Sharing in the Major Markets. Following the Effective Date, the terms and conditions of this Section 5.1 shall govern the rights and obligations of Genmab and SGI with respect to Net Profit/Net Loss relating to the Product.
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5.1.1Share of Net Profits/Net Losses. Subject to the terms of this Agreement and Section 5.10 of the Collaboration Agreement, for so long as Product is being sold in the Major Markets or Sublicensing Revenue is being generated, Genmab and SGI shall share all Net Profit/Net Loss (as applicable) for the Product on the basis of fifty percent (50%) to SGI and fifty percent (50%) to Genmab.
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5.1.2Calculation and Payment.
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(a)Within [*] days after the end of each Quarter beginning with the first Quarter in which either Development Costs or Allowable Expenses are incurred, each Party shall report to the JFT its Net Sales and Sublicensing Revenue in the Major Markets, as well as its Allowable Expenses and Development Costs. Each such report shall, as applicable, specify in reasonable detail all deductions allowed in the calculation of such Net Sales, documentation supporting its receipts of such Sublicensing Revenue, and all expenses or costs included in Allowable Expenses or Development Costs, and, if requested by Genmab or SGI, any invoices or other supporting documentation for any payments to a Third Party that constitute Allowable Expenses or Development Costs and that individually exceed [*] or with respect to which documentation is otherwise reasonably requested shall be promptly provided. In addition, each such report shall specify the amount of gross sales of Product for the Quarter and the amount offset from gross sales to Net Sales by category for the Quarter. Within [*] Business Days after receipt of such reports, the JFT shall confer and agree in writing on a consolidated financial statement setting forth the Net Profit/Net Loss for such Quarter for the Product and calculating each Party’s share of such Net Profit/Net Loss.
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(b)Within [*] Business Days after the Parties (through the JFT) have reconciled the reports delivered under Section 5.1.2(a) for each Quarter, the Party who will receive payment shall issue to the other Party an invoice for the agreed amount and the other Party shall, within [*] Business Days of such invoice, make a payment to SGI or Genmab, as applicable, so that each of Genmab and SGI has been compensated for its respective share or has borne its respective share of such Net Profit/Net Loss, as applicable, after giving effect to the (i) Net Sales invoiced and Sublicensing Revenue received for the Major Markets as well as Allowable Expenses and Development Costs incurred by SGI, and (ii) Net Sales invoiced and Sublicensing Revenue received for the Major Markets, as well as Allowable Expenses and Development Costs incurred by Genmab, to effect the intent of Section 5.1.1; provided, however, that in the event of any disagreement with respect to the calculation of such payment, any undisputed portion of such payment shall be paid in accordance with the foregoing timetable and the remaining, disputed portion shall be paid within [*] Business Days after the date on which Genmab and SGI, using good faith efforts, resolve the dispute or such dispute is resolved pursuant to a dispute resolution mechanism under this Agreement.
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(c)In addition, for planning purposes, each Party shall report to the other Party and the JFT within [*] Business Days after the end of each calendar month following the first Launch of the Product in its Party Major Market(s) its estimated Net Sales (including the estimated amount of gross sales of Product by stock keeping units of Product) in its Party Major Market(s) in such month and its estimated Allowable Expenses in such month. Further, each Party shall consider in good faith other reasonable procedures proposed by the other Party for sharing financial information in order to permit each Party to close its books periodically in a timely manner.
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(d)If either Party intends to include a Net Sales forecast or a Net Profit/Net Loss forecast in any public filings or public statements in connection with its required financial reporting to any Securities Exchange, the Parties agree to cooperate in good faith to prepare Net Sales or Net Profit/Net Loss forecasts reasonably in advance of such filing or public statement; provided, that if the Parties are unable to agree to such forecasts in advance of such filing or public statement, the filing Party shall be permitted to use its good faith Net Sales or Net Profit/Net Loss forecasts in such filing or public statement.
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(e)For the avoidance of doubt, no cost or expense shall be counted more than once in calculating Allowable Expenses or Development Costs, even if such cost or expense falls into more than one of the cost categories that comprise Allowable Expenses or Development Costs. For purposes of determining Allowable Expenses, Development Costs and Net Profit/Net Loss, each Party shall be required to record for relevant employees aggregate FTE hours worked or FTE hours worked on activities related to the Product (subject to Section 1.49) and all such allowed FTE Costs shall be charged based on the percentage of time allocated to the Product and activities under this Agreement (or as otherwise set forth in Section 1.49). Out of Pocket Costs will be charged based on actual expenses incurred or accrued.
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5.1.3Consistency with Accounting Treatment. All calculations of Net Profit/Net Loss hereunder shall be made in accordance with Collaboration Accounting Standards, including the provisions thereof regarding expense recognition, as applied by Genmab and SGI consistently with their application in their respective external financial reporting.
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5.1.4Integrity of Profit Sharing in the Major Markets.
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(a)The Parties recognize that in certain regions, restrictions on cross- border sales of the Product are not permitted, and that in such regions (e.g., within the EU), sales of units of the Product intended to be sold in a Major Market and therefore subject to payment obligations under Section 5.1 may instead be sold in a country that is in the Royalty Territory instead, and initially included in amounts subject to royalty obligations under Section 5.2. In such case, the Parties have agreed to perform an annual assessment of whether their intended allocation of economic benefit as set forth in Sections 5.1 and 5.2 has been effected and, if not, to make reconciling payments between the Parties to effectuate their intent as set forth in Sections 5.1 and 5.2, pursuant to the mechanism set forth in this Section 5.1.4.
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(b)Within [*] days after the end of the Quarter in which the first Launch of the Product in a Major Market occurs, and within [*] days after the end of each Quarter
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thereafter, the Parties, through the JCC and in coordination with the JFT, shall review for such Quarter that most recently ended (“Relevant Review Period”) the following information: (A) the total amount of Net Sales allocated to the Major Markets for the purpose of calculating the Net Profit/Net Loss for the Major Markets in accordance with this Section 5.1, (B) the total amount of Net Sales allocated to the Royalty Territory for the purpose of calculating the total royalties due by SGI to Genmab in accordance with Section 5.1.4, (C) the estimated amount of total prescriptions issued for the Product in the Major Markets, in accordance with data obtained from IQVIA or another source mutually acceptable to the Parties, and (D) the estimated amount of total prescriptions issued for the Product in the Royalty Territory, in accordance with data obtained from IQVIA or another source mutually acceptable to the Parties, in each case of (A)-(D), during the Relevant Review Period. To the extent that the fraction A/B is less than or greater than the fraction C/D, then the JCC, in coordination with the JFT shall determine reconciling payments to be made between the Parties with respect to the Relevant Review Period as necessary to effectuate their intended allocation of the economic benefit as set forth in such Sections (a “Reconciling Payment Determination”). Any such reconciling payments shall be made within [*] days after the JFT has made a Reconciling Payment Determination.
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5.2Royalty Territory.
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5.2.1Royalty Payments. Subject to Sections 5.2.2 and 5.2.3, during each Quarter in which such Net Sales are received, SGI shall pay Genmab a running royalty on aggregate annual Net Sales of the Product in the Royalty Territory by SGI, its Affiliates and their Sublicensees at the following percentages as set forth in the table below:
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	Portion of aggregate annual Net Sales of the Product in the Royalty Territory by SGI, its Affiliates, and their Sublicensees
	Percentage of such Net Sales to be paid as a running royalty:

	[*]
	[*]

	[*]
	[*]

	[*]
	[*]

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5.2.2Biosimilar Step-Down. If, on a country-by-country basis within the Royalty Territory, one or more Biosimilar Products in respect of the Product are sold in such country, and if sales of all Biosimilar Products in respect of the Product combined in such country during any [*] are greater than [*] (on a unit basis) of the combined sales of all such Biosimilar Products and the Product together (on a unit basis) in such country (the “Trigger Condition”), then the royalties payable with respect to Net Sales of the Product pursuant to Section 5.2.1 in such country starting with [*] giving rise to the Trigger Condition shall be reduced to [*] of the royalties otherwise payable pursuant to Section 5.2.1; provided, that if the Trigger Condition ceases to apply in a future Quarter, after royalties are subject to reduction pursuant to this Section 5.2.2, such reduction in royalties shall cease to apply effective as of the subsequent Quarter unless and until the Trigger Condition occurs again for the Product in such country.
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5.2.3Royalty Term. SGI’s obligation to pay royalties under this Section 5.2 with respect to the Product in each country in the Royalty Territory will commence upon Launch of the Product in such country and will continue until the later of (i) expiration of the last-to-expire [*] of the [*] covering Program Inventions claiming or covering the Product in such country or (ii) [*] after such Launch of the Product in such country (such period, the “Royalty Term”); provided, however, that if the Product is royalty-bearing in a given country only pursuant to clause (ii) above, then the each royalty rate set forth in Section 5.2.1 shall be reduced by [*] for such country for the remainder of the Royalty Term and; provided, further, that in no event shall the royalty rates set forth in Section 5.2.1 be reduced pursuant to Section 5.2.2 and this Section 5.2.3 by more than [*], in the aggregate.
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5.2.4Royalty Payments and Reports. Within [*] days after the end of each March, June, September and December during which royalties under this Section 5.2 are due, SGI shall deliver to Genmab a report setting forth on a country-by-country basis the unit volume and amount of gross sales of Product sold by SGI its Affiliates and their Sublicensees in the Royalty Territory during the applicable Quarter, a calculation of such Net Sales in the Royalty Territory showing the aggregate deductions from gross sales provided for in the definition of Net Sales during such Quarter, and a calculation of the royalty payment due for such Quarter. All royalty amounts payable to Genmab pursuant to this Section 5.2.4 shall be paid to Genmab in Dollars in connection with the delivery of such report, but not later than [*] days after the end of each Quarter.
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5.3Taxes.
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5.3.1Taxes on Income. Except as otherwise provided in this Section 5.3 or Schedule 5.3.4, each Party shall be solely responsible for the payment of all taxes imposed on its share of income arising directly or indirectly under this Agreement.
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5.3.2Tax Cooperation. The Parties agree to cooperate with one another and use reasonable efforts to reduce or eliminate tax withholding, Indirect Taxes, or similar obligations in respect of Net Profit, royalties and other payments made by one Party to the other under this Agreement. Without limiting the generality of the foregoing, to the extent that a Party (or its assignee) (the “Paying Party”) is required by Applicable Law to deduct and withhold taxes on any payment due to the other Party (or its assignee) (the “Payee Party”) under this Agreement, the Paying Party shall provide [*] Business Days’ notice of such intention to withhold to the Payee Party, and the Payee Party shall provide the Paying Party any tax forms and other information that may be reasonably necessary in order not to withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty. The Payee Party shall provide any such tax forms to the Paying Party at least [*] Business Days prior to the due date for any payment for which the Payee Party desires that the Paying Party apply a reduced withholding rate.
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All payments payable under this Agreement are exclusive of Indirect Taxes. If any Indirect Taxes are chargeable in respect of any payments made under this Agreement, the Paying Party shall pay such Indirect Taxes at the applicable rate in respect of such payments following receipt, where applicable, of an Indirect Taxes invoice in the appropriate form issued by the Payee Party in respect of those payments.
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Each Party shall provide the other with reasonable assistance to enable the recovery,
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as permitted by Applicable Law, of withholding taxes, Indirect Taxes, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the Party bearing such withholding tax or Indirect Tax. For clarity, if such withholding taxes, Indirect Taxes, or similar obligations have been shared equally by the Parties as an Allowable Expense, the Parties shall share equally in the amount of such recovery.
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5.3.3Payment of Tax.
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(a)To the extent that a Paying Party is required by Applicable Law to deduct and withhold taxes on any payment due to the Payee Party under this Agreement or allocation of Net Profits/Net Losses under this Agreement, such Paying Party shall pay the amounts of such taxes to the proper Governmental Authority in a timely manner and promptly transmit to the Payee Party evidence of such withholding in the form customarily provided by the applicable Governmental Authority to enable the Payee Party to claim such payment of taxes. Any taxes that are so deducted and withheld shall be treated as paid to the Payee Party hereunder. If the Paying Party failed to deduct or withhold tax required by Applicable Law, the Payee Party shall [*]. In the event that a liability for withholding taxes is imposed or asserted by a Governmental Authority upon the Paying Party in respect of a failure to withhold such taxes from or in respect of any amount payable to a Payee Party under this Agreement (a “Withholding Tax Claim”), (1) the Paying Party shall notify the Payee Party promptly upon the receipt of any such Withholding Tax Claim from a Governmental Authority which might give rise to an indemnification under this Section 5.3.3 (although the Paying Party’s delay in promptly notifying the Payee Party shall only reduce the Payee Party’s liability to indemnify the Paying Party to the extent that the Payee Party is actually prejudiced by such delay); (2) the Payee Party shall be entitled to participate, at its own expense, and with counsel of its choosing, in the defense of any such Withholding Tax Claim which may give rise to liability under this Section 5.3.3(a); (3) the Paying Party may not settle the Withholding Tax Claim with a Governmental Authority, to the extent such settlement would create a liability for the Payee Party under this Section 5.3.3(a), without the prior written consent of the Payee Party, which consent shall not be unreasonably withheld, conditioned or delayed; and (4) the Payee Party shall indemnify the Paying Party for any reasonable out-of-pocket expenses incurred by the Paying Party in the defense of the Withholding Tax Claim; provided, further, that the foregoing indemnification obligation shall not apply to the extent that if the Paying Party had withheld such taxes, it would have been required to increase such amount payable under Section 5.3.3(b).
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(b)Notwithstanding the foregoing, if (a) any Party redomiciles or assigns its rights or obligations under this Agreement, (b) as a result of such redomiciliation or assignment, such Party (or its assignee) is required by Applicable Law to withhold taxes, or such redomiciliation or assignment results in the imposition of Indirect Taxes that were not otherwise applicable, from or in respect of any amount payable from such Party to the other Party under this Agreement, and (c) such withholding taxes or Indirect Taxes exceed the amount of withholding taxes or Indirect Taxes that would have been applicable had such redomiciliation or assignment not occurred, then any such amount payable shall be increased to take into account such withholding taxes or Indirect Taxes as may be necessary so that, after making all required withholdings (including withholdings on the additional amounts payable) and/or paying such Indirect Taxes, as the case may be, the Payee Party (or its assignee) receives an amount equal to the sum it would have received had no such increased withholding been made and no such Indirect
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Taxes had been imposed. The obligation to pay additional amounts pursuant to the preceding sentence shall not apply, however, to the extent such increased withholding tax or Indirect Taxes (i) would not have been imposed but for the assignment by the Payee Party of its rights or obligations under this Agreement or the redomiciliation of such Payee Party outside of the United States, to the extent such assignment or redomiciliation occurs after the redomiciliation or assignment by the Paying Party described in the first sentence of this Section 5.3.3(b) or (ii) are attributable to the failure by the Payee Party to comply with the requirements of Section 5.3.3(c).
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(c)Each Party has provided a properly completed and duly executed IRS Form W-9 or applicable Form W-8 to the other Parties. Each Party and any other recipient of payments under this Agreement shall provide to the other Party, at the time or times reasonably requested by such other Parties or as required or permitted by Applicable Law, such properly completed and duly executed documentation (for example, IRS Forms W-8 or W-9) as will permit payments made under this Agreement to be made without, or at a reduced rate of, withholding for taxes.
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5.3.4Partnership Tax Treatment. Each Party understands, acknowledges and agrees that to the extent the Parties are sharing Net Profits/Net Losses pursuant to Section 5.1.1 with respect to the Development and Commercialization of the Product then a partnership for United States income tax purposes is formed between the Parties (the “Tax Partnership”). The Parties further agree and acknowledge that, for U.S. federal income tax purposes, the Tax Partnership commenced upon the effective date of the Joint Commercialization Agreement (the “Tax Partnership Formation Date”). The Parties intend that for U.S. federal (and applicable state) income tax purposes, each of Genmab and SGI shall be treated as having contributed property of equal value to the Tax Partnership on the Tax Partnership Formation Date (such value to be determined by mutual agreement of the Parties) in a transaction intended to qualify for non- recognition treatment under Section 721(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Tax Code”). The Parties further acknowledge and agree that the Royalty Payments provided for under Section 5.2 shall not be treated as contributions to or distributions from the Tax Partnership, but shall be treated by the Parties as payments made outside of the Tax Partnership (by SGI to Genmab not in their capacity as Partners in the Tax Partnership). The Tax Partnership shall be governed and operated in accordance with the rights and obligations set forth in Schedule 5.3.4. The Parties further acknowledge that the arrangements described in this Agreement (including Schedule 5.3.4) shall be treated by the Parties as a partnership solely for U.S. federal (and applicable state) income tax purposes and is not intended to constitute a partnership for any non-tax purpose or for tax purposes under the laws of any non-U.S. jurisdiction. The Parties agree to cooperate in good faith to take such reasonable actions and execute such documents as reasonably necessary to support the tax position set forth in this Section 5.3.4 and Schedule 5.3.4.
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5.3.5Effectively Connected Income. The Parties shall coordinate and cooperate reasonably and in good faith to review the anticipated tax consequences associated with the Development and Commercialization activities undertaken by the Parties (and their respective Affiliates) pursuant to this Agreement and structure such activities in a manner to minimize, to the extent permitted by Applicable Law, the income generated from activities that constitutes income effectively connected with a trade or business within the United States (within the meaning of Section 864 of the Tax Code) (“ECI”) or profits attributable to a permanent establishment or other
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similar taxable presence of either Party in any jurisdiction outside of the United States. Each Party, upon request, shall provide information to the other Party about the location and structure of its Development and Commercialization activities reasonably in connection  with the foregoing review. The determination of the structure of Development and Commercialization activities for the foregoing purposes shall be made by the JCC; provided, however, that neither Party shall be required to undertake actions that could reasonably be expected to result in adverse tax or business consequences to such Party (including any liability for taxes that are not indemnified by the other Party under Section 5.3.3) or that would cause such Party to incur material out-of-pocket costs (other than any out-of-pocket costs that the other Party agrees to reimburse).
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5.4Currency. All payments hereunder will be in Dollars in immediately available funds and will be made by wire transfer from a United States bank located in the United States to such bank account as payee may designate in writing from time to time.
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5.5Foreign Exchange. The amounts accruing in a currency other than Dollars will be converted to Dollars using an exchange rate equal to, unless otherwise agreed by the JFT, the arithmetic average of the U.S. daily closing rates published by Reuters during the applicable Quarter for which payments are being made or applicable costs are accrued. The conversion calculations will be provided in any statement reporting converted amounts.
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5.6Late Payments. Any undisputed payments or portions thereof due hereunder which are not paid on the date such payments are due under this Agreement will bear interest at a rate equal to the lesser of (a) the prime rate as published in The Wall Street Journal, Eastern Edition, under the heading “Money Rates,” on the first date of each Quarter in which such payments are overdue, plus [*] or (b) the maximum rate permitted by Applicable Law, in each case ((a) and (b)), calculated on the number of days such payment is delinquent, compounded monthly using a three hundred sixty-five (365)-day year.
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5.7Financial Records; Audits. Each Party shall maintain, and require its Affiliates to maintain, complete and accurate records in sufficient detail to permit the other Party to confirm the accuracy of any calculations by the other Party or any payments due by the other Party under this Agreement, including (a) amounts to be included in the calculation of Allowable Expenses or other amounts to be reimbursed or shared pursuant to this Agreement, (b) Net Sales, (a) royalty payments for purposes of determining any under- or over-payment of royalties, (b) Manufacturing Costs, Commercial Packaging and Labeling Costs, Commercialization Costs, and Medical Affairs Costs, (e) amounts payable under any supply agreement with respect to the Product to which the Parties or their Affiliates are party, and (f) other compensation or reimbursement payable under this Agreement. Upon reasonable prior notice, such records for any Year(s) ending not more than [*] prior to the date of such request shall be open during regular business hours for examination at the auditing Party’s expense, and not more often than once each [*] period, by an independent certified public accountant selected by the auditing Party and reasonably acceptable to the audited Party for the sole purpose of verifying for the auditing Party the accuracy of the financial statements or reports furnished by the audited Party pursuant to this Agreement or of any payments made, or required to be made, by or to the audited Party to the other Party pursuant to this Agreement or any supply agreement with respect to the Product to which the Parties or their Affiliates are party. Such accountant shall be provided access to the audited Party’s data for the purpose of verifying, without limitation, the audited Party’s
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determination of the number of FTEs (if applicable), and calculation of such other information included in the calculation for Manufacturing Costs, Commercial Packaging and Labeling Costs, Commercialization Costs, and Medical Affairs Costs actually incurred by the audited Party for the Product. Any such auditor shall not disclose the audited Party’s information to the auditing Party, except to the extent that such disclosure is necessary to report on the accuracy of the financial reports furnished by the audited Party or the amount of payments due by the audited Party under this Agreement. Any amounts shown to be owed but unpaid, or overpaid, shall be paid or refunded (as the case may be) within [*] days after the accountant’s report, unless such report is challenged in good faith by the audited Party, in which case any undisputed portion shall be paid within [*] days after the accountant’s report and any remaining disputed portion shall be paid within [*] days after resolution of the dispute, and interest shall not accrue with respect to the disputed portion during the period of time the dispute is being resolved. The auditing Party shall bear the full cost of such audit unless such audit reveals an overpayment to, or an underpayment by, the audited Party that resulted from a discrepancy in a report that the audited Party provided to the other Party during the applicable audit period, which underpayment or overpayment was more than [*], in which case the audited Party shall bear the Out of Pocket Costs of such audit.
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5.8Third Party License Agreements.
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5.8.1Each Party shall promptly notify the other Party via discussion at the JSC or any Committee charged with oversight for intellectual property matters, or between the Alliance Managers, if either Party believes that Patent or other intellectual property rights controlled by a Third Party (but not already Controlled by a Party) may be necessary or reasonably useful for the Development, Manufacture, or Commercialization of the Product in or for one or more Major Markets and such notifying Party proposes that a Party should enter into a Third Party License Agreement therefor for one or more Major Markets.
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5.8.2The Parties, through the JSC, shall discuss whether or not to negotiate the terms of such Third Party License Agreement for one or more Major Markets. The determination of whether to pursue the negotiation of any such Third Party License Agreement for one or more Major Markets must be made by the JSC.
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5.8.3If the JSC decides to pursue the negotiation of a Third Party License Agreement for one or more Major Markets, the JSC shall also decide which Party or whether the Parties jointly shall take the lead on negotiating the terms of such Third Party License Agreement (the “Lead Negotiating Party”); provided, that the presumption shall be that (a) SGI shall be the Lead Negotiating Party for a Third Party License Agreement for one or more SGI Major Markets, unless such Third Party License Agreement relates primarily to the Genmab Technology rather than the Product, in which case Genmab shall be the Lead Negotiating Party, and (b) Genmab shall be the Lead Negotiation Party for a Third Party License Agreement for the Genmab Major Market, unless such Third Party License Agreement relates primarily to the SGI Technology rather than the Product, in which case SGI shall be the Lead Negotiating Party. If the Lead Negotiating Party elects not to or to cease taking the lead on negotiating the terms of a Third Party License Agreement, it shall promptly notify the other Party and transition the negotiation thereof to the other Party. For the avoidance of doubt, the JSC may decide to discontinue any such negotiation or decide that neither Party shall enter into any Third Party License Agreement so negotiated.
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5.8.4In connection with any negotiation of a Third Party License Agreement for one or more Major Markets: (a) the terms of any such license shall permit the Party obtaining such Third Party License Agreement to grant to the other Party a sublicense thereunder to practice the licensed rights thereunder; (b) the Parties, in consultation through the JSC, shall cooperate in negotiating the terms of such Third Party License Agreement with such Third Party as reasonably necessary to enable such other Party to exercise its rights under this Agreement; and (c) the Lead Negotiating Party for such Third Party License Agreement shall consult with the other Party through the JSC prior to making any material proposal regarding, or otherwise agreeing to, the terms of any such license. Additionally, the Parties shall negotiate and structure such Third Party License Agreement in a fair and equitable manner, taking into consideration the manner in which such license rights are to be used, and, unless otherwise mutually agreed by the Parties, shall not structure any such arrangement with the purpose or effect of shifting to one Party or the other the amount of Payments to Third Parties for which either Party will be responsible (if any) pursuant to this Agreement.
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5.8.5The terms of a Third Party License Agreement for one or more Major Markets, and any amendment thereto, must be approved by the JSC prior to execution thereof.
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5.8.6SGI shall promptly notify Genmab via discussion at the JSC or any Committee charged with oversight for intellectual property matters, or between the Alliance Managers, if SGI believes that Patent or other intellectual property rights controlled by a Third Party (but not already Controlled by a Party) may be necessary or reasonably useful for the Development, Manufacture, or Commercialization of the Product in or for one or more countries in the Royalty Territory. Prior to execution, SGI will discuss with Genmab any proposed Third Party License Agreement for one or more countries in the Royalty Territory and SGI will consider any Genmab input thereon in good faith, but, for the avoidance of doubt, SGI may enter into one or more Third Party License Agreements for one or more countries in the Royalty Territory in its sole discretion; provided, that neither Party is aware of equivalent Third Party intellectual property rights that exist outside of the Royalty Territory which may be necessary or reasonably useful for the Development, Manufacture, or Commercialization of the Product in or for one or more Major Markets. In case such equivalent Third Party intellectual property rights exist outside of the Royalty Territory, any Third Party License Agreement with respect to the Royalty Territory and Major Market(s) shall be handled in accordance with Sections 5.8.1 to 5.8.5.
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5.9Payment to Third Parties.
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5.9.1All Payments to Third Parties (i) (A) if triggered by Development activities directed towards obtaining Regulatory Approval of the Product in the Major Markets, shall be included as Development Costs for the Product, and (B) if triggered by Development activities directed towards obtaining Regulatory Approval of a Product in the Royalty Territory, shall be borne solely by SGI and (ii) (A) if triggered by Commercialization of a Product in a country in the Major Markets, shall be treated as Allowable Expenses for the Product, and (B) if triggered by Commercialization of a Product in a country or territory in the Royalty Territory, shall be borne solely by SGI. If a given Payment to Third Parties is not triggered by territory-dependent activities (e.g., an upfront payment), then a reasonable portion of such Payment to Third Parties shall, (X) to the extent directly attributable or reasonably allocable to the Major Markets, be treated as an
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Allowable Expense for the Product and (Y) to the extent directly attributable or reasonably allocable to the Royalty Territory, be borne solely by SGI.
5.9.2Genmab represents and warrants to SGI, as of the Effective Date, that the copies of the [*] Agreement and the [*] Agreement provided to SGI prior to the Effective Date are true, complete (except for redactions relating to products other than the Product), and correct in all respects, and that neither Genmab nor its Affiliates are party to any other agreement or arrangement, whether written or oral, that either would or would be reasonably likely to result in Payments to Third Parties following the Effective Date. SGI warrants to Genmab, as of the Effective Date, that neither SGI nor its Affiliates are party to any agreement or arrangement, whether written or oral, that either would or would be reasonably likely to result in Payments to Third Parties following the Effective Date. For clarity, and without limiting the definition of “Payments to Third Parties,” the foregoing is not intended to extend to payments to be made to subcontractors of either Party.
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ARTICLE 6 
MANUFACTURE AND SUPPLY
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6.1Overview. The provisions of this ARTICLE 6 shall apply to the Manufacture of the Product unless otherwise agreed by mutual Party Written Consent.
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6.2Global Manufacturing Plan. Prior to the Effective Date, the JDT adopted a Joint Development Plan and Joint Budget (each, as defined in the Collaboration Agreement) that govern the global Development, Manufacturing, and regulatory activities of the Parties with respect to the Product under the Collaboration Agreement. As promptly as practicable following the Effective Date, the JCMCT shall (a) update the portions of such Joint Development Plan and Joint Budget relating to Manufacturing and CMC Development to the extent necessary to (i) align the contents thereof with this Agreement and the Approved Plans hereunder, and (ii) otherwise reflect the global Manufacturing and CMC Development activities of the Parties with respect to the Product throughout the Territory, including the topics set forth in this Section 6.2, (provided that such plan and budget shall include a high-level summary prepared by SGI with respect to the Royalty Territory) and (b) submit such updated plan and budget to the JSC for approval (as approved by the JSC, such plan and budget, collectively, the “Global Manufacturing Plan”). Following its approval by the JSC, the Global Manufacturing Plan under this Agreement shall replace the portions of the Joint Development Plan and Joint Budget under the Collaboration Agreement for purposes of Manufacturing and CMC Development for the Product. On an annual basis, or more often as the Parties deem appropriate, the JCMCT shall prepare amendments to the then-current Global Manufacturing Plan, including any amendments proposed by SGI with respect to the Royalty Territory, for approval by the JSC. In the event of any inconsistency between the Global Manufacturing Plan and this Agreement, the terms of this Agreement shall prevail. The Global Manufacturing Plan shall include: (A) the Parties’ global Manufacturing strategy for the Product to meet the forecasts set forth in the Approved Plans or otherwise agreed by the JCMCT, in each case, throughout the Territory, together with appropriate safety stock of key intermediates, drug substance and drug product; (B) a plan for CMC Development and other related activities, including activities related to process improvements that could materially impact cost, efficiency, or stability of supply, and line extensions; (C) a Supply Chain Management plan; and (D) a strategy for risk management and
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evaluating the need for second or additional source Manufacturing of the Product, including a plan for monitoring the performance of CMOs.
6.3Manufacturing Transition; Supply and Quality Agreements.
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6.3.1Notwithstanding any determinations of the JSC or the JCMCT made prior to the Effective Date, the Parties agree that SGI will be responsible for global Manufacturing for the Product following the Effective Date, subject to the oversight of the JCMCT and otherwise in accordance with the Global Manufacturing Plan and this Agreement; provided, that the Selling Party shall perform Packaging and Labeling and Sales and Distribution for the Product in such Party’s Party Major Market(s) and, as to SGI, the Royalty Territory. Accordingly, [*] following the Effective Date, the JCMCT shall develop a plan to transition global Manufacturing for the Product (but not including Packaging and Labeling or any Sales and Distribution activities, in each case, for the Genmab Major Market) to SGI (the “Manufacturing Transition Plan”). The Manufacturing Transition Plan will provide for, where possible, the assignment or an appropriate delegation to SGI (including the grant of a sublicense to SGI, where appropriate), or other appropriate disposition or substitution consistent with this ARTICLE 6, of existing agreements between Genmab or its Affiliates and contract manufacturing organization (“CMOs”) with respect to supply of the Product, which agreements are listed on Schedule 6.3 (“Existing Product CMO Agreements,” and the relevant Third Party CMOs that are counterparties thereto, the “Existing Product CMOs”). Each Party shall use Commercially Reasonable Efforts to implement the Manufacturing Transition Plan and complete the transition of Manufacturing contemplated by this Section 6.3.1 as promptly as practicable, and in any event within the timelines contemplated therein. Unless otherwise agreed by the JSC, SGI shall continue to use the Existing Product CMOs for the Manufacturing of the Product in the Major Markets for the remaining terms of such Existing Product CMO Agreements. Without limiting the foregoing, with respect to Clinical Supply for the Major Markets, the JSC shall agree on whether to renew any then-existing agreements with CMOs (including the Existing Product CMOs) for the Clinical Supply of the Product or to transition the Clinical Supply of Product to an alternative CMO (or to a Party or its Affiliate, if so determined by the JCMCT in accordance with Section 6.4) at a reasonable time prior to the expiration of the remaining term of each then-existing agreement with a CMO for the Clinical Supply of the Product (including the Existing Product CMOs). With respect to the Commercial Supply of the Product for the Territory, the Parties acknowledge that Genmab is in the process of negotiating a commercial supply agreement with [*] for the Manufacture of the Product for the Territory, and that, subject to the consent of [*], Genmab and SGI will finalize the commercial supply agreement in close consultation with [*] after the Effective Date and, to the extent reasonably possible, the Parties shall make SGI the contracting party to such agreement instead of Genmab, or mutually agree on an alternative path to assign or transition such agreement to SGI.
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6.3.2Following the assignment, sublicensing, or other disposition of such Existing Product CMO Agreements to SGI in accordance with Section 6.3.1, the Parties shall (a) transition to a new clinical supply agreement and quality agreement that provide for SGI or its Affiliate to Manufacture and supply to Genmab Clinical Supply in accordance with Genmab’s requirements for Clinical Supply and terminate the existing Clinical Supply Agreement and related quality agreement in connection with such transition, and (b) enter into a supply agreement (the “Commercial Supply Agreement”) and quality agreement between SGI and Genmab, as contemplated by Section 6.2.1 of the Collaboration Agreement and consistent with this Agreement,
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setting forth the terms and conditions on which SGI or its Affiliate shall Manufacture and supply, or have Manufactured and supply, to Genmab Commercial Supply for the Genmab Major Market, and, in the case of the quality agreement, quality-related matters relating to such Manufacture. Such supply and quality agreements shall be prepared by or under the oversight of the JCMCT, but shall be mutually agreed and entered into by the Parties or their respective Affiliates. The terms and conditions of such supply agreement will set forth the details of a supply arrangement with financial terms that support the supply of Product and sharing of Manufacturing Costs consistent with this Agreement and otherwise reflect customary terms and conditions for the supply and quality of pharmaceutical products in the context of a collaboration with a profit sharing arrangement such as the Collaboration, including with respect to forecasting and ordering, payment terms, financial and compliance audits, the engagement of subcontractors, a fair and equitable allocation of Product between the Parties and their Affiliates in the event of any defects or Product shortfalls, and representations and warranties. Such quality agreement shall govern processes for product distribution holds, recalls, clinical holds, or market withdrawals (as set forth in Section 4.4) and any other quality control and quality assurance-related activities agreed between the Parties.
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6.4Existing CMOs; Second Source. The JCMCT will, from time to time, evaluate the need for a second or additional source for the Manufacturing (other than Packaging and Labeling), in whole or in part, of the Product or any component thereof (i.e., source(s) other than the then-current source(s) for such Manufacturing of the Product or its components) for specific countries globally, and make any recommendations agreed by the JCMCT with respect to the foregoing to the JSC for approval. Unless otherwise agreed by the JSC, the Parties shall continue to use the Existing Product CMOs for the Manufacturing of the Product in Major Markets as well as the Royalty Territory, and JSC approval shall be required before either Party engages in second or additional source Manufacturing for the Product.
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6.5Manufacturing Costs. In the event that the Parties develop a costing methodology for Manufacturing Costs under Section 1.71.2, such methodology shall be developed by the JCMCT and approved by the JFT before its application in a relevant Commercial Supply Agreement or other supply agreement entered into under this Agreement. SGI will be solely responsible for all Commercial Packaging and Labeling Costs and Manufacturing Costs for Product for the Royalty Territory, and after the expiration of the Royalty Term in a country, SGI will be solely responsible for those additional costs no longer included in [*] that are directly attributable or reasonably allocable to such country as set forth in Sections 1.3.4, 1.3.5 and 1.3.6.
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6.6Inventory. The Parties shall each track and record on a Quarterly basis their respective inventory of Product (including components thereof) and their respective costs of Packaging and Labeling to enable the calculation of Allowable Expenses and Development Costs for the Product. Each Party shall provide a report to the JFT and JCMCT of such inventory and costs on a Quarterly basis.
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6.7Product Shortfall; Allocation. In the event of any material Product shortfall or defect, the JCMCT will develop a methodology to fairly and equitably allocate Product supply between the Parties and their Affiliates on a global basis (with first priority given to the Major Markets relative to the Royalty Territory), and propose such global allocation and any changes thereto for review and approval by the JSC.
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ARTICLE 7
MEDICAL AFFAIRS ACTIVITIES
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7.1Overview. Subject to the Combined Major Market Medical Affairs Plan and oversight by the JMAT, JDC, JCC and the JSC, and the terms of this Agreement (including ARTICLE 3 with respect to Genmab’s right to provide MSLs in the United States), each Party shall have the right and responsibility for Medical Affairs Activities in support of the Product in its Party Major Market(s) in accordance with this Agreement, including as provided in this ARTICLE 7, including by performing activities for such Party Major Market(s) as follows: (a) preparing materials for use in connection with Medical Affairs Activities in its Party Major Market(s), (b) preparing training materials and training programs for personnel engaged in such Medical Affairs Activities and implementing such training, and (c) making decisions with respect to its Party Tactical Matters in connection with such Medical Affairs Activities; provided, that, in each case ((a) through (c)), such activities shall be consistent with the Party Major Market Medical Affairs Plan, Combined Major Market Medical Affairs Plan, and US Coordination Plan, including the tactical and strategic matters described in such plans, and otherwise conducted in accordance with this Agreement (including ARTICLE 3 with respect to the United States). Notwithstanding the foregoing, each Party will be permitted to list the Product as part of its portfolio in any country in the Major Markets (including the other Party’s Party Major Market(s)) in settings where the Party has a “corporate presence” (e.g., within a booth at a conference or congress), including by providing totems or videos with respect to the Product in any such setting; provided, that (i) any such totems or videos and any other signs or materials used by a Party in connection therewith comply with the Medical Affairs Plans, the Publication Charter and all other applicable terms and conditions of this Agreement, (ii) the activities of the Parties at conferences and congresses in the United States will be subject to the US Coordination Plan, and (iii) in any other country in the Major Markets, any request for information relating to the Product by an applicable HCP requesting information in the other Party’s Party Major Market(s) will be referred to the other Party if practicable (i.e., the applicable HCP will be directed to the other Party’s booth, if available).
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7.2Combined Major Market Medical Affairs Plan. The Medical Affairs Activities in support of the Product in the Major Markets shall be described in a plan and budget for Medical Affairs Activities and Medical Affairs Costs (a “Combined Major Market Medical Affairs Plan”). The JMAT shall prepare the first draft of the Combined Major Market Medical Affairs Plan for review and approval by the JSC at least [*] months prior to the first anticipated Launch of the Product in the Major Markets (as such date is reasonably projected by the JDC), and cover a period of [*] years ([*] year forecasted and [*] year projections). Once agreed by the JMAT, the JMAT shall recommend the Combined Major Market Medical Affairs Plan to the JSC for approval. The Combined Major Market Medical Affairs Plan shall be updated at least annually, and all updates and amendments shall be reviewed and approved by the JMAT and then submitted to the JSC for approval. The Parties shall agree on a timeline for conducting all such reviews and approvals that accommodates the Parties’ respective planning and budgeting purposes and allows for necessary or reasonably useful coordination between the Committees. The Combined Major Market Medical Affairs Plan and subsequent revisions thereto will include, with respect to the Major Markets (a) the Parties’ strategy for Medical Affairs Activities
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for the Product (including the relative responsibilities of the Parties with respect thereto), (b) an agreed range for the aggregate number of MSLs or MSL FTEs expected to be deployed in the Major Markets either by country or region as reasonably determined by the JMAT, (c) key performance indicators either by country or region, as reasonably determined by the JMAT, that the Parties shall implement, and that shall apply to the activities of the MSLs of each Party in the Major Markets, (d) such information as the JMAT believes necessary for the successful medical affairs support of the Product, such as overall medical strategy, the medical narrative, global advisory boards, publication plans, outcomes/real world evidence strategy, and strategy for investigator- initiated trials and investigator-sponsored research in the Major Markets, and (e) [*] year forecasts and projections for an additional [*] years for such topics included in the Combined Major Market Medical Affairs Plan. The topics included in the Combined Major Market Medical Affairs Plan will be presented both on a global basis across the Major Markets and on a regional basis. In the event of any inconsistency between (i) the Combined Major Market Medical Affairs Plan and this Agreement, the terms of this Agreement shall prevail and (ii) the Combined Major Market Medical Affairs Plan and a Party Major Market Medical Affairs Plan, the Combined Major Market Medical Affairs Plan shall prevail.
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7.3Party Major Market(s) Medical Affairs.
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7.3.1Party Major Market Medical Affairs Plans. The Medical Affairs Activities in support of the Product (a) in the SGI Major Markets shall be described in a high-level plan and corresponding budget (collectively, the “SGI Major Market Medical Affairs Plan”) and (b) in the Genmab Major Market shall be described in a high-level plan and corresponding budget (collectively, the “Genmab Major Market Medical Affairs Plan”), in each case ((a) and (b)), that describe the strategy for Medical Affairs Activities for the Product in the corresponding Party Major Market(s). In addition, the SGI Major Market Medical Affairs Plan will incorporate the Medical Affairs Activities set forth in the US Coordination Plan. Each Party shall prepare their own Party Major Market Medical Affairs Plan and provide it to the JMAT, which shall review such plans for consistency with the Combined Major Market Medical Affairs Plan (subject to Section 2.10.5(c)). The initial draft of each Party Major Market Medical Affairs Plan shall be submitted to the JMAT within [*] of submission of the initial draft of the Combined Major Market Medical Affairs Plan to the JMAT in accordance with Section 7.2. The Party Major Market Medical Affairs Plans shall be updated at least annually, and all updates and amendments shall be reviewed and approved by the JMAT for consistency with the Combined Major Market Medical Affairs Plan. The Parties shall agree on a timeline for conducting all such reviews and approvals that accommodates the Parties’ respective planning and budgeting purposes and allows for necessary or reasonably useful coordination between the Committees.
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7.3.2Medical Affairs Reports for the Major Markets. Within thirty (30) days after the end of each Quarter, each Party shall provide to the JMAT such information regarding the Medical Affairs Activities in support of the Product in its respective Party Major Market(s) as the JMAT or the other Party may reasonably request.
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7.4Medical Affairs Standards of Conduct.
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7.4.1Diligence; Compliance. Each Party shall carry out the tasks assigned to it under the Medical Affairs Plans in a timely and effective manner and in compliance with
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Applicable Laws and applicable industry compliance standards.
7.4.2Diligence Obligations. Each Party shall use Commercially Reasonable Efforts to perform Medical Affairs Activities in support of the Product in its Party Major Market(s) following obtaining Regulatory Approval therefor with respect to the applicable country or territory in accordance with and to the extent provided in the Combined Major Market Medical Affairs Plan, the applicable Party Major Market Medical Affairs Plan, and otherwise in accordance with this Agreement.
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ARTICLE 8 
REGULATORY MATTERS
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8.1Regulatory Matters.
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8.1.1Global Regulatory Plan. As part of the Global Development Plan, (a) the Parties, acting through the JRT and JDC, shall jointly prepare a global regulatory plan for the Product or the portions of the Global Development Plan describing the regulatory actions to be taken by each Party in the Territory (provided that such plan or portions of the Global Development Plan shall include a high-level summary prepared by SGI with respect to the Royalty Territory) (such plan or portions of the Global Development Plan are referred to herein as the “Global Regulatory Plan”) and (b) each Party shall prepare a regulatory plan for the Product or the portions of the Global Regulatory Plan describing the regulatory actions to be taken by such Party in or for its Major Market(s) consistent with the Global Regulatory Plan and the strategic matters described therein (each, a “Party Regulatory Plan”), in each case ((a) and (b)), that describe how such activities shall be coordinated if necessary, including (i) the content of the Core Data Sheet for the Product (prepared in accordance with Section 8.1.6) that will be used to support global submissions to Regulatory Authorities, (ii) planned meetings with Regulatory Authorities regarding the Product, (iii) plans for INDs, Drug Regulatory Approval Applications, Regulatory Approvals and related filings for the Product, and (iv) the amount of annual or other fees projected to be assessed by Regulatory Authorities. Each Party Regulatory Plan shall be reviewed by the JRT for consistency with the Global Regulatory Plan (for clarity, if the JRT does not agree that a Party Regulatory Plan is consistent with the Global Regulatory Plan, such dispute will be escalated to the JDC and resolved in accordance with Section 2.10.5(b)). Without limiting the foregoing, the JRT (and JDC) shall coordinate with the JCMCT with respect to the regulatory aspects of CMC Development and the regulatory activities related to CMC Development that are addressed in the Global Development Plan and the Global Regulatory Plan. In the event of (x) any inconsistency between a Global Regulatory Plan and this Agreement, the terms of this Agreement shall prevail, and (y) any inconsistency between a Party Regulatory Plan and the Global Regulatory Plan, the terms of the Global Regulatory Plan shall prevail. For clarity, unless otherwise determined by the JRT, neither Party nor the JRT shall be obligated to prepare the Global Regulatory Plan or the Party Regulatory Plans as stand-alone planning documents, and as used in this Agreement, the terms “Global Regulatory Plan” and “Party Regulatory Plans” refer to the relevant content whether it is included in a stand-alone document, incorporated into an applicable Approved Plan, or otherwise.
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8.1.2Ownership. Notwithstanding Section 7.2 of the Collaboration Agreement, as between the Parties, legal title to and legal ownership of all INDs, Drug Regulatory
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Approval Applications, Regulatory Approvals and related filings for the Product (a) in the Genmab Major Market shall be held by Genmab or its Affiliates, and (b) in the SGI Major Markets and the Royalty Territory shall be held by SGI or its Affiliates (such Party holding legal title to and legal ownership of such materials in the applicable country or region being referred to as the “Lead Regulatory Party”); provided, that (i) Section 7.2 of the Collaboration Agreement shall not be superseded by this Agreement to the extent that this Agreement would otherwise reallocate responsibility with respect to regulatory materials relating to Drug Conjugation Technology (as defined in the Collaboration Agreement), and (ii) sponsorship of Clinical Trials and ownership of INDs during the conduct of Clinical Trials shall be in accordance with Section 4.6.2. Subject to the foregoing, to the extent any INDs, Drug Regulatory Approval Applications, Regulatory Approvals, and related filings for the Product existing as of the Effective Date (or at any time during the Term) are not owned by the Lead Regulatory Party under this Agreement, the other Party hereby assigns to the applicable Lead Regulatory Party all of its right, title, and interest in and to all such INDs, Drug Regulatory Approval Applications, Regulatory Approvals and related filings for the Product that it or any of its Affiliates owns. Such other Party shall duly execute and deliver, or cause to be duly executed and delivered, such instruments and shall do and cause to be done such acts and things, including the filing of such assignments, agreements, documents, and instruments, as may be necessary to effectuate such assignment.
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8.1.3Responsibilities. With respect to each country in the Territory, the Lead Regulatory Party shall, in accordance with the Global Regulatory Plan, Party Regulatory Plan (if applicable), and the terms and conditions of this Agreement: (a) be responsible for the day-to-day implementation of the regulatory activities required to obtain and maintain Regulatory Approval of the Product in the applicable country (provided that any decision to file a DAA for the Product anywhere in the Territory must be approved by the JSC); (b) subject to consistency with the Core Data Sheet, be responsible for labeling of the Product in the applicable country for which it is the Lead Regulatory Party; (c) take the lead with respect to communications with the Regulatory Authorities in such country; and (d) designate a representative to serve as the designated regulatory official for the Product in such country for purposes of receiving and delivering communications from the Regulatory Authorities in such country. The other Party will cooperate with the Lead Regulatory Party as reasonably necessary, and solely with respect to the Major Markets, the costs thereof will be Development Costs.
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8.1.4Regulatory Authority Submissions and Correspondence. In accordance with the Global Development Plan, Global Regulatory Plan, and Party Regulatory Plan (if applicable), the Lead Regulatory Party shall be responsible for the preparation of all documents and other correspondence to be submitted to Regulatory Authorities pertaining to the Product (other than the Core Data Sheet, which shall be subject to Section 8.1.6(a)). Solely with respect to the Major Markets, the Lead Regulatory Party shall provide to the other Party drafts of any material documents or correspondence to be submitted to a Regulatory Authority in a Major Market pertaining to the Product sufficiently in advance of submission so that the other Party may review and comment on such documents or correspondence prior to submission, and the Lead Regulatory Party shall take such comments under good faith consideration. Solely with respect to the Major Markets, the Lead Regulatory Party shall as promptly as practicable (and, in any event, within [*] Business Days of its receipt) provide the other Party with copies of any material documents or correspondence received from a Regulatory Authority in a Major Market pertaining to the Product. Neither Party shall be required to translate any documents received or submitted to
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a Regulatory Authority except to the extent required by such Regulatory Authority.
8.1.5Meetings with Regulatory Authorities. Subject to the Global Development Plan, the Global Regulatory Plan, and the Party Regulatory Plan (if applicable), the Lead Regulatory Party with respect to a country shall be responsible for conducting all meetings and telephone or video conferences related to the Product with Regulatory Authorities in such country, including all Product labeling discussions. To the extent permitted under Applicable Law and with the prior consent of the relevant Regulatory Authority, the other Party shall have the right to have [*] representative attend all such in-person meetings and material telephone conferences or videoconferences with Regulatory Authorities solely in the Major Markets, and to the extent practicable the Lead Regulatory Party shall schedule such meetings in consultation with the other Party to permit such attendance and participation by the other Party.
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8.1.6Approval of Core Data Sheet and CMC Information.
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(a)Subject to the terms and conditions of this Section 8.1.6(a), SGI shall be responsible for preparing a draft Core Data Sheet for the Product and may propose amendments thereto from time to time during the Term. The JRT, together with the CDS Working Group, will (i) review a draft Core Data Sheet prepared by SGI and any amendments thereto proposed by SGI, and (ii) agree on a proposed version of the Core Data Sheet to submit to the JDC. The JDC will then review such version and approve a draft of the Core Data Sheet for submission to the JSC for the JSC’s approval. The Core Data Sheet and any amendments thereto must be approved by the JSC. Notwithstanding the foregoing, each Party shall (A) be responsible for creating and updating the local product information for the Product in its Party Major Market(s) (and SGI shall have such responsibility for the Royalty Territory) and (B) solely with respect to such Party’s Major Market(s) shall submit such information to the JRT and CDS Working Group. All such local product information (including with respect to the Royalty Territory) shall be subject to approval by the JSC if any substantive deviations are made from the then-current Core Data Sheet as last approved by the JSC. The JRT and CDS Working Group shall decide if any such local product information requires approval of the JSC. Notwithstanding anything herein to the contrary, (1) the Lead Regulatory Party shall be responsible for maintaining the Core Data Sheet, including local product information, for each country in the Territory for which it is Lead Regulatory Party, and (2) any changes to the local product information required by Applicable Law or a Governmental Authority in any Major Market may be made by the applicable Lead Regulatory Party irrespective of any Committee review or approval contemplated by this Section 8.1.6(a); provided, that any such changes shall be communicated by the applicable Party to the JRT and the CDS Working Group in a timely manner. For the avoidance of doubt, SGI shall be responsible for (x) maintaining the Core Data Sheet for each country in the Royalty Territory, (y) making any amendments thereto subject to JSC approval, and (z) creating, updating and maintaining any local product information for the Product for each country in the Royalty Territory without an obligation to obtain JSC approval unless such local product information would constitute a substantive deviation from the then-current Core Data Sheet as last approved by the JSC, in which case such local product information must be approved by the JSC. For clarity, the Core Data Sheet and any amendment thereto or local product information related thereto, in each case, that is approved by the JSC shall be deemed approved for all purposes under this Agreement irrespective of whether the JRT, CDS Working Group, or JDC formally approved a particular document or the information contained therein.
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(b)The JDC in collaboration with the JCMCT shall review and approve the CMC components of any Drug Regulatory Approval Application in the Major Markets; provided, that if the CMC components of any Drug Regulatory Approval Application for the Product in the Major Markets have previously been approved as set forth above, the Lead Regulatory Party may request permission from the JCMCT to submit such components (or subset thereof) to the applicable Regulatory Authorities without such prior review and approval (such permission to be granted only by the JCMCT).
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8.1.7Advertising and Promotion. The Lead Regulatory Party in the applicable country shall be the point of contact and the responsible Party for Regulatory Authorities with respect to any Promotional Materials relating to the Product consistent with the Combined Major Market Plans. Section 8.1.4 shall apply with respect to the other Party’s rights to review and comment on any such correspondence with or submissions to Regulatory Authorities in connection therewith.
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8.1.8Drug Naming Regulatory Approvals. Subject to Section 11.2.1, the Lead Regulatory Party in the applicable country will take the lead in drug naming procedures with the Governmental Authorities and Regulatory Authorities relating to the Product consistent with Section 11.2. To the extent applicable, Section 8.1.4 shall apply with respect to the other Party’s rights to review and comment on any such correspondence with or submissions to Regulatory Authorities in connection therewith, provided that such activities in the Major Markets are in accordance with the Combined Major Market Plans and performed in consultation with the other Party through the JRT or JDC.
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8.1.9Rights of Reference. The Lead Regulatory Party shall have the right to cross reference, file or incorporate by reference any regulatory submission or drug master file (and any data contained therein) for the Product, or any component thereof, made or maintained in any country in the Territory (including all Regulatory Approvals) by the other Party in order to support regulatory submissions that the Lead Regulatory Party is permitted or required to make under this Agreement for the Product and to enable either Party to fulfill its obligations, or exercise its rights, under this Agreement.
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8.1.10Notice of Inspection, Investigation or Inquiry. If any Governmental Authority, including any Regulatory Authority (a) contacts a Party with respect to the alleged improper Development, Manufacture, or Commercialization of the Product in the Territory, (b) conducts, or gives notice of its intent to conduct, a non-routine inspection at such Party’s facilities (or the facilities of any clinical trial site or vendor) to the extent related to the Product, or (c) takes, or gives notice of its intent to take, any other regulatory or enforcement action with respect to any activity of such Party that could reasonably be expected to adversely affect any Development, Manufacture, or Commercialization activities with respect to the Product in the Territory, then such Party shall immediately notify the other Party of such contact, inspection or notice (“Product Inquiry Notice”) within [*] Business Day of receipt thereof and shall to the extent reasonably practicable and permitted under any relevant subcontracting agreement permit the other Party to be present at the site of any such inspection, investigation or inquiry to be conducted by such Governmental Authority in connection with such Product Inquiry Notice. The contacted,
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inspected or notified Party (“Affected Party”) shall provide such other Party with copies of all pertinent information and documentation issued by any such Regulatory Authority as promptly as practicable (and, in any event, within [*]) after receipt, and the other Party, through the JDC in collaboration with the JRT and/or JCMCT, as applicable, shall have the right to oversee and comment on the preparation of any responses that pertain to the Product; provided, that (i) where the time limit for a response to the competent Regulatory Authorities would prevent the Parties from consulting the JDC and JRT and/or JCMCT in advance of such response, the Affected Party shall immediately notify the other Party’s representatives on JDC and JRT and/or JCMCT and send a copy of any response not later than [*] after the response to the competent Regulatory Authorities is submitted, and (ii) final decision-making authority with respect to such submissions shall belong to the Lead Regulatory Party unless otherwise set forth in the quality agreement contemplated by Section 6.3; provided, further, that any such responses that relate to critical issues or significant non-compliance may, to the extent practicable, be escalated by either Party to the JSC for review and approval of such responses on an expedited timeline to comply with time periods to respond as required by Applicable Law. For the avoidance of doubt, nothing in this Section 8.1.10 shall prevent the Lead Regulatory Party from taking any action reasonably necessary to comply with Applicable Law or address an urgent or serious health or safety matter.
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8.2Pharmacovigilance; Adverse Event Reporting. The Parties entered into a Pharmacovigilance Agreement, effective [*], covering the management of safety information, adverse event reporting and the maintenance of a global safety database with respect to the Product. Prior to the First Regulatory Approval of the Product, the Parties shall amend the existing pharmacovigilance agreement or enter into a new pharmacovigilance agreement to address the Commercialization and other activities with respect to the Product contemplated by this Agreement. The amended or new pharmacovigilance agreement, as applicable, shall provide that (a) SGI will maintain the global safety database for the Product and be responsible for drafting and submitting periodic reports to Regulatory Authorities in any country or jurisdiction for which it is the Lead Regulatory Party, and SGI will provide to Genmab copies of such reports throughout the Territory, (b) Genmab and SGI will exchange all safety data as provided in the pharmacovigilance agreement(s) for the purpose of Genmab maintaining a mirror copy of the SGI global safety database for the Product, and (c) Genmab will be responsible for drafting periodic reports to Regulatory Authorities in any country or jurisdiction for which it is the Lead Regulatory Party, and Genmab will provide to SGI copies of such reports. To the extent the terms and conditions of this Agreement conflict or are otherwise inconsistent with the terms of such pharmacovigilance agreement(s), the terms and conditions of the pharmacovigilance agreement(s) shall prevail with respect to drug safety matters (including adverse event reporting or the maintenance of a global safety database) and the terms and conditions of this Agreement shall prevail with respect to all other matters.
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ARTICLE 9 
COMPLIANCE
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9.1Compliance. In connection with all activities undertaken pursuant to this Agreement or otherwise relating to the Product, each Party hereby covenants and agrees to comply, and cause its Affiliates to comply, with the then-current Pharmaceutical Research and Manufacturers of America (PhRMA) Code or such similar industry code as may exist in each country or jurisdiction in the Territory in which such Party undertakes activities under this
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Agreement, including the EFPIA Code on the Promotion of Prescription-Only Medicines to, and Interactions with, Healthcare Professionals (EFPIA HCP Code), the EFPIA HCP/HCO Code on Disclosure of Transfers of Value From Pharmaceutical Companies to Healthcare Professionals and Healthcare Organisations (EFPIA Disclosure Code) and the codes of conduct approved by the national industry associations of the individual EFPIA member countries (the “Industry Codes”), and (c) all Applicable Laws. In particular:
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9.1.1Each Party shall (a) instruct its personnel not to, and shall ensure that its personnel do not, take any action that could jeopardize the goodwill or reputation of the Product or the other Party (or any of this Affiliates), (b) maintain a corporate compliance program that includes a mechanism for its employees to report, anonymously if they choose (and where legally permissible), any concerns about potential illegal or out-of-policy activity, and that will require such Party to investigate any such reports, and (c) immediately notify the other Party of the substance of any such report in the event that (i) such report concerns illegal activity that potentially impacts the Product, and (ii) such Party has a reasonable basis for believing such report has merit; provided, that, in each case ((i) and (ii)), a Party shall not be required to disclose any information regarding individual employees alleged to have violated any Applicable Laws, or to have failed to comply with this Agreement, except to the extent necessary to report the resolution of alleged violation of Applicable Laws or failure to comply with this Agreement.
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9.1.2In performing the activities contemplated by this Agreement, neither Party shall make any payment, either directly or indirectly, of money or other assets (hereinafter collectively referred as a “Payment”) to government or political party officials, officials of international public organizations, candidates for public office, or representatives of other businesses or persons acting on behalf of any of the foregoing (hereinafter collectively referred as “Officials”) where such Payment would constitute violation of any Applicable Law or the applicable Industry Codes. In addition, no Party shall make any Payment, either directly or indirectly, to Officials if such Payment is for the purpose of unlawfully influencing decisions or actions with respect to the subject matter of this Agreement. No employee of a Party or its Affiliates shall have authority to give any direction, either written or oral, relating to the making of any commitment by such Party or its agents to any Third Party in violation of terms of this Section 9.1.2 or any other provision of this Agreement.
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9.1.3With respect to the Product, each Party must track and report (a) all payments made by that Party or any of its Affiliates to health care providers and health care organizations, and (b) such other information as may be required to comply with its obligations under Applicable Law or the applicable Industry Codes.
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9.1.4Genmab and SGI agree to abide by all Data Protection Laws with respect to their processing of personal data in the course of their performance under this Agreement. Upon the reasonable request by either Party, the Parties shall negotiate and enter into such mutually agreeable data protection agreement(s), or amend that certain [*] Data Processing Agreement, dated as of [*], by and between the Parties, to further clarify their respective roles in complying with the Data Protection Laws.
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9.1.5Genmab and SGI agree to abide by all Applicable Law of all applicable Governmental Authorities, including antitrust and competition laws with respect to not restricting
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passive sales among EU member states.
9.1.6Each Party agrees to provide any information or documentation related to this Agreement or the activities hereunder required by the other Party in order to enable such other Party to comply with Applicable Law or any Third Party agreements relating to the Collaboration.
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9.2Export. This Agreement is made subject to any restrictions concerning the export of products or technical information from the United States or other countries which may be imposed upon or related to SGI or Genmab from time to time. Each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any products using such technical information to a location or in a manner that at the time of export requires an export license or other governmental Regulatory Approval, without first obtaining the written consent to do so from the appropriate Governmental Authorities.
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ARTICLE 10
REPRESENTATIONS AND WARRANTIES; COVENANTS
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10.1Mutual Representations and Warranties. Each Party represents and warrants to the other Party, as of the Effective Date, that:
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10.1.1Corporate Power. It is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or formation, and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof.
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10.1.2Due Authorization. It is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the person(s) executing this Agreement on its behalf has been duly authorized to do so by all requisite corporate action.
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10.1.3Binding Agreement. This Agreement is legally binding upon it and enforceable against it in accordance with its terms. The execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it may otherwise be bound, nor violate any material law or regulation of any Governmental Authority having jurisdiction over it.
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10.1.4No Conflicts. The execution and delivery of this Agreement and the performance of such Party’s obligations hereunder do not and will not (a) conflict with or violate in any material respect any requirement of Applicable Law or any judgment, decree, order, regulation, or rule of any Governmental Authority by which such Party is bound or subject; (b) conflict with or violate the organizational documents of such Party; or (c) result in a breach (or any event which, with notice or lapse of time or both, would constitute a breach) of any material term or provision of, or constitute a material default under any contractual obligations of, such Party or any of its Affiliates.
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10.2No Debarment. In the course of the Development of the Product pursuant to the Collaboration Agreement, each Party has not used and, during the Term, will not use, any employee or consultant that is debarred, disqualified, or restricted by any Governmental
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Authority or Regulatory Authority or, to the best of such Party’s knowledge, is the subject of debarment, disqualification, or restriction proceedings by any Governmental Authority or Regulatory Authority. If either Party learns that it or any employee or consultant performing services on its behalf under this Agreement has been debarred, disqualified, or restricted by any Governmental Authority or Regulatory Authority, or has become the subject of debarment, disqualification, or restriction proceedings by any Governmental Authority or Regulatory Authority, such Party shall promptly notify the other Party and, in the case of an employee or consultant, shall prohibit such employee or consultant from performing on its behalf under this Agreement.
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10.3DISCLAIMER. NEITHER PARTY MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY EXCEPT AS EXPRESSLY SET FORTH IN THIS ARTICLE 10 OR ELSEWHERE IN THIS AGREEMENT, INCLUDING ANY REPRESENTATION OR WARRANTY REGARDING THE VALIDITY OR SCOPE OF ITS PATENT RIGHTS OR THAT THE MANUFACTURE, USE OR SALE OF THE PRODUCT WILL NOT INFRINGE THE PATENT RIGHTS OF THIRD PARTIES, OR ANY REPRESENTATION OR WARRANTY AS TO THE VALUE, ADEQUACY, FREEDOM FROM FAULT OF, OR QUALITY, EFFICIENCY, CHARACTERISTICS OR USEFULNESS OF, OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF, THE PRODUCT, THE LIKELIHOOD OF RECEIVING REGULATORY APPROVAL FOR THE PRODUCT IN ANY JURISDICTION, OR THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION OF THE PRODUCT UNDER THIS AGREEMENT WILL BE SUCCESSFUL.
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ARTICLE 11 INTELLECTUAL PROPERTY
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11.1Copyrights. All copyrights for Promotional Materials or other Product-specific packaging, educational or training materials, in each case, jointly prepared or authored by or for the Parties or their respective Affiliates in furtherance of the Collaboration shall be jointly owned by the Parties; provided, that (a) such materials may not be used outside the Collaboration without the Party Written Consent of the other Party and (b) the foregoing shall not affect or constitute a waiver of any copyright rights that a Party may have in its individually owned materials that were incorporated into a jointly owned copyrighted material.
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11.2Product Trademarks.
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11.2.1Both Parties shall use the same brand name and associated trademarks for the Product in all countries in which the global trademark can reasonably be secured. The Product shall be sold under the same trademark and a generic or international non-proprietary name, and marketed using same logos, slogans, trade dress, domain names, and other similar intellectual property rights throughout the Territory to create a worldwide brand for the Product unless a Party has good cause to use a different brand name (such as for regulatory, inability to secure registration, or Third Party infringement reasons) in a country or territory where it is the Selling Party, informs the JCC thereof, and the JCC approves thereof (excepting the generic or international non-proprietary name, hereinafter, “Product Trademarks”); provided, that the Product Trademarks shall not use, be comprised of, or incorporate the [*] (hereinafter, “Other
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Marks”) without SGI’s or Genmab’s, as applicable, prior Party Written Consent. For clarity, “Other Marks” includes [*]. The Product Trademarks shall be initially jointly owned by the Parties worldwide and the initial applications for registration for such Product Trademarks shall be filed and prosecuted by the Parties jointly using outside counsel mutually acceptable to the Parties (with the associated costs of engaging such outside counsel included in Trademark Costs); except that the domain names included in the Product Trademarks will be owned solely by and registered in the name of one Party (as determined by the JCC), and such Party shall be deemed the “Trademark Owner” (as defined below) with respect thereto. Upon registration of the Product Trademarks in the applicable country or territory, the Parties shall assign such Product Trademarks (a) to [*] (the applicable Party, the “Trademark Owner”). All registrations for Product Trademarks shall be maintained by the Trademark Owner (at its expense; provided, that Out of Pocket Costs of such maintenance for the Major Markets shall be treated as Trademark Costs). The Parties agree to handle Trademark Costs for the Product under this Agreement such that SGI or Genmab will pay its outside counsel, as applicable, and (i) to the extent such Trademark Costs are directly attributable or reasonably allocable to the Major Markets, the other Party will reimburse the paying Party [*] of such Trademark Costs paid to such outside counsel (ii) to the extent such Trademark Costs are directly attributable or reasonably allocable to the Royalty Territory, solely if Genmab was the paying party with respect to such Trademark Costs, SGI shall reimburse Genmab for all such costs paid to its outside counsel. Each Party agrees that it will use the trademark registration symbol ® or TM, as appropriate, in connection with the Product Trademarks. Genmab and SGI agree to cooperate with respect to execution and delivery of such additional instruments or documents as shall be necessary to ensure each Party’s rights and interest in and to the Product Trademarks.
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11.2.2Each Party agrees to maintain suitable quality standards with respect to the Product it provides in connection with the Product Trademarks. Neither Party shall use outside the Collaboration any trademark that is substantially the same as or deceptively or confusingly similar to the Product Trademarks.
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11.2.3This Section 11.2 supersedes Section 14.6 of the Collaboration Agreement with respect to the Product.
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11.3Infringement of Trademarks.
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11.3.1Defense of Third Party Trademark Claims. Each Party shall notify the other Party promptly upon learning of any actual or alleged infringement, or of any unfair trade practices, trade dress imitation, passing off of counterfeit goods or like offenses or any such claims thereof relating to the Product Trademarks brought by a Third Party against a Party or any of its Affiliates (hereinafter “Trademark Infringement Claims”). Upon learning of such Trademark Infringement Claim, the Party or Parties against which such claim is made shall take all reasonable and appropriate steps to resolve the Trademark Infringement Claim, and give reasonable consideration to the other Party’s suggestions regarding such Trademark Infringement Claim. All Out of Pocket Costs incurred in bringing, maintaining and prosecuting any action described in this Section 11.3.1 (including for outside counsel) shall be (a) included in [*] to the extent such Trademark Infringement Claim relates to the [*] Markets and (b) otherwise borne solely by [*] for the [*]. The non-resolving Party shall cooperate with the resolving Party in connection with any Trademark Infringement Claims, and all reasonable fees and expenses incurred for outside counsel
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and other reasonable Out of Pocket Costs incurred by such Party in providing such cooperation shall be (i) included in [*] to the extent such Trademark Infringement Claim relates to the [*] Markets and (ii) otherwise borne solely by [*] for the [*].
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11.3.2Enforcement of Product Trademarks. Each Party shall notify the other Party in writing promptly upon learning of any actual or alleged infringement by any Third Party of any Product Trademark of which it becomes aware. The Trademark Owner shall have the first right, but not the obligation, to control the prosecution of any such infringement in consultation with and subject to oversight by the JCC. If the Trademark Owner does not initiate an infringement action within [*] after learning of the infringement or within [*] prior to any applicable deadline for taking action, then the other Party shall have the right, but not the obligation, to bring such an action in consultation with and subject to oversight by the JCC. In the case of a jointly-owned trademark, neither Party shall have the right to settle any infringement action under this Section 11.3.2 in a manner that diminishes the rights or interests of, or imposes any liability on, the other Party without the prior Party Written Consent of such other Party. The expenses of defense, settlement and judgments in actions governed by this Section 11.3.2 shall be [*] (to the extent not reimbursed through recoveries from such litigation) to the extent related to the [*] Markets, and shall be borne solely by [*] to the extent related to the [*]. The costs and expenses of the Party bringing suit under this Section 11.3.2 shall be reimbursed first out of any damages or other monetary awards recovered in favor of Genmab or SGI (if such recovery is less than the Parties’ aggregate costs and expenses incurred in such action, such recovery shall be allocated between the Parties on a pro rata basis based on their relative costs and expenses incurred in such action). The Party that does not control the action or suit hereunder shall cooperate with the controlling Party in connection with such action or suit. Any damages or other monetary awards remaining after payment of the Parties’ expenses shall be allocated between the Parties in the same proportion as they share in Net Profit/Net Loss hereunder to the extent related to the [*] Markets, and shall be retained solely by [*] to the extent related to the [*].
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11.4Domain Names. Subject to Section 11.2.1, the Parties shall use a common domain name incorporating the same brand name for the Product worldwide. The Parties shall jointly select domain names and will coordinate filing and registering such names; provided, that all such registered domain names shall be owned solely by and registered in the name of one Party as provided in Section 11.2.1.
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11.5No Implied Licenses. No right or license under any Genmab Technology or SGI Technology or any Product Trademark or Other Mark is granted or shall be granted by implication as a result of the respective rights of the Parties under this Agreement. All such rights or licenses are or shall be granted only as expressly provided in this Agreement (or the Collaboration Agreement).
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11.6Defense of Third Party Patent Claims. Each Party shall notify the other Party promptly upon learning of any actual or alleged Patent infringement claim brought by a Third Party against a Party or any of its Affiliates with respect to activities conducted by such Party or its Affiliates for the Product hereunder (hereinafter “Patent Infringement Claims”). Upon learning of any Patent Infringement Claim, [*] shall take all reasonable and appropriate steps to resolve the Patent Infringement Claim, and give reasonable consideration to the other Party’s suggestions regarding such Patent Infringement Claim. All Out of Pocket Costs incurred in
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bringing, maintaining and prosecuting any action described in this Section 11.6 (including for outside counsel) shall be (a) included in Patent Costs and included in the calculation of [*]. The non-resolving Party shall cooperate with the resolving Party in connection with any Patent Infringement Claims and all Out of Pocket Costs incurred for outside counsel and other Out of Pocket Costs incurred by such Party in providing such cooperation shall be (i) included in Patent Costs and included in the calculation of [*].
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11.7Amendment of Collaboration Agreement IP Provisions. For clarity, Article [*] of the Collaboration Agreement remain in full force and effect, subject to the following amendments:
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11.7.1Section [*] of the Collaboration Agreement is hereby amended and restated in its entirety as follows:
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“[*]      Subject to the oversight of the JSC under Section [*], Section [*], Section [*] and Section [*], in the event [*], each Party shall be responsible for and shall control the preparation, filing, prosecution, grant, maintenance and defense, of any patents and patent applications claiming [*] owned solely by it in accordance with Section [*] and [*], prepare, file, prosecute and maintain such patent rights in good faith consistent with its customary patent policy and its reasonable business judgment.”
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11.7.2Section [*] of the Collaboration Agreement is hereby amended by inserting the following new Section [*] after Section [*]:
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“[*]     Notwithstanding the foregoing, the Parties agree that pursuant to the potential Commercialization of the Collaboration Product known as “Tisotumab Vedotin,” which is defined as the “Product” in the Joint Commercialization Agreement between the parties dated October 19, 2020 (“Tisotumab Vedotin”), all (a) patent applications and patents listed under [*], and all patent applications and patents listed under [*], (b) [*], and (c) future patents issued from any such patent applications referred to in (a) or (b) above, and future patents issued from any continuation, continuation-in part [*], or divisional of any of the foregoing patent applications or any patent applications from which the patents in (a) or (b) issued, in each case to the extent Controlled by [*], and in each of (a) through (c) that are necessary or reasonably useful for the Development, manufacturing, or Commercialization of Tisotumab Vedotin (collectively, the [*]), shall be treated as if they were [*] pursuant to the procedures described in Section [*].”
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11.7.3Section [*] of the Collaboration Agreement is hereby amended [*] as follows:
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“[*] shall have the right, [*], to determine the appropriate course of action to enforce patents claiming [*] owned solely by [*] in accordance with Section [*] and the [*] Patent Rights, or otherwise to abate the infringement thereof, to take (or refrain from taking) appropriate action to enforce the [*] Patent Rights, to control any litigation or other enforcement action and to enter into, or permit, the settlement of any such litigation or other enforcement action with respect to the [*] Patent Rights. All monies recovered upon the final judgment or settlement of any such suit to enforce any [*] Patent Rights shall be
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retained by [*]. [*] shall fully cooperate with [*], in any action to enforce the [*] Patent Rights.
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Notwithstanding the foregoing, the following shall apply if enforcement of the [*] Patent Rights arises in connection with a [*]: The Parties shall, subject to oversight of the JSC under Section 3.2.2(f), jointly determine the appropriate course of action (i) to enforce [*] and the [*] Patent Rights or otherwise to abate the infringement thereof, (ii) to take (or refrain from taking) appropriate action to enforce the [*] Patent Rights, (iii) to control any litigation or other enforcement action and (iv) to enter into, or permit, the settlement of any such litigation or other enforcement action for the [*] Patent Rights, in each of (i) through (iv) with respect to a [*]. The costs for any such actions shall be [*]. All monies recovered upon the final judgment or settlement of any such suit to enforce any [*] Patent Rights with respect to a [*] shall be [*]. Notwithstanding the foregoing, if the JSC cannot agree on enforcement of the [*] Patent Rights, with respect to a [*], the Party [*] shall have final decision-making authority with respect to enforcement [*].
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In the case of an [*], if [*] fails to exercise its rights under this Section [*] to take any action to enforce the [*] Patent Rights or control any litigation with respect to the [*] Patent Rights with respect to the manufacture, use or sale by Third Parties of [*] within a period of [*] after the Parties receive reasonable notice of the infringement of the [*] Patent Rights, then [*] shall have the right to bring and control any such action [*], and permit the settlement of any such litigation or other enforcement action with respect to the [*] Patent Rights, so long as this does not adversely affect [*] rights under this Agreement. In such case, [*] recovered upon the final judgment or settlement of any such suit to enforce any [*] Patent Rights shall be [*]. In such a case, [*] shall cooperate fully with [*], in its efforts to enforce the [*] Patent Rights, including being joined as a party to such action if necessary. In no event may [*] assert an argument or settle a suit in a manner which would render a claim in the [*] Patent Rights invalid or unenforceable [*].”
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		11.7.4
	Section [*] of the Collaboration Agreement is hereby amended [*] as

follows:
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“[*] shall have the right, [*], to determine the appropriate course of action to enforce
[*] ([*] Patent Rights, and other than its interest in [*]), or otherwise to abate the infringement thereof, to take (or refrain from taking) appropriate action to enforce such [*] Patents, to control any litigation or other enforcement action and to enter into, or permit, the settlement of any such litigation or other enforcement action with respect to such [*] Patents.”
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11.8Patent Costs. The Parties agree to handle Patent Costs for the Product under this Agreement such that SGI or Genmab [*].
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11.9Court or Government Order or Decree. Notwithstanding any other provision in this Agreement, neither Party shall be required to take any action pursuant to this ARTICLE 11 that it reasonably determines in its sole judgment and discretion conflicts with or violates any court or government order or decree or any agreement with any Governmental Authority that it is then subject to or otherwise may create legal liability on the part of it.
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ARTICLE 12
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AMENDMENT TO EXCLUSIVITY PROVISIONS OF COLLABORATION AGREEMENT
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12.1Overview. Without limiting any other amendments to the terms or conditions of the Collaboration Agreement that may be contained in this Agreement, the Parties agree that the Collaboration Agreement is hereby further amended as provided in this ARTICLE 12.
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12.2Amendments to Section 1.1 of the Collaboration Agreement. Section 1.1 of the Collaboration Agreement is hereby amended by inserting the following definitions following Section 1.1.132 thereof:
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“1.1.133“Acquired Party” has the meaning set forth in Section 3.4.4(a).
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1.1.134“Cease Activities for the Competing Product” has the meaning set forth in Section 3.4.3(ii).
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1.1.135“Competing Party” has the meaning set forth in Section 3.4.3.
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1.1.136“Grace Period Activities” has the meaning set forth in Section 3.4.3(ii).
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1.1.137“Divest” means, with respect to a Competing Product, (a) the sale of all right, title and interest in such Competing Product, including all technology, intellectual property and other assets relating solely thereto, to a Third Party, without the retention or reservation of any rights, license or interest (other than solely an economic interest) by the selling entity or its Affiliates; or (b) the complete termination or withdrawal of such Competing Product, or shut-down of such development program for such Competing Product, such that no technology, intellectual property or other asset solely relating thereto is used by the terminating entity or its Affiliates. “Divestiture” shall have a correlative meaning.
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1.1.138“Divestment Period” has the meaning set forth in Section 3.4.3(i).
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1.1.139“Genmab Sensitive Information” has the meaning set forth in Section 3.4.4(c).
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1.1.140“Required Notice Date” means, with respect to a Competing Product that a Competing Party obtains ownership, license, or other rights to as a result of a relevant transaction consummated by such Competing Party, [*] days after the consummation thereof.
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1.1.141“Segregate” means, with respect to a Competing Product, to use diligent efforts to segregate, consistent with best industry practices, the research, development, manufacture and commercialization activities relating to such Competing Product from research, Development, Manufacture and Commercialization with respect to any Licensed Product under this Agreement (including for clarity the “Product” as defined under the Joint Commercialization Agreement entered into between the Parties dated October 19, 2020 (the “Commercialization Agreement”)), including using diligent efforts to ensure that: (a) no personnel involved in performing the research, development, manufacture or commercialization of such Competing Product have access to [*] (provided, that management personnel may [*]); and (b) no personnel involved in performing the research, Development, Manufacture or Commercialization of any Licensed Product have access to [*] (provided, that management personnel may [*]).
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1.1.142“SGI Sensitive Information” has the meaning set forth in Section
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3.4.4(b).”
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12.3Amendments to Section 3.4 of the Collaboration Agreement. Section 3.4 of the Collaboration Agreement is hereby amended and restated in its entirety as follows:
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“3.4Exclusivity
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3.4.1Except as expressly set forth in this Agreement or the Commercialization Agreement, the Parties and their Affiliates shall work exclusively with each other to develop and commercialize Exclusive Products (for which the Opt-In Period has not yet expired) and Collaboration Products solely in accordance with the terms of this Agreement. Subject to the terms of this Agreement and the Commercialization Agreement, each Party shall be free to work alone or with Affiliates or Third Parties to research, develop, and commercialize any product that is not a Competing Product.
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3.4.2Except as expressly permitted in this Section 3.4, neither Party nor any of their respective Affiliates shall, directly or indirectly, perform research, conduct clinical development of, commercialize, or otherwise acquire rights to any Competing Product.
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3.4.3If a Party or any of its Affiliates, either as a result of an acquisition by such Party or its Affiliates of a Third Party or any of its business or assets, obtains ownership, license or other rights to a Competing Product (or, as a result of such acquisition, has as an Affiliate that has an ownership, license or other rights to a Competing Product), then such Party or its Affiliate (the “Competing Party”) shall promptly notify the other Party in writing no later than the Required Notice Date that it is electing to:
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(i)Divest itself of such Competing Product via a transaction in which such Party and its Affiliates no longer has an economic interest in the future sales of the Competing Product and notify the other Party in writing of such Divestiture; provided, that such Divestiture must be completed prior to (x) the expiration of [*] following the Required Notice Date in the case of a Competing Product that is [*], and (y) at least [*] prior to [*], in the case of a Competing Product that is [*] (the “Divestment Period”); or
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(ii)(A) commit not to, and to cause its Affiliates not to, directly or indirectly, by itself or with a Third Party, market, promote, sell, manufacture or distribute for commercial sale such Competing Product, or (B) in the case of any such Competing Product with respect to which [*], cease engaging in such prohibited activities with respect to such Competing Product (in which event the Competing Party shall have a period of [*] after the Required Notice Date to sell off existing inventory or work-in-progress of the Competing Product) (the “Grace Period Activities”) ((A) and (B) collectively, “Cease Activities for the Competing Product”).
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If the Competing Party notifies the other Party that it elects to Cease Activities for the Competing Product as set forth hereunder, the Competing Party shall immediately start to Cease Activities for the Competing Product. For clarity, if the Parties mutually agree in writing to an alternative arrangement (such as bringing the Competing Product under this Agreement or transitioning the Competing Party to a passive role hereunder), the Competing Party shall not be in breach of Section 3.4 to the extent it carries out the mutually agreed alternative arrangement. Moreover, in circumstances where the Competing Party notifies the other Party that it intends to Divest the Competing Product pursuant to Section 3.4.3(i) and fails despite using Commercially Reasonable Efforts to complete such
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Divestiture within the Divestment Period, the Competing Party shall not be in breach of this Section 3.4 if it Ceases Activities for the Competing Product after the end of the Divestment Period (provided, that in such circumstance the Competing Party shall have no further right to conduct the Grace Period Activities).
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3.4.4Change of Control
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(a)Notwithstanding anything to the contrary herein, any intellectual property Controlled by any Person that becomes an Affiliate of a Party (the “Acquired Party”) as a result of a Change of Control of such Acquired Party or its Affiliate shall not be Genmab Technology or SGI Technology, as applicable, unless (i) such technology or rights had been Controlled, prior to the Change of Control, by such Acquired Party or its Affiliate(s) that were Affiliate(s) prior to the Change of Control or (ii) with respect to any of the foregoing technology covered by patent rights, at least one named inventor was employed by such Acquired Party or its then Affiliate(s) immediately prior to the public announcement of the transaction(s) giving rise to such Change of Control.
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(b)Following any Change of Control of Genmab or its Affiliates, in the event the applicable acquirer has, or has rights or an interest in, at the time of the Change of Control, a Competing Product, Genmab shall be required to, and shall cause its Affiliates to: (i) Segregate such Competing Product and (ii) establish reasonable firewalls to prevent disclosure of non-public plans or non- public information relating to the Development, Manufacturing or Commercialization of any Licensed Product or any Confidential Information of SGI (collectively, the “SGI Sensitive Information”) beyond personnel of Genmab or its Affiliates who continue to actively perform obligations under this Agreement, and to prevent the dissemination of SGI Sensitive Information disclosed after the Change of Control of Genmab or its Affiliates to such acquirer or its Affiliates. For clarity, the foregoing will not apply to any SGI Sensitive Information that is not Confidential Information under Section 13.1 or “Confidential Information” (as such term is defined under the Commercialization Agreement). Notwithstanding the foregoing, following such Change of Control of Genmab or its Affiliates, Genmab will be allowed to provide information regarding the amount of financial payments (including the underlying reports provided hereunder) from SGI to Genmab hereunder to such acquirer or its Affiliates.
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(c)Following any Change of Control of SGI or its Affiliates, in the event the applicable acquirer has, or has rights or an interest in, at the time of the Change of Control, a Competing Product, SGI shall be required to, and shall cause its Affiliates to (i) Segregate such Competing Product and (ii) establish reasonable firewalls to prevent disclosure of non-public plans or non-public information relating to the Development or Commercialization of any Licensed Product or any Confidential Information of Genmab (collectively, the “Genmab Sensitive Information”) beyond personnel of SGI or its Affiliates who continue to actively perform obligations under this Agreement, and to prevent the dissemination of Genmab Sensitive Information disclosed after the Change of Control of SGI or its Affiliates to such acquirer or its Affiliates. For clarity, the foregoing will not apply to any Genmab Sensitive Information that is not Confidential Information under Section 13.1 or “Confidential Information” (as such term is defined under the Commercialization Agreement). Notwithstanding the foregoing, following such Change of Control of SGI or its Affiliates, SGI will be allowed to provide the information regarding the amount of financial payments
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(including the underlying reports provided hereunder) from Genmab to SGI hereunder to such acquirer or its Affiliates.
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3.4.5In the period either prior to SGI’s first Opt-In Notice or after any relevant Opt-Out Date, Genmab may use antibody-drug conjugates targeted to Tissue Factor, including ADCs, in studies designed to evaluate, research, develop or commercialize an antibody-drug conjugate with a target other than Tissue Factor; provided, that such studies are non-clinical in nature. At any other time during the Term, neither Party may use antibody-drug conjugates targeted to Tissue Factor in such studies without the prior written consent of the other Party, such consent not to be unreasonably withheld. The Parties agree that any ongoing activities initiated prior to SGI’s first Opt-In Notice may be finalized according to the contemplated plan.
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3.4.6Notwithstanding anything to the contrary in this Agreement, Genmab shall be permitted to develop and commercialize, alone or with a partner, a [*] with specificity against Tissue Factor for diagnostic purposes. Genmab shall ensure that any agreements with Third Parties pertaining to the development, commercialization or licensing of such products contain provisions permitting the Parties to use such products to support the development and commercialization of Licensed Products, if appropriate. At any time during the Term, Genmab shall be permitted to use a [*] with specificity against Tissue Factor for research purposes. Following an Opt-Out Notice by SGI or if SGI does not exercise its Opt-In Right for the first Exclusive Product, Genmab shall be permitted to develop, alone or with a partner, a [*] with specificity against Tissue Factor for any purpose. Following an Opt-Out Notice by SGI or if SGI does not exercise its Opt-In Right for the first Exclusive Product, Genmab shall, alone or with a partner, be permitted to commercialize such [*] with specificity against Tissue Factor for any purpose after [*] of the date of First Commercial Sale in a Major Market Country of an Exclusive Product or Genmab Product.”
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ARTICLE 13 CONFIDENTIALITY
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13.1Confidentiality.
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13.1.1Confidential Information. For purposes of this Agreement, “Confidential Information” means all Information, documents (including unpublished patent applications), trade secrets, or materials supplied by the other Party or any of its Affiliates (the “Disclosing Party”) under this Agreement, whether disclosed orally, visually, in writing or in any tangible or electronic form or media, that is confidential or proprietary and is marked or otherwise identified as “Confidential” or which the receiving Party or any of its Affiliates (the “Receiving Party”) should reasonably recognize as being confidential. Confidential Information may be owned by the Disclosing Party or held by the Disclosing Party under an obligation of confidentiality to a Third Party. The terms of this Agreement and Information related directly to the Product shall be the Confidential Information of both Parties; provided, that Drug Conjugation Technology (as such term is defined in the Collaboration Agreement) will be Confidential Information of SGI. Confidential Information of a Party may also include information relating to such Party’s or its Affiliates’ research programs, development, marketing, manufacturing, regulatory matters, business practices and finances. Information shall not be considered Confidential Information to the extent that such Information:
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(a)has been published or otherwise entered the public domain other than by breach by the Receiving Party of this ARTICLE 13 or directly or indirectly under any other agreement between the Parties that imposed obligations of confidentiality;

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(b)has been disclosed to the Receiving Party by a Third Party that is not breaching any duty of confidentiality by disclosing the same; provided, that such Information was not obtained by such Third Party directly or indirectly from the Disclosing Party on a confidential basis;
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(c)prior to disclosure by the Disclosing Party under this Agreement, the Collaboration Agreement or directly or indirectly under another agreement between the Parties that imposed obligations of confidentiality, was already in the possession of the Receiving Party, as demonstrated by the Receiving Party by competent written evidence; or
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(d)was developed independently of and without reference to the Disclosing Party’s Confidential Information, as demonstrated by the Receiving Party by competent written evidence.
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13.1.2Non-Disclosure Obligations. Except as otherwise provided in this ARTICLE 13, during the Term and for a period of [*] thereafter, each Party shall maintain in confidence, and use only for purposes as expressly authorized and contemplated by this Agreement, all Confidential Information supplied by or on behalf of the other Party or its Affiliates under this Agreement. Each Party shall use at least reasonable care, and in no event less than the same standard of care as it uses to protect its own Confidential Information, to ensure that its and its Affiliates’ employees, agents, consultants and clinical investigators only make use of the other Party’s or its Affiliates’ Confidential Information for purposes as expressly authorized and contemplated by this Agreement or the Collaboration Agreement and do not make any unauthorized use or disclosures of such Confidential Information.
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13.1.3Permitted Disclosures. Notwithstanding Section 13.1.2, Confidential Information may be disclosed by the Receiving Party solely to the extent such Confidential Information:
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(a)is permitted to be disclosed by prior written consent of the other Party;
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(b)is disclosed in the filing, prosecution or maintenance of patents solely in accordance with this Agreement or the Collaboration Agreement, provided, that (i) such disclosure may be only to the extent reasonably necessary for such purpose and (ii) the Receiving Party complies with the obligations set forth in Section 13.1.2;
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(c)is disclosed to a Regulatory Authority in accordance with this Agreement or as required by the Applicable Law to obtain or maintain a Regulatory Approval; provided, that such disclosure may be only to the extent reasonably necessary for such purpose;
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(d)is deemed necessary by the Receiving Party to be disclosed to such Party’s financial advisors, attorneys or independent accountants for the sole purpose of enabling such financial advisors, attorneys or independent accountants to provide professional advice to the Receiving Party; provided, that such Third Parties are bound by confidentiality and non-use obligations customary for the type of professional and are advised that the information being disclosed is confidential;
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(e)is deemed necessary by the Receiving Party to be disclosed to accredited investors, lenders or bona fide potential acquirers or merger candidates in the context of due diligence investigations of such Party solely for the purpose of evaluating a potential business relationship; provided, that such Third Parties are bound by confidentiality and non-use obligations (i) customary for the type of 

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recipient in the case of all recipients who are not potential acquirers or merger candidates, and (ii) contained in this Agreement, in the case of potential acquirers or merger candidates, but in no event pursuant to (i) or (ii) for a term of less than ten (10) years, and are advised that the information being disclosed is confidential;
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(f)is deemed necessary by the Receiving Party to be disclosed to such potential Third Party(ies) for a Commercial License or Third Party License Agreement as permitted hereunder; provided, that any such potential Third Party is bound by obligations of confidentiality and limitations on use of such Confidential Information contained herein;
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(g)is disclosed to a potential or bona fide collaborator or manufacturing, development or sales contractor or partner (including any Approved Subcontractor) but only to the extent directly relevant to the collaboration, contract or partnership;
provided, that such collaborator, contractor or partner is bound by obligations of confidentiality and limitations on use of such Confidential Information contained herein; or
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(h)is disclosed in accordance with Section 13.1.4.
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Notwithstanding the disclosures permitted under subsections (a)-(h), such Confidential Information shall remain otherwise subject to the non-disclosure and non-use provisions of this ARTICLE 13.
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13.1.4Compelled Disclosure. Without limiting Section 13.1.3, if a Party is required by Applicable Law or the rules of any Securities Exchange to disclose Confidential Information of the other Party or any of its Affiliates, the Party being compelled shall (if not prohibited by Applicable Law from doing so) promptly inform the other Party of the disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure obligations. Without limiting Section 13.1.3, each Party agrees that it shall cooperate fully and in a timely manner with the other Party with respect to all disclosures to the Securities and Exchange Commission and any other governmental or regulatory agencies or Securities Exchanges, including requests for confidential treatment of Confidential Information of either Party included in any such disclosure.
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13.2Publicity. Neither SGI nor Genmab will, without the prior written consent of the other Party, issue any press release or make any other public announcement or furnish any statement to any Person (other than either Parties’ respective Affiliates) concerning the existence of this Agreement, its terms and the transactions contemplated hereby, except for disclosures made in compliance with ARTICLE 13.
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13.3Securities Filings. In the event either Party proposes to file with the U.S. Securities and Exchange Commission or the securities regulators of any state or other jurisdiction under the Securities Act of 1933, the Exchange Act, or any other applicable securities law (the “Securities Exchanges”) a registration statement or any other disclosure document which describes or refers to this Agreement, such Party shall notify the other Party of such intention and shall provide the other Party with a copy of relevant portions of the proposed filing not less than [*] Business Days prior to such filing (and any revisions to such portions of the proposed filing a reasonable time prior to the filing thereof), including any exhibits thereto relating to this Agreement, and shall use reasonable efforts to obtain confidential treatment of this Agreement that the other Party requests be kept confidential, consistent with such Party’s disclosure obligations under applicable securities laws.
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13.4Publications. Except as otherwise permitted pursuant to this ARTICLE 13, neither Party may publish, present or announce results of the Development of the Product either orally or in writing (a 

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“Publication”) without complying with the provisions of this Section 13.4. The other Party shall have [*] days from receipt of a proposed Publication to provide comments or proposed changes to the publishing Party. The publishing Party shall take into account the comments or proposed changes made by the other Party on any Publication and shall agree to designate employees or others acting on behalf of the other Party as co-authors on any Publication describing results to which such persons have contributed in accordance with standards applicable to authorship of scientific publications. If the other Party reasonably determines that the Publication would entail the public disclosure of such Party’s Confidential Information or of a patentable invention, submission of the concerned Publication to Third Parties shall be delayed for such period as may be reasonably necessary for deleting any such Confidential Information of the other Party (if the other Party has requested deletion thereof from the proposed Publication) or the drafting and filing of a patent application covering such invention; provided, such additional period shall not exceed [*] days from the date the publishing Party first provided the proposed Publication to the other Party. In addition, any publications or presentations in any medium with respect to the Product or activities under this Agreement must comply with the publications charter agreed by the Parties under the Collaboration Agreement, as such charter may be updated or amended by the JMAT from time to time consistent with this Section 13.4 and the other terms and conditions of this Agreement (the “Publication Charter”). As amended, such Publication Charter shall apply to the Product, only, and not to any other Licensed Product under the Collaboration Agreement. In the event of a conflict between the terms of the Publication Charter and the terms of this Agreement, the terms of this Agreement shall prevail.
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13.5Existing Confidentiality Agreement. The Parties acknowledge that Article 13 of the Collaboration Agreement contains confidentiality and non-use provisions that shall remain in full force and effect solely with respect to information not related to the Product and the confidentiality provisions in this Agreement shall govern all information related to the Product from and after the Effective Date. Notwithstanding the foregoing, in the event of any conflict between the terms of Article 13 of the Collaboration Agreement and the terms of this Agreement, the terms of this Agreement shall control with respect to the matters related to the Product.
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ARTICLE 14 TERM AND TERMINATION
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14.1Term. The term of this Agreement (the “Term”) shall become effective on the Effective Date and shall remain in effect until expired or terminated as provided in this ARTICLE 14.
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14.2Expiration. This Agreement shall expire on country-by-country basis, on the date of complete and permanent cessation of Development, Commercialization and any other sale of Product in or for such country. For clarity, this Agreement shall expire in its entirety upon complete and permanent cessation of Development, Commercialization and any other sale of Product in all countries in the Territory. Upon expiration of this Agreement with respect to a country, the Collaboration Agreement will automatically terminate with respect to the Product with respect to such country, and neither Party shall Develop, Commercialize or otherwise sell the Product in or for the relevant country without the prior written agreement of the other Party.
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14.3Material Breach.
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14.3.1Breach. If either Party (the “Non-Breaching Party”) believes that the other Party (the “Breaching Party”) has materially breached its obligations under this Agreement, then the Non-Breaching Party may deliver notice of such material breach to the Breaching Party (a “Default Notice”). Such Default Notice may include an allegation from the Non-Breaching

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Party that the alleged material breach by the Breaching Party [*] (a “Fundamental Breach”) or is a material breach of the Agreement affecting only (a) [*], (b) [*], (c) [*], or (d) [*] (each of (a) through (d), an “Affected Region” and the material breach with respect to such Affected Region, a “Regional Material Breach”). For clarity, it is possible that a material breach of this Agreement by a Party with respect to one or more countries may constitute a Fundamental Breach of this Agreement if the relevant material breach fundamentally frustrates the purpose of the Agreement as a whole. If the Breaching Party does not dispute that it has materially breached its obligations under this Agreement, then if the Breaching Party fails to cure such breach within [*] days after receipt of the Default Notice, or if such cure cannot reasonably be fully achieved within such [*] period and the Breaching Party has failed to commence curing such breach using diligent efforts to cure such breach as soon as reasonably practicable (not to exceed a total of [*] additional days), then, Section 14.3.2 shall apply. If a cure cannot reasonably be fully achieved within [*] days of receipt of a Default Notice and the Breaching Party has commenced using diligent efforts to cure such breach in accordance with this Section 14.3.1, Section 14.3.2 shall not apply for such time as is reasonably necessary to fully achieve the relevant cure so long as the Breaching Party is using diligent efforts to cure such breach; provided, that in no event shall the cure period extend for more than [*] after the date upon which the breaching Party receives the notice of such material breach from the other Party. If the Breaching Party disputes that it has (i) materially breached its obligations under this Agreement, (ii) failed to cure such breach, or (iii) failed to commence curing such breach using diligent efforts to cure such breach as provided in this Section 14.3.1, in each case, such dispute shall be resolved in accordance with ARTICLE 16. If, as a result of the application of such arbitration procedures, the Breaching Party is determined to be in material breach of its obligations under this Agreement (including, if applicable, a Fundamental Breach or a Regional Material Breach) and has failed to cure such breach within the foregoing time period as applicable (an “Adverse Ruling”), then, if the Breaching Party fails to complete the actions specified by the Adverse Ruling to cure such material breach within [*] after such ruling, or if such compliance cannot be fully achieved within such [*] and the Breaching Party has failed to commence compliance or has failed to use diligent efforts to achieve full compliance as soon thereafter as is reasonably possible, then Section 14.3.2 shall apply. During the pendency of any such dispute, all rights, remedies and cure periods relating to the dispute and any alleged breach shall be tolled, and all of the terms and conditions of this Agreement will remain in effect and the Parties will continue to perform all of their respective obligations hereunder.
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14.3.2Non-Breaching Party Right.
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(a)Subject to Section 14.3.1, in the event of a Fundamental Breach, then upon written notice by the Non-Breaching Party, the Breaching Party will be deemed to have provided an Opt-Out Notice for the Product for purposes of Section 5.10 of the Collaboration Agreement and Sections 5.10.3 and 5.10.4 of the Collaboration Agreement shall apply. If a Fundamental Breach occurs and the Non-Breaching Party exercises its rights pursuant to Section 14.3.1 with respect thereto, then the second, third and fourth sentences of Section 5.10.3 of the Collaboration Agreement shall not apply, but instead the remainder of this Section 14.3.2(a) shall apply: The Breaching Party will not be refunded or repaid any amounts it has paid for the Development or Commercialization of the Product. In addition, the Breaching Party will remain responsible for its share of Development Costs and Allowable Expenses incurred with respect to the Product through [*] following the date of the Non-Breaching Party’s exercise of its rights pursuant to this Section 14.3.2(a), to the extent such costs and expenses were incurred pursuant to applicable Approved Plans. Furthermore, for [*] after the date of such termination, the Breaching Party shall provide development, consultation or support work for the Product, as reasonably requested by the Non-Breaching Party, and the Non-Breaching Party shall reimburse the Breaching Party’s FTE Costs for such work at the annual rate per FTE as in force between the Parties at such date.

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(b)Subject to Section 14.3.1, in the event of a Regional Material Breach, then upon written notice by the Non-Breaching Party, the Affected Region(s) shall be deemed part of (i) if Genmab is the Non-Breaching Party, the “Genmab Royalty Territory” (operating mutatis mutandis as if such Affected Region(s) were included in the Royalty Territory except that Genmab would have the rights and obligations as if Genmab were SGI under this Agreement with respect to the Product in the Affected Region) for all purposes under this Agreement (and shall no longer be a Genmab Major Market, SGI’s Major Market(s) or Royalty Territory, as applicable), and (ii) if SGI is the Non-Breaching Party, the Royalty Territory for all purposes under this Agreement (and shall no longer be Genmab’s Major Market or SGI’s Major Market(s)) and shall be treated in the same manner as any other countries in the Royalty Territory; provided, however, that in each of (i) and (ii), as applicable, all amounts otherwise payable to the Breaching Party with respect to Net Sales of the Product in the Affected Region that would apply pursuant to Section 5.2 shall be reduced by [*]; provided, further, that in no event shall the royalty rates set forth in Section 5.2.1 be reduced pursuant to Section 5.2.2, Section 5.2.3 and this Section 14.3.2(b) by more than [*], in the aggregate.
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(c)If the Non-Breaching Party exercises its rights pursuant to Section 14.3.2(b), then promptly thereafter, the Parties will work together to and complete a transfer and assignment to the Non-Breaching Party of all regulatory documents, contracts, licenses, collaborations, materials and information that are reasonably necessary for the Non- Breaching Party to exercise such rights, which transfer and assignment shall be at the Breaching Party’s sole cost and expense (which shall include the FTE Costs and Out of Pocket Costs incurred by the Non-Breaching Party to effect such transfer and assignment). In such case, the Breaching Party shall use Commercially Reasonable Efforts to transition all activities to be transferred or assigned to the Non-Breaching Party pursuant to this Section 14.3.2(c) as promptly as practicable.
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(d)No remedy referred to in this Agreement is intended to be exclusive unless explicitly stated to be so, but each shall be cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law or equity. Without limiting Section 14.3.1 or ARTICLE 16, in addition to the other rights of the Non-Breaching Party under this Section 14.3.2, the Non-Breaching Party may offset against amounts payable to the Breaching Party pursuant to this Agreement any damages resulting from such material breach.
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14.3.3No Termination. For clarity, unless otherwise expressly set forth in Section 14.3.2, the Parties agree that this Agreement will not be terminated pursuant to this Section 14.3 and the Breaching Party shall continue to be obligated to perform any activities not assumed by the Non-Breaching Party pursuant to Section 14.3.2 and shall continue to share in Net Profit/Net Loss or receive or pay royalties with respect to the Royalty Territory, as applicable, as set forth in this Agreement (subject to any adjustment made pursuant to Section 14.3.2 or as a result of dispute resolution hereunder).
14.4Termination of Co-Funding; Out-License of Product. For clarity, Section 5.10 of the Collaboration Agreement continues to apply to the Product; provided, the Opt-Out Date for the Product will be effective [*] after the Non-Continuing Party provides written notice to the other Party (such notice being irrevocable once provided), and the Continuing Party shall have the right to determine whether it will assume sole responsibility for Development and Commercialization of the Product. If the Continuing Party so elects, then, on and after the effective date of termination, the Product shall be treated as a Genmab Product (if Genmab is the Continuing Party) or an SGI Product (if SGI is the Continuing Party) and the terms of the Collaboration Agreement shall apply with respect to Product (including Section 5.10 of the Collaboration Agreement and the payment of royalties and milestones pursuant to Article 10 of the Collaboration Agreement).
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14.5Termination for Insolvency; Bankruptcy. Either Party may terminate this Agreement if, at any
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time, the other Party (a) shall file in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the appointment of a receiver or trustee of that Party or of its assets, (b) proposes a written agreement of composition or extension of its debts, (c) shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within [*] days after the filing thereof, (d) shall propose or be a party to any dissolution or liquidation, or (e) shall make an assignment for the benefit of its creditors. Notwithstanding the foregoing, the Parties intend for this Agreement and the licenses granted herein to come within Section 365(a) of the United States Bankruptcy Code, and notwithstanding the bankruptcy or insolvency of SGI, this Agreement and the licenses granted herein shall remain in full force and effect so long as Genmab shall remain in material compliance with the terms and conditions hereof.
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14.6Remedies. Except as otherwise expressly provided herein, termination of this Agreement (either in its entirety or with respect to one (1) or more countries or other jurisdiction(s)) in accordance with the provisions hereof shall not limit remedies that may otherwise be available in law or equity.
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14.7Accrued Rights; Surviving Obligations. Termination or expiration of this Agreement for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a Party prior to such termination or expiration. Such termination or expiration shall not relieve a Party from obligations that are expressly indicated to survive the termination or expiration of this Agreement. Without limiting the foregoing, ARTICLE 1 (to the extent defined terms are used in any other surviving provisions), the first sentence of Section 3.7.5, Section 3.7.6, Section 4.5, Section 5.7 (and with respect to amounts owed or rights accrued prior to termination or expiration of this Agreement, Sections 5.1-5.6), Section 8.1.2, the last sentence of Section 10.2, Section 10.3, Section 11.1, Section 11.2 (with respect to ownership of Product Trademarks and use of Other Marks), Section 11.5, Section 11.7, ARTICLE 12, ARTICLE 13, this ARTICLE 14, ARTICLE 15, ARTICLE 16 and ARTICLE 17 of this Agreement shall survive the termination or expiration of this Agreement for any reason. For the avoidance of doubt, (a) the license granted by Genmab to SGI under Section 2.4.2 of the Collaboration Agreement with respect to the Product is subject to the terms and conditions of this Agreement in all respects, including with respect to the payment of royalties hereunder during the Royalty Term on a country-by-country basis, (b) such license with respect to the Product for the Royalty Territory shall survive the expiration of the Royalty Term under this Agreement on a country-by-country basis as a royalty-free, fully paid-up license, and (c) references to the “Commercialization Plan” in Section 2.4.2 of the Collaboration Agreement shall be deemed to be references to this Agreement. For the further avoidance of doubt, (i) the license granted by SGI to Genmab under Section 2.1.2 of the Collaboration Agreement with respect to the Product is subject to the terms and conditions of this Agreement in all respects, including (in the event that one or more Affected Region(s) have been deemed part of the Genmab Royalty Territory pursuant to Section 14.3.2(b)) with respect to the payment of royalties hereunder during the Royalty Term on a country-by-country basis, (ii) such license with respect to the Product for the Genmab Royalty Territory shall survive the expiration of the Genmab Royalty Term under this Agreement on a country-by-country basis as a royalty-free, fully paid-up license, and (iii) references to the “Commercialization Plan” in Section 2.1.2 of the Collaboration Agreement shall be deemed to be references to this Agreement.
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ARTICLE 15 INDEMNIFICATION
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15.1Indemnification. Subject to Section 15.3, each Party shall defend, indemnify and hold harmless the other Party, its Affiliates and their respective directors, officers, employees and agents (collectively, such Party’s “Indemnitees”) from and against all liabilities, losses, damages, and expenses, including reasonable attorneys’ fees and costs (collectively, “Losses”), resulting from all Third Party claims, suits, actions, or 

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demands (collectively, the “Claims”) to the extent that such Losses are incurred, relate to or arise out of (a) the material breach of any provision of this Agreement or any other agreement between the Parties with respect to the Product by the indemnifying Party or its Affiliate (or the inaccuracy of any representation or warranty made by such Party in this Agreement), (b) the gross negligence, recklessness or willful misconduct of the indemnifying Party or its Affiliate in connection with the exercise of its rights or the performance of its obligations under this Agreement, or (c) solely with respect to SGI as the indemnifying Party, SGI’s Development, Manufacturing, and Commercialization of the Product in the Royalty Territory.
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15.2Indemnification Procedure.
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15.2.1A Party believing that it or its Indemnitees are entitled to indemnification under Section 15.1 (an “Indemnified Party”) shall give prompt written notification to the other Party (the “Indemnifying Party”) of the commencement of any Claim for which indemnification may be sought or, if earlier, upon the assertion of any such Claim by a Third Party (it being understood and agreed, however, that the failure by an Indemnified Party to give notice of a Claim as provided in this Section 15.2 shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement except and only to the extent that such Indemnifying Party is actually materially prejudiced as a result of such failure to give notice). Subject to any written agreement by the Parties to the contrary, within [*] after delivery of such notification, the Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the defense of such Claim with counsel reasonably satisfactory to the Indemnified Party. If a Party believes that a Claim presented to it for indemnification is one as to which the Party seeking indemnification is not entitled to indemnification under Section 15.1, it shall so notify the Party seeking indemnification.
15.2.2If the Indemnifying Party elects to assume the defense of such Claim, the Indemnified Party may participate in such defense with its own counsel, with the fees and expenses to be paid by the Indemnified Party, unless the representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual differing interests between such Indemnified Party and any other party represented by such counsel in such proceedings, in which case the reasonable fees and expenses of such counsel shall be paid by the Indemnifying Party.
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15.2.3In any event, the Indemnifying Party shall keep the other Party reasonably apprised of the status of such Claim and the defense thereof (including by providing copies of pleadings and such other documents, information, and correspondence reasonably requested by the Indemnified Party) and shall consider in good faith recommendations made by the Indemnified Party with respect thereto.
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15.2.4The Indemnified Party shall not agree to any settlement of such Claim without the prior Party Written Consent of the Indemnifying Party. The Indemnifying Party shall not agree to any settlement of such Claim or consent to any judgment in respect thereof that does not include a complete and unconditional release of the Indemnified Party from all liability with respect thereto or that imposes any liability or obligation on the Indemnified Party or adversely affects the Indemnified Party without the prior Party Written Consent of the Indemnified Party, which shall not be unreasonably withheld, conditioned or delayed.
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15.3Treatment of Manufacturing Losses. Notwithstanding anything to the contrary contained in this Agreement or the Collaboration Agreement, the Parties agree to share equally in that portion of Manufacturing Losses that is included as Allowable Expenses or Development Costs hereunder.
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15.4No Consequential or Punitive Damages. EXCEPT (A) FOR WILLFUL MISCONDUCT, (B) FOR A PARTY’S BREACH OF ITS OBLIGATIONS UNDER ARTICLE 13, AND (C) TO THE EXTENT ANY SUCH DAMAGES ARE REQUIRED TO BE PAID TO A THIRD PARTY AS PART OF A CLAIM 

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FOR WHICH A PARTY PROVIDES INDEMNIFICATION UNDER THIS ARTICLE 15 OR UNDER ANY RELATED MANUFACTURING AGREEMENT, NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUSINESS INTERRUPTION, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT, NEGLIGENCE, BREACH OF STATUTORY DUTY OR OTHERWISE, IN CONNECTION WITH OR ARISING IN ANY WAY OUT OF THE TERMS OF THIS AGREEMENT OR ANY RELATED MANUFACTURING AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR THE USE OF THE PRODUCT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
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15.5Effect on Collaboration Agreement. For clarity, the provisions of this ARTICLE 15 shall supersede the provisions of Section 18.2 of the Collaboration Agreement with respect to any right to indemnification by either Party for Claims to the extent that such Claims relate to or arise out of this Agreement or the performance of obligations under this Agreement with respect to the Product.
ARTICLE 16 DISPUTE RESOLUTION
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16.1 Disputes. The Parties recognize that disputes as to certain matters may from time to time arise that relate to decisions to be made by one or more of the Committees provided for herein or to the Party’s respective rights or obligations hereunder. It is the desire of the Parties to establish procedures to facilitate the resolution of disputes arising under this Agreement in an expedient manner by mutual cooperation and without resort to arbitration or litigation. To accomplish this objective, the Parties agree that, except for disputes regarding Party Tactical Matters or other matters for which a Party has final decision-making authority hereunder or as otherwise expressly provided in this Agreement, the dispute resolution procedures set forth in Section 23.3 of the Collaboration Agreement shall apply if and when a dispute arises under this Agreement; provided, that if such dispute is regarding a matter to be decided or agreed upon by a Committee as set forth herein, then the terms of Section 2.10.5 or Section 3.5.2, as applicable, shall first apply. For clarity, any dispute as to whether or not a matter (a) is a Party Tactical Matter, (b) requires Joint Committee Consent, (c) is a matter to which Section 2.10.5 applies, or (d) is subject to a Party’s final decision-making authority hereunder shall be resolved, in each case ((a) through (d)), in accordance with this Section 23.3 of the Collaboration Agreement; except, that with respect to all dispute resolution procedures for matters hereunder to be resolved in accordance with Section 23.1 of the Collaboration Agreement, notwithstanding any provision in Section 23.1 of the Collaboration Agreement to the contrary, (i) the Parties agree that they will not challenge the jurisdiction or authority of the arbitration panel to decide the dispute or the arbitrability or admissibility of the relevant dispute and (ii) any dispute submitted to the arbitrator(s) that fell within the decision-making responsibilities of any Committee, Team, or Working Group in accordance with the terms of this Agreement, the arbitrator(s) must render their decision applying the substantive law of the state of New York and based on the principles of maximizing the value and reasonable commercial potential of the Product.
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ARTICLE 17 MISCELLANEOUS
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17.1 [*]. To the extent permissible under Applicable Law, each Party agrees that, during the Term, neither it nor any of its Affiliates that participates in or is responsible for activities for the Product pursuant to this Agreement shall [*] conducted by the other Party or any of its Affiliates under this Agreement [*] with such other Party or Affiliate and [*]. For purposes of the foregoing, [*]. This Section 17.1 shall not 

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restrict either Party or any of its Affiliates from [*] or [*].
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17.2Maintenance of Records. Each Party shall, and shall require its Affiliates to, and shall use Commercially Reasonable Efforts to cause its permitted sublicensees and Approved Subcontractors to, keep and maintain accurate and complete records of activities performed by or on behalf of such Party or any of its Affiliates, permitted sublicensees and Approved Subcontractors in connection with its or their activities under this Agreement (including records for Patent purposes), as well as all records required by Applicable Law with respect to the Product, and shall make copies of such records available to the other Party upon request. The Parties’ and their Affiliates’ obligations under this Section 17.2 shall continue for the longer of (a) five (5) years following the activity with respect to which the applicable records relate and (b) any applicable time period under Applicable Law.
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17.3Force Majeure. No Party (or any of its Affiliates) shall be held liable or responsible to the other Party (or any of its Affiliates), or be deemed to have defaulted under or breached the Agreement, for failure or delay by such Party (or any of its Affiliates) in fulfilling or performing any term of the Agreement when such failure or delay is caused by or results from causes beyond the reasonable control of the affected Party (or any of its Affiliates), including fire, floods, embargoes, war, acts of war (whether war be declared or not), insurrections, epidemics, pandemics, riots, civil commotions, acts of God, earthquakes, or omissions or delays in acting by any Governmental Authority (“Force Majeure”); provided, however, that the affected Party shall (a) promptly notify the other Party in writing of the existence of the Force Majeure, and (b) exert all Commercially Reasonable Efforts to eliminate, cure or overcome any such Force Majeure and to resume performance hereunder promptly. Notwithstanding the foregoing, to the extent that an event of Force Majeure continues for a period in excess of [*], the affected Party shall promptly notify in writing the other Party of such continued event of Force Majeure and the Parties shall negotiate in good faith (i) a resolution of the event of Force Majeure, if possible, (ii) an extension by mutual agreement of the time period to resolve, eliminate, cure, or overcome such Force Majeure, (iii) an amendment of this Agreement to the extent reasonably possible, or (iv) an early termination of this Agreement. If the Parties do not reach such resolution within an additional [*] period (or such period is not extended by mutual agreement of the Parties), the non-affected Party may terminate this Agreement on [*] days advance written notice to the other Party. This Section 17.3 supersedes Section 19.1 of the Collaboration Agreement with respect to the Product.
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17.4Assignment. This Agreement may not be assigned or otherwise transferred, nor, except as expressly provided hereunder, may any right or obligations hereunder be assigned, transferred or delegated to any Third Party by either Party without the consent of the other Party, such consent not to be unreasonably withheld, conditioned or delayed; provided, however, that either Party may, without such consent but with notification, assign this Agreement and its rights and obligations hereunder [*]. Any permitted assignee shall assume all rights and obligations of its assignor under this Agreement. Any attempted assignment of this Agreement not in accordance with this Section 17.4 shall be void and of no effect. This Agreement shall be binding on, and inure to the benefit of, each Party, its successors and permitted assigns. This Section 17.4 expressly supersedes Section 20.1 of the Collaboration Agreement and shall apply mutatis mutandis with respect to the assignability of the Collaboration Agreement. Additionally, this Agreement may only be assigned together with the Collaboration Agreement (in its entirety or in its entirety with respect to the Product), and the Collaboration Agreement (in its entirety or in its entirety with respect to the Product) may only be assigned together with this Agreement.
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17.5Severability. Each Party hereby agrees that it does not intend to violate any public policy, statutory or common laws, rules, regulations, treaty or decision of any government agency or executive body thereof of any country or community or association of countries. Should one or more provisions of this Agreement be or become invalid, the Parties hereto shall substitute, by mutual Party Written Consent, valid
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provisions for such invalid provisions, in their economic effect, are sufficiently similar to the invalid provisions that it can be reasonably assumed that the Parties would have entered into this Agreement based on such valid provisions. In case such alternative provisions cannot be agreed upon, the invalidity of one or several provisions of this Agreement shall not affect the validity of this Agreement as a whole, unless the invalid provisions are of such essential importance to this Agreement that it is to be reasonably assumed that the Parties would not have entered into this Agreement without the invalid provisions.
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17.6Insurance. The insurance provisions of Article 22 of the Collaboration Agreement shall apply to the activities conducted hereunder.
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17.7Notices. All notices, consents or waivers under this Agreement shall be in writing and will be deemed to have been duly given when: (a) delivered in person; or (b) delivered by first class air mail or internationally recognized courier service, postage prepaid, addressed to the other Party at its address indicated below, or to such other address as the addressee shall have last furnished in writing to the address to the other Party in accordance with this Section 17.7. For clarity, this Section 17.7 is not intended to apply to day-to-day business communications made in the ordinary course.
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	For Genmab:
	   
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	Genmab A/S

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	Attention: Head of Legal Email: [*]

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	the address of Genmab as registered in the Danish Central Business Register (or any successors hereof)

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	or

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	the address of Genmab as registered at the Genmab’s official homepage (currently www.genmab.com)

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	Invoices to Genmab: [*]

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	For SGI:
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	Seagen Inc.

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	21823 30th Drive S.E. Bothell, WA 98021

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	Telephone: +1 (425) 527-4000 Facsimile: [*]

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	Email: [*]

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	Attention: General Counsel

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	With copies of invoices to:

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	Accounts Payable 21823 – 30th

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	Drive SE

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	Bothell, WA 98021 Email: [*]

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17.8Governing Law. The Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflict of law principles thereof that may dictate application of the laws of any other state or the United States.
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17.9Headings; Construction.
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17.9.1Each of the Parties acknowledges and agrees that this Agreement has been diligently reviewed by and negotiated by and between each of them, that in such negotiations each of them has been represented by competent counsel and that the final agreement contained herein, including the language whereby it has been expressed, represents the joint efforts of the Parties hereto and their counsel. Accordingly, in interpreting this Agreement or any provision hereof, no presumption shall apply against any Party as being responsible for the wording or drafting of this Agreement or any such provision, and ambiguities, if any, in this Agreement shall not be construed against any Party, irrespective of which Party may be deemed to have authored the ambiguous provision.
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17.9.2The definitions of the 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,” the phrase “for example” and the abbreviation “e.g.,” shall each be deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to have the same meaning and effect as the word “shall.” The word “any” shall mean “any and all” unless otherwise clearly indicated by context. The word “or” is used in the inclusive sense (and/or) unless the context otherwise requires.
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17.9.3Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or therein), (b) any reference to any Applicable Law herein shall be construed as referring to such Applicable Law as from time to time enacted, repealed or amended, (c) any reference herein to any Person shall be construed to include the Person’s successors and permitted 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) references to “drugs” or pharmaceutical products or therapies include biological products or therapies, and (f) all references herein to Articles, Sections or Schedules, unless otherwise specifically provided, shall be construed to refer to Articles, Sections and Schedules of this Agreement. As used herein, the reference to an Article refers to all of the Sections under that Article.
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17.9.4The headings of Articles and Sections of this Agreement are for ease of reference only and shall not affect the meaning or interpretation of this Agreement in any way.
17.10No Third Party Beneficiaries. No Person other than Genmab, SGI and their respective Affiliates, successors and permitted assignees hereunder, shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement.
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17.11Entire Agreement; Amendment. This Agreement, together with the Schedules hereto, the Collaboration Agreement and the supply agreements, quality agreements, and pharmacovigilance agreements referenced herein, together with the exhibits and schedules thereto, contains the entire understanding of the Parties with respect to the specific subject matter hereof. All other express or implied agreements and understandings, either oral or written, heretofore made are expressly superseded. This
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Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both Parties.
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17.12Relationship Between Agreements.
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17.12.1To the extent the terms and conditions of this Agreement conflict with the terms of the Collaboration Agreement or the supply agreements, quality agreements, pharmacovigilance agreements, and data protection agreements referenced herein, the terms and conditions of this Agreement shall prevail with respect to the Product; provided, that (a) the terms and conditions of such pharmacovigilance agreements shall prevail solely with respect to Product safety matters in accordance with Section 8.2, (b) the terms and conditions of such quality agreements shall prevail with respect to Product quality matters, and (c) the terms and conditions of such data protection agreements shall prevail with respect to personal data.
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17.12.2Notwithstanding anything to the contrary, the Collaboration Agreement may not be terminated with respect to the Product for so long as this Agreement continues to survive.
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17.13Independent Contractors. Notwithstanding anything contained herein to the contrary, SGI and Genmab each agree and acknowledge that they shall be independent contractors and that the relationship between the Parties shall not constitute a partnership, joint venture, agency, or any type of fiduciary relationship. Neither SGI nor Genmab shall have the authority to make any statements, representations or commitments of any kind, or take any action, which shall be binding on the other Party, without the prior Party Written Consent of the other Party to do so.
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17.14Affiliates.
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17.14.1Except as provided in this Section 17.14, either Party may perform any or all of its obligations under this Agreement through one or more Affiliates (but only for so long as such Person is and remains an Affiliate of such Party); provided, that such Party shall remain fully liable for the obligations under this Agreement and any acts or omissions of such Affiliates. Each Party shall cause its respective Affiliates to comply fully with the provisions of this Agreement to the extent such provisions specifically relate to, or are intended to specifically relate to, such Affiliates, as though such Affiliates were expressly named as joint obligors hereunder. In addition, notwithstanding any limitations in the Collaboration Agreement, each Party shall have the right to extend the rights, licenses, immunities and obligations granted in this Agreement and the Collaboration Agreement to one or more of its Affiliates (but only for so long as such Person is and remains an Affiliate of such Party) and any such extension to Affiliates under the Collaboration Agreement prior to the Effective Date is hereby deemed approved. All applicable terms and provisions of this Agreement and the Collaboration Agreement shall apply to any such Affiliate to which this Agreement has been extended to the same extent as such terms and provisions apply to the extending Party.
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17.14.2To the extent required by Applicable Law, the Parties shall cause their relevant local Affiliates in any country in the Territory to enter into local agreements to implement the arrangements provided for in this Agreement. Such implementing agreements shall be in forms mutually agreed by the Parties and shall be, in all material respects, consistent with the terms and conditions of this Agreement, including by having termination provisions that are not inconsistent with ARTICLE 14.
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17.15No Waiver. Any delay in enforcing a Party’s rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a waiver of such Party’s rights to the future enforcement of its rights under this Agreement, except with respect to an express written and signed waiver
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relating to a particular matter for a particular period of time.
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17.16Fees and Expenses. Except as otherwise specified in this Agreement, each Party shall bear its own costs and expenses (including investment banking and legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.
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17.17Counterparts. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one (1) and the same instrument. This Agreement may be executed by delivery of electronically scanned copies of original signatures delivered by electronic mail, and such signatures shall be deemed to bind each Party as if they were original signatures; provided, that each Party shall also provide the other Party a hard copy of the executed Agreement.
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{Signature Pages Follow}
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IN WITNESS WHEREOF, the Parties have caused this Joint Commercialization Agreement to be executed by their duly authorized representatives as of the Effective Date.
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GENMAB A/S
​
	By:
	​
	​

	​
	Jan van de Winkel
	​

	​
	President & CEO
	​

​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
IN WITNESS WHEREOF, the Parties have caused this Joint Commercialization Agreement to be executed by their duly authorized representatives as of the Effective Date.
​
SEAGEN INC.
​
	By:
	​
	​

	​
	Clay B. Siegall, Ph.D.
	​

	​
	President and Chief Executive Officer
	​

​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
SCHEDULE 1.6 APPROVED SUBCONTRACTORS
​
For SGI:
​
	Approved Subcontractor
	Services/Functions:

	[*]
	[*]

​
For Genmab:
​
	Approved Subcontractor
	Clinical Trial(s)
	Services/Functions

	[*]
	[*]
	[*]

​
​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
SCHEDULE 1.44 EUROPE
​
The United Kingdom:
		·
	England

		·
	Scotland

		·
	Wales

		·
	Northern Ireland

​
EU:
		·
	Austria

		·
	Belgium

		·
	Bulgaria

		·
	Croatia

		·
	Republic of Cyprus

		·
	Czech Republic

		·
	Denmark

		·
	Estonia

		·
	Finland

		·
	France

		·
	Germany

		·
	Greece

		·
	Hungary

		·
	Ireland

		·
	Italy

		·
	Latvia

		·
	Lithuania

		·
	Luxembourg

		·
	Malta

		·
	Netherlands

		·
	Poland

		·
	Portugal

		·
	Romania

		·
	Slovakia

		·
	Slovenia

		·
	Spain

		·
	Sweden

​
EFTA:
		·
	Iceland

		·
	Liechtenstein

		·
	Norway

		·
	Switzerland

​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
SCHEDULE 3.1 GENMAB US ACTIVITIES
​
	​
	US Commercialization and Medical Affairs Activities

	1. Commercialization
	
·

Genmab fields fifty percent (50%) of the Parties’ aggregate Sales Representatives for the Product in the United States, as determined on an FTE basis.

	2. Medical Affairs
	
·

Genmab fields fifty percent (50%) of the Parties’ aggregate MSLs for the Product in the United States, as determined on an FTE basis.

	3. First and Second Line Management
	
·

[*].

​
​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
SCHEDULE 5.3.4
CERTAIN U.S. FEDERAL INCOME TAX MATTERS
​
Section 1.1.  Tax Partnership. The activities of the Partners pursuant to the Agreement in respect of the Development and Commercialization of the Product are deemed to be conducted by the Tax Partnership; provided that the activities of SGI and Genmab with respect to the Royalty Territory are deemed to be activities conducted by SGI and Genmab outside of the Tax Partnership. The partners of the Tax Partnership are SGI and Genmab (the “Partners”). The Tax Partnership, and the rights and obligations set forth in this Schedule 5.3.4, shall be effective beginning on the Tax Partnership Formation Date and shall remain in existence until the Agreement is terminated.
​
Section 1.2. Definitions. Capitalized terms used, but not defined, herein will have the meanings ascribed to them in the Agreement. For purposes of this Schedule 5.3.4:
​
(a)“Adjusted Capital Account” has the meaning set forth in Section 1.4(d) of this Schedule 5.3.4.
​
(b)“Book” means the method of accounting prescribed for compliance with the capital account maintenance rules set forth in Section 1.704-1(b)(2)(iv) of the Treasury Regulations, as distinguished from any accounting method which a Partner may adopt for other purposes such as financial reporting.
​
(c)“Budget Act” means Section 1101 of the Bipartisan Budget Act of 2015 and any Sections of the Tax Code or Treasury Regulations promulgated thereunder and with respect thereto, each as amended from time to time, and other guidance that may be promulgated in the future relating thereto.
​
		(d)
	“Capital Account” has the meaning set forth in Section 1.4(a) of this

Schedule 5.3.4.
​
		(e)
	“Capital Contribution” means, for each Partner, such Partner’s cash or

property deemed contributed to the Tax Partnership.
​
(f)“Designated Individual” has the meaning set forth in Section 1.9(c) of this Schedule 5.3.4.
​
		(g)
	“Fiscal Year” means the calendar year.

​
(h)“Gross Asset Value” means, with respect to any asset of the Tax Partnership, the asset’s adjusted basis for federal income tax purposes, adjusted to reflect any adjustments required or permitted by Sections 1.704-1(b)(2)(iv)(d) through (g), (m) and (s) of the Treasury Regulations, as mutually agreed upon by the Partners; provided, that in the case of any asset (other than cash) deemed contributed to the Tax Partnership, the initial Gross Asset Value of such property shall be equal to the fair market value of such asset as of the date of contribution, as mutually agreed upon by the Partners.
​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
(i)“Net Income” and “Net Losses” shall mean the Book income, gain, loss, deductions and credits of the Tax Partnership in the aggregate or separately stated, as appropriate, as of the close of each Taxable Year on the Tax Partnership’s tax return filed for federal income tax purposes (or other allocation period).
​
		(j)
	“Partners” has the meaning set forth in Section 1.1 of this Schedule 5.3.4.

​
(k)“Partnership Representative” has the meaning set forth in Section 1.9(c) of this Schedule 5.3.4.
​
		(l)
	“Tax Code” means the U.S. Internal Revenue Code of 1986, as amended.

​
(m)“Taxable Year” means the Tax Partnership’s Fiscal Year or such other year as may be required by Section 706 of the Tax Code.
​
(n)“Treasury Regulations” means regulations (whether in final, proposed or temporary form) promulgated by the U.S. Department of the Treasury under the Tax Code, as amended.
​
Section 1.3. Capital Contributions.
​
 [*]
​
Section 1.4. Capital Accounts.
​
[*]
​
Section 1.5. Distributions.
​
[*]
​
Section 1.6.Allocation of Net Income or Net Losses. [*]. Section 1.7.Regulatory Allocations.
​
[*]
​
Section 1.8. Tax Allocations.
​
[*]
​
Section 1.9.Tax Reports, Tax Elections, Partnership Representative and Designated Individual.
​
[*]
​
Section 1.10. Tax Information Sharing. [*].
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
Section 1.11. Tax Position.  [*].
Section 1.12. Termination of Tax Partnership.[*]. 
Section 1.13. Costs and Expenses. [*].
​
​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

CONFIDENTIAL

​
SCHEDULE 6.3 
MANUFACTURING
​
Existing CMO Agreements:
​
	NAME OF THIRD PARTY CMO
	ROLE
	RELATIONSHIP PARTY
	AGREEMENT

	​
[*]
	​
[*]
	​
[*]
	​
[*]

​
​
Pending CMO Agreements:
​
​
	​
NAME OF THIRD PARTY CMO
	​
ROLE
	​
RELATIONSHIP PARTY
	​
STATUS

	​
[*]
	​
[*]
	​
[*]
	​
[*]

​

[*] = Certain information contained in this document, marked by brackets, has been omitted because it is both not material and is the type of information that we treat as private or confidential.

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