Document:

Exhibit

	
			
	 
 
 

	CREDIT AGREEMENT
 
dated as of 

September 30, 2015 

among 

HEALTHEQUITY, INC.
 
The Lenders Party Hereto
and 
 
JPMORGAN CHASE BANK, N.A. 
as Administrative Agent

 

	 
	 
	 

	J.P. MORGAN SECURITIES LLC 
as Sole Bookrunner and Sole Lead Arranger

Table of Contents
Page

	
				
	ARTICLE I Definitions
	 

	 
	 
	 

	SECTION 1.01.
	Defined Terms
	1
	

	SECTION 1.02.
	Classification of Loans and Borrowings
	24
	

	SECTION 1.03.
	Terms Generally
	24
	

	SECTION 1.04.
	Accounting Terms; GAAP; Pro Forma Calculations
	25
	

	SECTION 1.05.
	Status of Obligations
	25
	

	 
	 
	 

	ARTICLE II The Credits
	26
	

	 
	 
	 

	SECTION 2.01.
	Commitments
	26
	

	SECTION 2.02.
	Loans and Borrowings
	26
	

	SECTION 2.03.
	Requests for Revolving Borrowings
	27
	

	SECTION 2.04.
	Intentionally Omitted
	27
	

	SECTION 2.05.
	Swingline Loans
	27
	

	SECTION 2.06.
	Letters of Credit
	28
	

	SECTION 2.07.
	Funding of Borrowings
	32
	

	SECTION 2.08.
	Interest Elections
	32
	

	SECTION 2.09.
	Termination and Reduction of Commitments
	34
	

	SECTION 2.10.
	Repayment of Loans; Evidence of Debt
	34
	

	SECTION 2.11.
	Prepayment of Loans
	35
	

	SECTION 2.12.
	Fees
	35
	

	SECTION 2.13.
	Interest
	36
	

	SECTION 2.14.
	Alternate Rate of Interest
	37
	

	SECTION 2.15.
	Increased Costs
	37
	

	SECTION 2.16.
	Break Funding Payments
	38
	

	SECTION 2.17.
	Taxes
	39
	

	SECTION 2.18.
	Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of Set-offs
	42
	

	SECTION 2.19.
	Mitigation Obligations; Replacement of Lenders
	44
	

	SECTION 2.20.
	Expansion Option
	44
	

	SECTION 2.21.
	Defaulting Lenders
	46
	

	 
	 
	 

	ARTICLE III Representations and Warranties
	47
	

	 
	 
	 

	SECTION 3.01.
	Organization; Powers; Subsidiaries
	47
	

	SECTION 3.02.
	Authorization; Enforceability
	48
	

	SECTION 3.03.
	Governmental Approvals; No Conflicts
	48
	

	SECTION 3.04.
	Financial Condition; No Material Adverse Change
	48
	

	SECTION 3.05.
	Properties
	48
	

	SECTION 3.06.
	Litigation, Environmental and Labor Matters
	49
	

	SECTION 3.07.
	Compliance with Laws and Agreements
	49
	

	SECTION 3.08.
	Investment Company Status
	49
	

	SECTION 3.09.
	Taxes
	49
	

	SECTION 3.10.
	ERISA
	49
	

	SECTION 3.11
	Disclosure
	50
	

	SECTION 3.12.
	Federal Reserve Regulations
	50
	

	SECTION 3.13.
	[Intentionally Omitted]
	50
	

	SECTION 3.14.
	No Default
	50
	

i

Table of Contents 
(continued)
Page

	
				
	SECTION 3.15.
	No Burdensome Restrictions
	50
	

	SECTION 3.16.
	Solvency
	50
	

	SECTION 3.17.
	Insurance
	50
	

	SECTION 3.18.
	Security Interest in Collateral
	50
	

	SECTION 3.19.
	Non-Bank Trustee Matters
	51
	

	SECTION 3.20.
	Anti-Corruption Laws and Sanctions
	51
	

	 
	 
	 

	ARTICLE IV Conditions
	 

	 
	 
	 

	SECTION 4.01.
	Effective Date
	51
	

	SECTION 4.02.
	Each Credit Event
	52
	

	 
	 
	 

	ARTICLE V Affirmative Covenants
	53
	

	 
	 
	 

	SECTION 5.01.
	Financial Statements and Other Information
	53
	

	SECTION 5.02.
	Notices of Material Events
	54
	

	SECTION 5.03.
	Existence; Conduct of Business
	55
	

	SECTION 5.04.
	Payment of Obligations
	55
	

	SECTION 5.05.
	Maintenance of Properties; Insurance
	55
	

	SECTION 5.06.
	Books and Records; Inspection Rights
	55
	

	SECTION 5.07.
	Compliance with Laws and Material Contractual Obligations
	56
	

	SECTION 5.08.
	Use of Proceeds
	56
	

	SECTION 5.09.
	Non-Bank Trustee Matters
	56
	

	SECTION 5.10.
	Subsidiary Guarantors; Pledges; Additional Collateral; Further Assurances
	56
	

	 
	 
	 

	ARTICLE VI Negative Covenants
	58
	

	 
	 
	 

	SECTION 6.01.
	Indebtedness
	58
	

	SECTION 6.02.
	Liens
	60
	

	SECTION 6.03.
	Fundamental Changes and Asset Sales
	62
	

	SECTION 6.04.
	Investments, Loans, Advances, Guarantees and Acquisitions
	63
	

	SECTION 6.05.
	Swap Agreements
	64
	

	SECTION 6.06.
	Transactions with Affiliates
	64
	

	SECTION 6.07.
	Restricted Payments
	65
	

	SECTION 6.08.
	Restrictive Agreements
	65
	

	SECTION 6.09.
	Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents
	65
	

	SECTION 6.10.
	Sale and Leaseback Transactions
	66
	

	SECTION 6.11.
	Intentionally Omitted
	66
	

	SECTION 6.12.
	Financial Covenants
	66
	

	 
	 
	 

	ARTICLE VII Events of Default
	66
	

	 
	 

	ARTICLE VIII The Administrative Agent
	68
	

	 
	 

	ARTICLE IX Miscellaneous
	72
	

	 
	 
	 

	SECTION 9.01.
	Notices
	72
	

ii

Table of Contents 
(continued)
Page

	
				
	SECTION 9.02.
	Waivers; Amendments
	73
	

	SECTION 9.03.
	Expenses; Indemnity; Damage Waiver
	76
	

	SECTION 9.04.
	Successors and Assigns
	77
	

	SECTION 9.05.
	Survival
	80
	

	SECTION 9.06.
	Counterparts; Integration; Effectiveness; Electronic Execution
	81
	

	SECTION 9.07.
	Severability
	81
	

	SECTION 9.08.
	Right of Setoff
	81
	

	SECTION 9.09.
	Governing Law; Jurisdiction; Consent to Service of Process
	81
	

	SECTION 9.10.
	WAIVER OF JURY TRIAL
	82
	

	SECTION 9.11.
	Headings
	82
	

	SECTION 9.12.
	Confidentiality
	82
	

	SECTION 9.13.
	USA PATRIOT Act
	83
	

	SECTION 9.14.
	Appointment for Perfection
	84
	

	SECTION 9.15.
	Releases of Subsidiary Guarantors
	84
	

	SECTION 9.16.
	Interest Rate Limitation
	84
	

	SECTION 9.17.
	No Advisory or Fiduciary Responsibility
	84
	

	 
	 
	 

	ARTICLE X Borrower Guarantee
	85
	

	
	
	SCHEDULES:

	 

	Schedule 2.01 – Commitments

	Schedule 3.01 – Subsidiaries

	Schedule 3.03 – Filings with Governmental Authorities

	Schedule 3.18 – Security Interest Filings

	Schedule 6.01 – Existing Indebtedness

	Schedule 6.02 – Existing Liens
Schedule 6.04 – Existing Investments

	 

	EXHIBITS:

	 

	Exhibit A – Form of Assignment and Assumption

	Exhibit B – Form of Opinion of Loan Parties’ Counsel

	Exhibit C – Form of Increasing Lender Supplement

	Exhibit D – Form of Augmenting Lender Supplement

	Exhibit E – List of Closing Documents

	Exhibit F-1 – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)

	Exhibit F-2 – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)

	Exhibit F-3 – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)

	Exhibit F-4 – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)

	Exhibit G-1 – Form of Borrowing Request

	Exhibit G-2 – Form of Interest Election Request

	Exhibit H – Form of Note
Exhibit I – Form of Subsidiary Guaranty

iii

CREDIT AGREEMENT (this “Agreement”) dated as of September 30, 2015 among HEALTHEQUITY, INC., the LENDERS from time to time party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.
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 such Loan, or the Loans comprising such Borrowing, bearing interest at a rate determined by reference to the Alternate Base Rate.
“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, 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., 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 Foreign Subsidiary” means any Foreign Subsidiary to the extent such Foreign Subsidiary acting as a Subsidiary Guarantor would cause a Deemed Dividend Problem.
“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.
“Agent Party” has the meaning assigned to such term in Section 9.01(d).
“Aggregate Commitment” means the aggregate of the 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 Commitment is $100,000,000.
“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 FRBNY Rate in effect on such day plus 1⁄2 of 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 1%, provided that the Adjusted LIBO Rate for any day shall be based on the LIBO 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 FRBNY Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the FRBNY Rate or the Adjusted LIBO Rate, respectively.
“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.

“Applicable Percentage” means, with respect to any Lender, the percentage of the Aggregate Commitment represented by such Lender’s Commitment; provided that, in the case of Section 2.21 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the percentage of the Aggregate Commitment (disregarding any Defaulting Lender’s Commitment) represented by such Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.
“Applicable Pledge Percentage” means 100% but 65% in the case of a pledge by the Borrower or any Domestic Subsidiary of its Equity Interests in (i) an Affected Foreign Subsidiary or (ii) any Domestic Foreign Holdco Subsidiary.
“Applicable Rate” means, for any day, with respect to any Eurodollar 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 “Eurodollar Spread”, “ABR Spread” or “Commitment Fee Rate”, as the case may be, based upon the Total Leverage Ratio applicable on such date:
	
					
	 
	Total Leverage Ratio:
	Eurodollar  
Spread
	ABR  
Spread
	Commitment  
Fee Rate

	Category 1:
	< 1.00 to 1.00

	1.50%
	0.50%
	0.20%

	Category 2:
	> 1.00 to 1.00 but  
< 2.00 to 1.00
	1.75%
	0.75%
	0.25%

	Category 3:
	> 2.00 to 1.00

	2.00%
	1.00%
	0.30%

For purposes of the foregoing,
(i)    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, Category 3 shall be deemed applicable for the period commencing three (3) Business Days after the required date of delivery and ending on the date which is three (3) Business Days after the Financials are actually delivered, after which the Category shall be determined in accordance with the table above as applicable;
(ii)    adjustments, if any, to the Category 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 Category 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); and
(iii)    notwithstanding the foregoing, Category 1 shall be deemed to be applicable until the Administrative Agent’s receipt of the applicable Financials for the Borrower’s first full fiscal quarter ending after the Effective Date (unless such Financials demonstrate that Category 2 or 3 should have been applicable during such period, in which case such other Category shall be deemed to be applicable during such period) and adjustments to the Category then in effect shall thereafter be effected in accordance with the preceding paragraphs.
“Approved Fund” has the meaning assigned to such term in Section 9.04(b).

2

“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 approved by the Administrative Agent.
“Augmenting Lender” has the meaning assigned to such term in Section 2.20.
“Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments.
“Available Revolving Commitment” means, at any time with respect to any Lender, the Commitment of such Lender then in effect minus the Revolving Credit Exposure of such Lender at such time; it being understood and agreed that any Lender’s Swingline Exposure shall not be deemed to be a component of the Revolving Credit Exposure for purposes of calculating the commitment fee under Section 2.12(a).
“Banking Services” means each and any of the following bank services provided to the Borrower or any Subsidiary by any Lender or any of its Affiliates:  (a) credit cards for commercial customers (including, without limitation, commercial credit cards and purchasing cards), (b) stored value cards, (c) merchant processing services and (d) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, any direct debit scheme or arrangement, overdrafts and interstate depository network services).
“Banking Services Agreement” means any agreement entered into by the Borrower or any Subsidiary in connection with Banking Services.
“Banking Services Obligations” means any and all obligations of the Borrower or any Subsidiary, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with Banking Services.
“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any 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.
“Board” means the Board of Governors of the Federal Reserve System of the United States of America.
“Borrower” means HealthEquity, Inc., a Delaware corporation.

3

“Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect or (b) a Swingline Loan.
“Borrowing Request” means a request by the Borrower for a Revolving Borrowing in accordance with Section 2.03 in the form attached hereto as Exhibit G-1.
“Burdensome Restrictions” means any consensual encumbrance or restriction of the type described in clause (a) or (b) of Section 6.08.
“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 Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in Dollars in the London interbank market.
“Capital Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital 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.
“CFC” means any Subsidiary organized under the laws of any jurisdiction other than the United States of America, any state thereof or the District of Columbia, that is a “controlled foreign corporation” for purposes of Section 957 of the Code.
“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 40% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; or (b) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were neither (i) nominated by the board of directors of the Borrower nor (ii) appointed by directors so nominated.
“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) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by 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.
“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

4

“Code” means the Internal Revenue Code of 1986, as amended.
 “Collateral” means any and all property owned, leased or operated by a Person covered by the Collateral Documents and any and all other property of any Loan Party, now existing or hereafter acquired, that may at any time be or become subject to a security interest or Lien in favor of the Administrative Agent, on behalf of itself and the Secured Parties, to secure the Secured Obligations; provided that the Collateral shall exclude Excluded Assets.
“Collateral Documents” means, collectively, the Security Agreement, the Mortgages and all other agreements, instruments and documents executed in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations, including, without limitation, all other security agreements, pledge agreements, mortgages, deeds of trust, loan agreements, notes, guarantees, subordination agreements, pledges, powers of attorney, consents, assignments, contracts, fee letters, notices and leases whether heretofore, now, or hereafter executed by the Borrower or any of its Subsidiaries and delivered to the Administrative Agent.
“Commitment” means, with respect to each Lender, the commitment of such Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time pursuant to Section 2.09, (b) increased from time to time pursuant to Section 2.20 and (c) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption or other documentation contemplated hereby pursuant to which such Lender shall have assumed its Commitment, as applicable.
“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 9.01(d).
“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 Cash Interest Expense” means, with reference to any period, Consolidated Interest Expense of the Borrower and its Subsidiaries which is paid in cash, calculated on a consolidated basis for such period.
“Consolidated EBITDA” means, with reference to any period, Consolidated Net Income plus, without duplication and to the extent deducted from revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense for income taxes paid or accrued, (iii) depreciation, (iv) amortization, (v) extraordinary, non-recurring or unusual expenses or losses incurred other than in the ordinary course of business; provided that, the aggregate amount added to Consolidated EBITDA during any period of four (4) consecutive fiscal quarters pursuant to this clause (v) when aggregated with the amount added pursuant to clause (vi) below shall not exceed 10% of Consolidated EBITDA (calculated without giving effect to the add-back of such items pursuant to this clause (v) or such clause (vi)), (vi) any expenses or charges related to any issuance of Equity Interests or debt securities, Investment, acquisition, Disposition, recapitalization or the incurrence, modification or repayment of Indebtedness permitted to be incurred by this Agreement (including a refinancing thereof) (whether or not successful), including (x) such fees, expenses or charges related to the offering of the Obligations and (y) any amendment or other modification of the Obligations or other Indebtedness; provided that, the aggregate amount added to Consolidated EBITDA 

5

during any period of four (4) consecutive fiscal quarters pursuant to this clause (vi) when aggregated with the amount added pursuant to the foregoing clause (v) hereof shall not exceed 10% of Consolidated EBITDA (calculated without giving effect to the add-back of such items pursuant to this clause (vi) or such clause (v)), (vii) any other non-cash charges or expenses; provided, that, for purposes of this clause (vii), any non-cash charges or losses shall be treated as cash charges or losses in any subsequent period during which cash disbursements attributable thereto are made (but excluding, for the avoidance of doubt, amortization of a prepaid cash item that was paid in a prior period); minus, to the extent included in Consolidated Net Income, (1) interest income, (2) income tax credits and refunds (to the extent not netted from tax expense), (3) any cash payments made during such period in respect of items described in clauses (v) or (vii) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were incurred, (4) any non-cash income or gains (but excluding any items (A) in respect of which cash was actually received in a prior period (so long as such cash did not increase Consolidated EBITDA in such prior period) or (B) which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges that reduced Consolidated EBITDA in any prior period) and (5) 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”), (i) 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 (ii) 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 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 its Subsidiaries in excess of $10,000,000; and “Material Disposition” means any sale, transfer or disposition of property or series of related sales, transfers, or dispositions of property that yields gross proceeds to the Borrower or any of its Subsidiaries in excess of $10,000,000.
“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 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 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).  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; provided, that without duplication, 

6

(i)    there shall be excluded any income (or loss) of any Person other than the Borrower or a Subsidiary, but any such income so excluded may be included in such period or any later period to the extent of any cash dividends or distributions actually paid in the relevant period to the Borrower or any wholly-owned Subsidiary of the Borrower, 
(ii)    any net after-tax income or loss from Disposed of, abandoned, closed or discontinued operations and any net after-tax gain or loss on Disposed of, abandoned, closed or discontinued operations shall be excluded, 
(iii)    any net after-tax gain or loss (less all fees and expenses or charges relating thereto) attributable to business Dispositions or asset Dispositions other than in the ordinary course of business (as determined in good faith by the management of the Borrower) shall be excluded, 
(iv)    any deductions attributable to minority interests shall be excluded, 
(v)    effects of purchase accounting adjustments (including the effects of such adjustments pushed down to such person and its subsidiaries) in component amounts required or permitted by GAAP, resulting from the application of purchase accounting in relation to any consummated acquisition or the amortization or write-off of any amounts thereof, net of taxes, shall be excluded,
(vi)    any impairment charges or asset write-offs, in each case pursuant to GAAP, and the amortization of intangibles and other fair value adjustments arising pursuant to GAAP, shall be excluded, and
(vii)    non-cash gains, losses, income and expenses resulting from fair value accounting required by the applicable standard under GAAP and related interpretations shall be excluded.
“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, as set forth on the consolidated balance sheet of the Borrower as of the last day of the fiscal quarter most recently ended for which financial statements have been (or were required to be) delivered pursuant to Section 5.01(a) or 5.01(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)), as applicable, calculated on a pro forma basis after giving effect to any acquisition or Disposition of a Person or assets that may have occurred on or after the last day of such fiscal quarter.
“Consolidated Total Indebtedness” at any date means, if and to the extent the same would constitute indebtedness or a liability in accordance with GAAP, the sum of (without duplication) all Indebtedness (other than letters of credit or bank guarantees, to the extent undrawn) consisting of Capital Lease Obligations, Indebtedness for borrowed money (including letters of credit and bank guarantees, to the extent drawn and not reimbursed) and disqualified stock of the Borrower and the Subsidiaries determined on a consolidated basis on such date. 
“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.
“Credit Event” means a Borrowing, the issuance, amendment, renewal or extension of a Letter of Credit, an LC Disbursement or any of the foregoing.

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“Credit Party” means the Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender.
“Deemed Dividend Problem” means, with respect to any Foreign Subsidiary, such Foreign Subsidiary’s accumulated and undistributed earnings and profits being deemed to be repatriated to the Borrower or the applicable parent Domestic Subsidiary under Section 956 of the Code and the effect of such repatriation causing materially adverse tax consequences to the Borrower or such parent Domestic Subsidiary, in each case as determined by the Borrower in its commercially reasonable judgment acting in good faith and in consultation with its legal and tax advisors.
“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
“Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or Swingline Loans or (iii) pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower or any Credit Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a Loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three (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 and participations in then outstanding Letters of Credit and Swingline Loans under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such 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 Bankruptcy Event.
“Disinterested Director” means, with respect to any person and transaction, a member of the Board of Directors of such person who does not have any material direct or indirect financial interest in or with respect to such transaction.
“Dispose” or “Disposed of” means to convey, sell, lease, sell and leaseback, assign, farm-out, transfer or otherwise dispose of any property, business or asset. The term “Disposition” shall have a correlative meaning to the foregoing.
“Dollars” or “$” refers to lawful money of the United States of America.
“Domestic Foreign Holdco Subsidiary” means any Domestic Subsidiary substantially all of the assets of which consist of the Equity Interests of one or more CFCs, so long as such Domestic Subsidiary does not conduct any business or activities other than the ownership of such Equity Interests.
“Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction located in the United States of America.

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“ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.
“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.
“Electronic System” means any electronic system, including e-mail, e-fax, Intralinks®, ClearPar®, Debt Domain, Syndtrak and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent and the Issuing Bank and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.
“Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, preservation or reclamation of natural resources, the management, release or threatened release of any Hazardous Material or to health and safety matters.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the 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.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.
“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (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 

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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, or the receipt by any Multiemployer Plan from 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 or in reorganization, within the meaning of Title IV of ERISA.
“Eurodollar” when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.
“Event of Default” has the meaning assigned to such term in Article VII.
“Excluded Accounts” means, collectively, trust accounts, payroll accounts, custodial accounts, escrow accounts and other similar deposit or securities accounts.
“Excluded Assets” means:
(a) any fee-owned real property with a fair market value of less than $10,000,000 and all leasehold interests in real property; 
(b) assets subject to certificates of title (other than motor vehicles subject to certificates of title, provided that perfection of security interests in such motor vehicles, if not constituting a Specified Asset, shall be limited to the filing of UCC financing statements);
(c) assets in respect of which pledges and security interests are prohibited by applicable U.S. law, rule or regulation or agreements with any United States Governmental Authority (other than to the extent that such prohibition would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the UCC of any relevant jurisdiction or any other applicable law); provided that, immediately upon the ineffectiveness, lapse or termination of any such prohibitions, such assets shall automatically cease to constitute “Excluded Assets”;
(d) Equity Interests in any Person other than wholly-owned Subsidiaries to the extent not permitted by customary terms in such Person’s organizational or joint venture documents (unless any such restriction would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the UCC of any relevant jurisdiction or any other applicable law);
(e) any lease, license or other agreement or any property subject to a purchase money security interest or similar arrangement, to the extent that a grant of a security interest therein would violate or invalidate such lease, license or agreement or purchase money arrangement or create a right of termination in favor of any other party thereto (other than a Loan Party) (other than (i) proceeds and receivables thereof, the assignment of which is expressly deemed effective under the UCC notwithstanding such prohibition, (ii) to the extent that any such term has been waived or (iii) to the extent any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408, 9-409 or other applicable provisions of the UCC of any relevant jurisdiction or any other applicable law); provided that, immediately upon the ineffectiveness, lapse or termination of any such express term, such assets shall automatically cease to constitute “Excluded Assets”;

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(f) Excluded Accounts;
(g) cash to secure letter of credit reimbursement obligations to the extent such secured letters of credit are issued or permitted, and such cash collateral is permitted, by this Agreement; 
(h) any “intent-to-use” application for registration of a trademark filed pursuant to Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, prior to the filing of a “Statement of Use” pursuant to Section 1(d) of the Lanham Act of an “Amendment to Allege Use” pursuant to Section 1(c) of the Lanham Act with respect thereto, solely to the extent, if any, that and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration that issues from such intent-to-use application under applicable federal law; 
(i) in the case of any pledge of voting Equity Interests of any Affected Foreign Subsidiary or any Domestic Foreign Holdco Subsidiary (in each case, that is owned directly by the Borrower or a Subsidiary Guarantor) to secure the Secured Obligations, any voting Equity Interest of such Subsidiary in excess of 65% of the outstanding Equity Interests of such class; and
(j) Equity Interests in any Trust Company or Special Purpose Entity;
provided that, “Excluded Assets” shall not include any proceeds, products, substitutions or replacements of Excluded Assets (unless such proceeds, products, substitutions or replacements would otherwise constitute Excluded Assets).  Notwithstanding the foregoing, no Loan Party shall be required to take any action in order to create or perfect a security interest in Specified Assets.
“Excluded Subsidiary” means any Subsidiary (a) that is prohibited by applicable law, rule or regulation or by any contractual obligation (i) existing on the Effective Date (with respect to any Person that is a Subsidiary on the Effective Date) or (ii) existing on the date such Person became a Subsidiary (with respect to any Person that becomes a Subsidiary after the Effective Date; provided that such contractual obligation is not created in contemplation of such Person becoming a Subsidiary) from providing a Guarantee of the Secured Obligations, (b) which would require governmental (including regulatory) consent, approval, license or authorization from a United States Governmental Authority in order to provide a Guarantee of the Secured Obligations unless such consent, approval, license or authorization has been received, (c) that is a Domestic Subsidiary of a CFC, (d) that is a Special Purpose Entity, (e) that is organized as a not-for-profit organization or (f) that is a Trust Company.
“Excluded Swap Obligation” means, with respect to any Loan Party, any Specified Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Specified Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party’s failure for any reason to constitute an ECP at the time the Guarantee of such Loan Party or the grant of such security interest becomes effective with respect to such Specified Swap Obligation.  If a Specified Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Specified Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.
“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 

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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, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit 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, Letter of Credit 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 and any agreement entered into pursuant to Section 1471(b)(1) of the Code.
“Federal Funds Effective Rate” means, for any day, the rate calculated by the FRBNY based on such day’s federal funds transactions by depository institutions (as determined in such manner as the FRBNY shall set forth on its public website from time to time) and published on the next succeeding Business Day by the FRBNY as the federal funds effective rate.
“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).
“First Tier Foreign Subsidiary” means each Foreign Subsidiary with respect to which any one or more of the Borrower and its Domestic Subsidiaries directly owns or Controls more than 50% of such Foreign Subsidiary’s issued and outstanding Equity Interests.
“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.
“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary.
“FRBNY” means the Federal Reserve Bank of New York.
“FRBNY 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; provided that if both such rates are not so published for any day that is a Business Day, the term “FRBNY Rate” means the rate quoted for such day for a federal funds transaction at 11:00 a.m., New York City time, 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.
“GAAP” means generally accepted accounting principles in the United States of America.

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“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.
“Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBO Rate”.
“Increasing Lender” has the meaning assigned to such term in Section 2.20.
“Incremental Term Loan” has the meaning assigned to such term in Section 2.20.
“Incremental Term Loan Amendment” has the meaning assigned to such term in Section 2.20.
“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, (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, (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 and (k) all obligations of such Person under Sale and Leaseback Transactions.  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.

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“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).
“Information Memorandum” means the Confidential Information Memorandum dated July 2015 relating to the Borrower and the Transactions.
“Interest Coverage Ratio” has the meaning assigned to such term in Section 6.12(b).
“Interest Election Request” means a request by the Borrower to convert or continue a Revolving Borrowing in accordance with Section 2.08 in the form attached hereto as Exhibit G-2.
“Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June, September and December and the Maturity Date, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day 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 and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid and the Maturity Date.
“Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months 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 pertaining to a Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.  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 LIBOR Screen Rate for the longest period (for which the LIBOR Screen Rate is available for the applicable currency) that is shorter than the Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which the LIBOR 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.
“Issuing Bank” means JPMorgan Chase Bank, N.A., in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i).  The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

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“LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).
“LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of Credit.
“LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.
“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 Section 2.20 or 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.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender and the Issuing Bank.
“Letter of Credit” means any letter of credit issued pursuant to this Agreement.
“LIBO Rate” means, with respect to any Eurodollar Borrowing for any applicable Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for Dollars for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate does not appear on either of such Reuters pages, 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 as shall be selected by the Administrative Agent from time to time in its reasonable discretion (in each case the “LIBOR Screen Rate”) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period; provided that, if the LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided, further, that if a LIBOR Screen Rate shall not be available at such time for such Interest Period (the “Impacted Interest Period”), then the LIBO Rate for such Interest Period shall be the Interpolated Rate; provided, that, if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  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.
“LIBOR Screen Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.
“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.
“Loan Documents” means this Agreement, any promissory notes issued pursuant to Section 2.10(e), any Letter of Credit applications, the Collateral Documents, 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 letter of credit agreements, delivered by or on 

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behalf of any Loan Party 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 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.
“Material Adverse Effect” means a material adverse effect on (a) the business, assets, results of operations or financial condition of the Borrower and the Subsidiaries taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this Agreement or any other Loan Document or (c) the validity or enforceability of this Agreement or the 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 Excluded Subsidiary) (i) 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 greater than five percent (5%) of Consolidated EBITDA for such period or (ii) which contributed greater than five percent (5%) of Consolidated Total Assets as of such date; provided that, if at any time the aggregate amount of Consolidated EBITDA or Consolidated Total Assets attributable to all Domestic Subsidiaries that are not Material Domestic Subsidiaries exceeds ten percent (10%) of Consolidated EBITDA for any such period or ten percent (10%) of Consolidated Total Assets as of the end of any such fiscal quarter, the Borrower (or, in the event the Borrower has failed to do so within ten (10) days, the Administrative Agent) shall designate sufficient Domestic Subsidiaries (other than Excluded Subsidiaries) as “Material Domestic Subsidiaries” to eliminate such excess, and such designated Subsidiaries shall for all purposes of this Agreement constitute Material Domestic Subsidiaries.
“Material Foreign Subsidiary” means each Foreign Subsidiary (other than any Excluded Subsidiary) (i) 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 greater than five percent (5%) of Consolidated EBITDA for such period or (ii) which contributed greater than five percent (5%) of Consolidated Total Assets as of such date; provided that, if at any time the aggregate amount of Consolidated EBITDA or Consolidated Total Assets attributable to all Foreign Subsidiaries that are not Material Foreign Subsidiaries exceeds ten percent (10%) of Consolidated EBITDA for any such period or ten percent (10%) of Consolidated Total Assets as of the end of any such fiscal quarter, the Borrower (or, in the event the Borrower has failed to do so within ten (10) days, the Administrative Agent) shall designate sufficient Foreign Subsidiaries (other than Excluded Subsidiaries) as “Material Foreign Subsidiaries” to eliminate such excess, and such designated Subsidiaries shall for all purposes of this Agreement constitute Material Foreign Subsidiaries.
“Material Subsidiaries” means, collectively, each Material Domestic Subsidiary and Material Foreign Subsidiary.

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“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), 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 $10,000,000.  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 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 September 30, 2020.
“Moody’s” means Moody’s Investors Service, Inc.
“Mortgage” means each mortgage, deed of trust or other agreement which conveys or evidences a Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent and the Secured Parties, on real property of a Loan Party, including any amendment, restatement, modification or supplement thereto.
“Mortgage Instruments” means such title reports, ALTA title insurance policies (with endorsements), evidence of zoning compliance, property insurance, “life of loan” flood determinations and flood insurance (and, if applicable FEMA form acknowledgements of insurance) in compliance with all applicable laws and regulations, opinions of counsel, ALTA surveys, appraisals, environmental assessments and reports, mortgage tax affidavits and declarations and other similar information and related certifications as are requested by, and in form and substance reasonably acceptable to, the Administrative Agent from time to time.
“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.
“Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, 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 of the Borrower and its Subsidiaries to any of the Lenders, the Administrative Agent, the Issuing Bank 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, operation of law or otherwise, arising or incurred under this Agreement or any of the other Loan Documents or in respect of any of the Loans made or reimbursement or other obligations incurred or any of the Letters of Credit or 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, Letter of Credit or Loan Document).

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“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 eurodollar borrowings by U.S.-managed banking offices of depository institutions (as such composite rate shall be determined by the FRBNY as set forth on its public website from time to time) and published on the next succeeding Business Day by the FRBNY as an overnight bank funding rate (from and after such date as the FRBNY shall commence to publish such composite rate).
“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).
“Patriot Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).
“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) or series of related acquisitions by the Borrower or any Subsidiary of (i) all or substantially all the assets of or (ii) 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, (a) no Event of Default has occurred and is continuing or would arise after giving effect (including giving effect on a pro forma basis) thereto, (b) such Person or division or line of business is engaged in the same or a similar line of business as the Borrower and the Subsidiaries or business reasonably related thereto, (c) all actions required to be taken with respect to such acquired or newly formed Subsidiary under Section 5.10 shall have been taken, (d) 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, if the aggregate consideration paid in respect of such acquisition exceeds $10,000,000, the Borrower shall have delivered to the Administrative Agent a certificate of a Financial Officer of the Borrower to such effect, together with all relevant financial information, statements and projections requested by the Administrative Agent and (e) in the case of an acquisition, merger or consolidation involving the Borrower or a Subsidiary, the Borrower or such Subsidiary is the surviving entity of such merger and/or consolidation.
“Permitted Investments” means:
(a)    direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from the date of acquisition thereof;

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(b)    investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s;
(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; 
(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; and
(f)    instruments equivalent to those referred to in clauses (a) through (e) above denominated in any foreign currency comparable in credit quality and tenor to those referred to above and commonly used by corporations for cash management purposes in any jurisdiction outside the United States to the extent reasonably required in connection with any business conducted by any Subsidiary organized in such jurisdiction.
“Permitted Liens” means any Liens permitted under Section 6.02.
“Permitted Refinancing Indebtedness” means any Indebtedness issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund (collectively, to “Refinance”), the Indebtedness being Refinanced (or previous refinancings thereof constituting Permitted Refinancing Indebtedness) (and, in the case of revolving Indebtedness being Refinanced, to effect a corresponding reduction in the commitments with respect to such revolving Indebtedness being Refinanced); provided, that with respect to any Indebtedness being Refinanced: (a) the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) of the Indebtedness so Refinanced (plus unpaid accrued interest and premium (including tender premiums) thereon and underwriting discounts, defeasance costs, fees, commissions and expenses, plus an amount equal to any existing commitment unutilized thereunder and letters of credit undrawn thereunder), (b) except with respect to Section 6.01(e), the Weighted Average Life to Maturity of such Permitted Refinancing Indebtedness is greater than or equal to the shorter of (i) the remaining Weighted Average Life to Maturity of the Indebtedness being Refinanced and (ii) the Maturity Date, (c) if the Indebtedness being Refinanced is subordinated in right of payment to the Obligations under this Agreement, such Permitted Refinancing Indebtedness shall be subordinated in right of payment to such Obligations on terms in the aggregate not materially less favorable to the Lenders as those contained in the documentation governing the Indebtedness being Refinanced, (d) no Permitted Refinancing Indebtedness shall have obligors that are not (or would not have been) obligated with respect to the Indebtedness being Refinanced (except that a Loan Party may be added as an additional obligor) and (e) if the Indebtedness being Refinanced is secured by any Collateral, such Permitted Refinancing Indebtedness may be secured by such Collateral (including any Collateral pursuant to after-acquired property clauses to the extent any such Collateral secured (or would have secured) the Indebtedness being Refinanced) on terms in the aggregate not materially less 

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favorable to the Secured Parties than those contained in the documentation (including any intercreditor agreement) governing the Indebtedness being Refinanced or on terms otherwise permitted by Section 6.02.
 “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.
“Platform” means Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system.
“Pledge Subsidiary” means (i) each Domestic Subsidiary and (ii) each First Tier Foreign Subsidiary which is a Material Foreign Subsidiary.
“Prime Rate” means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.
“Recipient” means (a) the Administrative Agent, (b) any Lender and (c) the Issuing Bank, as applicable.
“Refinance” shall have the meaning assigned to such term in the definition of the term “Permitted Refinancing Indebtedness,” “Refinancing” and “Refinanced” shall have a meaning correlative thereto.
“Register” has the meaning assigned to such term in Section 9.04(b).
“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.
“Required Lenders” means, subject to Section 2.21, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing more than 50% of the sum of the total Revolving Credit Exposures and unused Commitments at such time; provided that, at any time that there are two (2) or three (3) Lenders, “Required Lenders” must include at least two (2) Lenders (that are not Affiliates of one another).
“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.

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“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, its LC Exposure and its Swingline Exposure at such time.
“Revolving Loan” means a Loan made pursuant to Section 2.01.
“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.
“Sale and Leaseback Transaction” means any sale or other transfer of any property or asset by any Person with the intent to lease such property or asset 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, Sudan 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 or any European Union member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b).
“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 or Her Majesty’s Treasury of the United Kingdom.
“SEC” means the United States Securities and Exchange Commission.
“Secured Obligations” means all Obligations, together with all Swap Obligations and Banking Services Obligations owing to one or more Lenders or their respective Affiliates; provided that the definition of “Secured Obligations” shall not create or include any guarantee by any Loan Party of (or grant of security interest by any Loan Party to support, as applicable) any Excluded Swap Obligations of such Loan Party for purposes of determining any obligations of any Loan Party.
“Secured Parties” means the holders of the Secured Obligations from time to time and shall include (i) each Lender and the Issuing Bank in respect of its Loans and LC Exposure respectively, (ii) the Administrative Agent, the Issuing Bank and the Lenders in respect of all other present and future obligations and liabilities of the Borrower and each Subsidiary of every type and description arising under or in connection with this Agreement or any other Loan Document, (iii) each Lender and Affiliate of such Lender in respect of Swap Agreements and Banking Services Agreements entered into with such Person by the Borrower or any Subsidiary, (iv) each indemnified party under Section 9.03 in respect of the obligations and liabilities of the Borrower to such Person hereunder and under the other Loan Documents, and (v) their respective successors and (in the case of a Lender, permitted) transferees and assigns.
“Securities Act” means the United States Securities Act of 1933.
“Security Agreement” means that certain Pledge and Security Agreement (including any and all supplements thereto), dated as of the date hereof, between the Loan Parties and the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, and any other pledge or 

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security agreement entered into, after the date of this Agreement by any other Loan Party (as required by this Agreement or any other Loan Document), or any other Person, as the same may be amended, restated or otherwise modified from time to time.
“Solvent” means, in reference to any Person, (i) the fair value of the assets of such Person, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of such Person will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (iii) such Person will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) such Person will not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted after the Effective Date.
“Special Purpose Entity” means any Subsidiary of the Borrower that is engaged solely in the business of acquiring, selling, collecting, financing, factoring or refinancing accounts (as defined in the UCC) and other accounts and receivables (including any thereof constituting or evidenced by chattel paper, instruments or general intangibles), all proceeds thereof and all rights (contractual and other), collateral and other assets relating thereto.
“Specified Assets” means, collectively, (a) letter of credit rights (other than to the extent the security interest in such letter of credit rights may be perfected by the filing of UCC financing statements) with a value of less than $2,500,000, (b) commercial tort claims with a value of less than $2,500,000, (c) such assets as to which the Administrative Agent and the Borrower reasonably agree that the cost of obtaining such a security interest therein or perfection thereof are excessive in relation to the benefit to the Secured Parties of the security to be afforded thereby and (d) assets located outside of the United States (other than Equity Interests of Foreign Subsidiaries as contemplated by this Agreement).
“Specified Ancillary Obligations” means all obligations and liabilities (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) of any of the Subsidiaries, 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, operation of law or otherwise, to the Lenders or any of their Affiliates under any Swap Agreement or any Banking Services Agreement.
“Specified Swap Obligation” means, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.
“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those imposed pursuant to such Regulation D of the Board.  Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D of the Board or any comparable regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.

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“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.
“Subordinated Indebtedness Documents” means any document, agreement or instrument evidencing any Subordinated Indebtedness or entered into in connection with any Subordinated Indebtedness.
“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.
“Subsidiary” means any subsidiary of the Borrower.
“Subsidiary Guarantor” means each Material Domestic Subsidiary that 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 Guaranty substantially in the form set forth on Exhibit I hereto (including any and all supplements thereto) and executed by each Subsidiary Guarantor, as amended, restated, supplemented or otherwise modified from time to time.
“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.
“Swap Obligations” means any and all obligations of the Borrower or any Subsidiary, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any such Swap Agreement transaction.
“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be its Applicable Percentage of the total Swingline Exposure at such time.
“Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans hereunder.
“Swingline Loan” means a Loan made pursuant to Section 2.05.

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“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.
“Total Leverage Ratio” has the meaning assigned to such term in Section 6.12(a).
“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, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.
“Trust Company” means an entity whether incorporated or not, doing business under the laws of any State or of the United States, a substantial portion of the business of which consists of receiving deposits or exercising fiduciary powers similar to those permitted to national banks under the authority of the Comptroller of the Currency, and which is supervised and examined by State or Federal authority having supervision over banks or savings associations.  As of the Effective Date, (i) no Loan Party is a “Trust Company” and (ii) the business of the Loan Parties as a whole does not qualify as a “Trust Company”; it being understood and agreed, for the avoidance of doubt, the term “Trust Company” does not include a Person designated as a nonbank trustee or custodian of health savings accounts pursuant to Section 223(d)(1)(B)  of the Code and 26 CFR 1.408-2(e).
“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 or the Alternate Base Rate.
“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests.
“Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is:  (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.
“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.
SECTION 1.02.    Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

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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 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 definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) 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, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
SECTION 1.04.    Accounting Terms; GAAP; 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 (i) without giving effect to any election under Accounting Standards Codification 825-10-25 (or any other Accounting Standards Codification or 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) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (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)  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 other transaction is permitted to be consummated hereunder, to any other such transaction 

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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 Secured 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 Secured 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.
ARTICLE II     
The Credits
SECTION 2.01.    Commitments.  Subject to the terms and conditions set forth herein, each Lender (severally and not jointly) agrees to make Revolving Loans to the Borrower in Dollars from time to time during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Commitment or (b) the sum of the total Revolving Credit Exposures exceeding the Aggregate Commitment.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.
SECTION 2.02.    Loans and Borrowings.  (a) Each Revolving Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Revolving Loans made by the Lenders ratably in accordance with their respective Commitments.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required.  Any Swingline Loan shall be made in accordance with the procedures set forth in Section 2.05.
(b)    Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request in accordance herewith.  Each Swingline Loan 

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shall be an ABR Loan.  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 or result in any increased cost to the Borrower.
(c)    At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000.  At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less than $1,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Aggregate Commitment or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e).  Each Swingline Loan shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000.  Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of ten (10) Eurodollar Borrowings outstanding.
(d)    Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date.
SECTION 2.03.    Requests for Revolving Borrowings.  To request a Revolving Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three (3) Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, one (1) Business Day before the date of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may be given not later than 10:00 a.m., New York City time, on the date of the proposed Borrowing.  Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request signed by the Borrower.  Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02:
(i)    the aggregate 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 Eurodollar Borrowing;
(iv)    in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and
(v)    the location and number of the Borrower’s account 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 Revolving Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with respect to any requested Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following receipt of a Borrowing Request in accordance with this Section, the 

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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.    Intentionally Omitted.
SECTION 2.05.    Swingline Loans.  (a) Subject to the terms and conditions set forth herein, the Swingline Lender may in its sole discretion make Swingline Loans in Dollars to the Borrower from time to time during the Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $5,000,000 or (ii) the sum of the total Revolving Credit Exposures exceeding the Aggregate Commitment; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.
(b)    To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone (confirmed by telecopy), not later than 12:00 noon, New York City time, on the day of a proposed Swingline Loan.  Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan.  The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower.  The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit to the general deposit account of the Borrower with the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e), by remittance to the Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan.
(c)    The Swingline Lender may by written notice given to the Administrative Agent not later than 10:00 a.m., New York City time, on any Business Day require the Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding.  Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate.  Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each  Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans.  Each Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders.  The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender.  Any amounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear; provided that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable, if and to the 

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extent such payment is required to be refunded to the Borrower for any reason.  The purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof.
SECTION 2.06.    Letters of Credit.  (a) General.  Subject to the terms and conditions set forth herein, the Borrower may request the issuance of Letters of Credit denominated in Dollars as the applicant thereof for the support of its or its Subsidiaries’ obligations, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time to time during the Availability Period.  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered into by the Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control.  Notwithstanding anything herein to the contrary, the Issuing Bank shall have no obligation hereunder to issue, and shall not issue, any Letter of Credit the proceeds of which would be made available to any Person (i) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the time of such funding, is itself the subject of any Sanctions or (ii) in any manner that would result in a violation of any Sanctions by any party to this Agreement.  The Borrower unconditionally and irrevocably agrees that, in connection with any Letter of Credit issued for the support of any Subsidiary’s obligations as provided in the first sentence of this paragraph, the Borrower will be fully responsible for the reimbursement of LC Disbursements in accordance with the terms hereof, the payment of interest thereon and the payment of fees due under Section 2.12(b) to the same extent as if it were the sole account party in respect of such Letter of Credit (the Borrower hereby irrevocably waiving any defenses that might otherwise be available to it as a guarantor or surety of the obligations of such a Subsidiary that is an account party in respect of any such Letter of Credit).
(b)    Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by the Issuing Bank, the Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit.  A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the amount of the LC Exposure shall not exceed $5,000,000 and (ii) the sum of the total Revolving Credit Exposures shall not exceed the Aggregate Commitment.
(c)    Expiration Date.  Each Letter of Credit shall expire (or be subject to termination by notice from the Issuing Bank to the beneficiary thereof) at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five (5) Business Days prior to the Maturity Date; provided that any Letter of Credit with a one-year tenor may contain customary automatic renewal provisions agreed upon by the Borrower and the Issuing Bank that provide for the renewal thereof for additional one-year periods (which shall in no event extend beyond the date referenced in clause (ii) above), subject to a right on the part of the Issuing Bank to prevent any such renewal from occurring by 

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giving notice to the beneficiary in advance of any such renewal.  Notwithstanding the foregoing, any Letter of Credit may expire no later than one year after the Maturity Date so long as the Borrower cash collateralizes an amount equal to 105% of the face amount of such Letter of Credit, concurrently with the issuance of such Letter of Credit, in the manner described in Section 2.06(j) and otherwise on terms and conditions reasonably acceptable to the Issuing Bank and the Administrative Agent.
(d)    Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason.  Each Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
(e)    Reimbursement.  If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent in Dollars the amount equal to such LC Disbursement, calculated as of the date the Issuing Bank made such LC Disbursement not later than 12:00 noon, New York City time, on the Business Day immediately following the Business Day that the Borrower shall have received notice of such LC Disbursement; provided that, if such LC Disbursement is not less than $1,000,000, the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.05 that such payment be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount of such LC Disbursement and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving Borrowing or Swingline Loan.  If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders.  Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the extent that Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the Issuing Bank as their interests may appear.  Any payment made by a Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.
(f)    Obligations Absolute.  The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any 

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term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) any payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder.  Neither the Administrative Agent, the Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.
(g)    Disbursement Procedures.  The Issuing Bank shall, promptly following its receipt thereof, examine all documents purporting to represent a demand for payment under a Letter of Credit.  The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.
(h)    Interim Interest.  If the Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the reimbursement is due and payable, at the rate per annum then applicable to ABR Revolving Loans and such interest shall be due and payable on the date when such reimbursement is payable; provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply.  Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except that interest accrued on and after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment.
(i)    Replacement of Issuing Bank.  The Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Lenders of any such replacement of the 

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Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit then outstanding and issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.
(j)    Cash Collateralization.  If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders (the “LC Collateral Account”), an amount in cash equal to 105% of the amount of the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII.  Such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the Secured Obligations.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account and the Borrower hereby grants the Administrative Agent a security interest in the LC Collateral Account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Lenders with LC Exposure  representing greater than 50% of the total LC Exposure), be applied to satisfy other Secured Obligations.  If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived.
(k)    LC Exposure Determination.  For all purposes of this Agreement, the amount of a Letter of Credit that, by its terms provides for one or more automatic increases in the stated amount thereof, shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at the time of determination.
SECTION 2.07.    Funding of Borrowings.  (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as provided in Section 2.05.  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York City or Chicago and designated by the Borrower in the applicable 

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Borrowing Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the Issuing Bank.
(b)    Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation 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 Revolving Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect Interest Periods therefor, all as provided in this Section.  The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  This Section shall not apply to Swingline Borrowings, which may not be converted or continued.
(b)    To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request signed by the Borrower.  Notwithstanding any contrary provision herein, this Section shall not be construed to permit the Borrower to elect an Interest Period for Eurodollar Loans that does not comply with Section 2.02(d).
(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 Eurodollar Borrowing; and

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(iv)    if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period 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 Eurodollar Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.
(d)    Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.
(e)    If the Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.
SECTION 2.09.    Termination and Reduction of Commitments.  (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date.
(b)    The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $5,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.11, the sum of the Revolving Credit Exposures would exceed the Aggregate 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 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.
SECTION 2.10.    Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity Date and (ii) to the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar month and is at least two (2) Business Days after such Swingline Loan is made; provided that on each date that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then outstanding.
(b)    Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by 

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such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.
(c)    The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.
(d)    The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the Obligations.
(e)    Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in the form attached hereto as Exhibit H.  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.  The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, without penalty or premium (other than break funding payments required by Section 2.16), subject to prior notice in accordance with the provisions of this Section 2.11.  The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by written notice (promptly followed by telephonic confirmation of such request) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later than 11:00 a.m., New York City time, three (3) Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m., New York City time, one (1) Business Day before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00 noon, New York City time, on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.  Promptly following receipt of any such notice relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02.  Each prepayment of a Revolving Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) break funding payments pursuant to Section 2.16.  If at any time the sum of the aggregate principal amount of all of the Revolving Credit Exposures exceeds the Aggregate Commitment, the Borrower shall immediately repay Borrowings or cash collateralize LC Exposure in an account with the Administrative Agent pursuant to Section 2.06(j), as applicable, in an aggregate principal amount sufficient to cause the aggregate principal amount of all Revolving Credit Exposures to be less than or equal to the Aggregate Commitment.

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SECTION 2.12.    Fees.  (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the average daily amount of the Available Revolving Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which such 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 Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any commitment fees accruing after the date on which the Commitments terminate shall be payable on demand.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(b)    The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC Exposure and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at a rate per annum separately agreed upon between the Borrower and the Issuing Bank on the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) attributable to Letters of Credit issued by the Issuing Bank during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure, as well as the Issuing Bank’s standard fees and commissions with respect to the issuance, amendment, cancellation, negotiation, transfer, presentment, renewal or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the third (3rd) Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand.  Any other fees payable to the Issuing Bank pursuant to this paragraph shall be payable within ten (10) days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).
(c)    The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.
(d)    All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) 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 (including each Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.
(b)    The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

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(c)    Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, unless waived by the Required Lenders pursuant to Section 9.02, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section.
(d)    Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and upon termination of the 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 Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar 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.
(e)    All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.
SECTION 2.14.    Alternate Rate of Interest.  If prior to the commencement of any Interest Period for a Eurodollar Borrowing:
(a)    the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or
(b)    the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period;
then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and any such Eurodollar Borrowing shall be repaid on the last day of the then current Interest Period applicable thereto and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing.
SECTION 2.15.    Increased Costs.  (a) If any Change in Law shall:
(i)    impose, modify or deem applicable any reserve, special deposit, 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 Issuing Bank;

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(ii)    impose on any Lender or the Issuing Bank or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; 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, letters of credit, 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 increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, the Issuing Bank or such other Recipient hereunder, whether of principal, interest or otherwise, then the Borrower will pay to such Lender, the Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, the Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
(b)    If any Lender or the Issuing Bank 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 or the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered.
(c)    A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank 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 or the Issuing Bank, as the case may be, 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 or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 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 Eurodollar 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 

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of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.11 and is revoked in accordance therewith) or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for deposits in Dollars of a comparable amount and period from other banks in the eurodollar market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the 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.  (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 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.

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(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.  (23)    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 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.
(i)    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), executed originals 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, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. Federal withholding Tax 

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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 or IRS Form W-8BEN-E 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, executed originals 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 F-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) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E; or

(4) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit F-2 or Exhibit F-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 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 F-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 originals 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 

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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.  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 “Lender” includes the Issuing Bank and the term “applicable law” includes FATCA.
SECTION 2.18.    Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of Set-offs.
(a)    The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15, 2.16 or 2.17, or otherwise) prior to 12:00 noon, New York City time on the date when due, in immediately available funds, without set-off or counterclaim.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent at its offices at 10 South Dearborn Street, Chicago, Illinois 60603, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case 

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of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder shall be made in Dollars.
(b)    Any proceeds of Collateral received by the Administrative Agent (i) not constituting a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower) or (ii) after an Event of Default has occurred and is continuing and the Administrative Agent so elects or the Required Lenders so direct, such funds shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements including amounts then due to the Administrative Agent and the Issuing Bank from the Borrower, second, to pay any fees or expense reimbursements then due to the Lenders from the Borrower, third, to pay interest then due and payable on the Loans ratably, fourth, to prepay principal on the Loans and unreimbursed LC Disbursements and any other amounts owing with respect to Banking Services Obligations and Swap Obligations ratably, fifth, to pay an amount to the Administrative Agent equal to one hundred five percent (105%) of the aggregate undrawn face amount of all outstanding Letters of Credit and the aggregate amount of any unpaid LC Disbursements, to be held as cash collateral for such Obligations, and sixth, to the payment of any other Secured Obligation due to the Administrative Agent or any Lender by the Borrower.  Notwithstanding the foregoing, amounts received from any Loan Party shall not be applied to any Excluded Swap Obligation of such Loan Party.  Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless a Default is in existence, none of the Administrative Agent or any Lender shall apply any payment which it receives to any Eurodollar Loan of a Class, except (a) on the expiration date of the Interest Period applicable to any such Eurodollar Loan or (b) in the event, and only to the extent, that there are no outstanding ABR Loans of the same Class and, in any event, the Borrower shall pay the break funding payment required in accordance with Section 2.16.  The Administrative Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations.
(c)    At the election of the Administrative Agent, all payments of principal, interest, LC Disbursements, 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 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 (including Swingline Loans) and that all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03 or 2.05, as applicable 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 or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans and participations in LC Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Loans and participations in LC 

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Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered,  such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements and Swingline 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 or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
(f)    If any Lender shall fail to make any payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), (i) apply any amounts thereafter received by the Administrative Agent for the account of such Lender and for the benefit of the Administrative Agent, the Swingline Lender or the Issuing Bank to satisfy such Lender’s obligations to it under such Section until all such unsatisfied obligations are fully paid and/or (ii) hold any such amounts in a segregated account over which the Administrative Agent shall have exclusive control as cash collateral for, and application to, any future funding obligations of such Lender under any such Section; in the case of each of clauses (i) and (ii) above, in any order as determined by the Administrative Agent in its discretion.
SECTION 2.19.    Mitigation Obligations; Replacement of Lenders.  (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, 

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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 (and if a Commitment is being assigned, the Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a 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.    Expansion Option.  The Borrower may from time to time elect to increase the Commitments or enter into one or more tranches of term loans (each an “Incremental Term Loan”), in each case in minimum increments of $5,000,000 so long as, after giving effect thereto, the aggregate amount of such increases and all such Incremental Term Loans does not exceed $50,000,000.  The Borrower may arrange for any such increase or tranche to be provided by one or more Lenders (each Lender so agreeing to an increase in its Commitment, or to participate in such Incremental Term Loans, an “Increasing Lender”), or by one or more new banks, financial institutions or other entities (each such new bank, financial institution or other entity, an “Augmenting Lender”; provided that no Ineligible Institution may be an Augmenting Lender), which agree to increase their existing Commitments, or to participate in such Incremental Term Loans, or provide new Commitments, as the case may be; provided that (i) each Augmenting Lender, shall be subject to the approval of the Borrower and the Administrative Agent and (ii) (x) in the case of an Increasing Lender, the Borrower and such Increasing Lender execute an agreement substantially in the form of Exhibit C hereto, and (y) in the case of an Augmenting Lender, the Borrower and such Augmenting Lender execute an agreement substantially in the form of Exhibit D hereto.  No consent of any Lender (other than the Lenders participating in the increase or any Incremental Term Loan) shall be required for any increase in Commitments or Incremental Term Loan pursuant to this Section 2.20.  Increases and new Commitments and Incremental Term Loans created pursuant to this Section 2.20 shall become effective on the date agreed by the Borrower, the Administrative Agent and the relevant Increasing Lenders or Augmenting Lenders, and the Administrative Agent shall notify each Lender thereof.  Notwithstanding the foregoing, no increase in the Commitments (or in the Commitment of any Lender) or tranche of Incremental Term Loans shall become effective under this paragraph unless, (i) on the proposed date of the effectiveness of such increase or Incremental Term Loans, (A) the conditions set forth in paragraphs (a) and (b) of Section 4.02 shall be satisfied or waived by the Required Lenders and the Administrative Agent shall have received a certificate to that effect dated such date and executed by a Financial Officer of the Borrower and (B) the Borrower shall be in compliance (on a pro forma basis) with the covenants contained in Section 6.12 and (ii) the Administrative Agent shall have received documents and opinions consistent with those delivered on the Effective Date as to the organizational power and authority of the Borrower to borrow hereunder after giving effect to such increase.  On the effective date of any increase in the Commitments or any Incremental Term Loans being made, (i) each relevant Increasing Lender and Augmenting Lender shall make available to the Administrative Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the benefit of the other Lenders, as being required in order to cause, after giving effect to such increase and the use of such amounts to make payments to such other Lenders, each Lender’s portion of the outstanding Revolving Loans of all 

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the Lenders to equal its Applicable Percentage of such outstanding Revolving Loans, and (ii) the Borrower shall be deemed to have repaid and reborrowed all outstanding Revolving Loans as of the date of any increase in the Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest Periods if applicable, specified in a notice delivered by the Borrower, in accordance with the requirements of Section 2.03).  The deemed payments made pursuant to clause (ii) of the immediately preceding sentence shall be accompanied by payment of all accrued interest on the amount prepaid and, in respect of each Eurodollar Loan, shall be subject to indemnification by the Borrower pursuant to the provisions of Section 2.16 if the deemed payment occurs other than on the last day of the related Interest Periods.  The Incremental Term Loans (a) shall rank pari passu in right of payment with the Revolving Loans, (b) shall not mature earlier than the Maturity Date (but may have amortization prior to such date), (c) shall have terms as agreed between the Borrower and the Lenders providing such Incremental Term Loans and reasonably acceptable to the Administrative Agent and (d) be treated substantially the same as (and in any event no more favorably than) the Revolving Loans; provided that (i) the terms and conditions applicable to any tranche of Incremental Term Loans maturing after the Maturity Date may provide for material additional or different financial or other covenants or prepayment requirements applicable only during periods after the Maturity Date and (ii) the Incremental Term Loans may be priced differently than the Revolving Loans.  Incremental Term Loans may be made hereunder pursuant to an amendment or restatement (an “Incremental Term Loan Amendment”) of this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each Increasing Lender participating in such tranche, each Augmenting Lender participating in such tranche, if any, and the Administrative Agent.  The Incremental Term Loan Amendment may, without the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent, to effect the provisions of this Section 2.20.  Nothing contained in this Section 2.20 shall constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its Commitment hereunder, or provide Incremental Term Loans, at any time.
SECTION 2.21.    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 Commitment of such Defaulting Lender pursuant to Section 2.12(a);
(b)    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); provided, that, except as otherwise provided in Section 9.02, this clause (b) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender directly affected thereby;
(c)    if any Swingline Exposure or LC Exposure exists at the time such Lender becomes a Defaulting Lender then:
(i)    all or any part of the Swingline Exposure and LC Exposure of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent that the sum of all non-Defaulting Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total of all non-Defaulting Lenders’ Commitments;

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(ii)    if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one (1) Business Day following notice by the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize for the benefit of the Issuing Bank only the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.06(j) for so long as such LC Exposure is outstanding;
(iii)    if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;
(iv)    if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Section 2.12(a) and Section 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and
(v)    if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or remedies of the Issuing Bank or any other Lender hereunder, all letter of credit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and
(d)    so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure and the Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.21(c), and participating interests in any such newly made Swingline Loan or any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.21(c)(i) (and such Defaulting Lender shall not participate therein).
If (i) a Bankruptcy Event with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii) the Swingline Lender or the Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, the Swingline Lender shall not be required to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless the Swingline Lender or the Issuing Bank, as the case may be, shall have entered into arrangements with the Borrower or such Lender, satisfactory to the Swingline Lender or the Issuing Bank, as the case may be, to defease any risk to it in respect of such Lender hereunder.
In the event that the Administrative Agent, the Borrower, the Swingline Lender and the Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage.

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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 Material Subsidiaries is duly organized, 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 identifies as of the Effective Date, 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 capital stock or other 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.  As of the Effective Date, all of the outstanding shares of capital stock and other equity interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable and all such shares and other equity interests indicated on Schedule 3.01 as owned by the Borrower or another Subsidiary are owned, beneficially and of record, by the Borrower or any Subsidiary free and clear of all Liens, other than Liens created under the Loan Documents.  There are no outstanding commitments or other obligations of the Borrower or any Subsidiary to issue, and no options, warrants or other rights of any Person to acquire, any shares of any class of capital stock or other equity interests of the Borrower or any Subsidiary.
SECTION 3.02.    Authorization; Enforceability.  The Transactions are within each Loan Party’s organizational powers and have been duly authorized by all necessary organizational actions and, if required, actions by equity holders.  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 (i) the filing of UCC financing statements, (ii) filings with the United States Patent and Trademark Office and the United States Copyright Office, (iii) recordation of the Mortgages, (iv) such as have been made or obtained and are in full force and effect, (v) such actions, consents and approvals the failure of which to be obtained or made could not reasonably be expected to result in a Material Adverse Effect, (vi) filings or other actions listed on Schedule 3.03 and (vii) any other filings or registrations required by the Collateral Documents, (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, except for violations or defaults which could not reasonably be expected to result in a Material Adverse Effect, and (d) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries, other than Liens created under the Loan Documents.
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 

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equity and cash flows (i) as of and for the fiscal years ended January 31, 2014 and January 31, 2015, in each case, reported on by PricewaterhouseCoopers LLP, independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the fiscal year ended April 30, 2015, certified by its chief financial officer.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the 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 clause (ii) above.
(b)    Since January 31, 2015, there has been no material adverse change in the business, assets, results of operations or financial condition of the Borrower and its Subsidiaries, taken as a whole.
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, except for Permitted Liens, 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 and except where the failure to have such title could not reasonably be expected to result in, individually or in the aggregate, a Material Adverse Effect.
(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.  (c) 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 or (ii) that involve this Agreement or the Transactions.
(b)    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, or other labor disputes pending or threatened against the Borrower or any of its Subsidiaries, the hours worked and payments made to employees of the Borrower and its Subsidiaries have not been in material violation of the Fair Labor Standards Act or any other applicable law dealing with such matters and all 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 a liability on the books of the Borrower or such Subsidiary to the extent required by GAAP.  Except as could not reasonably be expected to result in a Material Adverse Effect, the consummation of the Transactions will not give rise to a right of termination or right of renegotiation on the part of any union under any material collective bargaining agreement to which the Borrower or any of its Subsidiaries (or any predecessor) is a party or by which the Borrower or any of its Subsidiaries (or any predecessor) is bound.

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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 federal income and all other material Tax returns and reports required to have been filed and has paid or caused to be paid all federal income and all other material 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.  The Borrower has disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  Neither the 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 written 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 and, it being understood that actual results may differ in material respects from projections.
SECTION 3.12.    Federal Reserve Regulations.  No part of the proceeds of any Loan have been used or will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.
SECTION 3.13.    [Intentionally Omitted].
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 6.08.
SECTION 3.16.    Solvency.
(a)    On the Effective Date, immediately after the consummation of the Transactions to occur on the Effective Date, the Borrower and its Subsidiaries, taken as a whole, are and will be Solvent.

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(b)    On the Effective Date, immediately after giving effect to the consummation of the Transactions, the Borrower does not intend to, nor will it permit any of its Subsidiaries to, and the Borrower does not believe that it or any of its Subsidiaries will, incur debts beyond its ability to pay such debts as they mature, taking into account the timing of and amounts of cash to be received by it or any such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its Indebtedness or the Indebtedness of any such Subsidiary.
SECTION 3.17.    Insurance.  The Borrower maintains, and has caused each Subsidiary to maintain, with financially sound and reputable insurance companies, insurance on all their real and personal property in such amounts, subject to such deductibles and self-insurance retentions and covering such properties and risks as are adequate and customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations.
SECTION 3.18.    Security Interest in Collateral.  The Security Agreement is effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Stock described in the Security Agreement, when stock certificates representing such Pledged Stock are delivered to the Administrative Agent (together with properly completed and signed stock powers or endorsements), and in the case of the other Collateral described in the Security Agreement, when financing statements and other filings specified in Schedule 3.18 in appropriate form are filed in the offices specified on Schedule 3.18 together with payment of any filing or recordation fees, or, with respect to after-acquired property, when the requirements set forth in Section 5.10 have been complied with, the Administrative Agent shall have a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds thereof (except for registration of and application for intellectual property filed outside the United States) to the extent such Lien can be perfected by the filing of financing statements under the applicable UCC, as security for the Secured Obligations, in each case prior and superior in right to any other Person (except, in the case of Collateral other than Pledged Stock, Liens permitted by Section 6.02, and in the case of Collateral constituting Pledged Stock, inchoate Liens arising by operation of law), in each case, to the extent required by the Security Agreement.
SECTION 3.19.    Non-Bank Trustee Matters. Borrower (a) is, and has been continuously since February 27, 2006, a nonbank trustee approved by the IRS under Treasury Regulation Section 1.408-2(e) and any applicable state and local laws and has administered fiduciary accounts in a manner consistent with such applicable law and (b) has not received any notice of investigation or revocation regarding Borrower's status as an approved nonbank trustee.

SECTION 3.20.    Anti-Corruption 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 and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such Subsidiary any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, 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 or Letter of Credit, use of proceeds or other Transactions will violate any Anti-Corruption Law or applicable Sanctions.

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ARTICLE IV     
Conditions
SECTION 4.01.    Effective Date.  The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):
(a)    The Administrative Agent (or its counsel) shall have received (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 described in the list of closing documents attached as Exhibit E.
(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 Willkie Farr & Gallagher 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 satisfactory to the Administrative Agent and its counsel and as further described in the list of closing documents attached as Exhibit E.
(d)    The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of the Borrower, certifying (i) that the representations and warranties contained in Article III are true and correct in all material respects (provided that any representation and warranty that is qualified by Material Adverse Effect or other materiality qualifier shall be true and correct in all respects) as of such date 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 qualified by Material Adverse Effect or other materiality qualifier, in all respects) as of such earlier date and (ii) that no Default or Event of Default has occurred and is continuing as of such date.
(e)    The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.
The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding.

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SECTION 4.02.    Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction of the following conditions:
(a)    The representations and warranties of the Borrower set forth in this Agreement shall be true and correct in all material respects (provided that any representation and warranty that is qualified by Material Adverse Effect or other materiality qualifier shall be true and correct in all respects) on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (provided that any representation and warranty that is qualified by Material Adverse Effect or other materiality qualifier shall be true and correct in all respects) as of such earlier date.
(b)    At the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default shall have occurred and be continuing.
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.
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 and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and all LC Disbursements shall have been reimbursed, 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), its audited consolidated 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 PricewaterhouseCoopers 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), 

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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 (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 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 financial statements under clause (a) above, a certificate of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the course of their examination of such financial statements of any Default (which certificate may be limited to the extent required by accounting rules or guidelines);
(e)    as soon as available, but in any event not later than the end of, and no earlier than sixty (60) days prior to the end of, each fiscal year of the Borrower, a copy of the plan and forecast (including a projected consolidated and consolidating balance sheet, income statement and funds flow statement) of the Borrower for each month of the upcoming fiscal year in form reasonably consistent with the projections provided to the Administrative Agent prior to the date hereof or other form reasonably satisfactory to the Administrative Agent;
(f)    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; and
(g)    promptly following any request therefor, 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.
Documents required to be delivered pursuant to clauses (a) and (b) of this Section 5.01 (A) may be delivered electronically and (B) shall be deemed to have been delivered on the date on which such documents are (i) filed for public availability on the SEC’s Electronic Data Gathering and Retrieval System, (ii) posted or the Borrower provides a link thereto on http://www.healthequity.com or http://ir.healthequity.com or at another website identified in a notice from the Borrower and accessible by the Lenders without charge; or (iii) posted on the Borrower’s behalf on an Internet or intranet website, if any, to which the Administrative Agent has access (whether a commercial, third-party website or whether sponsored by the Administrative Agent).

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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 or proceeding by or before any arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;
(c)    the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; and
(d)    any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect.
Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the 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 Material Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect (i) its legal existence, and (ii) the rights, qualifications, licenses, permits, privileges, franchises, governmental authorizations and intellectual property rights material to the conduct of its business, and maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted, except in the case of this clause (ii), to the extent the failure to do so could not 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) except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect, 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 carriers (i) insurance in such amounts (with no greater risk retention) and against such risks (including loss or damage by fire and loss in transit; theft, burglary, pilferage, larceny, embezzlement, and other criminal activities; business interruption; and general liability) and such other hazards, as is customarily maintained by companies of established repute engaged in the same or similar businesses operating in the same or similar locations and (ii) all insurance required pursuant to the Collateral Documents.  The Borrower will furnish to the Lenders, upon request of the Administrative Agent, information in reasonable detail as to the insurance so maintained.  The Borrower shall deliver to the Administrative Agent endorsements (x) to all “All Risk” physical damage insurance policies on all of the tangible personal property and assets of the Borrower and the Subsidiary Guarantors naming the Administrative Agent as lender loss payee, and (y) to all general liability and other liability policies of the Borrower and the Subsidiary Guarantors naming the 

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Administrative Agent an additional insured.  In the event the Borrower or any of its Subsidiaries at any time or times hereafter shall fail to obtain or maintain any of the policies or insurance required herein or to pay any premium in whole or in part relating thereto, then the Administrative Agent, without waiving or releasing any obligations or resulting Default hereunder, may at any time or times thereafter (but shall be under no obligation to do so) obtain and maintain such policies of insurance and pay such premiums and take any other action with respect thereto which the Administrative Agent deems advisable.  All sums so disbursed by the Administrative Agent shall constitute part of the Obligations, payable as provided in this Agreement.  The Borrower will furnish to the Administrative Agent and the Lenders prompt written notice of any casualty or other insured damage to any material portion of the Collateral or the commencement of any action or proceeding for the taking of any material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding.
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, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, including environmental assessment reports and Phase I or Phase II studies, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; provided, however, that so long as no Event of Default has occurred and is continuing, (a) not more than two such inspections described in this Section 5.06 shall occur in any fiscal year and (b) the Borrower shall have no obligation to reimburse the Administrative Agent for the costs or expenses of more than one such inspection described in this Section 5.06 in any fiscal year. 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 and its Subsidiaries’ assets for internal use by the Administrative Agent and the Lenders.
SECTION 5.07.    Compliance with Laws and Material Contractual Obligations.  The Borrower will, and will cause each of its Subsidiaries to, (i) comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property (including without limitation Environmental Laws) and (ii) perform in all material respects its obligations under material agreements to which it is a party, in each case 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 and applicable Sanctions.
SECTION 5.08.    Use of Proceeds.  The proceeds of the Loans will be used only for working capital and general corporate purposes of the Borrower and its Subsidiaries (including, without limitation, for the financing of Permitted Acquisitions and investments, in each case, to the extent permitted by the terms of this Agreement).  No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X.  The Borrower will not request any Borrowing or Letter of Credit, 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, the proceeds of any Borrowing or Letter of Credit (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, (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, to the extent such activities, businesses or transaction would be prohibited by Sanctions if conducted by a 

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corporation incorporated in the United States or in a European Union member state or (iii) in any manner that would result in the violation of  any Sanctions applicable to any party hereto.
SECTION 5.09.    Non-Bank Trustee Matters. So long as the Borrower relies on its designation as a nonbank trustee, it will comply with the requirements to maintain its approval as a nonbank trustee under Treasury Regulation Section 1.408-2(e) and any applicable state and local laws, including but not limited to (a) maintaining adequate net worth, (b) conducting annual audits of its books and records by a qualified public accountant as defined in Treasury Regulation Section 1.408-2(e)(5)(viii) and (c) timely complying with the requirement to annually submit a status verification form to the IRS's Employee Plans Compliance Unit in accordance with applicable law and IRS guidelines.
SECTION 5.10.    Subsidiary Guarantors; Pledges; Additional Collateral; Further Assurances.
(a)    As promptly as possible but in any event within forty-five (45) days (or such later date as may be agreed upon by the Administrative Agent) after any Person becomes a Subsidiary or any Subsidiary qualifies independently as, or is designated by the Borrower or the Administrative Agent as, a Material Domestic Subsidiary pursuant to the definition of “Material Domestic Subsidiary”, the Borrower shall provide the Administrative Agent with written notice thereof setting forth information in reasonable detail describing the material assets of such Person and shall cause each such Subsidiary which also qualifies as a Material Domestic Subsidiary to deliver to the Administrative Agent a joinder to the Subsidiary Guaranty and the Security Agreement (in each case in the form contemplated thereby) pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof, such Subsidiary Guaranty and the Security Agreement to be accompanied by appropriate corporate resolutions, other corporate documentation and legal opinions in form and substance reasonably satisfactory to the Administrative Agent and its counsel.
(b)    The Borrower will cause, and will cause each other Loan Party to cause, all of its owned property (whether real, personal, tangible, intangible, or mixed, but excluding Excluded Assets) to be subject at all times to first priority, perfected Liens in favor of the Administrative Agent for the benefit of the Secured Parties to secure the Secured Obligations in accordance with the terms and conditions of the Collateral Documents, subject in any case to Liens permitted by Section 6.02.  Without limiting the generality of the foregoing, the Borrower (i) will cause the Applicable Pledge Percentage of the issued and outstanding Equity Interests of each Pledge Subsidiary (other than Equity Interests constituting Excluded Assets) directly owned by the Borrower or any other Loan Party to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent to secure the Secured Obligations in accordance with the terms and conditions of the Collateral Documents or such other pledge and security documents as the Administrative Agent shall reasonably request and (ii) will, and will cause each Subsidiary Guarantor to, deliver Mortgages and Mortgage Instruments with respect to real property owned by the Borrower or such Guarantor to the extent, and within such time period as is, reasonably required by the Administrative Agent.  Notwithstanding the foregoing, (i) no such Mortgages and Mortgage Instruments are required to be delivered hereunder until the date that is sixty (60) days after the Effective Date or such later date as the Administrative Agent may agree in the exercise of its reasonable discretion with respect thereto, (ii) no such pledge agreement in respect of the Equity Interests of a Foreign Subsidiary shall be required hereunder (A) until the date that is ninety (90) days after the Effective Date or such later date as the Administrative Agent may agree in the exercise of its reasonable discretion with respect thereto, and (B) to the extent the Administrative Agent or its counsel determines that such pledge would not provide material credit support for the benefit of the Secured Parties pursuant to legally valid, binding and enforceable pledge agreements, (iii) no control or similar arrangements shall be required with respect to deposit or securities accounts unless so requested by the Administrative Agent, (iv) the Borrower and the Loan Parties shall not be required to take any action with respect to the 

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creation or perfection of Liens under foreign law with respect to any Collateral, (v) no landlord lien waivers, estoppels or collateral access letters shall be required and (vi) no Loan Party shall be required to take any action in order to create or perfect a security interest in Specified Assets.
(c)    Without limiting the foregoing, the Borrower will, and will cause each Subsidiary to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such documents, agreements and instruments, and will take or cause to be taken such further actions (including the filing and recording of financing statements, fixture filings, Mortgages, deeds of trust and other documents and such other actions or deliveries of the type required by Section 4.01, as applicable), which may be required by law or which the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all at the expense of the Borrower.
(d)    If any assets (including any real property or improvements thereto or any interest therein) are acquired by a Loan Party after the Effective Date (other than Excluded Assets and assets constituting Collateral under the Security Agreement that become subject to the Lien under the Security Agreement upon acquisition thereof), the Borrower will notify the Administrative Agent thereof, and, if requested by the Administrative Agent, the Borrower will cause such assets to be subjected to a Lien securing the Secured Obligations and will take, and cause the other Loan Parties to take, such actions as shall be necessary or reasonably requested by the Administrative Agent to grant and perfect such Liens, including actions described in paragraph (c) of this Section, all at the expense of the Borrower.
ARTICLE VI     
Negative Covenants
Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees  payable hereunder have been paid in full and all Letters of Credit have expired or terminated, in each case, without any pending draw, and all LC Disbursements shall have been reimbursed, 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 Secured Obligations;
(b)    Indebtedness existing on the date hereof and, to the extent constituting an aggregate principal amount of greater than $1,000,000 as 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 and any Permitted Refinancing Indebtedness incurred to Refinance such Indebtedness;
(c)    Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary; provided that Indebtedness of any Subsidiary that is not a Loan Party to any Loan Party shall be subject to the limitations set forth in Section 6.04(d);
(d)    Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of the Borrower or any other Subsidiary;

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(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 two hundred seventy (270) 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 $25,000,000 at any time outstanding;
(f)    Indebtedness of the Borrower or any Subsidiary as an account party in respect of trade letters of credit;
(g)    Indebtedness of the Borrower or any Subsidiary secured by a Lien on any asset (not constituting Collateral) of the Borrower or any Subsidiary; provided that the aggregate outstanding principal amount of Indebtedness permitted by this clause (g) shall not in the aggregate exceed $10,000,000 at any time; 
(h)    to the extent constituting Indebtedness, obligations under any Swap Agreement permitted under Section 6.05;
(i)    Indebtedness owed to (including obligations in respect of letters of credit or bank guarantees or similar instruments for the benefit of) any Person providing workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance to the Borrower or any Subsidiary, pursuant to reimbursement or indemnification obligations to such Person, in each case in the ordinary course of business or consistent with past practice or industry practices;
(j)    Indebtedness in respect of performance bonds, bid bonds, appeal bonds, surety bonds and completion guarantees and similar obligations of the Borrower and the Subsidiaries, in each case, reasonably required in the ordinary course of business or consistent with past practice or industry practices, including those incurred to secure health, safety and environmental obligations of the Borrower and its Subsidiaries in the ordinary course of business and otherwise as permitted by the Loan Documents; 
(k)    (i) Indebtedness incurred or assumed by the Borrower or any Subsidiary in connection with the acquisition of assets or Equity Interests (including a Permitted Acquisition), where such acquisition, merger or consolidation is not prohibited by this Agreement and such Indebtedness is not created in contemplation of or in connection with such acquisition, in each case so long as at the time of any such incurrence or assumption and immediately after giving effect (including giving effect on a pro forma basis) thereto the Borrower is in compliance with the covenants set forth in Section 6.12, and (ii) any Permitted Refinancing Indebtedness incurred in respect thereof;
(l)    Indebtedness arising from agreements of the Borrower or any Subsidiary providing for indemnification, adjustment of purchase or acquisition price or similar obligations (including earn-outs), in each case, incurred or assumed in connection with the Transactions, any Permitted Acquisition, other Investments or the disposition of any business, assets or a Subsidiary not prohibited by this Agreement; 

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(m)    Indebtedness in respect of letters of credit, bank guarantees, warehouse receipts or similar instruments issued to support performance obligations and trade letters of credit (other than obligations in respect of other Indebtedness) in the ordinary course of business or consistent with past practice or industry practice; 
(n)    Indebtedness consisting of (i) the financing of insurance premiums or (ii) take-or-pay obligations contained in supply arrangements, in each case, in the ordinary course of business;
(o)    unsecured Indebtedness in an aggregate principal amount not exceeding $25,000,000 at any time outstanding; and
(p)    Indebtedness of the Borrower or any of its Subsidiaries in respect of workers’ compensation claims, self-insurance obligations, customs, performance, bid and surety bonds and completion guaranties, in each case in the ordinary course of business.
Further, for purposes of determining compliance with this Section 6.01, (A) Indebtedness need not be permitted solely by reference to one category of permitted Indebtedness described in Sections 6.01(a) through (p) but may be permitted in part under any combination thereof and (B) in the event that an item of Indebtedness (or any portion thereof) meets the criteria of one or more of the categories of permitted Indebtedness described in Sections 6.01(a) through (p), the Borrower shall, in its sole discretion, classify or reclassify, or later divide, classify or reclassify, such item of Indebtedness (or any portion thereof) in any manner that complies with this Section 6.01 and will only be required to include the amount and type of such item of Indebtedness (or any portion thereof) in one of the above clauses and such item of Indebtedness shall be treated as having been incurred or existing pursuant to only one of such clauses; provided, that all Indebtedness outstanding on the Effective Date (other than Secured Obligations or Indebtedness constituting an aggregate principal amount of $1,000,000 or less) and set forth in Schedule 6.01 shall at all times be deemed to have been incurred pursuant to clause (b) of this Section 6.01.
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)    Liens created pursuant to any Loan Document;
(b)    [Intentionally Omitted];
(c)    any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and, to the extent securing an aggregate principal amount of greater than $1,000,000 as 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;
(d)    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; 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, (iii) such Lien shall secure only those obligations which 

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it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof and (iv) such Lien secures Indebtedness or Permitted Refinancing Indebtedness permitted by Section 6.01(k);
(e)    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 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; 
(f)    bankers’ Liens, rights of setoff and other similar Liens existing solely with respect to cash and cash equivalents on deposit in one or more accounts maintained by the Borrower or any other Subsidiary, in each case granted in the ordinary course of business or arising by operation of law in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank or banks; provided that such deposit accounts and the funds on deposit therein are not established or deposited for the purpose of providing collateral for any Indebtedness;
(g)    Liens for Taxes, assessments or other governmental charges or levies not yet delinquent by more than 30 days or that are being contested in compliance with Section 5.04, and in each case for which adequate reserves are maintained in accordance with GAAP; 
(h)    other statutory Liens, including Liens imposed by law, such as landlord’s, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, supplier’s, construction or other like Liens, securing obligations that are not overdue by more than 30 days or that are being contested in good faith by appropriate proceedings and in respect of which, if applicable, the Borrower or any Subsidiary shall have set aside on its books reserves in accordance with GAAP; 
(i)    (i) pledges and deposits and other Liens made in the ordinary course of business in compliance with the Federal Employers Liability Act or any other workers’ compensation, unemployment insurance and other social security laws or regulations and deposits securing liability to insurance carriers under insurance or self-insurance arrangements in respect of such obligations and (ii) pledges and deposits and other Liens securing liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance to the Borrower or any Subsidiary; 
(j)    Liens securing judgments that do not constitute an Event of Default under paragraph (k) of Article VII;
(k)    any interest or title of a lessor or sublessor under any leases or subleases entered into by the Borrower or any Subsidiary in the ordinary course of business;
(l)    Liens (i) arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights, (ii) attaching to commodity trading accounts or other commodity brokerage accounts incurred in the ordinary course of business or (iii) encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to brokerage accounts incurred in the ordinary course of business and not for speculative purposes;

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(m)    leases or subleases, licenses or sublicenses (including with respect to Intellectual Property) granted to others in the ordinary course of business not interfering in any material respect with the business of the Borrower and its Subsidiaries, taken as a whole;
(n)    Liens solely on any cash earnest money deposits made by the Borrower or any of the Subsidiaries (i) in connection with any letter of intent or purchase agreement in respect of any investment permitted hereunder, or (ii) 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 of this clause (ii) in the ordinary course of business;
(o)    Liens on Equity Interests in joint ventures (i) securing obligations of such joint ventures or (ii) pursuant to the relevant joint venture agreement or arrangement;
(p)    Liens securing insurance premiums financing arrangements, provided, that such Liens are limited to the applicable unearned insurance premiums;
(q)    Liens arising out of Sale and Leaseback Transactions permitted by Section 6.10 to the extent the assets covered by such Liens are subject to such Sale and Leaseback Transactions; 
(r)    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;
(s)    Liens arising from precautionary UCC financing statements regarding operating leases permitted hereunder; and
(t)    Liens on assets (not constituting Collateral) of the Borrower and its Subsidiaries not otherwise permitted above so long as the aggregate principal amount of the Indebtedness and other obligations subject to such Liens does not at any time exceed $10,000,000.
For purposes of determining compliance with this Section 6.02, (A) a Lien securing an item of Indebtedness need not be permitted solely by reference to one category of permitted Liens described in Sections 6.02(a) through (t) but may be permitted in part under any combination thereof and (B) in the event that a Lien securing an item of Indebtedness (or any portion thereof) meets the criteria of one or more of the categories of permitted Liens described in Sections 6.02(a) through (t), the Borrower shall, in its sole discretion, classify or reclassify, or later divide, classify or reclassify, such Lien securing such item of Indebtedness (or any portion thereof) in any manner that complies with this covenant and will only be required to include the amount and type of such Lien or such item of Indebtedness secured by such Lien in one of the above clauses and such Lien securing such item of Indebtedness will be treated as being incurred or existing pursuant to only one of such clauses. In addition, with respect to any Lien securing Indebtedness that was permitted to be secured at the time of incurrence thereof, additional Indebtedness resulting solely from the accrual of interest, accretion of accreted value, the payment of interest in the form of additional Indebtedness or in the form of common stock of the Borrower, or the amortization of original issue discount, the accretion of original issue discount or liquidation preference and increases in the amount of Indebtedness outstanding solely as a result of fluctuations in the exchange rate of currencies, in each case with respect to such permitted secured Indebtedness, shall also be permitted to be secured by such Lien.
SECTION 6.03.    Fundamental Changes and Asset Sales.  (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 

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to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) any of its assets (including pursuant to a Sale and Leaseback Transaction), or any of the Equity Interests of any of its Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that:
(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 Loan Party in a transaction in which the surviving entity is such Loan Party (provided that any such merger involving the Borrower must result in the Borrower as the surviving entity);
(iii)    any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to a Loan Party;
(iv)    the Borrower and its Subsidiaries may (A) sell inventory in the ordinary course of business, (B) effect sales, trade-ins or dispositions of used equipment for value in the ordinary course of business consistent with past practice, (C) enter into licenses of technology in the ordinary course of business, and (D) make any other sales, transfers, leases or dispositions of assets, the book value of which, together with the book value of all other assets of the Borrower and its Subsidiaries previously sold, transferred, leased or disposed of in reliance upon this clause (D) during any fiscal year of the Borrower, does not exceed $10,000,000;
(v)    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; and
(vi)    investments permitted by Section 6.04, Permitted Liens, and Restricted Payments permitted by Section 6.07 will not be prohibited;
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 6.04.
(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.
SECTION 6.04.    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 capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any Person or any assets of any other Person constituting a business unit, except:

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(a)    Permitted Investments;
(b)    Permitted Acquisitions;
(c)    investments by the Borrower and its Subsidiaries existing on the date hereof in the capital stock of its Subsidiaries;
(d)    investments, loans, advances or capital contributions made by the Borrower in or to any Subsidiary and made by any Subsidiary in or to the Borrower or any other Subsidiary (provided that not more than an aggregate amount of $25,000,000 in investments, loans or advances or capital contributions may be made and remain outstanding, at any time, by Loan Parties to Subsidiaries which are not Loan Parties);
(e)    accounts receivable, security deposits and prepayments arising and trade credit granted in the ordinary course of business and any assets or securities received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss and any prepayments and other credits to suppliers made in the ordinary course of business;
(f)    Swap Agreements permitted under Section 6.05;
(g)    investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with or judgments against, customers and suppliers, in each case in the ordinary course of business or Investments acquired by the Borrower or a Subsidiary as a result of a foreclosure by the Borrower or any of the Subsidiaries with respect to any secured Investments or other transfer of title with respect to any secured Investment in default; 
(h)    Guarantees by the Borrower or any Subsidiary of operating leases (other than Capital Lease Obligations) or of other obligations that do not constitute Indebtedness, in each case entered into by the Borrower or any Subsidiary in the ordinary course of business;
(i)    investments consisting of Restricted Payments permitted by Section 6.07;
(j)    Guarantees constituting Indebtedness permitted by Section 6.01; and
(k)    loans or advances made by the Borrower or any Subsidiary to its officers, directors, employees or consultants on an arms-length basis (i) in the ordinary course of business for travel and entertainment expenses, relocation costs and similar purposes up to a maximum of $1,000,000 in the aggregate at any one time outstanding, (ii) in respect of payroll payments and expenses in the ordinary course of business and (iii) in connection with such person’s purchase of Equity Interests of the Borrower solely to the extent that the amount of such loans and advances shall be contributed to the Borrower in cash as common equity.
(l)    extensions of trade credit in the ordinary course of business and consistent with past practices;
(m)    prepaid expenses and lease, utility, workers, compensation, performance and other similar deposits made in the ordinary course of business and consistent with past practices; 
(n)    investments arising out of the receipt by the Borrower or any Subsidiary of noncash consideration for the sale of assets permitted under Section 6.03;

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(o)    investments in existence on the Effective Date, and to the extent having an aggregate principal value of greater than $1,000,000, listed on Schedule 6.04; and
(p)    any other investment, loan or advance (other than acquisitions) so long as the aggregate amount of all such investments, loans and advances does not exceed $25,000,000 during the term of this Agreement.
SECTION 6.05.    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 to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its Subsidiaries), 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 6.06.    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 and (c) any transaction permitted (or required) under this Agreement or any of the Loan Documents.  For purposes of this Section 6.06, any transaction with any Affiliate shall be deemed to have satisfied the standard set forth in clause (a) of the immediately preceding sentence if such transaction is approved by a majority of the Disinterested Directors of the Board of Directors of the Borrower.
SECTION 6.07.    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 option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (d) any Person may make noncash repurchases of Equity Interests deemed to occur upon exercise of stock options if such Equity Interests represent a portion of the exercise price of such options; and (e) the Borrower and its Subsidiaries may make any other Restricted Payment so long as no Event of Default has occurred and is continuing prior to making such Restricted Payment or would arise after giving effect (including giving effect on a pro forma basis) thereto and the aggregate amount of all such Restricted Payments pursuant to this clause (e) during any fiscal year of the Borrower does not exceed $10,000,000; provided that, the Dollar limitation in this clause (e) shall not be applicable, and such Restricted Payment shall not count against such Dollar limitation, if at the time of the making of such Restricted Payment and immediately after giving effect (on a pro forma basis) thereto, the Total Leverage Ratio is less than or equal to 2.50 to 1.00.
SECTION 6.08.    Restrictive Agreements.  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 that is not a Foreign 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 

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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, (ii) 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, (iii) 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, (iv) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment thereof and (v) the foregoing shall not apply to customary restrictions on transfer of any asset in any agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereunder to the extent such restrictions only restrict the transfer of the property subject to such agreement.
SECTION 6.09.    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, except for (i) Refinancings with any Indebtedness permitted to be incurred under Section 6.01, (ii) payments of regularly scheduled interest and fees due thereunder, other non-principal payments thereunder, any mandatory prepayments of principal, interest and fees thereunder, scheduled payments thereon necessary to avoid the Subordinated Indebtedness from constituting “applicable high yield discount obligations” within the meaning of Section 163(i)(1) of the Code and to the extent this Agreement is then in effect, principal on the scheduled maturity date of any Subordinated Indebtedness (or within ninety (90) days thereof), (iii) the conversion or exchange of any Subordinated Indebtedness to Equity Interests of the Borrower or any Subsidiary, and (iv) other payments and distributions in an aggregate amount not to exceed $5,000,000.  Furthermore, the Borrower will not, and will not permit any Subsidiary to, amend or modify, or permit the amendment or modification of, any provision of Subordinated Indebtedness that constitutes Material Indebtedness or any agreement, document or instrument evidencing or relating thereto, other than amendments or modifications that (A) are not materially adverse to Lenders taken as a whole (as determined in good faith by the Borrower) and that do not affect the subordination or payment provisions thereof (if any) in a manner adverse to the Lenders taken as a whole (as determined in good faith by the Borrower) or (B) otherwise comply with the definition of “Permitted Refinancing Indebtedness”.
SECTION 6.10.    Sale and Leaseback Transactions.  The Borrower will not, nor will it permit any Subsidiary to, enter into any Sale and Leaseback Transaction, other than Sale and Leaseback Transactions in respect of which the net cash proceeds received in connection therewith does not exceed $10,000,000  in the aggregate during any fiscal year of the Borrower, determined on a consolidated basis for the Borrower and its Subsidiaries.
SECTION 6.11.    Intentionally Omitted.  
SECTION 6.12.    Financial Covenants.
(a)    Maximum Total Leverage Ratio.  The Borrower will not permit the ratio (the “Total Leverage Ratio”), determined as of the end of each of its fiscal quarters ending on and after October, 31, 2015, 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.

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(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 October 31, 2015, of (i) Consolidated EBITDA to (ii) Consolidated Cash 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 3.00 to 1.00.
ARTICLE VII     
Events of Default
If any of the following events (“Events of Default”) shall occur:
(a)    the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;
(b)    the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) 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 thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made;
(d)    the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02, 5.03 (with respect to the Borrower’s existence), 5.08, 5.09 or 5.10, in Article VI or in Article X;
(e)    the Borrower or any Subsidiary Guarantor, 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 Article) or any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days after notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender);
(f)    the 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;
(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;

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(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 Article, (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 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 $10,000,000 (other than any such judgment covered by an unaffiliated insurer, to the extent a claim therefor has been made in writing and liability therefor has not been denied by the insurer, so long as, in the reasonable opinion of the Borrower, such insurer is financially sound) shall be rendered against the Borrower, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of sixty (60) 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)    [Intentionally Omitted];
(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);
(p)    any Collateral Document shall for any reason fail to create a valid and perfected first priority security interest in any portion of the Collateral purported to be covered thereby, except as permitted by the terms of any Loan Document; or
(q)    so long as the Borrower relies on its designation as a nonbank trustee, the Borrower (i) shall fail to timely comply with the with the requirement to annually submit a status verification form to 

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the IRS's Employee Plans Compliance Unit in accordance with applicable law and IRS guidelines or (ii) shall receive a notice of investigation or revocation from the IRS regarding the Borrower's approval as a nonbank trustee;
then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:  (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other Secured 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 in case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other Secured Obligations accrued hereunder and under the other Loan Documents, shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.  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, including all remedies provided under the UCC.
ARTICLE VIII     
The Administrative Agent
Each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties, and the Issuing Bank hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf, including execution of the other Loan Documents, and to exercise such powers as are delegated to the Administrative Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.  In addition, to the extent required under the laws of any jurisdiction other than the United States of America, each of the Lenders, on behalf of itself and any of its Affiliates that are Secured Parties, and the Issuing Bank hereby grants to the Administrative Agent any required powers of attorney to execute any Collateral Document governed by the laws of such jurisdiction on such Lender’s or Issuing Bank’s behalf.  The provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders (including the Swingline Lender and the Issuing Bank), and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent” as used herein or in any other Loan Documents (or any similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.
The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder.

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The Administrative Agent shall not have any duties or obligations except those expressly set forth in the Loan Documents.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct as determined by a final nonappealable judgment of a court of competent jurisdiction.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or in connection with any Loan Document, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, (v) the creation, perfection or priority of Liens on the Collateral or the existence of the Collateral or (vi) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.
The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties.  The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.
Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower.  Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor.  If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders 

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and the Issuing Bank, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.
Each Lender acknowledges and agrees that the extensions of credit made hereunder are commercial loans and letters of credit and not investments in a business enterprise or securities.  Each Lender further represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and  has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder.  Each Lender shall, independently and without reliance upon the Administrative Agent or any other Lender 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 related agreement or any document furnished hereunder or thereunder and in deciding whether or to the extent to which it will continue as a Lender or assign or otherwise transfer its rights, interests and obligations hereunder.
The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Administrative Agent) authorized to act for, any other Lender.  The Administrative Agent shall have the exclusive right on behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after the date such principal or interest has become due and payable pursuant to the terms of this Agreement.
In its capacity, the Administrative Agent is a “representative” of the Secured Parties within the meaning of the term “secured party” as defined in the New York Uniform Commercial Code.  Each Lender authorizes the Administrative Agent to enter into each of the Collateral Documents to which it is a party and to take all action contemplated by such documents.  Each Lender agrees that no Secured Party (other than the Administrative Agent) shall have the right individually to seek to realize upon the security granted by any Collateral Document, it being understood and agreed that such rights and remedies may be exercised solely by the Administrative Agent for the benefit of the Secured Parties upon the terms of the Collateral Documents.  In the event that any Collateral is hereafter pledged by any Person as collateral security for the Secured Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the Secured Parties any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of the Secured Parties.  The Lenders hereby authorize the Administrative Agent, at its option and in its discretion, to release any Lien granted to or held by the Administrative Agent upon any Collateral (i) as described in Section 9.02(d); (ii) as permitted by, but only in accordance with, the terms of the applicable Loan Document; or (iii) if approved, authorized or ratified in writing by the Required Lenders, unless such release is required to be approved by all of the Lenders hereunder.  Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the Administrative Agent’s authority to release particular types or items of Collateral pursuant hereto.  Upon any sale or transfer of assets constituting Collateral which 

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is permitted pursuant to the terms of any Loan Document, or consented to in writing by the Required Lenders or all of the Lenders, as applicable, and upon at least five (5) Business Days’ prior written request by the Borrower to the Administrative Agent, the Administrative Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Liens granted to the Administrative Agent for the benefit of the Secured Parties herein or pursuant hereto upon the Collateral that was sold or transferred; provided, however, that (i) the Administrative Agent shall not be required to execute any such document on terms which, in the Administrative Agent’s opinion, would expose the Administrative Agent to liability or create any obligation or entail any consequence other than the release of such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Secured Obligations or any Liens upon (or obligations of the Borrower or any Subsidiary in respect of) all interests retained by the Borrower or any Subsidiary, including (without limitation) the proceeds of the sale, all of which shall continue to constitute part of the Collateral.  Any execution and delivery by the Administrative Agent of documents in connection with any such release shall be without recourse to or warranty by the Administrative Agent.
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 LC Disbursement 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:
(a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC Exposure and all other Secured 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, the Issuing Bank and the Administrative Agent (including any claim under Sections 2.12, 2.13, 2.15, 2.16, 2.17 and 9.03) allowed in such judicial proceeding; and
(b) 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, the Issuing Bank and each other Secured Party 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, the Issuing Bank or the other Secured Parties, 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).
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 14 West Scenic Pointe Drive, Suite 100, Draper, Utah 84020, Attention of Darcy Mott, Executive Vice President & Chief Financial Officer (Telecopy 

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No. (801) 772-2507; Telephone No. (801) 727-1016) and Cordell Eggett, Vice President & Corporate Controller (Telecopy No. (801) 772-2507; Telephone No. (801) 727-1101), with a copy (in the case of a notice of an actual or potential Default, Event of Default, non-compliance with this Agreement or any other similar matter) to (A) Frode Jensen, Executive Vice President, General Counsel & Secretary (Telecopy No. (801) 772-2507; Telephone No. (801) 727-6517) and (B) Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019, Attention: David Tarr (Telecopy No. (212) 728-9241; Telephone No. (212) 728-8241), it being understood and agreed that a copy provided pursuant to this clause (i)(B) shall not constitute notice;
(ii)    if to the Administrative Agent, to JPMorgan Chase Bank, N.A., 10 South Dearborn Street, Chicago, Illinois 60603, Attention of Darren Cunningham (Telecopy No. (888) 303-9732), with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, 43rd Floor, New York, New York 10017, Attention of Justin B. Kelley (Telecopy No. (917) 464-6072);
(iii)    if to the Issuing Bank, to it at JPMorgan Chase Bank, N.A., 10 South Dearborn Street, Chicago, Illinois 60603, Attention of Darren Cunningham (Telecopy No. (888) 303-9732);
(iv)    if to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., 10 South Dearborn Street, Chicago, Illinois 60603, Attention of Darren Cunningham (Telecopy No. (888) 303-9732); and
(v)    if to any other Lender, 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 Electronic Systems, 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 and the Issuing Bank hereunder may be delivered or furnished by using Electronic Systems pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the applicable Lender.  The Administrative Agent 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.

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(d)    Electronic Systems.
(i)    The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak, ClearPar or a substantially similar Electronic System.
(ii)    Any Electronic System used by the Administrative Agent is provided “as is” and “as available.”  The Agent Parties (as defined below) do not warrant the adequacy of such Electronic Systems and expressly disclaim liability for errors or omissions in 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 any Agent Party in connection with the Communications or any Electronic System.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Loan Party, any Lender, the Issuing Bank 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 an Electronic System, except with respect to actual or direct damages to the extent determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the willful misconduct or gross negligence of any Agent Party.  “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 or the Issuing Bank by means of electronic communications pursuant to this Section, including through an Electronic System.
SECTION 9.02.    Waivers; Amendments.  (d) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Bank 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 or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.
(b)    Except as provided in Section 2.20 with respect to an Incremental Term Loan Amendment, 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 LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender directly affected thereby (except that any amendment or modification of the financial covenants in this Agreement (or defined terms used in the financial covenants in this Agreement) shall not constitute a reduction in the rate of interest 

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or fees for purposes of this clause (ii)), (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, 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 2.18(b) or (d) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender (it being understood that, solely with the consent of the parties prescribed by Section 2.20 to be parties to an Incremental Term Loan Amendment, Incremental Term Loans may be included in the determination of Required Lenders on substantially the same basis as the Commitments and the Revolving Loans are included on the Effective Date), (vi) (x) release the Borrower from its obligations under Article X or (y) 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, or (vii) except as provided in clause (d) of this Section or in any Collateral Document, release all or substantially all of the Collateral, 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, the Issuing Bank or the Swingline Lender hereunder without the prior written consent of the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be (it being understood that any change to Section 2.21 shall require the consent of the Administrative Agent, the Issuing Bank and the Swingline Lender).  Notwithstanding the foregoing, no consent with respect to any amendment, waiver or other modification of this Agreement shall be required of any Defaulting Lender, except with respect to any amendment, waiver or other modification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only in the event such Defaulting Lender shall be directly affected by such amendment, waiver or other modification.
(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 (in addition to the Incremental Term Loans pursuant to an Incremental Term Loan Amendment) 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 Revolving Loans, Incremental Term 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)    The Lenders hereby irrevocably authorize the Administrative Agent, at its option and in its sole discretion, to release any Liens granted to the Administrative Agent by the Loan Parties on any Collateral (i) upon the termination of all the Commitments, payment and satisfaction in full in cash of all Secured Obligations (other than Unliquidated Obligations), and the cash collateralization of all Unliquidated Obligations in a manner satisfactory to the Administrative Agent, (ii) constituting property being sold or disposed of to any Person (other than to a Loan Party), if the Borrower certifies to the Administrative Agent that the sale or disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property leased to the Borrower or any Subsidiary under a lease which has expired or been terminated in a transaction permitted under this Agreement, or (iv) as required to effect any sale or other disposition of such Collateral in connection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII.  Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral.  In addition, each of the Lenders, on behalf of itself 

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and any of its Affiliates that are Secured Parties, irrevocably authorizes the Administrative Agent (i) to subordinate any Lien on any assets granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 6.02(e) or (ii) in the event that the Borrower shall have advised the Administrative Agent that, notwithstanding the use by the Borrower of commercially reasonable efforts to obtain the consent of such holder (but without the requirement to pay any sums to obtain such consent) to permit the Administrative Agent to retain its liens (on a subordinated basis as contemplated by clause (i) above), the holder of such other Indebtedness requires, as a condition to the extension of such credit, that the Liens on such assets granted to or held by the Administrative Agent under any Loan Document be released, to release the Administrative Agent’s Liens on such assets.
(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 not 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 which is reasonably satisfactory to the Borrower and 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.
(f)    Notwithstanding anything to the contrary herein the Administrative Agent may, with the consent of the Borrower only, amend, modify or supplement this Agreement or any of the other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.
SECTION 9.03.    Expenses; Indemnity; Damage Waiver.  (f)  The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented fees, disbursements and other charges of one primary counsel and of any special regulatory counsel and one local counsel in each applicable jurisdiction 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), (ii) all reasonable and documented out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender (including the reasonable and documented fees, disbursements and other charges of one primary counsel and of any special regulatory counsel and one local counsel in each applicable jurisdiction for the Administrative Agent and the Issuing Bank and one additional counsel for all of the Lenders (other than the Administrative Agent and the Issuing Bank) (and in light of actual or potential conflicts of interest or the availability of different claims or defenses (as reasonably determined by the applicable Lender), one additional firm of counsel to each group of similarly affected Lenders)), in connection with the enforcement or protection of its rights in connection with this 

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Agreement and any other Loan Document, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during  any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
(b)    The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, penalties, liabilities and related expenses (including the fees, disbursements and other charges of (x) one primary counsel and of any special regulatory counsel and one local counsel in each applicable jurisdiction for the Administrative Agent and its Related Parties and (y) one primary counsel and one local counsel in each applicable jurisdiction for all of the other Indemnitees (and in light of actual or potential conflicts of interest or the availability of different claims or defenses (as reasonably determined by the applicable Indemnitee), one additional firm of counsel to each group of similarly affected Indemnitees)) 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 Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any 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 resulted from the willful misconduct, bad faith or gross negligence of such Indemnitee.  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)    To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (it being understood that the Borrower’s failure to pay any such amount shall not relieve the Borrower of any default in the payment thereof); provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.
(d)    To the extent permitted by applicable law, 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), other than actual or direct damages that are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.  To the extent permitted by applicable law, no Indemnitee shall assert against the Borrower and the Borrower shall not assert against any Indemnitee, and each Indemnitee and the Borrower 

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hereby waives, any claim on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (including, without limitation, any loss of profits, business or anticipated savings) 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 Letter of Credit or the use of the proceeds thereof; provided that, nothing contained in this sentence shall limit the Borrower’s indemnity obligations to the extent set forth in Section 9.03(b).
(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 (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit),  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, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    (c) 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:
(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 ten (10) 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;
(B)    the Administrative Agent;
(C)    the Issuing Bank; and
(D)    the Swingline Lender.
(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 

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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, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;
(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 a 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.
“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.

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(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 and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Bank 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, the Issuing Bank 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 a 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 2.05(c), 2.06(d) or (e), 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, the Administrative Agent, the Issuing Bank or the Swingline Lender, 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, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce 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.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a 

80

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, Letters of Credit 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, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the 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 and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.15, 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 termination of the Letters of Credit and 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-

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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.
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 its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final and in whatever currency denominated) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any Subsidiary Guarantor against any of and all of the Secured Obligations held by such Lender, irrespective of whether or not such Lender shall have made any demand under the Loan Documents and although such obligations may be unmatured.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.
SECTION 9.09.    Governing Law; Jurisdiction; Consent to Service of Process.  (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York.
(b)    Each party hereto 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, the Issuing Bank 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.
(c)    Each party hereto 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 (b) of this Section.  Each of the parties hereto hereby irrevocably waives, 

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to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d)    Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 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, the Issuing Bank 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, the Issuing Bank 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, the Issuing Bank 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 serve the lending industry; provided that, in the case of information received 

83

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.    Appointment for Perfection.  Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative Agent and the Secured Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession or control.  Should any Lender (other than the Administrative Agent) obtain possession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s instructions.
SECTION 9.15.    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 

84

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 may (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.
(c)    At such time as the principal and interest on the Loans, all LC Disbursements, the fees, expenses and other amounts payable under the Loan Documents and the other Secured Obligations (other than Banking Services Obligations, Swap Obligations, and other Obligations expressly stated to survive such payment and termination) shall have been paid in full in cash, the Commitments shall have been terminated and no Letters of Credit shall be outstanding, 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 9.16.    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 Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender.
SECTION 9.17.    No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees that: (i) (A) the arranging and other services regarding this Agreement provided by the Lenders are arm’s-length commercial transactions between the Borrower and its Affiliates, on the one hand, and the Lenders and their Affiliates, on the other hand, (B) the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Lenders and their Affiliates is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) no Lender or any of its Affiliates has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby except, in the case of a Lender, those obligations expressly set forth herein and in the other Loan Documents; and (iii) each of the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and no Lender or any of its Affiliates has any obligation to disclose any of such interests to the Borrower or its Affiliates.  To the fullest extent permitted by law, the Borrower hereby waives and releases any claims that it may have against each of the Lenders and their Affiliates with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

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ARTICLE X     
Borrower Guarantee
In order to induce the Lenders to extend credit to the Borrower hereunder and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Borrower hereby absolutely and irrevocably and unconditionally guarantees, as a primary obligor and not merely as a surety, the payment when and as due of the Specified Ancillary Obligations of the Subsidiaries.  The Borrower further agrees that the due and punctual payment of such Specified Ancillary Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee hereunder notwithstanding any such extension or renewal of any such Specified Ancillary Obligation.
The Borrower waives presentment to, demand of payment from and protest to any Subsidiary of any of the Specified Ancillary Obligations, and also waives notice of acceptance of its obligations and notice of protest for nonpayment.  The obligations of the Borrower hereunder shall not be affected by (a) the failure of any applicable Lender (or any of its Affiliates) to assert any claim or demand or to enforce any right or remedy against any Subsidiary under the provisions of any Banking Services Agreement, any Swap Agreement or otherwise; (b) any extension or renewal of any of the Specified Ancillary Obligations; (c) any rescission, waiver, amendment or modification of, or release from, any of the terms or provisions of this Agreement, any other Loan Document, any Banking Services Agreement, any Swap Agreement or other agreement; (d) any default, failure or delay, willful or otherwise, in the performance of any of the Specified Ancillary Obligations; (e) the failure of any applicable Lender (or any of its Affiliates) to take any steps to perfect and maintain any security interest in, or to preserve any rights to, any security or collateral for the Specified Ancillary Obligations, if any; (f) any change in the corporate, partnership or other existence, structure or ownership of any Subsidiary or any other guarantor of any of the Specified Ancillary Obligations; (g) the enforceability or validity of the Specified Ancillary Obligations or any part thereof or the genuineness, enforceability or validity of any agreement relating thereto or with respect to any collateral securing the Specified Ancillary Obligations or any part thereof, or any other invalidity or unenforceability relating to or against any Subsidiary or any other guarantor of any of the Specified Ancillary Obligations, for any reason related to this Agreement, any other Loan Document, any Banking Services Agreement, any Swap Agreement, or any provision of applicable law, decree, order or regulation of any jurisdiction purporting to prohibit the payment by such Subsidiary or any other guarantor of the Specified Ancillary Obligations, of any of the Specified Ancillary Obligations or otherwise affecting any term of any of the Specified Ancillary Obligations; or (h) any other act, omission or delay to do any other act which may or might in any manner or to any extent vary the risk of the Borrower or otherwise operate as a discharge of a guarantor as a matter of law or equity or which would impair or eliminate any right of the Borrower to subrogation.
The Borrower further agrees that its agreement hereunder constitutes a guarantee of payment when due (whether or not any bankruptcy or similar proceeding shall have stayed the accrual or collection of any of the Specified Ancillary Obligations or operated as a discharge thereof) and not merely of collection, and waives any right to require that any resort be had by any applicable Lender (or any of its Affiliates) to any balance of any deposit account or credit on the books of the Administrative Agent, the Issuing Bank or any Lender in favor of any Subsidiary or any other Person.
The obligations of the Borrower hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or unenforceability of any of the Specified Ancillary Obligations, any impossibility in the performance of any of the Specified Ancillary Obligations or otherwise.

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The Borrower further agrees that its obligations hereunder shall constitute a continuing and irrevocable guarantee of all Specified Ancillary Obligations now or hereafter existing and shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Specified Ancillary Obligation (including a payment effected through exercise of a right of setoff) is rescinded, or is or must otherwise be restored or returned by any applicable Lender (or any of its Affiliates) upon the insolvency, bankruptcy or reorganization of any Subsidiary or otherwise (including pursuant to any settlement entered into by a holder of Specified Ancillary Obligations in its discretion).
In furtherance of the foregoing and not in limitation of any other right which any applicable Lender (or any of its Affiliates) may have at law or in equity against the Borrower by virtue hereof, upon the failure of any Subsidiary to pay any Specified Ancillary Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, the Borrower hereby promises to and will, upon receipt of written demand by any applicable Lender (or any of its Affiliates), forthwith pay, or cause to be paid, to such applicable Lender (or any of its Affiliates) in cash an amount equal to the unpaid principal amount of such Specified Ancillary Obligations then due, together with accrued and unpaid interest thereon.  The Borrower further agrees that if payment in respect of any Specified Ancillary Obligation shall be due in a currency other than Dollars and/or at a place of payment other than New York, Chicago or any other Eurocurrency Payment Office and if, by reason of any Change in Law, disruption of currency or foreign exchange markets, war or civil disturbance or other event, payment of such Specified Ancillary Obligation in such currency or at such place of payment shall be impossible or, in the reasonable judgment of any applicable Lender (or any of its Affiliates), disadvantageous to such applicable Lender (or any of its Affiliates) in any material respect, then, at the election of such applicable Lender, the Borrower shall make payment of such Specified Ancillary Obligation in Dollars (based upon the applicable Equivalent Amount in effect on the date of payment) and/or in New York, Chicago or such other Eurocurrency Payment Office as is designated by such applicable Lender (or its Affiliate) and, as a separate and independent obligation, shall indemnify such applicable Lender (and any of its Affiliates) against any losses or reasonable out-of-pocket expenses that it shall sustain as a result of such alternative payment.
Upon payment by the Borrower of any sums as provided above, all rights of the Borrower against any Subsidiary arising as a result thereof by way of right of subrogation or otherwise shall in all respects be subordinated and junior in right of payment to the prior indefeasible payment in full in cash of all the Specified Ancillary Obligations owed by such Subsidiary to the applicable Lender (or its applicable Affiliates).
The Borrower hereby absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Subsidiary Guarantor to honor all of its obligations under the Subsidiary Guaranty in respect of Specified Swap Obligations (provided, however, that the Borrower shall only be liable under this paragraph for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this paragraph or otherwise under this Article X voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The Borrower intends that this paragraph constitute, and this paragraph shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Subsidiary Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
Nothing shall discharge or satisfy the liability of the Borrower hereunder except the full performance and payment in cash of the Secured Obligations.

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[Signature Pages Follow]

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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.
HEALTHEQUITY, INC.,    
 
as the Borrower
		
	By 
	    /s/ Jon Kessler     
Name: Jon Kessler 
Title: President, Chief Executive Officer and Director

JPMORGAN CHASE BANK, N.A., individually as a Lender, as the Swingline Lender, as the Issuing Bank and as Administrative Agent
		
	By 
	    /s/ Justin Kelley     
Name: Justin Kelley 
Title: Vice President

WELLS FARGO BANK, N.A., as a Lender
		
	By 
	    /s/ Matthew Olson     
Name: Matthew Olson 
Title: Vice President

SUNTRUST BANK, as a Lender
		
	By 
	    /s/ Hays Wood     
Name: Hays Wood 
Title: Vice President

Signature Page to Credit Agreement 
HealthEquity, Inc.

SCHEDULE 2.01
COMMITMENTS
	
				
	LENDER
	COMMITMENT

	JPMORGAN CHASE BANK, N.A.
	

	$40,000,000
	

	WELLS FARGO BANK, N.A.
	

	$35,000,000
	

	SUNTRUST BANK
	

	$25,000,000
	

	AGGREGATE COMMITMENT
	

	$100,000,000
	

	 
	 

Schedule 3.01
Subsidiaries
	
				
	Name of Subsidiary
	Owner
	Percentage of Equity Interests Owned
	Material Domestic Subsidiary?

	HEQ Insurance Services, Inc.
	HealthEquity, Inc.
	100%
	No.

	HealthEquity Advisors, LLC
	HealthEquity, Inc.
	100%
	No.

Schedule 6.01
Existing Indebtedness

None.

Schedule 6.02
Existing Liens
None.

Schedule 6.04
Existing Investments
Investments in existence on the Effective Date in the following mutual funds (together with any subsequent increases thereof solely as a result of market fluctuations):
		
	•
	Wells Fargo Advantage Ultra Short-Term Municipal Income Fund

		
	•
	Wells Fargo Advantage Conservative Income Fund

		
	•
	Wells Fargo Advantage Adjustable Rate Government Fund

The fair market value of all such investments as of the Effective Date is approximately $40,000,000.

EXHIBIT A
ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any letters of credit, guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor.
		
	1.
	Assignor:        

		
	2.
	Assignee:        

 
[and is an Affiliate/Approved Fund of [identify Lender]]
		
	3.
	Borrower(s):    HealthEquity, Inc.    

		
	4.
	Administrative Agent:    JPMorgan Chase Bank, N.A., as the administrative agent under the Credit Agreement

		
	5.
	Credit Agreement:    The Credit Agreement dated as of September 30, 2015 among HealthEquity, Inc., the Lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents parties thereto

		
	6.
	Assigned Interest:

	
			
	Aggregate Amount of 
Commitment/Loans for 
all Lenders
	Amount of Commitment/Loans 
Assigned
	Percentage 
Assigned of 
Commitment/Loans

	$
	$
	%

	$
	$
	%

	$
	$
	%

Effective Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR
[NAME OF ASSIGNOR]
By:            
 
Title:
ASSIGNEE
[NAME OF ASSIGNEE]
By:            
 
Title:
Consented to and Accepted:
JPMORGAN CHASE BANK, N.A., as 
Administrative Agent and Issuing Bank and Swingline Lender
By:                
 
Title:

2

[Consented to:]
HEALTHEQUITY, INC.
By:                
 
Title:

3

ANNEX I
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1.  Representations and Warranties.
1.1    Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.
1.2    Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.
2.    Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date.
3.    General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the Assignor by Electronic Signature or delivery of an executed counterpart of a signature page of this Assignment and Assumption by any Electronic System shall be effective as delivery of a manually executed counterpart of 

this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

2

EXHIBIT B
OPINION OF COUNSEL FOR THE LOAN PARTIES
[Attached]

EXHIBIT C
FORM OF INCREASING LENDER SUPPLEMENT
INCREASING LENDER SUPPLEMENT, dated __________, 20___ (this “Supplement”), by and among each of the signatories hereto, to the Credit Agreement, dated as of September 30, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).
W I T N E S S E T H
WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the Borrower has the right, subject to the terms and conditions thereof, to effectuate from time to time an increase in the Aggregate Commitment and/or one or more tranches of Incremental Term Loans under the Credit Agreement by requesting one or more Lenders to increase the amount of its Commitment and/or to participate in such a tranche;
WHEREAS, the Borrower has given notice to the Administrative Agent of its intention to [increase the Aggregate Commitment] [and] [enter into a tranche of Incremental Term Loans] pursuant to such Section 2.20; and
WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the undersigned Increasing Lender now desires to [increase the amount of its Commitment] [and] [participate in a tranche of Incremental Term Loans] under the Credit Agreement by executing and delivering to the Borrower and the Administrative Agent this Supplement;
NOW, THEREFORE, each of the parties hereto hereby agrees as follows:
1.    The undersigned Increasing Lender agrees, subject to the terms and conditions of the Credit Agreement, that on the date of this Supplement it shall [have its Commitment increased by $[__________], thereby making the aggregate amount of its total Commitments equal to $[__________]] [and] [participate in a tranche of Incremental Term Loans with a commitment amount equal to $[__________] with respect thereto].
2.    The Borrower hereby represents and warrants that no Default or Event of Default has occurred and is continuing on and as of the date hereof.
3.    Terms defined in the Credit Agreement shall have their defined meanings when used herein.
4.    This Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.
5.    This Supplement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same document.

IN WITNESS WHEREOF, each of the undersigned has caused this Supplement to be executed and delivered by a duly authorized officer on the date first above written.
[INSERT NAME OF INCREASING LENDER]
By:  ____________________________________ 
Name: 
Title:
Accepted and agreed to as of the date first written above:
HEALTHEQUITY, INC.
By:  ______________________________________ 
Name: 
Title:
Acknowledged as of the date first written above:
JPMORGAN CHASE BANK, N.A. 
as Administrative Agent
By:  ______________________________________ 
Name: 
Title:

2

EXHIBIT D
FORM OF AUGMENTING LENDER SUPPLEMENT
AUGMENTING LENDER SUPPLEMENT, dated __________, 20___ (this “Supplement”), by and among each of the signatories hereto, to the Credit Agreement, dated as of September 30, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).
W I T N E S S E T H
WHEREAS, the Credit Agreement provides in Section 2.20 thereof that any bank, financial institution or other entity may [extend Commitments] [and] [participate in tranches of Incremental Term Loans] under the Credit Agreement subject to the approval of the Borrower and the Administrative Agent, by executing and delivering to the Borrower and the Administrative Agent a supplement to the Credit Agreement in substantially the form of this Supplement; and
WHEREAS, the undersigned Augmenting Lender was not an original party to the Credit Agreement but now desires to become a party thereto;
NOW, THEREFORE, each of the parties hereto hereby agrees as follows:
1.    The undersigned Augmenting Lender agrees to be bound by the provisions of the Credit Agreement and agrees that it shall, on the date of this Supplement, become a Lender for all purposes of the Credit Agreement to the same extent as if originally a party thereto, with a [Commitment with respect to Revolving Loans of $[__________]] [and] [a commitment with respect to Incremental Term Loans of $[__________]].
2.    The undersigned Augmenting Lender (a) represents and warrants that it is legally authorized to enter into this Supplement; (b) confirms that it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and has reviewed such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Supplement; (c) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any other instrument or document furnished pursuant hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms thereof, together with such powers as are incidental thereto; and (e) agrees that it will be bound by the provisions of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.
3.    The undersigned’s address for notices for the purposes of the Credit Agreement is as follows:
[___________]

4.    The Borrower hereby represents and warrants that no Default or Event of Default has occurred and is continuing on and as of the date hereof.
5.    Terms defined in the Credit Agreement shall have their defined meanings when used herein.
6.    This Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.
7.    This Supplement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same document.
[remainder of this page intentionally left blank]

2

IN WITNESS WHEREOF, each of the undersigned has caused this Supplement to be executed and delivered by a duly authorized officer on the date first above written.
[INSERT NAME OF AUGMENTING LENDER]
By:  ____________________________________ 
Name: 
Title:
Accepted and agreed to as of the date first written above:
HEALTHEQUITY, INC.
By:  ______________________________________ 
Name: 
Title:
Acknowledged as of the date first written above:
JPMORGAN CHASE BANK, N.A. 
as Administrative Agent
By:  ______________________________________ 
Name: 
Title:

3

EXHIBIT E
LIST OF CLOSING DOCUMENTS
HEALTHEQUITY, INC.
CREDIT FACILITIES
September 30, 2015
LIST OF CLOSING DOCUMENTS
A.LOAN DOCUMENTS
		
	1.
	Credit Agreement (the “Credit Agreement”) by and among HealthEquity, Inc., a Delaware corporation (the “Borrower”), the institutions from time to time parties thereto as Lenders (the “Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent for itself and the other Lenders (the “Administrative Agent”), evidencing a revolving credit facility to the Borrower from the Lenders in an initial aggregate principal amount of $100,000,000.

SCHEDULES	
			
	Schedule 2.01
	--
	Commitments

	Schedule 3.01
	--
	Subsidiaries

	Schedule 3.03
	--
	Filings with Governmental Authorities

	Schedule 3.18
	--
	Security Interest Filings

	Schedule 6.01
	--
	Existing Indebtedness

	Schedule 6.02
	--
	Existing Liens

	Schedule 6.04
	--
	Existing Investments

	 
	 
	 

EXHIBITS	
			
	Exhibit A
	--
	Form of Assignment and Assumption

	Exhibit B
	--
	Form of Opinion of Loan Parties’ Counsel

	Exhibit C
	--
	Form of Increasing Lender Supplement

	Exhibit D
	--
	Form of Augmenting Lender Supplement

	Exhibit E
	--
	List of Closing Documents

	Exhibit F-1
	--
	Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships)

	Exhibit F-2
	--
	Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships)

	Exhibit F-3
	--
	Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships)

	Exhibit F-4
	--
	Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships)

	Exhibit G-1
	--
	Form of Borrowing Request

	Exhibit G-2
	--
	Form of Interest Election Request

	Exhibit H
	--
	Form of Note

	Exhibit I
	--
	Form of Subsidiary Guaranty

	 
	 
	 

		
	2.
	Notes executed by the Borrower in favor of each of the Lenders, if any, which has requested a note pursuant to Section 2.10(e) of the Credit Agreement.

		
	3.
	Pledge and Security Agreement executed by the Loan Parties in favor of the Administrative Agent, together with pledged instruments and allonges, stock certificates, stock powers executed in blank, pledge instructions and acknowledgments, as appropriate.

	
			
	Exhibit A
	--
	Legal and Prior Names; Principal Place of Business and Chief Executive Office; FEIN; State Organization Number and Jurisdiction of Incorporation; Properties Leased by the Grantors; Properties Owned by the Grantors; Public Warehouses or Other Locations

	Exhibit B
	--
	Aircraft/Engines, Ships, Railcars and Other Vehicles Governed by Federal Statute; Patents, Copyrights and Trademarks Protected under Federal Law

	Exhibit C
	--
	Legal Description, County and Street Address of Property on which Fixtures are located

	Exhibit D
	--
	List of Instruments, Pledged Securities and other Investment Property

	Exhibit E
	--
	UCC Financing Statement Filing Locations

	Exhibit F
	--
	Commercial Tort Claims

	Exhibit G
	--
	Grantors

	Exhibit H
	--
	Deposit Accounts; Securities Accounts

	Exhibit I
	--
	Amendment

		
	4.
	Confirmatory Grant of Security Interest in United States Trademarks made by certain of the Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties.

2

		
	Schedule A
	–    Registered Trademarks; Trademark and Service Mark Applications; Other Trademarks

		
	5.
	Confirmatory Grant of Security Interest in United States Copyrights made by certain of the Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties.

		
	Schedule A
	–    Registered Copyrights; Copyright Applications; Other Copyrights

		
	6.
	Certificates of Insurance listing the Administrative Agent as (x) lender loss payee for the property casualty insurance policies of the Borrower and the Subsidiary Guarantors, together with separate lender loss payable endorsements and (y) additional insured with respect to the liability insurance of the Borrower and the Subsidiary Guarantors, together with separate additional insured endorsements.

B.    UCC DOCUMENTS
		
	1.
	UCC, tax lien and name variation search reports naming each Loan Party from the appropriate offices in relevant jurisdictions.

		
	2.
	UCC financing statements naming each Loan Party as debtor and the Administrative Agent as secured party as filed with the appropriate offices in applicable jurisdictions.

C.    CORPORATE DOCUMENTS
		
	1.
	Certificate of the Secretary or an Assistant Secretary of each Loan Party certifying (i) that there have been no changes in the Certificate of Incorporation or other charter document of such Loan Party, as attached thereto and as certified as of a recent date by the Secretary of State (or analogous governmental entity) of the jurisdiction of its organization, since the date of the certification thereof by such governmental entity, (ii) the By-Laws or other applicable organizational document, as attached thereto, of such Loan Party as in effect on the date of such certification, (iii) resolutions of the Board of Directors or other governing body of such Loan Party authorizing the execution, delivery and performance of each Loan Document to which it is a party, and (iv) the names and true signatures of the incumbent officers of each Loan Party authorized to sign the Loan Documents to which it is a party, and (in the case of the Borrower) authorized to request a Borrowing or the issuance of a Letter of Credit  under the Credit Agreement.

		
	2.
	Good Standing Certificate (or analogous documentation if applicable) for each Loan Party from the Secretary of State (or analogous governmental entity) of the jurisdiction of its organization, to the extent generally available in such jurisdiction.

D.    OPINIONS
		
	1.
	Opinion of Willkie Farr & Gallagher LLP, counsel for the Loan Parties.

E.    CLOSING CERTIFICATES AND MISCELLANEOUS

3

		
	1.
	A Certificate signed by the President, a Vice President or a Financial Officer of the Borrower certifying the following:  (i) that all of the representations and warranties contained in Article III of the Credit Agreement are true and correct in all material respects (provided that any representation and warranty that is qualified by Material Adverse Effect or other materiality qualifier shall be true and correct in all respects) 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 qualified by Material Adverse Effect or other materiality qualifier, in all respects) as of such earlier date and (ii) that no Default or Event of Default has occurred and is then continuing.

4

EXHIBIT F-1
FORM OF

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

Reference is hereby made to the Credit Agreement dated as of September 30, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
	
	
	 

	 

	[NAME OF LENDER]

	 

	By:______________________________________

	Name:

	Title:

	 

	Date: __________, 20[__]

EXHIBIT F-2
FORM OF

U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Credit Agreement dated as of September 30, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
	
	
	 

	[NAME OF PARTICIPANT]

	 

	By:______________________________________

	Name:

	Title:

	Date: ________ __, 20[__]

EXHIBIT F-3
FORM OF

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

Reference is hereby made to the Credit Agreement dated as of September 30, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 
The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
	
	
	 

	[NAME OF PARTICIPANT]

	 

	By:______________________________________

	Name:

	Title:

	 

	 

	Date: ________ __, 20[__]

EXHIBIT F-4
FORM OF

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

Reference is hereby made to the Credit Agreement dated as of September 30, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  
Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
	
	
	 

	[NAME OF LENDER]

	 

	By:______________________________________

	Name:

	Title:

	 

	Date: ________ __, 20[__]

1

EXHIBIT G-1
FORM OF BORROWING REQUEST
JPMorgan Chase Bank, N.A., 
as Administrative Agent 
for the Lenders referred to below
[10 South Dearborn 
Chicago, Illinois 60603 
Attention: [__________] 
Facsimile: [__________]]
With a copy to:
[__________] 
[__________] 
Attention: [__________] 
Facsimile: [__________]
Re:  HealthEquity, Inc.
[Date]
Ladies and Gentlemen:
Reference is hereby made to the Credit Agreement dated as of September 30, 2015 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The Borrower hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that it requests a Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to such Borrowing requested hereby:
		
	1.
	Aggregate principal amount of Borrowing:  __________

		
	2.
	Date of Borrowing (which shall be a Business Day):  __________

		
	3.
	Type of Borrowing (ABR or Eurodollar):  __________

		
	4.
	Interest Period and the last day thereof (if a Eurodollar Borrowing):  __________

		
	5.
	Location and number of the Borrower’s account or any other account agreed upon by the Administrative Agent and the Borrower to which proceeds of Borrowing are to be disbursed:  __________

[Signature Page Follows]

1

The undersigned hereby represents and warrants that the conditions to lending specified in Section[s] [4.01 and] 4.02 of the Credit Agreement are satisfied as of the date hereof.
Very truly yours,
HEALTHEQUITY, INC.,    
 
as the Borrower
By:            
 
Name: 
 
Title:

1

EXHIBIT G-2
FORM OF INTEREST ELECTION REQUEST
JPMorgan Chase Bank, N.A., 
as Administrative Agent 
for the Lenders referred to below
[10 South Dearborn 
Chicago, Illinois 60603 
Attention: [_______] 
Facsimile: ([__]) [__]-[_____]]
Re:  HealthEquity, Inc.
[Date]
Ladies and Gentlemen:
Reference is hereby made to the Credit Agreement dated as of September 30, 2015 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among HealthEquity, Inc. (the “Borrower”), the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The Borrower hereby gives you notice pursuant to Section 2.08 of the Credit Agreement that it requests to [convert][continue] an existing Borrowing under the Credit Agreement, and in that connection the Borrower specifies the following information with respect to such [conversion][continuation] requested hereby:  
		
	1.
	List date, Type, principal amount and Interest Period (if applicable) of existing Borrowing:  __________

		
	2.
	Aggregate principal amount of resulting Borrowing:  __________

		
	3.
	Effective date of interest election (which shall be a Business Day):  __________

		
	4.
	Type of Borrowing (ABR or Eurodollar):  __________

		
	5.
	Interest Period and the last day thereof (if a Eurodollar Borrowing):  __________

[Signature Page Follows]

1

Very truly yours,
HEALTHEQUITY, INC.,    
 
as Borrower
By:            
 
Name: 
 
Title:

1

EXHIBIT H
[FORM OF]
NOTE
[__________], 2015
FOR VALUE RECEIVED, the undersigned, HEALTHEQUITY, INC., a Delaware corporation (the “Borrower”), HEREBY UNCONDITIONALLY PROMISES TO PAY to the order of [NAME OF LENDER] (the “Lender”) the aggregate unpaid principal amount of all Loans made by the Lender to the Borrower pursuant to the “Credit Agreement” (as defined below) on the Maturity Date or on such earlier date as may be required by the terms of the Credit Agreement.  Capitalized terms used herein and not otherwise defined herein are as defined in the Credit Agreement.
The Borrower promises to pay interest on the unpaid principal amount of each Loan made to it from the date of such Loan until such principal amount is paid in full at a rate or rates per annum determined in accordance with the terms of the Credit Agreement.  Interest hereunder is due and payable at such times and on such dates as set forth in the Credit Agreement.
At the time of each Loan, and upon each payment or prepayment of principal of each Loan, the Lender shall make a notation either on the schedule attached hereto and made a part hereof, or in such Lender’s own books and records, in each case specifying the amount of such Loan, the respective Interest Period thereof (in the case of Eurodollar Loans) or the amount of principal paid or prepaid with respect to such Loan, as applicable; provided that the failure of the Lender to make any such recordation or notation shall not affect the Obligations of the Borrower hereunder or under the Credit Agreement.
This Note is one of the notes referred to in, and is entitled to the benefits of, that certain Credit Agreement dated as of September 30, 2015 by and among the Borrower, the financial institutions from time to time parties thereto as Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).  The Credit Agreement, among other things, (i) provides for the making of Loans by the Lender to the Borrower from time to time in an aggregate amount not to exceed at any time outstanding such Lender’s Commitment, the indebtedness of the Borrower resulting from each such Loan to it being evidenced by this Note, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments of the principal hereof prior to the maturity hereof upon the terms and conditions therein specified.
This Note is secured by the Collateral Documents. Reference is hereby made to the Collateral Documents for a description of the collateral thereby mortgaged, warranted, bargained, sold, released, conveyed, assigned, transferred, pledged and hypothecated, the nature and extent of the security for this Note, the rights of the holder of this Note, the Administrative Agent in respect of such security and otherwise.
Demand, presentment, protest and notice of nonpayment and protest are hereby waived by the Borrower.  Whenever in this Note reference is made to the Administrative Agent, the Lender or the Borrower, such reference shall be deemed to include, as applicable, a reference to their respective successors and assigns.  The provisions of this Note shall be binding upon and shall inure to the benefit of said successors and assigns.  The Borrower’s successors and assigns shall include, without limitation, a receiver, trustee or debtor in possession of or for the Borrower.

1

This Note shall be construed in accordance with and governed by the law of the State of New York.
*****

2

HEALTHEQUITY, INC.
By:            
 
Name:
 
Title:

1

SCHEDULE OF LOANS AND PAYMENTS OR PREPAYMENTS
	
						
	Date
	Amount of Loan
	Interest Period/Rate
	Amount of Principal Paid or Prepaid
	Unpaid Principal Balance
	Notation Made By

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

EXHIBIT I
FORM OF

SUBSIDIARY GUARANTY
[Attached]Exhibit 10.1

 

EXECUTION VERSION

 

CONFIDENTIAL

 

STOCK PURCHASE AGREEMENT

 

BY AND AMONG

 

GYP HOLDINGS III CORP.,

as Buyer,

 

GYPSUM MANAGEMENT AND SUPPLY, INC.,

as Company,

 

and each of the Persons set forth on Schedule A hereto,

as Sellers

 

Dated as of February 11, 2014

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I
    	
DEFINITIONS;   CONSTRUCTION
    	
1
    
	
1.1
    	
Definitions
    	
1
    
	
1.2
    	
Construction
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    	
THE TRANSACTION
    	
15
    
	
2.1
    	
Sale and Purchase of   Shares
    	
15
    
	
2.2
    	
Purchase Price
    	
15
    
	
2.3
    	
Closing
    	
15
    
	
2.4
    	
Payment and Related   Transactions
    	
15
    
	
2.5
    	
Closing Date Purchase   Price Adjustment
    	
17
    
	
2.6
    	
Post-Closing Purchase   Price Adjustment
    	
17
    
	
2.7
    	
Withholding
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    	
REPRESENTATIONS AND   WARRANTIES REGARDING THE COMPANY
    	
19
    
	
3.1
    	
Organization and   Authority
    	
19
    
	
3.2
    	
Authorization;   Enforceability
    	
19
    
	
3.3
    	
Capitalization;   Subsidiaries
    	
20
    
	
3.4
    	
No Violation of Laws or   Agreements; Consents
    	
20
    
	
3.5
    	
Financial Statements
    	
21
    
	
3.6
    	
Absence of Undisclosed   Liabilities
    	
21
    
	
3.7
    	
No Changes
    	
22
    
	
3.8
    	
Taxes
    	
23
    
	
3.9
    	
Rights in Assets
    	
24
    
	
3.10
    	
No Pending Litigation
    	
25
    
	
3.11
    	
Compliance With Law;   Permits
    	
25
    
	
3.12
    	
Intellectual Property   Rights
    	
26
    
	
3.13
    	
Labor Matters
    	
27
    
	
3.14
    	
Employee Related Agreements   and Plans; ERISA
    	
29
    
	
3.15
    	
Environmental Matters
    	
30
    
	
3.16
    	
Bank Accounts
    	
32
    
	
3.17
    	
Material Contracts
    	
32
    
	
3.18
    	
Brokers
    	
33
    
	
3.19
    	
Insurance
    	
34
    
	
3.20
    	
Related Party   Transactions
    	
34
    
	
3.21
    	
Suppliers
    	
34
    
	
3.22
    	
Disclaimer of Company   Warranties
    	
34
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
REPRESENTATIONS AND   WARRANTIES OF EACH SELLER GROUP
    	
34
    
	
4.1
    	
Authorization;   Enforceability
    	
34
    
	
4.2
    	
Share Ownership
    	
35
    
	
4.3
    	
No Violation of Laws or   Agreements; Consents
    	
35
    
	
4.4
    	
No Pending Litigation   or Proceedings
    	
35
    

 

i

 

	
4.5
    	
Related Party   Transactions
    	
35
    
	
4.6
    	
Disclaimer of Seller   Warranties
    	
36
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    	
REPRESENTATIONS AND   WARRANTIES OF BUYER
    	
36
    
	
5.1
    	
Organization
    	
36
    
	
5.2
    	
Authorization; Enforceability
    	
36
    
	
5.3
    	
No Violation of Laws;   Consents
    	
36
    
	
5.4
    	
No Pending Litigation   or Proceedings
    	
36
    
	
5.5
    	
Brokers
    	
37
    
	
5.6
    	
Investment
    	
37
    
	
5.7
    	
Financial Ability
    	
37
    
	
5.8
    	
Independent Evaluation
    	
38
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
ACTIONS PRIOR TO   CLOSING DATE
    	
39
    
	
6.1
    	
Access to Information
    	
39
    
	
6.2
    	
Notice of Certain   Events
    	
39
    
	
6.3
    	
Consents of Third   Parties
    	
39
    
	
6.4
    	
Filings Under the HSR   Act and Other Antitrust Laws
    	
40
    
	
6.5
    	
Operations Prior to   Closing Date
    	
41
    
	
6.6
    	
Environmental Due   Diligence
    	
44
    
	
6.7
    	
Negotiations
    	
44
    
	
6.8
    	
Financing
    	
45
    
	
6.9
    	
Tax Matters
    	
47
    
	
6.10
    	
Employees and Employee   Benefit Plans
    	
52
    
	
6.11
    	
No Public Announcement;   Contact with Company Suppliers and Customers
    	
54
    
	
6.12
    	
Expenses
    	
54
    
	
6.13
    	
Books and Records
    	
54
    
	
6.14
    	
Termination of Share   Restrictions
    	
55
    
	
6.15
    	
Director & Officers   Protection
    	
55
    
	
6.16
    	
Confidentiality
    	
56
    
	
6.17
    	
Sellers’ Non-Compete   and Non-Solicit
    	
56
    
	
6.18
    	
Delivery of Interim   Financial Statements
    	
57
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
CONDITIONS TO CLOSING;   DELIVERABLES
    	
57
    
	
7.1
    	
Conditions Precedent to   Obligation of Buyer
    	
57
    
	
7.2
    	
Conditions Precedent to   Obligation of Sellers
    	
58
    
	
7.3
    	
Deliveries at the   Closing
    	
59
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
TERMINATION
    	
60
    
	
8.1
    	
Termination Rights
    	
60
    
	
8.2
    	
Termination Fee
    	
62
    
	
8.3
    	
Effect of Termination
    	
63
    
	
 
    	
 
    	
 
    
	
ARTICLE IX
    	
INDEMNIFICATION
    	
64
    
	
9.1
    	
Survival of Representations,   Warranties, Covenants and Agreements
    	
64
    
	
9.2
    	
Indemnification
    	
64
    

 

ii

 

	
9.3
    	
Procedures
    	
66
    
	
9.4
    	
Excluded Damages and   Remedy
    	
68
    
	
9.5
    	
Environmental   Remediation
    	
68
    
	
9.6
    	
Sole Remedy
    	
69
    
	
9.7
    	
Materiality
    	
69
    
	
 
    	
 
    	
 
    
	
ARTICLE X
    	
MISCELLANEOUS
    	
69
    
	
10.1
    	
Further Assurances
    	
69
    
	
10.2
    	
Notices
    	
69
    
	
10.3
    	
Assignment; Governing   Law
    	
71
    
	
10.4
    	
Amendment and Waiver
    	
73
    
	
10.5
    	
Entire Agreement; No   Third Party Beneficiaries
    	
73
    
	
10.6
    	
Severability
    	
74
    
	
10.7
    	
Counterparts;   Signatures
    	
74
    
	
10.8
    	
Arbitration
    	
74
    
	
10.9
    	
Transfer of Privilege;   Conflicts
    	
75
    
	
10.10
    	
Specific Performance
    	
76
    

 

EXHIBITS

 

Exhibit A – Form of Escrow Agreement

 

iii

 

SCHEDULES

 

	
Schedule A
    	
Sellers
    
	
Schedule 1.1A
    	
Accounting Protocol
    
	
Schedule 1.1P
    	
Permitted Encumbrances
    
	
Schedule 1.1T
    	
Transaction Tax Deductions
    
	
Schedule 3.1
    	
Organization and Authority
    
	
Schedule 3.3(a)
    	
Capitalization - Company
    
	
Schedule 3.3(b)
    	
Capitalization - Subsidiaries
    
	
Schedule 3.4(b)
    	
Consents
    
	
Schedule 3.5(a)
    	
Financial Statements
    
	
Schedule 3.5(b)
    	
Financial Statements - Exceptions
    
	
Schedule 3.7
    	
No Changes
    
	
Schedule 3.8(c)
    	
Taxes – Audits; Examinations
    
	
Schedule 3.8(d)
    	
Taxes – Agreements
    
	
Schedule 3.8(e)
    	
Taxes – Consolidated Returns
    
	
Schedule 3.8(h)
    	
Taxes – Additional Disclosures
    
	
Schedule 3.9(a)
    	
Owned Real Property
    
	
Schedule 3.9(b)
    	
Leases of Real Property
    
	
Schedule 3.9(c)
    	
Owned Personal Property
    
	
Schedule 3.9(d)
    	
Leased Personal Property
    
	
Schedule 3.9(f)
    	
Condemnation Proceedings
    
	
Schedule 3.11(b)
    	
Permits
    
	
Schedule   3.12(a)(i)
    	
Intellectual Property Assets – Marks
    
	
Schedule   3.12(a)(ii)
    	
Intellectual Property Assets – Patents
    
	
Schedule   3.12(a)(iii)
    	
Intellectual Property Assets – Copyrights and   Unpublished Works
    
	
Schedule   3.12(a)(iv)
    	
Intellectual Property Assets – Domain Names
    
	
Schedule   3.12(b)(i)
    	
Rights in Intellectual Property – General
    
	
Schedule   3.12(b)(iv)
    	
Rights in Intellectual Property – Licenses
    
	
Schedule 3.12(c)
    	
Company IT Asset Exposure
    
	
Schedule 3.13(a)
    	
Labor Matters – Employees
    
	
Schedule 3.13(c)
    	
Labor Matters – Collective Bargaining
    
	
Schedule 3.13(d)
    	
Labor Matters – Employment Disputes
    
	
Schedule 3.13(g)
    	
Labor Matters – Employee Contracts
    
	
Schedule 3.14(a)
    	
Employee Benefits Plans
    
	
Schedule 3.14(b)
    	
ERISA
    
	
Schedule 3.14(c)
    	
General Compliance
    
	
Schedule 3.14(f)
    	
Acceleration of Employee Benefits
    
	
Schedule 3.14(i)
    	
409A Compliance
    
	
Schedule 3.15(g)
    	
Environmental Matters – Asbestos Actions
    
	
Schedule 3.15(h)
    	
Environmental Matters – Asbestos Products
    
	
Schedule 3.15(i)
    	
Environmental Matters – Insurance for Asbestos   Claims
    

 

 

	
Schedule 3.15(j)
    	
Environmental Matters – Phase I and Phase II   Environmental Assessments
    
	
Schedule 3.16
    	
Bank Accounts
    
	
Schedule 3.17(a)
    	
Material Contracts – Listing
    
	
Schedule 3.17(b)
    	
Material Contracts – Status
    
	
Schedule 3.18
    	
Brokers (Company)
    
	
Schedule 3.19(a)
    	
Insurance Policies
    
	
Schedule 3.21
    	
Suppliers
    
	
Schedule 4.5
    	
Related Party Transactions
    
	
Schedule 5.5
    	
Brokers (Buyer)
    
	
Schedule 5.7
    	
Commitment Letters
    
	
Schedule 6.3(a)
    	
Consents of Third Parties – Contracts
    
	
Schedule 6.3(b)
    	
Consents of Third Parties – Other
    
	
Schedule 6.5(a)
    	
Operations Prior to Closing Date – Exceptions
    
	
Schedule 6.5(c)
    	
Operations Prior to Closing Date – Excess Properties
    
	
Schedule 6.5(d)
    	
Senior Management Bonus Recipients
    

 

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT (the “Stock Purchase Agreement”), dated as of February 11, 2014, is made by and among GYP HOLDINGS III CORP., a Delaware corporation (“Buyer”), GYPSUM MANAGEMENT AND SUPPLY, INC., a Georgia corporation (“Company”), and each of the Persons set forth on Schedule A attached hereto (each a “Seller” and collectively, the “Sellers”).

 

WHEREAS, Sellers collectively own all of the issued and outstanding shares of capital stock of the Company (the “Shares”);

 

WHEREAS, the Sellers desire to sell and convey the Shares (other than the Rollover Shares) to Buyer, and Buyer desires to purchase such Shares from the Sellers, upon the terms and conditions set forth in this Agreement;

 

WHEREAS, concurrently with the execution of this Stock Purchase Agreement, certain of the Sellers have entered into a Subscription Agreement, dated as of the date hereof (the “Seller Subscription Agreement”), pursuant to which each such Seller has agreed to contribute to Holdco their respective Rollover Shares in exchange for shares of the common stock, par value $0.01 per share, of Holdco (“Holdco Shares”) in a transaction intended to be a tax-free exchange under Section 351 of the Code;

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained herein, the Parties, each intending to be legally bound hereby, agree as set forth below.

 

ARTICLE I
 DEFINITIONS; CONSTRUCTION

 

1.1          Definitions.  As used in this Agreement, the following terms have the meanings specified in this Section 1.1.

 

“AAA” means the American Arbitration Association.

 

“Accounting Mediator” has the meaning set forth in Section 2.6(b).

 

“Accounting Protocol” means the protocol, set forth on Schedule 1.1A, for determining the Company’s working capital for purposes of Sections 2.4 through 2.6.

 

“Acquisition Proposal” has the meaning set forth in Section 6.7.

 

“Adjusted Purchase Price” has the meaning set forth in Section 2.2.

 

“Adjustment Escrow Amount” means an amount equal to $10,000,000.

 

“Adjustment Escrow Fund” has the meaning set forth in Section 2.4(b).

 

“After-Tax Rate” means 61.45%.

 

1

 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such Person, where “control” (and its variants) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, contract, or otherwise.  For the avoidance of doubt, the GMS Entities shall be Affiliates of the Buyer from and after the completion of the Closing.

 

“Agreement” or “Stock Purchase Agreement” means this Stock Purchase Agreement, together with all Disclosure Schedules and Exhibits attached hereto.

 

“Alternative Financing” has the meaning set forth in Section 6.8(e).

 

“Annual Financial Statements” has the meaning set forth in Section 3.5(a).

 

“Antitrust Division” means the Antitrust Division of the United States Department of Justice.

 

“Asbestos Action” means any Litigation, including claims for bodily injury, death or medical monitoring, arising out of or relating to actual or alleged exposure to asbestos or asbestos-containing materials.

 

“Business” means the business and operations of the Company and its Subsidiaries, taken as a whole, in connection with the distribution of wallboard and acoustical products, together with metal framing, insulation, ready-mix joint compound, and related interior construction products.

 

“Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in Georgia are authorized or obligated by law or executive order to close.

 

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

 

“Buyer Benefit Programs” means any employee benefit plan, program or arrangement sponsored by the Buyer or any of its Affiliates (including, on and after the Closing Date, the GMS Entities).

 

“Buyer Indemnified Parties” means Buyer, its Affiliates (including, following the Closing, the Company and its Subsidiaries), and their respective directors, officers, employees, agents and representatives.

 

“Buyer Termination Fee” has the meaning set forth in Section 8.2(a).

 

“CERCLA” has the meaning set forth in the definition of “Environmental Law.”

 

“Claim-Related Expenses” means any and all reasonable third party expenses incurred in connection with defending any claim, action, suit or proceeding incident to any matter indemnified against hereunder (including court filing fees, court costs, arbitration fees or costs,

 

2

 

witness fees and reasonable fees and disbursements of legal counsel, investigators, expert witnesses, accountants and other professionals).

 

“Closing” has the meaning set forth in Section 2.3.

 

“Closing Cash Purchase Price” has the meaning set forth in Section 2.4.

 

“Closing Date” has the meaning set forth in Section 2.3.

 

“Closing Date Cash Amount” means, as of 11:59 p.m. Eastern Standard Time on the day immediately preceding the Closing Date, the aggregate amount of marketable securities and cash of the GMS Entities determined in accordance with GAAP consistently applied, including bank account balances and amounts located at a facility of any GMS Entity, and excluding, for purposes of clarity, the aggregate amount of outstanding checks.

 

“Closing Date Indebtedness Amount” means the amount of Debt Obligations of the Company as of 11:59 p.m. Eastern Standard Time on the day immediately preceding the Closing Date.

 

“Closing Date Working Capital” means, as of 11:59 p.m. Eastern Standard Time on the day immediately preceding the Closing Date, an amount equal to the Company’s current assets minus the Company’s current liabilities, in each case as determined with respect to only those items referenced in and otherwise subject to the Accounting Protocol.

 

“Closing Statement” has the meaning set forth in Section 2.5.

 

“COBRA” means the provisions of Section 4980B of the Code and Part 6 of Subtitle B of Title I of ERISA.

 

“Code” means the United States Internal Revenue Code of 1986, as amended from time to time, and the applicable rulings and regulations thereunder.

 

“Committed Financing Sources” means the lenders participating in the Debt Financing pursuant to one or more Debt Commitment Letters, and the lenders which become parties to any joinder agreements, indentures or credit agreements entered into pursuant to the Debt Commitment Letters or related thereto, provided, however, Committed Financing Sources shall not include Buyer, Sponsor, or any of their respective Affiliates.

 

“Committed Financing Parties” means the Committed Financing Sources and their respective Affiliates, and their and their Affiliates’ respective current or future general or limited partners, stockholders, managers, members, directors, employees, representatives and agents and their respective successors and assigns.

 

“Commitment Letters” means, collectively, the Debt Commitment Letters and the Equity Commitment Letters.

 

“Company Employee” means any active or inactive full time employee of a GMS Entity as of the Closing Date.

 

3

 

“Company IT Assets” has the meaning set forth in Section 3.12(c),

 

“Company Transaction Expenses” means all fees, costs and expenses incurred by the Company or its Subsidiaries in connection with the evaluation, preparation, negotiation, documentation, execution and performance of this Agreement or the other Transaction Documents, including (i) the fees and expenses of any investment bankers, lawyers, accountants and other outside financial and other advisors, (ii) all transaction-related bonuses paid or payable to employees of Sellers, the Company and the Subsidiaries upon the consummation of the Share Transfer, including the Transaction Bonus Amount, and (iii) the employer portion of all employment, payroll and similar Taxes incurred with respect to making any payments described in clause (ii), but excluding any such amounts paid prior to the Closing.

 

“Compliant” means, with respect to Required Information, that such information, when taken as a whole, does not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (giving effect to all supplements and updates thereto).

 

“Continuing Employees” means any Company Employee who continues to be employed by Buyer or any of its controlled Affiliates (including the GMS Entities) for any period after the Closing Date.

 

“Contract” means any promissory note, indenture, mortgage, financial instrument, capital or operating lease of real or personal property, or other agreement to which a GMS Entity is a party (other than exclusively with another GMS Entity) or by which a GMS Entity is bound, but excluding purchase orders issued or received by a GMS Entity in the ordinary course of business.

 

“D&O Indemnified Person” has the meaning set forth in Section 6.15(a).

 

“Debt Commitment Letters” has the meaning set forth in Section 5.7(a).

 

“Debt Financing” has the meaning set forth in Section 5.7(a).

 

“Debt Obligation” shall mean, without duplication, any Contract evidencing (i) an obligation (including the principal amount thereof and the amount of accrued and unpaid interest thereon) for borrowed money, (ii) any capitalized lease obligation, (iii) any obligation properly classified as funded indebtedness under GAAP, (iv) with respect to letters of credit, banker’s acceptances or similar facilities, in each case to the extent drawn, (v) in respect of interest rate or currency protection swaps, forward contracts and similar obligations, (vi) for the deferred purchase price of property or services, including all seller notes and “earn-out” payment obligations, whether or not matured, (vii) to purchase, redeem, retire, defease or otherwise acquire for value any capital stock or equity interests or any warrants, rights or options to acquire such capital stock or equity interests, and (viii) any guarantee (whether contingent or otherwise) given by any GMS Entity in respect of any of the foregoing obligations of any other Person that is not a GMS Entity (other than the endorsement of negotiable instruments for deposit or collection in the ordinary course of business), plus, with respect to each of clauses (i) through

 

4

 

(viii), all premiums, fees, breakage costs or penalties related thereto; excluding, however, (A) all Intercompany Obligations, (B) any guarantee in respect of any Intercompany Obligation, and (C) for the avoidance of doubt, all amounts that are or may become due under the Minority Shareholder Agreements, all amounts that may become due under the Deferred Compensation Agreements referred to in the definition of the Minority Shareholder Deferred Compensation Amount, all obligations in respect of any operating lease and all open purchase orders for inventory and supplies entered into in the ordinary course of business.

 

“Deductible” has the meaning set forth in Section 9.2(a)(iii).

 

“Disclosure Schedules” means the Disclosure Schedules attached to this Stock Purchase Agreement and delivered to Buyer in connection with the execution and delivery of this Agreement, as the same may be updated or supplemented in accordance with Section 6.2(a).

 

“Dispute” has the meaning set forth in Section 10.9(b).

 

“Employee Benefit Plan” means any (a) “employee benefit plan,” within the meaning of Section 3(3) of ERISA (whether or not subject to ERISA), (b) material employment, severance, termination, change in control, stock option, stock purchase, stock appreciation, restricted stock, VEBA, profit sharing, pension, retirement, deferred compensation, incentive compensation, medical, life, disability, accident, salary continuation, paid time off, supplemental retirement and unemployment benefit plan or program (whether or not insured), or (c) other material benefit plan or program, in each case (i) that is maintained, sponsored or contributed to by any GMS Entity or an ERISA Affiliate for the benefit of any current or former employee or director of any GMS Entity or (ii) pursuant to which any GMS Entity or an ERISA Affiliate could have any liability.

 

“Encumbrance” means any mortgage, deed of trust, pledge, security interest, claim, easement, lien, charge, option, restriction on transfer, conditional sale or other title retention agreement, defect in title or other restriction of a similar kind.

 

“End Date” has the meaning set forth in Section 8.1(e).

 

“Enforceability Exceptions” has the meaning set forth in Section 3.2.

 

“Environmental Due Diligence” has the meaning set forth in Section 6.6(a).

 

“Environmental Law” means Laws relating to (a) the control of any pollutant, contaminant, or Hazardous Material, or the protection or restoration of the environment (including air, water and land) or natural resources; (b) the protection of human health and safety; and (c) the generation, manufacture, processing, use, handling, treatment, storage, disposal, release, distribution and transportation of solid, gaseous or liquid wastes, or Hazardous Materials, including the Clean Air Act, 42 U.S.C. §7401 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq., the Federal Water Pollution Control Act, as amended by the Clean Water Act, 33 U.S.C. §1251 et seq., the Comprehensive Environmental Response, Compensation, and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (“CERCLA”), 42 U.S.C. §9601 et seq., the Toxic Substances Control Act, 15 U.S.C. §2601 et seq., the Oil Pollution Act

 

5

 

of 1990, 33 U.S.C. §2701 et. seq., the Emergency Planning and Community Right to Know Act, 42 U.S.C. §11001 et seq., and the Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq.

 

“Environmental Permit” has the meaning set forth in Section 3.15(a).

 

“Equity Commitment Letters” has the meaning set forth in Section 5.7(a).

 

“Equity Financing” has the meaning set forth in Section 5.7(a).

 

“ERISA” means the United States Employee Retirement Income Security Act of 1974, as amended, and the applicable rulings and regulations thereunder.

 

“ERISA Affiliate” means, with respect to any entity, any trade or business, whether or not incorporated, that together with such entity would be deemed a “single employer” within the meaning of Section 414(b), (c) or (m) of the Code.

 

“Escrow Agent” means JPMorgan Chase Bank, NA.

 

“Escrow Amount” means the sum of the Adjustment Escrow Amount and the Indemnity Escrow Amount.

 

“Escrow Agreement” means the Escrow Agreement to be entered into at the Closing by and among the Buyer, Sellers and the Escrow Agent, substantially in the form attached hereto as Exhibit A.

 

“Estimated Cash Amount” has the meaning set forth in Section 2.5.

 

“Estimated Company Transaction Expenses Amount” has the meaning set forth in Section 2.5.

 

“Estimated Indebtedness Amount” has the meaning set forth in Section 2.5.

 

“Estimated Minority Interest Amount” has the meaning set forth in Section 2.5.

 

“Estimated Minority Shareholder Deferred Compensation Amount” has the meaning set forth in Section 2.5.

 

“Estimated Parent SAR Amount” has the meaning set forth in Section 2.5.

 

“Estimated Subsidiary SAR Amount” has the meaning set forth in Section 2.5.

 

“Estimated Working Capital Amount” has the meaning set forth in Section 2.5.

 

“Excess Properties” has the meaning set forth in Section 6.5(c).

 

“Excess Property Proceeds” means, with respect to each Excess Property, the net proceeds received by a GMS Entity after the Closing for the sale thereof if placed under contract prior to the second anniversary of the Closing Date, after deduction for (i) any GMS Entity’s out-

 

6

 

of-pocket costs and expenses incurred in connection with any such marketing and sale of such Excess Property (except to the extent included in Company Transaction Expenses hereunder), and (ii) the federal and, if applicable, state and local Tax payable in connection such sale.

 

“Exhibits” means the exhibits attached to this Stock Purchase Agreement.

 

“Financial Statements” has the meaning set forth in Section 3.5(a).

 

“Financing” means, collectively, the Debt Financing and the Equity Financing.

 

“Fundamental Representation” has the meaning set forth in Section 9.1.

 

“Future Transaction Tax Benefit” has the meaning set forth in Section 6.9(c)(ii).

 

“FTC” means the United States Federal Trade Commission.

 

“GAAP” means United States generally accepted accounting principles in effect for the relevant time period.

 

“GMS Asbestos Action” has the meaning set forth in Section 3.15(g).

 

“GMS Entity” means the Company and any Subsidiary thereof as of the date hereof and on the Closing Date.

 

“Governing Documents” means, with respect to any Person who is not a natural Person, the certificate or articles of incorporation, bylaws, operating agreement, deed of trust, or other charter documents or organizational or governing documents or instruments of such Person.

 

“Governmental Body” means any court or government (federal, state, local, foreign or provincial) or any political subdivision thereof, including without limitation, any department, commission, board, bureau, agency or other regulatory, administrative or governmental authority or instrumentality.

 

“Hazardous Materials” means (a) any regulated radioactive materials, friable asbestos, urea formaldehyde, polychlorinated biphenyls, petroleum, petroleum hydrocarbons or petroleum derivatives or byproducts; and (b) any chemicals, materials or substances classified as “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous substances,” “toxic substances”, or words of similar meaning and regulatory effect, under any applicable Environmental Law.

 

“Holdco” means GYP HOLDINGS I CORP., a Delaware corporation and indirect parent of Buyer.

 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.

 

“Income Tax” means any Tax on net or gross income, profits or receipts imposed by any Taxing Authority.

 

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“Income Tax Return” means any Tax Return for Income Taxes.

 

“Indemnified Party” has the meaning set forth in Section 9.3(a).

 

“Indemnified Environmental Matter” has the meaning set forth in Section 9.5(a).

 

“Indemnifying Party” has the meaning set forth in Section 9.3(a).

 

“Indemnity Escrow Amount” means $15,000,000.

 

“Indemnity Escrow Fund” has the meaning set forth in Section 2.4(b).

 

“Intellectual Property Assets” has the meaning set forth in Section 3.12(a).

 

“Intercompany Obligations” means all financial obligations owed by one GMS Entity solely to another GMS Entity.

 

“Interim Financial Statements” has the meaning set forth in Section 3.5(a).

 

“IRS” means the United States Internal Revenue Service.

 

“Law” means any applicable statute, law, ordinance, rule, regulation, order, judgment or decree enacted, adopted, issued or promulgated by any Governmental Body, as in effect on the date hereof.

 

“Leased Real Property” has the meaning set forth in Section 3.9(b).

 

“Litigation” means any action, suit, arbitration or proceeding of any nature or kind whatsoever, whether civil, criminal or administrative, at law or in equity, by or before any Governmental Body or arbitrator.

 

“Losses” means, without duplication, any and all liabilities, losses, costs, settlement payments, fines, penalties, Taxes, damages, claims, Encumbrances, Claim-Related Expenses or other charges.

 

“Marketing Period” means the first period of 15 consecutive Business Days after the date of this Stock Purchase Agreement, beginning on the first day after (i) delivery of all Required Information to the Buyer which, when so delivered, is Compliant, and with respect to the Required Information set forth in clauses (A) and (B) of Section 6.8(e)(ii), is Compliant throughout and on each day during such 15 consecutive Business Day period, and (ii) the conditions set forth in Sections 7.1(a), (b), (c), (d) and (e) and in Sections 7.2(a), (b) and (c) have been satisfied (other than those conditions that by their nature are to be satisfied by actions taken at Closing) and, except as a result of actions or inactions on the part of Buyer or any of its Affiliates (including Sponsor), nothing has occurred and no condition exists that would cause any of the conditions set forth in Section 7.2 to fail to be satisfied assuming the Closing were to be scheduled for any time during such 15 Business Day period; provided, that the Marketing Period shall be deemed not to have commenced if, prior to the completion of such 15 Business

 

8

 

Day period, the Company’s accounting auditor shall have withdrawn its audit opinion with respect to any of the Financial Statements.

 

“Marks” has the meaning set forth in Section 3.12(a)(i).

 

“Material Adverse Effect” means any material adverse change, effect, event, occurrence, fact or condition in or on the business, results of operation, condition (financial or otherwise) or assets of the Company and its Subsidiaries, taken as a whole, provided, however, that in no event shall any of the following, alone or in combination, be deemed to constitute, nor shall any of the following be taken into account in determining whether there has been, a Material Adverse Effect: any material adverse facts, circumstances, events, changes, effects or occurrences (a) resulting from or relating to the identity of Buyer or any of its Affiliates as the Buyer of the Company or the announcement of or execution of this Agreement or the pendency of the transactions contemplated by this Agreement, including losses or threatened losses of employees, customers, suppliers or others having relationships with the Company; (b) resulting from or relating to political conditions or any acts of terrorism or war; (c) relating to generally applicable economic conditions (including the state of the financial, debt, credit or securities markets, in the United States or elsewhere) or the industries in which the Company operates in general; (d) resulting from or relating to any change in Laws or GAAP or authoritative interpretations thereof; (e) resulting from or relating to the failure of the Business to meet projections, forecasts or estimates delivered to any Person (provided that the underlying causes of such failures may be considered in determining whether there is a Material Adverse Effect unless otherwise provided in this definition);  (f) resulting from or relating to any natural or man-made disaster or acts of God, or (g) resulting from or relating to actions of the Company or any of its Affiliates which Buyer has expressly requested or to which Buyer has expressly consented; except, in the case of clauses (b), (c), (d) or (f), where such change, effect, event, occurrence, fact or condition disproportionately affects the Company and its Subsidiaries, taken as a whole, relative to other participants in the industries in which the Company and its Subsidiaries operate.

 

“Material Contracts” has the meaning set forth in Section 3.17(a).

 

“Minority Interest Amount” means an amount equal to (a) the aggregate “Minimum Purchase Price” of all of the equity interests in the Company’s Subsidiaries that are not owned by the Company on the Closing Date, in each case, determined in accordance with the applicable Minority Shareholder Agreement, plus (b) the aggregate intrinsic value (i.e. the applicable “Adjusted Book Value” for the subject shares, less the exercise price) of all stock options outstanding under a stock option plan of any GMS Entity.

 

“Minority Shareholder Agreements” has the meaning set forth in Section 3.3(b).

 

“Minority Shareholder Deferred Compensation Amount” means, as of the Closing, (a) the product of (i) the aggregate amount of deferred compensation then-accrued pursuant to the terms of all Deferred Compensation Agreements set forth on Schedule 3.14(a), multiplied by (ii) the After-Tax Rate.

 

“Most Recent Balance Sheet” has the meaning set forth in Section 3.5(b).

 

“Most Recent Balance Sheet Date” has the meaning set forth in Section 3.5(b).

 

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“Objections” has the meaning set forth in Section 2.6(a).

 

“Owned Real Property” has the meaning set forth in Section 3.9(a).

 

“Parent SAR Amount” means, as of the Closing, (a) the aggregate amount then-payable in respect of the stock appreciation rights issued and outstanding pursuant to the Stock Appreciation Rights Plan of the Company (as amended through the Closing Date) plus (b) without duplication of any amount reducing the Purchase Price hereunder an amount equal to the employer portion of all employment, payroll and similar Taxes relating to all amounts described in subclause (a).  The amount described in clause (a) above will be determined in accordance with the relevant provisions of the Stock Appreciation Rights Plan of the Company.

 

“Parent SAR Closing Date Payout Amount” means the Estimated Parent SAR Amount less the Parent SAR Rollover Amount.

 

“Parent SAR Holder” means each Person who holds stock appreciation rights in the Company pursuant to the Stock Appreciation Rights Plan of the Company.

 

“Parent SAR Rollover Amount” means, as to each Parent SAR Holder, the amount of cash deemed received in a fully taxable transaction in respect of the Parent SAR Holder’s stock appreciation rights that he or she has elected to contribute to Holdco in exchange for Holdco Shares pursuant to a subscription agreement entered into between Holdco and such Parent SAR Holder prior to the Closing, if any.

 

“Party” means each Seller, the Company, and Buyer.

 

“Pay-Off Letter” has the meaning set forth in Section 7.3(a)(ii)(E).

 

“Patents” has the meaning set forth in Section 3.12(a)(ii).

 

“Permits” has the meaning set forth in Section 3.11(b).

 

“Permitted Encumbrances” means (a) liens for Taxes and other governmental charges and assessments that are not yet due and payable, or that are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in accordance with GAAP, (b) liens or rights of lessors, landlords, carriers, warehousemen, mechanics, materialmen and repairmen and other similar liens arising in the ordinary course of business for sums not yet due and payable, (c) liens securing Debt Obligations reflected on the Most Recent Balance Sheet, (d) purchase money security interests, (e) easements, rights of way and liens or restrictions on use that are imposed by Law relating to zoning, building or land use which are not violated in any material manner by the current conduct of the Business, (f) other non-monetary liens on, or imperfections of (or defects in) title with respect to, and encroachments  upon, property that do not materially impair the use of the property affected thereby as it is currently being used, and (f) Encumbrances set forth on Schedule 1.1P.

 

“Person” means and includes a natural person, a corporation, an association, a partnership, a limited liability company, a trust, a joint venture, an unincorporated organization or a Governmental Body.

 

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“Pre-Closing Period” has the meaning set forth in Section 3.8(b).

 

“Post-Closing Adjustment Amount” has the meaning set forth in Section 2.6(c).

 

“Prime Rate” means, as of any date specified in this Agreement, the U.S. prime rate published in The Wall Street Journal.

 

“Principal Seller” means, individually, each of Richard K. Mueller, Richard A. Whitcomb and G. Michael Callahan, Jr.

 

“Privilege Items” has the meaning set forth in Section 10.9(a).

 

“Pro Rata Share” means, with respect to each Seller or Seller Group, as applicable, the percentage set forth opposite such Seller’s or Seller Group’s name on Schedule A.

 

“PTO” has the meaning set forth in Section 6.10(c).

 

“Purchase Price” has the meaning set forth in Section 2.2.

 

“Recoverable Loss” means any Loss arising out of any single act, omission, event or circumstance (or series of related acts, omissions, events or circumstances) if such Loss exceeds $100,000.00 (and if such a Loss is incurred, the entire amount of such Loss shall be a Recoverable Loss).

 

“Reference Rate” means the Prime Rate plus 125 basis points.

 

“Related Party” means (i) any equity holder or any officer or director of any of the Company or its Subsidiaries, (ii) any spouse, former spouse, child, parent, parent of a spouse, sibling or grandchild of any of the Persons listed in clause (i) above, (iii) any Affiliate of any of the Persons listed in clause (i) or (ii) above, (iv) any corporation or organization of which such Person listed in clause (i) or (ii) above is an officer or partner or is directly or indirectly the beneficial owner of 10% or more of any class of equity interests, and (v) any trust or other estate in which any of the Persons listed in clause (i) or (ii) above has a substantial beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity, excluding, in each of clauses (iii) and (iv) above, the Company and its Subsidiaries.

 

“Related Party Group” means a Person that is controlled by Related Parties affiliated with more than one Seller Group, or with one Seller Group and any other Person (other than the Company) that owns equity in a Subsidiary of the Company.

 

“Related Sellers” means, as to each Principal Seller, the Sellers identified on Schedule A to this Stock Purchase Agreement as a Related Seller to such Principal Seller.

 

“Required Information” has the meaning set forth in Section 6.8(e).

 

“Resolution Date” has the meaning set forth in Section 2.6(d).

 

“Rolling Stock” means any trucks, vehicles, trailers and any associated equipment.

 

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“Rollover Amount” means as to each Seller that is a party to the Seller Subscription Agreement, the Rollover Amount of such Seller specified in the Seller Subscription Agreement.

 

“Rollover Shares” means, as to each as to each Seller that is a party to the Seller Subscription Agreement, the number of Subject Shares (as defined in the Seller Subscription Agreement) contributed to Holdco by such Seller pursuant thereto.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Seller Expense Fund” has the meaning set forth in Section 2.4(b).

 

“Seller Expense Fund Amount” means $250,000.00.

 

“Seller Group” means, with respect to each Principal Seller, such Principal Seller together with his respective Related Sellers as identified on Schedule A to this Stock Purchase Agreement.

 

“Seller Indemnified Parties” means each Seller, and the respective officers, directors, employees, trustees, agents and representatives of any of them.

 

“Seller Subscription Agreement” has the meaning set forth in the recitals to this Agreement.

 

“Sellers’ Knowledge” and all permutations thereof, means the actual knowledge of only the following persons: Richard A. Whitcomb; Richard K. Mueller; G. Michael Callahan, Jr.; Alan Adams; Steve Barker and Jack Hawkins.

 

“Shares” has the meaning set forth in the recitals to this Agreement.

 

“Share Transfer” has the meaning set forth in Section 2.1.

 

“Sponsor” has the meaning set forth in Section 5.7(a).

 

“Straddle Period” means any taxable year or period beginning on or before and ending after the Closing Date.

 

“Subsidiary” means, as to any Person, any corporation, partnership, joint venture or other entity of which such Person owns, directly or indirectly, more than 50% of the outstanding voting securities or equity interests.

 

“Subsidiary SAR Amount” means, as of the Closing, the product of (i) the amounts accrued under a Stock Appreciation Rights Plan of any GMS Entity (other than the Company) but not then payable, multiplied by (ii) the After-Tax Rate.  The amount described in clause (i) above will be determined in accordance with the relevant provisions of the applicable plan.

 

“Sutherland” has the meaning set forth in Section 10.9(a)

 

“Target Working Capital” means an amount equal to $225,000,000.00.

 

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“Tax” means (i) any federal, state, local or foreign income, gross receipts, ad valorem, value added, excise, real or personal property, abandoned or unclaimed property, asset, sales, use, license, payroll, transaction, capital, net worth and franchise taxes, estimated taxes, escheat, withholding, employment, social security, payroll, workers compensation, utility, severance, production, unemployment compensation, occupation, premium, windfall profits, transfer and gains taxes or other taxes, levies, assessments, customs, duties, imposts, charges or fees of any kind imposed by or payable to any Taxing Authority and including any interest, penalties or additions imposed with respect thereto, (ii) any liability for the payment of any amounts described in clause (i) of this definition as a result of being a member of an affiliated, consolidated, combined, unitary or similar group, as a result of transferor or successor liability, or as a result of the operation of Law, and (iii) any liability for the payments of any amounts as a result of being a party to any Tax Sharing Agreement or as a result of any express or implied obligation to indemnify any other person with respect to the payment of any amounts of the type described in clauses (i) or (ii) of this definition and, in each of cases (i), (ii) and (iii), whether disputed or not.

 

“Tax Matters” has the meaning set forth in Section 6.9(c).

 

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

 

“Tax Sharing Agreement” means any Tax allocation agreement, Tax indemnification agreement, Tax sharing agreement or similar contract or arrangement, whether or not written.

 

“Taxing Authority” means the IRS and any other Governmental Body having jurisdiction over the assessment, determination, collection or other imposition of Taxes.

 

“Transaction Bonus Amount” means the total amount of transaction bonuses approved for payment to the Transaction Bonus Recipients, as set forth on Schedule 6.5(a).

 

“Transaction Bonus Recipient” means an employee of a GMS Entity, as described in Schedule 6.5(a), for whom the Company’s board of directors has authorized the payment of a bonus in connection with the consummation of the Share Transfer, provided such individual remains an employee of a GMS Entity on the Closing Date.

 

“Transaction Tax Deductions” means the items properly deductible as a matter of applicable Law at a “should” level that are borne by the Company in connection with the transactions contemplated by this Agreement, which are set forth on Schedule 1.1T.

 

“Transfer Shares” means the Shares other than the Rollover Shares.

 

“Transfer Taxes” has the meaning set forth in Section 6.9(f).

 

“WARN Act” means the Federal Workers’ Adjustment and Retraining Notification Act, as amended, and the rules and regulations promulgated thereunder.

 

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1.2                               Construction.

 

(a)                                 Unless the context otherwise requires, as used in this Agreement: (i) an accounting term not otherwise defined herein has the meaning ascribed to it in accordance with GAAP; (ii) “including” and its variants mean “including, without limitation” and its variants; (iii) words defined in the singular have the parallel meaning in the plural and vice versa; (iv) words of one gender shall be construed to apply to all genders; (v) the terms “hereof”, “herein”, “hereby”, “hereto”, and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto, as may be amended from time to time; (vi) the terms “Article”, “Section”, “Exhibit” and “Schedule” refer to the specified Article, Section, Exhibit or Schedule of or to this Agreement; and (vii) titles and captions used in this Agreement are inserted only as a matter of convenience and in no way define, limit, extend or describe the scope of this Agreement or the intent of any of its provisions.

 

(b)                                 A reference to any Person includes such Person’s successors and permitted assigns.

 

(c)                                  Any reference to “days” means calendar days unless Business Days are expressly specified.

 

(d)                                 Any references to “dollars” or “$” means dollars of the United States of America.

 

(e)                                  The Disclosure Schedules and Exhibits to this Agreement are incorporated herein by reference and made a part hereof for all purposes.  The information and disclosures set forth in each section of the Disclosure Schedules shall be deemed to be disclosed and incorporated by reference in each other section and subsection thereof where the applicability of such information or disclosure to such other section or subsection is reasonably apparent on its face.  The disclosures in the Disclosure Schedules may be over-inclusive, considering the materiality standards contained in, and the disclosures required by, the provisions of this Agreement, and the fact that any item or matter is disclosed in the Disclosure Schedules shall not itself be deemed to set or establish different standards of materiality or required disclosures from those set forth in the corresponding provisions of this Agreement.  The disclosure of any item or information in the Disclosure Schedules is not an admission that such item or information is material or required to be disclosed in the Disclosure Schedules.  The information and disclosure contained in the Disclosure Schedules shall not be deemed to expand in any way the scope or effect of the representations and warranties set forth in this Agreement.  No disclosure in the Disclosure Schedules relating to any possible breach or violation of any Contract or Law shall be construed as an admission or indication that any such breach or violation exists or has actually occurred.

 

(f)                                   The Parties, each represented by legal counsel, have each participated in the negotiation and drafting of this Agreement.  If an ambiguity or question of intent or interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions of this Agreement.

 

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ARTICLE II
 THE TRANSACTION

 

2.1                               Sale and Purchase of Shares.  Upon the terms and conditions of this Agreement and in consideration of the Purchase Price, at the Closing, each Seller shall sell, assign, transfer and deliver to Buyer, and Buyer shall purchase and take delivery of, such Seller’s Transfer Shares, free and clear of all Encumbrances (such sale, assignment, transfer and delivery by all Sellers, the “Share Transfer”).  Each certificate representing Transfer Shares shall be duly endorsed, or accompanied by a stock power duly endorsed, by the applicable Seller for transfer to Buyer.

 

2.2                               Purchase Price.  The aggregate purchase price for the Transfer Shares shall be $860,000,000.00 (the “Purchase Price”), as such price may be adjusted in accordance with the provisions of Section 2.5 and Section 2.6 (the “Adjusted Purchase Price”).

 

2.3                               Closing.  Unless this Agreement shall have been terminated and the transactions contemplated hereby shall have been abandoned pursuant to ARTICLE VIII, and subject to the satisfaction or waiver of all of the conditions set forth in ARTICLE VII, the closing of the Share Transfer (the “Closing”) shall take place at 10:00 A.M., Atlanta, Georgia time, at the offices of Sutherland Asbill & Brennan LLP, 999 Peachtree Street NE, Atlanta, Georgia 30309, on the earliest of:

 

(a)                                 April 1, 2014; or

 

(b)                                 if the Marketing Period has not ended as of such date, on the earliest to occur of (i) any Business Day during or before the expiration of the Marketing Period as may be specified by Buyer on no less than three (3) Business Days’ prior notice to the Company and (ii) two (2) Business Days after the final day of the Marketing Period; or

 

(c)                                  such other date, time or place as the Parties shall agree in writing;

 

provided, in each of the foregoing clauses (a) through (c), that the conditions set forth in Article VII have each been satisfied or waived by the Party entitled to waive any such condition (other than those conditions that by their nature are to be satisfied by actions taken at the Closing, but subject to the fulfillment or waiver of those conditions).  As used herein, “Closing Date” means the date when the Closing actually occurs.

 

2.4                               Payment and Related Transactions.

 

(a)                                 Upon the terms and subject to the conditions of this Agreement, at the Closing, Buyer shall pay each Seller by wire transfer of immediately available funds to an account designated by such Seller, an amount equal to (x) his or its Pro Rata Share of the Closing Cash Purchase Price, less (y) his or its respective Rollover Amount.  As used herein “Closing Cash Purchase Price” means an amount calculated as follows (without duplication), all as set forth on the Closing Statement:

 

(i)                                     the Purchase Price, plus

 

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(ii)                                  the Estimated Cash Amount; plus

 

(iii)                               the excess, if any, of the Estimated Working Capital Amount over the Target Working Capital; less

 

(iv)                              the excess, if any, of the Target Working Capital over the Estimated Working Capital Amount; less

 

(v)                                 the Estimated Indebtedness Amount; less

 

(vi)                              the Estimated Minority Interest Amount; less

 

(vii)                           the Estimated Parent SAR Amount; less

 

(viii)                        the Estimated Subsidiary SAR Amount; less

 

(ix)                              the Escrow Amount; less

 

(x)                                 the Seller Expense Fund Amount; less

 

(xi)                              the Estimated Minority Shareholder Deferred Compensation Amount; less

 

(xii)                           the Estimated Company Transaction Expenses Amount; less

 

(xiii)                        all other amounts to be paid by Buyer directly to a third party, at the reasonable request and on behalf of the Company in connection with the Closing.

 

(b)                                 In addition, at the Closing, Buyer shall pay or deposit, by wire transfer of immediately available funds, (i) an amount equal to the Escrow Amount with the Escrow Agent, (ii) an amount equal to the Seller Expense Fund Amount to an account designated by the Sellers, (iii) an amount equal to the Parent SAR Closing Date Payout Amount plus the Transaction Bonus Amount to an account of the Company designated by the Company, for distribution to each Parent SAR Holder or Transaction Bonus Recipient, as applicable, pursuant to the last sentence of Section 2.4(c), and (iv) an amount equal to that portion of the Closing Date Indebtedness Amount to be satisfied on the Closing Date (as set forth in the Closing Statement), to each holder thereof pursuant to the Payoff Letters.

 

(c)                                  The Adjustment Escrow Amount and the Indemnity Escrow Amount so deposited with the Escrow Agent (the “Adjustment Escrow Fund” and the “Indemnity Escrow Fund”, respectively), together with all interest accrued thereon, shall be governed by the terms of the Escrow Agreement.  The amount so deposited in respect of the Seller Expense Fund Amount shall be available, together with all interest accrued thereon (the “Seller Expense Fund”), to pay any expenses of the Sellers following the Closing as they may determine in their sole discretion.  As soon as practical after the Closing, Buyer shall cause the Company to pay (i) to each Parent SAR Holder his or her applicable portion of the Parent SAR Closing Date Payout Amount, in satisfaction of the Company’s obligations thereto under such Parent SAR Holder’s Stock Appreciation Rights Agreement(s), and (ii) to each Transaction Bonus Recipient, the

 

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applicable portion of the Transaction Bonus Amount, in each case, subject to all applicable withholding pursuant to Section 2.7.

 

2.5                               Closing Date Purchase Price Adjustment.  No later than three (3) Business Days prior to the Closing Date, the Company shall deliver to Buyer a statement (the “Closing Statement”) setting forth its good faith (a) estimate of (i) the Closing Date Cash Amount, (ii) the Closing Date Working Capital, (iii) the Closing Date Indebtedness Amount, (iv) the Minority Interest Amount, (v) the Parent SAR Amount, (vi) the Subsidiary SAR Amount, (vii) the Minority Shareholder Deferred Compensation Amount and the (viii) the Company Transaction Expenses (such estimates, respectively, the “Estimated Cash Amount”, the “Estimated Working Capital Amount,” the “Estimated Indebtedness Amount,” the “Estimated Minority Interest Amount”, “Estimated Parent SAR Amount”, the “Estimated Subsidiary SAR Amount”, the “Estimated Minority Shareholder Deferred Compensation Amount” and the “Estimated Company Transaction Expenses Amount”), which amounts (together with the Parent SAR Rollover Amount) shall be the basis for the adjustments set forth in Section 2.4(a), and (b) calculation of the Closing Cash Purchase Price.  For purposes of this Section 2.5 and Section 2.6, no item included in any one of the amounts described herein, or in the corresponding estimate, will also be included in any other of such amounts described herein, or in the corresponding estimate.

 

2.6                               Post-Closing Purchase Price Adjustment.

 

(a)                                 Buyer’s Calculation.  As soon as practicable, but in no event later than 75 days, after the Closing Date, Buyer shall prepare or cause to be prepared and shall deliver to Sellers a statement setting forth its good faith calculation of the Closing Date Cash Amount, Closing Date Indebtedness Amount, Closing Date Working Capital, the Minority Interest Amount, the Subsidiary SAR Amount and the Company Transaction Expenses.  If Sellers object to any of such Buyer estimates, Sellers shall notify Buyer no later than 45 days after Sellers’ receipt of such statement, setting forth with reasonable specificity their objections (the “Objections”).  Thereafter, Buyer and Sellers shall endeavor in good faith, during the 30-day period commencing on the date of delivery of such notice of Objections (or such longer period as the Parties may then agree), to resolve the Objections.  For so long as any Objections remain unresolved, Buyer shall make available, and shall cause the Company to make available, to Sellers such books and records as Sellers may reasonably request in connection with resolving any Objections.

 

(b)                                 Dispute Resolution.  If at the end of the 30-day period (or such longer period as the Parties may agree) there are any unresolved Objections, Sellers and Buyer shall submit the calculation and resolution of such unresolved Objections to Deloitte LLP or, if Deloitte LLP is not able to accept such engagement, to another independent accounting firm to be agreed upon by the Parties  (the “Accounting Mediator”).  The Accounting Mediator shall be instructed to resolve the Objections and such resolution shall be (i) set forth in writing and signed by the Accounting Mediator, (ii) delivered to Buyer and Sellers as soon as practicable after the Objections are submitted to the Accounting Mediator but not later than the 30th day after such submission, (iii) made in accordance with this Agreement, and (iv) conclusive and binding on the Parties.  The Accounting Mediator shall only decide the Objections submitted to it, and with respect to each, shall not assign any value that is greater than the highest value for such amount 

 

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claimed by either the Sellers or the Buyer or that is less than the lowest value for such amount claimed by either the Sellers or the Buyer.  The Accounting Mediator shall base its decision solely upon the presentations of the Parties to the Accounting Mediator at a hearing held before the Accounting Mediator and upon any materials made available by either Party and not upon independent review.  If the Accounting Mediator does not or is unwilling to resolve all of the Objections on or before the expiration of 60 days from the date of submission of the Objections, either Party shall be entitled to apply for arbitration in accordance with the provisions set forth in Section 10.8. The costs and fees of the Accounting Mediator shall be borne by the Sellers on the one hand, and the Buyer on the other hand, in the inverse proportion that the contested amounts relating to the Objections submitted to the Accounting Mediator and awarded to such Party bears to the total contested amounts relating to such Objections, as determined by the Accounting Mediator.

 

(c)                                  Adjustment Amount. Following the examination, review and, if applicable, dispute resolution procedure set out in Section 2.6(b), the Purchase Price shall be adjusted as described herein.  The amount of such adjustment (the “Post-Closing Adjustment Amount”) shall be equal to the sum of (i) the Closing Date Cash Amount (as finally determined) minus the Estimated Cash Amount, (ii) the Estimated Indebtedness Amount minus the Closing Date Indebtedness Amount (as finally determined), (iii) the Closing Date Working Capital (as finally determined) minus the Estimated Working Capital Amount, (iv) the Estimated Minority Interest Amount minus the Minority Interest Amount (as finally determined), (v) the Estimated Parent SAR Amount minus the Parent SAR Amount (as finally determined), (vi) the Estimated Subsidiary SAR Amount minus the Subsidiary SAR Amount (as finally determined), (vii) the Estimated Minority Shareholder Deferred Compensation Amount minus the Minority Shareholder Deferred Compensation Amount (as finally determined) and (viii) the Estimated Company Transaction Expense Amount minus the Company Transaction Expense Amount (as finally determined).  If the Post-Closing Adjustment Amount is a positive number, Buyer shall pay to each Seller his or its Pro Rata Share of an amount equal thereto.  If the Post-Closing Adjustment Amount is a negative number, each Seller shall pay Buyer an amount equal to its Pro Rata Share of the absolute value thereof.  Any amount payable pursuant to this Section 2.6(c) shall include interest from the Closing Date to and including the date paid at the Reference Rate.

 

(d)                                 Payment.  Payment of the Post-Closing Adjustment Amount, plus accrued interest as set forth above, shall be made by Buyer or Sellers, as the case may be, by wire transfer of immediately available funds to the wire transfer address designated by the Party or Parties entitled to such payment.  If the Post-Closing Adjustment Amount is to be paid to Buyer, then Sellers and Buyer shall jointly instruct the Escrow Agent, no later than two (2) Business Day following, as applicable (i) the date on which the Parties agree among themselves on a resolution to all Objections, (ii) the date on which the period for Objections has expired if no Objections have been asserted or, (iii) if any Objections are timely asserted and not otherwise resolved among the parties, the date on which the procedures for resolution of the Objections as set forth in Section 2.6(b) have been completed (such date, the “Resolution Date”), to (x) distribute to Buyer out of the Adjustment Escrow Fund any Post-Closing Adjustment Amount required to be paid by Sellers to Buyer pursuant to Section 2.6(c), and (y) simultaneously distribute to each Seller an amount equal to his or its Pro Rata Share of the Adjustment Escrow Fund remaining after distribution of any amounts to Buyer pursuant to clause (x) hereof.  If the Post-Closing Adjustment Amount is to be paid by Buyer, then Sellers and Buyer shall jointly instruct the

 

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Escrow Agent, no later than two (2) Business Day following the Resolution Date, to distribute the entire amount of the Adjustment Escrow Fund then on deposit with the Escrow Agent to Sellers, each in accordance with their respective Pro Rata Share.  In the event the Post-Closing Adjustment Amount is to be paid to Buyer pursuant to Section 2.6(c) and such amount is greater than the amount available for such payment from the Adjustment Escrow Fund, the Sellers shall pay such excess by wire transfer of immediately available funds to the wire transfer address designated by Buyer no later than five (5) Business Days following the Resolution Date.

 

(e)                                  Tax Treatment.  All amounts paid pursuant to this Section 2.6 shall be treated by the Parties as an adjustment to the Purchase Price, except as otherwise required by applicable Law.

 

2.7                               Withholding.  Notwithstanding anything in this Agreement to the contrary, each of Buyer and the Company shall be entitled to deduct and withhold from any payment made to or for the benefit of any Person pursuant to this Agreement or the Escrow Agreement such amounts as it may be required to deduct and withhold with respect to the making of such payment under any provision of federal, state, local or foreign Tax Law. Any amounts so deducted and withheld will be treated for all purposes of this Agreement and the Escrow Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

 

The Company represents and warrants to Buyer that, except as set forth on the Disclosure Schedules attached to this Agreement:

 

3.1                               Organization and Authority.  Each GMS Entity is a corporation duly organized, validly existing and in good standing under the Laws of their jurisdiction of incorporation and has the necessary corporate power and authority to own, operate and lease its properties and carry on its business as now conducted.  Each GMS Entity is duly qualified to do business and in good standing in each jurisdiction in which the character of the properties owned, operated or leased by it or the nature of the activities conducted by it make such qualification and good standing necessary, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  Schedule 3.1 sets forth the state of incorporation and all jurisdictions in which the Company and its Subsidiaries are currently qualified to do business.

 

3.2                               Authorization; Enforceability.  The Company has all requisite corporate power and authority to execute, deliver and perform its obligations under and consummate the transactions contemplated by this Agreement and each other agreement, document, instrument or certificate contemplated by this Agreement to be executed by the Company in connection with the consummation of the transactions contemplated hereby. This Agreement has been and each other agreement, document, instrument, or certificate contemplated hereby will be, duly executed and delivered by, and does and will constitute the legal, valid and binding obligation of the Company, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other Laws of general application relating to or affecting creditors’ rights and to

 

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general equity principles (collectively, the “Enforceability Exceptions”).  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate proceedings on the part of the Company and no further corporate action, approval or consent on the part of the Company is necessary to authorize the execution, delivery or performance of this Agreement or the consummation of the transactions contemplated hereby.

 

3.3                               Capitalization; Subsidiaries.

 

(a)                                 Company.  The Shares constitute all of the issued and outstanding shares of capital stock of the Company and are owned of record by Sellers as set forth on Schedule 3.3(a).  The authorized capital stock of the Company consists of (i) 300,000 shares of Class A Common Stock, of which 85,263 shares are issued and outstanding, and (ii) 800,000 shares of Class B Common Stock, of which 767,367 shares are issued and outstanding.  All of such outstanding Shares have been duly authorized and  validly issued and are fully paid and non-assessable.  Except as set forth on Schedule 3.3(a), there are no outstanding options, warrants, rights or subscriptions to purchase any capital stock of the Company, nor has the Company entered into or otherwise become a party to any Contract to issue or sell any shares of its capital stock, or any securities or obligations convertible into or exchangeable for any shares of its capital stock, or granted to any Person any right that is in effect on or after the date hereof to subscribe for or acquire from it any shares of its capital stock, and no such securities, obligations or rights are outstanding.

 

(b)                                 Subsidiaries.  Except for the capital stock of the Subsidiaries set forth on Schedule 3.1, the Company does not own any capital stock or other ownership interest in any other Person. Except as set forth on Schedule 3.3(b), the Company is the record and beneficial owner of all of the issued and outstanding capital stock of each of its Subsidiaries, free and clear of any and all Encumbrances except those arising under federal and state securities laws. All of the issued and outstanding shares of capital stock of each of the Company’s Subsidiaries have been duly authorized and validly issued and are fully paid and non-assessable.  Except as set forth on Schedule 3.3(b), there are no outstanding options, warrants, rights or subscriptions to purchase any capital stock or other ownership interest of any Subsidiary, nor has any Subsidiary entered into or become a party to any Contract to issue or sell any shares of its capital stock or other ownership interests, or any securities or obligations convertible into or exchangeable for any shares of its capital stock or other ownership interests, or granted to any Person any right that is in effect on or after the date hereof to subscribe for or acquire from it any shares of its capital stock or other ownership interests, and no such securities, obligations or rights are outstanding. Schedule 3.3(b) sets forth a complete, true and correct list of all Contracts (the “Minority Shareholder Agreements”) to which one or more GMS Entities is a party and to which any shares of a Subsidiary’s capital stock are subject. The Company has made available to Buyer a true, correct and complete copy of each Minority Shareholder Agreement.

 

3.4                               No Violation of Laws or Agreements; Consents.  Neither the execution and delivery by the Company of this Agreement, the consummation of the transactions contemplated hereby, nor the compliance with or fulfillment of the terms, conditions or provisions hereof by the Company:

 

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(a)                                 violates any provision of the Governing Documents of any GMS Entity;

 

(b)                                 except as set forth on Schedule 3.4(b), (i) creates any Encumbrance on the Shares, or (ii) conflicts with, breaches, constitutes a default or an event of default under any of the terms of, results in the termination or modification of, accelerates the maturity of, creates a right of any party to terminate, or creates an Encumbrance on any asset or property of a GMS Entity under, any Contract, which would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect; or

 

(c)                                  subject to compliance with  the HSR Act, violates any Law to which a GMS Entity is subject or by which any asset of a GMS Entity is bound or affected, or otherwise requires consents, approvals, authorizations, registrations or filings by, or with, a Governmental Body, the result of which or the failure to obtain of which would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

3.5                               Financial Statements.

 

(a)                                 The Company has delivered to Buyer copies of the following financial statements, true, correct and complete copies of which are also attached hereto as Schedule 3.5(a): (i) the audited consolidated balance sheet of the Company as of April 30, 2013, and the audited consolidated income statement of the Company for the fiscal year then ended (collectively, the “Annual Financial Statements”), and (ii) the unaudited interim consolidated balance sheet of the Company as of November 30, 2013, and the unaudited interim consolidated income statement of the Company for the seven-month period then ended (collectively, the “Interim Financial Statements” and together with the Annual Financial Statements, the “Financial Statements”).

 

(b)                                 The Annual Financial Statements (i) have been prepared in accordance with GAAP on a consistent basis throughout the indicated period (except as may be indicated in the notes thereto), and (ii) present fairly in all material respects the consolidated financial condition and results of operation of the Company and its Subsidiaries, taken as a whole, at the dates and for the relevant periods indicated.  Except as set forth on Schedule 3.5(b), the Interim Financial Statements (i) have been prepared in accordance with GAAP on a consistent basis throughout the indicated period, subject to normal and recurring year-end adjustments and the absence of notes, and (ii) present fairly in all material respects the consolidated financial condition and results of operation of the Company and its Subsidiaries, taken as a whole, at the dates and for the relevant periods indicated.  The unaudited interim consolidated balance sheet of the Company included in the Interim Financial Statements shall be referred to herein as the “Most Recent Balance Sheet,” and the date thereof shall be referred to herein as the “Most Recent Balance Sheet Date.”

 

3.6                               Absence of Undisclosed Liabilities.  There exist no material liabilities, whether absolute or contingent, of a GMS Entity which would be required to be reflected, reserved for or disclosed in a consolidated balance sheet of the Company prepared as of the date of this Agreement in accordance with GAAP and in a manner consistent with the Most Recent Balance Sheet, other than (i) liabilities that are reflected, reserved for or disclosed in the Financial Statements, (ii) liabilities incurred in the ordinary course of business since the Most Recent

 

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Balance Sheet Date, (iii) liabilities for items disclosed on the Schedules hereto, or (iv) liabilities incurred in the connection with the transactions contemplated by this Agreement.

 

3.7                               No Changes.  Except as contemplated by this Agreement or as set forth on Schedule 3.7, since the Most Recent Balance Sheet Date, the GMS Entities have conducted their business only in the ordinary course, and there has not been:

 

(a)                                 any material increase in the salary, wage or bonus payable by any GMS Entity to any managerial employee thereof, except in the ordinary course of business and consistent with past business practices or as required by employment or retention contracts;

 

(b)                                 any material change in any method of any GMS Entities’ accounting or accounting practices, other than as required by GAAP or applicable Law;

 

(c)                                  through the date hereof, any sale, lease or other disposition of any assets of a GMS Entity, other than (i) inventory in the ordinary course of business, (ii) sales of assets not in excess of $100,000 individually or $500,000 in the aggregate, or (iii) transfers to another GMS Entity;

 

(d)                                 any issuance, sale or disposition of capital stock or any other securities or grant of any options, warrants or other rights to subscribe for, obtain (including upon conversion, exchange or exercise) or purchase any capital stock or any other securities of any GMS Entity;

 

(e)                                  any write-offs, write-downs or write-ups of the value of any of the inventory or other assets of any GMS Entity outside the ordinary course of business;

 

(f)                                   any new mortgage or pledge of any material assets of a GMS Entity, except for Permitted Encumbrances arising in the ordinary course of business;

 

(g)                                  any creation or assumption by a GMS Entity of any Debt Obligation for borrowed money, except for Debt Obligations incurred in the ordinary course of business, or pursuant to Contracts disclosed on Schedule 3.17 or entered into in the ordinary course of business;

 

(h)                                 any guarantee by a GMS Entity of any liability (whether directly, contingently or otherwise) for the obligations of any other Person (other than another GMS Entity), except in the ordinary course of business and except for the endorsement of negotiable instruments by a GMS Entity in the ordinary course of business;

 

(i)                                     any Tax election or method of Tax accounting made, revoked or changed, an amended Tax Return or a claim for refund of Taxes filed, any ruling request, closing agreement, or similar agreement with respect to Taxes entered into, any liability with respect to Taxes settled or compromised, or any claim or assessment relating to Taxes consented to or the statute of limitations for any such claim or assessment waived;

 

(j)                                    any change, effect, event, occurrence, fact or condition that, as of the date hereof, has had, or would reasonably be expected to have, individually or in the aggregate a Material Adverse Effect; or

 

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(k)                                 any agreement or commitment to do any of the foregoing.

 

3.8                               Taxes.

 

(a)                                 Tax Returns.  The Company or other applicable GMS Entity has:

 

(i)                                     duly and timely filed with the appropriate Taxing Authority all Income Tax and other material Tax Returns required to be filed by or on behalf of the GMS Entities, and

 

(ii)                                  duly and timely paid all Income Taxes and other material Taxes due and payable (whether or not shown on such Tax Returns) with respect to such GMS Entity.

 

For purposes of the preceding sentence, any Tax Return or Taxes for which an extension to file or pay has been obtained will be deemed to be timely if filed and paid by the date provided by any such extension.  For federal income tax purposes, the Company is the “common parent” of an “affiliated group” within the meaning of Section 1504(a) of the Code (the “Affiliated Group”) that has elected to file a consolidated federal income tax return.

 

(b)                                 Liabilities.  All Taxes of the GMS Entities for all Tax periods ending on or prior to the Closing Date, and all Taxes of the GMS Entities for the portion of any Straddle Period ending on and including the Closing Date (each such year or period or portion thereof ending on or before the Closing Date, a “Pre-Closing Period”), which have been reported on returns and required by Law to be paid, to the extent due and payable, have been paid, accrued on the Most Recent Balance Sheet (or otherwise reflected in the final determination of Closing Date Working Capital) or are being contested in good faith.

 

(c)                                  Audits; Examinations.

 

(i)                                     Except as otherwise disclosed on Schedule 3.8(c), no GMS Entity has received notice of any ongoing audit or examination of any Tax Return filed by a GMS Entity or the Affiliated Group which could materially adversely affect the Tax liability of the GMS Entities.

 

(ii)                                  Except as otherwise disclosed on Schedule 3.8(c), no GMS Entity presently has in effect any waiver or extension of the statute of limitations in respect of any Tax (or any extension of time with respect to the assessment or collection of any Tax) of the GMS Entities.

 

(d)                                 Agreements.  Except as otherwise disclosed on Schedule 3.8(d), there are no Tax Sharing Agreements in effect between any GMS Entity and any other Person (except for other GMS Entities and customary agreements to indemnify lenders or security holders in respect of Taxes).

 

(e)                                  Consolidated Returns; Etc.  Except as otherwise disclosed on Schedule 3.8(e), no GMS Entity (i) was a member of an affiliated group filing a consolidated federal income tax return (other than the Affiliated Group of which the Company is the common parent) for any taxable period for which the statute of limitations has not expired, or (ii) is liable for the

 

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Taxes of another Person for any taxable period for which the statute of limitations has not expired (A) under Treasury Regulation Section 1.1502-6 (or similar or comparable provisions of state, local or foreign Law), (B) as a transferee or successor, or (C) by contract or indemnity.  Each of the Subsidiaries of the Company (x) has been and is eligible to join in the filing of a consolidated federal income tax return with the Company for all taxable periods in which such GMS Entity was included in a consolidated federal income tax return with the Company, and (y) has only one class of shares outstanding or, to the extent such Subsidiary has more than one class of shares outstanding, the Company owns all of the shares of each class other than the shares of one class of common shares of such Subsidiary.

 

(f)                                   Notices.  No GMS Entity has received from any Taxing Authority in the last two (2)years any notice of deficiency or proposed adjustment for any amount of Tax that could materially adversely affect the Tax liability of the GMS Entities and that has not been fully paid or otherwise satisfied or withdrawn.

 

(g)                                  Withholding.  Each GMS Entity has complied in all material respects with all Laws relating to the payment and withholding of Taxes and information reporting with respect thereto and has duly and timely withheld or collected all amounts required to be so withheld or collected and timely paid such amounts over to the appropriate Taxing Authorities for all periods under all applicable Laws.

 

(h)                                 Listed Transactions; Etc.  No GMS Entity has (i) participated in any “listed transaction” within the meaning of Treasury Regulation Section 1.6011-4 or any similar or comparable provision of state, local or foreign Law, (ii) except as otherwise disclosed on Schedule 3.8(h), since May 1, 2010, requested or received any Tax ruling, transfer pricing agreement, or similar agreement or entered into any “closing agreement” as described in Section 7121 of the Code (or any similar or comparable provision of state, local or foreign Law) or (iii) except as otherwise disclosed on Schedule 3.8(h), since May 1, 2010, been a “distributing corporation” or a “controlled corporation” in connection with a distribution that was purported or intended to be governed in whole or in part by Section 355 or Section 361 of the Code.

 

(i)                                     Changes in Method of Accounting, Etc.  No GMS Entity will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any (i) change in method of accounting, (ii) election under Section 108(i) of the Code (or any similar or comparable provision of state, local or foreign Law), (iii) installment sale or open transaction disposition made on or prior to the Closing Date, or (iv) prepaid amount received on or prior to the Closing Date other than in the ordinary course of business.

 

3.9                               Rights in Assets.

 

(a)                                 Owned Real Property.  Schedule 3.9(a) sets forth, for each GMS Entity, a complete and accurate list of all real property owned as of the date hereof (the “Owned Real Property”).  Each GMS Entity has title to its respective Owned Real Property free and clear of all Encumbrances except for Permitted Encumbrances.

 

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(b)                                 Leases of Real Property.  Schedule 3.9(b) sets forth, for each GMS Entity, a complete and accurate list of all material leases of real property to which it is a party on the date hereof or by which it is presently bound (whether as lessee or lessor) (collectively, the “Leased Real Property”).  The Company has made available to the Buyer, correct and complete copies of each Contract in respect of such Leased Real Property. Each GMS Entity is in possession of the real property covered under each lease set forth on Schedule 3.9(b) for which it is the lessee except as set forth in such Schedule.

 

(c)                                  Owned Personal Property.  The GMS Entities have good title to all material items of personal property used in the Business (other than Leased Personal Property), free and clear of all Encumbrances except for Permitted Encumbrances.  Schedule 3.9(c) sets forth, for each GMS Entity, a complete and accurate list of all personal property owned as of the date hereof that has a net book value in excess of $100,000 (the “Owned Personal Property”).

 

(d)                                 Leased Personal Property.  Schedule 3.9(d) sets forth, for each GMS Entity, a complete and accurate list of all personal property leased as of the date hereof under an agreement requiring the payment of more than $150,000 per year (the “Leased Personal Property”).

 

(e)                                  Adequacy of Assets.  The GMS Entities collectively own or, to Seller’s Knowledge, have valid and enforceable contractual rights (subject to the Enforceability Exceptions) to use all of the assets required to enable them, collectively, to operate the Business as presently conducted; provided, however, Sellers make no representation as to the adequacy of the working capital of any GMS Entity which is delivered at Closing.

 

(f)                                   Condemnation Proceedings.  Except as set forth on Schedule 3.9(f), as of the date hereof, to Sellers’ Knowledge, there is no pending or threatened condemnation or eminent domain proceeding affecting any Owned Real Property or Leased Real Property.

 

3.10                        No Pending Litigation.  There is no Litigation pending or, to the Sellers’ Knowledge, threatened against any GMS Entity which would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, or that challenges or could have the effect of preventing, delaying, making illegal, imposing limitations or conditions on, or otherwise materially delaying or interfering with, the transactions contemplated by this Agreement. There is no outstanding judgment, decree or order of any Governmental Body against or affecting any GMS Entity that (a) as of the date hereof, has the effect of preventing, delaying, making illegal, imposing limitations or conditions on, or otherwise materially interfering with, the transactions contemplated by this Agreement or (b) is, or would reasonably be expected to be, material to the Company and its Subsidiaries, taken as a whole.

 

3.11                        Compliance With Law; Permits.

 

(a)                                 Compliance With Law.  The GMS Entities are in compliance with all applicable Laws, except to the extent any noncompliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Permits.  Each GMS Entity owns, holds or possesses all governmental licenses and permits (collectively, “Permits”) that are required under applicable Laws to entitle

 

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it to own or lease, operate and use its assets and to conduct its operations, as currently conducted, except for any Permit the absence of which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  All such Permits are valid and in full force and effect in all material respects.  Schedule 3.11(b) includes a list of all material Permits other than routine business and occupancy Permits.

 

3.12                        Intellectual Property Rights.

 

(a)                                 Intellectual Property Assets.  For purposes of this Section 3.12, “Intellectual Property Assets” means:

 

(i)                                     all trademarks and service marks which are registered or have applications to register pending that are owned by a GMS Entity, all of which are set forth by GMS Entity on Schedule 3.12(a)(i) (collectively, “Marks”) and, the corporate names of the GMS Entities, and all fictional business names and trading names currently used by any of them, which names are set forth by user on Schedule 3.12(a)(i);

 

(ii)                                  all issued patents and patent applications owned by a GMS Entity, all of which are set forth by GMS Entity on Schedule 3.12(a)(ii) (collectively, “Patents”);

 

(iii)                               all registered copyrights in both published works and unpublished works (including any applications appurtenant thereto) owned by a GMS Entity, all of which are set forth by GMS Entity on Schedule 3.12(a)(iii); and

 

(iv)                              all Internet domain names owned by a GMS Entity, all of which are set forth on Schedule 3.12(a)(iv).

 

(b)                                 Rights in Intellectual Property.

 

(i)                                     In General.  Except as set forth in Schedule 3.12(b)(i), each GMS Entity is the owner of all right, title and interest in its respective Intellectual Property Assets, free and clear of all Encumbrances other than Permitted Encumbrances.  To the Sellers’ Knowledge, none of the Intellectual Property Assets nor the conduct of any of the GMS Entities infringes the intellectual property rights of any third party.  Since January 1, 2009 no GMS Entity has received any written notice from any Person with respect to the Intellectual Property Assets which challenges the validity of any Intellectual Property Asset.  Each GMS Entity has taken commercially reasonable steps to maintain the confidentiality of its trade secrets and, to the Sellers’ Knowledge, has not experienced within the past three (3) years any material misappropriation or public disclosure thereof.  To the Sellers’ Knowledge, no current or former employee, contractor, or independent contractor of the Company has any claim of ownership to any Intellectual Property Assets or any copyrights or trade secrets developed by such person for the GMS Entities.

 

(ii)                                  Patents and Trade Secrets.  No Patent is involved in any interference, reissue or reexamination proceeding.  To Sellers’ Knowledge, no Patent or material trade secret owned by the Company is being infringed by any third party.

 

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(iii)                               Marks.  All Marks that have been registered with the United States Patent and Trademark Office are currently in material compliance with all formal legal requirements (including the timely post-registration filing of affidavits of use and renewal applications).      No Mark is involved in any opposition or cancellation proceeding, and, to Sellers’ Knowledge, no such action is threatened with respect to any of the Marks.  To Sellers’ Knowledge, (A) none of the Marks infringes or is alleged to infringe or dilute any trade name, trademark, or service mark of any third party, and (B) no third party is infringing or diluting or alleged to be infringing or diluting any of the Marks.

 

(iv)                              Intellectual Property Licenses.  One or more GMS Entities is a licensee under the license agreements set forth on Schedule 3.12(b)(iv), which are all of the licenses under which any GMS Entities are a licensee of intellectual property, except for (A) any implied license obtained through the purchase of a product or the conduct of normal business, (B) licenses for commercially available software programs which individually have a value of less than $5,000 per copy, per user, or per device, and less than $100,000 for all instances of the programs, or (C) licenses relating to other immaterial intellectual property rights.  There are no outstanding or threatened disputes with respect to any licenses set forth on Schedule 3.12(b)(iv), excluding routine true-ups and pending purchases which are not the subject of actual or threatened litigation and are within the reasonable scope of applicable procurement budgets. Neither the execution and delivery by the Company of this Agreement, nor the consummation of the transactions contemplated hereby will, pursuant to any license set forth on Schedule 3.12(b)(iv), result in the creation or modification of any licensing right or obligation or change in royalty or other payment right or obligation with respect to the intellectual property owned or used by the GMS Entities.  Except for rights implicitly or expressly granted pursuant to non-exclusive sales representative, distribution or dealer agreements entered into in the normal course of business consistent with past practice or as set forth on Schedule 3.12(b)(iv), no GMS Entity has granted a license to use any Intellectual Property Asset to any third party.

 

(c)                                  Information Technology.       The computers, servers, workstations, routers, hubs, switches, circuits, networks, and other information technology equipment owned or controlled by the GMS Entities (the “Company IT Assets”) have not, to Sellers’ Knowledge, materially malfunctioned or failed within the past three (3) years.  Each GMS Entity has taken reasonable steps consistent with current industry practices, to protect the confidentiality, integrity and security of the Company IT Assets (and all information and transactions stored or contained therein or transmitted thereby) against any unauthorized use, access, interruption, modification or corruption, and, except as set forth on Schedule 3.12(c), to the Seller’s Knowledge, there has been no unauthorized use, access, interruption, modification, or corruption of the Company IT Assets or such information within the past three (3) years.

 

3.13                        Labor Matters.

 

(a)                                 Schedule 3.13(a) sets forth, (i) for the Company (excluding its Subsidiaries), the number of Company Employees as of the date set forth thereon and a list, including job title, of  each such person holding a Company title of Vice President or higher, and (ii) for each of the Company’s Subsidiaries, the name of the General Manager thereof and the number of Company Employees thereof, each as of the date set forth thereon.

 

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(b)                                 To Sellers’ Knowledge, each GMS Entity is in compliance in all material respects with all Laws applicable to it respecting employment and employment practices, terms and conditions of employment and wages and hours.

 

(c)                                  Except as set forth on Schedule 3.13(c), there is no collective bargaining agreement that is binding on any GMS Entity and, to Sellers’ Knowledge, there is no union organizing effort underway, pending or threatened, with respect to the employees of any GMS Entity.

 

(d)                                 No strikes, slowdowns or work stoppages (i) are currently pending, (ii) have any occurred in the past two (2) years, or (iii) to the Seller’s Knowledge are threatened, in each case between any GMS Entity and its respective employees.  To the Sellers’ Knowledge, no GMS Entity is engaged in any unfair labor practices as defined in the National Labor Relations Act and there is no unfair labor practice, charge or complaint against any GMS Entity pending or, threatened, before the National Labor Relations Board or any similar state agency.  To the Seller’s Knowledge, there are no disputes pending or threatened between any GMS Entity and any of their respective employees, directors, consultants or independent contractors, except as set forth on Schedule 3.13(d) or as would not have a Material Adverse Effect.

 

(e)                                  During the last two years, no GMS Entity has effectuated (i) a “plant closing” (as defined in the WARN Act) affecting any site of employment or one or more facilities or operating units within any site of employment or facility of such GMS Entity; or (ii) a “mass layoff” (as defined in the WARN Act) affecting any site of employment or facility of a GMS Entity, except, in either case, in material compliance with the requirements of the WARN Act.

 

(f)                                   No GMS Entity has classified an individual as an “independent contractor” or of similar status who, according to any Employee Benefit Plan or agreement or applicable Law, should have been classified as an employee or of similar status.

 

(g)                                  Except as set forth on Schedule 3.13(g), as of the date hereof no GMS Entity is, with respect to the Company Employees, bound by:

 

(i)                                     any Contract that entitles a Company Employee to receive any salary continuation or severance payment (in excess of the applicable employer’s standard severance policy) or to retain any specified position with a GMS Entity; or

 

(ii)                                  any Contract or written plan that entitles a Company Employee whose annual base salary as of the date hereof is at least $100,000 to a stock purchase, stock option, an incentive bonus or other bonus payment; or

 

(iii)                               any Contract that requires a GMS Entity to make any payment to a Company Employee solely as a result of the transactions contemplated by this Agreement, including any “change in control” provisions or agreements.

 

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3.14                        Employee Related Agreements and Plans; ERISA.

 

(a)                                 List and Types of Plans.  Set forth on Schedule 3.14(a) is an accurate and complete list of all Employee Benefit Plans.  With respect to each Employee Benefit Plan set forth on Part A of Schedule 3.14(a), the Seller has made available to Buyer, true and complete copies of, to the extent applicable: (i) each plan document (or, if not written, a written summary of its material terms) and any proposed amendments; (ii) all summary plan descriptions; (iii) the two most recent annual report (Form 5500 series or equivalent if required under applicable law), including all exhibits and attachments thereto; (iv) the most recent determination or opinion letter, if any, issued by the IRS and any pending request for such a letter; (v) any material correspondence with, and all non-routine filings made with any Governmental Body; and (vi) the most recent audited financial statements and actuarial or other valuation reports prepared with respect thereto.

 

(b)                                 Except as set forth on Schedule 3.14(b), no Employee Benefit Plan is (i) subject to Title IV of ERISA or Section 412 of the Code, (ii) a “multiple employer plan” as described in Section 413(c) of the Code, (iii) a “multiple employer welfare arrangement” as defined in Section (3)(40) of the Code, or (iv) a “multiemployer plan” as defined in Section 4001 of ERISA.  Except as set forth on Schedule 3.14(b), no GMS Entity or any of their ERISA Affiliates has incurred or is reasonably likely to incur any liability under Title IV of ERISA that has not been satisfied in full.  No Employee Benefit Plan provides for post-employment health or life insurance, except as required by COBRA or any similar state law.

 

(c)                                  General Compliance.  Except as set forth on Schedule 3.14(c), each Employee Benefit Plan has been maintained and operated in all material respects consistent with its terms and with the requirements of all applicable Laws.  There are no actions, suits or claims pending as of the date hereof or, to Sellers’ Knowledge, threatened against any Employee Benefit Plan (other than routine claims for benefits).  To Sellers’ Knowledge, as of the date hereof, no GMS Entity has received any written notice that any Employee Benefit Plan is presently the subject of an audit, investigation or examination by any Governmental Body.

 

(d)                                 Tax Qualification.  Each Employee Benefit Plan intended to be qualified under Section 401(a) of the Code and each corresponding trust intended to be tax-exempt under Section 501(a) of the Code is the subject of a favorable determination letter issued by the IRS and, to the Seller’s Knowledge, nothing has occurred that could reasonably be expected to adversely affect such determination.

 

(e)                                  Contributions.  The GMS Entities have made timely payment of all amounts respectively required to be paid by them as contributions or premiums to any Employee Benefit Plan that are due as of the date of this Agreement.

 

(f)                                   Acceleration.  Except as set forth on Schedule 3.14(f), neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby (either alone or upon the occurrence of any additional or subsequent events) will (i) result in any payment becoming due to any current or former employee or director of any GMS Entity, (ii) increase any benefits under any Employee Benefit Plan or (iii) result in the acceleration of

 

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the time of payment, vesting or funding of, or other rights in respect of, any benefits under any Employee Benefit Plan.

 

(g)                                  Transactions.  None of the GMS Entities, nor, to Sellers’ Knowledge, any other Persons who participate in the operation of any Employee Benefit Plan has engaged in any transaction with respect to any Employee Benefit Plan, or breached any applicable fiduciary responsibilities or obligations under Title I of ERISA that would subject any of the GMS Entities to a material tax, penalty or liability for prohibited transactions under the Code or ERISA or breach of any applicable fiduciary obligations under ERISA.

 

(h)                                 280G.  The execution of this Agreement and the consummation of the transactions contemplated hereby will not as of the Closing Date (either alone or upon the occurrence of any additional or subsequent events) constitute an event under any Employee Benefit Plan that will or may result in the payment of any amount that would not be deductible by reason of Section 280G of the Code.  There is no contract to which any GMS Entity is a party or by which it is bound to compensate any employee for excise Taxes paid pursuant to Section 4999 of the Code.

 

(i)                                     409A.  Except as set forth on Schedule 3.14(i), each Employee Benefit Plan that constitutes in any part a nonqualified deferred compensation plan within the meaning of Section 409A of the Code and that is subject to Section 409A of the Code has been operated and maintained in all material respects in operational and documentary compliance with Section 409A of the Code and applicable guidance thereunder during the respective time periods in which such operational or documentary compliance has been required.

 

3.15                        Environmental Matters.  Except as set forth on Schedule 3.15 or as to facts specifically and explicitly disclosed in any Phase I or Phase II Environmental Site Assessment listed on Schedule 3.15(j):

 

(a)                                 Compliance.  Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the GMS Entities have (i) operated the Business in compliance with all applicable Environmental Laws, and (ii) obtained or applied for (and are in compliance with) all Permits required by applicable Environmental Laws (“Environmental Permits”) for the conduct of their business as currently conducted.  All such Environmental Permits are valid and in good standing and will not be adversely affected by the Share Transfer.  Each applicable GMS Entity has timely made all appropriate filings for issuance or renewal of such Environmental Permits.

 

(b)                                 Claims.  There is no pending or, to Seller’s Knowledge, threatened Litigation directed against the Business that pertain to (i) any obligations or liabilities under any applicable Environmental Law; or (ii) violations of any Environmental Law by the Business.

 

(c)                                  Notice.  Since January 1, 2011, no GMS Entity has received written notice that (i) any existing Environmental Permit of a GMS Entity is to be revoked or suspended by any Governmental Body; or (ii) it is currently operating or required to be operating under, or subject to any outstanding compliance order, decree or agreement; any consent decree, order or 

 

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agreement; or any corrective action decree, order or agreement issued or entered into with any Governmental Body and pertaining to matters regulated by, any Environmental Law.

 

(d)                                 Storage Tanks.  To Sellers’ Knowledge, no GMS Entity owns or operates any underground storage tank that is in material violation of any Environmental Law.

 

(e)                                  Listed Properties.  To Sellers’ Knowledge, none of the Owned Real Property and none of the Leased Real Property is listed on the National Priorities List pursuant to CERCLA, or to Sellers’ Knowledge, on an equivalent state list of sites required to be investigated or cleaned up under an Environmental Law.

 

(f)                                   Hazardous Materials.  No GMS Entity, nor any employee or agent of any of them, has, since the date the Company acquired such GMS Entity, treated, stored, disposed of, or released any Hazardous Materials on or under any Owned Real Property or Leased Real Property (or to the Sellers’ Knowledge, any real property formerly owned, leased or operated by a GMS Entity), except in material compliance with Environmental Laws applicable to such property.  There are no Hazardous Materials at, on, about, under or migrating to or from any Owned Real Property or Leased Real Property or, to Seller’s Knowledge, formerly owned, leased or operated by any GMS Entity, or any of their respective predecessors, in each case, that would reasonably be likely to result in material liability or obligations of any GMS Entity pursuant to Environmental Law.

 

(g)                                  Asbestos Actions.                                                Schedule 3.15(g) identifies, (i) to the Sellers’ Knowledge, each Asbestos Action against any GMS Entity (each, a “GMS Asbestos Action”) and, with respect to each such GMS Asbestos Action, to the Sellers’ Knowledge, (A) the last name of any plaintiffs, (B) their alleged exposure dates, (C) the plaintiffs’ prior types of employment, and (D) their alleged medical condition, and (ii) for each pending GMS Asbestos Action, the jurisdiction in which it is pending.  Schedule 3.15(g) also identifies whether the GMS Asbestos Action was dismissed or settled and, if settled, the amounts paid by the Company, any amounts paid by any third parties on the Company’s behalf and the identities of  any such third parties.

 

(h)                                 Asbestos Products.  To the Sellers’ Knowledge, (a) no GMS Entity has ever manufactured any product containing asbestos and, (b) except for joint compound distributed or sold on or prior to January 1, 1979 by any of the GMS Entities listed on Schedule 3.15(h), no GMS Entity has distributed, sold or otherwise placed into commerce any products containing asbestos.

 

(i)                                     Asbestos Insurance.

 

(i)                                     To the Sellers’ Knowledge, Schedule 3.15(i) identifies the insurance policies available to provide coverage with respect to the GMS Asbestos Actions pending against the GMS Entities insured thereby, subject to the liability limits, deductibles or self-insured retentions listed therein.  No such insurer has denied coverage with respect to any claim submitted to it by a GMS Entity with respect to a GMS Asbestos Action.

 

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(ii)                                  To the Sellers’ Knowledge, each of the Asbestos Insurance Policies (A) is valid and enforceable by the GMS Entities, and (B) has not been cancelled or rescinded.

 

(j)                                    Diligence. The Seller has delivered to Purchaser true, correct and complete copies of all final Phase I or Phase II Environmental Site Assessments and any other material environmental reports, audits or assessments prepared for or on behalf of any GMS Entity and (i) listed on Schedule 3.15(j) or (ii) prepared with respect to any Owned Real Property or Leased Real Property since January 1, 2011.

 

3.16                        Bank Accounts.  Schedule 3.16 lists, by GMS Entity, all bank, money market, savings and similar accounts and safe deposit boxes of such GMS Entity, specifying the account numbers and the authorized signatories or persons having access to such accounts or safe deposit boxes.

 

3.17                        Material Contracts.

 

(a)                                 Listing.  Schedule 3.17(a) sets forth a list as of the date hereof of all Contracts of the GMS Entities in the following categories (collectively, the “Material Contracts”):

 

(i)                                     each Contract (A) under which any GMS Entity has created, incurred, assumed or guaranteed any outstanding Debt Obligation (other than to or on behalf of another GMS Entity) or (B) whereby such GMS Entity has an obligation to make an investment in or loan to any Person (other than another GMS Entity);

 

(ii)                                  each Contract pursuant to which a GMS Entity leases any Leased Real Property, any Leased Personal Property, or, without duplication, any Rolling Stock;

 

(iii)                               each Contract that requires any GMS Entity to purchase all of its requirements for any goods or services exclusively from one or more parties (other than another GMS Entity);

 

(iv)                              each Contract with a customer that ranked as one of the top 10 customers of the Business (based on revenue attributable to such customer) during the fiscal year ended April 30, 2013;

 

(v)                                 each Contract that commits any GMS Entity to sell a minimum of $150,000 of goods and/or services on an annual basis or to provide a customer the best price or terms (i.e., most favored nation) with respect to any product or product line;

 

(vi)                              each Contract that commits any GMS Entity to purchase a minimum of $150,000 of goods and/or services on an annual basis;

 

(vii)                           each Contract containing covenants materially restricting or limiting the freedom of any GMS Entity to engage in any line of business, other than sales agency or distributor agreements which limit the territorial rights of a GMS Entity with respect to specific products or product lines;

 

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(viii)                        each Contract  entered into outside the ordinary course of business that cannot be terminated on three (3) months’ or less notice without penalty;

 

(ix)                              each Contract required to be set forth on Schedule 3.12(b)(iv);

 

(x)                                 each Contract that relates to the sale of any GMS Entity’s assets, other than in the ordinary course of business, for consideration in excess of $150,000;

 

(xi)                              each Contract with a supplier that ranked as one of the top 10 suppliers of the Business (based on the aggregate amount paid to such supplier) during the fiscal year ended April 30, 2013;

 

(xii)                           each Contract that provides for any joint venture, partnership or similar arrangement between any GMS Entity and another Person that is not a GMS Entity;

 

(xiii)                        each Contract that obligates the GMS Entity with respect to an “earn-out” or other contingent payments of any type;

 

(xiv)                       each Contract that provides for indemnification of managers, partners, directors or officers of any GMS Entity;

 

(xv)                          each Contract that relates to the acquisition since January 1, 2011, of any business, or of a material amount of assets or equity of any Person or any real property, in each case, involving amounts in excess of $500,000 and not in the ordinary course of business; and

 

(xvi)                       each Minority Shareholder Agreement.

 

(b)                                 Status.  Except as set forth on Schedule 3.17(b):

 

(i)                                     each such Material Contract is (A) a valid and binding obligation of each GMS Entity that is a party to such Material Contract subject to the Enforceability Exceptions and (B) to Sellers’ Knowledge, a valid and binding obligation of each other party thereto; and

 

(ii)                                  (A) no GMS Entity that is a party to such Material Contract is in material breach thereof or material default thereunder (and to Sellers’ Knowledge no event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default) and (B) to Sellers’ Knowledge, no other party to any such Material Contract is in material breach thereof or material default thereunder.

 

3.18                        Brokers.  Except as set forth on Schedule 3.18, neither the Sellers nor the Company have any liability or obligation to, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement for any fee or commission in connection therewith.  Sellers are solely responsible for any payment, fee or commission that may be due to the parties listed on Schedule 3.18 in connection with the transactions contemplated hereby.

 

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3.19                        Insurance.

 

(a)                                 Policies.  Schedule 3.19(a) sets forth a list of the material policies of insurance currently maintained with respect to the products, properties, assets and operations of the GMS Entities as a group or individually (including, in either case, any policies of insurance maintained for purposes of providing benefits such as workers’ compensation and employers’ liability coverage). All such policies are in full force and effect.  All premiums due on such policies have been paid, and no written notice of cancellation or termination or intent to cancel has been received by the Company with respect to any of such policies.

 

(b)                                 Claims.  The Company has made available to Buyer true and complete copies of insurance provider loss-run reports that include all pending claims (including with respect to insurance obtained but not currently maintained) and the claims history for the Business since January 1, 2011 (including with respect to insurance obtained but not currently maintained) and for which the relevant insurance carrier has reserved $100,000 or more in respect of such claim

 

3.20                        Related Party Transactions.  Except as set forth on Schedule 3.20, there are no Contracts or arrangements between a GMS Entity, on the one hand, and a Related Party Group, on the other hand, and no Related Party Group owns, directly or indirectly, in whole or in part, any property or asset which any GMS Entity uses or in which any GMS Entity has rights.

 

3.21                        Suppliers.   Schedule 3.21 sets forth (i) the Company’s ten largest suppliers, by dollar volume, for the twelve-month period ended December 31, 2013.  Except as set forth on Schedule 3.21, as of the date hereof, none of such suppliers has ceased, or to the Sellers’ Knowledge intends to cease, to supply goods or services to any GMS Entity or has notified the Company or any of its Subsidiaries that it otherwise intends to terminate or materially reduce its relationship with any GMS Entity.

 

3.22                        Disclaimer of Company Warranties.  EXCEPT AS TO THOSE MATTERS EXPRESSLY COVERED BY THE REPRESENTATIONS AND WARRANTIES IN THIS ARTICLE III, THE COMPANY DISCLAIMS ALL OTHER WARRANTIES AND REPRESENTATIONS, WHETHER EXPRESS OR IMPLIED.

 

ARTICLE IV
 REPRESENTATIONS AND WARRANTIES OF EACH SELLER GROUP

 

Each Seller, jointly and severally with the other members of the Seller Group of which such Seller is a member, represents and warrants to Buyer as to members of such Seller Group only, and not as to any other Seller, that except as set forth on the Disclosure Schedules attached to this Agreement:

 

4.1                               Authorization; Enforceability.  For Sellers other than natural persons, such Seller is an entity duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization, has the necessary limited liability company or trust power and authority to own and operate its assets and properties, to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  For Sellers that are natural persons, such Seller has the legal right, capacity and authority to

 

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execute and deliver this Agreement and to perform his obligations hereunder and to consummate the transactions contemplated hereby.  The execution, delivery and performance of this Agreement by such Seller and the consummation of the transactions contemplated hereby have been duly authorized by all required action on the part of such Seller and no further action to authorize execution, delivery and performance of this Agreement is required on the part of such Seller.  This Agreement has been duly executed and delivered by, and constitutes the legal, valid and binding obligation of such Seller, enforceable against it in accordance with its terms, except as such enforceability may be limited by the Enforceability Exceptions.

 

4.2                               Share Ownership.  Such Seller is the record and beneficial owner of the number of Shares as set forth next to such Seller’s name on Schedule 3.3(a). Such Seller has, and at the Closing will have, good and marketable title to such Shares. Such Shares will be transferred to Buyer at Closing free and clear of any Encumbrances, except for such Encumbrances arising as a result of any action by Buyer, its Affiliates or their respective representatives, or arising under federal and state securities laws.

 

4.3                               No Violation of Laws or Agreements; Consents.  Neither the execution and delivery by such Seller of this Agreement, the consummation of the transactions contemplated hereby, nor the compliance with or fulfillment of the terms, conditions or provisions hereof by such Seller (a) violates any provision of the Governing Documents of any such Seller that is not a natural person, (b) creates any Encumbrance on the Shares, (c) conflicts with, breaches, constitutes a default or an event of default under any of the terms of, results in the termination of, accelerates the maturity of, or creates any Encumbrance on any asset or property of a GMS Entity under, any Contract (other than the Shareholders Agreement to be terminated pursuant to Section 6.14), (d) violates any Law to which such Seller is subject or by which his or its Shares are bound or affected, or (e) except as otherwise contemplated by this Agreement, otherwise requires consents, approvals, authorizations, registrations or filings by, or with, a Governmental Body.

 

4.4                               No Pending Litigation or Proceedings.  To the knowledge of such Seller, no Litigation is pending or threatened against such Seller that challenges, or could have the effect of preventing, delaying, making illegal, imposing limitations or conditions on, or otherwise interfering with, the transactions contemplated by this Agreement. As of the date hereof, there is no outstanding judgment, decree or order of any Governmental Body against or affecting such Seller that has the effect of preventing, delaying, making illegal, imposing limitations or conditions on, or otherwise materially interfering with, the transactions contemplated by this Agreement.

 

4.5                               Related Party Transactions.  Except as disclosed on Schedule 4.5, such Seller and each Related Party affiliated with such Seller (a) is not a party to any Contract of any kind whatsoever with any GMS Entity; and (b) does not own, directly or indirectly, in whole or in part, any property or asset which any GMS Entity uses or in which any GMS Entity has rights. Notwithstanding the foregoing, no disclosure is required by clause (a) of the preceding sentence as to (i) ordinary course compensation arrangements for services as an officer, director or employee of the GMS Entities, (ii) reimbursement of expenses incurred in the ordinary course of business in accordance with the applicable policies of the GMS Entities or (iii) rights under any Employee Benefit Plan listed on Schedule 3.14(a).

 

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4.6                               Disclaimer of Seller Warranties.  EXCEPT AS TO THOSE MATTERS EXPRESSLY COVERED BY THE REPRESENTATIONS AND WARRANTIES IN THIS ARTICLE IV (WHICH, FOR AVOIDANCE OF DOUBT, ARE MADE JOINTLY AND SEVERALLY BY SUCH SELLER ONLY AS TO OTHER MEMBERS OF SUCH SELLER’S SELLER GROUP), THE SELLERS DISCLAIM ALL OTHER WARRANTIES, AND REPRESENTATIONS, WHETHER EXPRESS OR IMPLIED. FOR THE AVOIDANCE OF DOUBT, THIS SECTION 4.6 SHALL NOT RELIEVE SELLERS OF ANY OBLIGATION OF SELLERS UNDER THIS AGREEMENT IN RESPECT OF THE REPRESENTATIONS AND WARRANTIES OF THE COMPANY IN ARTICLE III, INCLUDING THE INDEMNIFICATION OBLIGATIONS THEREFOR PURSUANT TO ARTICLE IX.

 

ARTICLE V
 REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants to the Sellers as follows:

 

5.1                               Organization.  Buyer is a corporation validly existing and in good standing under the Laws of the state of Delaware and has the corporate power and authority to own, operate or lease its properties, carry on its business, enter into this Agreement and perform its obligations hereunder.  Buyer is a wholly-owned subsidiary of GYP Holdings II Corp., a Delaware corporation, which is a wholly-owned subsidiary of Holdco.

 

5.2                               Authorization; Enforceability.  This Agreement has been duly executed and delivered by and constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as such enforceability may be limited by the Enforceability Exceptions.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate proceedings on the part of Buyer.

 

5.3                               No Violation of Laws; Consents.  Neither the execution and delivery by Buyer of this Agreement, the consummation of the transactions contemplated hereby nor the compliance with or fulfillment of the terms, conditions or provisions hereof by Buyer will:  (i) violate any provision of the Governing Documents of Buyer, or (ii) subject to the making of any filings required under the HSR Act, violate any Law to which Buyer is subject or by which any asset of Buyer may be bound or affected, or otherwise require consents, approvals, authorizations, registrations or filings by, or with, a Governmental Body the result of which or the failure to obtain of which would, individually or in the aggregate, have a material adverse effect on the ability of Buyer to consummate the transactions contemplated by this Agreement.

 

5.4                               No Pending Litigation or Proceedings.  To the knowledge of Buyer, no Litigation is pending or threatened against Buyer that challenges, or would reasonably be expected to have the effect of preventing, materially delaying, or making illegal the transactions contemplated by this Agreement. As of the date hereof, there is no outstanding judgment, decree or order of any Governmental Body against or affecting Buyer in connection with the transactions contemplated by this Agreement.

 

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5.5                               Brokers.  Except as set forth on Schedule 5.5, neither Buyer nor any of its Affiliates has employed, nor is any of them subject to any valid claim of liability or obligation to, any broker, finder, consultant or other intermediary in connection with the transactions contemplated by this Agreement who might be entitled to a fee or commission in connection therewith.  Buyer is solely responsible for any payment, fee or commission that may be due to the parties listed on Schedule 5.5 in connection with the transactions contemplated hereby.

 

5.6                               Investment.  Buyer is purchasing the Shares for investment for its own account, and not with a view to, or for the offer or sale in connection with, any distribution thereof.  Buyer acknowledges that the Shares have not been registered under the Securities Act, or any state securities Laws and that the Shares may not be transferred or sold except pursuant to the registration provisions of the Securities Act and any applicable state securities Laws or pursuant to an applicable exemption therefrom.

 

5.7                               Financial Ability.

 

(a)                                 Schedule 5.7 sets forth true, accurate and complete copies of (i) executed debt financing commitment letters and related fee letters (certain terms of which not affecting conditionality may be redacted) (collectively, the “Debt Commitment Letters”), pursuant to which, and subject to the terms and conditions thereof, the lender parties thereto have committed to lend the amounts set forth therein for the purpose of funding the transactions contemplated by this Agreement (the “Debt Financing”), and (ii) an executed equity commitment letter (the “Equity Commitment Letter”), pursuant to which, and subject to the terms and conditions thereof, AEA Investors Fund V LP, a Cayman Islands exempted limited partnership (“Sponsor”), has committed  subject to the terms and conditions thereof to contribute cash to Buyer in the aggregate amount set forth therein for the purpose of funding the transactions contemplated by this Agreement (the “Equity Financing”).

 

(b)                                 As of the date hereof, each of the Commitment Letters, in the form so delivered, is in full force and effect, has not been withdrawn or terminated or otherwise amended or modified in any respect and is a legal, valid and binding obligation of Buyer and, to Buyer’s knowledge, the other parties thereto enforceable in accordance with their terms, except as may be limited by the Enforceability Exceptions. Except as expressly set forth in the Commitment Letters, there are no (i) conditions precedent to the respective obligations of the parties that provided the Commitment Letters to fund the full amount of the Debt Financing and Equity Financing, as applicable; or (ii) contractual contingencies under any agreements, side letters or arrangements relating to the Commitment Letters to which Buyer or any of its Affiliates is a party that would permit the parties providing the Commitment Letters or otherwise participating in the Financing to reduce the total amount of the Equity Financing or Debt Financing, as applicable (other than (i) retranching or reallocating the Debt Financing in a manner that does not reduce the aggregate amount of the Debt Financing and (ii) as such amount may be modified by any “market flex” provisions or similar provisions affecting structure, pricing, maturity, amortization or any other terms), or that would materially affect the availability of the Debt Financing or the Equity Financing. As of the date hereof to the Buyer’s knowledge, (A) no event has occurred which, with or without notice, lapse of time or both, would constitute a default or breach on the part of Buyer under any term or condition of the Commitment Letters, and (B) subject to the satisfaction of the conditions set forth in ARTICLE VII hereof, Buyer has no

 

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reason to believe that it will be unable to satisfy on a timely basis any term or condition of closing to be satisfied by it contained in the Commitment Letters.  Buyer has fully paid any and all commitment fees or other fees required by the Commitment Letters to be paid on or before the date of this Agreement. Subject to the terms and conditions of this Agreement and as of the date hereof, assuming the funding of the Financing in accordance with the terms and conditions of the Commitment Letters, the aggregate proceeds from the Financing, together with cash on hand, lines of credit and all other funds available to Buyer are sufficient for Buyer to fulfill its obligations under this Agreement, including payment of the Purchase Price and all associated costs and expenses of the Buyer required to be satisfied at the Closing.

 

(c)                                  The Buyer is not, as of the date hereof, aware of any fact, occurrence or condition that makes any of the assumptions or statements set forth in the Commitment Letters inaccurate or that would cause the commitments provided in such Commitment Letters to be terminated or ineffective or any of the conditions contained therein not to be met.

 

5.8                               Independent Evaluation.  Buyer acknowledges that it has conducted to its satisfaction an independent investigation and verification of the financial condition, results of operations, assets, liabilities, properties and projected operations of the Company, and, in making its determination to proceed with the transactions contemplated by this Agreement, Buyer has relied on the results of its own independent investigation and verification and the representations and warranties of the Company and the Sellers expressly and specifically set forth in ARTICLE III and ARTICLE IV of this Agreement, including the Disclosure Schedules (and any updates thereto) and the certificates and documents delivered to Buyer in connection with the transactions contemplated hereby.  BUYER UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT (A) THE REPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE III AND ARTICLE IV, OR IN ANY CERTIFICATE DELIVERED TO BUYER BY OR ON BEHALF OF THE SELLERS OR THE COMPANY AT THE CLOSING, CONSTITUTE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES OF, RESPECTIVELY, THE COMPANY AND THE SELLERS IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, (B) THE COMPANY AND SELLERS SPECIFICALLY DISCLAIM ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE, EXPRESSED OR IMPLIED (INCLUDING ANY RELATING TO THE FUTURE OR HISTORICAL FINANCIAL CONDITION, RESULTS OF OPERATIONS, ASSETS OR LIABILITIES OF THE COMPANY, AND ANY THAT MAY BE SET FORTH IN THE CONFIDENTIAL INFORMATION MEMORANDUM PREVIOUSLY DELIVERED TO BUYER, CONTAINED IN THE DATA ROOM OR IN ANY MANAGEMENT PRESENTATIONS), AND (C) NEITHER THE SELLERS NOR ANY GMS ENTITY WILL HAVE OR BE SUBJECT TO ANY LIABILITY TO BUYER OR ANY OTHER PERSON RESULTING FROM THE DISTRIBUTION TO THE BUYER, OR THE BUYER’S USE OF ANY SUCH INFORMATION, INCLUDING SUCH CONFIDENTIAL INFORMATION MEMORANDUM AND ANY INFORMATION, DOCUMENT OR MATERIAL MADE AVAILABLE TO THE BUYER IN THE DATA ROOM, OR PROVIDED IN ANY MANAGEMENT PRESENTATIONS OR IN ANY OTHER FORM IN EXPECTATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

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ARTICLE VI
 ACTIONS PRIOR TO CLOSING DATE

 

6.1                               Access to Information.  Between the date hereof and the Closing Date the Company shall, and shall cause the other GMS Entities to, permit the officers, employees and authorized representatives of Buyer (including Committed Financing Parties, investment bankers, independent public accountants and attorneys) to have reasonable access during normal business hours, upon reasonable advance notice, to the offices, properties and senior managers of the Company and the Business and the business and financial records of the GMS Entities (excluding information the Company deems to be trade secrets or otherwise competitively sensitive), to the extent Buyer shall reasonably deem necessary or desirable in connection with the transactions contemplated hereby, and shall furnish to Buyer or its authorized representatives such additional information concerning the Company and the Business as shall be reasonably requested; provided, however, that:

 

(i)                                     the Company shall not be required to violate any obligation of confidentiality to which it or any of its Affiliates is subject in discharging its obligations pursuant to this Section 6.1; and

 

(ii)                                  such investigation shall be conducted in such a manner as not to interfere unreasonably with the operations of any GMS Entity.

 

6.2                               Notice of Certain Events.

 

(a)                                 From time to time prior to the Closing, the Company shall have the right (but not the obligation) to supplement or amend the Disclosure Schedules hereto solely with respect to any matter first existing or occurring after the date hereof (each a “Schedule Supplement”), which if existing or occurring at or prior to the date hereof, would have been required to be set forth in such Disclosure Schedule.  No such Schedule Supplement shall have any effect on the determination as to whether the conditions to the Closing set forth in Section 7.1(a) have been satisfied, provided, however, that if the Closing occurs, such Schedule Supplement shall be deemed to have modified the applicable Disclosure Schedules and cured the inaccuracy or breach of the representations and warranties to which such Schedule Supplement relates for purposes of the Parties’ rights and obligations under Article IX.

 

(b)                                 Each Party shall promptly notify the other Parties of any action, suit, proceeding or investigation that shall be instituted or threatened against such Party to restrain, prohibit or otherwise challenge the legality of any transaction contemplated by this Agreement.  Each Party shall promptly notify the other of any action, suit, proceeding or investigation that may be threatened or asserted in writing, brought or commenced against the Company, Sellers or Buyer, as the case may be, that would have been required to be disclosed under Section 3.10 or Section 5.4, as the case may be, if such action, suit, proceeding or investigation had arisen prior to the date hereof.

 

6.3                               Consents of Third Parties.

 

(a)                                 Contracts.  The Parties shall use commercially reasonable efforts to secure, before the Closing Date, in form and substance reasonably satisfactory to the Parties, the

 

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consent required to be obtained with respect to the Contracts identified on Schedule 6.3(a), as well as any consent, approval or waiver required to be obtained from any Person with respect to any Contract to which any GMS Entity is a party and for which the failure to so secure would reasonably be likely to have a material adverse effect on the Company.  If any such consent, approval or waiver cannot be obtained, Sellers shall cooperate in any commercially reasonable arrangement designed to obtain for Buyer the material benefits, privileges and obligations of the applicable Contract.  Notwithstanding any other provision of this Section to the contrary, no Party shall have any obligation to offer or pay any consideration in order to obtain any such consent, approval or waiver.

 

(b)                                 Permits.  The Parties shall use commercially reasonable efforts to secure, in form and substance reasonably satisfactory to the Parties, those consents, approvals, waivers and new Permits required to be obtained from, and those filings required to be made with, any Governmental Body, including those identified on Schedule 6.3(b).  Buyer shall pay any filing fees and other fees required to be paid in connection with any such consent, approval, waiver or filing.

 

6.4                               Filings Under the HSR Act and Other Antitrust Laws.

 

(a)                                 General.  The Parties acknowledge that the transactions contemplated by this Agreement may require filings with the FTC and the Antitrust Division under the HSR Act.

 

(b)                                 Consents; Approvals.

 

(i)                                     Each of the Parties shall, as promptly as practicable (but in no event later than five (5) Business Days following the date hereof, (i) file with the FTC and the Antitrust Division the premerger notification and report form, if any, required as a result of the transactions contemplated hereby, and shall provide any supplemental information requested in connection therewith pursuant to the HSR Act, and (ii) make such other filings as are necessary or advisable in other jurisdictions in order to comply with all applicable Laws relating to competition, merger control or antitrust and shall as promptly as reasonably practicable provide any supplemental information requested by any applicable Governmental Body relating thereto. Any such filing, notification and report form and supplemental information shall be in substantial compliance with the requirements of the HSR Act or such other applicable Laws, in each case so that the waiting period applicable to this Agreement and the transactions contemplated hereby shall expire as soon as practicable after the execution and delivery of this Agreement. The parties shall work together and shall furnish to one another such necessary information and reasonable assistance as the other may request in connection with its preparation of any filing or submission which is necessary under the HSR Act or such other applicable Law. Subject to applicable Law, the parties shall keep one another apprised of the status of any communications with, and any inquiries or requests for additional information from, the FTC, the DOJ or any other applicable Governmental Body and shall comply as promptly as reasonably practicable with any such inquiry or request.

 

(ii)                                  The Parties shall each use their reasonable best efforts to obtain, and shall cooperate with each other in order to obtain, any clearance required under the HSR Act or such other applicable Laws for the other transactions contemplated hereby, including (i) to

 

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secure the expiration or termination of any applicable waiting period under the HSR Act; (ii) to resolve any objections asserted with respect to the transactions contemplated hereby raised by any Governmental Body; and (iii) to prevent the entry of, and to have vacated, lifted, reversed or overturned, any decree, judgment, injunction or other order that would prevent, prohibit, restrict or delay the Closing.  For purposes of this Section 6.4(b), “reasonable best efforts” shall include (A) executing settlements, undertakings, consent decrees, stipulations or other agreements; (B) selling, divesting or otherwise conveying any particular assets or categories of assets or businesses of Buyer or its Affiliates; (C) agreeing to sell, divest or otherwise convey any particular assets or categories of assets or businesses of the Company contemporaneously with or subsequent to the Closing; and (D) permitting the Company to sell, divest or otherwise convey any particular assets or categories of assets or businesses of the Company prior to the Closing.  In the event that the Company shall (or shall agree at Closing to) sell, divest or otherwise convey any particular asset or categories of assets in connection with complying with this Section 6.4, the Parties agree to negotiate in good faith an amendment to this Agreement setting forth an appropriate adjustment to the Purchase Price so that such actions, including any Tax effect therefrom, have a neutral effect on the consideration paid by Buyer and the net consideration received by the Sellers at Closing when compared to the Purchase Price set forth in this Agreement as of the date hereof.

 

6.5                               Operations Prior to Closing Date.

 

(a)                                 Prohibitions.  From and after the date of this Agreement until the Closing Date, the Company shall, and shall cause the other GMS Entities to (A) operate the Business in material compliance with all Laws and in the ordinary course in accordance with past practices, and (B) use commercially reasonable efforts to (1) preserve the present business operations, organization and goodwill of the GMS Entities and the Business, and (2) preserve the present relationships with customers and suppliers of the GMS Entities.  Notwithstanding the generality of the foregoing, except (x) as set forth on Schedule 6.5, (y) as otherwise contemplated or permitted by this Agreement or (z) with the prior written consent of Buyer (which consent will not be unreasonably withheld, conditioned or delayed), from and after the date of this Agreement until the Closing Date, the Company shall, and shall cause the other GMS Entities to:

 

(i)                                     not grant any bonus (including any transaction related or retention bonuses) to any employee, agree to any severance agreement or arrangement or implement any material increase in the rates of salaries or compensation of Company Employees, except in accordance with any Contracts in effect on the date hereof or regularly scheduled periodic increases and bonuses, consistent with prior practices;

 

(ii)                                  not institute any material increase in any benefits available under any Employee Benefit Plan with respect to any Company Employee, except as may be required to comply with Law or with Contracts in effect as of the date hereof and except in connection with modifications made to any Employee Benefit Plan in a manner consistent with past practices;

 

(iii)                               not (A) amend (or waive any provision of) the Governing Documents of any GMS Entity or any Minority Shareholder Agreement, (B) enter into any merger, consolidation, restructuring, recapitalization, reorganization, or share exchange

 

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agreement, (C) create any Subsidiaries, (D) file a petition in bankruptcy under any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar Law, or (E) adopt resolutions providing therefor;

 

(iv)                              not sell, pledge, dispose of or create an Encumbrance on any assets of the GMS Entities, except for (A) Permitted Encumbrances, (B) sales of inventory in the ordinary course of business and in a manner consistent with past practices, (C) sales or dispositions of other assets in the ordinary course of business not in excess of $100,000 individually or $500,000 in the aggregate, and (D) transfers to another GMS Entity;

 

(v)                                 not terminate or modify in a material way (unless required to do so by a lender or other third party) the Company’s current arrangement of automatically applying cash proceeds of accounts receivable to reduce the outstanding balance of the Company’s line of credit;

 

(vi)                              not (A) issue, sell, split, combine, reclassify, pledge, dispose of or encumber, or authorize the issuance, sale, pledge, disposition or encumbrance of, any shares of capital stock of any class, or any options, warrants, convertible securities or other rights of any kind to acquire, any shares of capital stock, or any other ownership interest in any GMS Entity; (B) repurchase, redeem or otherwise acquire, or enter into any Contract to acquire, any securities of any GMS Entity; or (C) adopt a plan of complete or partial liquidation or dissolution of any GMS Entity or resolutions providing for or authorizing a liquidation or dissolution of any GMS Entity;

 

(vii)                           not take any action to change accounting policies or procedures (including procedures with respect to revenue recognition, payments of accounts payable and collection of accounts receivable) except as required by a change in GAAP;

 

(viii)                        not declare or pay any dividend or make any other payment or distribution on or in respect of any outstanding capital stock of any GMS Entity other than dividends that are paid in full by the relevant GMS Entity prior to the Closing;

 

(ix)                              not make any equity investment (including by way of merger, consolidation or acquisition) in any other Person;

 

(x)                                 except in the ordinary course of business, not amend, renew, terminate, execute, cancel, waive, fail to renew, release or relinquish in any respect, any Material Contract or enter into any new Contract that would have been a Material Contract if it had existed on the date hereof;

 

(xi)                              not settle or compromise any asbestos Litigation, or any other material Litigation;

 

(xii)                           fail to make any capital expenditures which are included in the GMS Entities’ capital expenditure budgets provided to Buyer prior to the date hereof;

 

(xiii)                        not make, revoke or change any Tax election or method of Tax accounting, file an amended Tax Return or a claim for refund of  Taxes, enter into any ruling

 

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request, closing agreement, or similar agreement with respect to Taxes, settle or compromise any liability with respect to Taxes, consent to any claim or assessment relating to Taxes, or waive the statute of limitations for any such claim or assessment, provided, that the restrictions in this clause do not apply to (A) the Internal Revenue Service income tax audits identified on Schedule 6.5(a) unless the total amount of proposed adjustments to taxable income exceeds $1,500,000, (B) each of the other pending audits identified on Schedule 6.5(a) unless the amount of the Tax deficiency or underpayment involved in such audit exceeds $50,000, or (C) the amended returns identified on Schedule 6.5(a) to the extent such amendments reflect adjustments arising pursuant to audits described in clause (A) or clause (B); and

 

(xiv)                       not enter into any Contract with any Related Party, or modify any such Contract in a manner detrimental to the GMS Entities.

 

(b)                                 No Agreements.  Neither the Company nor any other GMS Entity shall enter into any agreement to do any of the actions prohibited by Section 6.5(a).

 

(c)                                  Exception for Certain Dispositions.

 

(i)                                     Notwithstanding anything to the contrary in this Agreement, including the foregoing subsections (a) and (b), the Sellers and the GMS Entities shall be permitted, between the date of this Agreement and the Closing Date, to market for sale, directly or through one or more representatives and in one or more transactions, those properties set forth on Schedule 6.5(c) (including the real property and all improvements thereon), which are no longer used in the Business (the “Excess Properties”).  Such efforts may include listing the Excess Properties for sale, permitting their inspection, negotiating and entering into a sales agreement (which agreement shall be reasonably acceptable to Buyer other than with respect to price), and consummating the sale thereof.  Following the Closing, through the second anniversary thereof, the Buyer shall cause the GMS Entities to use commercially reasonable efforts (i) to continue to market for sale those Excess Properties for which, as of the Closing, the GMS Entity owning such Excess Property has not entered into a sales contract therefor, and (ii) to consummate the sale of each Excess Property that is the subject of a definitive sales contract (which agreement shall be reasonably acceptable to Buyer other than with respect to price) that has not been consummated as of the Closing Date.

 

(ii)                                  Following the sale of any Excess Property, the Buyer shall cause the GMS Entities to pay the Sellers their Pro Rata Share of any Excess Property Proceeds, provided, however, that if such Excess Property was owned by a Subsidiary which, as of the date hereof, has one or more shareholders other than the Company, Buyer shall cause the applicable GMS Entity to (A) pay to such other shareholders their respective pro rata share of the applicable Excess Property Proceeds (based upon their relative ownership percentages of the applicable GMS Entity as of the date hereof), and (B) reduce the aggregate amount of Excess Property Proceeds otherwise payable to Sellers in respect of such Excess Property by the total amount due to such other shareholders pursuant to clause (A).  The Buyer shall cause the applicable GMS Entity to pay such amounts to the Sellers and, if applicable, the other shareholders, within ten (10) Business Days of the date such proceeds are received by such GMS Entity.

 

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(iii)                               Upon Sellers’ request following the second anniversary of the Closing, Buyer shall cause the Company to provide reasonable cooperation in transferring to the Sellers or their designee any Excess Property that has not been sold as of such time, provided such transfer is structured in a way that does not cause any adverse tax consequences to the GMS Entities other than those for which the Sellers reimburse the Buyer.  Notwithstanding anything to the contrary in this Agreement, the Sellers shall protect and hold Buyer, the GMS Entities and their respective Affiliates harmless from all liabilities related to or arising from the ownership of such Excess Property or the sale or transfer thereof.  All amounts paid pursuant to this Section 6.5(c) shall be treated by the Parties as an adjustment to the Purchase Price, except as otherwise required by applicable Law.

 

(d)                                 Senior Management Accrued Bonus.  On or prior to the day immediately preceding the Closing Date, the Company shall, and the Sellers shall cause the Company to, pay in full all accrued bonuses for each of the senior executives identified on Schedule 6.5(d), if any.

 

6.6                               Environmental Due Diligence.

 

(a)                                 Between the date of this Agreement and the Closing Date, the Company shall, and shall cause the other GMS Entities to, grant to the authorized representatives and agents of Buyer or the Committed Financing Sources reasonable access to the Owned Real Property and Leased Real Property and records relating to the Owned Real Property and Leased Real Property for purposes of conducting such non-invasive Phase I environmental assessments as Buyer reasonably deems necessary (together with the environmental assessments, if any, permitted by Section 6.6(a), the “Environmental Due Diligence”).  Buyer shall be responsible for all costs and expenses of such Environmental Due Diligence.

 

(b)                                 Notwithstanding anything to the contrary in this Agreement, Buyer shall not conduct any Phase II or other form of invasive environmental site assessment on any portion of the Owned Real Property or Leased Real Property without the prior written consent of the Company.  Buyer shall cause, at its sole expense, any investigation-derived waste generated or created in connection with the performance of the Environmental Due Diligence to be disposed of in compliance with applicable Environmental Laws, and any wells or borings installed during the Environmental Due Diligence to be plugged and abandoned.  Buyer shall be responsible for executing on its own behalf all manifests, shipping documents, plugging and abandoning reports and similar documents in connection with its obligations hereunder.  Buyer agrees to indemnify and hold Sellers and each GMS Entity harmless from and against any and all liabilities and causes of action arising out of the conduct of any Phase II or other form of invasive environmental site assessment by Buyer or its representatives or agents pursuant to this Section 6.6(b).

 

6.7                               Negotiations.  Until the Closing or until this Agreement is terminated, the Sellers shall not, and shall cause the GMS Entities not to, directly or indirectly, (i) solicit, initiate, agree to enter, or enter into any proposal, inquiry, offer, discussions or negotiations with respect to any material portion of the assets of the Company and its Subsidiaries, any merger or consolidation with or involving the Company or any of its Subsidiaries, or any other similar transaction or business combination involving the Company, its Subsidiaries or the Business (an “Acquisition

 

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Proposal”), or (ii) participate in any negotiations or discussions regarding, or furnish or cause to be furnished any information concerning, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage any effort or attempt by any other Person to effect or seek an Acquisition Proposal in connection with any proposed acquisition by any Person other than Buyer.

 

6.8                               Financing.

 

(a)                                 Buyer acknowledges and agrees that its obligations under this Agreement are not subject to any financing condition, and that nothing in this Section 6.8 shall be construed to suggest otherwise.

 

(b)                                 Buyer acknowledges that it together with the assistance to be provided by the Company and its Subsidiaries pursuant to clause (e) below, shall be fully responsible for and will use its reasonable best efforts to fully satisfy, on a timely basis, all terms, conditions, representations and warranties set forth in the Debt Commitment Letters.  As soon as practicable after the date hereof but in any event at or prior to the Closing, Buyer will enter into definitive agreements with respect to the financings contemplated by the Commitment Letters on terms and conditions substantially in accordance with the Commitment Letters.

 

(c)                                  Buyer shall keep the Company reasonably informed with respect to all material modifications and amendments to the Commitment Papers and shall give the Sellers prompt notice of any matters that could make it materially less likely for the Financing to occur on the Closing Date.  Without limiting the foregoing, Buyer agrees to notify the Sellers promptly, and in any event within two (2) Business Days, if at any time prior to the Closing Date (i) any Commitment Letter shall expire or be terminated for any reason, (ii) any Committed Financing Source that is a party to any Commitment Letter notifies Buyer that such source no longer intends to provide financing to Buyer on the terms set forth therein, or (iii) for any reason Buyer no longer believes in good faith that they will be able to obtain all or any portion of the Financing on substantially the terms described in the Commitment Letters.  Buyer shall not, and shall not permit any of their Affiliates to, without the prior written consent of the Company, take any action or enter into any transaction, including any merger, acquisition, joint venture, disposition, lease, contract or debt or equity financing, that could reasonably be expected to materially impair, delay beyond the End Date or prevent Buyer’s obtaining of the Financing or any portion thereof.  Buyer shall not amend or alter, or agree to amend or alter, any Commitment Letter in any manner that would materially impair, delay beyond the End Date or prevent the transactions contemplated by this Agreement without the prior written consent of the Company (except to (x) increase the amount of indebtedness available thereunder, replace one or more facilities with one or more new facilities or reallocate amounts of indebtedness among the facilities, in each case, so long as the representation in Section 5.7 remains true and correct, (y) amend, supplement, modify or waive conditions to funding and other terms of the Financing, so long as no such amendment, supplement, modification or waiver adversely impacts the ability of the Buyer to timely consummate the transactions contemplated hereby or (z) replace the Financing with the Alternative Financing, correct typographical errors, provide for the assignment of a portion of the commitments under the Debt Commitment Letter to add agents or arrangers or to reallocate commitments or assign or reassign titles or roles to, or between or among, any entities party thereto).

 

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(d)                                 If any Debt Commitment Letter shall be terminated or modified in a manner materially adverse to Buyer for any reason, Buyer shall use its reasonable best efforts to obtain, and, if obtained, will provide the Sellers with a copy of, a new financing commitment that provides for an amount sufficient to consummate the transactions contemplated hereby; provided that the terms of such financing (including with respect to pricing, “flex”, term and other terms) shall not be less favorable, in the aggregate, to the Buyer than those included in such original Debt Commitment Letter (the “Alternative Financing”).

 

(e)                                  Each of the Sellers and the Company shall, and shall cause each Subsidiary of the Company to, use reasonable best efforts to provide on a timely basis all such reasonable assistance and cooperation in connection with the Financing as may be reasonably requested by the Buyer, including (i) subject to customary confidentiality arrangements, granting access to the Company’s data room as may reasonably be requested for due diligence purposes by potential financing sources, (ii) furnishing (A) the audited consolidated balance sheets of the Company as of April 30, 2012, and April 30, 2013 and the audited consolidated income statements of the Company for the fiscal years then ended, the unaudited consolidated balance sheets of the Company as of October 31, 2013 and the unaudited consolidated income statements of the Company for the six-month period then ended, which Buyer acknowledges have already been delivered, (B) the unaudited consolidated balance sheets of the Company as of January 31, 2014 and the unaudited consolidated income statements of the Company for the nine-month period then ended and (C) other reasonable available historic financial and other information (specifically excluding any pro forma or projected statements or information) about the Company and its Subsidiaries as Buyer may request that is reasonably required in connection with the preparation of customary confidential information memoranda to be used in connection with the Financing (all such information described in clause (ii), the “Required Information”), (iii) furnishing all documentation and other information required under applicable “know your customer” and anti-money laundering rules and regulations, (iv) providing Buyer with such historical and other financial information as is reasonably necessary for Buyer to create consolidated pro-forma and projected financial statements and information regarding the Company and assisting the Buyer and its Committed Financing Sources in the preparation of all information memoranda, lender presentations, rating agency presentations, and similar documents in connection with the Financing, (v) participating in one or more meetings with the parties acting as lead arrangers or agents for, and prospective lenders with respect to, the Debt Financing, (vi) entering into and causing each Subsidiary of the Company to enter into definitive transaction documents for the Financing (including corporate resolutions, certificates, and other documents related thereto), provided that no obligation under any such document contemplated by this clause (v) shall be considered a Debt Obligation for purposes of Section 2.4 hereof, (vii) facilitating the pledge of and granting and perfection and release of liens on applicable collateral to provide security in connection with the Financing at and after the Closing, (viii) using commercially reasonable efforts to obtain such consents, approvals and authorizations which may be reasonably requested by the Buyer in connection with the Financing and collateral arrangements in connection therewith and (ix) cooperating with the Buyer to satisfy the conditions precedent to the Financing to the extent within the reasonable control of the Company and its Subsidiaries.  Notwithstanding anything to the contrary herein, neither the Sellers, nor the Company or any of its Subsidiaries, and none of their respective directors, officers or employees shall be required to pay any commitment or other similar fee or incur any other liability or

 

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expense (other than fees and expenses to be reimbursed by the Buyer) in connection with the Financing prior to the Closing.

 

(f)                                   Sellers may, at such time as they believe in good faith that they have delivered Compliant Required Information, deliver to Buyer a written notice to that effect (stating when they believe such delivery was made), in which case Sellers shall be deemed to have provided Compliant Required Information as of such date unless the Buyer, within three (3) Business Days of receiving such notice from Sellers, gives written notice to the Sellers stating that Buyer does not believe Compliant Required Information has been delivered and stating, if applicable, with specificity, the basis for such belief.

 

(g)                                  Buyer agrees to indemnify, protect and hold the Sellers and their respective Affiliates, agents and representatives harmless from all liabilities that any of them may suffer in connection with the Sellers’ or, prior to the Closing, the GMS Entities’ performance of their respective obligations under this Section 6.8, except to the extent the act or omission giving rise to such liability would also give rise to a right of indemnification against one or more Sellers hereunder.  As between any of the Sellers, on the one hand, and any Buyer Indemnified Party, on the other hand, nothing in this Section 6.8 shall be deemed to expand the scope of any representation or warranty made in this Agreement or to increase the liability of Sellers with respect to any other provision of this Agreement.

 

6.9                               Tax Matters.

 

(a)                                 Tax Liability.

 

(i)                                     To the extent provided (and subject to the limitations set forth) in this Section 6.9 and in ARTICLE IX, from and after the Closing Sellers shall indemnify and hold harmless the Buyer Indemnified Parties against (A) all unpaid Taxes (whether assessed or unassessed) of a GMS Entity attributable to a Pre-Closing Period to the extent not taken into account in the calculation of the Closing Date Working Capital (as finally determined), and (B) any liability of a Person for Taxes pursuant to Treasury Regulation Section 1.1502-6 (or any comparable provision under state, local or foreign law or regulation imposing several liability upon members of a consolidated, combined, affiliated or unitary group) for any Pre-Closing Period; provided, however, that Sellers shall not be liable for (w) any Taxes to the extent taken into account in the calculation of the Closing Date Working Capital (as finally determined); (x) any Taxes imposed on a GMS Entity as a result of transactions occurring on the Closing Date outside the ordinary course of business (other than transactions contemplated by this Agreement) that are properly allocable (based on, among other relevant factors, factors set forth in Treasury Regulation Section  1.1502-76(b)(1)(ii)(B)) to the portion of the Closing Date after the Closing; (y) any interest or penalties attributable to the gross negligence or bad faith of Buyer or its Affiliates; or (z) any interest or penalties imposed or assessed, or Losses incurred, to the extent attributable to Buyer’s late filing of any Tax Return or late payment of any Taxes.  Sellers shall be entitled to any refund of (or credit in lieu of a refund for) Taxes allocable to any Pre-Closing Period (including any interest in respect of such refund) to the extent not taken into account in the final determination of the Closing Date Working Capital.  Buyer or the appropriate GMS Entity shall pay over to Sellers their Pro Rata Portion of any such refund or the amount of any such credit within fifteen (15) Business Days after receipt or entitlement, as applicable (net of

 

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any Tax or other cost imposed on or incurred by Buyer or any of its Affiliates with respect to the accrual or receipt of such refund).

 

(ii)                                  To the extent provided (and subject to the limitations set forth) in this Section 6.9 and in ARTICLE IX, Buyer shall indemnify and hold harmless the Seller Indemnified Parties against all Taxes (whether assessed or unassessed) applicable to any GMS Entity (A) attributable to (1) any taxable year or period beginning after the Closing Date (or, with respect to any Straddle Period, the portion of such Straddle Period beginning after the Closing Date), or (2) any transaction occurring on the Closing Date outside the ordinary course of business (other than transactions contemplated by this Agreement) that are properly allocable (based on, among other relevant factors, factors set forth in Treasury Regulation Section  1.1502-76(b)(1)(ii)(B)) to the portion of the Closing Date after the Closing, (B) to the extent such Taxes are taken into account in the calculation of the Closing Date Working Capital (as finally determined); (C) resulting from any interest or penalties imposed or assessed upon Tax obligations, attributable to the gross negligence or bad faith of Buyer or its Affiliates; or (D) resulting from any interest or penalties imposed or assessed, or Losses incurred, to the extent attributable to Buyer’s late filing of any Tax Return or late payment of any Taxes.  Except as otherwise provided herein, Buyer shall be entitled to any refund of (or credit for) Taxes allocable to any taxable year or period that begins after the Closing Date and, with respect to any Straddle Period, the portion of such Straddle Period beginning after the Closing Date, including for the avoidance of doubt any refunds attributable to carrybacks from a taxable year or period that begins after the Closing Date to a Pre-Closing Period; provided that, for the avoidance of doubt, this sentence shall not apply to any refunds constituting Future Transaction Tax Benefits that are payable to Sellers pursuant to Section 6.9(c)(ii).

 

(iii)                               For purposes of Section 6.9(a)(i) and Section 6.9(a)(ii), whenever it is necessary to determine the liability for Taxes for a Straddle Period, the determination of the Taxes for the portion of the Straddle Period ending on and including, and the portion of the Straddle Period beginning after, the Closing Date shall be determined by assuming that the Straddle Period consisted of two (2) taxable years or periods, one of which ended at the close of the Closing Date and the other of which began at the beginning of the day following the Closing Date, and items of income, gain, deduction, loss or credit for the Straddle Period shall be allocated between such two taxable years or periods on a “closing of the books basis” by assuming that the relevant books were closed at the close of the Closing Date; provided, however, that (A) transactions occurring on the Closing Date outside the ordinary course of business (other than transactions contemplated by this Agreement) that are properly allocable (based on, among other relevant factors, factors set forth in Treasury Regulation Section  1.1502-76(b)(1)(ii)(B)) to the portion of the Closing Date after the Closing shall be allocated to the taxable year or period that is deemed to begin at the beginning of the day following the Closing Date, and (B) exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, shall be apportioned between such two taxable years or periods on a daily basis and Taxes that are computed on a periodic basis, such as property Taxes, shall also be so apportioned on a daily basis.  Notwithstanding the foregoing provisions of this paragraph (iii), if the transactions contemplated by this Agreement result in the reassessment of the value of any property owned by any GMS Entity for property Tax purposes, or the imposition of any property Taxes at a rate which is different than the rate that would have been imposed if such transactions had not occurred, then (x) the portion of such property Taxes for the

 

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portion of the Straddle Period ending on and including the Closing Date shall be determined on a daily basis, using the assessed value and Tax rate that would have applied had such transactions not occurred, and (y) the portion of such property Taxes for the portion of such Straddle Period beginning after the Closing Date shall be the total property Taxes for the Straddle Period minus the amount described in clause (x) of this sentence.  Sales and use Taxes shall be deemed to accrue in accordance with GAAP.

 

(iv)                              Neither the Buyer nor the GMS Entities may extend the statute of limitations for any Taxes for which Sellers would reasonably be expected to indemnify Buyer under ARTICLE IX by giving any waiver or agreeing to any extension thereof without the express prior written consent of Sellers, such consent not to be unreasonably withheld, delayed or conditioned.

 

(v)                                 If, as a result of any action, suit, investigation, audit, claim, assessment or amended Tax Return, there is any change after the Closing Date in an item of income, gain, loss, deduction, credit or amount of Tax that results in an increase in Tax liability for which Sellers would otherwise be liable pursuant to this Section 6.9(a), and such change results in a decrease in the Tax liability of a Buyer Indemnified Party for any taxable year or period ending on or before April 30, 2017, Sellers shall be liable only for the net amount of such increase after taking into account such decrease in accordance with the provisions of this Section 6.9(a) (and, to the extent such increase in Tax liability is paid to a Taxing Authority by Sellers or any Affiliate thereof, Buyer shall pay Sellers an amount equal to such decrease).

 

(b)                                 Tax Returns.

 

(i)                                     Subject to the provisions of this Agreement, Buyer shall prepare and file or cause to be prepared and filed all Tax Returns for the Company and its Subsidiaries (other than Income Tax Returns for taxable periods ending on or before the Closing Date) that are filed after the Closing Date.  Buyer shall provide the Sellers with completed drafts of Income Tax Returns prepared with respect to Straddle Periods, together with supporting schedules and information, for the Sellers’ review and comment at least thirty (30) days prior to the due date for filing thereof (taking into account extensions of time to file) and shall consider in good faith such revisions to such Income Tax Returns as are reasonably requested by the Sellers.

 

(ii)                                  The Sellers shall prepare or cause to be prepared all Income Tax Returns for the Company and its Subsidiaries for taxable periods ending on or before the Closing Date that are filed after the Closing Date (including, for the avoidance of doubt, any Income Tax Returns reflecting a carryforward or carryback of a net operating loss from one Pre-Closing Period to another).  Each such Income Tax Return shall be prepared by treating items on such Tax Return in a manner consistent with the most recent prior practices and positions of the relevant GMS Entity unless otherwise required by applicable Law.  The Sellers shall provide Buyer with completed drafts of such Income Tax Returns, together with supporting schedules and information, for Buyer’s review and comment at least thirty (30) days prior to the due date for filing thereof (taking into account extensions of time to file) and shall consider in good faith such revisions to such Income Tax Returns as are reasonably requested by Buyer.  Buyer agrees to cause the applicable GMS Entities to execute and file on a timely basis (taking into account extensions of time to file) any Tax Return described in this Section 6.9(b)(ii). Sellers shall pay to

 

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Buyer all Taxes shown as due and owing on Tax Returns filed pursuant to Section 6.9(b)(i) or this Section 6.9(b)(ii) that are allocable to a Pre-Closing Tax Period or that are otherwise due and owing with respect to Pre-Closing Tax Periods at least five (5) days before such Taxes are required to be paid to the applicable Taxing Authority (net of any accrual for such Taxes to the extent reflected as a liability in the calculation of the Working Capital).

 

(iii)                               Buyer agrees to file or cause to be filed promptly after the Closing Date an IRS Form 4466 (Corporation Application for Quick Refund of Overpayment of Estimated Tax) and any analogous state and local forms (if applicable) with respect to any overpayments of estimated tax by the GMS Entities for taxable periods ending on the Closing Date.

 

(iv)                              Except as otherwise required by applicable Law, Buyer shall not take any action, or permit any action to be taken, that would reasonably be expected to prevent the taxable period of the Company and its Subsidiaries from ending for federal Income Tax purposes as of the close of business on the Closing Date and shall, to the extent permitted by applicable Law, elect with the relevant Taxing Authority to treat, for federal (and, where applicable, to the extent there are no adverse consequences, state and local) Income Tax purposes, the Closing Date as of the last day of a taxable period of the Company and its Subsidiaries.  This shall include, if necessary, Buyer electing pursuant to Treasury Regulation Section 1.1502-75 to file a consolidated federal Income Tax Return (but not any state or local equivalent), and to include the Company and its Subsidiaries in such consolidated federal Income Tax Return, for the first taxable period of Buyer ending after the Closing Date.

 

(c)                                  Transaction Tax Deductions.

 

(i)                                     Any liability for, or refund of, Income Taxes attributable to a Pre-Closing Tax Period shall be determined by taking into account all Transaction Tax Deductions properly deductible in a Pre-Closing Tax Period (assuming, for this purpose, that the “next-day rule” contained in Treasury Regulation Section 1.1502-76(b)(1)(ii)(B) is not applicable to any Transaction Tax Deduction, and, unless otherwise determined by Sellers, that the safe harbor election provided for in IRS Revenue Procedure 2011-29 is made with respect to any Transaction Tax Deduction that constitutes a “success-based fee”).

 

(ii)                                  Buyer shall pay to the Sellers an amount equal to any Future Transaction Tax Benefit (as defined below) within fifteen (15) Business Days following the earlier of making any reduced Tax payment with respect to any Income Tax Return (but not including for this purpose any Tax Return relating to payments of estimated Taxes) or the receipt of any Income Tax refund in cash that is attributable to such Future Transaction Tax Benefit.  For this purpose, a “Future Transaction Tax Benefit” is any refund of Income Tax or any reduction in the cumulative Income Tax liability of Buyer, the Company or any GMS Entity that is attributable to a carryforward (or carryback) of a net operating loss or other Tax attribute resulting from a Transaction Tax Deduction.  The amount of such refund or reduction for any taxable period shall equal the amount by which the hypothetical Income Tax liability of Buyer, the Company and any other GMS Entity, calculated by excluding all Transaction Tax Deductions, exceeds the actual Income Tax liability of Buyer, the Company and its Subsidiaries for such taxable period, treating all Transaction Tax Deductions (and any net operating loss

 

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attributable thereto) as the last items claimed for any taxable period (i.e., such refund or reduction shall be calculated using a “with and without methodology”).  The amount of such reduction or refund shall take into account the deductibility of state and local income Taxes for U.S. federal income tax purposes and other offsetting costs.  Buyer shall, and as applicable shall cause the Company and its Subsidiaries to, prepare all Income Tax Returns in good faith at or before the time and in the same manner that it would have filed such Income Tax Returns absent the provisions of this Section 6.9(c)(ii).  Notwithstanding the foregoing, Buyer shall not be required to cause any payments to be made with respect to Future Transaction Tax Benefits realized with respect to taxable periods ending after December 31, 2016.  Until such time as all Transaction Tax Deductions have been realized or expired, Buyer shall, within fifteen (15) Business Days after the filing of any Income Tax Return of (or including) Buyer, the Company or any GMS Entity for taxable periods ending on or prior to December 31, 2016 (but not including for this purpose any Tax Return relating to payments of estimated Taxes), deliver to the Sellers a written statement setting forth in reasonable detail the determination of the Future Transaction Tax Benefit reflected on such Income Tax Return.

 

(iii)                               Buyer shall not waive the carryback period or otherwise fail to carry back any net operating loss for any taxable period that includes a Transaction Tax Deduction or reflects a Future Transaction Tax Benefit.

 

(d)                                 Tax Audits.

 

(i)                                     Buyer shall promptly notify Sellers in writing upon receipt by Buyer or any of its Affiliates of any written notice of any pending or threatened federal, state, or local Tax audits, examinations, notices of deficiency or other adjustments, assessments or redeterminations (“Tax Matters”) relating to a Pre-Closing Period for which Sellers would reasonably be expected to indemnify Buyer under ARTICLE IX.

 

(ii)                                  Sellers shall have the sole right to control, contest, resolve and defend against any Tax Matters of any GMS Entity for taxable periods ending on or before the Closing Date, in each case provided Sellers may be obligated under this Agreement to indemnify the Buyer Indemnified Parties for such Taxes under ARTICLE IX, and to employ counsel of their choice at their own expense; provided, however, that (A) Buyer may participate at its own expense in any such Tax Matter, (B) Sellers shall keep Buyer informed with respect to the commencement, status and nature of any such Tax Matter and shall provide copies of all written communications with any Taxing Authority related to such Tax Matter, (C) Sellers shall not enter into any settlement of or otherwise compromise any such Tax Matter without the prior written consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed, and (D) Sellers may decline to control any Tax Matters by providing Buyer with written notice of such decision.

 

(iii)                               Except as otherwise provided in Section 6.9(d)(ii), Buyer shall have the sole right to control any Tax Matters relating to any GMS Entity and to employ counsel of its choice at its own expense; provided, however, that (A) Sellers may participate at their own expense in any such Tax Matter for which Sellers may be liable pursuant to ARTICLE IX, (B) Buyer shall keep Sellers informed with respect to the commencement, status and nature of any Tax Matter for which Sellers may be liable pursuant to ARTICLE IX and shall provide copies of

 

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all written communications with any Taxing Authority related to such Tax Matter to the extent related to a taxable period (or portion thereof) ending on or prior to the Closing Date, and (C) neither Buyer nor any of its Affiliates shall enter into any settlement of or otherwise compromise any Tax Matter for which Sellers are required to indemnify Buyer hereunder without the prior written consent of Sellers, which consent shall not be unreasonably withheld, conditioned or delayed.

 

(iv)                              In the event that Buyer fails to notify Sellers with respect to a Tax Matter in accordance with the provisions of Section 6.9(d)(i), Sellers shall not be obligated to indemnify Buyer under ARTICLE IX of this Agreement with respect to such Tax Matter to the extent such failure to notify Sellers materially adversely affects Sellers.

 

(e)                                  Assistance and Cooperation.  After the Closing Date, the Sellers and Buyer shall (and shall cause their respective Affiliates, including the GMS Entities, to):

 

(i)                                     assist the other Party in preparing any Tax Returns which such other Party is responsible for preparing and filing in accordance with Section 6.9(b); provided, however, that the obligation of Sellers shall only extend to the end of the relevant Straddle Period;

 

(ii)                                  upon reasonable notice and without undue interruption to the business of such Party or the GMS Entities, provide access during normal business hours to the books and records of such Party relating to the Taxes of the GMS Entities prior to the Closing Date; and

 

(iii)                               furnish the other Party with copies of all correspondence received from any Taxing Authority in connection with any Tax Matter or information request with respect to any taxable period for which the other Party may have a liability under this Section 6.9.

 

(f)                                   Transfer Taxes.  All federal, state, local, foreign and other transfer, sales, use or similar Taxes (“Transfer Taxes”) applicable to, imposed upon or arising out of the transfer of the Shares or any other transaction contemplated by this Agreement (other than the transactions contemplated by Section 6.5(c)), if any, shall be the responsibility of and paid in full by Buyer.

 

(g)                                  Prior Agreements.  All Tax Sharing Agreements or similar agreements with respect to or involving the Company or any other GMS Entity (other than with any other GMS Entity) shall be terminated as of the Closing Date and, after the Closing Date, neither the Company nor any other GMS Entity shall be bound thereby or have any liability thereunder.

 

6.10                        Employees and Employee Benefit Plans.

 

(a)                                 Compensation and Benefits.  The Buyer shall, or shall cause one of its Affiliates (including the GMS Entities) to, maintain for Continuing Employees through April 30, 2015 (i) salary, wages, incentive compensation and bonus opportunities that are at least as favorable as those provided to the Continuing Employees immediately prior to the Closing, and (ii) other benefit plans and arrangements (which may be the existing Employee Benefit Plans)

 

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that are substantially similar in the aggregate to those provided to the Continuing Employees immediately prior to the Closing, subject, in each case, to the terms of any employment, consulting or similar agreement entered into at or in connection with the Closing.  If any Continuing Employee’s employment is terminated prior to April 30, 2015, the Buyer shall, or shall cause the Company to, provide such Continuing Employee with severance benefits substantially similar in the aggregate to those historically provided under the applicable Employee Benefit Plans by the applicable GMS Entity prior to the Closing Date.

 

(b)                                 Credit for Pre-Closing Items.  From and after the Closing, for purposes of eligibility, vesting and benefit accrual (other than with respect to a defined benefit pension plan) and any newly implemented equity or equity based compensation program of Buyer), the Buyer and its Affiliates (including the GMS Entities) shall give each Continuing Employee full credit for such Continuing Employee’s service with any GMS Entity, any of its Affiliates, and any predecessor employer, to the same extent recognized by the GMS Entity or any of its Affiliates prior to Closing, except to the extent such credit would result in the duplication of benefits for the same period of service.  To the extent any Continuing Employee commences participation in any Buyer Benefit Program, the Buyer shall (i) waive for each such Continuing Employee and his or her dependents any waiting period provision, pre-existing condition limitation, evidence of insurability, or similar limitation or condition to the extent such provision, limitation or condition would not have been applicable to such Continuing Employee under the terms of the welfare plans of the GMS Entity in which the Company Employee participated immediately prior to the Closing Date, and (ii) give full credit under the Buyer Benefit Program for all co-payments and deductibles satisfied prior to the Closing in the same plan year as the Closing and for all plan year or lifetime out-of-pocket maximums.

 

(c)                                  Paid Time Off.  Buyer shall credit and cause to be paid in the normal course of business the paid time off (“PTO”) of all Continuing Employees for all days of PTO to which each such employee was entitled under the applicable GMS Entity’s PTO policy as of the Closing Date.  For purposes of computing eligibility for, and the amount of, PTO of Continuing Employees, employment of such employees by any GMS Entity before the Closing shall be taken into account.

 

(d)                                 Special Provision for Represented Employees.  Notwithstanding anything to the contrary herein, with respect to any Company Employee who is part of a bargaining group covered by a Labor Agreement, Buyer shall, or shall cause its Affiliates (including the GMS Entities) to, continue such Company Employee’s employment, compensation and benefits in accordance with, and shall otherwise adhere to, such Labor Agreement through its expiration, modification, or termination in accordance with its terms and applicable Law.

 

(e)                                  Compliance.  Buyer shall be solely responsible for and shall indemnify the Seller Indemnified Parties against all Losses (i) arising out of Buyer’s or an Affiliate’s failure to continue the employment of any Company Employee (including without limitation, severance or similar claims or amounts relating to the termination of employment of such Company Employee after the Closing Date), (ii) arising after the Closing Date with respect to the Continuing Employees or the terms and conditions of the Continuing Employees’ employment with Buyer or an Affiliate of Buyer, (iii) under the Worker Adjustment and Retraining 

 

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Notification Act or similar Law arising out of Buyer’s or an Affiliate’s acts or omissions related to the Continuing Employees, and (iv) for any failure by Buyer to comply with its obligations under this Section 6.10(e).

 

(f)                                   COBRA.  A group health plan of Buyer or its Affiliates (including the GMS Entities) shall be solely responsible for complying with the requirements of COBRA for any individual who is an “M&A qualified beneficiary” as defined in Q&A-4 of Treas. Regulation §54.4980B-9, in connection with the transactions contemplated by this Agreement.

 

(g)                                  No Amendment of Plans.  Notwithstanding anything in this Agreement to the contrary, no provision of this Agreement is intended to, does or shall be deemed to constitute the establishment or adoption of, or amendment to, any employee benefit plan, and no Person participating in any such employee benefit plan maintained by either the GMS Entities or their Affiliates or Buyer or its Affiliates, shall have any claim or cause of action, under ERISA or otherwise, in respect of any provision of this Agreement as it relates to any employee benefit plan or otherwise.

 

6.11                        No Public Announcement; Contact with Company Suppliers and Customers.  Neither Buyer, Sellers nor their respective Affiliates, shall, without the written approval of the other Parties (which approval shall not be unreasonably withheld, conditioned or delayed), make any press release or other public announcement (a) which concerns this Agreement or the transactions contemplated by this Agreement, or (b) which discloses the terms of the transaction, in either case, except as and to the extent that any such Person shall be so obligated by Law or by the rules or regulations of any stock exchange.  For the avoidance of doubt in no event shall the foregoing prevent, in any manner, Sponsor from disclosing to its investors or limited partners information regarding the transactions contemplated hereby in a manner consistent with past practices of disclosing transaction information. Buyer shall not, and shall cause its representatives and advisors to not, contact any supplier or customer of any GMS Entity regarding or in any way relating to the transaction contemplated by this Agreement without the prior written approval of the Company.

 

6.12                        Expenses.  Except as otherwise specifically provided in this Agreement, each Party will pay all costs and expenses incident to its negotiation and preparation of this Agreement and to its performance and compliance with all the agreements and conditions contained herein on its part to be performed or complied with, including the fees, expenses and disbursements of its counsel, investment bankers and independent public accountants and the filing fees payable in connection with each Party’s respective filing required by the HSR Act or any similar filings required by applicable antitrust Laws.  Notwithstanding anything to the contrary contained herein, to the extent the Company has paid, prior to Closing, any costs and expenses of the Sellers relating to this Agreement and the transactions contemplated hereby, the Sellers shall not be required to reimburse such amounts to the Company (or to Buyer or any GMS Entity) after Closing.

 

6.13                        Books and Records.  From and after the Closing Date, Buyer shall cause the Company to preserve and keep all material books and records of the GMS Entities at the time of the Closing and shall prevent the GMS Entities from destroying any of such books and records for a period of seven (7) years following the Closing Date without first allowing Sellers, at

 

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Sellers’ expense, to make copies of the same within a reasonable time following such notice.  During that period, Buyer shall cause the Company (a) to allow each Seller and its representatives reasonable cooperation, access and staff assistance at reasonable times and upon reasonable request to such books and records relating solely to the period prior to the Closing (including workpapers and correspondence with Taxing Authorities), (b) to afford each Seller and its representatives the right, at such Seller’s expense, to take extracts therefrom and to make copies thereof, and (c) to have reasonable access to relevant employees of the GMS Entities, all to the extent such Seller reasonably requires, including for the preparation of Tax Returns and the handling of Tax Matters.

 

6.14                        Termination of Share Restrictions.  If, but only if, the Closing occurs, then the Company and the Sellers hereby cancel each and every contract among some or all of them relating to the Shares, including the Shareholders Agreement dated June 23, 2010 by and between the Company and the Sellers listed as shareholders therein, and any other agreement that restricts in any way the Share Transfer.

 

6.15                        Director & Officers Protection.

 

(a)                                 Rights Under Governing Documents.  For six (6) years after the Closing, Buyer shall not permit any GMS Entity to amend, repeal or otherwise modify any provision in the Governing Documents of any GMS Entity relating to exculpation or indemnification of the directors and officers of such GMS Entity who have served in such capacity prior to the Closing (each a “D&O Indemnified Person”). The intent of the parties that such D&O Indemnified Persons be entitled to such exculpation and indemnification to the same extent as set forth in the applicable Governing Documents of such GMS Entity as in effect immediately prior to the Closing.  In the event any claim in respect of which indemnification is available pursuant to the applicable Governing Documents is asserted or made prior to the sixth anniversary of the Closing, all rights to indemnification under the applicable Governing Documents shall continue until such claim is disposed of or all judgments, orders, decrees or other rulings in connection with such claim are fully satisfied.

 

(b)                                 Tail Coverage.  Prior to the Closing, the Company shall purchase an extended reporting period endorsement under the Company’s existing directors’ and officers’ liability insurance for coverage of D&O Indemnified Persons who are currently covered thereby for six (6) years on terms no less advantageous to such D&O Indemnified Persons than such existing insurance coverage, which endorsement shall be provided to the Buyer for its approval no later than seven (7) days prior to the anticipated Closing Date, such approval not to be unreasonably withheld, conditioned or delayed.

 

(c)                                  Third Party Beneficiaries.  The obligations of the Company under this Section 6.15 shall not be terminated or modified in such a manner as to adversely affect any D&O Indemnified Person to whom this Section 6.15 applies without the consent of such affected D&O Indemnified Person (it being expressly agreed that the D&O Indemnified Person to whom this Section 6.15 applies are hereby made express and intended third-party beneficiaries of this Section 6.15).

 

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6.16                        Confidentiality.  Each of the Sellers shall, and shall cause each of their respective Affiliates, officers, directors, managers, employees, agents and representatives to, hold in confidence any and all information relating to the GMS Entities, Buyer or their respective Affiliates (other than the Sellers) currently in any of their possession or obtained after the date hereof which is non-public, and shall not, and shall cause each of their respective Affiliates, officers, directors, managers, employees, agents and representatives not to, directly or indirectly disclose, publish or otherwise make available any of such confidential information to the public or to any Person.  Notwithstanding the foregoing, such Persons may disclose such confidential information if, but only to the extent,  required by judicial or administrative process (including a process to enforce any rights under this Agreement) or by other requirements of applicable Law, or by obligations pursuant to any listing agreement with any securities exchange or any securities exchange regulation, in which case the Person proposing to disclose, publish or otherwise make available such information shall first notify Buyer thereof and, if requested by Buyer, shall use commercially reasonable efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.  In addition, no Person shall be restricted hereby from using or disclosing any information which (i) is generally available to and known by the public through no fault of such Person, (ii) is lawfully acquired by such Person after from sources which, to their knowledge, are not prohibited from disclosing such information by a legal, contractual, or fiduciary obligation, or (iii) was independently developed without the use of any other confidential information described herein.  The obligations set forth in this Section 6.16 shall terminate and be of no further force or effect following the fifth anniversary of the Closing Date.

 

6.17                        Sellers’ Non-Compete and Non-Solicit.

 

(a)                                 For a period of five (5) years from and after the Closing Date, no Seller shall, directly or indirectly, engage in, own, have any financial interest in, or manage or operate anywhere in the world where the Company or its Subsidiaries currently sells products and services or where the Company or its Subsidiaries have specific plans to sell products or services, a business the same as, substantially similar to, or which competes in any material respect with, any of the businesses conducted by the Company or any of its Subsidiaries prior to the date hereof, except that the beneficial ownership within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended, of less than 2% of the outstanding shares of common stock of a publicly-held corporation shall be permitted.

 

(b)                                 For a period from the date hereof and continuing for a period of two (2) years from and after the Closing Date, no Seller shall, directly or indirectly, solicit for employment or employ any employee of the Company or any of its Subsidiaries, or request, induce or advise any employee thereof to leave the employ of the Company or any of its Subsidiaries, without the prior written consent of Buyer. Notwithstanding the foregoing, (i) the placement of general advertisements not directed specifically to employees of the Company or any of its Subsidiaries shall not be deemed to be a solicitation for purposes of this Section 6.17(b), and (ii) no Seller shall be prohibited from employing any employee described herein if such individual ceases to be employed by the Company or any of its Subsidiaries (other than in connection with a solicitation prohibited hereunder) and such individual has not been employed by the Company or any of its Subsidiaries for at least 6 months prior to employment by such Seller.

 

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(c)                                  Sellers, the Company and Buyer hereby agree and acknowledge that the duration, scope and geographic areas applicable to the foregoing provisions are fair, reasonable and necessary and that adequate compensation has been received by Sellers for such obligations.  If, however, for any reason any court determines that any such restrictions are not reasonable or that consideration is inadequate, such restrictions shall be interpreted, modified or rewritten to include as much of the duration, scope and geographic area identified in this Section 6.17 as will render such restrictions valid and enforceable.

 

6.18                        Delivery of Interim Financial Statements.  Until the Closing Date, the Company shall, and the Sellers shall cause the Company to, use reasonable best efforts to deliver to Purchaser, within forty-five (45) days after the end of each calendar month, a copy of the interim unaudited monthly consolidated financial statements and reports with respect to the Company and its Subsidiaries for such month prepared in a manner and containing information consistent with the GMS Entities’ current practices.

 

ARTICLE VII
  CONDITIONS TO CLOSING; DELIVERABLES

 

7.1                               Conditions Precedent to Obligation of Buyer.  The obligation of Buyer to proceed with the Closing under this Agreement is subject to the fulfillment prior to or at the Closing of the following conditions, any one or more of which (other than the conditions contained in Section 7.1(b) or 7.1(d)) may be waived in whole or in part by Buyer:

 

(a)                                 Bringdown of Representations and Warranties; Covenants.  Each of the representations and warranties of Sellers and the Company contained in this Agreement other than the Fundamental Representations, in each case, disregarding all qualifications and exceptions contained therein relating to materiality or Material Adverse Effect  shall be true and correct on and as of the date of this Agreement and on and as of the Closing Date (except to the extent that any such representation and warranty relates to an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date), except where the failure of such representations and warranties to be true and correct, has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  The Fundamental Representations made by the Company and the Sellers shall be true and correct in all respects (other than de minimis exceptions) as of the date of this Agreement and at and as of the Closing Date (except to the extent that any such representation and warranty relates to an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date).  Sellers and the Company shall have performed in all material respects all of the covenants and complied in all material respects with all of the provisions required by this Agreement to be performed or complied with by them at or before the Closing.

 

(b)                                 Orders.  No order of any Governmental Body shall be in effect and no Law shall have been enacted or adopted that restrains or prohibits the consummation of the transactions contemplated hereby and no Litigation shall have been commenced by a Governmental Body and be pending that seeks to prevent or prohibit the consummation of the transactions contemplated hereby.

 

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(c)                                  Consents.  The Company shall have received the consents and other approvals referred to in Schedules 6.3(a) and 6.3(b).

 

(d)                                 Antitrust.  All waiting periods applicable to the consummation of the Share Transfer under the HSR Act and other applicable antitrust laws shall have expired or been terminated.

 

(e)                                  No Material Adverse Change.  Since the date of this Agreement, no fact, event or circumstance shall have occurred or arisen that, individually or in combination with any other facts, events or circumstances, has had, or would reasonably be expected to have, a  Material Adverse Effect.

 

(f)                                   Closing Documents.  Buyer shall have received each of the documents and other deliverables referred to in Section 7.3(a).  All agreements, certificates and other documents delivered by Sellers to Buyer hereunder shall be in form and substance reasonably satisfactory to Buyer.

 

(g)                                  Resignations.  Buyer shall have received written resignations, effective immediately following the Closing, of the directors and officers of GMS Entities who are designated in a written notice from the Buyer to the Company received at least five (5) Business Days prior to the Closing Date, from their offices as director or officer.

 

7.2                               Conditions Precedent to Obligation of Sellers.  The obligation of Sellers to proceed with the Closing under this Agreement is subject to the fulfillment prior to or at Closing of the following conditions, any one or more of which (other than the conditions contained in Section 7.2(b) or 7.2(c)) may be waived in whole or in part by Sellers:

 

(a)                                 Bringdown of Representations and Warranties; Covenants.  Each of the representations and warranties of Buyer contained in this Agreement shall be true and correct in all material respects on and as of the Closing Date, except to the extent that any representation and warranty relates to an earlier date, in which case such representation and warranty shall be true and correct in all material respects as of such earlier date. Buyer shall have performed in all material respects all of the covenants and complied in all material respects with all of the provisions required by this Agreement to be performed or complied with by them at or before the Closing.

 

(b)                                 Orders.  No order of any Governmental Body shall be in effect and no Law shall have been enacted, adopted or pending that restrains or prohibits the consummation of the transactions contemplated hereby and no Litigation shall be pending or threatened before any Governmental Body that seeks to prevent or prohibit the consummation of the transactions contemplated hereby.

 

(c)                                  Antitrust.  All waiting periods applicable to the consummation of the Share Transfer under the HSR Act and other applicable Antitrust Laws shall have expired or been terminated.

 

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(d)                                 Conditions to Subscription Agreement.  All conditions precedent to the Sellers’ obligations to perform under the Seller Subscription Agreement shall have been satisfied.

 

(e)                                  Closing Documents.  Sellers shall have received the documents referred to in Section 7.3(b).  All agreements, certificates and other documents delivered by Buyer to Sellers hereunder shall be in form and substance reasonably satisfactory to Sellers.

 

7.3                               Deliveries at the Closing.

 

(a)                                 By Sellers.

 

(i)                                     Each Seller shall separately deliver or cause to be delivered to Buyer at the Closing:

 

(A)                               stock certificates representing such Seller’s Transfer Shares, duly endorsed in negotiable form or accompanied by stock transfer powers, duly executed by such Seller, in blank;

 

(B)                               to the extent party to the Seller Subscription Agreement and the conditions to such Seller’s obligations thereunder have been satisfied, such Seller’s deliverables due thereunder;

 

(C)                               a copy of the Escrow Agreement, duly executed by such Seller; and

 

(D)                               a certificate, dated as of the Closing Date, certifying to the fulfillment of the conditions set forth in Section 7.1(a) to the extent those conditions apply to the Seller Group of which such Seller is a member.

 

(ii)                                  Sellers shall deliver or cause to be delivered to Buyer at the Closing:

 

(A)                               a certificate from the secretary of state of the state of Georgia to the effect that the Company is validly existing and in good standing therein as of a date not more than thirty (30) days prior to the Closing Date;

 

(B)                               a certificate of the Secretary of the Company, dated as of the Closing Date, attaching true and correct copies of (i) the Governing Documents of the Company as of the Closing Date, and (ii) all resolutions of the Board of Directors of the Company authorizing the execution and delivery of this Agreement and the performance by the Company of the transactions contemplated hereby and stating that such authorization remains in effect and has not been amended or terminated;

 

(C)                               a certificate from each Principal Seller, dated as of the Closing Date, certifying to the fulfillment of the conditions set forth in Section 7.1(a) to the extent those conditions apply to the Company and the other GMS Entities;

 

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(D)                               the minute books, stock ledgers and corporate seal of the GMS Entities;

 

(E)                                pay-off letters (the “Pay-Off Letters”), drafts of which shall have been provided at least two (2) Business Days prior to the Closing, with respect to the pay-off of all Debt Obligations to be satisfied at the Closing as indicated on the Closing Statement, which letters shall include, where applicable, customary contingent lien release and commitment termination language, in each case in a form reasonably satisfactory to the Buyer; and

 

(F)                                 (1) a certificate in form reasonably acceptable to Buyer prepared in accordance with Treasury Regulation Section 1.1445-2(c), duly executed by a responsible corporate officer of the Company under penalties of perjury, certifying that the Shares are not United States real property interests and dated not more than 30 days prior to the Closing Date and (2) proof reasonably satisfactory to Buyer that the Company has provided notice of such certification to the IRS in accordance with the provisions of Treasury Regulation Section 1.897-2(h)(2);

 

(b)                                 By Buyer.  Buyer shall deliver or cause to be delivered to Sellers at the Closing:

 

(i)                                     a copy of the Escrow Agreement, duly executed by Buyer;

 

(ii)                                  to the extent such Seller is a party to the Seller Subscription Agreement and the conditions to Holdco’s obligations thereunder have been satisfied, the Holdco deliverables due such Seller thereunder;

 

(iii)                               certificates of the appropriate public officials to the effect that Buyer is validly existing and in good standing in its state of organization as of a date not more than thirty (30) days prior to the Closing Date;

 

(iv)                              certificates of the Secretary of Buyer setting forth all resolutions of its Board of Directors or similar governing body and, if necessary, its stockholders or members, authorizing the execution and delivery of this Agreement and the performance by it of the transactions contemplated hereby;

 

(v)                                 a certificate, dated as of the Closing Date, certifying to the fulfillment of the conditions set forth in Section 7.2(a); and

 

(vi)                              the Purchase Price, in accordance with Section 2.4.

 

ARTICLE VIII
 TERMINATION

 

8.1                               Termination Rights.  This Agreement may be terminated at any time prior to the Closing:

 

(a)                                 by mutual written consent of Buyer and the Company;

 

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(b)                                 by either the Company or Buyer if a Governmental Body shall have issued a non-appealable final order, decree or ruling or taken any other non-appealable final action having the effect of permanently restraining, enjoining or otherwise prohibiting the Share Transfer or there shall be a Law which makes illegal or otherwise prohibits the Share Transfer;

 

(c)                                  by the Company if there has been a material breach by Buyer of any of its representations, warranties, covenants or agreements contained in this Agreement which would give rise to the failure of a condition in Section 7.2, which breach has not been waived in writing and cannot be or has not been cured within ten (10) days after the giving of written notice by the Company to the Buyer specifying such breach; provided, that the Company shall not have the right to terminate this Agreement pursuant to this Section 8.1(c) if it or the Sellers are then in material breach of any of their representations, warranties, covenants or other agreements hereunder;

 

(d)                                 by Buyer if there has been a material breach by the Company or the Sellers of any of their representations, warranties, covenants or agreements contained in this Agreement which would give rise to the failure of a condition in Section 7.1, which breach has not been waived in writing and cannot be or has not been cured within ten (10) days after the giving of written notice by the Buyer to the Company specifying such breach; provided, that Buyer shall not have the right to terminate this Agreement pursuant to this Section 8.1(d) if it is then in material breach of any of its representations, warranties, covenants or other agreements hereunder;

 

(e)                                  by the Company or Buyer if the Closing has not occurred on or prior to the May 1, 2014 (the “End Date”) and no action to specifically perform this Agreement has been commenced, provided, that a Party shall not have the right to terminate this Agreement pursuant to this Section 8.1(e) if they (including with respect to the Company, if the Company or the Sellers) are then in material breach of any of their representations, warranties, covenants or other agreements hereunder.  Notwithstanding the foregoing, (i) in the event that the FTC issues a “second request” with respect to the transactions contemplated by this Agreement or issues an administrative complaint challenging such transactions, or if either the FTC or Antitrust Division brings suit seeking to prevent or enjoin such transactions, then Buyer or the Company may, upon written notice to the other, extend the End Date for a period of not more than 120 days from the date hereof, and (ii) in the event the Marketing Period has begun but not yet ended by the End Date (as defined above), the End Date shall be extended until the earlier of (x) the date that is two (2) Business Days after the date on which the Marketing Period ends, or (y) the date that is fifteen (15) Business Days after the date which would otherwise be the End Date (as defined above); provided that in no event shall the End Date be later than the date that is 120 days from the date hereof;

 

(f)                                   by the Company if (i) all of the conditions precedent to Buyer’s obligations to consummate the Closing under Section 7.1 (other than any such conditions which by their nature are to be satisfied on the Closing Date, but subject to such conditions being capable of being satisfied assuming the Closing occurs) have been satisfied  and continue to be satisfied (or capable of being satisfied) on the date the Closing is required to be consummated by Buyer pursuant to the terms of this Agreement, (ii) the Sellers irrevocably certify to Buyer in writing that they are ready, willing and able to consummate the Closing on such date, and (iii)

 

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Buyer fails to consummate the Closing within two (2) Business Days following receipt of such written certification.

 

If a Party institutes an action to specifically perform this Agreement in accordance with Section 10.10 before its termination pursuant to this Section 8.1, then notwithstanding any other provision of this Agreement, this Agreement will not be terminated thereafter unless and until a final judgment or order is entered in such action or in any appeal therefrom denying specific performance in such action or dismissing or discontinuing such action without the granting of such relief (and such judgment or order is not then subject to appeal) or such action or an appeal therefrom is dismissed or discontinued voluntarily by the Party seeking such action, or by agreement of the Parties without the granting of such relief.

 

8.2                               Termination Fee.

 

(a)                                 The Parties agree that, if the Company validly terminates this Agreement pursuant to (i) Section 8.1(c), (ii) Section 8.1(e) and in the case of this clause (ii), (A) all of the conditions precedent to Buyer’s obligations to consummate the Closing under Section 7.1 have been satisfied (other than any such conditions which by their nature are to be satisfied on the Closing Date or which have not been satisfied due to Buyer’s breach of its obligations under this Agreement) and continue to be satisfied (or capable of being satisfied) on the date the Closing is required to be consummated by Buyer pursuant to the terms of this Agreement, (B) the Sellers irrevocably certify to Buyer in writing that they are ready, willing and able to consummate the Closing on the End Date and (C) Buyer fails to consummate the Closing within two (2) Business Days following receipt of such written confirmation, or (iii) Section 8.1(f), Buyer shall pay each Seller its Pro Rata Share of a termination fee equal to $51,600,000.00 (the “Buyer Termination Fee”) by wire transfer of immediately available funds as promptly as reasonably practicable (and in any event, within five (5) Business Days of such termination), it being understood that (x) in no event shall Buyer be required to pay the Buyer Termination Fee on more than one occasion, (y) in no event shall Sellers and the Company be entitled to both an award of specific performance of Buyer’s obligations to consummate the Closing under Section 10.10 and monetary damages in connection with this Agreement or any termination of this Agreement, including the Buyer Termination Fee, and (z) the parties agree that the Buyer Termination Fee is not a penalty, Buyer will not assert any argument to the effect that payment of the Buyer Termination Fee is contrary to public policy or that there are equitable reasons why it should not be paid under any circumstance requiring its payment under this section 8.2(a).

 

(b)                                 Notwithstanding anything to the contrary in this Agreement, in the event Buyer fails to effect the Closing or otherwise breaches this Agreement or fails to perform hereunder, then, except for an order of specific performance as and only to the extent expressly permitted by Section 10.10, Sellers’ and the Company’s sole and exclusive remedy (whether at law, in equity, in contract, in tort or otherwise) against Buyer, Sponsor, any Committed Financing Party, and any of their respective former, current or future Affiliates or representatives in respect of this Agreement, any contract or agreement executed in connection herewith (including the Debt Commitment Letters) and the transactions contemplated hereby and thereby shall be to terminate this Agreement in accordance with this Article VIII and collect, if due, the Buyer Termination Fee, and upon payment of such amounts in accordance with this Section 8.2, except in connection with an order of specific performance as and only to the extent expressly

 

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permitted by Section 10.10, (A) none of Buyer, Sponsor, the Committed Financing Parties, or any of their respective former, current or future Affiliates or representatives shall have any further liability or obligation relating to or arising out of this Agreement, any Contract executed in connection herewith (including the Debt Commitment Letters) or any of the transactions contemplated hereby or thereby, (B) none of Sellers, the Company, the Subsidiaries of the Company or any of their respective former, current or future Affiliates or representatives shall be entitled to bring or maintain any action or proceeding against Buyer, Sponsor, the Committed Financing Parties, or any of their respective former, current or future Affiliates or representatives arising out of or in connection with this Agreement, any Contract executed in connection herewith (including the Debt Commitment Letters) or any of the transactions contemplated hereby or thereby (or the abandonment or termination thereof) or any matters forming the basis for such termination, and (C) Sellers and the Company shall use their commercially reasonable efforts to cause any Litigation pending in connection with this Agreement, any Contract executed in connection herewith (including the Debt Commitment Letters) or any of the transactions contemplated hereby or thereby, to be dismissed with prejudice promptly following the payment of any such amounts.

 

8.3                               Effect of Termination.  In the event of termination of this Agreement pursuant to clause (a) or clause (b) of Section 8.1, no Party hereto shall be liable to any other Party for any breach hereof, except for breaches of Section 6.4, if any, if such breach led to the Governmental Body action described in such clause (b).  Subject to the limitations in Section 8.2, in the event of termination of this Agreement by either Buyer or the Company pursuant to any of clauses (c) or (d) of Section 8.1, Buyer, on the one hand, or the Company, on the other hand, as applicable, shall be liable to the other for any breach of this Agreement by them (including with respect to the Company, by the Sellers) which led to such termination.  Subject to the limitations in Section 8.2, Section 9.4, and Section 10.10, Buyer, the Company or the Sellers shall be entitled to seek any remedy to which they may be entitled at law or in equity in the event of such termination, which remedies shall include injunctive relief and specific performance.  The failure of any condition under this Agreement that does not constitute a breach of a representation or warranty or a covenant of a Party shall not be deemed a breach of this Agreement giving rise to a claim for damages against that Party.  If this Agreement is validly terminated pursuant to Section 8.1, this Agreement will thereafter be null and void, and there will be no liability or obligation on the part of the Company, Sellers or Buyer (or any of their Affiliates) except as provided in this ARTICLE VIII, and except that Section 6.6(a), Section 6.11 and Section 6.12 shall survive any such termination.  In addition, upon any such termination each Party will return all documents, workpapers and other materials of any other Party relating to the transactions contemplated hereby, whether obtained before or after the execution hereof, to the Party furnishing the same, except to the extent previously delivered to third parties in connection with the transactions contemplated hereby, and all information received by any Party hereto with respect to the business of any other Party shall not at any time be used for the advantage of, or disclosed to third parties by, such Party to the detriment of the Party furnishing such information; provided, however, that this Section 8.3 shall not apply to any document, work paper, material or information which is a matter of public knowledge or which heretofore has been or hereafter is published in any publication for public distribution or filed as public information with any Governmental Body.  In lieu of the requirement to return materials as set forth herein, a Party may destroy such materials and provide a written certification thereof to the other Parties as applicable.

 

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ARTICLE IX
 INDEMNIFICATION

 

9.1                               Survival of Representations, Warranties, Covenants and Agreements.  Subject to the provisions of this ARTICLE IX, the representations and warranties of the Company and the Sellers contained in ARTICLE III and  ARTICLE IV and those of the Buyer contained in ARTICLE V, and the covenants and agreements of the Parties contained in this Agreement shall survive the Closing but shall terminate and be of no further force or effect on August 31, 2015, provided, however,  that (a) the representations and warranties set forth in Section 3.1 [Organization and Authority],  Section 3.2 [Authorization; Enforceability], Section 3.3(a) [Capitalization], Section 3.3(b) [Capitalization of other GMS Entities], Section 3.18 [Brokers], Section 4.1 [Authorization; Enforceability], Section 4.2 [Share Ownership], Section 5.1 [Organization], Section 5.2 [Authorization; Enforceability], and Section 5.5 [Brokers] (collectively, the “Fundamental Representations”) shall survive until the expiration of the applicable statute of limitations, and (c) the covenants of Sellers and Buyer set forth in Section 6.9 [Tax Matters] shall survive until the date that is sixty (60) days after the expiration of the relevant statutory period of limitations applicable to the underlying claims, (d) the covenants and agreements of the Parties contained in ARTICLE VI of this Agreement (other than Section 6.9) shall survive the Closing until the last day on which such covenant or agreement is to be performed, provided that Section 6.5 shall survive Closing for no less than six (6) months after the Closing Date, and (e) each covenant and agreement in this ARTICLE IX shall survive for such period as is necessary to resolve any claim properly made within the applicable time period set forth in this Section 9.1.   No claims may be made by any Indemnified Party under this ARTICLE IX following the applicable survival period set forth in this Section 9.1.  Notwithstanding the foregoing, any representation, warranty or covenant  as to which a claim relating thereto is asserted in writing (which states with reasonable specificity the basis therefor) in accordance with Section 9.3 during such applicable survival period shall, with respect only to such claim, continue in force and effect beyond such survival period until the resolution of such claim.

 

9.2                               Indemnification.

 

(a)                                 Indemnification by Sellers; Limitations.

 

(i)                                     If the Closing occurs, and subject to the limitations and other provisions of this ARTICLE IX, each Seller hereby agrees, jointly and severally with the other members of the Seller Group of which such Seller is a member, and severally only (not jointly and severally) with the other Sellers, to indemnify and hold harmless the Buyer Indemnified Parties against such Seller’s Pro Rata Share (and the Pro Rata Share of each other member of the Seller Group of which such Seller is a member), of any Losses described in this Section 9.2(a) below that such Buyer Indemnified Parties shall suffer or incur, to the extent that such Losses are:

 

(A)                               Recoverable Losses which arise out of any inaccuracy or breach of any representation or warranty made by the Company in ARTICLE III of this Agreement;

 

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(B)                               Losses which arise out of any failure to perform any covenant or agreement made herein by the Company; or

 

(C)                               Recoverable Losses which arise out of any Asbestos Action relating to Southern Wall Products, Inc.

 

(ii)                                  In addition, if the Closing occurs, and subject to the limitations and other provisions of this ARTICLE IX, each Seller hereby agrees, jointly and severally with the other members of the Seller Group of which such Seller is a member, to indemnify and hold harmless the Buyer Indemnified Parties against any Losses that such Buyer Indemnified Parties shall suffer or incur, to the extent that such Losses arise out of  any (A) inaccuracy or breach of any representation or warranty in ARTICLE IV of this Agreement made by such Seller or any other member of the Seller Group of which such Seller is a member, or (B) any failure to perform any covenant or agreement made herein by such Seller or any other member of the Seller Group of which such Seller is a member.

 

(iii)                               No Seller shall have any liability to any Indemnified Party:

 

(A)                               under Sections 9.2(a)(i)(A), 9.2(a)(ii)(A), 9.2(a)(i)(C) and, solely to the extent arising from breach of Section 6.5, Section 9.2(a)(i)(B), unless and until the aggregate amount of all Recoverable Losses (or, in the case of Section 9.2(a)(i)(B), Losses) pursuant to such Sections exceeds $4,300,000.00 (the “Deductible”), in which event only the amount in excess thereof shall be recoverable, provided, however, that the Deductible shall not apply to Recoverable Losses arising out of breaches of the Fundamental Representations or Losses attributable to Taxes that are the obligation of Sellers as provided in Section 6.9;

 

(B)                               under  9.2(a)(i)(A), 9.2(a)(ii)(A), 9.2(a)(i)(C) and, solely to the extent arising from breach of Section 6.5, Section 9.2(a)(i)(B), to the extent Losses otherwise indemnifiable thereunder exceed the then-current balance of the Indemnity Escrow Fund, except in the case of Fundamental Representations or Losses attributable to Taxes that are the obligation of Sellers as provided in Section 6.9; or

 

(C)                               under any provision of this ARTICLE IX in the case of Losses arising out of Fundamental Representations or Losses attributable to Taxes that are the obligation of Sellers as provided in Section 6.9 to the extent they exceed the amount of proceeds actually paid to such Seller at the Closing pursuant to Section 2.4(a).

 

(iv)                              In addition, Sellers shall not be liable for any Losses resulting from a breach of any of the representations, warranties and covenants set forth in ARTICLE III or ARTICLE IV of this Agreement or any of the covenants set forth in ARTICLE VI of this Agreement to the extent that:

 

(A)                               the Loss has been previously included as part of the Purchase Price pursuant to Section 2.4 or Section 2.6;

 

(B)                               the liability for such breach occurs or is increased as a result of the adoption or imposition of any Law not in force as of the Closing Date; or

 

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(C)                               the Losses would not have arising but for a change in accounting policy or practice of the Buyer or any Affiliate thereof after the Closing.

 

(v)                                 Any amounts received by Buyer from any insurers or other third parties with respect to any contractual rights to indemnification, reimbursement, offset or recovery against such third parties, shall reduce the amount of Losses for purposes of determining the amount of Sellers’ indemnity obligation under this ARTICLE IX.  If received after an indemnification payment has been made or satisfied under this ARTICLE IX, any amounts recovered from insurers or other third parties shall be paid within five (5) Business Days of receipt, to the Indemnifying Party up to the amount paid by the Indemnifying Party.

 

(b)                                 Indemnification by Buyer.  If the Closing occurs, and subject to the limitations and other provisions of this ARTICLE IX, Buyer hereby agrees to indemnify and hold harmless the Seller Indemnified Parties against any Losses described below that such Seller Indemnified Parties shall actually incur, to the extent that such Losses are:

 

(i)                                     Recoverable Losses which arise out of any breach of any representation or warranty made by Buyer in this Agreement; or

 

(ii)                                  Losses which arise out of any failure to perform any covenant made herein by Buyer.

 

(c)                                  Satisfaction of Claims.  Subject to Section 9.2(a)(iii) and the other limitations herein, any Loss indemnifiable pursuant to this ARTICLE IX shall be paid by wire transfer of immediately available funds from the Indemnifying Party to an account designated by the Indemnified Party within five (5) Business Days after the date that the Indemnifying Party has acknowledged and agreed to its liability for such Loss or, if applicable, the date a dispute with respect thereto is finally resolved in accordance with this Agreement, provided, however, that so long as any portion of the Indemnity Escrow Fund remains in the Indemnity Escrow Account (as defined in the Escrow Agreement), amounts payable by Sellers pursuant to Section 9.2(a), shall first be satisfied by payment from the Indemnity Escrow Account in accordance with the Escrow Agreement to the extent funds are available therein.  All indemnity payments made under this ARTICLE IX shall be treated as adjustments to the Purchase Price.  For purposes of determining the amount of Losses incurred by an Indemnified Party in accordance with this ARTICLE IX, such Losses shall be offset by the amount of any Income Tax benefit actually realized by the Indemnified Party with respect thereto (reduced by any Tax liability required by applicable Law resulting directly from accrual or receipt of the related indemnification payment).

 

9.3                               Procedures.

 

(a)                                 Notice of Claim.  Promptly after receipt by a Buyer Indemnified Party or a Seller Indemnified Party, as the case may be (an “Indemnified Party”), of notice of a Recoverable Loss or the commencement of any Litigation with respect to which it believes it is entitled to be indemnified under Section 9.2, the Indemnified Party shall, if a claim in respect thereto is to be made against Sellers, on the one hand, or Buyer, on the other hand (in either case, the “Indemnifying Party”) under this Article, notify the Indemnifying Party in writing of the

 

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commencement thereof; provided, however, that the omission to notify the Indemnifying Party shall not relieve it from any liability that it may have to the Indemnified Party to the extent that the Indemnifying Party is not prejudiced by such omission, and provided, further, that Section 6.9 shall govern the procedures with respect to any claim involving Taxes.

 

(b)                                 Settlement; Compromise.  An Indemnifying Party will not, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed), settle or compromise or consent to the entry of any judgment with respect to any pending or threatened Litigation unless such settlement, compromise or consent (i) by its terms only involves payment of monetary damages, (ii) obligates the Indemnifying Party to pay the full amount of such liability, and (iii) includes an unconditional release of the Indemnified Party from all liability arising out of such pending or threatened Litigation.  An Indemnified Party will not, without the prior written consent of the Indemnifying Party, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened Litigation.

 

(c)                                  Retention of Counsel.  If any Litigation shall be brought against an Indemnified Party and it shall notify the Indemnifying Party thereof in accordance with subsection (a) of this Section 9.3, the Indemnifying Party shall be entitled to assume the legal defense thereof.  The Indemnified Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party unless (i) the payment of such counsel’s fees and expenses shall have been specifically agreed upon in writing by the Indemnifying Party, (ii) the Indemnifying Party shall have failed to assume the defense of such action, (iii) the Indemnifying Party, and/or its counsel, shall have failed to defend against any or all claims in such action after the Indemnifying Party assumed such defense (and during any period the Indemnifying Party has not assumed such defense) or (iv) the named parties to any such Litigation (including any impleaded parties) include both the Indemnified Party and the Indemnifying Party, and the Indemnified Party shall have  been advised by such counsel that there is a conflict for counsel in representing both the Indemnifying Party and the Indemnified Party which cannot appropriately be waived.   In any such case, the Indemnifying Party shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for the Indemnified Party.  Except as aforesaid, after notice from the Indemnifying Party to the Indemnified Party of its election to assume the defense of such claim or such action, the Indemnifying Party shall not be liable to the Indemnified Party under this Section for any attorneys’ fees or other expenses subsequently incurred by the Indemnified Party in connection with the defense thereof unless after assuming such defense, the Indemnifying Party does not defend such action.

 

(d)                                 Resolution of Disputes.  In the case of an alleged Loss which is disputed by the Indemnifying Party, the Parties shall attempt in good faith to resolve their differences for a period of 60 days and, if the Parties are unable to resolve their differences within such period, the Indemnified Party or Parties may submit the matter to judicial proceedings (unless an alternate dispute resolution procedure is specified in this Agreement with respect to such dispute).

 

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9.4                               Excluded Damages and Remedy.  Neither Party shall be liable to any Indemnified Party for claims for punitive, special, incidental or exemplary damages, regardless of whether a claim is based on contract, tort (including negligence), strict liability, violation of any applicable deceptive trade practices act or similar Law or any other legal or equitable principle, and each Party (and by acceptance of the benefits of the provisions of this ARTICLE IX, each Indemnified Party) releases the Indemnifying Party from liability for any such damages; provided, however, that this Section 9.4 shall not apply to Losses resulting from any third party action.

 

9.5                               Environmental Remediation.

 

(a)                                 If Recoverable Losses, or Litigation related thereto, involve investigation, cleanup, remediation, or other response pursuant to Environmental Laws, or in connection with Hazardous Materials, the Indemnifying Party shall have the right but not the obligation to control, at its own expense, the performance of such investigation, cleanup, remediation, or other response (an “Indemnified Environmental Matter”).  The Parties also agree that the Indemnifying Party shall be responsible only for such investigation, cleanup, remediation or other response, and the costs thereof, based upon application of all available risk-based approaches and methods designed to minimize costs and to achieve the least stringent applicable cleanup criteria permitted by applicable Environmental Law consistent with the continued operation of the Business at the Real Property to which such Indemnified Environmental Matter relates or as required (i) by a directive of any Governmental Body; (ii) by a judgment rendered in favor of any Person; (iii) by the express terms of any lease for Leased Real Property (as in effect on the date hereof); or (iv) to respond to an imminent threat to the environment, human health or safety or health and safety of employees, that still allows for continued industrial use of affected property.

 

(b)                                 The Indemnified Party or the Indemnifying Party, as the case may be (the “Non-Controlling Party”), with respect to any Indemnified Environmental Matter controlled by the other party (such other party, “Controlling Party”), shall grant or arrange reasonable access by the authorized representatives and agents of the Controlling Party to any properties, documents or personnel as necessary to conduct any environmental investigation, cleanup, remediation or other response, and shall reasonably cooperate in the execution, completion, filing, and recording of all documents, use restrictions, institutional controls, notices, and other documents as will facilitate the conduct and completion of such investigation, cleanup, remediation, or other response.

 

(c)                                  With respect to any Indemnified Environmental Matter, the Controlling Party shall provide the Non-Controlling Party with the opportunity to (i) participate in any meetings or negotiations with any Governmental Authorities or other third parties, and shall provide reasonable advance notice of any such meetings or negotiations and (ii) review in advance and provide comments on any draft or final documents proposed to be submitted to Governmental Authorities or other third parties, and shall keep the Non-Controlling Party reasonably informed with respect to such Indemnified Environmental Matter, including, at the reasonable request of the Non-Controlling Party, providing copies of all documents provided to, or received from, any Governmental Body or any other third party in connection with such investigation, cleanup, remediation, or other response.  The Controlling Party shall not agree to

 

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any settlement or resolution of any Indemnified Environmental Matter, or any investigation, remediation, closure or post-closure plan with respect thereto, without the consent of the Non-Controlling Party, such consent not to be unreasonably withheld.

 

(d)                                 Notwithstanding anything herein to the contrary, if the Indemnifying Party shall fail to act promptly with respect to any Indemnified Environmental Matter the control or defense of which it has assumed pursuant to this Section 9.5, the Indemnified Party may, at the Indemnifying Party’s sole expense, exercise control or defense of such Indemnified Environmental Matter and may resolve such Indemnified Environmental Matter in the Indemnified Party’s sole discretion.

 

9.6                               Sole Remedy.  Except as provided in Section 2.6, Section 6.5(c) and Section 10.10, from and after the Closing, the provisions of this ARTICLE IX shall be the sole and exclusive remedy of each Party for (i) any breach of a Party’s representations or warranties contained in this Agreement, (ii) any breach of a Party’s covenants or other agreements contained in this Agreement, (iii) any other matters relating to this Agreement, including claims under applicable securities laws, including under Rule 10b-5 of the Securities Exchange Act of 1934, or (iv) any Loss arising out of any Asbestos Action relating to Southern Wall Products, Inc., but excluding claims for fraud.  Sellers and Buyer and their respective Affiliates are the only Persons entitled to exercise any remedy provided by this ARTICLE IX, and Sellers and Buyer for themselves and their respective Affiliates, release, waive and agree not to sue for every other remedy and/or claim that any of them may have against a Party with respect to this Agreement.  All representations and warranties set forth in this Agreement are contractual in nature only and subject to the sole and exclusive remedies set forth herein after the Closing.

 

9.7                               Materiality.  For purposes of indemnification under this ARTICLE IX, each of the representations and warranties in this Agreement that contains any qualifications as to materiality or Material Adverse Effect (or any correlative terms) shall be deemed to have been given as though there were no such qualifications in determining whether there has been any breach of any such representations or warranties, provided, the foregoing shall not apply with respect to Sections 3.5, 3.6 or 3.7(j).

 

ARTICLE X
 MISCELLANEOUS

 

10.1                        Further Assurances.  Sellers shall, at any time and from time to time on and after the Closing Date, upon request by Buyer, take or cause to be taken such actions and execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such instruments, documents, transfers and conveyances as may be required for the conveying, transferring, assigning and delivering of the Shares to Buyer.

 

10.2                        Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed to have been duly given or made (a) three (3) Business Days after the date of mailing, if delivered by registered or certified mail, postage prepaid, return receipt requested; (ii) upon delivery, if delivered personally; (iii) upon delivery, if sent by prepaid courier, with a record of receipt; or (iv) the next day after the date of dispatch, if sent by facsimile, telecopy or e-mail (if provided below, and with a copy simultaneously sent by

 

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registered or certified mail, postage prepaid, return receipt requested or by prepaid courier), to the Parties at the following addresses:

 

(i)                                     if to Buyer, to:

 

GYP HOLDINGS III CORP.

c/o AEA Investors LP

666 Fifth Avenue, 36th Floor

New York, NY 10055

Attention: General Counsel

Fax:                       (212) 702-0518

E-Mail: bburns@aeainvestors.com

 

with a required copy to:

 

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

Attention: Christopher Ewan, Esq.

Fax:                       (212) 859-4000

E-Mail: Christopher.Ewan@friedfrank.com

 

(ii)                                  if to Sellers or the Company before the Closing, to:

 

Gypsum Management and Supply, Inc.

1817 Fellowship Rd.

Tucker, GA 30084

Attention: G. Michael Callahan, Jr.

Fax:                       (770) 621-3082

E-Mail: gmcallahan@gms.com

 

with a required copy to:

 

Sutherland Asbill & Brennan, LLP

999 Peachtree St., NE; Suite 2300

Atlanta, Georgia 30309

Attention: John B. Miller

Fax:                       (404) 853-8806

E-Mail: john.miller@sutherland.com

 

(iii)                               if to any member of the Callahan Seller Group after the Closing, to:

 

G. Michael Callahan, Jr.

4439 East Brookhaven Drive

Atlanta, 30319

 

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gmcallahan@gms.com

 

(iv)                              if to any member of the Mueller Seller Group after the Closing, to

 

Richard K. Mueller

c/o Gypsum, Management and Supply, Inc.

1817-A Fellowship Road

Tucker, GA  30084

 

(v)                                 if to any member of the Whitcomb Seller Group after the Closing, to

 

Richard A. Whitcomb

c/o Gypsum, Management and Supply, Inc.

1817-A Fellowship Road

Tucker, GA  30084

 

in each of clauses (iii), (iv) and (v), with a required copy to:

 

Sutherland Asbill & Brennan, LLP

999 Peachtree St., NE; Suite 2300

Atlanta, Georgia 30309

Attention: John B. Miller

Fax:                       (404) 853-8806

E-Mail: john.miller@sutherland.com

 

A Party may change the address to which notice to it, or copies thereof, shall be addressed by giving notice thereof to the other Parties in conformity with the foregoing.

 

10.3                        Assignment; Governing Law.

 

(a)                                 Assignment.  This Agreement shall be binding upon, and shall be enforceable by and inure solely to the benefit of the Parties hereto and their respective successors and assigns; provided, that this Agreement and the rights and obligations hereunder shall not be assignable or transferable by any Party without the prior written consent of the other Parties hereto; provided, however, that Buyer shall, at any time and without the prior written consent of any other Party, have the right to assign all or part of its rights and obligations under this Agreement to one or more of its Affiliates (provided that no such assignment shall relieve the assigning party of any of its obligations under this Agreement); and provided, further, that Buyer and its subsidiaries may assign all of their rights, but not their obligations, under this Agreement to any Committed Financing Source or any Affiliate thereof as security for obligations to such Committed Financing Source in respect of the financing arrangements entered into in connection with the transactions contemplated hereby. Any attempted assignment in violation of this Section 10.3(a) shall be null and void.

 

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(b)                                 Governing Law.  This Agreement shall be governed by and construed in accordance with the Laws of the State of Delaware without regard to its conflict of laws doctrines.

 

(c)                                  Consent to Jurisdiction; Service of Process.

 

(i)                                     Each of the Parties hereby irrevocably acknowledges and consents that any legal action or proceeding brought with respect to any of the obligations arising under or relating to this Agreement shall be brought exclusively in the Delaware court of Chancery in and for New Castle County or, if such court lacks subject matter jurisdiction, in the United States District Court for the District of Delaware or any Superior Court of the state of Delaware, as the Party bringing such action or proceeding may elect, and each of the Parties hereby irrevocably submits to and accepts with regard to any such action or proceeding, for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.  Each Party hereby further irrevocably waives any claim that any such courts lack jurisdiction over such Party and agrees not to plead or claim, in any legal action or proceeding with respect to this Agreement or the transactions contemplated hereby brought in any of the aforesaid courts, that any such court lacks jurisdiction over such Party or that any such court is not a convenient forum for any such action or proceeding.  Each Party irrevocably consents to the service of process in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such Party, at its address for notices set forth in Section 10.2 of this Agreement, such service to become effective ten (10) days after such mailing.  Each Party hereby irrevocably waives any objection to such service of process and further irrevocably waives and agrees not to plead or claim in any action or proceeding commenced hereunder or under any other documents contemplated hereby that such service of process was in any way invalid or ineffective.  The foregoing shall not limit the rights of either Party to serve process in any other manner permitted by law.  The foregoing consents to jurisdiction shall not constitute general consents to service of process for any purpose except as provided above and shall not be deemed to confer rights on any Person other than the Parties to this Agreement.

 

(ii)                                  Notwithstanding the foregoing, each of the parties hereto agrees (A) that it will not bring or permit any of their Affiliates to bring or support any action, whether in law or in equity, whether in contract or in tort or otherwise, against any Committed Financing Party in any way relating to this Stock Purchase Agreement or any other related transactions, including, but not limited to, any dispute arising out of or relating in any way to the Debt Financing or the performance thereof, in any forum other than the Supreme Court of the State of New York, County of New York, or, if under applicable law exclusive jurisdiction is vested in the federal courts, the United States District Court for the Southern District of New York (and appellate courts thereof), (B) to waive and hereby waives, to the fullest extent permitted by law, any objection which any of them may now of hereafter have to the laying of venue of, and the defense of an inconvenient forum to the maintenance of, any such action in an such court, (C) that, except as specifically set forth in the Debt Commitment Letters, all claims or causes of action (whether at law, in equity, in contract, in tort or otherwise) against any of the Committed Financing Parties in any way relating to the Debt Commitment Letters or the performance thereof or the financings contemplated thereby, shall be exclusively governed by, and construed in accordance with, the internal laws of the State of New York, without giving effect to principles or rules or conflict of laws to the extent such principles or rules would require or

 

72

 

permit the application of laws of another jurisdiction and (D) that none of the Committed Financing Parties will have any liability to the Company or its Affiliates relating to or arising out of this Agreement, the Debt Financing or otherwise, whether at law, or equity, in contract, in tort or otherwise, and neither the Company nor any of its Affiliates will have any rights or claims against any of the Committed Financing Parties hereunder or thereunder.

 

(d)                                 Waiver of Jury Trial. Each of the Parties to this Stock Purchase Agreement hereby irrevocably waives all right to a trial by jury in any action, proceeding or counterclaim arising out of or relating to this Stock Purchase Agreement or the transactions contemplated hereby.

 

(e)                                  Enforcement.  The Parties agree that any judgment obtained in any action or proceeding referred to above may, in the discretion of such Party (or its permitted successors or assigns), be enforced in any jurisdiction, to the extent permitted by applicable Law.

 

(f)                                   Deemed Acceptance.  Each Indemnified Party not a party to this Agreement seeking the benefit of ARTICLE IX of this Agreement shall be deemed to have accepted and agreed to the provisions of this Section 10.3 as a condition to obtaining any benefits under ARTICLE IX as if such Person was one of the Parties named herein.

 

10.4                        Amendment and Waiver.  To be effective, any amendment or waiver under this Agreement must be in writing and signed by the Party against whom enforcement of the same is sought.  Neither the failure of any Party to exercise any right, power or remedy provided under this Agreement or to insist upon compliance by another Party with its obligations hereunder, nor any custom or practice of the Parties at variance with the terms hereof shall constitute a waiver by such Party or Parties of the right to exercise any such right, power or remedy or to demand such compliance.  Notwithstanding the foregoing, no modifications, amendments, waivers or terminations to the provisions of which the Committed Financing Party are expressly made third-party beneficiaries pursuant to Section 10.5 shall be permitted in a manner adverse to any Committed Financing Party without the prior written consent of the Committed Financing Source affiliated with such Committed Financing Party.

 

10.5                        Entire Agreement; No Third Party Beneficiaries.  This Agreement, the confidentiality agreement entered into by the Parties in connection with the transactions contemplated hereby, and the Schedules and Exhibits attached hereto (each of which are incorporated herein) set forth all of the promises, covenants, agreements, conditions and undertakings between the Parties with respect to the subject matter hereof, and supersede all prior or contemporaneous agreements and understandings, negotiations, inducements or conditions relating thereto, express or implied, oral or written.  This Agreement (including Section 6.10) is not intended to confer upon any Person other than the Parties any rights or remedies hereunder, except (a) as provided in Section 6.15(c), (b) for the provisions of ARTICLE IX, to the extent they relate to Indemnified Parties or, with respect to Section 9.5, any release parties, that are not a party to this Agreement, (c) that each Committed Financing Party shall be an express third party beneficiary only of Sections 8.2, 8.3, 10.3, and 10.4 (and any provision of this Stock Purchase Agreement to the extent a modification, amendment, waiver or termination of such provision would modify the substance of Sections 8.2, 8.3, 10.3, and 10.4),

 

73

 

and (d) that each intended third party beneficiary referred to herein shall be an express beneficiary of this Section 10.5.

 

10.6                        Severability.  If any term or other provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced under any rule of Law in any particular respect or under any particular circumstances, such term or provision shall nevertheless remain in full force and effect in all other respects and under all other circumstances, and all other terms, conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to Buyer or Sellers.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

 

10.7                        Counterparts; Signatures.  This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall be deemed one and the same instrument.  A signed copy of this Agreement (or a signature page hereto) delivered by facsimile, e-mail, “.pdf” format, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

10.8                        Arbitration.  If (i) an Objection is not resolved as set forth in Section 2.6(b), or (ii) the Parties dispute the interpretation of any provision of this Agreement as it relates to the determination of the Closing Date Working Capital pursuant to the terms of Section 2.6, the Objection or disagreement will be resolved, or the disputed provision will be interpreted, by binding arbitration; provided, that, subject to the provisions of Section 9.4, the foregoing shall not preclude equitable or other judicial relief to enforce the provisions of this Agreement or to preserve the status quo pending resolution of such Objection, disagreement or disputed provision.  Subject to the provisions of this Section, Sellers and Buyer will agree upon the rules of the arbitration prior to the arbitration and based upon the nature of the Objection or the dispute.  To the extent that the Parties cannot agree on the rules of the arbitration, then the Commercial Arbitration Rules of the AAA in effect on the date hereof, as modified by this Agreement, will apply.  As a minimum set of rules in the arbitration, the Parties agree as follows:

 

(a)                                 The arbitration will be held in Atlanta, Georgia before a single arbitrator appointed jointly by the Parties or, if the Parties are unable to agree upon a single arbitrator  within ten (10) Business Days after delivery of a notice of intention to arbitrate, before a single arbitrator appointed pursuant to the Commercial Arbitration Rules of the AAA.

 

(b)                                 The Party initiating arbitration will deliver to the other Party notice of its intention to arbitrate.  The notice will contain a statement setting forth in reasonable detail the nature of the Objection or the provision of the Agreement in dispute, the amount involved, if any, and the remedy sought.  The other Party will file an answering statement within ten (10) days of the notice, which will contain a statement setting forth in reasonable detail the other Party’s responses to the Objection or the provision of the Agreement in dispute.  If no answer is given by the other Party within the stated time, the Objection or disagreement will be assumed to

 

74

 

be denied.  Failure by the other Party to provide an answer will not operate to delay the arbitration.

 

(c)                                  Unless the Parties to the arbitration agree otherwise, no discovery will take place except as provided in this subsection.  Not less than 45 days before the date of the hearing, each Party shall provide to the other Party copies of all exhibits, affidavits and other evidence it intends to submit at the hearing, along with the identification of any witnesses to be called and a summary of anticipated testimony.  Based on a review of the information provided, and not less than 30 days before the date of the hearing, each Party will provide to the other Party, copies of any additional exhibits, affidavits and other evidence it intends to submit at the hearing, along with the identification of any additional witnesses to be called and a summary of anticipated testimony.  The arbitrator will be authorized to resolve any disputes concerning the exchange of information.

 

(d)                                 The arbitration hearing will take place over no more than five Business Days, beginning not more than 90 days after the date of the notice of arbitration; provided, however, that any failure to comply with the deadlines set forth in this subsection shall not be a basis for setting aside, not enforcing, or otherwise challenging the validity of, the award.

 

(e)                                  The arbitrator will deliver his or her decision in writing within ten (10) Business Days after the completion of the arbitration hearing; provided, however, that any failure to comply with the deadlines set forth in this subsection shall not be a basis for setting aside, not enforcing, or otherwise challenging the validity of, the award.

 

(f)                                   The arbitrator will specify the basis for his or her decision, the resolution of the Objection or dispute and a breakdown of any amounts awarded, if any, and the basis of any other remedy.  The arbitrator’s decision will be considered a final and binding resolution of the Objection or dispute, will not be subject to appeal and may be entered as an order in any court of competent jurisdiction in the United States.  Each Party agrees to submit to the jurisdiction of any such court for purposes of the enforcement of any such order.  With respect to matters subject to arbitration pursuant to this Section 10.8, neither Party will sue the other except for enforcement of the arbitrator’s decision if the other Party is not performing in accordance with the arbitrator’s decision.  The provisions of this Agreement will be binding on the arbitrator.

 

(g)                                  Any arbitration proceeding hereunder will be conducted on a confidential basis.  The arbitrator’s discretion to fashion remedies hereunder will be no broader than the legal and equitable remedies available to a court.  Each Party shall pay one half of any fees and expenses required by the AAA in advance of the rendering of an award, and if one Party fails to pay its share of such fees and expenses, the other Party may pay the same and shall be entitled to have such amount entered with interest as part of the award in the event the paying Party is the prevailing Party.

 

10.9                        Transfer of Privilege; Conflicts.

 

(a)                                 Buyer acknowledges the fact that Sutherland Asbill & Brennan LLP (“Sutherland”) has represented the GMS Entities and the Sellers in connection with the transactions provided for herein and agrees that, effective upon the Closing, the GMS Entities

 

75

 

shall, without the necessity of further documentation of transfer, be deemed to have irrevocably assigned and transferred to the Sellers all of their right to, title to and interest in all communications with, and work product of, Sutherland as they relate to this Agreement, the documents related hereto and the preparation and negotiation thereof, together with all written or other materials consisting of, containing, summarizing or embodying such communications and work product (collectively, the “Privilege Items”).  Buyer acknowledges and agrees that the intent and effect of this provision is to grant the Sellers control over the exercise of the attorney-client privilege held by the Company, if any, in respect of this Agreement and the Privilege Items, notwithstanding any failure by the Sellers to cause the Privilege Items to be removed or deleted from the GMS Entities’ files, electronic or otherwise.  Buyer agrees, after the Closing, to refrain from, and to cause the GMS Entities to refrain from, knowingly waiving the attorney-client privilege belonging to the Company, if any, relating to any matter relating to this Agreement or the Privilege Items occurring before the Closing or intentionally disclosing the content of communications or work product related to such privilege to any person, without the express written consent of the Principal Sellers (which consent will not be unreasonably withheld, delayed or conditioned).

 

(b)                                 If, subsequent to the Closing, any dispute (a “Dispute”) arises relating in any manner to this Agreement or any agreement delivered in connection herewith between one or more Sellers on the one hand, and Buyer or any of its Affiliates on the other hand, Buyer, for itself and its Affiliates, hereby consent to Sutherland’s representation of the Seller or Sellers with respect to such Disputes and waive any conflict of interest that may exist by reason of such representation.  Buyer acknowledges that Sutherland, in connection with its representation of the GMS Entities, has and will have obtained confidential information of the GMS Entities, and agree that such information may be used on behalf of the Sellers against them in connection with such Dispute at the sole discretion of the Sellers, notwithstanding a claim of privilege or work-product the Company may otherwise be entitled to assert, if any.

 

10.10                 Specific Performance.

 

(a)                                 The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity. Each party hereby waives any requirement for the securing or posting of any bond in connection with such remedy.  Subject to the specific restrictions in Sections 8.2 and Section 10.10(b), each party further agrees that the only permitted objection that it may raise in response to any action for equitable relief is that it contests the existence of a breach or threatened breach of this Agreement.

 

(b)                                 Notwithstanding anything in this Agreement to the contrary, it is acknowledged and agreed that Sellers and the Company shall be entitled to seek specific performance of the Buyer’s obligations to consummate the transactions contemplated hereby, and such right shall be available only in the event that each of the following conditions precedent has been satisfied prior to seeking specific performance: (A) the conditions set forth in Section 7.1 (other than those conditions that by their nature are to be satisfied at the Closing, but subject to such conditions being capable of being satisfied assuming the Closing occurs) have been satisfied and continue to be satisfied on the date the Closing is required to be consummated by

 

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the Buyer pursuant to the terms of this Agreement, (B) the Sellers irrevocably certify to the Buyer in writing that the Sellers and the Company are ready, willing and able to consummate the Closing on such date and that such Persons will consummate the Closing and the transactions contemplated hereby assuming the funding by the Committed Financing Sources, (C) the Buyer fails to consummate the Closing within two (2) Business Days following such written certification, and (D) the Debt Financing (or the Alternative Financing, as the case may be) has been funded or would be funded at the Closing; provided, that neither Sellers nor the Company shall be entitled to seek the remedy of specific performance with respect to the Buyer’s rights under the Debt Commitment Letters against the Committed Financing Sources.

 

(c)                                  While Sellers and the Company may pursue both a grant of specific performance under this Section 10.10 and the payment of the Buyer Termination Fee under Section 8.2, under no circumstances shall Sellers and/or the Company be permitted or entitled to receive both (i) a grant of specific performance that permits the consummation of the transactions contemplated by this Agreement, in accordance with the terms of this Agreement and (ii) monetary damages in connection with this Agreement or any termination of this Agreement, including all or any portion of the Buyer Termination Fee.

 

[Remainder of this page intentionally left blank.]

 

77

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

 

 

	
COMPANY:
    	
GYPSUM MANAGEMENT AND SUPPLY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ G. Michael Callahan, Jr.
    
	
 
    	
Name:
    	
G. Michael Callahan, Jr.
    
	
 
    	
Title:
    	
President
    

 

[Signatures continue on next page.]

 

Signature Page to Stock Purchase Agreement

 

78

 

	
BUYER:
    	
GYP HOLDINGS III CORP.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ J. Louis Sharpe
    
	
 
    	
Name:
    	
J. Louis Sharpe
    
	
 
    	
Title:
    	
Vice President
    

 

[Signatures continue on next page.]

 

Signature Page to Stock Purchase Agreement

 

79

 

[Continuation of Signatures]

 

	
SELLERS:
    	
 
    
	
 
    	
/s/ Richard A. Whitcomb
    
	
 
    	
Name:
    	
Richard A. Whitcomb
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RICHARD A. WHITCOMB REVOCABLE TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard A. Whitcomb
    
	
 
    	
Name:
    	
Richard A. Whitcomb
    
	
 
    	
Title:
    	
Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHIELDS AVENUE MANAGEMENT, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joan M. Whitcomb
    
	
 
    	
Name:
    	
Joan M. Whitcomb
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Richard K. Mueller
    
	
 
    	
Name:
    	
RICHARD K. MUELLER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MUELLER FAMILY INVESTMENT, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard K. Mueller
    
	
 
    	
Name:
    	
Richard K. Mueller
    
	
 
    	
Title:
    	
Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ G. Michael Callahan, Jr.
    
	
 
    	
Name:
    	
G. MICHAEL CALLAHAN, JR.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
2009 G. MICHAEL CALLAHAN, JR. FAMILY TRUST
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph P. Callahan
    
	
 
    	
Name:
    	
Joseph P. Callahan
    
	
 
    	
Title:
    	
Trustee
    

 

Signature Page to Stock Purchase Agreement

 

80

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