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10.7

GUARANTY AND SECURITY AGREEMENT

THIS GUARANTY AND SECURITY AGREEMENT (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Security Agreement”), dated as of October 28, 2020, is made by THE DIXIE GROUP, INC., a Tennessee corporation (“Dixie”), and TDG OPERATIONS, LLC, a Georgia limited liability company (“TDG” and, together with Dixie, collectively, “Borrower”) (Borrower is sometimes collectively referred to herein as “Grantors” and each individually as a “Grantor”), in favor of FIFTH THIRD BANK, NATIONAL ASSOCIATION, as agent (in such capacity, “Agent”) for the lenders (“Lenders”) from time to time party to the Credit Agreement (as defined below).
RECITALS
A.Pursuant to that certain Credit Agreement of even date herewith by and among Grantors, the other Loan Parties from time to time party thereto, Agent and Lenders (including all annexes, exhibits and schedules thereto, as the same may be amended, restated, supplemented or  otherwise modified from time to time, the “Credit Agreement”), Lenders have agreed to extend certain financial accommodations to or for the direct or indirect benefit of Grantors.
B.In order to induce Agent and Lenders to enter into the Credit Agreement and the other Loan Documents and to induce Lenders to make the Revolving Loans and to incur Letter of Credit Obligations as provided for in the Credit Agreement, (i) each Grantor has agreed to grant a continuing Lien on the Collateral (as defined below) to secure the Obligations and (ii) each Grantor (other than Borrower) (each, a “Guarantor” and collectively, the “Guarantors”) has agreed to guaranty the Guarantied Obligations.
C.Each Guarantor is an Affiliate or a Subsidiary of Borrower and, as such, will benefit by virtue of the financial accommodations extended to Borrower by Lenders.  These recitals shall be construed as part of this Security Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantors and Agent agree as follows:
1.DEFINED TERMS.  Unless otherwise defined herein, capitalized terms or matters of construction defined or established in Appendix A to the Credit Agreement shall be applied herein as defined or established therein.  All other undefined terms contained in this Security Agreement, unless the context indicates otherwise, shall have the meanings provided for by the Code to the extent the same are used or defined therein.
In addition to those terms defined elsewhere in this Security Agreement, as used in this Security Agreement, the following terms shall have the following meanings:

“Acquisition Document Undertakings” means any and all representations, warranties, covenants and indemnification agreements and other agreements made to or for the benefit of any Grantor pursuant to any and all Acquisition Documents, including without limitation any escrow agreement entered into by any Grantor in connection therewith.
“Acquisition Documents” means the agreements, instruments and documents evidencing, or entered into in connection with, an Acquisition (including a Permitted Acquisition) by a Grantor.
“Excluded Property” has the meaning ascribed to it in the Credit Agreement.
“Intercompany Note” means any promissory note evidencing loans made by any Grantor to any other Grantor.
“Issuers” means the collective reference to each issuer of any Investment Property.
“Guarantied Obligations” means all of the Obligations (including any Obligations due and owing with respect to Bank Products) now or hereafter existing, whether for principal, interest (including any interest that accrues after the commencement of an Insolvency Event, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Event), fees (including the fees provided for in the Fee Letter), expenses (including any fees or expenses that accrue after the commencement of an Insolvency Event, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Event), or otherwise, and any and all expenses (including reasonable counsel fees and expenses) incurred by Agent, any Lender, or any provider of Bank Products (or any of them) in enforcing any rights under the any of the Loan Documents.  Without limiting the generality of the foregoing, Guarantied Obligations shall include all amounts that constitute part of the Guarantied Obligations and would be owed by Borrower to Agent, or any Lender Party but for the fact that such amounts are unenforceable or not allowable, including due to the existence of a bankruptcy, reorganization, other Insolvency Event or similar proceeding involving Borrower or any Guarantor; provided that, anything to the contrary contained in the foregoing notwithstanding, the Guarantied Obligations shall exclude any Excluded Swap Obligation.
“Lender Parties” means, collectively, each Lender, each provider of Bank Products and each provider of Rate Contracts.
“Pledged Notes” means all promissory notes listed on Schedule IV, all Intercompany Notes at any time issued to any Grantor and all other promissory notes issued to or held by any Grantor (other than promissory notes issued in connection with extensions of trade credit by any Grantor in the ordinary course of business). 
“Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Guarantor that has total assets exceeding $10,000,000 at the time the relevant guaranty, keepwell, or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other person as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an 

“eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
“Securities Act” means the Securities Act of 1933, as amended.
2.GUARANTY.
(a)Guaranty.  In recognition of the direct and indirect benefits to be received by each Guarantor from the proceeds of the Revolving Loans, the issuance of the Letters of Credit, and the entering into of the Bank Products and by virtue of the financial accommodations to be made to Borrower, each Guarantor, jointly and severally, hereby unconditionally and irrevocably guarantees as a primary obligor and not merely as a surety the full and prompt payment when due, whether upon maturity, acceleration, or otherwise, of all of the Guarantied Obligations.  If any or all of the Obligations constituting Guarantied Obligations becomes due and payable, each Guarantor, unconditionally and irrevocably, and without the need for demand, protest, or any other notice or formality, promises to pay such indebtedness to Agent, for the benefit of Lender Parties, together with any and all expenses  that may be incurred by Agent or any Lender Party in demanding, enforcing, or collecting any of the Guarantied Obligations (including the enforcement of any Collateral for such Guarantied Obligations or any Collateral for the obligations of the Guarantors under this Guaranty).  If claim is ever made upon Agent, any Lender Party for repayment or recovery of any amount or amounts received in payment of or on account of any or all of the Guarantied Obligations and any of Agent or any Lender Party repays all or part of said amount by reason of (i) any judgment, decree, or order of any court or administrative body having jurisdiction over such payee or any of its property, or (ii) any settlement or compromise of any such claim effected by such payee with any such claimant (including Borrower or any Guarantor), then and in each such event, each Guarantor agrees that any such judgment, decree, order, settlement, or compromise shall be binding upon such Guarantor, notwithstanding any revocation (or purported revocation) of this Guaranty or other instrument evidencing any liability of any Grantor, and each Guarantor shall be and remain liable to the aforesaid payees hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by any such payee.
(b)Bankruptcy.  Additionally, each Guarantor unconditionally and irrevocably guarantees the payment of any and all of the Guarantied Obligations to Agent, for the benefit of Lender Parties, whether or not due or payable by any Loan Party upon the occurrence of any of the events specified in Sections 9.1(h) or 9.1(i) of the Credit Agreement, and irrevocably and unconditionally promises to pay such indebtedness to Agent, for the benefit of Lender Parties, without the requirement of demand, protest, or any other notice or other formality, in lawful money of the United States.
(c)Liability Absolute.  The liability of each Guarantor hereunder is primary, absolute, and unconditional, and is independent of any security for or other guaranty of the Guarantied Obligations, whether executed by any other Guarantor or by any other Person, and the liability of each Guarantor hereunder shall not be affected or impaired by (i) any payment on, or in reduction of, any such other guaranty or undertaking, (ii) any dissolution, termination, or increase, decrease, or change in personnel by any Grantor, (iii) any payment made to Agent or 

any Lender Party on account of the Obligations which Agent or such Lender Party repays to any Grantor pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding (or any settlement or compromise of any claim made in such a proceeding relating to such payment), and each Guarantor waives any right to the deferral or modification of its obligations hereunder by reason of any such proceeding, or (iv) any action or inaction by Agent or any Lender Party, or (v) any invalidity, irregularity, avoidability, or unenforceability of all or any part of the Obligations or of any security therefor.
(d)Continued Effect.  This Guaranty includes all present and future Guarantied Obligations including any under transactions continuing, compromising, extending, increasing, modifying, releasing, or renewing the Guarantied Obligations, changing the interest rate, payment terms, or other terms and conditions thereof, or creating new or additional Guarantied Obligations after prior Guarantied Obligations have been satisfied in whole or in part.  To the maximum extent permitted by law, each Guarantor hereby waives any right to revoke this Guaranty as to future Guarantied Obligations.  If such a revocation is effective notwithstanding the foregoing waiver, each Guarantor acknowledges and agrees that (i) no such revocation shall be effective until written notice thereof has been received by Agent, (ii) no such revocation shall apply to any Guarantied Obligations in existence on the date of receipt by Agent of such written notice (including any subsequent continuation, extension, or renewal thereof, or change in the interest rate, payment terms, or other terms and conditions thereof), (iii) no such revocation shall apply to any Guarantied Obligations made or created after such date to the extent made or created pursuant to a legally binding commitment of Agent or any Lender Party in existence on the date of such revocation, (iv) no payment by any Guarantor, Borrower, or from any other source, prior to the date of Agent’s receipt of written notice of such revocation shall reduce the maximum obligation of such Guarantor hereunder, and (v) any payment by Borrower or from any source other than such Guarantor subsequent to the date of such revocation shall first be applied to that portion of the Guarantied Obligations as to which the revocation is effective and which are not, therefore, guarantied hereunder, and to the extent so applied shall not reduce the maximum obligation of such Guarantor hereunder.  This Guaranty shall be binding upon each Guarantor, its successors and assigns, and shall inure to the benefit of and be enforceable by Agent (for the benefit of Lender Parties) and its successors, transferees, or assigns.
(e)Guaranty of Payment.  The guaranty by each Guarantor hereunder is a guaranty of payment and not of collection.  The obligations of each Guarantor hereunder are independent of the obligations of any other Guarantor or Grantor or any other Person and a separate action or actions may be brought and prosecuted against one or more Guarantors whether or not action is brought against any other Guarantor or Grantor or any other Person and whether or not any other Guarantor or Grantor or any other Person be joined in any such action or actions.  Each Guarantor waives, to the fullest extent permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement hereof.  Any payment by any Grantor or other circumstance which operates to toll any statute of limitations as to any Grantor shall operate to toll the statute of limitations as to each Guarantor.

(f)Actions by Agent, etc.  Each Guarantor authorizes Agent and Lender Parties, without notice or demand, and without affecting or impairing its liability hereunder, from time to time to:
(i)change the manner, place, or terms of payment of, or change or extend the time of payment of, renew, increase, accelerate, or alter:  (A) any of the Obligations (including any increase or decrease in the principal amount thereof or the rate of interest or fees thereon); or (B) any security therefor or any liability incurred directly or indirectly in respect thereof, and this Guaranty shall apply to the Obligations as so changed, extended, renewed, or altered;
(ii)take and hold security for the payment of the Obligations and sell, exchange, release, impair, surrender, realize upon, collect, settle, or otherwise deal with in any manner and in any order any property at any time pledged or mortgaged to secure the Obligations or any of the Guarantied Obligations (including any of the obligations of all or any Guarantor under this Guaranty) incurred directly or indirectly in respect thereof or hereof, or any offset on account thereof;
(iii)exercise or refrain from exercising any rights against any Grantor;
(iv)release or substitute any one or more endorsers, guarantors, any Grantor, or other obligors;
(v)settle or compromise any of the Obligations, any security therefor, or any liability (including any of those of any of the Guarantors under this Guaranty) incurred directly or indirectly in respect thereof or hereof, and may subordinate the payment of all or any part thereof to the payment of any liability (whether due or not) of any Grantor to its creditors;
(vi)apply any sums by whomever paid or however realized to any liability or liabilities of any Grantor to Agent or any Lender Party regardless of what liability or liabilities of such Grantor remain unpaid;
(vii)consent to or waive any breach of, or any act, omission, or default under, this Security Agreement, any other Loan Document, any agreement in respect of Bank Products, any Rate Contract or any of the instruments or agreements referred to herein or therein, or otherwise amend, modify, or supplement this Security Agreement, any other Loan Document, any agreement in respect of  Bank Products, any Rate Contract or any of such other instruments or agreements; or
(viii)take any other action that could, under otherwise applicable principles of law, give rise to a legal or equitable discharge of one Guarantor from all or part of its liabilities under this Guaranty.
(g)Capacity.  It is not necessary for Agent or any Lender Party to inquire into the capacity or powers of any Guarantor or the officers, directors, partners or agents acting or purporting to act on their behalf, and any Obligations made or created in reliance upon the professed exercise of such powers shall be guarantied hereunder.

(h)Waiver of Certain Defenses.  Each Guarantor jointly and severally guarantees that the Guarantied Obligations will be paid strictly in accordance with the terms of the Loan Documents, regardless of any law, regulation, or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Agent or any Lender Party with respect thereto.  The obligations of each Guarantor under this Guaranty are independent of the Guarantied Obligations, and a separate action or actions may be brought and prosecuted against each Guarantor to enforce such obligations, irrespective of whether any action is brought against any other Guarantor or whether any other Guarantor is joined in any such action or actions.  The liability of each Guarantor under this Guaranty shall be absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defense it may now or hereafter have in any way relating to, any or all of the following:
(i)any lack of validity or enforceability of any Loan Document or any agreement or instrument relating thereto;
(ii)any change in the time, manner, or place of payment of, or in any other term of, all or any of the Guarantied Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document, including any increase in the Guarantied Obligations resulting from the extension of additional credit;
(iii)any taking, exchange, release, or non-perfection of any Lien in and to any Collateral, or any taking, release, amendment, waiver of, or consent to departure from any other guaranty, for all or any of the Guarantied Obligations;
(iv)the existence of any claim, set-off, defense, or other right that any Guarantor may have at any time against any Person, including Agent or any Lender Party;
(v)any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Guarantied Obligations or any security therefor;
(vi)any right or defense arising by reason of any claim or defense based upon an election of remedies by Agent or any Lender Party including any defense based upon an impairment or elimination of such Guarantor’s rights of subrogation, reimbursement, contribution, or indemnity of such Guarantor against any other Grantor or any guarantors or sureties;
(vii)any change, restructuring, or termination of the corporate, limited liability company, or partnership structure or existence of any Grantor; or
(viii)any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor or any other guarantor or surety.

(i)General Waivers.
(i)Each Guarantor waives any right (except as shall be required by applicable statute and cannot be waived) to require Agent or any Lender Party to (i) proceed against any other Grantor or any other Person, (ii) proceed against or exhaust any security held from any other Grantor or any other Person, or (iii) protect, secure, perfect, or insure any security interest or Lien on any property subject thereto or exhaust any right to take any action against any other Grantor, any other Person, or any Collateral or other collateral for the Obligations, or (iv) pursue any other remedy in Agent’s any Lender Party’s power whatsoever.  Each Guarantor waives any defense based on or arising out of any defense of any Grantor or any other Person, other than payment of the Guarantied Obligations to the extent of such payment, based on or arising out of the disability of any Grantor or any other Person, or the validity, legality, or unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any Grantor other than payment of the Obligations to the extent of such payment.  Agent may, at the election of the Requisite Lenders, foreclose upon any Collateral held by Agent by one or more judicial or nonjudicial sales or other dispositions, whether or not every aspect of any such sale is commercially reasonable or otherwise fails to comply with applicable law or may exercise any other right or remedy Agent or any Lender Party may have against any Grantor or any other Person, or any security, in each case, without affecting or impairing in any way the liability of any of the Guarantors hereunder except to the extent the Guarantied Obligations have been paid.
(ii)Each Guarantor waives all presentments, demands for performance, protests and notices, including notices of nonperformance, notices of protest, notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence, creation, or incurring of new or additional Obligations or other financial accommodations.  Each Guarantor waives notice of any (Default or Event of Default under any of the Loan Documents.  Each Guarantor assumes all responsibility for being and keeping itself informed of each Grantor’s financial condition and assets and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope, and extent of the risks which each Guarantor assumes and incurs hereunder, and agrees that neither Agent nor any Lender Party shall have any duty to advise any Guarantor of information known to them regarding such circumstances or risks.
(iii)To the fullest extent permitted by applicable law, each Guarantor hereby waives:  (A) any right to assert against Agent or any Lender Party any defense (legal or equitable), set-off, counterclaim, or claim which each Guarantor may now or at any time hereafter have against Borrower or any other party liable to Agent or any Lender Party; (B) any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Guarantied Obligations or any security therefor; (C) any right or defense arising by reason of any claim or defense based upon an election of remedies by Agent or any Lender Party including any defense based upon an impairment or elimination of such Guarantor’s rights of subrogation, reimbursement, contribution, or indemnity of such Guarantor against Borrower or other guarantors or sureties; and (D) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder or the enforcement thereof, and any act which shall defer or delay the 

operation of any statute of limitations applicable to the Guarantied Obligations shall similarly operate to defer or delay the operation of such statute of limitations applicable to such Guarantor’s liability hereunder.
(iv)No Guarantor will exercise any rights that it may now or hereafter acquire against any Grantor or any other guarantor that arise from the existence, payment, performance or enforcement of such Guarantor’s obligations under this Guaranty, including any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of Agent or any Lender Party against any Grantor or any other guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including the right to take or receive from any Grantor or any other guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until all of the Guarantied Obligations and all other amounts payable under this Guaranty shall have been paid in full in cash and the Revolving Loan Commitments have been terminated.  If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence, such amount shall be held in trust for the benefit of Agent, for the benefit of Lender Parties, and shall forthwith be paid to Agent to be credited and applied to the Guarantied Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in accordance with the terms of the Credit Agreement, or to be held as Collateral for any Guarantied Obligations or other amounts payable under this Guaranty thereafter arising.  Notwithstanding anything to the contrary contained in this Guaranty, no Guarantor may exercise any rights of subrogation, contribution, indemnity, reimbursement or other similar rights against, and may not proceed or seek recourse against or with respect to any property or asset of, any other Grantor (the “Foreclosed Grantor”), including after payment in full of the Obligations, if all or any portion of the Obligations have been satisfied in connection with an exercise of remedies in respect of the Pledged Equity of such Foreclosed Grantor whether pursuant to this Security Agreement or otherwise
(v)Each Guarantor represents, warrants, and agrees that each of the waivers set forth above is made with full knowledge of its significance and consequences and that if any of such waivers are determined to be contrary to any applicable law or public policy, such waivers shall be effective to the maximum extent permitted by law.
(j)Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Grantor to guaranty and otherwise honor all Obligations in respect of Swap Obligations.  The obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect until payment in full of the Guarantied Obligations.  Each Qualified ECP Guarantor intends that this Section 2(j) constitute, and this Section 2(j) shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Grantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

(k)Maximum Liability.  Notwithstanding any other provision of this Section 2, the amount guaranteed by each Guarantor hereunder shall be limited  to a maximum amount as would not, after giving effect to such maximum amount, render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or comparable Laws.  In determining the limitations, if any, on the amount of any Guarantor’s obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto that any rights of subrogation, indemnification or contribution which such Guarantor may have under this Section 2, any other agreement or applicable law shall be taken into account.  Subject to the restrictions, limitations and other terms of this Security Agreement (including Section 2(i)(iv)), each Guarantor hereby agrees that to the extent that a Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor hereunder which has not paid its proportionate share of such payment.
3.GRANT OF LIEN.
(a)Grant.  To secure the prompt and complete payment, performance and observance of all of the Obligations, each Grantor hereby grants to Agent, for the benefit of Agent and Lender Parties, a Lien upon and security interest in all of its right, title and interest in, to and under the following personal property of such Grantor, whether now owned by or owing to, or hereafter acquired by or arising in favor of, such Grantor (including under any trade names, styles or derivations thereof), and whether owned by or consigned by or to, or leased from or to, such Grantor, and regardless of where located (all of which being hereinafter collectively referred to as the “Collateral”), including:
(i)all Accounts;
(ii)all Chattel Paper;
(iii)all Contracts;
(iv)all Deposit Accounts, including all Blocked Accounts, Concentration Accounts, Disbursement Accounts, and all other bank accounts and all funds on deposit therein;
(v)all Documents;
(vi)all Goods (excluding Machinery, Equipment, and Fixtures);
(vii)all Instruments;
(viii)all Letter of Credit Rights;
(ix)all money, cash or cash equivalents;
(x)all Supporting Obligations;

(xi)all Commercial Tort Claims; 
(xii)all business interruption insurance proceeds; and
(xiii)to the extent not otherwise included in the foregoing, all Proceeds, products, tort claims, insurance claims and other rights to payment and all accessions to, substitutions and replacements for, and rents and profits of, each of the foregoing.
Notwithstanding anything contained in this Security Agreement to the contrary, the term “Collateral” shall not include the Excluded Property.
(b)Setoff.  In addition, to secure the prompt and complete payment, performance and observance of the Obligations and in order to induce Agent and Lenders as aforesaid, each Grantor hereby grants to Agent, for the benefit of Agent and Lenders Parties, a right of setoff against the property of such Grantor held by Agent or any Lender Party, including all property described above in Section 3(a) now or hereafter in the possession or custody of, or in transit to, Agent or any Lender, for any purpose (including safekeeping, collection or pledge), for the account of such Grantor, or as to which such Grantor may have any right or power.
4.AGENT’S AND LENDERS’ RIGHTS; LIMITATIONS ON AGENT’S AND LENDERS’ OBLIGATIONS.
(a)No Liability Under Contracts.  It is expressly agreed by each Grantor that, anything herein to the contrary notwithstanding, such Grantor shall remain liable under any and all Contracts or License to which it is a party to observe and perform all the conditions and obligations to be observed and performed by it thereunder.  Neither Agent nor any Lender Party shall have any obligation or liability under any such Contract or License by reason of or arising out of this Security Agreement or the granting herein of a Lien thereon or the receipt by Agent or any Lender Party of any payment relating to any such Contract or License pursuant hereto.  Neither Agent nor any Lender Party shall be required or obligated in any manner to perform or fulfill any of the obligations of any Grantor under or pursuant to any such Contract or License, or to make any payment, or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any such Contract or License, or to present or file any claims, or to take any action to collect or enforce any performance or the payment of any amounts that may have been assigned to it or to which it may be entitled at any time or times.
(b)Notifying Account Debtors.  Agent may, at any time after an Event of Default shall have occurred and be continuing, without prior notice to any Grantor, notify Account Debtors obligated under Accounts of any Grantor and other Persons obligated on Collateral that Agent has a Lien thereon and that payments thereunder shall be made directly to Agent, for the benefit of Agent and Lender Parties.  Furthermore, if Agent determines in the exercise of its good faith credit judgment that Account Debtor’s contra accounts or set off rights may cause Borrowing Availability to be less than zero, Agent may notify Account Debtors that Agent has a Lien thereon, and that payments shall be made directly to Agent, for the benefit of Agent and Lenders.  Upon the request of Agent after an Event of Default shall have occurred and 

be continuing, each Grantor shall so notify any such Account Debtor or other Persons obligated on the Collateral, and once any such notice has been given by any Grantor, no Grantor shall give any contrary instructions to such Account Debtor or other Person without Agent’s prior written consent.
(c)Verification; Information.  Agent may, at any time, in Agent’s own name, in the name of a nominee of Agent, in the name of any Grantor or in the name of a nominee of any Grantor, communicate (by mail, telephone, facsimile or otherwise) with Account Debtors obligated under Accounts of such Grantor and other Persons obligated on Collateral to verify with such Persons, to Agent’s satisfaction, the existence, amount and terms of, and any other matter relating to, any such Accounts or other Collateral.  If an Event of Default shall have occurred and be continuing, each Grantor, at its own expense, shall cause the independent certified public accountants then engaged by such Grantor to prepare and deliver to Agent and each Lender at any time and from time to time promptly upon Agent’s request the following reports with respect to each Grantor:  (i) a reconciliation of all Accounts; (ii) an aging of all Accounts; (iii) trial balances; and (iv) a test verification of such Accounts as Agent may request.  Each Grantor, at its own expense, shall deliver to Agent the results of each physical verification, if any, which such Grantor may in its discretion have made, or caused any other Person to have made on its behalf, of all or any portion of its Inventory.
(d)Payments Held in Trust.  If, notwithstanding the giving of any notice hereunder directing that payments be made directly to Agent, any Account Debtor of any Grantor or any other Person obligated on Collateral shall make payments to a Grantor, such Grantor shall hold all such payments it receives in trust for Agent, for the benefit of Agent and Lender Parties, without commingling the same with other funds or property of, or held by, such Grantor and shall deliver the same to Agent in the manner set forth in Annex B to the Credit Agreement, in the identical form received, together with any necessary endorsements.
(e)Other Rights.  Agent may, at any time after an Event of Default shall have occurred and be continuing, without prior notice to any Grantor and without demand or other process, and without payment of any rent or any other charge, (i) enter the premises of any Grantor and, without breach of the peace, until Agent completes the enforcement of its rights in the Collateral, take possession of such premises or place custodians in exclusive control thereof, remain on such premises and use the same and any Grantor’s Equipment for the purpose of collecting or realizing upon any of the Collateral and (ii) exercise any and all of its rights under any and all of the Collateral Documents.
5.REPRESENTATIONS AND WARRANTIES.  Each Grantor represents and warrants that:
(a)Rights in the Collateral.  Such Grantor has rights in and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder and such Collateral is free and clear of any and all Liens other than Permitted Encumbrances.
(b)Filings.  As of the Closing Date, no effective security agreement, financing statement, equivalent security or Lien instrument, continuation statement, or financing 

statement amendment or assignment covering all or any part of the Collateral is on file or of record in any public office, except such as may have been filed (i) by any Grantor in favor of Agent pursuant to this Security Agreement or the other Loan Documents, or (ii) in connection with any other Permitted Encumbrance.
(c)Liens.  This Security Agreement is effective to create a valid and continuing Lien upon the Collateral.  Upon filing of appropriate financing statements in the jurisdictions listed in Schedule I hereto, Agent, for the benefit of Agent and Lenders, shall have a perfected Lien on the Collateral with respect to which a Lien may be perfected by filing pursuant to the Code, which Lien (i) shall be prior to all other Liens, except Permitted Encumbrances that would be prior to Liens in favor of Agent, for the benefit of Agent and Lender Parties, as a matter of law, and (ii) is enforceable as such as against any and all creditors of, and purchasers from, such Grantor (other than purchasers and lessees of Inventory in the ordinary course of business).  All action by such Grantor necessary or desirable to perfect by filing such Lien on each item of the Collateral has been duly taken.
(d)Instruments, Letter of Credit Rights and Chattel Paper.  As of the Closing Date, Schedule II hereto lists all Instruments, Letter of Credit Rights and Chattel Paper of each Grantor.  All action by such Grantor necessary or desirable to protect and perfect the Lien in favor of Agent on each item of Collateral set forth in Schedule II (including the delivery of all originals thereof to Agent and  the legending of all such Chattel Paper for amounts over $100,000 as required by Section 6(b) hereof) has been duly taken.  The Lien in favor of Agent, for the benefit of Agent and Lender Parties, on the Collateral listed in Schedule II hereto is prior to all other Liens, except Permitted Encumbrances that would be prior to the Liens in favor of Agent as a matter of law, and is enforceable as such against any and all creditors of and purchasers from such Grantor. 
(e)Grantor Information; Locations of Collateral and Records.  As of the Closing Date, each Grantor’s name as it appears in official filings in its jurisdiction of organization, the type of entity of such Grantor (including corporation, partnership, limited partnership or limited liability company), organizational identification number issued by each Grantor’s jurisdiction of organization or a statement that no such number has been issued, each Grantor’s jurisdiction of organization, the location of each Grantor’s chief executive office, principal place of business, corporate or other offices, all warehouses and premises where tangible Collateral is stored or located, and the locations of its books and records concerning the Collateral are set forth in Schedule III hereto.  Each Grantor has only one jurisdiction of organization. 
(f)Accounts.  With respect to any Account of such Grantor, except as specifically disclosed in the most recent Collateral Report delivered to Agent:  (i) such Account represents a bona fide sale of Inventory or rendering of services to the applicable Account  Debtor in the ordinary course of such Grantor’s business and is not evidenced by a judgment, Instrument or Chattel Paper; (ii) there are no setoffs, claims or disputes existing or asserted with respect thereto and such Grantor has made no agreement with the applicable Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the 

full amount thereof, any release of such Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance allowed by such Grantor in the ordinary course of its business for prompt payment and disclosed to Agent; (iii) to such Grantor’s knowledge, there are no facts, events or occurrences that in any way impair the validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records and any invoices, statements and Collateral Reports delivered to Agent and Lenders with respect thereto; (iv) such Grantor has received no notice of proceedings or actions that are threatened or pending against the applicable Account Debtor that might result in any material adverse change in such Account Debtor’s financial condition; and (v) such Grantor has no knowledge that the applicable Account Debtor is unable generally to pay its debts as they become due.  In addition, with respect to any Account of any Grantor:  (A) the amounts reflected on all records, invoices, statements and Collateral Reports that may be delivered to Agent with respect thereto are actually and absolutely owing to such Grantor as indicated thereon and are not in any way contingent; (B) no payments have been or shall be made thereon except payments made in accordance with the requirements of Annex B to the Credit Agreement; and (C) to such Grantor’s knowledge, the applicable Account Debtor has the capacity to contract.
(g)Inventory.  With respect to any Inventory of such Grantor, except as specifically disclosed in the most recent Collateral Report delivered to Agent pursuant to the terms of this Security Agreement or the Credit Agreement:  (i) such Inventory is located at one of such Grantor’s locations set forth in Schedule III hereto (as such Schedule III may be modified and updated from time to time by written notice to Agent), except for inventory which, in the ordinary course of business, is in transit either (x) from a supplier to such Grantor, (y) between the locations specified in Schedule III, or (z) to customers of such Grantor; (ii) such Inventory is not now stored, nor shall at any time or times hereafter be stored, at any leased location without Agent’s prior written consent, and if Agent provides such consent, each applicable Grantor will concurrently therewith obtain, to the extent required by the Credit Agreement, a landlord agreement in form and substance reasonably satisfactory to Agent in place with respect to  such location; (iii) such Inventory is not now stored, nor shall at any time or times hereafter be stored, with a bailee or warehousemen without, to the extent required by the Credit Agreement, a bailee letter delivered to Agent in form and substance reasonably satisfactory to Agent; (iv) such Inventory is not now located, nor shall at any time or times hereafter be located, at a location subject to a mortgage in favor of a lender other than Agent without, to the extent required by the Credit Agreement, a mortgagee waiver delivered to Agent in form and substance reasonably satisfactory to Agent; (v) such Grantor has good, indefeasible and merchantable title to such Inventory and such Inventory is not subject to any Lien or document whatsoever except for the Lien granted to Agent hereunder, for the benefit of Agent and Lenders, and except for Permitted Encumbrances; (vi) except as specifically disclosed in the most recent Collateral Report delivered to Agent, such Inventory constitutes Eligible Inventory of good and merchantable quality; (vii) such Inventory is not subject to any licensing, patent, royalty, trademark, trade name or copyright agreements with any third parties that would require any consent of any third party upon sale or disposition of such Inventory or the payment of any monies to any third party upon such sale or other disposition; and (viii) the completion of manufacture, sale or other disposition of such Inventory by Agent following an Event of Default shall not require the 

consent of any Person and shall not constitute a breach or default under any Contract or agreement to which such Grantor is a party or to which such Inventory is subject. 
(h)Survival.  The representations and warranties set forth in this Section 5 shall survive the execution and delivery of this Security Agreement.
6.COVENANTS.  Each Grantor covenants and agrees with Agent, for the benefit of Agent and Lenders, that from and after the date of this Security Agreement and until the Termination Date:
(a)Further Assurances; Pledge of Instruments; Chattel Paper.
(i)At any time and from time to time, upon the written request of Agent and at the sole expense of Grantors, such Grantor shall promptly and duly execute and deliver any and all such further instruments and documents and take such further actions as Agent may deem desirable to obtain the full benefits of this Security Agreement and of the rights and powers herein granted, including (A) using its commercially reasonable efforts to secure all consents and approvals necessary or appropriate for the assignment to or for the benefit of Agent of any License or Contract held by such Grantor and to enforce the Liens, granted hereunder and (B) filing any financing or continuation statements under the Code with respect to the Liens granted hereunder or under any other Loan Document.
(ii)Unless Agent shall otherwise consent in writing (which consent may be revoked by Agent at any time in its sole discretion), such Grantor shall deliver to Agent all Collateral consisting of negotiable Documents, certificated securities, Chattel Paper, Letter of Credit Rights and Instruments (in each case, accompanied by stock powers, allonges or other instruments of transfer, as applicable, executed in blank) promptly after such Grantor receives the same. 
(iii)If any Grantor is or becomes the beneficiary of a letter of credit, then such Grantor shall promptly, and in any event within two Business Days after becoming such a beneficiary, notify Agent thereof and enter into a tri-party agreement with Agent and the issuer or confirmation bank with respect all to Letter of Credit Rights in connection with such letter of credit, assigning such Letter of Credit Rights to Agent and directing all payments thereunder to the Collection Account or another bank account designated by Agent, which tri-party agreement shall be in form and substance reasonably satisfactory to Agent.
(iv)Such Grantor shall take all steps necessary to grant Agent control of all electronic chattel paper in accordance with the Code and all “transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act.
(v)Such Grantor hereby irrevocably authorizes Agent at any time and from time to time to file in any filing office in any jurisdiction with respect to the Lien created hereby any initial financing statement and any amendment thereto that (A) describes the Collateral, and (B) contains any other information required by part 5 of Article 9 of the Code for the sufficiency 

or filing office acceptance of any financing statement or amendment, including whether such Grantor is an organization, the type of organization of such Grantor and any organization identification number issued to such Grantor.  Each Grantor agrees to furnish any such information to Agent promptly upon Agent’s request therefor.  Each Grantor also ratifies its authorization for Agent to have filed in any jurisdiction with respect to the Lien created hereby any initial statement or amendment thereto if filed prior to the date hereof.
(vi)Such Grantor shall promptly, and in any event within two Business Days after such Grantor becomes aware of its acquisition of any Commercial Tort Claim, notify Agent of such claim acquired by it and unless otherwise consented to by Agent, such Grantor shall enter into a supplement to this Security Agreement, granting to Agent a Lien on such claim.
(b)Maintenance of Books and Records.  Such Grantor shall keep and maintain, at its own cost and expense, satisfactory and complete records of each item of Collateral to which it purports to grant a Lien hereunder, including a record of any and all payments received and any and all credits granted with respect to each such item of Collateral and all other dealings with respect to each such item of Collateral.  Such Grantor shall mark its books and records pertaining to each such item of Collateral to evidence this Security Agreement and the Liens granted hereby.  If any Grantor retains possession of any Chattel Paper or Instruments for an amount in excess of $100,000, with Agent’s consent, such Chattel Paper or Instruments shall be marked with the following legend: “This writing and the obligations evidenced or secured hereby are subject to the Lien of Fifth Third Bank, National Association, as Agent, for the benefit of Agent and certain Lenders.”
(c)Acquisition Document Undertakings.
(i)Such Grantor shall keep Agent informed of all circumstances bearing upon any claim  under or with respect to the Acquisition Documents and the Acquisition Document Undertakings and such Grantor shall not, without the prior written consent of Agent, (i) waive any of its rights or remedies under any Acquisition Document with respect to any of the Acquisition Document Undertakings, (ii) settle, compromise or offset any amount payable by the sellers to such Grantor under any Acquisition Document or (iii) amend or otherwise modify any Acquisition Document in any manner which is materially adverse to the interests of Agent or any Lender.  
(ii)Such Grantor shall perform and observe in all respects all of the terms and conditions of each Acquisition Document to be performed by it, maintain each Acquisition Document in full force and effect (other than termination in accordance with its terms), enforce each Acquisition Document in accordance with its terms, and take all such action to such end as may from time to time be reasonably requested by Agent.
(iii)Anything herein to the contrary notwithstanding, (i) such Grantor shall remain liable under each applicable Acquisition Document to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Security Agreement had not been executed, (ii) the exercise by Agent of any of its rights hereunder shall not release such Grantor from any of its duties or obligations under any Acquisition Document 

and (iii) neither Agent nor any other Lender shall have any obligation or liability under any Acquisition Document by reason of this Security Agreement, nor shall Agent or any other Lender be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.
(d)Locations.  Such Grantor shall give Agent at least twenty (20) days prior written notice of any (a) intention to relocate the tangible Collateral (other than if such Collateral is Collateral in transit, out for repair or servicing, in the possession of employees, or intangible Collateral) or any of the records relating to the Collateral from the locations listed on Schedule III attached to this Security Agreement, and (b) intention to acquire any new location where records of such Grantor with respect to the Collateral are located or any tangible Collateral is located, and shall submit to Agent an updated Schedule III to reflect such additional new locations (provided such Grantor’s failure to do so shall not impair Agent’s Lien thereon).  Any additional filings or re-filings reasonably requested by Agent as a result of any such relocation in order to maintain the Agent’s Lien on the Collateral shall be at the Grantors’ joint and several expense.  
(e)Indemnification.  In any suit, proceeding or action brought by Agent or any Lender Party relating to any Collateral for any sum owing with respect thereto (to the extent Agent or such Lender Party is entitled to bring such suit, proceedings or action pursuant to the terms hereof or under applicable law) or to enforce any rights or claims with respect thereto, each Grantor shall save, indemnify and hold Agent and Lender Parties harmless from and against all expenses (including reasonable attorneys’ fees and expenses), loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of any Person obligated on the Collateral, arising out of a breach by such Grantor of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to, or in favor of, such obligor or its successors by such Grantor, except in the case of Agent or any Lender Party, to the extent such expense, loss, or damage is attributable solely to the gross negligence or willful misconduct of Agent or any Lender Party as finally determined by a court of competent jurisdiction.  All such obligations of such Grantor shall be and remain enforceable against and only against such Grantor and shall not be enforceable against Agent or any Lender Party.
(f)Compliance with Terms of Accounts and Agreements.  Such Grantor shall perform and comply with all obligations in respect of the Collateral and all other agreements to which it is a party or by which it is bound relating to the Collateral, except where such non-performance or non-compliance could not reasonably be expected to result in a Material Adverse Effect.
(g)Limitation on Liens on Collateral.  Such Grantor shall not create, incur, assume or permit to exist, and such Grantor shall defend the Collateral against, and take such other action as is necessary to remove, any Lien upon the Collateral except Permitted Encumbrances, and shall defend the right, title and interest of Agent and Lender Parties in and to such Grantor’s rights under the Collateral against the claims and demands of all Persons.

(h)Limitations on Disposition.  Such Grantor shall not sell, lease, license, transfer or otherwise dispose of any of the Collateral, or attempt or contract to do so, except as permitted by the Credit Agreement.
(i)Further Identification of Collateral.  Such Grantor shall, if so requested by Agent, furnish to Agent, as often as Agent reasonably requests, statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Agent may reasonably request, all in such detail as Agent may specify.
(j)Notices.  Such Grantor shall advise Agent promptly, in detail, (i) of any Lien (other than Permitted Encumbrances) or claim made or asserted against any of the Collateral, and (ii) of the occurrence of any other event that would have a Material Adverse Effect on the aggregate value of the Collateral or on the Liens created hereunder or under any other Loan Document.
(k)Good Standing Certificates.  Not more often than once during each fiscal year, upon the written request of Agent, each Grantor shall provide to Agent a certificate of good standing from its jurisdiction of organization.
(l)No Reorganization.  Without limiting the prohibitions on mergers involving Grantors contained in the Credit Agreement, no Grantor shall reincorporate or reorganize itself under the laws of any jurisdiction other than the jurisdiction in which it is organized as of the Closing Date without the prior written consent of Agent.
(m)Terminations; Amendments Not Authorized.  Each Grantor acknowledges and agrees that it will not file any financing statement or amendment or termination statement with respect to any financing statement without the prior written consent of Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the Code.
(n)Authorized Terminations.  Agent will promptly deliver to each Grantor for filing or authorize each Grantor to prepare and file termination statements and releases in accordance with 11.9 of the Credit Agreement.
7.AGENT’S APPOINTMENT AS ATTORNEY-IN-FACT.  Each Grantor hereby irrevocably constitutes and appoints Agent (and all officers, employees or agent designated by Agent), with full power of substitution, as such Grantor’s true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the name of such Grantor or in its own name, from time to time in Agent’s discretion, to take any and all appropriate action and to execute and deliver any and all documents and Instruments that may be necessary or desirable to accomplish the purposes of the Loan Documents and, without limiting the generality of the foregoing, such Grantor hereby grants to Agent the power and right, on behalf of such Grantor, without notice to or assent by such Grantor, and at any time, to do the following, subject to any limitation expressly provided for in the Credit Agreement or any other Loan Document:  (a) change the mailing address of such Grantor, open a post office box on behalf of such Grantor, open mail for such Grantor, and ask, demand, collect, give acquittances and receipts for, take possession of, or endorse and receive payment of, any checks, drafts, notes, 

acceptances, or other Instruments for the payment of moneys due, and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, and notices in connection with any of the Collateral; (b) effect any repairs to any of the Collateral, or continue or obtain any insurance and pay all or any part of the premiums therefor and costs thereof, and make, settle and adjust all claims under such policies of insurance, and make all determinations and decisions with respect to such policies; (c) pay or discharge any Taxes or Liens (other than Liens permitted under this Security Agreement or the Credit Agreement) levied or placed on or threatened against such Grantor or the Collateral; (d) defend any suit, action or proceeding brought against such Grantor if such Grantor does not defend such suit, action or proceeding or if Agent believes that such Grantor is not pursuing such defense in a manner that will maximize the recovery to Agent, and settle, compromise or adjust any suit, action, or proceeding described above and, in connection therewith, give such discharges or releases as Agent may deem appropriate; (e) file or prosecute any claim, litigation, suit or proceeding in any court of competent jurisdiction or before any arbitrator, or take any other action otherwise deemed appropriate by Agent for the purpose of collecting any and all such moneys due to such Grantor whenever payable and to enforce any other right in respect of the Collateral; (f) sell, transfer, pledge, make any agreement with respect to, or otherwise deal with, any Collateral, and execute, in connection with such sale or action, any endorsements, assignments or other instruments of conveyance or transfer in connection therewith; (g) cause the certified public accountants then engaged by such Grantor to prepare and deliver to Agent at any time and from time to time, promptly upon Agent’s request, the following reports:  (i) a reconciliation of all of its Accounts, (ii) an aging of all such Accounts; (iii) trial balances; (iv) test verifications of such Accounts as Agent may request; and (v) the results of each physical verification of its Inventory; (h) communicate in its own name with any Account Debtors of such Grantor, parties to any Contracts of such Grantor or other obligors of such Grantor in respect of Instruments or Chattel Paper of such Grantor with regard to the assignment of the right, title and interest of such Grantor in, to and under such Accounts, Contracts, Instruments, Chattel Paper, General Intangibles and other matters relating thereto; (i) file such financing statements with respect to the Security Agreement, with or without such Grantor’s signature, or file a photocopy of this Security Agreement in substitution for a financing statement, as Agent may deem appropriate and to execute in Grantor’s name such financing statements and amendments thereto and continuation statements that may require such Grantor’s signature; (j) execute, in connection with any sale provided for in any Loan Document, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral and to otherwise direct such sale or resale, all as though Agent were the absolute owner of the Collateral for all purposes; and (k) do, at Agent’s option and such Grantor’s expense, at any time or from time to time, all acts and other things that Agent reasonably deems necessary to perfect, preserve, or realize upon the Collateral and Agent’s Liens thereon, all as fully and effectively as such Grantor might do.  Each Grantor hereby ratifies, to the extent permitted by law, all that said Agent shall lawfully do or cause to be done by virtue hereof.  The power of attorney granted herein is a power coupled with an interest and shall be irrevocable until the Termination Date.  The powers conferred on Agent pursuant to this Section 7, for the benefit of Agent and Lenders, are solely to protect Agent’s Liens upon and interests in the Collateral (for the benefit of Agent and Lenders) and shall not impose any duty upon Agent or any Lender to exercise any such powers except as otherwise expressly provided for therein.  Agent agrees that (a) except for the powers granted in clause (i) 

above, it shall not exercise any power or authority granted pursuant to this Section 7 unless an Event of Default has occurred and is continuing, and (b) Agent shall account for any moneys received by Agent in respect of any foreclosure on or disposition of any of the Collateral pursuant to the powers of attorney granted herein; provided, that, except as set forth in Section 10, neither Agent nor any Lender shall have any duty as to any Collateral except as otherwise expressly required under applicable law, and Agent and Lenders shall be accountable only for amounts that they actually receive as a result of the exercise of such powers.  NONE OF AGENT, LENDERS OR THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO ANY GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.
8.REMEDIES; RIGHTS UPON DEFAULT.
(a)Remedies Generally.  If any Event of Default shall have occurred and be continuing:
(i)In addition to all other rights and remedies granted to it under this Security Agreement, the, Credit Agreement, the other Loan Documents and under any other instrument or agreement securing, evidencing or relating to any of the Obligations, Agent may exercise all rights and remedies of a secured party under the Code.  Without limiting the generality of the foregoing, each Grantor expressly agrees that in any such event Agent, without demand of performance or other demand, advertisement or notice of any kind (except the notice specified in clause (ii) below of the time and place of any public or private sale) to or upon such Grantor or any other Person (all and each of which demands, advertisements and notices are hereby expressly waived to the maximum extent permitted by the Code and other applicable law), may immediately enter upon the premises of such Grantor where any Collateral is located through self-help, without judicial process, without first obtaining a final judgment or giving such Grantor or any other Person notice and an opportunity for a hearing on Agent’s claim or action and may collect, receive, assemble, process, appropriate and realize upon the Collateral, or any part thereof, and may sell, lease, license, assign, give an option or options to purchase, sell or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof, in one or more parcels at a public or private sale or sales, or at any exchange, at such prices as it may deem appropriate, for cash or on credit or for future delivery without assumption of any credit risk.  Agent or any Lender shall have the right upon any such public sale or sales and, to the extent permitted by law, upon any such private sale or sales, to purchase, for the benefit of Agent and Lenders, the whole or any part of said Collateral so sold, free of any right or equity of redemption, which equity of redemption each Grantor hereby releases.  Such sales may be adjourned or continued from time to time with or without notice.  Agent shall have the right to conduct such sales on any Grantor’s premises or elsewhere and shall have the right to use any Grantor’s premises without charge for such sales at such time or times as Agent deems necessary or advisable.

(ii)Each Grantor further agrees, at Agent’s request, to assemble the Collateral and make it available to Agent at a place or places designated by Agent as convenient to Agent and such Grantor, whether at such Grantor’s premises or elsewhere.  Until Agent is able to effect a sale, lease, or other disposition of Collateral, Agent shall have the right to hold or use the Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or for any other purpose deemed appropriate by Agent.  Agent shall have no obligation to any Grantor to maintain or preserve the rights of such Grantor as against third parties with respect to Collateral while Collateral is in the possession of Agent.  Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of Agent’s remedies (for the benefit of Agent and Lenders), without, except as may be required by applicable state laws, prior notice or hearing as to such appointment.  Agent shall apply the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale to the Obligations as provided in the Credit Agreement, and only after so paying over such net proceeds, and after the payment by Agent of any other amount required by any provision of law, need Agent account for the surplus, if any, to any Grantor.  Each Grantor waives, to the maximum extent permitted by applicable law, all claims, damages, and demands against Agent or any Lender arising out of the repossession, retention or sale of the Collateral except such as arise solely out of the gross negligence or willful misconduct of Agent or such Lender as finally determined by a court of competent jurisdiction.  Each Grantor agrees that 10 days’ prior notice by Agent of the time and place of any public sale or of the time after which a private sale may take place is reasonable notification of such matters.  To the extent not prohibited by law, Grantors shall remain jointly and severally liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, including any reasonable attorneys’ fees or other expenses incurred by Agent or any Lender to collect such deficiency.
(b)Waivers.  Except as otherwise specifically provided herein, each Grantor hereby waives (to the maximum extent permitted by applicable law) presentment, demand, protest or any notice of any kind in connection with this Security Agreement or any Collateral.
(c)Commercial Reasonableness.  To the extent that applicable law imposes duties on Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is not commercially unreasonable for Agent (i) to fail to incur expenses deemed significant by Agent to prepare Collateral for disposition or otherwise to complete raw material or work in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in the same business as such Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vii) to hire 

one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure Agent against risks of loss, collection or disposition of Collateral or to provide to Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to the extent deemed appropriate by Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist Agent in the collection or disposition of any of the Collateral.  Each Grantor acknowledges that the purpose of this Section 8(c) is to provide non-exhaustive indications of what actions or omissions by Agent would not be commercially unreasonable in Agent’s exercise of remedies against the Collateral and that other actions or omissions by Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 8(c).  Without limiting the generality of the foregoing, nothing contained in this Section 8(c) shall be construed to grant any rights to any Grantor or to impose any duties on Agent that would not have been granted or imposed by this Security Agreement or by applicable law in the absence of this Section 8(c).
(d)Waiver of Certain Defenses.  To the extent not prohibited by law, neither Agent nor any Lender Party shall be required to make any demand upon, or pursue or exhaust any of its respective rights or remedies against, any Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Obligations or to pursue or exhaust any of its respective rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof.  Neither Agent nor any Lender Party shall be required to marshal the Collateral or any guarantee of the Obligations or to resort to the Collateral or any such guarantee in any particular order, and all of its respective rights hereunder or under any other Loan Document shall be cumulative.  To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants not to assert against Agent or any Lender Party, any valuation, stay, appraisement, extension, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing that, but for this provision, might be applicable to the sale of any Collateral made pursuant to the judgment, order or decree of any court, or privately pursuant to the power of sale conferred by this Security Agreement, or otherwise.
9.GRANT OF LICENSE TO USE INTELLECTUAL PROPERTY.  Solely for the purpose of enabling Agent to exercise its rights and remedies under Section 8 hereof (including, without limiting the terms of Section 8 hereof, in order to take possession of, hold, preserve, process, assemble, prepare for sale, market for sale, sell or otherwise dispose of Collateral) at such time or times as Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to Agent, for the benefit of Agent and Lender Parties, an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to such Grantor) to use, license or sublicense any Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be located, and including in 

such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.
10.LIMITATION ON AGENT’S AND LENDERS’ DUTIES IN RESPECT OF COLLATERAL.  Each of Agent and each Lender shall use reasonable care with respect to the Collateral in its possession or under its control.  Neither Agent nor any Lender shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of Agent or such Lender, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto.
11.REINSTATEMENT.  This Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors, or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent transfer,” or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
12.NOTICES.  Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give or serve upon any other party any communication with respect to this Security Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be given in the manner, and deemed received, as provided for in the Credit Agreement.
13.SEVERABILITY.  Whenever possible, each provision of this Security Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Security Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this Security Agreement.  This Security Agreement is to be read, construed and applied together with the Credit Agreement and the other Loan Documents which, taken together, set forth the complete understanding and agreement of Agent, Lenders and Grantors with respect to the matters referred to herein and therein.
14.NO WAIVER; CUMULATIVE REMEDIES.  Neither Agent nor any Lender shall by any act, delay, omission or otherwise be deemed to have waived any of its rights or remedies hereunder, and no waiver shall be valid unless in writing and signed by Agent, and then only to the extent therein set forth.  A waiver by Agent of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that Agent would 

otherwise have on any future occasion.  No failure by Agent or any Lender to exercise, nor any delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or future exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies provided hereunder are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights and remedies provided by law.  None of the terms or provisions of this Security Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by Agent and each Grantor.
15.LIMITATION BY LAW.  All rights, remedies and powers provided in this Security Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of Law, and all the provisions of this Security Agreement are intended to be subject to all applicable mandatory provisions of Law that may be controlling and to be limited to the extent necessary so that they do not render this Security Agreement invalid, unenforceable, in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable Law.
16.TERMINATION OF THIS SECURITY AGREEMENT.  Subject to Section 11 hereof, this Security Agreement shall terminate upon the Termination Date.
17.SUCCESSORS AND ASSIGNS.  This Security Agreement and all obligations of Grantors hereunder shall be binding upon the successors and assigns of each Grantor (including any debtor-in-possession on behalf of such Grantor) and shall, together with the rights and remedies of Agent, for the benefit of Agent and Lenders, hereunder, inure to the benefit of Agent and Lenders, all future holders of any Instrument evidencing any of the Obligations and their respective successors and assigns.  No sales of participations, other sales, assignments, transfers or other dispositions of any agreement governing or Instrument evidencing any of the Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to Agent, for the benefit of Agent and Lender Parties, hereunder.  No Grantor may assign, sell, hypothecate or otherwise transfer any interest in or obligation under this Security Agreement.
18.COUNTERPARTS.  This Security Agreement may be authenticated in any number of separate counterparts, each of which shall collectively and separately constitute one and the same agreement.  This Security Agreement may be authenticated by manual signature, facsimile or, if approved in writing by Agent, electronic means, all of which shall be equally valid.  Delivery of an executed signature page of this Security Agreement by facsimile transmission or by electronic transmission shall be as effective as delivery of a manually executed counterpart hereof.
19.GOVERNING LAW.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING  ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF OHIO (WITHOUT REGARD TO THE PRINCIPLES THEREOF 

REGARDING CONFLICT OF LAWS), AND ANY APPLICABLE LAWS OF THE UNITED STATES.  EACH GRANTOR HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN HAMILTON COUNTY, STATE OF OHIO, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES AMONG GRANTORS, AGENT AND LENDERS PERTAINING TO THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; PROVIDED, THAT AGENT, LENDERS AND GRANTORS ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF HAMILTON COUNTY; PROVIDED, FURTHER, THAT NOTHING IN THIS SECURITY AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT.  EACH GRANTOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH GRANTOR HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH GRANTOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH GRANTOR AT THE ADDRESS SET FORTH ON ITS SIGNATURE PAGE TO THE CREDIT AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH GRANTOR’S ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID.
20.WAIVER OF JURY TRIAL; JUDICIAL REFERENCE.  Section 12.12 of the Credit Agreement is incorporated herein by reference mutatis mutandis.
21.SECTION TITLES.  The Section titles contained in this Security Agreement are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.
22.NO STRICT CONSTRUCTION.  The parties hereto have participated jointly in the negotiation and drafting of this Security Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Security Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Security Agreement.

23.ADVICE OF COUNSEL.  Each of the parties hereto represents to each other party hereto that it has discussed this Security Agreement (and, specifically, the provisions of Sections 19 and 20) with its counsel.
24.BENEFIT OF LENDER PARTIES.  All Liens granted or contemplated hereby shall be for the benefit of Agent, individually, and Lender Parties, and all proceeds or payments realized from Collateral in accordance herewith shall be applied to the Obligations in accordance with the terms of the Credit Agreement.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be executed and delivered by its duly authorized officer as of the date first set forth above.
			
	“Grantors”

THE DIXIE GROUP, INC.

By:    
Name:    
Title:    

TDG OPERATIONS, LLC
By:    
Name:    
Title:    

			
	“Agent”

FIFTH THIRD BANK, NATIONAL ASSOCIATION

By:    
Name:    
Title:ex101

 

 

 

 

 
 

CREDIT AGREEMENT 
by and among 
WELLS FARGO BANK, NATIONAL 
ASSOCIATION, 
as Agent, 
WELLS FARGO BANK, NATIONAL 
ASSOCIATION, 
as Lead Arranger, 
WELLS FARGO BANK, NATIONAL 
ASSOCIATION, 
as Book Runner, 
THE LENDERS THAT ARE PARTIES 
HERETO 
as the Lenders, 
CORE MOLDING TECHNOLOGIES, INC. 
as a Borrower 
Dated as of October 27, 2020 
 

1.
 
DEFINITIONS AND CONSTRUCTION. ........................................................................ 
1
 
1.1.
 
Definitions ...................................................................................................................1
 
1.2.
 
Accounting Terms .....................................................................................................61
 
1.3.
 
Code; PPSA ...............................................................................................................62
 
1.4.
 
Construction ..............................................................................................................62
 
1.5.
 
Time References .......................................................................................................63
 
1.6.
 
Schedules and Exhibits .............................................................................................63
 
1.7.
 
Divisions ...................................................................................................................63
 
1.8.
 
Exchange Rates; Currency Equivalents; Applicable Currency .................................63
 
1.9.
 
Quebec Interpretation ................................................................................................64
 
2.
 
LOANS AND TERMS OF PAYMENT. 
........................................................................ 64
 
2.1.
 
Revolving Loans. ......................................................................................................64
 
2.2.
 
Term Loans ...............................................................................................................65
 
2.3.
 
Borrowing Procedures and Settlements. ...................................................................67
 
2.4.
 
Payments; Reductions of Commitments; Prepayments. ...........................................74
 
2.5.
 
Promise to Pay; Promissory Notes. ...........................................................................81
 
2.6.
 
Interest Rates and Letter of Credit Fee: 
Rates, Payments, and Calculations. ..........82
 
2.7.
 
Crediting Payments ...................................................................................................83
 
2.8.
 
Designated Account ..................................................................................................84
 
2.9.
 
Maintenance of Loan Account; Statements of Obligations ......................................84
 
2.10.
 
Fees. ..........................................................................................................................84
 
2.11.
 
Letters of Credit. .......................................................................................................85
 
2.12.
 
LIBOR Option. ..........................................................................................................94
 
2.13.
 
Capital Requirements. ...............................................................................................97
 
2.14.
 
Incremental Facilities ................................................................................................99
 
2.15.
 
Currencies ...............................................................................................................100
 
2.16.
 
Joint and Several Liability of Borrowers. ...............................................................101
 
3.
 
CONDITIONS; TERM OF AGREEMENT. ................................................................. 
105
 
3.1.
 
Conditions Precedent to the Initial Extension of Credit .........................................105
 
3.2.
 
Conditions Precedent to all Extensions of Credit ...................................................105
 
3.3.
 
Maturity ...................................................................................................................105
 
3.4.
 
Effect of Maturity ....................................................................................................105
 
3.5.
 
Early Termination by Borrowers ............................................................................106
 
3.6.
 
Conditions Subsequent ............................................................................................106
 
4.
 
REPRESENTATIONS 
AND WARRANTIES. 
............................................................ 106
 
4.1.
 
Due Organization and Qualification; Subsidiaries. .................................................106
 
4.2.
 
Due Authorization; No Conflict. .............................................................................107
 

4.3.
 
Governmental Consents ..........................................................................................107
 
4.4.
 
Binding Obligations; Perfected Liens. ....................................................................108
 
4.5.
 
Title to Assets; No Encumbrances ..........................................................................108
 
4.6.
 
Litigation. ................................................................................................................108
 
4.7.
 
Compliance with Laws ............................................................................................108
 
4.8.
 
No Material Adverse Effect ....................................................................................109
 
4.9.
 
Solvency. .................................................................................................................109
 
4.10.
 
Employee Benefits ..................................................................................................109
 
4.11.
 
Environmental Condition ........................................................................................110
 
4.12.
 
Complete Disclosure ...............................................................................................110
 
4.13.
 
Patriot Act ...............................................................................................................111
 
4.14.
 
Indebtedness ............................................................................................................111
 
4.15.
 
Payment of Taxes ....................................................................................................111
 
4.16.
 
Margin Stock ...........................................................................................................111
 
4.17.
 
Governmental Regulation .......................................................................................112
 
4.18.
 
OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws ............112
 
4.19.
 
Employee and Labor Matters ..................................................................................112
 
4.20.
 
Leases ......................................................................................................................113
 
4.21.
 
Eligible Accounts ....................................................................................................113
 
4.22.
 
Eligible Inventory ...................................................................................................113
 
4.23.
 
Location of Inventory and M&E .............................................................................113
 
4.24.
 
Inventory Records ...................................................................................................113
 
4.25.
 
Hedge Agreements ..................................................................................................113
 
5.
 
AFFIRMATIVE 
COVENANTS. .................................................................................. 
113
 
5.1.
 
Financial Statements, Reports, Certificates ............................................................113
 
5.2.
 
Reporting .................................................................................................................114
 
5.3.
 
Existence .................................................................................................................114
 
5.4.
 
Maintenance of Properties ......................................................................................114
 
5.5.
 
Taxes .......................................................................................................................114
 
5.6.
 
Insurance. ................................................................................................................114
 
5.7.
 
Inspection. ...............................................................................................................115
 
5.8.
 
Compliance with Laws ............................................................................................116
 
5.9.
 
Environmental .........................................................................................................116
 
5.10.
 
Disclosure Updates .................................................................................................117
 
5.11.
 
Formation of Subsidiaries .......................................................................................117
 
5.12.
 
Further Assurances ..................................................................................................118
 
5.13.
 
Location of Inventory and M&E; Chief Executive Office; Registered Office .......119
 
5.14.
 
OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws ............119
 

5.15.
 
Compliance with ERISA and the IRC ....................................................................119
 
5.16.
 
Canadian Compliance .............................................................................................120
 
6.
 
NEGATIVE 
COVENANTS. ......................................................................................... 
120
 
6.1.
 
Indebtedness ............................................................................................................120
 
6.2.
 
Liens ........................................................................................................................120
 
6.3.
 
Restrictions on Fundamental Changes ....................................................................121
 
6.4.
 
Disposal of Assets ...................................................................................................121
 
6.5.
 
Nature of Business ..................................................................................................121
 
6.6.
 
Prepayments and Amendments ...............................................................................121
 
6.7.
 
Restricted Payments ................................................................................................122
 
6.8.
 
Accounting Methods ...............................................................................................123
 
6.9.
 
Investments .............................................................................................................123
 
6.10.
 
Transactions with Affiliates ....................................................................................123
 
6.11.
 
Use of Proceeds .......................................................................................................124
 
6.12.
 
Limitation on Issuance of Equity Interests .............................................................124
 
6.13.
 
Inventory or M&E with Bailees ..............................................................................124
 
6.14.
 
Employee Benefits ..................................................................................................124
 
6.15.
 
Canadian Employee Benefits ..................................................................................125
 
7.
 
FINANCIAL COVENANT........................................................................................... 125
 
8.
 
EVENTS OF DEFAULT. 
............................................................................................. 126
 
8.1.
 
Payments .................................................................................................................126
 
8.2.
 
Covenants ................................................................................................................126
 
8.3.
 
Judgments ................................................................................................................127
 
8.4.
 
Voluntary 
Bankruptcy, etc ......................................................................................127
 
8.5.
 
Involuntary Bankruptcy, etc ....................................................................................127
 
8.6.
 
Default Under Other Agreements ...........................................................................127
 
8.7.
 
Representations, etc ................................................................................................128
 
8.8.
 
Guaranty ..................................................................................................................128
 
8.9.
 
Security Documents ................................................................................................128
 
8.10.
 
Loan Documents .....................................................................................................128
 
8.11.
 
Change of Control ...................................................................................................128
 
9.
 
RIGHTS AND REMEDIES. ......................................................................................... 
128
 
9.1.
 
Rights and Remedies ...............................................................................................128
 
9.2.
 
Remedies Cumulative .............................................................................................129
 
10.
 
WAIVERS; 
INDEMNIFICATION. 
.............................................................................. 129
 
10.1.
 
Demand; Protest; etc ...............................................................................................129
 
10.2.
 
The Lender Group's Liability for Collateral ...........................................................129
 

10.3.
 
Indemnification .......................................................................................................130
 
11.
 
NOTICES. ..................................................................................................................... 131
 
12.
 
CHOICE OF LAW AND VENUE; JURY 
TRIAL WAIVER; 
JUDICIAL REFERENCE 
PROVISION. ................................................................................................................. 
132
 
13.
 
ASSIGNMENTS AND PARTICIPATIONS; 
SUCCESSORS. .................................... 
135
 
13.1.
 
Assignments and Participations. .............................................................................135
 
13.2.
 
Successors ...............................................................................................................139
 
14.
 
AMENDMENTS; WAIVERS. 
...................................................................................... 139
 
14.1.
 
Amendments and Waivers. 
.....................................................................................139
 
14.2.
 
Replacement of Certain Lenders. ............................................................................141
 
14.3.
 
No Waivers; Cumulative Remedies ........................................................................142
 
15.
 
AGENT; THE LENDER GROUP. 
............................................................................... 142
 
15.1.
 
Appointment and Authorization of Agent ..............................................................142
 
15.2.
 
Delegation of Duties ...............................................................................................143
 
15.3.
 
Liability of Agent ....................................................................................................143
 
15.4.
 
Reliance by Agent ...................................................................................................144
 
15.5.
 
Notice of Default or Event of Default .....................................................................144
 
15.6.
 
Credit Decision .......................................................................................................145
 
15.7.
 
Costs and Expenses; Indemnification .....................................................................145
 
15.8.
 
Agent in Individual Capacity ..................................................................................146
 
15.9.
 
Successor Agent ......................................................................................................146
 
15.10.
 
Lender in Individual Capacity .................................................................................147
 
15.11.
 
Collateral Matters. ...................................................................................................147
 
15.12.
 
Restrictions on Actions by Lenders; Sharing of Payments. ....................................149
 
15.13.
 
Agency for Perfection .............................................................................................150
 
15.14.
 
Payments by Agent to the Lenders .........................................................................150
 
15.15.
 
Concerning the Collateral and Related Loan Documents .......................................150
 
15.16.
 
Field Examination Reports; Confidentiality; Disclaimers by Lenders; Other 
Reports and Information .........................................................................................151
 
15.17.
 
Several Obligations; No Liability ...........................................................................152
 
15.18.
 
Lead Arranger, and Book Runner ...........................................................................152
 
15.19.
 
Appointment for the Province of Quebec. ..............................................................152
 
16.
 
WITHHOLDING TAXES. 
............................................................................................ 153
 
16.1.
 
Payments .................................................................................................................153
 
16.2.
 
Exemptions. .............................................................................................................153
 
16.3.
 
Reductions. ..............................................................................................................155
 
16.4.
 
Refunds ...................................................................................................................156
 

17.
 
GENERAL PROVISIONS. ........................................................................................... 
156
 
17.1.
 
Effectiveness ...........................................................................................................156
 
17.2.
 
Section Headings .....................................................................................................156
 
17.3.
 
Interpretation ...........................................................................................................157
 
17.4.
 
Severability of Provisions .......................................................................................157
 
17.5.
 
Bank Product Providers ..........................................................................................157
 
17.6.
 
Debtor-Creditor Relationship ..................................................................................158
 
17.7.
 
Counterparts; Electronic Execution ........................................................................158
 
17.8.
 
Revival and Reinstatement of Obligations; Certain Waivers. 
................................158
 
17.9.
 
Confidentiality. .......................................................................................................159
 
17.10.
 
Survival ...................................................................................................................160
 
17.11.
 
Patriot Act; Due Diligence ......................................................................................161
 
17.12.
 
Integration ...............................................................................................................161
 
17.13.
 
CMT as Agent for Borrowers .................................................................................162
 
17.14.
 
Acknowledgement and Consent to Bail-In of EEA Financial Institutions .............162
 
17.15.
 
Acknowledgement Regarding Any Supported QFCs .............................................163
 
17.16.
 
Judgment Currency .................................................................................................164
 
 

EXHIBITS AND SCHEDULES 
Exhibit A-1                             Form of Assignment and Acceptance 
Exhibit B-1                             Form of Borrowing Base Certificate 
Exhibit B-2                             Form of Bank Product Provider Agreement 
Exhibit C-1                             Form of Compliance Certificate 
Exhibit J-1                              Form of Joinder 
Exhibit L-1                             Form 
of LIBOR Notice 
Exhibit P-1                             Form 
of Perfection Certificate 
 
Schedule A-1                          Agent's Account 
Schedule A-2                          Authorized Persons 
Schedule B-1                          BRP/Navistar Project Cap 
Ex 
Schedule C-1                          Commitments 
Schedule D-1                          Designated Account 
Schedule E-2                          Eligible 
Real Property Collateral 
Schedule E-3                          Eligible 
Mexican Account Debtors 
Schedule P-1                          Permitted 
Investments 
Schedule P-2                          Permitted 
Liens 
Schedule R-1                          Real 
Property Collateral 
Schedule 3.1                           Conditions 
Precedent 
Schedule 3.6                           Conditions 
Subsequent 
Schedule 4.1(b)                      Capitalization 
of Borrowers 
Schedule 4.1(c)                      Capitalization 
of Borrowers' Subsidiaries 
Schedule 4.1(d)                      Subscriptions, 
Options, Warrants, Calls 
Schedule 4.6(b)                      Litigation 
Schedule 4.10                         Employee Benefits 
Schedule 4.11                         Environmental 
Matters 
Schedule 4.14                         Permitted 
Indebtedness 
Schedule 4.25                         Location of Inventory and 
M&E 
Schedule 5.1                           Financial Statements, Reports, 
Certificates 
Schedule 5.2                           Collateral 
Reporting 
Schedule 6.5                           Nature of Business 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT AGREEMENT 
 
THIS CREDIT 
AGREEMENT
, is 
entered into as 
of October 
27, 2020 
by and 
among the lenders identified on the signature pages hereof (each of such lenders, 
together with its 
successors and permitted 
assigns, is referred 
to hereinafter as 
a "Lender", as that 
term is hereinafter 
further defined), 
WELLS FARGO 
BANK, NATIONAL 
ASSOCIATION
, a national 
banking 
association, as administrative agent 
for each member of 
the Lender Group 
and the Bank Product 
Providers (in such 
capacity, together 
with its successors 
and assigns in 
such capacity, 
"Agent"), 
WELLS FARGO BANK, NATIONAL ASSOCIATION
, a national 
banking association, as 
lead 
arranger (in such 
capacity, together 
with its 
successors and 
assigns in 
such capacity, 
the "Lead 
Arranger"), 
WELLS  FARGO 
BANK,  NATIONAL 
ASSOCIATION
,  a  national 
banking 
association, as 
book runner 
(in such 
capacity, together 
with its 
successors and 
assigns in 
such 
capacity,  the  "Book 
Runner"),
 
CORE  MOLDING  TECHNOLOGIES,  INC.
,  a  Delaware 
corporation ("CMT"), 
and those 
additional Persons, 
if any, 
that are 
joined as 
a party hereto 
by 
executing the form of Joinder attached hereto as Exhibit J-1 (each, a "Borrower" and individually 
and collectively, jointly and severally, 
the "Borrowers"). 
The parties agree as follows: 
1.
 
DEFINITIONS AND CONSTRUCTION. 
1.1.
 
Definitions
. 
As used 
in this 
Agreement, the 
following terms 
shall have 
the 
following definitions: 
"Acceptable Appraisal" means, with respect to 
an appraisal of Inventory, 
M&E or 
Real Property, the most recent appraisal of such property received by Agent (a) from an appraisal 
company satisfactory to Agent, 
(b) the scope and methodology 
(including, to the extent 
relevant, 
any sampling procedure employed by 
such appraisal company) of which 
are satisfactory to Agent, 
and (c) the results 
of which are 
satisfactory to Agent, in 
each case, in 
Agent's Permitted Discretion. 
"Account" means an account 
(as that term is 
defined in the Code 
or, to 
the extent 
applicable, the PPSA). 
"Account Debtor" means 
any Person who 
is obligated on an 
Account, chattel paper, 
or a general intangible. 
"Account Party" 
has the 
meaning specified 
therefor in 
Section 2.11(h) 
of this 
Agreement. 
"Accounting Changes 
" 
means changes 
in accounting 
principles required 
by the 
promulgation of 
any rule, 
regulation, pronouncement 
or opinion 
by the 
Financial Accounting 
Standards Board of 
the American Institute 
of Certified Public 
Accountants (or successor 
thereto 
or any agency with similar functions). 
"Acquired Indebtedness" means 
Indebtedness of a 
Person whose assets 
or Equity 
Interests are 
acquired by 
a Loan 
Party or 
any of 
its Subsidiaries 
in a 
Permitted Acquisition; 
provided, that such 
Indebtedness (a) is either 
purchase money Indebtedness 
or a Capital 
Lease with 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

respect to M&E or mortgage financing with respect to Real Property, (b) was in existence prior to 
the date 
of such 
Permitted Acquisition, 
and (c) 
was not 
incurred in 
connection with, 
or in 
contemplation of, such Permitted Acquisition. 
"Acquisition"  means  (a) the  purchase  or  other  acquisition  by  a  Person 
or  its 
Subsidiaries of all or 
substantially all of the 
assets of (or any 
division or business line of) 
any other 
Person, or (b) the purchase or other 
acquisition (whether by means of a 
merger, consolidation, 
or 
otherwise) by a Person or its Subsidiaries of all of the Equity Interests of any other Person. 
"Additional Documents" has the meaning specified therefor in Section 5.12 of this 
Agreement. 
"Additional M/E Term 
Loan" has the meaning specified therefo 
r 
in Section 2.2(a) 
of this Agreement. 
"Additional M/E Term Loan Amount" means $9,000,000 less the then outstanding 
principal balance of the Initial M/E Term Loan. 
"Administrative Borrower" has the meaning 
specified therefor in Section 17.13 
of 
this Agreement. 
"Administrative  Questionnaire" 
has  the  meaning  specified  therefor  in  Section 
13.1(a) of this Agreement. 
"Affected Lender" 
has the 
meaning specified 
therefor in 
Section 2.13(b) 
of this 
Agreement. 
"Affiliate" 
means, as 
applied to 
any Person, 
any other 
Person who 
controls, is 
controlled by, 
or is 
under common 
control with, 
such Person. 
For purposes 
of this 
definition, 
"control" means the 
possession, directly or 
indirectly through one 
or more intermediaries, 
of the 
power to direct 
the management and 
policies of a 
Person, whether through 
the ownership of 
Equity 
Interests, by 
contract, or 
otherwise; provided, 
that for 
purposes of 
the definition 
of Eligible 
Accounts and Section 6.10 
of this Agreement: 
(a) if any Person owns 
directly or indirectly 10% 
or more of the Equity Interests having ordinary voting power for the election of directors or other 
members of the governing body of a Person 
or 10% or more of the partnership or other 
ownership 
interests of a Person (other than as a limited partner of such Person), then both such Persons shall 
be Affiliates of each other, (b) each director 
(or comparable manager) of a 
Person shall be deemed 
to be an Affiliate 
of such Person, and 
(c) each partnership in 
which a Person is 
a general partner 
shall be deemed an Affiliate of such Person. 
"Agent" has the meaning specified therefor in the preamble to this Agreement. 
"Agent-Related  Persons"  means 
Agent,  together 
with  its 
Affiliates,  officers, 
directors, employees, attorneys, and agents. 
"Agent's Account" means the Deposit Account of Agent identified on Schedule A-
1 to this Agreement (or such other Deposit Account of Agent that has been designated as such, in 
writing, by Agent to Borrowers and the Lenders). 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Agent's Liens" means the Liens granted 
by each Loan Party or 
its Subsidiaries to 
Agent under the Loan Documents and securing the Obligations. 
"Agreed Currency" means (a) Dollars and (b) Canadian Dollars. 
"Agreement" means 
this Credit 
Agreement, as 
amended, restated, 
amended and 
restated, supplemented or otherwise modified from time to time. 
"Anti-Corruption  Laws" means 
the  FCPA, 
the  U.K. Bribery 
Act of 
2010, as 
amended, and 
all other 
applicable laws 
and regulations 
or ordinances 
concerning or 
relating to 
bribery or 
corruption in 
any jurisdiction 
in which 
any Loan 
Party or 
any of 
its Subsidiaries 
or 
Affiliates is located or is doing business. 
"Anti-Money Laundering Laws" 
means the 
applicable laws or 
regulations in any 
jurisdiction in which any 
Loan Party or any of 
its Subsidiaries or Affiliates 
is located or is 
doing 
business that 
relates to 
money laundering, 
any predicate 
crime to 
money laundering, 
or any 
financial record keeping 
and reporting requirements 
related thereto and 
includes Canadian Anti-
Money Laundering & Anti-Terrorism Legislation. 
"Applicable Margin" 
means, as 
of any date 
of determination 
and with 
respect to 
Base Rate 
Loans or 
LIBOR Rate 
Loans, as 
applicable, the 
applicable margin 
set forth 
in the 
following table 
that corresponds 
to the 
Average Excess 
Availability of 
Borrowers for 
the most 
recently 
completed quarter; 
provided, that 
for the 
period from 
the Closing 
Date through 
and 
including March 
31, 2021, 
the Applicable 
Margin shall 
be set 
at the 
margin in 
the row 
styled 
"Level III"; provided further, that any 
time an Event of Default 
has occurred and is continuing, 
the 
Applicable Margin shall be set at the margin in the row styled "Level III": 
Level 
Average Excess 
Availability 
Applicable 
Margin for Base 
Rate Loans 
which are 
Revolving Loans 
(the "Revolving 
Loan Base Rate 
Margin") 
Applicable 
Margin for 
LIBOR Rate 
Loans which are 
Revolving Loans 

(the "Revolving 
Loan LIBOR 
Rate Margin") 
Applicable 
Margin for Base 
Rate Loans 
which are Term 
Loans (the 
"Term Loan 
Base Rate 
Margin") 
Applicable 
Margin for 
LIBOR Rate 
Loans which are 
Term Loans 
(the 
"Term Loan 
LIBOR Rate 
Margin") 
I 
> 66 2/3% of the 
Maximum 
Revolver Amount 

1.00 percentage 
points 
2.00 percentage 
points 
2.00 percentage 
points 
3.00 percentage 
points 
II 
< 66 2/3% of the 
Maximum 
Revolver Amount 
and > 33 1/3% of 
the Maximum 
Revolver Amount 
1.25 percentage 
points 
2.25 percentage 
points 
2.00 percentage 
points 
3.00 percentage 
points 
III 
< 33 1/3% of the 
Maximum 
Revolver Amount 
1.50 percentage 
points 
2.50 percentage 
points 
2.00 percentage 
points 
3.00 percentage 
points 
 
The Applicable Margin shall be re-determined as of the first day of each quarter. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Application Event" 
means the occurrence 
of (a) a failure 
by Borrowers to 
repay 
all of the Obligations 
in full on the 
Maturity Date, or (b) 
an Event of Default 
and the election by 
Agent or 
the Required 
Lenders to 
require that 
payments and 
proceeds of 
Collateral be 
applied 
pursuant to Section 2.4(b)(iii) of this Agreement. 
"Assignee" has the 
meaning specified therefor 
in Section 13.1(a) 
of this Agreement. 
"Assignment and Acceptance" 
means an Assignment 
and Acceptance Agreement 
substantially in the form of Exhibit A-1 to this Agreement. 
"Authorized Person" means any one of the 
individuals identified as an officer of 
a 
Borrower on Schedule A-2 
to this Agreement, or 
any other individual identified 
by Administrative 
Borrower as an authorized person and authenticated through Agent's electronic platform or portal 
in accordance with its procedures for such authentication. 
"Availability" means, 
as of any 
date of determination, 
the amount that 
Borrowers 
are entitled to borrow as 
Revolving Loans under Section 2.1 of 
this Agreement (after giving effect 
to the then outstanding Revolver Usage). 
"Available Increase 
Amount" means, as 
of any date 
of determination, an 
amount 
equal to the result of 
(a) $10,000,000, 
minus
 
(b) the aggregate principal amount of 
Increases to the 
Revolver Commitments previously made pursuant to Section 2.14 of this Agreement. 
"Average Excess 
Availability" means, 
with respect to 
any period, the 
sum of the 
aggregate amount of Availability for each day in such 
period (as calculated by Agent as 
of the end 
of each respective day) 
divided by
 
the number of days in such period. 
"Average Revolver 
Usage" means, 
with respect 
to any 
period, the 
sum of 
the 
aggregate amount of Revolver Usage for each day in such period (calculated as 
of the end of each 
respective day) 
divided by
 
the number of days in such period. 
"Bail-In Action" 
means the 
exercise of any 
Write-Down and 
Conversion Powers 
by the 
applicable EEA 
Resolution Authority 
in respect 
of any 
liability of 
an EEA 
Financial 
Institution. 
"Bail-In  Legislation" 
means,  with 
respect  to 
any  EEA 
Member  Country 
implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council 
of the European Union, 
the implementing law for 
such EEA Member Country 
from time to time 
which is described in the EU Bail-In Legislation Schedule. 
"Bank Product" 
means any 
one or 
more of 
the following 
financial products 
or 
accommodations extended to 
any Loan Party 
or any of 
its Subsidiaries by 
a Bank Product 
Provider: 

(a) credit cards (including commercial cards (including so-called 
"purchase cards", "procurement 
cards" or "p-cards")), (b) payment card processing 
services, (c) debit cards, (d) stored value cards, 
(e) Cash Management Services, or (f) transactions under Hedge Agreements. 

 

 

 

 

 

 

 

 

 

 

 

 

"Bank Product Agreements" 
means those agreements 
entered into from 
time to time 
by any Loan Party or any of its Subsidiaries with a 
Bank Product Provider in connection with the 
obtaining of any of the Bank Products. 
"Bank Product 
Collateralization" means 
providing cash 
collateral (pursuant 
to 
documentation reasonably satisfactory to 
Agent) to be held 
by Agent for the 
benefit of the Bank 
Product Providers (other 
than the Hedge 
Providers) in an 
amount determined by 
Agent as sufficient 
to satisfy the reasonably 
estimated credit exposure, operational 
risk or processing risk with 
respect 
to the then existing Bank Product Obligations (other than Hedge Obligations). 
"Bank Product 
Obligations" means 
(a) all obligations, 
liabilities, reimbursement 
obligations, fees, or expenses owing by each Loan Party and its Subsidiaries to any Bank Product 
Provider pursuant to or 
evidenced by a Bank 
Product Agreement and irrespective 
of whether for 
the payment of money, 
whether direct or indirect, 
absolute or contingent, 
due or to 
become due, 
now existing or hereafter arising, (b) all Hedge Obligations, and (c) all amounts that Agent 
or any 
Lender is 
obligated to 
pay to 
a Bank 
Product Provider 
as a 
result of 
Agent or 
such Lender 
purchasing  participations 
from,  or 
executing  guarantees 
or  indemnities 
or  reimbursement 
obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank 
Product Provider to a Loan Party or its Subsidiaries. 
"Bank Product Provider" means any Lender or any of its Affiliates, including each 
of the foregoing in its capacity, 
if applicable, as a Hedge 
Provider; provided, that no such 
Person 
(other than Wells 
Fargo or its Affiliates) 
shall constitute a Bank Product 
Provider with respect to 
a Bank Product 
unless and 
until Agent receives 
a Bank Product 
Provider Agreement 
from such 
Person (a) on or prior to the 
Closing Date (or such later date 
as Agent shall agree to in 
writing in 
its sole discretion) 
with respect to 
Bank Products provided 
on or prior 
to the Closing 
Date, or (b) 
on 
or prior to the date that 
is 10 days after the provision 
of such Bank Product to 
a Loan Party or its 
Subsidiaries (or such later 
date as Agent shall 
agree to in writing 
in its sole discretion) 
with respect 
to Bank Products provided after 
the Closing Date; provided further, 
that if, at any time, 
a Lender 
ceases to be a Lender under this Agreement (prior to the payment 
in full of the Obligations), then, 
from and after 
the date on 
which it so 
ceases to be 
a Lender hereunder, 
neither it nor 
any of its 
Affiliates shall 
constitute Bank 
Product Providers 
and the 
obligations with 
respect to 
Bank 
Products provided by such 
former Lender or any 
of its Affiliates 
shall no longer constitute 
Bank 
Product Obligations. 
"Bank Product Provider Agreement" means an agreement in substantially the form 
attached hereto as 
Exhibit B-2 to 
this Agreement, in form 
and substance satisfactory 
to Agent, duly 
executed by the applicable Bank Product Provider, the applicable Loan Parties, and Agent. 
"Bank Product Reserves" 
means, as 
of any 
date of 
determination, those 
reserves 
that Agent deems necessary or appropriate, subject to Section 
2.1(c), to establish (based upon the 
Bank Product Providers' 
reasonable determination of 
the liabilities and 
obligations of each Loan 
Party and its Subsidiaries 
in respect of Bank 
Product Obligations) in respect 
of Bank Products 
then 
provided or outstanding. 
"Bankruptcy Code" means title 11 of the 
United States Code, as 
in effect from time 
to time. 

 

 

 

 

 

 

 

 

 

"Base Rate 
" 
means the 
greatest of 
(a) 1.00 percent 
per annum
, (b) 
the Federal 
Funds Rate 
plus
 
1⁄2%, (c) the LIBOR Rate 
(which rate shall 
be calculated based upon 
an Interest 
Period of 
one month 
and shall 
be determined 
on a 
daily basis), 
plus
 
one percentage 
point, and 
(d) the rate of interest announced, 
from time to time, 
within Wells 
Fargo at its principal 
office in 
San Francisco 
as its 
"prime rate", 
with the 
understanding that 
the "prime 
rate" is 
one of 
Wells 
Fargo's base 
rates (not necessarily 
the lowest of 
such rates) and 
serves as 
the basis upon 
which 
effective rates of interest are calculated for those loans making reference thereto and is evidenced 
by the recording thereof after its announcement 
in such internal publications as 
Wells 
Fargo may 
designate (and, if any such announced rate 
is below zero, then the rate determined pursuant to this 
clause (d) shall be deemed to be zero). 
"Base Rate Loan" 
means each portion 
of the Revolving 
Loans or the 
Term 
Loan 
that bears interest at a rate determined by reference to the Base Rate. 
"Base Rate Margin" 
means the Revolving 
Loan Base Rate 
Margin or the 
Term Loan 
Base Rate Margin, as applicable. 
"Benchmark Replacement 
" 
means the 
sum of: 
(a) the alternate 
benchmark rate 
(which may include 
Term 
SOFR) that has 
been selected by 
Agent and Administrative 
Borrower 
giving due 
consideration to 
(i) any selection 
or recommendation 
of a 
replacement rate 
or the 
mechanism for determining such 
a rate by the 
Relevant Governmental Body or 
(ii) any evolving 
or then-prevailing 
market convention 
for determining 
a rate 
of interest 
as a 
replacement to 
the 
LIBOR  Rate 
for  United 
States  dollar-denominated 
syndicated  credit 
facilities  and 
(b) the 
Benchmark  Replacement  Adjustment; 
provided  that,  if 
the  Benchmark  Replacement 
as  so 
determined would be less 
than zero, the Benchmark 
Replacement shall be deemed 
to be zero for 
the purposes of this Agreement. 
"Benchmark Replacement Adjustment" means, with respect to any replacement of 
the LIBOR Rate with an Unadjusted Benchmark Replacement 
for each applicable Interest Period, 
the spread adjustment, 
or method for 
calculating or determining 
such spread adjustment, 
(which 
may be a positive 
or negative value or 
zero) that has 
been selected by Agent 
and Administrative 
Borrower giving due consideration to 
(i) any selection or recommendation of 
a spread adjustment, 
or method 
for calculating 
or determining 
such spread 
adjustment, for 
the replacement 
of the 
LIBOR  Rate 
with  the 
applicable  Unadjusted 
Benchmark  Replacement 
by  the 
Relevant 
Governmental Body or (ii) 
any evolving or 
then-prevailing market convention 
for determining a 
spread adjustment, 
or method 
for calculating 
or determining 
such spread 
adjustment, for 
the 
replacement of 
the LIBOR 
Rate with 
the applicable 
Unadjusted Benchmark 
Replacement for 
United States dollar-denominated syndicated credit facilities at such time. 
"Benchmark  Replacement  Conforming 
Changes"  means,  with 
respect  to  any 
Benchmark Replacement, any technical, 
administrative or operational changes (including 
changes 
to the 
definition of 
"Base Rate", 
the definition 
of "Interest 
Period", timing 
and frequency 
of 
determining rates and 
making payments of 
interest and other 
administrative matters) that 
Agent 
decides may 
be appropriate 
to reflect 
the adoption 
and implementation 
of such 
Benchmark 
Replacement  and  to  permit 
the  administration  thereof  by 
Agent  in  a  manner 
substantially 
consistent with market practice (or, 
if Agent decides that 
adoption of any portion 
of such market 
practice is 
not administratively 
feasible or 
if Agent 
determines that 
no market 
practice for 
the 

 

 

 

 

administration of the 
Benchmark Replacement exists, 
in such other 
manner of administration 
as 
Agent decides is reasonably necessary in connection with the administration of this Agreement). 
"Benchmark Replacement Date" means the earlier to occur of 
the following events 
with respect to the LIBOR Rate: 
(a)
 
in the case 
of clause (a) 
or (b) of 
the definition of 
"Benchmark Transition 
Event," the later 
of (i) the date 
of the public 
statement or 
publication of information 
referenced 
therein and (ii) the date 
on which the administrator of 
the LIBOR Rate permanently 
or indefinitely 
ceases 
to provide the LIBOR Rate; or 
(b)
 
in the case of clause (c) of the definition of "Benchmark Transition Event," 
the date of the public statement or publication of information referenced therein. 
"Benchmark  Transition  Event"  means 
the  occurrence  of  one  or 
more  of  the 
following events with respect to the LIBOR Rate: 
(a)
 
a public 
statement or 
publication of 
information by 
or on 
behalf of 
the 
administrator of the LIBOR 
Rate announcing that 
such administrator has ceased 
or will cease 
to 
provide the LIBOR Rate, permanently or indefinitely, provided that, at the time of such statement 
or publication, there is no successor administrator that will continue to provide the LIBOR Rate; 
(b)
 
a  public 
statement  or 
publication  of 
information  by 
the  regulatory 
supervisor for 
the administrator 
of the 
LIBOR Rate, 
the Federal 
Reserve System 
of the 
United 
States (or 
any successor), an 
insolvency official 
with jurisdiction 
over the administrator 
for the 
LIBOR Rate, a resolution authority 
with jurisdiction over the administrator 
for the LIBOR Rate or 
a court or an 
entity with similar 
insolvency or resolution 
authority over the administrator 
for the 
LIBOR Rate, which 
states that the 
administrator of the 
LIBOR Rate has 
ceased or will 
cease to 
provide the LIBOR Rate permanently or indefinitely, 
provided that, at the time of such 
statement 
or publication, there is no 
successor administrator that will 
continue to provide the LIBOR 
Rate; 
or 
(c)
 
a  public 
statement  or 
publication  of 
information  by 
the  regulatory 
supervisor for the administrator of the LIBOR Rate announcing that the LIBOR Rate is no longer 
representative. 
"Benchmark  Transition 
Start  Date" 
means  (a) 
in  the 
case  of 
a  Benchmark 
Transition Event, 
the earlier 
of (i) 
the applicable 
Benchmark Replacement 
Date and 
(ii) if such 
Benchmark Transition Event 
is a public statement 
or publication of information 
of a prospective 
event, the 
90th day 
prior to 
the expected 
date of 
such event 
as of 
such public 
statement or 
publication of information (or if the expected date 
of such prospective event is fewer than 90 
days 
after such statement or 
publication, the date of 
such statement or publication) 
and (b) in the case 
of an Early 
Opt-in Election, the 
date specified by 
Agent or the 
Required Lenders, as 
applicable, 
by notice to Administrative Borrower, Agent (in the case of such notice by the Required Lenders) 
and the Lenders. 
"Benchmark Unavailability Period" 
means, if a 
Benchmark Transition 
Event and 
its related Benchmark 
Replacement Date have occurred 
with respect to the 
LIBOR Rate and 
solely 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to the extent 
that the LIBOR 
Rate has not 
been replaced with 
a Benchmark Replacement, 
the period 
(x) beginning at the time that such Benchmark 
Replacement Date has occurred if, at such time, no 
Benchmark Replacement has replaced 
the LIBOR Rate for 
all purposes hereunder in 
accordance 
with Section 2.12(d)(iii) 
and (y) ending at 
the time that 
a Benchmark Replacement 
has replaced 
the LIBOR Rate for all purposes hereunder pursuant to Section 2.12(d)(iii). 
"Beneficial Ownership 
Certification" means 
a certification 
regarding beneficial 
ownership as required by the Beneficial Ownership Regulations. 
"Beneficial Ownership Regulation" means 31 C.F.R. 
§ 1010.230. 
"Benefit Plan" 
means a 
"defined benefit 
plan" (as 
defined in 
Section 3(35) 
of 
ERISA) that is subject to 
Title IV of ERISA, 
for which any Loan Party or 
any of its Subsidiaries 
or ERISA Affiliates has been an 
"employer" (as defined in Section 
3(5) of ERISA) within the past 
six years. 
"BHC Act Affiliate" of 
a Person means 
an "affiliate" (as such 
term is defined under, 
and interpreted in accordance with, 12 U.S.C. 1841(k)) of such Person. 
"Board of Directors" 
means, as to any 
Person, the board of 
directors (or comparable 
managers) of such Person, or any committee thereof duly authorized to act on 
behalf of the board 
of directors (or comparable managers). 
"Board of 
Governors" means 
the Board 
of Governors 
of the 
Federal Reserve 
System of the United States (or any successor). 
"Book Runner" 
has the meaning set forth in the preamble to this Agreement. 
"Borrower" and "Borrowers" 
have the respective meanings 
specified therefor in the 
preamble to this Agreement. 
"Borrower Materials" 
has the meaning specified therefor in Section 17.9(c) 
of this 
Agreement. 
"Borrowing" means a borrowing consisting of Revolving Loans made on the same 
day by the Lenders (or Agent on 
behalf thereof), or by Swing Lender in the case 
of a Swing Loan, 
or by Agent in the case of an Extraordinary Advance. 
"Borrowing Base" means, as of any date of determination, the result of: 
(a)
 
90% of the 
amount of Eligible 
Investment Grade Accounts, 
less
 
the amount, 
if any, of the Dilution Reserve (Investment Grade), 
plus
 
(b)
 
85% of 
the amount 
of Eligible 
Non-Investment Grade 
Accounts, 
less
 
the 
amount, if any, of the Dilution Reserve (Non-Investment Grade), 
plus
 
 
(c)
 
the lesser of (x) $1,500,000 and (y) 85% of the amount of 
Eligible Tooling 
Accounts, 
less
 
the amount, if any, of the Dilution Reserve (Non-Investment Grade), 
plus
 

 

 

 

 

 

 

 

 

 

 

(d)
 
the lesser of 
(x) Mexican A/R 
Cap and (y) 
85% of the 
amount of Eligible 
Mexican Accounts, 
less
 
the amount, if any, of the Dilution Reserve (Non-Investment Grade), 
plus
 
(e)
 
the lesser of (A) 
the product of 
70% multiplied by 
the value (calculated at 
the lower of cost 
or market on a 
basis consistent with Loan 
Parties' historical accounting practices) 
of Eligible Finished Goods 
Inventory at such time, and 
(B) the product of 85% 
multiplied by the 
Net  Recovery  Percentage  identified  in 
the  most  recent  Acceptable  Appraisal 
of  Inventory, 
multiplied by the value (calculated at 
the lower of cost or market 
on a basis consistent with 
Loan 
Parties' historical accounting practices) of Eligible Finished Goods Inventory (such determination 
may be made as to 
different categories of Eligible 
Finished Goods Inventory based upon 
the Net 
Recovery Percentage applicable to such categories) at such time, 
plus
 
(f)
 
the lesser of (A) 
the product of 
70% multiplied by 
the value (calculated at 
the lower of cost 
or market on a 
basis consistent with Loan 
Parties' historical accounting practices) 
of Eligible Raw 
Materials Inventory at 
such time, and 
(B) the product of 
85% multiplied by 
the 
Net  Recovery  Percentage  identified  in 
the  most  recent  Acceptable  Appraisal 
of  Inventory, 
multiplied by the value (calculated at 
the lower of cost or market 
on a basis consistent with 
Loan 
Parties' historical accounting practices) 
of Eligible Raw Materials 
Inventory (such determination 
may be made 
as to different 
categories of Eligible 
Raw Materials Inventory 
based upon the 
Net 
Recovery Percentage applicable to such categories) at such time, 
plus
 
(g)
 
the lesser of
 
(i)        $350,000, and 
(ii)       the  lesser  of 
(A) the  product  of 
70%  multiplied  by 
the  value 
(calculated at 
the lower 
of cost 
or market 
on a 
basis consistent 
with Loan 
Parties' historical 
accounting practices) of Eligible Work 
-In-Process Inventory at such time, 
and (B) the product of 
85% multiplied by 
the Net Recovery 
Percentage identified in 
the most recent 
Acceptable Appraisal 
of Inventory, multiplied by 
the value (calculated 
at the lower 
of cost or 
market on a 
basis consistent 
with Loan Parties' 
historical accounting 
practices) of 
Eligible Work 
-In-Process Inventory (such 
determination may be 
made as to different 
categories of Eligible Work-In-Process Inventory based 
upon the Net Recovery Percentage applicable to such categories) at such time, 
minus
 
(h)
 
the aggregate amount 
of Reserves, if 
any, established 
by Agent from 
time 
to time under Section 2.1(c) of this Agreement. 
"Borrowing Base 
Certificate" means 
a certificate 
substantially in 
the form 
of 
Exhibit B-1 to this Agreement, which such form of Borrowing Base Certificate may be amended, 
restated, supplemented 
or otherwise 
modified from 
time to 
time (including 
without limitation 
changes to the format thereof), as approved by Agent in Agent's sole discretion. 
"Borrowing Base 
Company" means 
any US 
Loan Party 
and any 
Canadian Loan 
Party. 
"BRP/Navistar Project 
Cap Ex" 
means Capital 
Expenditures incurred 
by Loan 
Parties and 
their Subsidiaries 
in connection 
with (i) 
the purchase 
and installation 
of a 
new 
compression molding press, extruder, building expansion, silo and other supporting equipment 
in 

 

 

 

 

 

 

 

 

 

 

the Matamoros, 
Mexico facility 
to support 
existing, and 
to provide 
excess capacity 
for future, 
business from 
Bombadier Recreational 
Products Inc. 
(personal watercraft 
product) and 
(ii) the 
purchase and installation 
of a press 
and building modifications 
and production equipment 
in the 
Matamoros, Mexico 
facility for a 
new Medium 
Vocational 
“MV” Hood 
from Navistar, 
Inc., in 
each case, as more particularly described on Schedule B-1 attached hereto. 
"Business Day" 
means any 
day that 
is not 
a Saturday, 
Sunday, or 
other day 
on 
which  banks  are  authorized 
or  required  to  close 
in  the  state  of 
Illinois,  except  that,  if 
a 
determination of a Business Day shall relate 
to a LIBOR Rate Loan, the term "Business 
Day" also 
shall exclude any 
day on 
which banks are 
closed for dealings 
in Dollar 
deposits in 
the London 
interbank market. 
"Canadian Anti-Money Laundering & Anti-Terrorism Legislation" means Part II.1 
of the 
Criminal Code
, R.S.C. 
1985, c. 
C-46, 
The Proceeds 
of Crime 
(Money Laundering) 
and 
Terrorist 
Financing Act
, S.C. 2000, c. 
17 and the 
United Nations Act
, R.S.C. 1985, c.U-2 
or any 
similar Canadian legislation, together with 
all rules, regulations and interpretations 
thereunder or 
related thereto 
including, without 
limitation, the 
Regulations Implementing 
the United 
Nations 
Resolutions on 
the Suppression 
of Terrorism 
and the 
United Nations 
Al-Qaida and 
Taliban 
Regulations promulgated under the 
United Nations Act
. 
"Canadian Defined Benefit 
Plan" means any 
Canadian Pension Plan 
which contains 
a "defined benefit provision" as defined in subsection 147.1(1) of the 
Income Tax 
Act
 
(Canada). 
"Canadian Dollars" 
or "Cdn $" means 
the lawful currency 
of Canada, as 
in effect 
from time to time. 
"Canadian  Guarantor" 
means  each 
Subsidiary  of 
Administrative  Borrower 
organized under the laws of Canada, or any province thereof, that is or becomes a guarantor of all 
or any part of the Obligations. 
"Canadian Guaranty" means a 
guaranty of the Obligations, 
in form and substance 
reasonably satisfactory to 
Agent, executed and 
delivered by the 
Canadian Loan Parties 
to Agent 
and includes the guaranty set forth in the Canadian Security Agreement. 
"Canadian Loan Party" means any Canadian Guarantor. 
"Canadian Multi-Employer Plan" means a "multi-employer pension plan", as 
such 
term  is  defined  under  the  Pension  Benefits  Act  (Ontario)  or  “collectively  bargained  multi-
employer plan”, 
as such 
term is 
defined under 
the Pension 
Benefits Standards 
Act (British 
Columbia), under which a 
Canadian Loan Party is 
required to contribute pursuant 
to a collective 
bargaining agreement 
and under 
which (i) 
the sole 
obligation of the 
Canadian Loan 
Party is 
to 
make the 
contributions specified in 
the applicable 
collective bargaining 
agreement, and 
(ii) the 
Canadian Loan Party has no liability relating to any past or future withdrawals from the plan. 
"Canadian Pension 
Plans" means 
each pension 
plan that 
is a 
"registered pension 
plan" (as 
defined in 
the Income 
Tax 
Act (Canada)) 
or that 
is required 
to be 
registered under 
Canadian federal or provincial 
law with respect to 
pension benefit standards and 
that is maintained 
or contributed to, or 
to which there is 
or may be an 
obligation to contribute by 
a Loan Party or 
a 

 

 

 

 

Subsidiary thereof, 
for its 
employees or 
former employees, 
but does 
not include 
the Canada 
Pension Plan 
or the 
Quebec Pension 
Plan as 
maintained by 
the Government 
of Canada 
or the 
Province of Quebec, respectively. 
"Canadian Priority Payables 
Reserves" means reserves 
(determined from 
time to 
time by Agent 
in its Permitted 
Discretion) for: 
(a) the amount past 
due and owing 
by any Canadian 
Loan Party, or the accrued amount for 
which such Canadian Loan Party 
has an obligation to remit, 
to a Governmental Authority or other Person pursuant to any applicable 
law, rule or regulation, in 
respect of (i) 
goods and services 
taxes, harmonized sales taxes, 
other sales taxes, 
employee income 
taxes,  municipal  taxes  and  other  taxes  payable  or  to  be  remitted  or 
withheld;  (ii) workers' 
compensation or 
employment insurance; 
(iii) federal 
Canada Pension 
Plan and 
other statutory 
Pension Plan contributions; (iv) vacation or holiday pay; and (v) 
other like charges and demands, 
in each case, 
to the 
extent that 
any Governmental 
Authority or other 
Person may 
claim a 
Lien, 
trust, deemed trust 
or other claim ranking 
or capable of 
ranking in priority 
to or 
pari
 
passu
 
with 
one or more 
of the Liens 
granted in the 
Loan Documents; and 
(b) the aggregate amount 
of any 
other liabilities of 
any Canadian Loan 
Party (i) in respect 
of which a 
Lien, trust or 
deemed trust 
has been or may be imposed on any Collateral to provide for payment, or (ii) in 
respect of unpaid 
or unremitted pension 
plan contributions, including 
normal cost contributions, 
special payments 
and, without 
duplication, amounts 
representing any 
unfunded liability, 
solvency deficiency 
or 
wind-up deficiency whether or not due with respect to a Canadian Pension Plan, or (iii) which are 
secured by a 
Lien, charge, right or 
claim on any 
Collateral; in each case, 
pursuant to any 
applicable 
law, rule 
or regulation 
and which 
such Lien, 
trust, deemed 
trust, pledge, 
charge, right 
or claim 
ranks or in 
the Permitted 
Discretion of Agent, 
is capable of 
ranking in priority 
to or 
pari
 
passu
 
with one or 
more of the 
Liens granted in 
the Loan Documents 
(such as certain 
claims by employees 
for unpaid 
wages and 
other amounts 
payable under 
the Wage 
Earner Protection 
Program Act 
(Canada)); in each case net of the aggregate amount of all 
restricted cash held or set aside by such 
Canadian Loan Party for the payment of such obligations. 
"Canadian  Security 
Agreement"  means 
a  Canadian 
Guarantee  and 
Security 
Agreement  dated  as  of 
even  date  with 
the  Agreement,  in  form 
and  substance  reasonably 
satisfactory to Agent, executed 
and delivered by each 
Canadian Loan Party and 
each other Loan 
Party having Collateral located in Canada to Agent. 
"Canadian  Security 
Documents"  means, 
collectively,  the 
Canadian  Security 
Agreement, the Quebec Security 
Documents and any other Loan 
Document that grants or 
purports 
to grant a Lien 
on any of 
the assets or interests, 
and the proceeds thereof, 
of any Canadian Loan 
Party or any other Loan Party having Collateral located in Canada. 
"Capital Expenditures" 
means, with 
respect to 
any Person 
for any 
period, the 
amount of all expenditures by such Person and its Subsidiaries during such period that 
are capital 
expenditures as determined in 
accordance with GAAP, whether such expenditures are paid 
in cash 
or financed, but excluding, without duplication (a) 
with respect to the purchase price 
of assets that 
are purchased 
substantially contemporaneously 
with the 
trade-in of 
existing assets 
during such 
period, the amount that 
the gross amount of 
such purchase price is 
reduced by the credit 
granted 
by the seller 
of such assets for 
the assets being 
traded in at such 
time, (b) expenditures made 
during 
such period 
to consummate 
one or 
more Permitted 
Acquisitions, (c) 
expenditures made 
during 
such period in connection with the replacement, substitution, or restoration of assets or properties 

 

 

 

 

 

 

 

 

 

 

pursuant to 
Section 2.4(e)(iv) 
of this 
Agreement, and 
(d) expenditures during 
such period 
that, 
pursuant to a 
written agreement, are 
reimbursed by a 
third Person (excluding 
any Loan Party 
or 
any of its Affiliates). 
"Capitalized  Lease Obligation" 
means that 
portion of 
the obligations 
under a 
Capital Lease that is required to be capitalized in accordance with GAAP. 
"Capital Lease" 
means a 
lease that 
is required 
to be 
capitalized for 
financial 
reporting purposes in accordance with GAAP. 
"Cash Equivalents" means 
(a) Domestic Cash 
Equivalents; and (b) 
Foreign Cash 
Equivalents. 
"Cash Management 
Services" means 
any cash 
management or 
related services 
including treasury, 
depository, return 
items, overdraft, 
controlled disbursement, 
merchant store 
value cards, e-payables 
services, electronic funds 
transfer, interstate depository network, 
automatic 
clearing house transfer 
(including the Automated 
Clearing House processing 
of electronic funds 
transfers  through  the 
direct  Federal  Reserve 
Fedline  system)  and 
other  cash  management 
arrangements. 
"CFC" means a controlled foreign 
corporation (as that term 
is defined in the IRC) 
in which any Loan Party is a "United States shareholder" within the meaning of Section 951(b) of 
the IRC. 
"Change in Law" means the occurrence after 
the date of this Agreement of: 
(a) the 
adoption or effectiveness 
of any law, 
rule, regulation, judicial 
ruling, judgment or treaty, 
(b) any 
change in any 
law, rule, 
regulation, judicial 
ruling, judgment 
or treaty 
or in 
the administration, 
interpretation, implementation 
or application 
by any 
Governmental Authority 
of any 
law, rule, 
regulation, guideline or 
treaty, or 
(c) the making or 
issuance by any 
Governmental Authority of 
any request, 
rule, guideline 
or directive, 
whether or 
not having 
the force 
of law; 
provided, that 
notwithstanding anything 
in this 
Agreement to 
the contrary, 
(i) the Dodd-Frank 
Wall 
Street 
Reform and Consumer 
Protection Act and 
all requests, rules, 
guidelines or directives 
thereunder 
or issued in 
connection therewith, and (ii) 
all requests, rules, 
guidelines or directives 
concerning 
capital adequacy promulgated by the Bank for International Settlements, the Basel 
Committee on 
Banking Supervision 
(or any 
successor or 
similar authority) 
or the 
United States 
or foreign 
regulatory authorities shall, 
in each case, 
be deemed to 
be a "Change 
in Law," 
regardless of the 
date enacted, adopted or issued. 
"Change of Control" means that: 
(a)
 
any Person 
or two 
or more 
Persons acting 
in concert 
shall have 
acquired 
beneficial ownership, 
directly or 
indirectly, of 
Equity Interests 
of Administrative 
Borrower (or 
other securities convertible into such Equity Interests) representing 30% or more of the combined 
voting power 
of all 
Equity Interests 
of Administrative 
Borrower entitled 
(without regard 
to the 
occurrence of any contingency) 
to vote for 
the election of members 
of the Board 
of Directors of 
Administrative Borrower, 

 

 

 

 

 

 

 

 

 

(b)
 
any Person or two 
or more Persons acting in 
concert, shall have acquired 
by 
contract  or 
otherwise,  or 
shall  have 
entered  into 
a  contract 
or  arrangement 
that,  upon 
consummation thereof, will 
result in its 
or their acquisition 
of the power 
to exercise, directly 
or 
indirectly, a controlling influence over the management or policies of Administrative Borrower 
or 
control over 
the Equity 
Interests of 
such Person 
entitled to 
vote for 
members of 
the Board 
of 
Directors of Administrative 
Borrower on a 
fully-diluted basis 
(and taking 
into account 
all such 
Equity Interests that 
such Person or 
group has the 
right to acquire 
pursuant to 
any option right) 
representing 30% or more of the combined voting power of such Equity Interests, 
(c)
 
during any 
period of 
24 consecutive 
months commencing 
on or 
after the 
Closing Date, 
the occurrence 
of a 
change in 
the composition 
of the 
Board of 
Directors of 
Administrative Borrower such that a 
majority of the members of 
such Board of Directors are 
not 
Continuing Directors, or 
(d)
 
Borrowers fail to 
own and control, 
directly or indirectly, 100% 
of the Equity 
Interests of each other Loan Party. 
"Citi Purchase Documents" 
means the Citi 
Supplier Agreement, together 
with all 
related agreements, instruments and documents. 
"Citi  Supplier  Agreement"  means  a  supplier  agreement  executed 
by  Horizon 
Plastics International Inc. and Citibank, N.A. dated as of December 21, 2015. 
"Closing Date" means the date of the making of 
the Initial M/E Term Loan and the 
R/E Term Loan (or other extension of credit) under this Agreement. 
"Code" means 
the Illinois 
Uniform Commercial 
Code, as 
in effect 
from time 
to 
time. 
"Collateral" means 
all assets 
and interests 
in assets 
and proceeds 
thereof now 
owned or 
hereafter acquired 
by any 
Loan Party 
or its 
Subsidiaries in 
or upon 
which a 
Lien is 
granted by such Person in favor of Agent or the Lenders under any of the Loan Documents. 
"Collateral  Access 
Agreement"  means 
a  landlord 
waiver,  bailee 
letter,  or 
acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other 
Person 
in possession 
of, having 
a Lien 
upon, or 
having rights 
or interests 
in any 
Loan Party's 
or its 
Subsidiaries' books 
and records, 
Equipment, or 
Inventory, in 
each case, 
in form 
and substance 
reasonably satisfactory to Agent. 
"Collections"  means,  all  cash,  checks,  notes,  instruments,  and  other  items  of 
payment (including 
insurance proceeds, 
cash proceeds 
of asset 
sales, rental 
proceeds and 
tax 
refunds). 
"Commitment" means, with respect to 
each Lender, its 
Revolver Commitment, its 
M/E Term 
Loan Commitment or 
its R/E Term 
Loan Commitment, as 
the context requires, 
and, 
with respect to all Lenders, their Revolver Commitments, 
their M/E Term 
Loan Commitments or 
their R/E Term 
Loan Commitments, as the context 
requires, in each case as such Dollar 
amounts 
are set 
forth beside 
such Lender's 
name under 
the applicable 
heading on 
Schedule C-1 
to this 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agreement or in the Assignment 
and Acceptance pursuant to which such 
Lender became a Lender 
under this Agreement, as 
such amounts may be 
reduced or increased from 
time to time 
pursuant 
to assignments made in accordance with the provisions of Section 13.1 of this Agreement. 
"Commodity Exchange Act" means the Commodity Exchange 
Act (7 U.S.C. § 1 et 
seq.), as amended from time to time, and any successor statute. 
"Compliance Certificate" means a 
certificate substantially in the 
form of Exhibit C-
1 to this 
Agreement delivered by 
the chief financial 
officer or treasurer 
of Administrative Borrower 
to Agent. 
"Confidential Information" has the 
meaning specified therefor in 
Section 17.9(a) of 
this Agreement. 
"Continuing Director" means (a) any member of the Board of Directors who was a 
director (or comparable 
manager) of Administrative 
Borrower on the 
Closing Date, and 
(b) any 
individual who 
becomes a 
member of 
the Board 
of Directors 
after the 
Closing Date 
if such 
individual was 
approved, appointed 
or nominated 
for election 
to the 
Board of 
Directors by 
a 
majority of the Continuing Directors. 
"Control Agreement" means 
a control agreement, 
in form and 
substance reasonably 
satisfactory to Agent, 
executed and delivered 
by a Loan 
Party or one 
of its Subsidiaries, 
Agent, 
and the 
applicable securities 
intermediary (with 
respect to 
a Securities 
Account) or 
bank (with 
respect to a Deposit Account). 
"Copyright  Security 
Agreement"  has 
the  meaning 
specified  therefor 
in  the 
Guaranty and Security Agreement. 
"Core Composites" 
means Core Composites 
Corporation, a Delaware corporation 
and wholly-owned Subsidiary of Borrower. 
"Covered Entity" means any of the following: 
(a)
 
a "covered entity" as 
that term is defined 
in, and interpreted in 
accordance 
with, 12 C.F.R. § 252.82(b); 
(b)
 
a "covered bank" 
as that term 
is defined in, 
and interpreted in 
accordance 
with, 12 C.F.R. § 47.3(b); or 
(c)
 
a "covered 
FSI" as 
that term 
is defined 
in, and 
interpreted in 
accordance 
with, 12 C.F.R. § 382.2(b). 
"Covered  Party"  has  the  meaning  specified  therefor  in  Section  17.15 
of  this 
Agreement. 
"Default" means an event, condition, 
or default that, with the 
giving of notice, the 
passage of time, or both, would be an Event of Default. 

 

 

 

 

 

 

 

"Defaulting Lender" 
means any 
Lender that 
(a) has failed 
to (i) 
fund all 
or any 
portion of its Loans within two Business Days of the 
date such Loans were required to be funded 
hereunder unless such 
Lender notifies 
Agent and 
Administrative Borrower 
in writing 
that such 
failure is the 
result of such 
Lender's determination that 
one or more 
conditions precedent to 
funding 
(each of which 
conditions precedent, 
together with 
any applicable Default 
or Event 
of Default, 
shall be specifically identified in such writing) has not been satisfied, or (ii) pay to Agent, Issuing 
Bank, or 
any other 
Lender any 
other amount 
required to 
be paid 
by it 
hereunder (including 
in 
respect of its 
participation in Letters 
of Credit) within 
two Business Days 
of the date 
when due, 
(b) has notified any Borrower, Agent 
or Issuing Bank in writing that it 
does not intend to comply 
with its funding obligations hereunder, 
or has made a 
public statement to that effect 
(unless such 
writing or public statement relates to such 
Lender's obligation to fund a Loan 
hereunder and states 
that such position 
is based on 
such Lender's determination 
that a condition 
precedent to funding 
(which condition 
precedent, together 
with any 
applicable Default 
or Event 
of Default, 
shall be 
specifically identified 
in such 
writing or 
public statement) 
cannot be 
satisfied), (c) 
has failed, 
within three Business Days after 
written request by Agent or Administrative 
Borrower, to confirm 
in writing to Agent and Administrative 
Borrower that it will comply with 
its prospective funding 
obligations hereunder (provided, that such Lender shall 
cease to be a Defaulting Lender pursuant 
to  this  clause  (c)  upon 
receipt  of  such  written 
confirmation  by  Agent  and 
Administrative 
Borrower), or (d) has, or 
has a direct or 
indirect parent company that 
has, (i) become the 
subject 
of any Insolvency Proceeding, (ii) had appointed for 
it a receiver, custodian, 
conservator, trustee, 
administrator, assignee for 
the benefit of creditors 
or similar Person charged 
with reorganization 
or liquidation of its 
business or assets, including the 
Federal Deposit Insurance Corporation or 
any 
other state or federal regulatory 
authority acting in such 
a capacity, or 
(iii) become the subject of 
a Bail-in Action; provided, 
that a Lender shall 
not be a Defaulting Lender 
solely by virtue of 
the 
ownership or 
acquisition of 
any equity 
interest in 
that Lender 
or any 
direct or 
indirect parent 
company thereof by a Governmental Authority so long as 
such ownership interest does not result 
in or provide such Lender 
with immunity from the jurisdiction 
of courts within the 
United States 
or from the enforcement 
of judgments or writs 
of attachment on its 
assets or permit such 
Lender 
(or such 
Governmental Authority) 
to reject, 
repudiate, disavow 
or disaffirm 
any contracts 
or 
agreements made with 
such Lender. 
Any determination by 
Agent that a 
Lender is a 
Defaulting 
Lender under any 
one or more 
of clauses (a) 
through (d) above 
shall be conclusive 
and binding 
absent manifest error, 
and such Lender shall 
be deemed to be 
a Defaulting Lender upon delivery 
of written 
notice of 
such determination 
to Administrative 
Borrower, Issuing 
Bank, and 
each 
Lender. 
"Defaulting Lender Rate" 
means (a) for the first three days from and after 
the date 
the relevant payment is 
due, the Base Rate, 
and (b) thereafter, the 
interest rate then applicable 
to 
Revolving Loans that are Base Rate 
Loans (inclusive of the Base Rate 
Margin applicable thereto). 
"Default Right" has the 
meaning assigned to that 
term in, and shall 
be interpreted 
in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, 
as applicable. 
"Deposit Account" means any 
deposit account (as that 
term is defined in 
the Code). 
"Designated Account" 
means the 
Deposit Account 
of Administrative 
Borrower 
identified on Schedule 
D-1 to this 
Agreement (or such 
other Deposit Account 
of Administrative 

 

 

 

 

 

 

 

 

 

 

 

 

Borrower located at 
Designated Account 
Bank that 
has been designated 
as such, 
in writing, 
by 
Borrowers to Agent). 
"Designated Account Bank" 
has the meaning specified therefor in Schedule D-1 to 
this Agreement (or 
such other bank 
that is located 
within the United 
States that has 
been designated 
as such, in writing, by Borrowers to Agent). 
"Dilution" means, 
as of 
any date of 
determination, a 
percentage, based 
upon the 
experience of the immediately prior 12 months, that is the result of dividing the Dollar amount 
of 
(a) bad debt write-downs, 
discounts, advertising allowances, credits, 
or other dilutive 
items with 
respect to 
Borrowers' Accounts 
during such 
period, by 
(b) Borrowers' billings 
with respect 
to 
Accounts during such period. 
"Dilution Reserve (Investment Grade)" means, as of 
any date of determination, an 
amount sufficient 
to reduce 
the advance 
rate against 
Eligible Accounts 
by the 
extent to 
which 
Dilution is in excess of 2.5%. 
"Dilution   Reserve 
(Non-Investment   Grade)" 
means,   as 
of   any   date 
of 
determination, an amount 
sufficient to reduce 
the advance rate 
against Eligible Accounts 
by the 
extent to which Dilution is in excess of 5%. 
"Disqualified Equity Interests" means 
any Equity Interests that, 
by their terms 
(or 
by the terms of any security or other Equity Interests into which they are convertible or for which 
they are 
exchangeable), or 
upon the 
happening of 
any event 
or condition 
(a) matures or 
are 
mandatorily redeemable (other 
than solely for 
Qualified Equity Interests), 
pursuant to a 
sinking 
fund obligation or otherwise (except as a result of a change of control 
or asset sale so long as any 
rights of the holders thereof upon 
the occurrence of a change of 
control or asset sale event shall be 
subject to the prior 
repayment in full of 
the Loans and all 
other Obligations that are 
accrued and 
payable and the termination 
of the Commitments), (b) 
are redeemable at the 
option of the holder 
thereof (other than 
solely for Qualified 
Equity Interests), in 
whole or in 
part, (c) provide for 
the 
scheduled payments of 
dividends in cash, 
or (d) are or 
become convertible into 
or exchangeable 
for Indebtedness or any other Equity Interests that would constitute Disqualified 
Equity Interests, 
in each case, prior to the date that is 180 days after the Maturity Date. 
"Dollar Equivalent" means, 
at any time, 
with respect to 
any amount denominated 
in Canadian Dollars, the equivalent 
amount thereof in US Dollars as 
determined by Agent, at such 
time on the basis 
of the Spot Rate 
(determined in respect of 
the most recent Revaluation 
Date or 
such other date determined by Agent) for the purchase of US Dollars with Canadian Dollars. 
"Dollars" or "$" 
or "US Dollars" means United States dollars. 
"Domestic Cash Equivalents" 
means (a) marketable direct obligations 
issued by, or 
unconditionally guaranteed by, 
the United States or 
issued by any agency 
thereof and backed by 
the full faith and credit 
of the United States, in 
each case maturing within one 
year from the date 
of acquisition thereof, (b) marketable direct obligations issued or 
fully guaranteed by any state of 
the United States 
or any political 
subdivision of any 
such state or 
any public instrumentality 
thereof 
maturing within one 
year from the 
date of acquisition 
thereof and, at 
the time of 
acquisition, having 
one of the two highest ratings obtainable from either Standard & Poor's Rating Group ("S&P") or 

 

 

 

 

 

 

 

Moody's Investors Service, 
Inc. ("Moody's"), (c) 
commercial paper maturing 
no more 
than 270 
days from the date of creation thereof and, at the time of acquisition, having 
a rating of at least A-
1 from S&P or at 
least P-1 from Moody's, 
(d) certificates of deposit, time 
deposits, overnight bank 
deposits or 
bankers' acceptances 
maturing within 
one year 
from the 
date of 
acquisition thereof 
issued by any 
bank organized under the 
laws of the 
United States or 
any state thereof 
or the District 
of Columbia or any 
United States branch of 
a foreign bank having 
at the date of 
acquisition thereof 
combined capital and 
surplus of not 
less than $1,000,000,000, 
(e) Deposit Accounts 
maintained 
with (i) 
any bank that 
satisfies the 
criteria described in 
clause (d) above, 
or (ii) 
any other bank 
organized under 
the laws 
of the 
United States 
or any 
state thereof 
so long 
as the 
full amount 
maintained with any such other bank is insured by the Federal Deposit Insurance Corporation, (f) 
repurchase obligations of 
any commercial bank 
satisfying the requirements 
of clause (d) 
of this 
definition or 
recognized securities 
dealer having 
combined capital 
and surplus 
of not 
less than 
$1,000,000,000, having a 
term of not 
more than seven 
days, with respect 
to securities satisfying 
the criteria in clauses 
(a) or (d) above, 
(g) debt securities with 
maturities of six months 
or less from 
the date of 
acquisition backed by 
standby letters of 
credit issued by 
any commercial bank 
satisfying 
the criteria described in 
clause (d) above, and 
(h) Investments in money 
market funds substantially 
all of whose assets are invested in the types of assets described in clauses (a) through (g) above. 
"Domestic Subsidiary" 
means any 
Subsidiary of 
any Loan 
Party that 
is not 
a 
Foreign Subsidiary. 
"Drawing Document" means any Letter of 
Credit or other document presented 
for 
purposes of 
drawing under 
any Letter 
of Credit, 
including by 
electronic transmission 
such as 
SWIFT, electronic mail, facsimile or computer generated communication. 
"Early Opt-in Election" means the occurrence of: 
(a)
 
(i) a determination by Agent 
or (ii) a notification 
by the Required Lenders 
to Agent (with 
a copy to 
Administrative Borrower) 
that the 
Required Lenders 
have determined 
that United States dollar-denominated 
syndicated credit facilities being 
executed at such time, 
or 
that include 
language similar 
to that 
contained in 
Section 2.12(d)(iii) 
are being 
executed or 
amended, as 
applicable, to 
incorporate or 
adopt a 
new benchmark 
interest rate 
to replace 
the 
LIBOR Rate, and 
(b)
 
(i) the election 
by Agent 
or (ii) 
the election 
by the 
Required Lenders 
to 
declare that an 
Early Opt-in Election 
has occurred and 
the provision, as 
applicable, by Agent 
of 
written notice of 
such election 
to Administrative Borrower 
and the 
Lenders or by 
the Required 
Lenders of written notice of such election to Agent. 
"EBITDA" means, with respect to any fiscal period and with 
respect to Borrowers 
determined, in each case, on a consolidated basis in accordance with GAAP: 
(a)
 
the consolidated net income (or loss) for such period, 
minus
 
(b)
 
without duplication, 
the sum of 
the following amounts 
for such period 
to 
the extent included in determining consolidated net income (or loss) for such period: 

 

(i)        unusual or non-recurring gains, 

(ii)       non-cash gains 
in respect 
of post-retirement benefits 
consisting of 
health insurance and life insurance, and 
(iii)      interest income, 
plus
 
(c)
 
without duplication, 
the sum of 
the following 
amounts for 
such period to 
the extent deducted in determining consolidated net income (or loss) for such period: 
(i)        non-cash unusual and non-recurring losses, 
(ii)       Interest Expense, 
(iii)      income taxes, 

(iv)      depreciation and amortization, 
(v)       costs, 
fees, charges 
or expenses 
incurred in 
connection with 
the 
closing of 
this Agreement 
prior to, 
on or 
within 120 
days of 
the Closing 
Date in 
an aggregate 
amount not to exceed $500,000, 
(vi)      transaction fees 
and expenses in 
connection with any 
amendments 
to or 
waivers in 
connection with 
the Loan 
Documents in 
an aggregate 
amount not 
to exceed 
$250,000;
 
provided, 
that such amounts added back pursuant to this clause (vi) in any period shall, 
when aggregated with the amount of any addbacks pursuant to clauses (vii) 
and (viii), not exceed 
an aggregate amount 
equal to 10% 
of EBITDA for 
the such twelve 
month period, calculated 
before 
giving effect thereto, 
(vii)     transaction  fees 
and  expenses 
in  connection 
with  Permitted 
Acquisitions, whether 
or not 
consummated in 
an aggregate 
amount not 
to exceed 
$750,000;
 
provided, 
that such 
amounts added 
back pursuant 
to this 
clause (vii) 
in any 
period shall, 
when 
aggregated with 
the amount 
of any 
addbacks pursuant 
to clauses 
(vi) and 
(viii), not 
exceed an 
aggregate amount equal to 
10% of EBITDA for 
the such twelve month 
period, calculated before 
giving effect thereto, 
(viii) 
fees, costs 
and expenses 
in respect 
of start 
up or 
shut down 
of 
facilities (including, 
without limitation, 
relocation, severance, 
hiring and 
transition costs) 
in an 
aggregate amount not to exceed $1,000,000;
 
provided, 
that such amounts added back pursuant to 
this clause (viii) in 
any period shall, when aggregated 
with the amount of 
any addbacks pursuant 
to clauses (vi) 
and (vii), not 
exceed an aggregate 
amount equal to 
10% of EBITDA 
for the such 
twelve month period, calculated before giving effect thereto, 

(ix) non-cash 
costs and 
expenses in 
respect of 
post-retirement benefits 
consisting of health insurance and life insurance and 

 

 

 

 

 

(x)       costs, 
fees,  charges  and 
expenses  incurred  in 
connection  with 
Existing Credit Facility in an aggregate amount not to exceed $2,500,000. 
"EEA Financial 
Institution" 
means (a) 
any credit 
institution or 
investment firm 
established in any 
EEA Member Country 
which is subject to 
the supervision of 
an EEA Resolution 
Authority, (b) any entity established in 
an EEA Member 
Country which is 
a parent of 
an institution 
described in 
clause (a) 
of this 
definition, or 
(c) any financial 
institution established 
in an 
EEA 
Member Country 
which is 
a subsidiary 
of an 
institution described 
in clauses 
(a) or 
(b) of 
this 
definition and is subject to consolidated supervision with its parent. 
"EEA Member Country" means 
any of the member 
states of the European 
Union, 
Iceland, Liechtenstein, and Norway. 
"EEA Resolution 
Authority" means 
any public 
administrative authority 
or any 
person entrusted with public 
administrative authority of any 
EEA Member Country (including 
any 
delegee) having responsibility for the resolution of any EEA Financial Institution. 
"Eligible Accounts" means those Accounts created 
by a Borrowing Base Company 
in the ordinary 
course of its 
business, that arise 
out of such 
Borrowing Base Company's 
sale of 
goods or 
rendition of 
services, that 
comply with 
each of 
the representations 
and warranties 
respecting Eligible Accounts made in the 
Loan Documents, and that are 
not excluded as ineligible 
by virtue of one or more of the excluding criteria set forth below; provided, that such criteria may 
be revised from time 
to time by Agent 
in Agent's Permitted Discretion 
to address the results 
of any 
information with 
respect to 
the Borrower 
Base Companies' 
business or 
assets of 
which Agent 
becomes aware after the 
Closing Date, including any 
field examination performed by 
(or on behalf 
of) Agent from 
time to time 
after the Closing 
Date. 
In determining the 
amount to be 
included, 
Eligible Accounts 
shall be 
calculated net 
of customer 
deposits, unapplied 
cash, taxes, 
finance 
charges, service charges, 
discounts, credits, allowances, and rebates. 
Eligible Accounts shall not 
include the following: 
(a)
 
Accounts that 
the Account 
Debtor has 
failed to 
pay within 
90 days 
of 
original invoice 
date (or 
120 days 
of original 
invoice date 
in the 
case of 
Main Access 
LLC, 
including its Sunwalk division) or 60 days of due date (or 30 days of due date in the case of Main 
Access LLC, including its Sunwalk division), 
(b)
 
Accounts owed by an 
Account Debtor (or its 
Affiliates) where 50% or 
more 
of all Accounts owed by 
that Account Debtor (or its Affiliates) are 
deemed ineligible under clause 
(a) above, 
(c)
 
Accounts with selling terms of more than 60 days 
(or 90 days in the case of 
Main Access LLC, including its Sunwalk division), 
(d)
 
Accounts with respect 
to which the 
Account Debtor is 
an Affiliate of 
any 
Borrowing Base 
Company or 
an employee 
or agent 
of any 
Borrowing Base 
Company or 
any 
Affiliate of any Borrowing Base Company, 
(e)
 
Accounts  (i) 
arising  in 
a  transaction 
wherein  goods 
are  placed 
on 
consignment or are 
sold pursuant to 
a guaranteed sale, a 
sale or return, 
a sale on 
approval, a bill 

and hold 
(other than 
Accounts owed 
by Deckorators, 
Inc. (f/k/a Universal 
Consumer Products, 
Inc.), a 
Michigan corporation, 
to the 
extent Agent 
has received 
an agreement, 
in form 
and 
substance acceptable to Agent, 
confirming the unconditional obligation of the 
Account Debtor to 
take the 
Goods related 
thereto and 
pay such 
Accounts (Agent 
hereby acknowledges 
that the 
contract with D
eckorators, Inc. (f/k/a 
Universal Consumer Products, 
Inc.), a Michigan 
corporation, 
dated January 1, 
2019, as 
in effect 
on the 
date hereof, shall 
be deemed to 
satisfy the foregoing 
condition), or 
any other 
terms by reason 
of which 
the payment 
by the 
Account Debtor 
may be 
conditional, or (ii) 
with respect to 
which the payment terms 
are "C.O.D.", cash 
on delivery or 
other 
similar terms, 
(f)
 
Accounts that are not payable in US Dollars or Canadian Dollars, 
(g)
 
Accounts with 
respect to 
which the 
Account Debtor 
either (i) 
does not 
maintain its chief executive 
office in the United States 
or Canada, or (ii) 
is not organized under the 
laws of the United States or 
Canada or any state or province thereof, 
or (iii) is the government of 
any foreign country 
or sovereign state, 
or of any 
state, province, municipality, 
or other political 
subdivision thereof, 
or of 
any department, 
agency, public 
corporation, or 
other instrumentality 
thereof,  unless  (A) 
the  Account  is 
supported  by  an 
irrevocable  letter  of 
credit  reasonably 
satisfactory to Agent (as 
to form, substance, and 
issuer or domestic confirming 
bank) that has been 
delivered to Agent and, if 
requested by Agent, is directly 
drawable by Agent, or (B) 
the Account 
is covered 
by credit 
insurance in 
form, substance, 
and amount, 
and by 
an insurer, 
reasonably 
satisfactory to Agent, 
(h)
 
Accounts with 
respect to 
which the 
Account Debtor 
is (i) 
(A) the United 
States or any department, agency, 
or instrumentality of the United 
States (exclusive, however, 
of 
Accounts with 
respect to 
which Borrower 
Base Companies 
have complied, 
to the 
reasonable 
satisfaction of Agent, with the Assignment of Claims Act, 31 USC §3727), or (B) any state of the 
United States, 
or (ii) 
(A) the Government 
of Canada 
or any 
department, agency 
or instrument 
thereof (exclusive, however, of Accounts with respect to which Borrowing Base Companies have 
complied,  to 
the  reasonable  satisfaction 
of  Agent,  with 
the  Financial 
Administration  Act 
(Canada)), or 
(B) any province 
of Canada, 
or (iii) 
in the 
case of 
any  Borrower, any 
other 
Governmental Authority, 
(i)
 
Accounts with 
respect to 
which the 
Account Debtor 
is a 
creditor of 
a 
Borrowing Base Company, has or 
has asserted a right of recoupment or setoff, or 
has disputed its 
obligation to pay 
all or any 
portion of the Account, 
to the extent of 
such claim, right of 
recoupment 
or setoff, or dispute, 
(j)
 
Accounts with 
respect to 
an Account 
Debtor whose 
Eligible Accounts 
owing to 
Borrower Base 
Companies exceed 
15% (such 
percentage, as 
applied to 
a particular 
Account  Debtor, 
being  subject 
to  reduction 
by  Agent 
in  its 
Permitted  Discretion 
if  the 
creditworthiness of such Account 
Debtor deteriorates) of all 
Eligible Accounts, to the 
extent of the 
obligations owing by 
such Account Debtor 
in excess of 
such percentage (other 
than (i) with 
respect 
to UFP Industries, Inc. (f/k/a Universal Forest Product, Inc.) and Navistar, 
Inc., in which case the 
total obligations 
of such 
Account Debtor 
shall not 
exceed 30% 
of all 
Eligible Accounts, 
such 
percentage being subject to reduction by Agent in its 
Permitted Discretion if the creditworthiness 
of such Account Debtor deteriorates 
and (ii) with respect 
to Bombadier Recreational Products Inc. 

 

 

 

 

in which case 
the total obligations 
of such Account 
Debtor shall not 
exceed 20% of 
all Eligible 
Accounts, such percentage being 
subject to reduction 
by Agent in its 
Permitted Discretion if 
the 
creditworthiness of such Account Debtor deteriorates); provided, that in each case, the amount 
of 
Eligible Accounts 
that are 
excluded because 
they exceed 
the foregoing 
percentage shall 
be 
determined by Agent based on all of the otherwise Eligible Accounts prior to 
giving effect to any 
eliminations based upon the foregoing concentration limit, 
(k)
 
Accounts  with  respect  to  which 
the  Account  Debtor  is  subject 
to  an 
Insolvency Proceeding, is 
not Solvent, 
has gone out 
of business, or 
as to which 
any Borrowing 
Base  Company  has 
received  notice  of 
an  imminent  Insolvency 
Proceeding  or  a 
material 
impairment of the financial condition of such Account Debtor, 
(l)
 
Accounts,  the  collection  of  which,  Agent,  in  its  Permitted  Discretion, 
believes to be doubtful, including by reason of the Account Debtor's financial condition, 
(m)
 
Accounts that are not 
subject to a valid 
and perfected first priority 
Agent's 
Lien, 
(n)
 
Accounts with respect 
to which (i) 
the goods giving 
rise to such 
Account 
have not been 
shipped and 
billed to 
the Account 
Debtor, or 
(ii) the services giving 
rise to 
such 
Account have not been performed and billed to the Account Debtor, 
(o)
 
Accounts with respect to which the Account Debtor is a Sanctioned Person 
or Sanctioned Entity, 

(p)
 
Accounts (i) that represent 
the right to 
receive progress payments 
or other 
advance billings that are due prior to the completion of performance by the applicable Borrowing 
Base Company of the subject contract for 
goods or services, or (ii) that represent credit 
card sales, 

(q)
 
at any time that the Citi Purchase Documents are 
in effect, Accounts owing 
by Xylem, Inc. or any Subsidiary or Affiliate 
of Xylem, Inc. to Borrowing Base Companies, or 
(r)
 
Accounts  owned  by  a  target  acquired  in 
connection  with  a  Permitted 
Acquisition or 
Permitted Investment, 
or Accounts 
owned by 
a Person 
that is 
joined to 
this 
Agreement as a Borrower pursuant to 
the provisions of this Agreement, until 
the completion of a 
field examination with 
respect to such 
Accounts, in each 
case, satisfactory to 
Agent in its 
Permitted 
Discretion. 
"Eligible Finished 
Goods Inventory" 
means Inventory 
that qualifies 
as Eligible 
Inventory and 
consists of 
finished goods 
of good 
and merchantable quality 
held for 
sale in 
the 
ordinary course of Borrower Base Companies' business. 
"Eligible Investment 
Grade Accounts" 
means Eligible 
Accounts with 
respect to 
which the Account Debtor 
is a Person with a 
rating of 
at least BBB- by 
S&P and Baa3 by 
Moody's 
(other than Eligible Tooling Accounts).
 
"Eligible Inventory" means 
Inventory of a 
Borrowing Base Company, that 
complies 
with each of 
the representations 
and warranties respecting 
Eligible Inventory made 
in the 
Loan 

 

 

 

 

 

 

 

 

Documents, and that is 
not excluded as ineligible 
by virtue of one 
or more of the excluding 
criteria 
set forth below; provided, that such criteria may be revised from time to time by Agent in Agent's 
Permitted Discretion to address 
the results of any 
information with respect to 
the Borrower Base 
Companies' business or 
assets of which 
Agent becomes aware 
after the Closing 
Date, including 
any field 
examination or 
appraisal performed 
or received 
by Agent 
from time 
to time 
after the 
Closing Date. 
In determining the amount to be 
so included, Inventory shall be valued at 
the lower 
of cost 
or market 
on a 
basis consistent 
with Borrower 
Base Companies' 
historical accounting 
practices. 
An item of Inventory shall not be included in Eligible Inventory if: 
(a)
 
a Borrowing Base Company 
does not have good, valid, 
and marketable title 
thereto, 
(b)
 
a Borrowing Base Company does not have actual and exclusive possession 
thereof (either directly or through a bailee or agent of a Borrowing Base Company), 
(c)
 
it is not 
located at one 
of the locations 
in the continental 
United States or 
Canada set 
forth on 
Schedule 4.25 
to this 
Agreement (as such 
Schedule 4.25 
may be 
amended 
from time to time in 
accordance with Section 5.14) (or 
in-transit from one such location 
to another 
such location), 
(d)
 
it is stored at locations holding 
less than $100,000 of the aggregate value 
of 
such Borrowing Base Company's Inventory, 
(e)
 
it is in-transit 
to or from 
a location of 
a Borrowing Base 
Company (other 
than in-transit from one location set forth on 
Schedule 4.25 to this Agreement to another location 
set forth on Schedule 4.25 
to this Agreement (as such 
Schedule 4.25 may be 
amended from time 
to time in accordance with Section 5.14)), 
(f)
 
it is located on real 
property leased by a Borrowing 
Base Company or in a 
contract warehouse or 
with a bailee, 
in each case, 
unless either (i) 
it is subject 
to a Collateral 
Access 
Agreement executed by 
the lessor or 
warehouseman, as the 
case may be, 
and it is 
segregated or 
otherwise separately identifiable from 
goods of others, if 
any, stored on the premises, or (ii) 
Agent 
has established a Landlord Reserve with respect to such location, 
(g)
 
it is the subject of a bill of lading or other document of title, 
(h)
 
it is not subject to a valid and perfected first priority Agent's Lien, 
(i)
 
it consists of 
goods returned or 
rejected by a 
Borrowing Base Company's 
customers, 
(j)
 
it consists of goods that 
are obsolete, slow moving, spoiled 
or are otherwise 
past the stated expiration, "sell-by" or "use 
by" date applicable thereto, restrictive or custom items 
or otherwise 
is manufactured 
in accordance 
with customer-specific 
requirements, or 
goods that 
constitute spare parts, packaging and 
shipping materials, supplies used or 
consumed in Borrower 
Base Companies' business, bill and hold goods, defective 
goods, "seconds," or Inventory acquired 
on consignment, 

 

 

 

 

 

 

 

 

 

(k)
 
it is subject 
to third party 
intellectual property, licensing or 
other proprietary 
rights, unless Agent is satisfied 
in its Permitted Discretion 
that such Inventory can be 
freely sold 
by Agent on and after the occurrence of an Event of a Default despite such third party rights, or 
(l)
 
it was 
acquired in 
connection with 
a Permitted 
Acquisition or 
Permitted 
Investment, or such Inventory 
is owned by a Person 
that is joined to this 
Agreement as a Borrower 
pursuant to the provisions of 
this Agreement, until the completion 
of an Acceptable Appraisal of 
such Inventory and 
the completion 
of a field 
examination with respect 
to such Inventory 
that is 
satisfactory to Agent in its Permitted Discretion. 
"Eligible M&E 
" 
means M&E 
of a 
Borrower Base 
Company, that 
complies with 
each of the representations 
and warranties respecting Eligible 
M&E made in the Loan 
Documents, 
and that is 
not excluded as 
ineligible by virtue 
of one or 
more of the 
excluding criteria set 
forth 
below; provided, that 
such criteria may 
be revised from time 
to time by 
Agent in Agent's 
Permitted 
Discretion to address 
the results 
of any due 
diligence information 
with respect 
to the 
Borrower 
Base Companies' 
business or 
assets of 
which Agent 
becomes aware 
after the 
Closing Date, 
including any field 
examination or 
appraisal performed or 
received by Agent 
from time to 
time 
after the Closing Date. 
An item of M&E shall not be included in Eligible M&E if: 
(a)
 
it is not subject to a valid and perfected first priority Agent's Lien, 
(b)
 
a Borrower Base Company does not have 
good, valid, and marketable title 
thereto, 
(c)
 
a Borrower Base 
Company does not 
have actual and 
exclusive possession 
thereof (either directly or through a bailee or agent of 
a Borrower Base Company), including as a 
result of the lease thereof by a Borrower Base Company, 
(d)
 
it is not 
located at one 
of the locations 
in the continental 
United States or 
Canada set 
forth on 
Schedule 4.25 
to this 
Agreement (or 
in-transit from 
one such 
location to 
another such location) (as 
such Schedule 4.25 may 
be amended from time 
to time in 
accordance 
with Section 5.14), 
(e)
 
it is in-transit to 
or from a 
location of a 
Borrower Base Company 
(other than 
in-transit from one 
location set forth 
on Schedule 4.25 
to this Agreement 
to another location 
set 
forth on Schedule 4.25 to 
this Agreement) (as such Schedule 
4.25 may be amended 
from time to 
time in accordance with Section 5.14), 
(f)
 
(i) it is "subject to" (within the 
meaning of Section 9-311 
of the Code) any 
certificate of title 
(or comparable) statute 
(unless Agent has 
a first priority, 
perfected Lien under 
such statute 
and Agent 
has possession 
and custody 
of such 
certificate), or 
(ii) in the 
case of 
Borrowing Base Companies 
that are Canadian 
Loan Parties, it 
is Equipment bearing 
a VIN number 
or "serial number goods" or "serial 
numbered goods" within the meaning of 
the applicable PPSA 
(unless  filings  against  such  Equipment  or  Goods  under  the  applicable 
PPSA  including  the 
corresponding VINs or serial numbers, satisfactory to the Agent, have been made), 

 

 

 

 

 

 

(g)
 
it does not meet (unless 
it is under repair or 
held for repair for 
the purpose 
of meeting), in all material respects, all applicable safety or regulatory requirements applicable to 
it by law for the use for which it is intended or for which it is being used, 
(h)
 
it  is  not  used  or  usable  in  the  ordinary  course  of  the  Borrower  Base 
Companies' business due to 
a damaged or inoperable 
condition (other than M&E 
under repair or 
held for repair for such purpose), 
(i)
 
it does not meet (unless 
it is under repair or 
held for repair for 
the purpose 
of meeting), in all material respects, all applicable requirements of all motor vehicle laws or other 
statutes and 
regulations established 
by any 
Governmental Authority 
then applicable 
to such 
Equipment, or is subject to any licensing or 
similar requirement, 
(j)
 
it is located 
on real property 
leased by a 
Borrower Base Company 
or in a 
contract warehouse, in 
each case, unless 
either (i) it 
is subject to 
a Collateral Access Agreement 
executed by 
the lessor 
or warehouseman, 
as the 
case may 
be, and 
unless it 
is segregated 
or 
otherwise separately identifiable from 
equipment of others, if 
any, stored 
on the premises, or 
(ii) 
Agent has established a Landlord Reserve with respect to such location, 
(k)
 
its use or 
operation requires proprietary 
software that is 
not freely assignable 
to Agent, or 
(l)
 
an Acceptable Appraisal of such M&E has not been completed. 
"Eligible Mexican 
Accounts" means 
Accounts owing 
from an 
Account Debtor 
identified on 
Schedule E-3 
that meet 
all the 
criteria of 
Eligible Accounts 
other than 
clause (g) 
thereof solely as a result of such Account Debtor being organized under the laws of Mexico. 
"Eligible Non-Investment Grade 
Accounts" means Eligible 
Accounts that are 
not 
Eligible Investment Grade Accounts or Eligible Tooling Accounts. 
"Eligible  Raw  Material  Inventory"  means  Inventory  that  qualifies  as  Eligible 
Inventory and consists of goods that are raw materials of good and merchantable quality. 
"Eligible Real 
Property" means 
Real Property 
owned in 
fee by 
Borrower that 
complies with 
each of 
the representations 
and warranties 
respecting Real 
Property made 
in the 
Loan Documents, and that is not 
excluded as ineligible by virtue of one or 
more of the excluding 
criteria set forth below; provided, that such criteria may be revised from time 
to time by Agent in 
Agent's  Permitted  Discretion  to  address  the 
results  of  any  information  with  respect  to 
the 
Borrowers' business or 
assets of which Agent 
becomes aware after 
the Closing Date, including 
any 
field examination 
or appraisal 
performed by 
or received 
by Agent 
from time 
to time 
after the 
Closing Date. 
An item of Real Property shall not be included in Eligible Real Property if: 
(a)
 
it is not identified 
on Schedule E-2 to 
the Agreement as of 
the Closing Date, 
(b)
 
a Borrower does not have good, valid, and marketable fee title thereto, 

 

 

 

 

(c)
 
it  is 
not  Real 
Property  with 
respect  to 
which  Agent 
has  received 
(i) mortgagee title insurance policies 
issued by a title 
insurance company reasonably satisfactory 
to Agent in amounts reasonably satisfactory to Agent (but in no 
event less than the FMV thereof) 
assuring Agent that 
the Mortgages on 
such Real Property 
are valid and 
enforceable first priority 
mortgage Liens 
on such 
Real Property 
free and 
clear of 
all defects 
and encumbrances 
except 
Permitted Liens, and otherwise in 
form and substance reasonably 
satisfactory to Agent, (ii) ALTA 
surveys in form 
and substance reasonably 
satisfactory to Agent, 
(iii) phase-I environmental reports 
with respect to each 
parcel composing the Real 
Property (the environmental 
consultants retained 
for such 
reports, the 
scope of 
the reports, 
and the 
results thereof 
of which 
shall be 
reasonably 
satisfactory to Agent), and (iv) flood certifications 
(and, if applicable, acceptable flood insurance 
and FEMA form acknowledgements of insurance), 
(d)
 
an  Acceptable  Appraisal  of  such  item  of  Real  Property  has 
not  been 
completed, 
(e)
 
it is not 
Real Property Collateral 
subject to a 
valid and perfected 
first priority 
Agent's Lien, or 
(f)
 
it is subject to any Lien other than Permitted Liens of the 
type described in 
clauses (a), (b), (c), (g), or (k) of the definition thereof. 
"Eligible Tooling Accounts" 
means Eligible Accounts 
owing in respect of the sale 
of Tooling by Borrower.
 
"Employee Benefit Plan" means any employee 
benefit plan within the meaning of 
Section 3(3) of 
ERISA, that is subject 
to ERISA and (a) 
that is or within 
the preceding six (6) 
years 
has been sponsored, maintained or 
contributed to by any Loan 
Party or ERISA Affiliate 
or (b) to 
which any Loan Party or ERISA Affiliate has, or has 
had at any time within the preceding six (6) 
years, any liability, contingent or otherwise, other than a Multiemployer Plan. 
"Environmental Action" means 
any written complaint, 
summons, citation, notice, 
directive, order, 
claim, litigation, investigation, 
judicial or administrative 
proceeding, judgment, 
letter, or 
other written 
communication from 
any Governmental 
Authority, or 
any third 
party 
involving violations 
of Environmental 
Laws or 
releases of 
Hazardous Materials 
(a) from any 
assets, properties, or businesses of any Borrower, any Subsidiary of any Borrower, or any of their 
predecessors in 
interest, (b) 
from adjoining 
properties or 
businesses, or 
(c) from or 
onto any 
facilities which received Hazardous Materials 
generated by any Borrower, 
any Subsidiary of any 
Borrower, or any of their predecessors in interest. 
"Environmental Law" 
means any 
applicable federal, 
state, provincial, 
foreign or 
local statute, law, rule, 
regulation, ordinance, code, 
binding and enforceable 
guideline, binding and 
enforceable written policy, 
or rule of common 
law now or hereafter 
in effect and 
in each case as 
amended,  or  any  judicial  or 
administrative  interpretation  thereof,  including  any 
judicial  or 
administrative order, consent decree or judgment, in each case, to the extent 
binding on any Loan 
Party or its Subsidiaries, 
relating to the 
environment, the effect 
of the environment 
on employee 
health, or Hazardous Materials, in each case as amended from time to time. 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Environmental  Liabilities"  means  all  liabilities,  monetary  obligations,  losses, 
damages, costs 
and expenses 
(including all 
reasonable fees, 
disbursements and 
expenses of 
counsel, experts, or consultants, and 
costs of investigation and feasibility 
studies), fines, penalties, 
sanctions, and interest 
incurred under Environmental 
Law, including 
as a result 
of any claim 
or 
demand, or 
Remedial Action 
required, by 
any Governmental 
Authority or 
any third 
party, and 
which relate to any Environmental Action. 
"Environmental Lien" means any Lien in favor of any 
Governmental Authority for 
Environmental Liabilities. 
"Equipment" means equipment (as that 
term is defined in the Code 
or, to the extent 
applicable, the PPSA). 
"Equity Interests" 
means, with 
respect to 
a Person, 
all of 
the shares, 
options, 
warrants, interests, participations, or 
other equivalents (regardless of 
how designated) of or 
in such 
Person, whether voting or 
nonvoting, including capital stock 
(or other ownership or 
profit interests 
or units), preferred stock, or any other 
"equity security" (as such term is defined in 
Rule 3a11-1 of 
the General Rules and Regulations promulgated by the SEC under the Exchange Act). 
"ERISA"  means  the  Employee 
Retirement  Income  Security  Act 
of  1974,  as 
amended, and any successor statute thereto. 
"ERISA Affiliate 
" 
means (a) any Person 
subject to 
ERISA whose employees 
are 
treated as employed by the same employer as the employees of any Loan Party or its Subsidiaries 
under IRC Section 
414(b), (b) any trade 
or business subject 
to ERISA whose 
employees are treated 
as employed by the same 
employer as the employees of 
any Loan Party or its 
Subsidiaries under 
IRC Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, 
any organization subject 
to ERISA that 
is a member 
of an affiliated 
service group of 
which any 
Loan Party 
or any 
of its 
Subsidiaries is 
a member under 
IRC Section 
414(m), or 
(d) solely for 
purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that 
is a party to an arrangement with 
any Loan Party or any of its 
Subsidiaries and whose employees 
are aggregated 
with the 
employees of 
such Loan 
Party or 
its Subsidiaries 
under IRC 
Section 
414(o). 
"EU Bail-In 
Legislation Schedule" 
means the 
EU Bail-In 
Legislation Schedule 
published by the 
Loan Market 
Association (or 
any successor 
person), as 
in effect 
from time 
to 
time. 
"Event  of  Default 
" 
has  the  meaning 
specified  therefor  in 
Section  8  of 
this 
Agreement. 
"Excess" has the meaning specified therefor in Section 2.14 of this Agreement. 
"Excess Availability" 
means, as of any date of 
determination, the amount equal to 
Availability 
minus
 
the aggregate amount, if any, of all trade payables of the 
Loan Parties and their 
Subsidiaries aged in excess of historical 
levels with respect thereto and all book 
overdrafts of the 
Loan Parties and 
their Subsidiaries in 
excess of historical 
practices with respect 
thereto, in each 
case as determined by Agent in its Permitted Discretion. 

 

 

 

 

 

 

 

"Exchange Act" means the Securities Exchange 
Act of 1934, as in effect 
from time 
to time. 
"Exchange Rate 
" 
means and 
refers to 
the nominal 
rate of 
exchange (vis 
-à-vis 
Dollars) for a currency other 
than Dollars published in the 
Wall 
Street Journal (Western 
Edition) 
on the 
date of 
determination (which 
shall be 
a Business 
Day on 
which the 
Wall 
Street Journal 
(Western Edition) 
is published), expressed as the 
number of units of 
such other currency per one 
Dollar. 

"Excluded Swap 
Obligation" means, 
with respect 
to any 
Loan Party, 
any Swap 
Obligation if, and 
to the extent 
that, all or 
a portion of 
the guaranty of 
such Loan Party 
of (including 
by virtue of 
the joint and 
several liability provisions 
of Section 2.16), 
or the grant 
by such Loan 
Party of a 
security interest to secure, 
such Swap Obligation 
(or any guaranty 
thereof) is or 
becomes 
illegal under 
the Commodity 
Exchange Act 
or any 
rule, regulation 
or order 
of the 
Commodity 
Futures Trading Commission (or the application or official interpretation of any 
thereof) by virtue 
of such Loan 
Party's failure for 
any reason to 
constitute an "eligible 
contract participant" as 
defined 
in the Commodity Exchange 
Act and the regulations 
thereunder at the time 
the guaranty of such 
Loan Party 
or the 
grant of 
such security 
interest becomes 
effective with 
respect to 
such Swap 
Obligation. 
If a Swap Obligation arises 
under a master agreement governing more 
than one swap, 
such exclusion shall apply 
only to the portion 
of such Swap Obligation 
that is attributable to 
swaps 
for which such guaranty or security interest is or becomes illegal. 
"Excluded Taxes 
" 
means (i) any tax 
imposed on the 
net income 
or net 
profits of 
any Lender or 
any Participant (including 
any branch profits 
taxes), in each 
case imposed by 
the 
jurisdiction (or by any 
political subdivision or 
taxing authority thereof) 
in which such 
Lender or 
such Participant is organized or the 
jurisdiction (or by any 
political subdivision or taxing authority 
thereof) in which such Lender's or such Participant's principal office 
is located in or as a result of 
a present or 
former connection 
between such 
Lender or 
such Participant 
and the 
jurisdiction or 
taxing authority imposing the tax (other 
than any such connection arising solely 
from such Lender 
or such Participant 
having executed, delivered 
or performed its 
obligations or received 
payment 
under, or enforced its rights 
or remedies under this Agreement or any other 
Loan Document), (ii) 
withholding taxes that would not have been imposed but 
for a Lender's or a Participant's failure to 
comply with the 
requirements of Section 
16.2 of this 
Agreement, (iii) any United 
States federal 
withholding taxes that would be imposed on amounts payable to 
a Foreign Lender based upon the 
applicable withholding 
rate in 
effect at 
the time 
such Foreign 
Lender becomes 
a party 
to this 
Agreement (or designates a new 
lending office, other than 
a designation made at the 
request of a 
Loan Party), 
except that 
Excluded Taxes 
shall not 
include (A) 
any amount 
that such 
Foreign 
Lender (or its assignor, 
if any) was previously entitled 
to receive pursuant to 
Section 16.1 of this 
Agreement, if any, with respect to such withholding tax at the time such Foreign Lender becomes 
a party to 
this Agreement (or 
designates a new 
lending office), and 
(B) additional United States 
federal withholding taxes that 
may be imposed 
after the time such 
Foreign Lender becomes a 
party 
to this 
Agreement (or 
designates a 
new lending 
office), as 
a result 
of a 
change in 
law, rule, 
regulation, treaty, 
order or 
other decision 
or other 
Change in 
Law with 
respect to 
any of 
the 
foregoing by any 
Governmental Authority, 
and (iv) any 
United States federal 
withholding taxes 
imposed under FATCA. 

 

 

 

 

 

 

 

 

 

 

 

 

 
"Existing Credit Facility" means the facilities 
evidenced by that certain Amended 
and Restated Credit Agreement, 
initially dated as of 
January 16, 2018, among 
Borrower, KeyBank 
National  Association,  as  administrative  agent,  and  the  lenders  and  other  parties  thereto,  as 
amended prior to the date hereof. 
"Extraordinary Advances" 
has the meaning specified therefor in Section 2.3(d)(iii) 
of this Agreement. 
"Extraordinary Receipts 
" 
means (a) 
so long 
as no 
Event of 
Default has 
occurred 
and is continuing, 
proceeds of judgments, 
proceeds of settlements, 
or other consideration 
of any 
kind received in connection 
with any cause of action 
or claim, and (b) if an 
Event of Default has 
occurred and is 
continuing, any payments 
received by any 
Loan Party or 
any of its 
Subsidiaries 
not in 
the ordinary 
course of 
business (and 
not consisting 
of proceeds 
described in 
Section 
2.4(e)(iii) of this Agreement) consisting of 
(i) proceeds of judgments, proceeds of settlements, 
or 
other consideration of any kind received in connection with any cause of action 
or claim (and not 
consisting of proceeds described 
in Section 2.4(e)(iii) 
of this Agreement, but 
including proceeds 
of  business  interruption  insurance), 
(ii) indemnity  payments  (other  than 
to  the  extent  such 
indemnity payments are immediately payable 
to a Person that is not 
an Affiliate of any Loan 
Party 
or any of its Subsidiaries, and (iii) any purchase price adjustment received in connection with any 
purchase agreement. 
"FATCA 
" 
means Sections 
1471 through 
1474 of 
the IRC, 
as of 
the date 
of this 
Agreement  (or  any amended 
or successor 
version that 
is substantively 
comparable and 
not 
materially more 
onerous to 
comply with), 
and (a) 
any current 
or future 
regulations or 
official 
interpretations thereof, (b) any agreements entered 
into pursuant to Section 1471(b)(1) 
of the IRC, 
and (c) 
any intergovernmental 
agreement entered 
into by 
the United 
States (or 
any fiscal 
or 
regulatory  legislation, 
rules,  or 
practices  adopted 
pursuant  to 
any  such 
intergovernmental 
agreement entered into in connection therewith). 
"FCPA" 
means the 
Foreign Corrupt 
Practices Act 
of 1977, 
as amended, 
and the 
rules and regulations thereunder. 
"Federal Funds Rate" means, 
for any period, a 
fluctuating interest rate 
per annum
 
equal to, for each day during 
such period, the weighted average 
of the rates on overnight 
Federal 
funds transactions 
with members 
of the 
Federal Reserve 
System, as 
published on 
the next 
succeeding Business 
Day by 
the Federal 
Reserve Bank 
of New 
York, 
or, if 
such rate 
is not 
so 
published for any day which is a 
Business Day, the average of the quotations for such day 
on such 
transactions received by Agent 
from three Federal funds 
brokers of recognized standing 
selected 
by it (and, if any such rate is below zero, then the rate determined pursuant to this definition shall 
be deemed to be zero). 
"Federal Reserve Bank of 
New York's 
Website" 
means the website of the 
Federal 
Reserve Bank of New York 
at http://www.newyorkfed.org, or 
any successor source. 
"Fee Letter" means 
that certain fee 
letter, dated as of 
even date with 
this Agreement, 
among Borrowers and Agent, in form and substance reasonably satisfactory to Agent. 

 

 

 

 

 

 

 

"Fixed Charges" 
means, with 
respect to 
any fiscal 
period and 
with respect 
to 

Borrowers determined 
on a 
consolidated basis 
in accordance 
with GAAP, 
the sum, 
without 
duplication,  of 
(a) Interest  Expense 
required  to 
be  paid 
(other  than 
interest  paid 
-in-kind, 
amortization  of  financing 
fees,  and  other 
non-cash  Interest 
Expense)  during  such 
period, 
(b) scheduled principal payments 
in respect 
of Indebtedness 
that are 
required to 
be paid 
during 
such period, (c) all federal, state, 
and local income taxes required 
to be paid during 
such period (to 
the extent not included in EBITDA, net 
of income tax refunds received in cash 
during such period 
in an amount not to exceed such income taxes paid)
, 
(d) all Restricted Payments paid (whether in 
cash or other 
property, other than Equity Interests 
that are not Disqualified 
Equity Interests) during 
such period, (e) cash 
payments in respect of 
post-retirement benefits consisting of 
health insurance 
and life insurance, and (f) to the extent not otherwise deducted from EBITDA for such period, all 
payments required to be made during such period in respect of any funding deficiency or funding 
shortfall with respect to any Pension Plan or for any Withdrawal Liability. 
"Fixed Charge Coverage 
Ratio" means, with respect 
to any fiscal period 
and with 
respect to Borrowers 
determined on a 
consolidated basis in 
accordance with GAAP, 
the ratio of 
(a) EBITDA for 
such period 
minus
 
Unfinanced Capital 
Expenditures made 
(to the 
extent not 
already incurred in 
a prior period) 
or incurred during 
such period, to 
(b) Fixed Charges for 
such 
period. 
"Flow of Funds 
Agreement" means 
a flow of 
funds agreement, 
dated as 
of even 
date with this 
Agreement, in form 
and substance reasonably 
satisfactory to Agent, 
executed and 
delivered by Borrowers and Agent. 
"FMV"
 
means, as of any date of 
determination, the fair market value of 
Borrowers' 
Eligible Real 
Property that 
is estimated 
to be 
recoverable in 
an orderly 
sale in 
a 12 
month 
marketing period of such 
Eligible Real Property net 
of all associated 
costs and expenses 
of such 
sale, such 
value to 
be as 
specified in 
the most 
recent Acceptable 
Appraisal of 
Real Property; 
provided, that, for 
purposes of the 
R/E Borrowing Base, 
the FMV of 
any Eligible Real 
Property 
shall not exceed the lesser of (x) amount of title insurance obtained by Agent with respect to such 
Eligible Real Property 
and (y) the 
maximum amount 
secured by the 
Mortgage on such 
Eligible 
Real Property 
"Foreign Cash Equivalents" 
means (a) certificates of deposit, bankers' 
acceptances, 
or time deposits 
maturing within one 
year from the 
date of acquisition 
thereof, in each 
case payable 
in an Agreed 
Currency and issued 
by any bank 
organized under the 
laws of any 
Specified State 
and having 
at the 
date of 
acquisition thereof 
combined capital 
and surplus 
of not 
less than 
$1,000,000,000  (calculated 
at  the 
then  applicable 
Exchange  Rate), 
(b) Deposit  Accounts 
maintained  with 
any  bank 
that  satisfies 
the  criteria 
described  in 
clause  (a) 
above,  and 
(c) Investments in money market funds 
substantially all of whose assets 
are invested in the 
types 
of assets described in clauses (a) through (b) above. 
"Foreign Lender" means 
any Lender or 
Participant that is 
not a United 
States person 
within the meaning of IRC section 7701(a)(30). 

 

 

 

 

 

 

 

 

 

 

 

 

"Foreign Subsidiary" means 
any direct or 
indirect Subsidiary of 
any Loan Party 
that 
is organized under 
the laws of 
any jurisdiction other 
than the United 
States, any state 
thereof or 
the District of Columbia. 
"Funded Indebtedness" means, as 
of any date of 
determination, all Indebtedness for 
borrowed  money  or  letters 
of  credit  of  Borrowers, 
determined  on  a  consolidated 
basis  in 
accordance with GAAP, 
including, in any event, but without duplication, with respect 
to the Loan 
Parties and 
their Subsidiaries, 
the Revolver 
Usage, the 
Term Loan, 
and the 
amount of 
their 
Capitalized Lease Obligations. 
"Funding Date" 
means the date on which a Borrowing occurs. 
"Funding Losses" has the 
meaning specified therefor in 
Section 2.12(b)(ii) of this 
Agreement. 
"GAAP" means generally accepted accounting 
principles as in effect from 
time to 
time in the United States, consistently applied. 
"Governing Documents" 
means, with 
respect to 
any Person, 
the certificate 
or 
articles of incorporation, by-laws, or other organizational documents of such Person. 
"Governmental Authority" 
means the 
government of 
any nation 
or any 
political 
subdivision thereof, whether at the national, state, territorial, provincial, county, municipal or any 
other level, 
and any 
agency, authority, 
instrumentality, regulatory 
body, court, 
central bank 
or 
other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers 
or functions 
of, or 
pertaining to, 
government (including 
any supra-national 
bodies such 
as the 
European Union or the European Central Bank). 
"Guarantor"  means 
(a) each  Person 
that  guaranties 
all  or 
a  portion 
of  the 
Obligations, including 
Canadian Loan 
Parties and 
any Person 
that is 
a "Guarantor" 
under the 
Guaranty and Security 
Agreement, and (b) 
each other Person 
that becomes a 
guarantor after the 
Closing Date pursuant to Section 5.11 of this Agreement. 
"Guaranty and 
Security Agreement" 
means a 
guaranty and 
security agreement, 
dated as of even 
date with this Agreement, 
in form and substance 
reasonably satisfactory to Agent, 
executed and delivered by each of the Loan Parties to Agent. 
"Hazardous  Materials"  means  (a) 
substances  that  are  defined 
or  listed  in, 
or 
otherwise classified 
pursuant to, 
any applicable 
laws or 
regulations as 
"hazardous substances," 
"hazardous materials," "hazardous wastes," "toxic substances," or any other formulation intended 
to define, 
list, or 
classify substances 
by reason 
of deleterious 
properties such 
as ignitability, 
corrosivity, reactivity, 
carcinogenicity, reproductive 
toxicity, or 
"EP toxicity", (b) oil, petroleum, 
or petroleum 
derived substances, 
natural gas, 
natural gas 
liquids, synthetic 
gas, drilling 
fluids, 
produced waters, and other wastes associated with the exploration, development, or production of 
crude oil, natural gas, or geothermal resources, 
(c) any flammable substances or explosives or any 
radioactive materials, and (d) asbestos in any form or electrical equipment that contains any oil or 
dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Hedge Agreement" means 
a "swap agreement" as 
that term is defined 
in Section 
101(53B)(A) of the Bankruptcy Code. 
"Hedge Obligations" means any and all obligations 
or liabilities, whether absolute 
or contingent, due or to become due, now existing or hereafter arising, of each 
Loan Party and its 
Subsidiaries arising under, owing pursuant to, or existing in respect 
of Hedge Agreements entered 
into with one or more of the Hedge Providers. 
"Hedge Provider 
" 
means any 
Bank Product 
Provider that 
is a 
party to 
a Hedge 
Agreement with a 
Loan Party or 
its Subsidiaries or otherwise 
provides Bank Products under 
clause 
(f) of the 
definition thereof; provided, 
that if, at 
any time, a 
Lender ceases to 
be a Lender 
under 
this Agreement (prior to 
the payment in full 
of the Obligations), then, 
from and after the 
date on 
which it ceases to be 
a Lender thereunder, neither it nor any 
of its Affiliates shall constitute Hedge 
Providers and the 
obligations with 
respect to Hedge 
Agreements entered 
into with 
such former 
Lender or any of its Affiliates shall no longer constitute Hedge Obligations. 

"Increase" has the meaning specified therefor in Section 2.14. 
"Increase Date" 
has the meaning specified therefor in Section 2.14. 
"Increase Joinder" 
has the meaning specified therefor in Section 2.14. 
"Increased Reporting 
Event" means 
if at 
any time 
Availability is 
less than 
the 
greater of (a) 15% of the Maximum Revolver Amount, and (b) $3,750,000. 
"Increased Reporting Period" means the period commencing after 
the continuance 
of an Increased Reporting Event and 
continuing until the date when no Increased 
Reporting Event 
has occurred for 30 consecutive days. 
"Indebtedness" as 
to any 
Person means 
(a) all obligations 
of such 
Person for 
borrowed money, 
(b) all obligations 
of such 
Person evidenced 
by bonds, 
debentures, notes, 
or 
other similar instruments and all reimbursement or other obligations in respect of letters of credit, 
bankers acceptances, or 
other financial products, 
(c) all obligations of 
such Person as 
a lessee under 
Capital Leases, (d) 
all obligations or 
liabilities of others 
secured by a 
Lien on any 
asset of such 
Person, irrespective of whether such 
obligation or liability is 
assumed, (e) all obligations of 
such 
Person to 
pay the 
deferred purchase 
price of 
assets (other 
than trade 
payables incurred 
in the 
ordinary course of business 
and repayable in 
accordance with customary 
trade practices and, 
for 
the avoidance of doubt, other than royalty payments payable in the ordinary course of business in 
respect of non-exclusive licenses) and, to the extent required to be recognized as a liability on the 
balance sheet of 
such Person under 
GAAP, 
any earn-out or 
similar obligations, (f) 
all monetary 
obligations of 
such Person 
owing under 
Hedge Agreements 
(which amount 
shall be 
calculated 
based on 
the amount 
that would 
be payable 
by such 
Person if 
the Hedge 
Agreement were 
terminated on the date of 
determination), (g) any Disqualified Equity Interests 
of such Person, and 
(h) any obligation 
of such 
Person guaranteeing 
or intended 
to guarantee 
(whether directly 
or 
indirectly guaranteed, endorsed, co-made, 
discounted, or sold with recourse) 
any obligation of any 
other Person that 
constitutes Indebtedness under 
any of clauses 
(a) through (g) 
above. 
For purposes 
of this definition, 
(i) the amount of 
any Indebtedness represented 
by a guaranty 
or other similar 
instrument shall 
be the 
lesser of 
the principal 
amount of 
the obligations 
guaranteed and 
still 

 

 

 

 

 

 

 

 

 

 

 

 

 

outstanding and the maximum amount 
for which the guaranteeing Person 
may be liable pursuant 
to  the  terms 
of  the  instrument 
embodying  such  Indebtedness, 
and  (ii) the  amount 
of  any 
Indebtedness which is limited or is non-recourse to a Person or for which 
recourse is limited to an 
identified asset 
shall be 
valued at 
the lesser 
of (A) 
if applicable, 
the limited 
amount of 
such 
obligations, and (B) if applicable, the fair market value of such assets securing such obligation. 
"Indemnified Liabilities" has the meaning specified therefor in Section 10.3 of this 
Agreement. 
"Indemnified Person 
" 
has the 
meaning specified 
therefor in 
Section 10.3 
of this 
Agreement. 
"Indemnified Taxes 
" 
means, (a) Taxes, 
other than Excluded Taxes, 
imposed on or 
with respect to 
any payment made 
by, or 
on account of 
any obligation of, 
any Loan Party under 
any Loan 
Document, and 
(b) to the 
extent not 
otherwise described 
in the 
foregoing clause 
(a), 
Other Taxes. 
"Initial M/E 
Term Loan" 
has the 
meaning specified 
therefor in 
Section 2.2(a) of 
this Agreement. 
"Insolvency   Laws"   means, 
collectively,   (i) 
the   Bankruptcy   Code, 
(ii) the 
Bankruptcy  and  Insolvency 
Act
 
(Canada),  (iii) 
the 
Companies'  Creditors 
Arrangement  Act
 
(Canada),  (iv) 
the 
Winding-Up  and 
Restructuring  Act
 
(Canada),  (v) 
the 
Canada  Business 
Corporations Act
 
(Canada) and any other 
corporate statutes where such 
statute is used by a 
Person 
to propose 
an arrangement 
involving the 
compromise of 
the claims 
of creditors; 
and (vi) 
any 
similar legislation in a 
relevant jurisdiction, in each 
case as applicable and 
as in effect from 
time 
to time. 
"Insolvency Proceeding" 
means any 
proceeding commenced 
by or 
against any 
Person under any Insolvency Law. 
"Intercompany Subordination 
Agreement" means 
an intercompany subordination 
agreement, dated as of even date with this Agreement, 
executed and delivered by each Loan Party 
and each of its 
Subsidiaries, and Agent, the 
form and substance of 
which is reasonably satisfactory 
to Agent. 
"Interest Expense" 
means, for any period, 
the aggregate of the 
interest expense of 

Borrowers for such period, determined on a consolidated basis in accordance with GAAP. 
"Interest  Period"  means, 
with  respect  to 
each  LIBOR 
Rate  Loan,  a 
period 
commencing on the date 
of the making of 
such LIBOR Rate Loan 
(or the continuation of 
a LIBOR 
Rate Loan or 
the conversion of 
a Base Rate 
Loan to a 
LIBOR Rate Loan) 
and ending 1, 
3, or 6 
months months thereafter; provided, that (a) interest shall accrue 
at the applicable rate based upon 
the LIBOR Rate from and including the first day 
of each Interest Period to, but excluding, the day 
on which any Interest Period expires, (b) any Interest Period that 
would end on a day that is not a 
Business Day shall 
be extended 
to the next 
succeeding Business Day 
unless such Business 
Day 
falls in another calendar month, in 
which case such Interest Period shall 
end on the next preceding 
Business Day, 
(c) with respect 
to an 
Interest Period 
that begins 
on the 
last Business 
Day of 
a 

 

 

 

 

 

 

 

 

 

 

 

 

 

calendar month (or on a 
day for which there is 
no numerically corresponding day in 
the calendar 
month at the end of such Interest Period), the Interest Period shall end 
on the last Business Day of 
the calendar month 
that is 1, 
3 or 6 
months after the 
date on which 
the Interest Period 
began, as 
applicable, and (d) Borrowers may 
not elect an 
Interest Period which will 
end after the Maturity 
Date. 
"Inventory" means inventory (as 
that term is 
defined in the 
Code or, 
to the extent 
applicable, the PPSA). 
"Inventory  Reserves 
" 
means,  as 
of  any 
date  of 
determination,  (a) 
Landlord 
Reserves in respect 
of Inventory, and (b) 
those reserves that 
Agent deems necessary 
or appropriate, 
in its 
Permitted Discretion 
and subject 
to Section 
2.1(c), to 
establish and 
maintain (including 
reserves for slow moving Inventory 
and Inventory shrinkage) with respect 
to Eligible Inventory or 
the Maximum Revolver Amount, including based on the results of appraisals. 
"Investment" means, with respect to any Person, any investment by such Person in 
any  other  Person  (including  Affiliates) 
in  the  form  of 
loans,  guarantees,  advances,  capital 
contributions (excluding (a) 
commission, travel, and 
similar advances to 
officers and employees 
of such 
Person made 
in the 
ordinary course 
of business, 
and (b) 
bona fide
 
accounts receivable 
arising in the ordinary course of business), or acquisitions of Indebtedness, Equity Interests, or all 
or substantially all of 
the assets of 
such other Person 
(or of any division 
or business line of 
such 
other Person), and 
any other items that 
are or would be 
classified as investments on 
a balance sheet 
prepared in accordance with 
GAAP. 
The amount of any 
Investment shall be the 
original cost of 
such Investment 
plus
 
the cost 
of all 
additions thereto, 
without any 
adjustment for 
increases or 
decreases in value, or write-ups, write-downs, or write-offs with respect to such Investment. 
"IRC" means the Internal Revenue Code of 1986, as in effect from time to time. 
"ISP"  means,  with  respect  to  any  Letter  of  Credit,  the  International  Standby 
Practices 1998 
(International Chamber 
of Commerce 
Publication No. 
590) and 
any version 
or 
revision thereof accepted by the Issuing Bank for use. 
"Issuer Document" means, 
with respect to 
any Letter 
of Credit, 
a letter of 
credit 
application, a letter of credit 
agreement, or any other document, 
agreement or instrument entered 
into (or to be 
entered into) by a 
Borrower in favor of 
Issuing Bank and relating 
to such Letter of 
Credit. 
"Issuing Bank" 
means Wells 
Fargo or 
any other 
Lender that, 
at the 
request of 
Borrowers and with the 
consent of Agent, agrees, 
in such Lender's sole 
discretion, to become an 
Issuing  Bank for 
the purpose 
of issuing 
Letters of 
Credit pursuant 
to Section 
2.11 of 
this 
Agreement, and Issuing Bank shall be a Lender. 
"Joinder" means a joinder agreement substantially in 
the form of Exhibit J-1 
to this 
Agreement. 
"Landlord Reserve" means, as to each location at which a Borrower has Inventory, 
M&E or books and 
records located and as 
to which a Collateral 
Access Agreement has not 
been 
received by Agent, a 
reserve in an amount 
equal to 3 months' 
rent, storage charges, 
fees or other 

 

 

 

 

 

 

amounts under the lease 
or other applicable agreement 
relative to such location 
or, if greater 
and 
Agent so elects, the number of months' 
rent, storage charges, fess or 
other amounts for which the 
landlord, bailee, warehouseman or other 
property owner will have, under 
applicable law, a Lien in 
the Inventory or M&E of 
such Borrower to secure the 
payment of such amounts under 
the lease or 
other applicable agreement relative to such location. 
"Lead Arranger" has the meaning set forth in the preamble to this Agreement. 
"Lender" has the meaning 
set forth in the 
preamble to this Agreement, 
shall include 
Issuing Bank and the Swing 
Lender, and shall 
also include any other Person 
made a party to this 
Agreement pursuant to 
the provisions of 
Section 13.1 of 
this Agreement and 
"Lenders" means each 
of the Lenders or any one or more of them. 
"Lender Group" means each of the 
Lenders (including Issuing Bank and the 
Swing 
Lender) and Agent, or any one or more of them. 
"Lender  Group 
Expenses" 
means  all 
(a) documented  out-of-pocket 
costs  or 
expenses (including taxes 
and insurance premiums) 
required to be 
paid by any 
Loan Party or its 
Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender 
Group, (b) documented out-of-pocket 
fees or charges paid 
or incurred by 
Agent in connection with 
the Lender Group's transactions 
with each Loan Party and 
its Subsidiaries under any of 
the Loan 
Documents, including, photocopying, notarization, 
couriers and messengers, telecommunication, 
public record searches, filing fees, recording fees, publication, 
real estate surveys, real estate title 
policies and 
endorsements, and 
environmental audits, 
(c) Agent's customary 
fees and 
charges 
imposed or incurred in connection with any background checks or OFAC/PEP searches related to 
any Loan Party or its Subsidiaries, (d) Agent's customary fees and charges (as adjusted from time 
to time) with respect to the disbursement of funds (or the receipt of funds) to or for the account of 
any Borrower (whether by wire 
transfer or otherwise), together 
with any out 
-of-pocket costs and 
expenses incurred in 
connection therewith, (e) 
customary charges imposed 
or incurred by 
Agent 
resulting from the dishonor 
of checks payable by 
or to any Loan 
Party, (f) reasonable, documented 
out-of-pocket costs and 
expenses paid or 
incurred by the 
Lender Group to correct 
any default or 
enforce any provision of the 
Loan Documents, or during the 
continuance of an Event 
of Default, 
in gaining possession 
of, maintaining, handling, 
preserving, storing, shipping, 
selling, preparing 
for sale, or advertising to sell the Collateral, 
or any portion thereof, irrespective of whether 
a sale 
is consummated, (g) 
field examination, appraisal, 
and valuation fees 
and expenses of 
Agent related 
to any field examinations, appraisals, or valuation to the extent 
of the fees and charges (and up to 
the amount 
of any 
limitation) provided 
in Section 
5.7(c) of 
this Agreement, 
(h) Agent's and 
Lenders' reasonable, 
documented costs 
and  expenses (including 
reasonable and 
documented 
attorneys' fees 
and expenses) 
relative to 
third party 
claims or 
any other 
lawsuit or 
adverse 
proceeding paid or incurred, whether in enforcing or defending the Loan Documents or otherwise 
in connection with the transactions contemplated by the Loan Documents, 
Agent's Liens in and to 
the Collateral, or the 
Lender Group's relationship with 
any Loan Party or 
any of its Subsidiaries, 
(i) Agent's reasonable 
and documented 
out-of-pocket costs 
and expenses 
(including reasonable 
and documented 
attorneys' fees 
and due 
diligence expenses) 
incurred in 
advising, structuring, 
drafting, reviewing, administering 
(including travel, meals, 
and lodging), syndicating 
(including 
reasonable costs and 
expenses relative to 
the rating of 
the Term 
Loan, CUSIP, 
DXSyndicateTM, 
SyndTrak or 
other communication 
costs incurred 
in connection 
with a 
syndication of 
the loan 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

facilities), or 
amending, waiving, 
or modifying 
the Loan 
Documents, and 
(j) Agent's and 
each 
Lender's reasonable and 
documented costs and 
expenses (including reasonable 
and documented 
attorneys, accountants, consultants, and other advisors fees 
and expenses) incurred in terminating, 
enforcing (including 
attorneys, accountants, 
consultants, and 
other advisors 
fees and 
expenses 
incurred  in 
connection  with 
a  "workout," 
a  "restructuring," 
or  an 
Insolvency  Proceeding 
concerning any Loan Party or any of its Subsidiaries or in exercising rights or remedies under the 
Loan Documents), or 
defending the Loan 
Documents, irrespective of 
whether a lawsuit 
or other 
adverse proceeding is brought, or 
in taking any enforcement action 
or any Remedial Action with 
respect to the Collateral. 
"Lender Group Representatives" 
has the meaning specified 
therefor in Section 17.9 
of this Agreement. 
"Lender-Related Person" 
means, with respect to any 
Lender, such Lender, together 
with such Lender's Affiliates, officers, directors, employees, attorneys, and agents. 
"Letter of Credit" 
means a letter 
of credit (as 
that term is 
defined in the 
Code) issued 
by Issuing Bank. 
"Letter  of  Credit  Collateralization"  means 
either  (a) providing  cash  collateral 
(pursuant to 
documentation reasonably 
satisfactory to 
Agent (including 
that Agent 
has a 
first 
priority perfected Lien in such cash collateral), including provisions that specify that the Letter of 
Credit Fees and 
all commissions, 
fees, charges 
and expenses provided 
for in Section 
2.11(k) of 
this Agreement (including 
any fronting fees) 
will continue to 
accrue while the 
Letters of Credit 
are outstanding) to be held by Agent for the benefit of 
the Revolving Lenders in an amount equal 
to 105% 
of the 
then existing 
Letter of 
Credit Usage, 
(b) delivering to 
Agent documentation 
executed by 
all beneficiaries 
under the 
Letters of 
Credit, in 
form and 
substance reasonably 
satisfactory to 
Agent and 
Issuing Bank, 
terminating all 
of such 
beneficiaries' rights 
under the 
Letters of 
Credit, or 
(c) providing Agent 
with a 
standby letter 
of credit, 
in form 
and substance 
reasonably  satisfactory to 
Agent,  from  a commercial 
bank  acceptable to 
Agent  (in its 
sole 
discretion) in 
an amount 
equal to 
105% of 
the then 
existing Letter 
of Credit 
Usage (it 
being 
understood that 
the Letter 
of Credit 
Fee and 
all fronting 
fees set 
forth in 
this Agreement 
will 
continue to accrue 
while the Letters 
of Credit are 
outstanding and that 
any such fees 
that accrue 
must be an amount that can be drawn under any such standby letter of credit). 
"Letter of Credit Disbursement" means a payment made by Issuing Bank 
pursuant 
to a Letter of Credit. 
"Letter of Credit Exposure" means, as of any date of determination with respect to 
any Lender, such Lender's 
participation in the Letter of 
Credit Usage pursuant to 
Section 2.11(e) 
on such date. 
"Letter of Credit Fee" 
has the meaning 
specified therefor in Section 
2.6(b) of this 
Agreement. 
"Letter of Credit Indemnified Costs" 
has the meaning specified therefor in Section 
2.11(f) of this Agreement. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Letter of 
Credit Related 
Person" has 
the meaning 
specified therefor 
in Section 
2.11(f) of this Agreement. 
"Letter of Credit Sublimit" 
means $2,000,000. 
"Letter of Credit Usage" means, as of any date of determination, the sum of (a) the 
aggregate undrawn amount of 
all outstanding Letters of 
Credit, 
plus
 
(b) the aggregate amount of 
outstanding  reimbursement 
obligations  with 
respect  to 
Letters  of 
Credit  which 
remain 
unreimbursed or which have not been paid through a Revolving Loan. 
"LIBOR Deadline" 
has the meaning specified therefor in Section 2.12(b)(i) 
of this 
Agreement. 
"LIBOR  Notice"  means  a  written 
notice  in  the  form  of 
Exhibit  L-1  to  this 
Agreement. 
"LIBOR Option" 
has the 
meaning specified 
therefor in 
Section 2.12(a) 
of this 
Agreement. 
"LIBOR Rate" means 
the greater of 
(a) 0.75% 
per annum
 
and (b) the 
rate 
per annum
 
as  published  by 
ICE  Benchmark  Administration 
Limited  (or  any 
successor  page  or 
other 
commercially available source 
as the Agent 
may designate from 
time to time) 
as of 11:00 
a.m., 
London time, two Business Days prior to the commencement of the requested Interest Period, for 
a term, and 
in an amount, 
comparable to the 
Interest Period and 
the amount of 
the LIBOR Rate 
Loan requested (whether 
as an initial 
LIBOR Rate Loan 
or as 
a continuation 
of a LIBOR 
Rate 
Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by 
Borrowers in accordance 
with this Agreement (and, if any such published rate is below zero, then the LIBOR Rate shall 
be 
deemed to be zero). 
Each determination of the LIBOR Rate shall be made by the Agent and shall 
be conclusive in the absence of manifest error. 
"LIBOR Rate Loan" 
means each portion 
of a Revolving 
Loan or the 
Term Loan 
that bears interest at a rate determined by reference to the LIBOR Rate. 
"LIBOR Rate Margin" means 
the Revolving Loan 
LIBOR Rate Margin 
or the Term 
Loan LIBOR Rate Margin, as applicable. 
"Lien" means 
any mortgage, 
deed of 
trust, pledge, 
hypothecation, assignment, 
charge, deposit arrangement, encumbrance, easement, 
lien (statutory or other), 
security interest, or 
other security arrangement and 
any other preference, priority, 
or preferential arrangement of 
any 
kind  or  nature 
whatsoever,  including 
any  conditional  sale 
contract  or  other 
title  retention 
agreement, the interest of a lessor 
under a Capital Lease and any 
synthetic or other financing lease 
having substantially the same economic effect as any of the foregoing. 
"Loan" means any Revolving Loan, Swing Loan, Extraordinary Advance, or Term 
Loan made (or to be made) hereunder. 
"Loan  Account 
" 
has  the 
meaning  specified 
therefor  in 
Section  2.9 
of  this 
Agreement. 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Loan Documents" 
means this Agreement, the Control Agreements, the Copyright 
Security Agreement, any 
Borrowing Base Certificate, 
the Fee Letter, 
the Guaranty and 
Security 
Agreement, the 
Intercompany Subordination 
Agreement, any 
Issuer Documents, 
the Letters 
of 
Credit, the Loan Manager Side Letter, the Canadian Guaranty, the Canadian Security Documents, 
the Mortgages, the 
Patent Security Agreement, 
the Trademark 
Security Agreement, any 
note or 
notes executed by 
Borrowers in connection 
with this Agreement 
and payable to 
any member of 
the Lender Group, 
and any other 
instrument or agreement 
entered into, now 
or in the 
future, by 
any Loan Party or any 
of its Subsidiaries and any member 
of the Lender Group in connection 
with 
this Agreement (but specifically excluding Bank Product Agreements). 
"Loan Manager 
Side  Letter" means 
that certain 
letter agreement 
between the 
Borrowers and Wells Fargo regarding the terms under which Wells 
Fargo will provide services to 
the Borrowers in respect of Wells Fargo's 
proprietary automated loan management program. 
"Loan Party" means any Borrower or 
any Guarantor. 
"M&E" means all Equipment 
(as defined in the 
Code or, to 
the extent applicable, 
the PPSA) (in 
each case, other than 
fixtures (unless otherwise 
agreed by Agent), 
tooling, rolling 
stock or any equipment subject to special perfection requirements under federal law). 
"M&E Borrowing Base" 
means the result 
of 85% of 
the NOLV 
of Eligible M&E 
(such determination 
may be 
made as 
to different 
categories of 
Eligible M&E 
based upon 
the 
NOLV 
applicable to such categories). 
"M&E Reserves" 
means, as of any date of determination, (a) Landlord Reserves in 
respect of M&E, 
and (b) those reserves that 
Agent deems necessary 
or appropriate, in its 
Permitted 
Discretion and subject to Section 
2.1(c), to establish and maintain 
with respect to Eligible M&E, 
including based on the results of appraisals. 
"Margin Stock" as defined 
in Regulation U of the Board 
of Governors as in effect 
from time to time. 
"Material Adverse 
Effect" 
means (a) 
a material 
adverse effect 
in the 
business, 
operations, results of 
operations, assets, liabilities 
or financial condition 
of the Loan 
Parties and 
their Subsidiaries, 
taken as 
a whole, 
(b) a material 
impairment of 
the Loan 
Parties' and 
their 
Subsidiaries' ability 
to perform 
their obligations 
under the 
Loan Documents 
to which 
they are 
parties or of 
the Lender Group's 
ability to enforce 
the Obligations or 
realize upon the 
Collateral 
(other than as a 
result of as a 
result of an action 
taken or not taken 
that is solely in 
the control of 
Agent), or (c) a material impairment of the 
enforceability or priority of Agent's Liens with respect 
to all or a material portion of the Collateral. 
"Maturity Date" means October 27, 2024. 
"Maximum Revolver 
Amount" means 
$25,000,000, decreased 
by the 
amount of 
reductions  in  the 
Revolver  Commitments  made 
in  accordance  with 
Section  2.4(c)  of 
this 
Agreement and increased by the amount of any Increase made in accordance with Section 2.14 of 
this Agreement. 

 

 

 

 

 

 

 

 

 

 

 

 

 

"M/E Term Loan" means (i) prior 
to the funding of 
the Additional M/E Term Loan, 
the Initial M/E Term 
Loan and (ii) on an after the 
funding of the Additional M/E Term 
Loan, the 
then outstanding Initial M/E Term Loan and the Additional M/E Term 
Loan. 
"M/E Term Loan Amount" 
means $7,290,000. 
"M/E Term Loan Commitment" means, with respect to each Lender, its M/E Term 
Loan Commitment, and, with respect to all Lenders, their M/E Term Loan Commitments, 
in each 
case as such Dollar amounts are set forth beside such Lender's name under the applicable 
heading 
on Schedule C-1 to this Agreement or in 
the Assignment and Acceptance pursuant to 
which such 
Lender became a 
Lender under this 
Agreement, as such 
amounts may be 
reduced or increased 
from 
time to time 
pursuant to assignments 
made in accordance 
with the provisions 
of Section 13.1 
of 
this Agreement. 
"M/E  Term  Loan  Exposure"  means,  with  respect  to  any  Term 
Loan  Lender, 
(a) prior to the 
termination of the 
M/E Term Loan Commitments, the 
amount of such 
Lender's M/E 
Term Loan Commitment, 
and (b) after the termination of 
the M/E Term 
Loan Commitments, the 
aggregate outstanding principal amount of the M/E Term Loan held by such Lender. 
"Mexican A/R 
Cap" means, 
as of 
any date 
of determination, 
the lesser 
of (x) 
$2,500,000 and 
(y) 15% 
of the 
aggregate amount 
of the 
sum of 
clauses (a), 
(b) and 
(c) of 
the 
definition of Borrowing Base. 
"Mexican Subsidiary" 
means a 
Foreign Subsidiary 
organized under 
the laws 
of 
Mexico, or any political subdivision thereof. 
"Mexican Term Lender" means FGI Equipment Finance LLC. 
“Mexican Term Loan 
Agreement” means that certain Master Security Agreement, 
dated  as  of  October  27,  2020, 
between  Mexican  Term  Lender,  Borrower  as  debtor, 
Core 
Composites as a guarantor, and CC 
HPM, S. de R.L. de C.V. 
as a guarantor, as may from 
time to 
time hereafter be amended, supplemented, 
extended, renewed, or restated 
or replaced from time to 
time subject to the terms hereof. 
"Mexican Term 
Loan Collateral" means assets owned 
by Mexican Subsidiaries of 
Borrowers and assets of 
Core Composites located in Matamoros, 
Mexico; provided, that, Mexican 
Term Loan Collateral shall exclude Accounts 
and Inventory of Core 
Composites and shall exclude 
Eligible M&E and Eligible Real Property. 
"Mexican Term 
Loan Documents" 
means the 
Debt Documents, 
as such 
term is 
defined in the Mexican Term Loan Agreement, in each 
case as may from time to 
time hereafter be 
amended, supplemented, extended, renewed, restated or replaced from 
time to time subject to the 
terms hereof. 
"Mexican Term 
Debt" 
means the 
Indebtedness under 
the Mexican 
Term Loan 
Documents, as such Indebtedness may from time to time 
hereafter be increased or supplemented, 
subject to the terms hereof and any Refinancing Indebtedness in respect of such Indebtedness. 

 

 

 

 

 

"Moody's" has the 
meaning specified therefor 
in the definition 
of Domestic Cash 
Equivalents. 
"Mortgages" means, individually 
and collectively, one or more 
mortgages, charges, 
deeds of 
trust, or 
deeds to 
secure debt, 
executed and 
delivered by 
a Loan 
Party or 
one of 
its 
Subsidiaries in 
favor of 
Agent, in 
form and 
substance reasonably 
satisfactory to 
Agent, that 
encumber the Real Property Collateral. 
"Multiemployer  Plan"  means  any  multiemployer 
plan  within  the  meaning  of 
Section 3(37) or 4001(a)(3) 
of ERISA, that is 
subject to ERISA, with 
respect to which any 
Loan 
Party or 
ERISA Affiliate 
has an 
obligation to 
contribute or 
has any 
liability, contingent 
or 
otherwise or could 
be assessed withdrawal 
liability assuming a complete 
withdrawal under Section 
4203 of ERISA from any Multiemployer Plan. 
"Net Cash Proceeds" 
means: 
(a)
 
with respect 
to any 
sale or 
disposition by 
any Loan 
Party or 
any of 
its 
Subsidiaries (other 
than any 
Mexican Subsidiary) 
of assets 
(other than 
Mexican Term 
Loan 
Collateral), the 
amount of 
cash proceeds 
received (directly 
or indirectly) 
from time 
to time 
(whether as initial consideration 
or through the payment 
of deferred consideration) by 
or on behalf 
of such 
Loan Party 
or such 
Subsidiary, in 
connection therewith 
after deducting 
therefrom only 
(i) the amount 
of any 
Indebtedness secured 
by any 
Permitted Lien 
on any 
asset (other 
than 
(A) Indebtedness  owing  to  Agent 
or  any  Lender  under 
this  Agreement  or  the 
other  Loan 
Documents and (B) Indebtedness assumed by the purchaser 
of such asset) which is required to be, 
and is, repaid in 
connection with such sale 
or disposition, (ii) 
reasonable fees, commissions, and 
expenses related 
thereto and 
required to 
be paid 
by such 
Loan Party 
or such 
Subsidiary in 
connection with such 
sale or disposition, 
(iii) taxes paid or 
payable to any 
taxing authorities 
by 
such Loan Party or such 
Subsidiary in connection with such sale 
or disposition, in each case to 
the 
extent, but only to the extent, that the amounts 
so deducted are, at the time of receipt 
of such cash, 
actually paid 
or payable 
to a 
Person that 
is not 
an Affiliate 
of any 
Loan Party 
or any 
of its 
Subsidiaries, and 
are properly 
attributable to 
such transaction, 
and (iv) 
all amounts 
that are 
set 
aside as a reserve 
(A) for adjustments in respect 
of the purchase price 
of such assets, (B) 
for any 
liabilities associated with 
such sale or 
casualty, to 
the extent such 
reserve is required 
by GAAP, 
and (C) for the payment of 
unassumed liabilities relating to the 
assets sold or otherwise disposed 
of at the 
time of, or 
within 30 days 
after, the 
date of such 
sale or other 
disposition, to the 
extent 
that in each case the funds described above in this clause (iv) are (x) deposited into escrow with a 
third party escrow 
agent or 
set aside 
in a 
separate Deposit 
Account that 
is subject 
to a 
Control 
Agreement in favor of Agent, and 
(y) paid to Agent as a prepayment 
of the applicable Obligations 
in accordance with Section 
2.4(e) of this Agreement 
at such time when 
such amounts are no 
longer 
required to be set aside as such a reserve; and 
(b)
 
with respect to the issuance or incurrence of any Indebtedness by any Loan 
Party or any of its Subsidiaries, 
or the issuance by any Loan 
Party or any of its Subsidiaries of 
any 
Equity Interests, the aggregate 
amount of cash received 
(directly or indirectly) from 
time to time 
(whether as initial consideration or through the 
payment or disposition of deferred consideration) 
by or 
on behalf 
of such 
Loan Party 
or such 
Subsidiary in 
connection with 
such issuance 
or 
incurrence, after deducting therefrom only (i) reasonable fees, commissions, and expenses related 

 

 

 

 

 

 

 

thereto and required 
to be 
paid by such 
Loan Party or 
such Subsidiary in 
connection with such 
issuance or incurrence, and (ii) taxes paid or payable to any taxing authorities by such Loan Party 
or such Subsidiary in connection with 
such issuance or incurrence, in each 
case to the extent, but 
only to the extent, 
that the amounts 
so deducted are, at 
the time of 
receipt of such cash, 
actually 
paid or payable to a 
Person that is not an 
Affiliate of any Loan Party 
or any of its Subsidiaries, 
and 
are properly attributable to such transaction. 
"Net Recovery Percentage" 
means, as of any date of determination, the percentage 
of the 
book value 
of Borrowers' 
Inventory that 
is estimated 
to be 
recoverable in 
an orderly 
liquidation of 
such Inventory 
net of 
all associated 
costs and 
expenses of 
such liquidation, 
such 
percentage to be 
determined as to 
each category of 
Inventory and to 
be as specified 
in the most 
recent Acceptable Appraisal of Inventory. 
"NOLV" 
means, as of any date of 
determination, with respect to Eligible 
M&E of 
any Person, 
the value 
of such 
Eligible M&E 
that is 
estimated to 
be recoverable 
in an 
orderly 
liquidation of such Eligible M&E, net 
of all associated costs and expenses 
of such liquidation, as 
determined based 
upon the 
most recent 
Acceptable Appraisal 
of M&E; 
provided that 
if such 
Acceptable Appraisal does 
not provide the 
costs and expenses 
of such liquidation 
on an item 
by 
item basis, 
then costs 
and expenses 
of liquidation 
for each 
item of 
Eligible M&E 
will be 
such 
amount as determined by Agent in its Permitted Discretion. 
"Non-Consenting Lender" has the meaning specified therefor in Section 14.2(a) of 
this Agreement. 
"Non-Defaulting Lender" means each Lender other than a Defaulting Lender. 
"Notification Event" means (a) the occurrence of a "reportable event" described in 
Section 4043 of 
ERISA for which 
the 30-day notice 
requirement has not 
been waived by 
applicable 
regulations issued by the PBGC, (b) the withdrawal of any Loan 
Party or ERISA Affiliate from a 
Pension Plan 
during a plan 
year in which 
it was 
a "substantial employer" 
as defined in 
Section 
4001(a)(2) of 
ERISA, (c) 
the termination 
of a 
Pension Plan, 
the filing 
of a 
notice of 
intent to 
terminate a Pension 
Plan or the 
treatment of a 
Pension Plan amendment 
as a termination, 
under 
Section 4041 
of ERISA, 
if the 
plan assets 
are not 
sufficient to 
pay all 
plan liabilities, 
(d) the 
institution of proceedings to 
terminate, or the appointment 
of a trustee with 
respect to, any 
Pension 
Plan by the PBGC 
or any Pension Plan 
or Multiemployer Plan administrator, 
(e) any other event 
or condition that would 
constitute grounds under Section 
4042(a) of ERISA for 
the termination of, 
or the 
appointment of 
a trustee 
to administer, 
any Pension 
Plan, (f) 
the imposition 
of a 
Lien 
pursuant to the IRC or 
ERISA in connection with 
any Employee Benefit Plan or 
the existence of 
any facts or circumstances that could reasonably be expected to result in the imposition of a Lien, 
(g) the partial 
or complete withdrawal 
of any Loan Party 
or ERISA Affiliate from 
a Multiemployer 
Plan (other than any 
withdrawal that would not 
constitute an Event of 
Default under Section 8.12), 
(h) any event or condition that 
results in the reorganization or insolvency of a 
Multiemployer Plan 
under  Sections  of 
ERISA,  (i)  any  event 
or  condition  that 
results  in  the  termination 
of  a 
Multiemployer Plan under 
Section 4041A of 
ERISA or the 
institution by the 
PBGC of proceedings 
to terminate 
or to 
appoint a 
trustee to 
administer a 
Multiemployer Plan 
under ERISA, 
(j) any 
Pension  Plan  being  in  "at  risk  status"  within 
the  meaning  of  IRC  Section  430(i),  (k) 
any 
Multiemployer Plan being 
in "endangered status" 
or "critical status" 
within the meaning 
of IRC 

 

 

Section 432(b) or the determination that any Multiemployer Plan is or 
is expected to be insolvent 
or in reorganization within 
the meaning of Title IV 
of ERISA, (l) with 
respect to any Pension 
Plan, 
any Loan 
Party or 
ERISA Affiliate 
incurring a 
substantial cessation 
of operations 
within the 
meaning of ERISA Section 4062(e), 
(m) an "accumulated funding deficiency" 
within the meaning 
of the IRC or 
ERISA (including Section 412 
of the IRC or 
Section 302 of ERISA) 
or the failure 
of any Pension 
Plan or Multiemployer 
Plan to 
meet the minimum 
funding standards within 
the 
meaning of the 
IRC or ERISA 
(including Section 412 
of the IRC 
or Section 302 
of ERISA), in 
each case, whether 
or not 
waived, (n) the 
filing of 
an application for 
a waiver 
of the 
minimum 
funding standards within the meaning of the 
IRC or ERISA (including Section 412 
of the IRC or 
Section 302 of ERISA) with respect to any Pension Plan or Multiemployer Plan, (o) the failure to 
make by 
its due 
date a 
required payment 
or contribution 
with respect 
to any 
Pension Plan 
or 
Multiemployer Plan, (p) 
any event that 
results in or 
could reasonably be 
expected to 
result in a 
liability by 
a Loan 
Party pursuant 
to Title 
I of 
ERISA or 
the excise 
tax provisions 
of the 
IRC 
relating to any 
Employee Benefit Plans or 
any event that results 
in or could reasonably 
be expected 
to result 
in a 
liability to 
any Loan 
Party or 
ERISA Affiliate 
pursuant to 
Title IV 
of ERISA 
or 
Section 401(a)(29) 
of the 
IRC, or 
(q) any 
of the 
foregoing is 
reasonably likely 
to occur 
in the 
following 30 days. 
"Obligations" means 
(a) all loans 
(including the 
Term Loan 
and the 
Revolving 
Loans  (inclusive  of 
Extraordinary  Advances 
and  Swing  Loans)), 
debts,  principal, 
interest 
(including  any  interest  that  accrues  after 
the  commencement  of  an  Insolvency  Proceeding, 
regardless of whether allowed or 
allowable in whole or in 
part as a claim in 
any such Insolvency 
Proceeding), reimbursement 
or indemnification 
obligations with 
respect to 
Letters of 
Credit 
(irrespective of whether 
contingent), premiums, liabilities 
(including all amounts 
charged to the 
Loan Account pursuant 
to this 
Agreement), obligations (including 
indemnification obligations), 
fees (including the 
fees provided 
for in the 
Fee Letter), Lender 
Group Expenses 
(including any 
fees or expenses that 
accrue after the commencement 
of an Insolvency Proceeding, 
regardless of 
whether allowed or allowable 
in whole or in 
part as a claim 
in any such Insolvency 
Proceeding), 
guaranties, and all 
covenants and duties 
of any other 
kind and description 
owing by any 
Loan Party 
arising out of, 
under, pursuant 
to, in connection 
with, or evidenced 
by this Agreement 
or any of 
the other Loan Documents and 
irrespective of whether for the 
payment of money, 
whether direct 
or indirect, absolute 
or contingent, due 
or to become 
due, now existing 
or hereafter arising, 
and 
including all interest 
not paid 
when due and 
all other 
expenses or other 
amounts that any 
Loan 
Party is required to pay 
or reimburse by the Loan 
Documents or by law or 
otherwise in connection 
with the Loan 
Documents, and 
(b) all Bank 
Product Obligations; 
provided that, anything 
to the 
contrary contained in the 
foregoing notwithstanding, the Obligations 
shall exclude any Excluded 
Swap Obligation. 
Without limiting the generality of 
the foregoing, the Obligations of Borrowers 
under the Loan Documents include 
the obligation to pay (i) 
the principal of the Revolving 
Loans 
and the 
Term Loan, 
(ii) interest accrued 
on the 
Revolving Loans 
and the 
Term Loan, 
(iii) the 
amount necessary to 
reimburse Issuing Bank 
for amounts paid 
or payable pursuant 
to Letters of 
Credit, (iv) Letter of 
Credit commissions, fees 
(including fronting fees) 
and charges, (v) 
Lender 
Group Expenses, (vi) fees payable 
under this Agreement or any 
of the other Loan Documents, 
and 
(vii) indemnities and other amounts payable 
by any Loan Party under 
any Loan Document. 
Any 
reference in this Agreement or 
in the Loan Documents to 
the Obligations shall include all 
or any 
portion thereof and any extensions, modifications, renewals, or alterations thereof, both 
prior and 
subsequent to any Insolvency Proceeding. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"OFAC" means 
The Office 
of Foreign Assets 
Control of the 
U.S. Department of 
the Treasury. 
"Originating Lender" has the 
meaning specified therefor in Section 
13.1(e) of this 
Agreement. 
"Other Taxes" 
means all 
present or 
future stamp, 
court, excise, 
value added, 
or 
documentary, intangible, 
recording, filing 
or similar 
Taxes that 
arise from 
any payment 
made 
under, from the execution, delivery, 
performance, enforcement or registration of, from the receipt 
or perfection of a security interest under, or otherwise with respect to, any Loan Document. 
"Overadvance" means, as of any date of determination, 
that the Revolver Usage is 
greater than any of the limitations set forth in Section 2.1 or Section 2.11 of this Agreement. 
"Participant" 
has  the 
meaning  specified 
therefor  in 
Section  13.1(e) 
of  this 
Agreement. 
"Participant  Register 
" 
has  the 
meaning  set 
forth  in 
Section  13.1(i) 
of  this 
Agreement. 
"Patent Security Agreement" 
has the 
meaning specified 
therefor in 
the Guaranty 
and Security Agreement. 
"Patriot Act" 
has the meaning specified therefor in Section 
4.13 of this Agreement. 
"Payment  Conditions"  means,  at  the  time  of  determination  with  respect  to  a 
proposed payment to fund a Specified Transaction, that: 
(a)
 
no Default or Event 
of Default then exists 
or would arise as 
a result of the 
consummation of such Specified Transaction, 
(b)
 
both (A) 
the Fixed 
Charge Coverage 
Ratio of 
the Loan 
Parties and 
their 
Subsidiaries is equal 
to or greater 
than 1.25:1.00 
for the trailing 
12 month 
period most recently 
ended for 
which financial 
statements are 
required to 
have been 
delivered to 
Agent pursuant 
to 
Schedule 5.1 to this Agreement (calculated on a 
pro forma
 
basis as if such proposed payment is a 
Fixed Charge made 
on the last 
day of such 
12 month period 
(it being understood 
that such proposed 
payment shall also be a Fixed 
Charge made on the last 
day of such 12 month period for 
purposes 
of calculating the Fixed Charge Coverage 
Ratio under this clause (ii) for 
any subsequent proposed 
payment to 
fund a 
Specific Transaction)), 
and (B) 
Availability, 
(x) at all 
times during 
the 60 
consecutive days immediately 
preceding the date 
of such proposed 
payment and the 
consummation 
of such Specified Transaction, 
calculated on a 
pro forma
 
basis as if such 
proposed payment was 
made, and 
the Specified 
Transaction was 
consummated, on 
the first 
day of 
such period, 
and 
(y) after giving effect 
to such proposed 
payment and Specified 
Transaction, in 
each case, is 
not 
less than the greater of (X) 17.5% of the Maximum Revolver Amount, and (Y) $4,375,000, and 
(c)
 
Administrative Borrower has delivered a 
certificate to Agent certifying that 
all conditions described in clauses (a) and (b) above have been satisfied. 

 

 

 

 

 

 

 

"PBGC" 
means the Pension 
Benefit Guaranty Corporation 
or any successor 
agency. 
"Pension Plan" 
means any 
Employee Benefit 
Plan, other 
than a 
Multiemployer 
Plan, which is 
subject to the 
provisions of Title 
IV or Section 
302 of ERISA 
or Sections 412 
or 
430 of the 
Code sponsored, maintained, or 
contributed to by any 
Loan Party or ERISA 
Affiliate 
or to which any Loan Party or ERISA Affiliate has any liability, contingent or 
otherwise. 
"Perfection Certificate 
" 
means a 
certificate in 
the form 
of Exhibit 
P-1 to 
this 
Agreement. 
"Permitted Acquisition" means any Acquisition so long as: 
(a)
 
no Default 
or Event 
of Default 
shall have 
occurred and 
be continuing 
or 
would result from the consummation of the proposed Acquisition and the proposed Acquisition is 
consensual, 
(b)
 
no Indebtedness will 
be incurred, assumed, 
or would exist 
with respect to 
any Loan Party 
or its Subsidiaries 
as a result 
of such Acquisition, 
other than Indebtedness 
permitted 
under clauses 
(f), (g) 
or (o) 
of the 
definition of 
Permitted Indebtedness 
and no 
Liens will 
be 
incurred, assumed, or would 
exist with respect to 
the assets of any Loan 
Party or its Subsidiaries 
as a result of such Acquisition other than Permitted Liens, 
(c)
 
Borrowers have 
provided Agent 
with written 
confirmation, supported 
by 
reasonably detailed 
calculations, that 
on a 
pro forma
 
basis (including 
pro forma
 
adjustments 
arising out of 
events which 
are directly 
attributable to 
such proposed Acquisition, 
are factually 
supportable, and 
are expected 
to have 
a continuing 
impact, in 
each case, 
determined as 
if the 
combination had been accomplished at 
the beginning of the 
relevant period; such eliminations and 
inclusions to be mutually and 
reasonably agreed upon by 
Borrowers and Agent) created by 
adding 
the historical 
combined financial 
statements of 
Borrowers (including 
the combined 
financial 
statements of 
any other 
Person or 
assets that 
were the 
subject of 
a prior 
Permitted Acquisition 
during the relevant period) 
to the historical consolidated 
financial statements of 
the Person to be 
acquired (or the historical financial statements related to the assets to be acquired) pursuant to the 
proposed Acquisition, the Loan 
Parties and their Subsidiaries 
(i) would have been in 
compliance 
with  the  financial  covenant(s) 
in  Section  7 
of  this  Agreement  for 
the  fiscal  month]ended 
immediately prior to 
the proposed date 
of consummation of 
such proposed Acquisition, 
and (ii) are 
projected to be 
in compliance with 
the financial covenant(s) 
in Section 7 
of this Agreement 
for 
each  of  the  twelve  fiscal  months  in  the  period  ended  one  year  after  the  proposed  date  of 
consummation of such proposed Acquisition, 
(d)
 
Borrowers have provided 
Agent with its 
due diligence package 
relative to 
the proposed Acquisition, including 
forecasted balance sheets, profit 
and loss statements, and 
cash 
flow statements of the Person or assets to 
be acquired, all prepared on a basis consistent 
with such 
Person's (or 
assets') historical 
financial statements, 
together with 
appropriate supporting 
details 
and a 
statement of 
underlying assumptions 
for the 
one year 
period following 
the date 
of the 
proposed Acquisition, on a quarter by quarter basis), in form and substance (including as to scope 
and underlying assumptions) reasonably satisfactory to Agent, 
(e)
 
the Payment Conditions are satisfied, 

 

 

 

 

 

(f)
 
the assets 
being acquired 
or the 
Person whose 
Equity Interests 
are being 
acquired did not 
have negative EBITDA 
during the 12 
consecutive month period 
most recently 
concluded prior to the date of the proposed Acquisition, 
(g)
 
Borrowers  have  provided 
Agent  with  written 
notice  of  the 
proposed 
Acquisition at 
least 15 
Business Days 
prior to 
the anticipated 
closing date 
of the 
proposed 
Acquisition and, 
not later 
than five 
Business Days 
prior to 
the anticipated 
closing date 
of the 
proposed Acquisition, copies of 
the acquisition agreement and 
other material documents relative 
to the proposed 
Acquisition, which agreement 
and documents must 
be reasonably acceptable 
to 
Agent, 
(h)
 
the assets 
being acquired 
(other than 
a 
de minimis
 
amount of 
assets in 
relation to Borrowers' and their 
Subsidiaries' total assets), or the 
Person whose Equity Interests are 
being acquired, are 
useful in or engaged 
in, as applicable, 
the business of 
the Loan Parties and 
their 
Subsidiaries or a business reasonably related thereto, 
(i)
 
the assets 
being acquired 
(other than 
a 
de minimis
 
amount of 
assets in 
relation to the 
assets being acquired) 
are located within 
the United States, 
Canada or Mexico 
or 
the Person whose Equity Interests are being 
acquired is organized in a 
jurisdiction located within 
the United States, Canada or Mexico, 
(j)
 
the subject 
assets or 
Equity Interests, 
as applicable, 
are being 
acquired 
directly by a Borrower or 
one of its Subsidiaries that 
is a Loan Party, and, in connection therewith, 
the applicable Loan 
Party shall 
have complied 
with Section 
5.11 or 
5.12 of 
this Agreement, 
as 
applicable, of 
this Agreement 
and, in 
the case 
of an 
acquisition of 
Equity Interests, 
the Person 
(other than a Mexican Subsidiary) whose Equity Interests are acquired shall become a Loan Party 
and the applicable 
Loan Party shall 
have demonstrated to 
Agent that the 
new Loan Parties 
have 
received consideration sufficient to 
make the joinder documents 
binding and enforceable against 
such new Loan Parties, and 
(k)
 
the purchase consideration payable in respect of all Permitted 
Acquisitions 
(including the proposed Acquisition and including deferred payment 
obligations) shall not exceed 
$10,000,000 in the 
aggregate; provided, that 
(i) the purchase 
consideration payable in 
respect of 
any single 
Acquisition or 
series of 
related Acquisitions 
shall not 
exceed $5,000,000 
in the 
aggregate and (ii) 
the purchase consideration 
payable in respect 
of all Permitted 
Acquisitions of 
Mexican Subsidiaries 
or of 
assets located 
in Mexico 
(including the 
proposed Acquisition 
and 
including deferred payment obligations) shall not exceed $5,000,000 in the aggregate. 
"Permitted Discretion" means 
a determination made 
in the exercise 
of reasonable 
(from the perspective of a secured asset-based lender) business judgment. 
"Permitted Dispositions" 
means: 
(a)
 
sales, abandonment, or other dispositions of 
Equipment that is substantially 
worn, damaged, or obsolete 
or no longer used 
or useful in the 
ordinary course of business 
(other 
than Eligible 
M&E) and 
leases or 
subleases of 
Real Property 
not useful 
in the 
conduct of 
the 
business of the Loan Parties and their Subsidiaries (other than Eligible Real Property), 

(b)
 
sales of Inventory to buyers in the ordinary course of business, 
(c)
 
the use 
or transfer 
of money 
or Cash 
Equivalents in 
a manner 
that is 
not 
prohibited by the terms of this Agreement or the other Loan Documents, 
(d)
 
the licensing, on a 
non-exclusive basis, of patents, 
trademarks, copyrights, 
and other intellectual property rights in the ordinary course of business, 
(e)
 
the granting of Permitted Liens, 
(f)
 
the sale or 
discount, in each 
case without recourse, 
of accounts receivable 
(other than Eligible 
Accounts) arising in 
the ordinary course 
of business, but 
only in connection 
with the compromise or collection thereof, 
(g)
 
any involuntary loss, damage or destruction of property, 
(h)
 
any involuntary condemnation, seizure 
or taking, by exercise of 
the power 
of eminent domain or otherwise, or confiscation or requisition of use of property, 
(i)
 
the leasing or subleasing 
of assets of 
any Loan Party or 
its Subsidiaries in 
the ordinary course of business (other than Eligible M&E and Eligible Real Property), 
(j)
 
the sale 
or issuance 
of Equity 
Interests (other 
than Disqualified 
Equity 
Interests) of Administrative Borrower, 
(k)
 
(i) the  lapse 
of  registered 
patents,  trademarks, 
copyrights  and 
other 
intellectual property of 
any Loan Party 
or any of 
its Subsidiaries to 
the extent not 
economically 
desirable in the conduct 
of its business, or 
(ii) the abandonment of patents, 
trademarks, copyrights, 
or other 
intellectual property 
rights in 
the ordinary 
course of 
business so 
long as 
(in each 
case 
under clauses (i) and (ii)), 
(A) with respect to copyrights, 
such copyrights are not material 
revenue 
generating copyrights, and 
(B) such lapse is 
not materially adverse 
to the interests 
of the Lender 
Group, 
(l)
 
the making of Restricted Payments that are expressly permitted to be made 
pursuant to this Agreement, 
(m)
 
the making of Permitted Investments, 
(n)
 
so long 
as no 
Event of 
Default has 
occurred and 
is continuing 
or would 
immediately result therefrom, transfers of assets (i) 
from any Loan Party or any 
of its Subsidiaries 
to a Loan 
Party, and 
(ii) from any Subsidiary 
of any Loan 
Party that is 
not a Loan 
Party to any 
other Subsidiary of any Loan Party, 

(o)
 
sales or dispositions of Mexican Term Loan Collateral, 

(p)
 
so long 
as the 
Citi Purchase 
Documents are 
in effect, 
the sale 
by Loan 
Parties to Citibank, 
N.A. of Accounts 
owed by 
Xylem Inc. to 
Loan Parties 
pursuant to the 
Citi 
Purchase Documents, and 

 

 

 

 

(q)
 
sales or dispositions of 
fixed assets (including intangible property 
related to 
such fixed assets) not otherwise permitted in clauses (a) through (n) above so long as made at fair 
market value and the aggregate fair market value of all assets disposed of in fiscal 
year (including 
the proposed disposition) would not exceed $500,000; 
provided, that if, as of any date 
of determination, sales or dispositions by the 
Loan Parties during 
the period of time from the first 
day of the month in which such 
date of determination occurs until 
such date of 
determination, either individually 
or in the 
aggregate, involve $250,000 
or more of 
assets included in the 
Borrowing Base (based on 
the fair market 
value of the 
assets so disposed) 
(the " 
Threshold Amount"), 
then Borrowers 
shall have, 
prior to 
consummation of 
the sale 
or 
disposition that causes the 
assets included in 
the Borrowing that 
are disposed of 
during such period 
to exceed the Threshold Amount, 
delivered to Agent an updated 
Borrowing Base Certificate that 
reflects the removal of the applicable assets from the Borrowing Base. 
"Permitted Indebtedness" means: 
(a)
 
Indebtedness in respect of the Obligations, 
(b)
 
Indebtedness as 
of the 
Closing Date 
set forth 
on Schedule 
4.14 to 
this 
Agreement and any Refinancing Indebtedness in respect of such Indebtedness, 
(c)
 
Permitted Purchase Money 
Indebtedness and any 
Refinancing Indebtedness 
in respect of such Indebtedness, 
(d)
 
Indebtedness arising in connection with 
the endorsement of instruments or 
other payment items for deposit, 
(e)
 
Indebtedness consisting of 
(i) unsecured guarantees incurred 
in the ordinary 
course of business with respect to surety and appeal bonds, performance bonds, bid bonds, appeal 
bonds, completion guarantee 
and similar obligations; 
(ii) unsecured guarantees arising 
with respect 
to customary indemnification obligations 
to purchasers in connection 
with Permitted Dispositions; 
and (iii) 
unsecured guarantees 
with respect 
to Indebtedness 
of any 
Loan Party 
or one 
of its 
Subsidiaries, to the 
extent that the 
Person that is 
obligated under such 
guaranty could have 
incurred 
such underlying Indebtedness, 
(f)
 
Indebtedness   incurred 
in   the 
ordinary   course 
of   business 
under 
performance, surety, statutory, 
or appeal bonds, 
(g)
 
Indebtedness owed to any Person providing 
property, casualty, 
liability, or 
other insurance 
to any 
Loan Party 
or any 
of its 
Subsidiaries, so 
long as 
the amount 
of such 
Indebtedness is not 
in excess of 
the amount of 
the unpaid cost 
of, and shall 
be incurred only 
to 
defer the 
cost of, 
such insurance 
for the 
year in 
which such 
Indebtedness is 
incurred and 
such 
Indebtedness is outstanding only during such year, 
(h)
 
the incurrence by any Loan Party or 
its Subsidiaries of Indebtedness under 
Hedge  Agreements  that  is  incurred  for  the  bona  fide  purpose  of  hedging  the  interest  rate, 
commodity, or 
foreign currency 
risks associated 
with such 
Loan Party's 
or such 
Subsidiary's 
operations and not for speculative purposes, 

 

(i)
 
Indebtedness incurred in the ordinary 
course of business in respect of 
credit 
cards, credit card processing 
services, debit cards, stored 
value cards, commercial cards 
(including 
so-called "purchase cards", "procurement cards" or "p-cards"), or Cash Management Services, 
(j)
 
unsecured Indebtedness 
of any 
Loan Party 
owing to 
employees, former 
employees, former officers, 
directors, or former directors 
(or any spouses, 
ex-spouses, or estates 
of any of the 
foregoing) incurred in connection 
with the repurchase or 
redemption by such Loan 
Party of the Equity Interests of 
Administrative Borrower that has been issued 
to such Persons, so 
long as (i) no Default or Event of Default has occurred and is continuing or would result from the 
incurrence of such Indebtedness, (ii) the aggregate 
amount of all such Indebtedness outstanding 
at 
any one 
time does 
not exceed 
$200,000, and 
(iii) such Indebtedness 
is subordinated 
in right 
of 
payment to the Obligations on terms and conditions reasonably acceptable to Agent, 
(k)
 
Indebtedness  comprising  Permitted 
Intercompany  Advances  and 
other 
Permitted Investments; provided, 
that, in the 
event and Permitted 
Intercompany Advances owed 
by a Mexican Subsidiary 
to a Loan Party 
are evidenced by a 
promissory note, such note 
shall be 
delivered to Agent as Collateral together with an endorsement, 
(l)
 
unsecured Indebtedness 
incurred in 
respect of 
netting services, 
overdraft 
protection, and other like services, in each case, incurred in the ordinary course of business, 
(m)
 
accrual of interest, 
accretion or amortization 
of original issue 
discount, or 
the payment of interest in kind, in each case, on Indebtedness that 
otherwise constitutes Permitted 
Indebtedness, and 
(n)
 
Subordinated Indebtedness, 
the aggregate 
outstanding amount 
of which 
does not exceed $1,500,000, 
(o)
 
Mexican  Term 
Debt  in  an 
aggregate  principal  amount  not 
to  exceed 
$18,500,000, 

(p)
 
contingent   liabilities   in   respect 
of   any   indemnification 
obligation, 
adjustment of purchase 
price, non-compete, or 
similar obligation 
of any Loan 
Party incurred 
in 
connection with the consummation of one or more Permitted Acquisitions,
 
 
(q)
 
Acquired Indebtedness in 
an aggregate outstanding 
amount not to 
exceed 
$2,500,000, 

(r)
 
Indebtedness of Mexican Subsidiaries 
in an aggregate outstanding 
amount 
not to exceed $2,000,000, and 
(s)
 
any other unsecured Indebtedness incurred by 
any Loan Party or any of 
its 
Subsidiaries in an aggregate outstanding amount not to exceed $1,500,000 at any one time. 
"Permitted Intercompany Advances" 
means loans made 
on or after 
the Closing Date 
by (a) a Loan Party 
to another Loan Party, (b) a Subsidiary of 
a Loan Party that is 
not a Loan Party 
to another Subsidiary of 
a Loan Party that 
is not a Loan 
Party, (c) a Subsidiary of a Loan Party 
that 
is not a 
Loan Party to 
a Loan Party, 
so long as 
the parties thereto 
are party to 
the Intercompany 

 

 

 

 

Subordination Agreement, (d) a Loan 
Party to a Mexican Subsidiary 
solely to the extent necessary 
to fund BRP/Navistar Project Cap Ex permitted hereunder so long as (i) at the time of the making 
of such loan, 
no Event of 
Default has occurred 
and is continuing 
or would result 
therefrom, and 
(ii) the sum 
of Borrowers' 
Availability 
plus
 
Qualified Cash 
(up to 
an amount 
not to 
exceed 
$1,500,000) is equal 
to or greater 
than $6,000,000 
immediately after giving 
effect to 
each such 
loan, and (e) a Loan 
Party to a Subsidiary 
of a Loan Party that 
is not a Loan Party 
so long as (i) the 
aggregate amount 
of all 
such loans 
(by type, 
not by 
the borrower) 
does not 
exceed $3,500,000 
outstanding at any one 
time, (ii) at the 
time of the 
making of such 
loan, no Event 
of Default has 
occurred and is continuing or would result therefrom, and (iii) the sum of Borrowers' Availability 
plus
 
Qualified Cash 
(up to 
an amount 
not to 
exceed $1,500,000) 
is equal 
to or 
greater than 
$6,000,000 immediately after giving effect to each such loan. 
"Permitted Investments" means: 
(a)
 
Investments in cash and Cash Equivalents, 
(b)
 
Investments in 
negotiable instruments 
deposited or 
to be 
deposited for 
collection in the ordinary course of business, 
(c)
 
advances made 
in connection 
with purchases 
of goods 
or services 
in the 
ordinary course of business, 
(d)
 
Investments received in settlement 
of amounts due to 
any Loan Party or 
any 
of its Subsidiaries 
effected in the 
ordinary course of business 
or owing to any 
Loan Party or any 
of its Subsidiaries as 
a result of Insolvency 
Proceedings involving an account 
debtor or upon the 
foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries, 
(e)
 
Investments owned 
by any 
Loan Party 
or any 
of its 
Subsidiaries on 
the 
Closing Date and set forth on Schedule P-1 to this Agreement, 
(f)
 
guarantees permitted under the definition of Permitted Indebtedness, 
(g)
 
Permitted Intercompany Advances, 
(h)
 
Equity  Interests 
or  other 
securities  acquired 
in  connection 
with  the 
satisfaction or 
enforcement of 
Indebtedness or 
claims due 
or owing 
to a 
Loan Party 
or its 
Subsidiaries (in bankruptcy of customers or suppliers 
or otherwise outside the ordinary course 
of 
business) or as security for any such Indebtedness or claims, 
(i)
 
deposits  of  cash 
made  in 
the  ordinary  course 
of  business  to 
secure 
performance of operating leases, 
(j)
 
(i) non-cash loans and 
advances to employees, 
officers, and directors 
of a 
Loan  Party 
or  any 
of  its 
Subsidiaries  for 
the  purpose 
of  purchasing 
Equity  Interests 
in 
Administrative Borrower so 
long as the 
proceeds of such 
loans are used 
in their entirety 
to purchase 
such Equity Interests 
in Administrative Borrower, 
and (ii) loans and 
advances to employees 
and 
officers of a Loan Party or any of its 
Subsidiaries in the ordinary course of business for any other 
business purpose and in an aggregate amount not to exceed $200,000 at any one time, 

 

 

 

 

 

(k)
 
Permitted Acquisitions, 
(l)
 
Investments resulting from 
entering into (i) 
Bank Product Agreements, 
or 
(ii) agreements relative 
to obligations 
permitted under 
clause (j) 
of the 
definition of 
Permitted 
Indebtedness, 
(m)
 
equity Investments by any 
Loan Party in any 
Subsidiary of such Loan Party 
which is required by 
law to maintain 
a minimum net capital 
requirement or as may 
be otherwise 
required by applicable law, 

(n)
 
so long 
as no 
Event of 
Default has 
occurred and 
is continuing 
or would 
result therefrom, any other Investments 
in an aggregate amount not to 
exceed $500,000 during the 
term of this Agreement,
 
 
(o)
 
Investments consisting 
of non-cash 
consideration received 
in connection 
with Permitted 
Dispositions, so long 
as the 
non-cash consideration 
received in 
connection with 
any Permitted Disposition does not 
exceed 25% of the total 
consideration received in connection 
with such Permitted Disposition, and 
(p)
 
Investments held 
by a 
Person acquired 
in a 
Permitted Acquisition 
to the 
extent that 
such Investments 
were not 
made in 
contemplation of 
or in 
connection with 
such 
Permitted Acquisition and were in existence on the date of such Permitted Acquisition.. 
"Permitted Liens" means: 
(a)
 
Liens granted to, or for the benefit of, Agent to secure the Obligations, 
(b)
 
Liens for unpaid 
taxes, assessments, or 
other governmental charges 
or levies 
that either 
(i) are not 
yet delinquent, 
or (ii) 
do not 
have priority 
over Agent's 
Liens and 
the 
underlying taxes, assessments, or charges or levies are the subject of Permitted Protests, 
(c)
 
judgment Liens 
arising solely 
as a 
result of 
the existence 
of judgments, 
orders, requirements to pay 
issued by a Canadian 
Governmental Authority or awards 
that do not 
constitute an Event of Default under Section 8.3 of this Agreement, 
(d)
 
Liens set forth on Schedule P-2 to 
this Agreement; provided, that to qualify 
as a Permitted Lien, any such Lien described on Schedule P-2 
to this Agreement shall only secure 
the Indebtedness that it secures on the 
Closing Date and any Refinancing Indebtedness 
in respect 
thereof, 
(e)
 
the interests of 
lessors under operating 
leases and non-exclusive 
licensors 
under license agreements, 
(f)
 
purchase money 
Liens on 
fixed assets 
or the 
interests of 
lessors under 
Capital  Leases to 
the extent 
that such 
Liens or 
interests secure 
Permitted Purchase 
Money 
Indebtedness and so 
long as (i) 
such Lien attaches 
only to the 
fixed asset purchased 
or acquired 
and the 
proceeds thereof, 
and (ii) 
such Lien 
only secures 
the Indebtedness 
that was 
incurred to 
acquire the fixed asset purchased or acquired or any Refinancing Indebtedness in respect thereof, 

(g)
 
Liens arising 
by operation 
of law 
in favor 
of warehousemen, 
landlords, 
carriers, mechanics, materialmen, 
laborers, or suppliers, 
incurred in the 
ordinary course of 
business 
and not in 
connection with the 
borrowing of money, 
and which Liens 
either (i) are for 
sums not 
yet delinquent, or (ii) are the subject of Permitted Protests, 
(h)
 
Liens on amounts 
deposited to secure 
any Borrower's and 
its Subsidiaries 
obligations in connection with worker's compensation or other unemployment insurance, 
(i)
 
Liens on amounts 
deposited to secure 
any Borrower's and 
its Subsidiaries 
obligations in connection 
with the making 
or entering into 
of bids, tenders, 
or leases in 
the ordinary 
course of business and not in connection with the borrowing of money, 
(j)
 
Liens on amounts 
deposited to secure 
any Borrower's and 
its Subsidiaries 
reimbursement obligations with respect to surety or 
appeal bonds obtained in the ordinary course 
of business, 
(k)
 
with respect 
to any 
Real Property, 
easements, rights 
of way, 
and zoning 
restrictions that do not materially interfere with or impair the use or operation thereof, 
(l)
 
non-exclusive  licenses 
of  patents, 
trademarks,  copyrights, 
and  other 
intellectual property rights in the ordinary course of business, 
(m)
 
Liens that are replacements 
of Permitted Liens to 
the extent that the 
original 
Indebtedness  (or  any  increases 
thereto  as  permitted  hereunder) 
is  the  subject  of 
permitted 
Refinancing Indebtedness and 
so long as 
the replacement Liens 
only encumber those 
assets that 
secured the original Indebtedness (or any increases thereto as permitted hereunder), 
(n)
 
rights of setoff or bankers' liens upon deposits of funds in favor of banks 
or 
other depository institutions, 
solely to the extent 
incurred in connection 
with the maintenance 
of 
such Deposit Accounts in the ordinary course of business, 
(o)
 
Liens granted in the ordinary course of business on the unearned portion of 
insurance premiums securing 
the financing of 
insurance premiums to 
the extent the 
financing is 
permitted under the definition of Permitted Indebtedness, 
(p)
 
Liens in favor of customs and revenue authorities arising 
as a matter of law 
to secure payment of customs duties in connection with the importation of goods, 

(q)
 
Liens on 
the Mexican 
Term Loan 
Collateral securing 
the Mexican 
Term 
Debt, 

(r)
 
Liens assumed by 
any Loan Party 
or its Subsidiaries 
in connection with 
a 
Permitted Acquisition that secure Acquired Indebtedness that is Permitted Indebtedness, 

(s)
 
Liens on 
assets of 
the Mexican 
Subsidiaries as 
to which 
the aggregate 
amount of the obligations secured thereby does not exceed $2,000,000; 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(t)
 
so long as 
the Citi 
Purchase Documents 
are in 
effect, Liens 
on Accounts 
owed by 
Xylem Inc. 
and its 
Subsidiaries and 
Affiliates to 
Loan Parties 
pursuant to 
the Citi 
Purchase Documents and 
(u)
 
other Liens which 
do not secure 
Indebtedness for borrowed 
money or letters 
of credit and as to which the aggregate amount 
of the obligations secured thereby does not exceed 
$250,000. 
"Permitted Protest" means the right of any Loan 
Party or any of its Subsidiaries to 
protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll 
taxes 
or taxes that are the subject of a United States federal 
tax lien or a requirement to pay issued by a 
Canadian Governmental Authority), or rental payment; provided, 
that (a) a reserve with respect to 
such obligation is established 
on such Loan Party's 
or its Subsidiaries' books 
and records in such 
amount as 
is required 
under GAAP, 
(b) any such 
protest is 
instituted promptly 
and prosecuted 
diligently by 
such Loan 
Party or 
its Subsidiary, 
as applicable, 
in good 
faith, and 
(c) Agent is 
satisfied, in 
its Permitted 
Discretion, that, 
while any 
such protest 
is pending, 
there will 
be no 
impairment of the enforceability, validity, 
or priority of any of Agent's Liens. 
"Permitted Purchase Money Indebtedness" means, as of any date of determination, 
Indebtedness (other than 
the Obligations, but 
including Capitalized Lease 
Obligations), incurred 
after the Closing Date 
and at the time 
of, or within 20 
days after, the acquisition of 
any fixed assets 
for the purpose of 
financing all or any 
part of the acquisition cost 
thereof, in an aggregate 
principal 
amount outstanding at any one time not in excess of $5,000,000. 
"Person" means natural persons, 
corporations, limited liability companies, 
limited 
partnerships, general partnerships, limited liability partnerships, joint 
ventures, trusts, land trusts, 
business  trusts,  or  other 
organizations,  irrespective  of 
whether  they  are  legal 
entities,  and 
governments and agencies and political subdivisions thereof. 
"Platform" 
has the meaning 
specified therefor in Section 
17.9(c) of this Agreement. 
"Post-Increase Revolver 
Lenders" has 
the meaning 
specified therefor 
in Section 
2.14 of this Agreement. 
"PPSA" 
means the 
Personal Property 
Security Act 
(Ontario) and 
the regulations 
thereunder, as from time to time in effect; provided, however, if attachment, perfection or priority 
of Agent's 
Lien on 
any Collateral 
are governed 
by the 
personal property 
security laws 
of any 
jurisdiction in Canada 
other than the 
laws of the 
Province of Ontario, 
"PPSA" means those 
personal 
property security laws 
in such other 
jurisdiction in Canada 
for the purposes 
of the provisions 
hereof 
relating to such 
attachment, perfection or priority 
and for the definitions 
related to such provisions. 
"Pre-Increase Revolver Lenders" 
has the meaning 
specified therefor in 
Section 2.14 
of this Agreement. 
"Projections" 
means Borrowers' 
forecasted (a) 
balance sheets, 
(b) profit and 
loss 
statements, and 
(c) cash flow 
statements, all 
prepared on 
a basis 
consistent with 
Borrowers' 
historical financial 
statements, together 
with appropriate 
supporting details 
and a 
statement of 
underlying assumptions. 

 

 

 

 

 

 

 

"Pro Rata Share" 
means, as of any date of determination: 
(a)
 
with  respect  to  a  Lender's  obligation  to  make  all  or  a  portion  of  the 
Revolving Loans, 
with respect 
to such 
Lender's right 
to receive 
payments of 
interest, fees, 
and 
principal with respect to 
the Revolving Loans, and 
with respect to all 
other computations and other 
matters related to the Revolver Commitments or the Revolving 
Loans, the percentage obtained by 
dividing (i) the 
Revolving Loan Exposure 
of such Lender, 
by (ii) the 
aggregate Revolving Loan 
Exposure of all Lenders, 
(b)
 
with respect to a Lender's 
obligation to participate in 
the Letters of Credit, 
with respect 
to such 
Lender's obligation 
to reimburse 
Issuing Bank, 
and with 
respect to 
such 
Lender's  right  to  receive  payments  of  Letter  of 
Credit  Fees,  and  with  respect  to  all  other 
computations and other 
matters related to 
the Letters of 
Credit, the percentage 
obtained by dividing 
(i) the Revolving Loan Exposure of 
such Lender, by (ii) 
the aggregate Revolving Loan Exposure 
of all Lenders; 
provided, that if 
all of the 
Revolving Loans have 
been repaid in 
full and all 
Revolver 
Commitments have 
been terminated, 
but Letters 
of Credit 
remain outstanding, 
Pro Rata 
Share 
under this clause shall be 
the percentage obtained by 
dividing (A) the Letter of Credit Exposure 
of 
such Lender, by (B) the Letter of Credit Exposure of all Lenders, 

(c)
 
with respect to 
a Lender's obligation 
to make all 
or a portion 
of the Initial 
M/E Term 
Loan and the 
Additional M/E Term 
Loan, with respect 
to a Lender's 
right to receive 
payments of interest, fees, 
and principal with respect 
to the M/E Term 
Loan, and with respect 
to 
all other computations and other matters related to the 
M/E Term Loan Commitments 
or the M/E 
Term Loan, the percentage obtained by dividing (i) the M/E Term Loan Exposure of such Lender, 
by (ii) the aggregate M/E Term Loan Exposure of all Lenders, 

(d)
 
with respect 
to a 
Lender's obligation 
to make 
all or 
a portion 
of the 
R/E 
Term Loan, with respect to such Lender's right to receive payments of interest, fees, and principal 
with respect to the 
R/E Term 
Loan, and with respect 
to all other computations 
and other matters 
related to the 
R/E Term 
Loan Commitments or 
the R/E Term 
Loan, the percentage 
obtained by 
dividing (i) the R/E 
Term Loan 
Exposure of such 
Lender, by 
(ii) the aggregate R/E 
Term Loan 
Exposure of all Lenders, and 
(e)
 
with respect to all 
other matters and 
for all other 
matters as to 
a particular 
Lender (including the indemnification obligations 
arising under Section 15.7 of 
this Agreement), 
the percentage obtained by dividing (i) 
the Revolving Loan Exposure, M/E 
Term Loan Exposure 
and R/E 
Term Loan 
Exposure of 
such Lender, 
by (ii) 
the aggregate 
Revolving Loan 
Exposure, 
M/E Term 
Loan Exposure and 
R/E Term 
Loan Exposure of 
all Lenders, in 
any such case 
as the 
applicable  percentage  may  be  adjusted  by  assignments  permitted  pursuant  to  Section 
13.1; 
provided, that 
if all 
of the 
Loans have 
been repaid 
in full 
and all 
Commitments have 
been 
terminated, Pro Rata Share under this 
clause shall be the percentage obtained 
by dividing (A) the 
Letter of Credit Exposure of such Lender, by (B) the Letter of Credit Exposure of all Lenders. 
"Protective Advances 
" 
has the 
meaning specified 
therefor in 
Section 2.3(d)(i) 
of 
this Agreement. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Public Lender" 
has the 
meaning specified 
therefor in 
Section 17.9(c) 
of this 
Agreement. 
"Qualified Cash" means, 
as of any 
date of determination, the 
amount of unrestricted 
cash and Cash Equivalents 
of the Loan Parties 
and their Subsidiaries that 
is in Deposit Accounts 
or in 
Securities Accounts, 
or any 
combination thereof, 
and which 
such Deposit 
Account or 
Securities Account is the subject of 
a Control Agreement and is maintained 
by a branch office of 
the bank or securities intermediary located within the United States or Canada. 
"Qualified Equity 
Interests" means 
and refers 
to any 
Equity Interests 
issued by 
Administrative Borrower (and 
not by one 
or more of 
its Subsidiaries) 
that is 
not a Disqualified 
Equity Interest. 
"QFC" has the meaning 
assigned to the term 
"qualified financial contract" in, 
and 
shall be interpreted in accordance with, 12 U.S.C. § 5390(c)(8)(D). 
"QFC Credit Support" has 
the meaning specified 
therefor in Section 17.15 
of this 
Agreement. 
"Quebec  Security 
Documents"  means 
any  hypothecs 
and  all 
other  security 
documents governed by 
the laws of 
the Province of 
Quebec, each in 
form and substance 
reasonably 
satisfactory  to  Agent,  executed  and  delivered  by  a  Loan  Party  to  the  Agent  to  secure  the 
Obligations, and each as amended, restated, supplemented or modified from time to time. 
"R/E Borrowing 
Base" means 
the result 
of 60% 
of the 
FMV of 
Eligible Real 
Property identified in the most recent Acceptable Appraisal of the Eligible Real Property. 
"Real Property" 
means any 
estates or 
interests in 
real property 
now owned 
or 
hereafter acquired by any Loan Party or one of its Subsidiaries and the improvements thereto. 
"Real Property Collateral" 
means (a) the Real Property identified on Schedule R-1 
to this Agreement, 
and (b) any Real 
Property hereafter acquired 
by any Loan 
Party or one 
of its 
Subsidiaries (other than 
any Mexican Subsidiary) with 
a fair market 
value in excess of 
$1,500,000. 
"Real Property Reserves" 
means, as of 
any date of 
determination, those 
reserves 
that Agent 
deems necessary 
or appropriate, 
in its 
Permitted Discretion 
and subject 
to Section 
2.1(c), to 
establish and 
maintain with 
respect to 
Eligible Real 
Property, including 
based on 
the 
results of appraisals. 
"Receivable Reserves" means, as of 
any date of determination, those 
reserves that 
Agent deems necessary or appropriate, in 
its Permitted 
Discretion and subject to Section 2.1(c), 
to 
establish and maintain (including Landlord Reserves for books and records locations and 
reserves 
for rebates, discounts, 
warranty claims, and returns) 
with respect to 
the Eligible Accounts or 
the 
Maximum Revolver Amount. 
"Record" means information that 
is inscribed on a 
tangible medium or that 
is stored 
in an electronic or other medium and is retrievable in perceivable form. 

 

 

 

 

 

 

 

 

"Reference Period" 
has the meaning set forth in the definition of EBITDA. 
"Refinancing  Indebtedness" 
means  refinancings, 
renewals,  or 
extensions  of 
Indebtedness so long as: 
(a)
 
such refinancings, renewals, or 
extensions do not result 
in an increase in 
the 
principal amount 
of the 
Indebtedness so 
refinanced, renewed, 
or extended, 
other than 
by the 
amount of premiums paid thereon and the fees and expenses incurred in 
connection therewith and 
by the amount of unfunded commitments with respect thereto, 
(b)
 
such refinancings, renewals, 
or extensions do 
not result in 
a shortening of 
the final stated 
maturity or the 
average weighted maturity 
(measured as of 
the refinancing, renewal, 
or extension) of 
the Indebtedness so 
refinanced, renewed, or 
extended, nor are 
they on terms 
or 
conditions that, taken as a whole, are or 
could reasonably be expected to be 
materially adverse to 
the interests of the Lenders, 
(c)
 
if  the 
Indebtedness  that 
is  refinanced, 
renewed,  or 
extended  was 
subordinated  in  right  of  payment  to  the  Obligations, 
then  the  terms  and  conditions  of  the 
refinancing, renewal, or 
extension must include subordination 
terms and conditions that 
are at least 
as favorable 
to the 
Lender Group 
as those 
that were 
applicable to 
the refinanced, 
renewed, or 
extended Indebtedness, 
(d)
 
the Indebtedness that is refinanced, renewed, or extended is not recourse to 
any Person 
that is 
liable on 
account of 
the Obligations 
other than 
those Persons 
which were 
obligated with respect to the Indebtedness that was refinanced, renewed, or extended, 
(e)
 
if the Indebtedness that is refinanced, renewed or extended 
was unsecured, 
such refinancing, renewal or extension shall be unsecured, and 
(f)
 
if the Indebtedness that is refinanced, renewed, or extended was secured (i) 
such refinancing, renewal, or 
extension shall be secured 
by substantially the same 
or less collateral 
as secured such refinanced, 
renewed or extended Indebtedness 
on terms no less 
favorable to Agent 
or the Lender 
Group and (ii) 
the Liens securing such 
refinancing, renewal or 
extension shall not 
have a priority more senior than the Liens securing such Indebtedness that is refinanced, renewed 
or extended. 
"Register" has the meaning set forth in Section 13.1(h) of this Agreement. 
"Registered Loan" has the meaning set forth in Section 13.1(h) of this Agreement. 
"Related Fund" means any 
Person (other than a 
natural person) that is 
engaged in 
making, purchasing, 
holding or 
investing in 
bank loans 
and similar 
extensions of 
credit in 
the 
ordinary course and that is administered, advised or 
managed by (a) a Lender, (b) an Affiliate of a 
Lender, or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender. 
"Relevant  Governmental  Body"  means  the  Federal  Reserve  Board  and/or  the 
Federal Reserve Bank 
of New York, or a 
committee officially endorsed 
or convened by 
the Federal 
Reserve Board and/or the Federal Reserve Bank of New York 
or any successor thereto. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Remedial Action" 
means all 
actions taken 
to (a) 
clean up, 
remove, remediate, 
contain, treat, monitor, assess, evaluate, 
or in any way address Hazardous 
Materials in the indoor 
or outdoor 
environment, (b) 
prevent or 
minimize a 
release or 
threatened release 
of Hazardous 
Materials so they do 
not migrate or 
endanger or threaten to 
endanger public health or 
welfare or 
the indoor 
or outdoor 
environment, (c) 
restore or 
reclaim natural 
resources or 
the environment, 
(d) perform any pre-remedial studies, investigations, or post-remedial operation 
and maintenance 
activities, or 
(e) conduct any 
other actions 
with respect 
to Hazardous 
Materials required 
by 
Environmental Laws. 
"Replacement Lender" has the 
meaning specified therefor in 
Section 2.13(b) of this 
Agreement. 
"Report" has the meaning specified therefor in Section 15.16 of this Agreement. 
"Required  Availability" 
means  that  the  sum 
of  (a)  Excess  Availability, 
plus
 
(b) Qualified Cash exceeds $9,000,000. 
"Required Lenders" means, at any time, Lenders having 
or holding more than 50% 
of the sum 
of (a) the aggregate 
Revolving Loan Exposure 
of all Lenders, 
plus
 
(b) the aggregate 
M/E Term 
Loan Exposure of 
all Lenders
 
plus
 
(c) the aggregate 
R/E Term 
Loan Exposure of 
all 
Lenders; provided, that 
(i) the Revolving Loan 
Exposure, M/E Term Loan 
Exposure and R/E 
Term 
Loan Exposure of any 
Defaulting Lender shall be 
disregarded in the determination 
of the Required 
Lenders, and (ii) at any time there are two or more Lenders (who are not Affiliates of one another 
or Defaulting 
Lenders), "Required 
Lenders" must 
include at 
least two 
Lenders (who 
are not 
Affiliates of one another). 
"Reserves" means, 
as of 
any date 
of determination, 
Inventory Reserves, 
M&E 
Reserves,  Real  Property  Reserves, 
Receivable  Reserves,  Bank  Product 
Reserves,  Canadian 
Priority Payables Reserves and those other reserves that 
Agent deems necessary or appropriate, in 
its Permitted Discretion and 
subject to Section 2.1(c), 
to establish and maintain 
(including reserves 
with respect 
to (a) 
sums that 
any Loan 
Party or 
its Subsidiaries 
are required 
to pay 
under any 
Section of 
this Agreement 
or any other 
Loan Document 
(such as 
taxes, assessments, 
insurance 
premiums, or, in 
the case of leased assets, 
rents or other amounts 
payable under such leases) and 
has failed to 
pay, and 
(b) amounts owing by 
any Loan Party 
or its Subsidiaries 
to any Person 
to 
the extent secured by a Lien 
on, or trust over, 
any of the Collateral (other than a 
Permitted Lien), 
which Lien or trust, in 
the Permitted Discretion of 
Agent likely would have a 
priority superior to 
the Agent's Liens 
(such as Liens 
or trusts in 
favor of landlords, 
warehousemen, carriers, mechanics, 
materialmen, laborers, or suppliers, or Liens or 
trusts for ad valorem, excise, sales, 
or other taxes 
where given priority 
under applicable law) 
in and to 
such item of 
the Collateral) with 
respect to 
the Borrowing Base or the Maximum Revolver Amount. 
"Restricted Payment" 
means (a) any declaration or payment of any dividend or the 
making of any other payment or distribution, directly or indirectly, 
on account of Equity Interests 
issued by Administrative 
Borrower or any 
of its Subsidiaries 
(including any payment 
in connection 
with any 
merger, amalgamation 
or consolidation 
involving Administrative 
Borrower) or 
to the 
direct or 
indirect holders 
of Equity 
Interests issued 
by Administrative 
Borrower or 
any of 
its 
Subsidiaries in their 
capacity as such 
(other than dividends 
or distributions payable 
in Qualified 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Interests issued by Administrative 
Borrower or any 
of its Subsidiaries, or (b) 
any purchase, 
redemption, making of any sinking fund or similar payment, or other acquisition or retirement for 
value  (including  in 
connection  with  any 
merger,  amalgamation 
or  consolidation  involving 
Administrative Borrower) any 
Equity Interests issued 
by Administrative Borrower 
or any of 
its 
Subsidiaries, or 
(c) any making 
of any 
payment to 
retire, or 
to obtain 
the surrender 
of, any 
outstanding  warrants,  options,  or  other  rights  to 
acquire  Equity  Interests  of  Administrative 
Borrower now or hereafter outstanding. 
"R/E Term 
Loan" has 
the meaning 
specified therefor 
in Section 
2.2(b) of 
this 
Agreement. 
"R/E Term Loan Amount" means $9,500,000. 
"R/E Term 
Loan Commitment" means, with 
respect to each Lender, 
its R/E Term 
Loan Commitment, and, with respect to 
all Lenders, their R/E Term 
Loan Commitments, in each 
case as such Dollar amounts are set forth beside such Lender's name under the applicable 
heading 
on Schedule C-1 to this Agreement or in 
the Assignment and Acceptance pursuant to which 
such 
Lender became a 
Lender under this 
Agreement, as such 
amounts may be 
reduced or increased 
from 
time to time 
pursuant to assignments 
made in accordance 
with the provisions 
of Section 13.1 
of 
this Agreement. 
"R/E Term Loan Exposure" means, 
with respect to any R/E Term 
Loan Lender, as 
of any date of determination (a) prior to the funding 
of the Loan, the amount of such Lender's R/E 
Term Loan Commitment, and 
(b) after the funding 
of the R/E 
Term Loan, the outstanding 
principal 
amount of the R/E Term Loan held by such Lender. 
"Revaluation Date" means (a) with respect to any Revolving Loan denominated in 
US Dollars, each of the following: 
(i) each date of a Borrowing of such 
Revolving Loan, (ii) each 
date of a continuation 
of such Revolving Loan 
pursuant to Section 2.12, 
and (iii) such additional 
dates as Agent shall 
determine or the Required 
Lenders shall require, (b) 
with respect to any 
Letter 
of Credit 
denominated in 
US Dollars, 
each of 
the following: 
(i) each date 
of issuance 
of such 
Letter of 
Credit, (ii) 
each date 
of an 
amendment of 
such Letter 
of Credit 
having the 
effect of 
increasing the 
amount thereof, 
(iii) each date 
of any 
payment by 
an Issuing 
Lender under such 
Letter of Credit 
, 
and (iv) such additional 
dates as Agent 
or an Issuing 
Lender shall determine 
or 
the Required Lenders shall 
require, and (c) with respect to 
any other Obligations denominated 
in 
US Dollars, each date as 
Agent shall determine unless otherwise prescribed 
in this Agreement or 
any other Loan Documents. 
"Revolver  Commitment"  means, 
with  respect  to 
each  Revolving  Lender, 
its 
Revolver Commitment, and, with respect to all Revolving Lenders, their Revolver Commitments, 
in each case as such Dollar amounts are set forth 
beside such Revolving Lender's name under the 
applicable heading on 
Schedule C-1 to 
this Agreement or 
in the Assignment 
and Acceptance or 
Increase Joinder pursuant to which such 
Revolving Lender became a Revolving Lender 
under this 
Agreement,  as  such  amounts  may  be 
reduced  or  increased  from  time 
to  time  pursuant  to 
assignments made in 
accordance with 
the provisions 
of Section 13.1 
of this 
Agreement, and 
as 
such amounts may be decreased by the amount of reductions in the Revolver Commitments made 
in accordance with Section 2.4(c) hereof. 

 

 

 

 

 

 

 

 

 

 

 

"Revolver Usage" means, 
as of any 
date of determination, 
the sum of 
(a) the amount 
of outstanding Revolving Loans (inclusive of 
Swing Loans and Protective Advances), 
plus
 
(b) the 
amount of the Letter of Credit Usage. 
"Revolving Lender" means a Lender that has a 
Revolving Loan Exposure or Letter 
of Credit Exposure. 
"Revolving Loan Base Rate Margin" has 
the meaning set forth in the 
definition of 
Applicable Margin. 
"Revolving Loan Exposure 
" 
means, with respect 
to any Revolving 
Lender, as 
of 
any date of determination 
(a) prior to the termination 
of the Revolver Commitments, 
the amount 
of  such 
Lender's  Revolver 
Commitment,  and 
(b) after  the 
termination  of 
the  Revolver 
Commitments, the aggregate 
outstanding principal amount 
of the Revolving 
Loans of such 
Lender. 
"Revolving Loan LIBOR Rate Margin" 
has the meaning set forth in 
the definition 
of Applicable Margin. 
"Revolving Loans" 
has the 
meaning specified 
therefor in 
Section 2.1(a) 
of this 
Agreement. 
"Sanctioned Entity" means (a) 
a country or territory or 
a government of a 
country 
or territory, (b) an agency of the 
government of a country or territory, (c) 
an organization directly 
or indirectly controlled by 
a country or 
territory or its 
government, or (d) a 
Person resident in 
or 
determined to be resident in a country or territory, 
in each case of clauses (a) through (d) that is 
a 
target of Sanctions, including 
a target of any 
country sanctions program 
administered and enforced 
by OFAC. 
"Sanctioned Person 
" 
means, at 
any time 
(a) any Person 
named on 
the list 
of 
Specially Designated Nationals and Blocked Persons maintained by OFAC, OFAC's consolidated 
Non-SDN list or any 
other Sanctions-related list maintained 
by any Governmental Authority, (b) a 
Person or legal entity that is a target of Sanctions, 
(c) any Person operating, organized or resident 
in a Sanctioned Entity, 
or (d) any Person 
directly or indirectly 
owned or controlled 
(individually 
or in the aggregate) by or 
acting on behalf of any such Person 
or Persons described in clauses (a) 
through (c) above. 
"Sanctions" means individually 
and collectively, respectively, any and 
all economic 
sanctions,  trade  sanctions,  financial  sanctions,  sectoral  sanctions,  secondary  sanctions,  trade 
embargoes anti-terrorism laws and 
other sanctions laws, 
regulations or embargoes, including 
those 
imposed, administered 
or enforced 
from time 
to time 
by: 
(a) the United 
States of 
America, 
including those 
administered by 
OFAC, the 
U.S. Department 
of State, 
the U.S. 
Department of 
Commerce, or 
through any 
existing or 
future executive 
order, (b) 
the United 
Nations Security 
Council, (c) the Government of Canada, (d) the European Union or any European Union member 
state, (e) Her Majesty's Treasury of the 
United Kingdom, or (f) any other 
Governmental Authority 
with jurisdiction over any member 
of Lender Group or 
any Loan Party or 
any of their respective 
Subsidiaries or Affiliates. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"S&P" has 
the meaning 
specified therefor 
in the 
definition of 
Domestic Cash 
Equivalents. 
"SEC" means 
the United 
States Securities 
and Exchange 
Commission and 
any 
successor thereto. 
"Securities Account" 
means a 
securities account 
(as that 
term is 
defined in 
the 
Code). 
"Securities Act" means the Securities 
Act of 1933, as amended 
from time to time, 
and any successor statute. 
"Settlement"  has  the 
meaning  specified  therefor 
in  Section 
2.3(e)(i)  of  this 
Agreement. 
"Settlement Date" 
has the 
meaning specified 
therefor in 
Section 2.3(e)(i) 
of this 
Agreement. 
"SOFR"  with  respect  to  any  day  means  the  secured  overnight  financing  rate 
published for 
such day 
by the 
Federal Reserve 
Bank of 
New York, 
as the 
administrator of 
the 
benchmark, (or a successor administrator) on the Federal Reserve Bank of New York's Website. 
"Solvent" means, with 
respect to any 
Person as of 
any date of determination, 
that 
(a) at fair valuations, the 
sum of such Person's 
debts (including contingent liabilities) 
is less than 
all of 
such Person's 
assets, (b) 
such Person 
is not 
engaged or 
about to 
engage in 
a business 
or 
transaction for which the remaining 
assets of such Person are unreasonably 
small in relation to the 
business or transaction or 
for which the property 
remaining with such Person 
is an unreasonably 
small capital, (c) such Person has not incurred and does not intend 
to incur, or reasonably believe 
that it will 
incur, debts beyond its 
ability to pay 
such debts as 
they become due 
(whether at maturity 
or otherwise), and 
(d) such Person is "solvent" 
or not "insolvent", 
as applicable within the 
meaning 
given those 
terms and 
similar terms 
under applicable 
laws relating 
to bankruptcy, 
insolvency, 
fraudulent  transfers  and  conveyances. 
For  purposes  of  this  definition, 
the  amount  of  any 
contingent liability at any time 
shall be computed as the 
amount that, in light of 
all of the facts and 
circumstances existing 
at such 
time, represents 
the amount 
that can 
reasonably be 
expected to 
become an actual or matured liability (irrespective of whether such contingent liabilities meet 
the 
criteria for accrual under Statement of Financial Accounting Standard No. 5). 
"Specified State" 
means any one of (a) the United States and (b) Canada. 
"Specified  Transaction" 
means,  any 
Investment,  or 
Restricted  Payment 
(or 
declaration of any prepayment or Restricted Payment). 
"Spot Rate" 
means, for 
a currency, 
the rate 
determined by 
Agent to 
be the 
rate 
quoted by Wells 
Fargo acting in such capacity as the spot rate for the purchase by Wells 
Fargo of 
such currency 
with another 
currency through 
its principal 
foreign exchange 
trading office 
at 
approximately 11:00 a.m. (New York 
time) on the date two Business 
Days prior to the date 
as of 
which the foreign exchange computation is made; provided, that Agent may obtain such 
spot rate 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from another financial institution designated by Agent 
if Wells Fargo acting in such capacity does 
not have as of the date of determination a spot buying rate for any such currency. 
"STA"  means 
the  Securities 
Transfer  Act, 
2006  (Ontario) 
or  to 
the  extent 
applicable, comparable legislation in other Canadian provinces. 
"Standard Letter 
of Credit 
Practice" means, 
for Issuing 
Bank, any 
domestic or 
foreign law 
or letter 
of credit 
practices applicable 
in the 
city in 
which Issuing 
Bank issued 
the 
applicable Letter of Credit or, 
for its branch or correspondent, such laws 
and practices applicable 
in the city in which it has advised, confirmed or 
negotiated such Letter of Credit, as the case may 
be, in each case, 
(a) which letter of credit 
practices are of banks 
that regularly issue letters 
of credit 
in the particular 
city, and (b) which laws or 
letter of credit 
practices are required 
or permitted under 
ISP or UCP, 
as chosen in the applicable Letter of Credit. 
"Subject Holder" 
has the 
meaning specified 
therefor in 
Section 2.4(e)(v) 
of this 
Agreement. 
"Subordinated Indebtedness" 
means any 
Indebtedness of 
any Loan 
Party or 
its 
Subsidiaries incurred from time to time that is subordinated 
in right of payment to the Obligations 
and is subject to a subordination 
agreement acceptable to Agent or contains terms 
and conditions 
of subordination that are acceptable to Agent. 
"Subsidiary"  of 
a  Person 
means  a 
corporation,  partnership, 
limited  liability 
company, unlimited 
liability company or 
other entity in 
which that Person 
directly or indirectly 
owns or controls 
the Equity Interests having 
ordinary voting power to 
elect a majority of 
the Board 
of Directors of such corporation, partnership, limited liability company, or other entity. 
"Supermajority Lenders" means, at any 
time, Revolving Lenders having or 
holding 
more than 66 
2/3% of the 
aggregate Revolving Loan 
Exposure of all 
Revolving Lenders; provided, 
that (i) 
the Revolving 
Loan Exposure 
of any 
Defaulting Lender 
shall be 
disregarded in 
the 
determination of the Supermajority Lenders, and (ii) at any time there are two or more Revolving 
Lenders (who are 
not Affiliates of one 
another), "Supermajority Lenders" 
must include at least 
two 
Revolving Lenders (who are not Affiliates of one another or Defaulting Lenders). 
"Supported QFC" 
has the 
meaning specified 
therefor in 
Section 17.15 
of this 
Agreement. 
"Swap Obligation" means, with respect to any Loan 
Party, any obligation to pay or 
perform under any agreement, 
contract or transaction that constitutes 
a "swap" within the meaning 
of section 1a(47) of the Commodity Exchange Act. 
"Swing Lender" 
means Wells 
Fargo or 
any other 
Lender that, 
at the 
request of 
Borrowers and with the 
consent of Agent agrees, 
in such Lender's sole 
discretion, to become the 
Swing Lender under Section 2.3(b) of this Agreement. 
"Swing  Loan"  has 
the  meaning  specified 
therefor  in  Section 
2.3(b)  of  this 
Agreement. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"Swing Loan Exposure" 
means, as of any date 
of determination with respect to any 
Lender, such Lender's Pro Rata Share of the Swing Loans on such date. 
"Taxes" means any taxes, levies, 
imposts, duties, fees, 
assessments or other 
charges 
of whatever nature now or hereafter 
imposed by any jurisdiction or by any 
political subdivision or 
taxing authority 
thereof or 
therein, and 
all interest, 
penalties or 
similar liabilities 
with respect 
thereto. 
"Tax  Lender 
" 
has  the  meaning 
specified  therefor  in 
Section  14.2(a)  of 
this 
Agreement. 
"Term Loans" means the M/E Term 
Loan and the R/E Term Loan. 
"Term Loan 
Base Rate 
Margin" has 
the meaning 
set forth 
in the 
definition of 
Applicable Margin. 
"Term Loan Lender" means a Lender that has a M/E Term 
Loan Commitment or a 
R/E Term Loan Commitment or that has a portion of the M/E Term 
Loan or R/E Term Loan. 
"Term Loan 
LIBOR Rate 
Margin" has 
the meaning 
set forth 
in the 
definition of 
Applicable Margin. 
"Term SOFR" 
means the forward-looking term 
rate based on SOFR that 
has been 
selected or recommended by the Relevant Governmental Body. 
"Tooling" means the machine tooling and 
components, such as jigs, 
gauges, molds, 
dies and cutting 
equipment and patterns, 
used by a 
Person in the 
manufacture and production 
of 
Inventory. 
"Trademark  Security 
Agreement" 
has  the 
meaning  specified 
therefor  in 
the 
Guaranty and Security Agreement. 
"UCP" means, 
with respect 
to any 
Letter of 
Credit, the 
Uniform Customs 
and 
Practice for Documentary 
Credits 2007 Revision, 
International Chamber of 
Commerce Publication 
No. 600 and any version or revision thereof accepted by Issuing Bank for use. 
"Unadjusted  Benchmark 
Replacement"  means 
the  Benchmark 
Replacement 
excluding the Benchmark Replacement Adjustment. 
"Unfinanced Capital 
Expenditures" means 
Capital Expenditures 
(a) not financed 
with the proceeds of any 
incurrence of Indebtedness (other than 
the incurrence of any Revolving 
Loans), the 
proceeds of 
any sale 
or issuance 
of Equity 
Interests or 
equity contributions, 
the 
proceeds of any asset sale 
(other than the sale of 
Inventory in the ordinary course of 
business) or 
any insurance 
proceeds, and 
(b) that are 
not reimbursed 
by a 
third person 
(excluding any 
Loan 
Party or 
any of 
its Affiliates) 
in the 
period such 
expenditures are 
made pursuant 
to a 
written 
agreement; provided, that, 
Unfinanced Capital Expenditures 
shall exclude BRP/Navistar 
Project 
Cap Ex incurred on or prior to December 31, 2022. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"United States" 
or "US" 
or "U.S." 
means the United States of America. 
"Unused Line 
Fee" has 
the meaning 
specified therefor 
in Section 
2.10(b) of 
this 
Agreement. 
"U.S. Special Resolution 
Regimes" has the 
meaning specified therefor 
in Section 
17.15 of this Agreement. 
"Voidable 
Transfer" 
has the 
meaning specified 
therefor in 
Section 17.8 
of this 
Agreement. 
"Wells Fargo 
" 
means Wells 
Fargo Bank, National Association, a national 
banking 
association. 
"Withdrawal Liability" 
means liability with 
respect to a 
Multiemployer Plan as 
a 
result of a 
complete or partial 
withdrawal from such 
Multiemployer Plan, as 
such terms are 
defined 
in Part I of Subtitle E of Title IV of ERISA. 
"Write-Down and Conversion Powers" means, with 
respect to any EEA 
Resolution 
Authority, the write-down and conversion powers of such EEA 
Resolution Authority from time to 
time under the 
Bail-In Legislation for 
the applicable 
EEA Member Country, 
which write 
-down 
and conversion powers are described in the EU Bail-In Legislation Schedule. 
1.2.
 
Accounting Terms
. 
All accounting terms not specifically defined herein shall 
be construed in accordance with GAAP; provided, that if Administrative Borrower notifies Agent 
that Borrowers 
request an 
amendment to 
any provision 
hereof to 
eliminate the 
effect of 
any 
Accounting Change occurring after the Closing Date 
or in the application thereof on 
the operation 
of such provision (or if Agent 
notifies Administrative Borrower that the Required 
Lenders request 
an amendment to any provision hereof for such purpose), 
regardless of whether any such notice is 
given before 
or after 
such Accounting 
Change or 
in the 
application thereof, 
then Agent 
and 
Borrowers agree 
that they 
will negotiate 
in good 
faith amendments 
to the 
provisions of 
this 
Agreement that 
are directly 
affected by 
such Accounting 
Change with 
the intent 
of having 
the 
respective positions 
of the 
Lenders and 
Borrowers after 
such Accounting 
Change conform 
as 
nearly as possible to their respective 
positions immediately before such Accounting Change 
took 
effect and, 
until any 
such amendments 
have been 
agreed upon 
and agreed 
to by 
the Required 
Lenders, the provisions 
in this 
Agreement shall be 
calculated as if 
no such Accounting 
Change 
had occurred. 
When used 
herein, the 
term "financial 
statements" shall 
include the 
notes and 
schedules thereto. Whenever the term 
"Borrowers" is used in respect 
of a financial covenant or 
a 
related definition, 
it shall 
be understood 
to mean 
the Loan 
Parties and 
their Subsidiaries 
on a 
consolidated basis, unless the context clearly 
requires otherwise. 
Notwithstanding anything to the 
contrary contained herein, (a) 
all financial statements delivered 
hereunder shall be 
prepared, and 
all financial covenants contained 
herein shall be calculated, 
without giving effect 
to any election 
under   the   Statement   of   Financial   Accounting   Standards   Board's   Accounting   Standards 
Codification Topic 
825 (or 
any similar 
accounting principle) 
permitting a 
Person to 
value its 
financial liabilities or Indebtedness 
at the fair value 
thereof, and (b) the term 
"unqualified opinion" 
as used herein 
to refer to 
opinions or reports 
provided by accountants 
shall mean an 
opinion or 
report that is (i) unqualified, and (ii) does not include any explanation, supplemental comment, or 

 

 

 

other comment concerning the 
ability of the applicable 
Person to continue 
as a going concern 
or 
concerning the scope of the audit. 
1.3.
 
Code; PPSA
. 
Any terms 
used in 
this Agreement 
that are 
defined in 
(a) the 
Code shall 
be construed 
and defined 
as set 
forth in 
the Code 
unless otherwise 
defined herein; 
provided, that to the 
extent that the Code 
is used to define 
any term herein and 
such term is defined 
differently in different 
Articles of the Code, 
the definition of such 
term contained in Article 
9 of 
the Code shall govern, 
and (b) the PPSA shall 
be construed and defined 
as set forth in 
the PPSA 
unless  otherwise  defined 
herein  when  used  in 
relation  to  Collateral 
subject  to  the 
PPSA. 

Notwithstanding the 
foregoing, and 
where the 
context so 
requires, (i) 
any term 
defined in 
this 
Agreement by reference to the "Code", the "UCC" 
or the "Uniform Commercial Code" shall also 
have any extended, 
alternative or analogous 
meaning given to 
such term in 
applicable Canadian 
personal property 
security and 
other laws 
(including, without 
limitation, the 
PPSA, the 
Bills of 
Exchange Act
 
(Canada) and 
the 
Depository Bills 
and Notes 
Act
 
(Canada)), in 
all cases 
for the 
extension, preservation or betterment of the security and 
rights of the Collateral, (ii) all references 
in this Agreement 
to "Article 8" 
shall be deemed 
to refer also 
to applicable Canadian 
securities 
transfer laws (including, 
without limitation, the 
STA), (iii) 
all references in 
this Agreement to 
a 
financing statement, continuation statement, 
amendment or termination statement 
shall be deemed 
to refer also 
to the analogous 
documents used under 
the PPSA, (iv) 
all references to 
the United 
States of America, 
or to any 
subdivision, department, agency 
or instrumentality thereof 
shall be 
deemed to 
refer also 
to Canada, 
or to 
any subdivision, 
department, agency 
or instrumentality 
thereof, and (v) all references 
to federal or state 
securities law of the 
United States shall be 
deemed 
to refer also to analogous federal (where applicable) and provincial securities laws in Canada. 
1.4.
 
Construction
. 
Unless  the  context  of  this  Agreement  or  any 
other  Loan 
Document clearly requires 
otherwise, references to 
the plural include 
the singular, 
references to 
the singular include the plural, the terms 
"includes" and 
"including" are not limiting, and the term 
"or" has, 
except where 
otherwise indicated, 
the inclusive 
meaning represented 
by the 
phrase 
"and/or." 
The  words  "hereof," 
"herein,"  "hereby," 
"hereunder,"  and 
similar  terms  in 
this 
Agreement or any other Loan 
Document refer to this Agreement 
or such other Loan Document, as 
the case may 
be, as a 
whole and not 
to any particular 
provision of this 
Agreement or such 
other 
Loan Document, as the case may 
be. 
Section, subsection, clause, schedule, and exhibit references 
herein are to 
this Agreement unless 
otherwise specified. 
Any reference in 
this Agreement or 
in 
any other Loan Document to any agreement, instrument, or 
document shall include all alterations, 
amendments, changes, extensions, modifications, renewals, replacements, 
substitutions, joinders, 
and supplements, thereto and thereof, 
as applicable (subject to any restrictions 
on such alterations, 
amendments, changes, extensions, modifications, renewals, replacements, 
substitutions, joinders, 
and supplements set 
forth herein). 
The words "asset" 
and "property" shall 
be construed to 
have 
the same 
meaning and 
effect and 
to refer 
to any 
and all 
tangible and 
intangible assets 
and 
properties. 
All references to "province" or 
like terms shall include "territory" 
and like terms. 
Any 
reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full 
of the Obligations shall mean (a) the payment or repayment in 
full in immediately available funds 
of (i) 
the principal 
amount of, 
and interest 
accrued and 
unpaid with 
respect to, 
all outstanding 
Loans, together with 
the payment of any 
premium applicable to the 
repayment of the Loans, 
(ii) all 
Lender Group Expenses that have accrued and are unpaid regardless of whether demand has been 
made therefor, 
and (iii) all fees 
or charges that 
have accrued hereunder 
or under any 
other Loan 
Document (including the Letter of Credit Fee and the Unused Line Fee) and are unpaid, (b) in the 

 

 

 

 

 

case of contingent reimbursement obligations 
with respect to Letters 
of Credit, providing Letter of 
Credit Collateralization, (c) 
in the case 
of obligations with 
respect to Bank 
Products (other than 
Hedge Obligations), providing 
Bank Product Collateralization, 
(d) the receipt 
by Agent of 
cash 
collateral in 
order to 
secure any 
other contingent 
Obligations for 
which a 
claim or 
demand for 
payment has been made on or 
prior to such time or in 
respect of matters or circumstances known 
to Agent or a Lender at such time that are reasonably expected to result in any loss, cost, damage, 
or expense (including 
attorneys' fees and 
legal expenses), such 
cash collateral to be 
in such amount 
as Agent 
reasonably determines 
is appropriate 
to secure 
such contingent 
Obligations, (e) 
the 
payment or repayment in full 
in immediately available funds of all 
other outstanding Obligations 
(including the 
payment of 
any termination 
amount then 
applicable (or 
which would 
or could 
become applicable as a result 
of the repayment of 
the other Obligations) under Hedge 
Agreements 
provided by Hedge 
Providers) other 
than (i) 
unasserted contingent 
indemnification Obligations, 
(ii) any Bank Product Obligations 
(other than Hedge Obligations) 
that, at such time, 
are allowed 
by the applicable 
Bank Product Provider to 
remain outstanding without being 
required to be repaid 
or cash 
collateralized, and 
(iii) any Hedge 
Obligations that, 
at such 
time, are 
allowed by 
the 
applicable Hedge Provider to remain 
outstanding without being required 
to be repaid, and (f) 
the 
termination of all of 
the Commitments of 
the Lenders. 
Any reference herein to 
any Person shall 
be construed 
to include 
such Person's 
successors and 
assigns. 
Any requirement 
of a 
writing 
contained herein or in 
any other Loan Document 
shall be satisfied by 
the transmission of a 
Record. 
1.5.
 
Time References
. 
Unless the 
context of 
this Agreement 
or any 
other Loan 
Document clearly requires otherwise, 
all references to 
time of day refer 
to Central standard time 
or Central daylight saving time, as in effect 
in Chicago, Illinois on such day. 
For purposes of the 
computation of a 
period of time 
from a specified 
date to a 
later specified date, 
unless otherwise 
expressly provided, the word 
"from" means "from and 
including" and the words 
"to" and "until" 
each means 
"to and 
including"; provided, 
that with 
respect to 
a computation 
of fees 
or interest 
payable to Agent or any Lender, such period shall in any event consist of at least one full day. 
1.6.
 
Schedules and 
Exhibits
. 
All of 
the schedules 
and exhibits 
attached to 
this 
Agreement shall be deemed incorporated herein by reference. 
1.7.
 
Divisions
. 
For all purposes under 
the Loan Documents, in connection 
with any 
division or 
plan of 
division under 
Delaware law 
(or any 
comparable event 
under a 
different 
jurisdiction's laws): (a) if any asset, 
right, obligation or liability of any Person 
becomes the asset, 
right, obligation or liability of a different Person, then it shall be deemed to have been transferred 
from the original Person 
to the subsequent Person, 
and (b) if any 
new Person comes into 
existence, 
such new Person shall 
be deemed to have 
been organized on 
the first date of 
its existence by the 
holders of its Equity Interests at such time. 
1.8.
 
Exchange  Rates; 
Currency  Equivalents; 
Applicable  Currency
. 
For 
purposes of this 
Agreement and the 
other Loan Documents, the 
Dollar Equivalent of 
the Revolving 
Loans, Letters 
of Credit, 
other Obligations 
and other 
references to 
amounts denominated 
in a 
currency  other  than  US 
Dollars  shall  be  determined 
in  accordance  with  the 
terms  of  this 
Agreement. 
Such US Dollar 
Equivalent shall become 
effective as of 
such Revaluation Date 
for 
such Revolving 
Loans, Letters 
of Credit 
and other 
Obligations and 
shall be 
the US 
Dollar 
Equivalent employed in converting any 
amounts between the applicable currencies 
until the next 
Revaluation Date 
to occur 
for such 
Revolving Loans, 
Letters of 
Credit and 
other Obligations. 

 

 

 

 

 

 

Except as 
otherwise expressly 
provided herein 
or in 
the applicable 
other Loan 
Document, the 
applicable amount of any currency for purposes of this Agreement 
and the other Loan Documents 
(including all 
calculations in 
connection with 
the covenants, 
including the 
financial covenants) 
shall be the US Dollar Equivalent thereof, and 
for the purpose of such calculations, 
comparisons, 
measurements or determinations, amounts denominated in 
currencies other than US Dollars shall 
be converted into the 
US Dollar Equivalent of 
such amount on the 
date of calculation, comparison, 
measurement or 
determination. 
Notwithstanding the 
foregoing, for 
the purposes 
of financial 
statements  and  any  components 
of  the  financial  covenant 
contained  in  Section  7) 
derived 
therefrom, in 
each case 
prepared by 
Borrowers, the 
US Dollar 
Equivalent of 
each amount 
in a 
currency other than US Dollars shall be determined in accordance with GAAP. 
1.9.
 
Quebec Interpretation
. 
For all purposes 
of any 
assets, liabilities 
or entities 
located in 
the Province 
of Quebec 
and for 
all purposes 
pursuant to 
which the 
interpretation or 
construction of this Agreement may be subject to the laws 
of the Province of Quebec or a court or 
tribunal exercising jurisdiction 
in the 
Province of 
Quebec, (a) 
"personal property" 
shall include 
"movable  property", 
(b) "real  property" 
shall  include 
"immovable  property", 
(c) "tangible 
property" shall include 
"corporeal property", (d) 
"intangible property" shall 
include "incorporeal 
property", (e) "security interest", "mortgage" 
and "lien" shall include 
a "hypothec", "prior claim" 
and a "resolutory 
clause", (f) all 
references to filing, 
registering or recording 
under the Code 
or 
PPSA shall include publication under the Civil Code of Quebec, (g) all references to 
"perfection" 
of or "perfected" liens 
or security interest shall 
include a reference to 
an "opposable" or "set 
up" 
lien or security interest as against third parties, (h) any "right of offset", "right of setoff' or similar 
expression shall 
include a "right 
of compensation", 
(i) "goods" shall 
include corporeal movable 
property" other than 
chattel paper, 
documents of 
title, instruments, 
money and securities, 
(j) an 
"agent" shall 
include a 
"mandatary", (k) 
"construction liens" 
shall include 
"legal hypothecs", 
(l) "joint and several" shall include 
solidary, (m) "gross negligence or willful misconduct" shall 
be 
deemed to be "intentional or 
gross fault", (n) "beneficial ownership" shall 
include "ownership on 
behalf of 
another as 
mandatary", (o) 
"easement" shall 
include "servitude", 
(p) "priority" shall 
include "prior 
claim", (q) 
"survey" shall 
include "certificate 
of location 
and plan", 
and (r) 
"fee 
simple title" shall include "absolute ownership." 

2.
 
LOANS AND TERMS OF PAYMENT. 
2.1.
 
Revolving Loans
. 
(a)
 
Subject to the terms and conditions of this Agreement, and during the term 
of this Agreement, each 
Revolving Lender agrees (severally, 
not jointly or jointly 
and severally) 
to make revolving 
loans in 
Dollars ("Revolving Loans") 
to Borrowers in 
an amount 
at any one 
time outstanding not to exceed 
the lesser of
: 
(i)
 
such Lender's Revolver Commitment, or 
(ii)
 
such Lender's Pro Rata Share of an amount equal to the lesser of: 
(A)
 
the amount 
equal to 
(1) the Maximum 
Revolver Amount, 
less
 
(2) the sum of 
(y) the Letter of 
Credit Usage 
at such time, 
plus
 
(z) the principal amount 
of 
Swing Loans outstanding at such time, and 

 

 

 

 

 

 

 

 

(B)
 
the amount equal to 
(1) the Borrowing Base as of 
such date 
(based upon 
the most 
recent Borrowing 
Base Certificate 
delivered by 
Borrowers to 
Agent, as 
adjusted for Reserves established by Agent in accordance with Section 2.1(c)), 
less
 
(2) the sum of 
(x) the  Letter of 
Credit Usage 
at such 
time, 
plus
 
(y) the principal 
amount of 
Swing  Loans 
outstanding at such time. 
(b)
 
Amounts borrowed pursuant to this Section 2.1 may 
be repaid and, subject 
to the 
terms and 
conditions of 
this Agreement, 
reborrowed at 
any time 
during the 
term of 
this 
Agreement. 
The outstanding 
principal amount 
of the 
Revolving Loans, 
together with 
interest 
accrued and 
unpaid thereon, 
shall constitute 
Obligations and 
shall be 
due and 
payable on 
the 
Maturity Date or, if earlier, on the date on 
which they otherwise become 
due and payable pursuant 
to the terms of this Agreement. 
(c)
 
Anything to 
the contrary 
in this 
Section 2.1 
notwithstanding, Agent shall 
have the right 
(but not the 
obligation) at any 
time, in the 
exercise of its 
Permitted Discretion, to 
establish and 
increase or 
decrease Reserves 
and against 
the Borrowing 
Base or 
the Maximum 
Revolver Amount. 
The amount 
of any 
Reserve established 
by Agent, 
and any 
changes to 
the 
eligibility criteria 
set forth 
in the 
definitions of 
Eligible Accounts, 
Eligible Inventory, 
Eligible 
M&E, and Eligible 
Real Property shall 
have a reasonable 
relationship to the event, 
condition, other 
circumstance, or 
fact that 
is the 
basis for 
such reserve 
or change 
in eligibility 
and shall 
not be 
duplicative of any other reserve established and currently maintained or eligibility criteria. 

2.2.
 
Term 
Loans
. 

(a)
 
Subject to the 
terms and conditions 
of this Agreement, 
(i) on the 
Closing 
Date each Lender with a 
M/E Term Loan Commitment agrees (severally, not jointly or jointly and 
severally) to 
make term 
loans (collectively, 
the "Initial 
M/E Term 
Loan") to 
Borrowers in 
an 
amount equal 
to the 
lesser of 
(a) such L 
ender's M/E 
Term Loan 
Commitment, and 
(b) such 
Lender's Pro 
Rata Share 
of the 
lesser of 
(x) the M/E 
Term Loan 
Amount and 
(y) the M&E 
Borrowing Base and 
(ii) after the 
Closing Date and 
prior to April 
27, 2022 and 
subject to the 
receipt 
by Agent of an Acceptable Appraisal with respect to the 
Eligible M&E after the Closing Date and 
within three months 
prior to the 
date of the funding 
of the Additional 
M/E Term Loan, each Lender 
with an 
M/E Term 
Loan Commitment 
agrees (severally, 
not jointly 
or jointly 
and severally) 
to 
make a single additional term loan (the "Additional M/E Term Loan") to Borrowers in an amount 
equal to the 
lesser of (a) 
such Lender's M/E Term Loan 
Commitment less the outstanding 
principal 
amount of the Initial M/E Term 
Loan held by such Lender, 
and (b) such Lender's Pro Rata 
Share 
of the 
lesser of 
(x) the Additional 
M/E Term 
Loan Amount 
and (y) 
the M&E 
Borrowing Base 
(based upon the then 
most recently received Acceptable 
Appraisal of Eligible M/E) 
less the then 
outstanding principal balance of the Initial M/E Term Loan. 
The principal of the M/E Term Loan 
shall be repaid on the following dates and in the following amounts: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Date 
Installment Amount 
(prior to funding of the 
Additional M/E Term 
Loan) 
Installment Amount 
(after the funding of 
the Additional M/E 
Term Loan) 
November 30, 2020 and 
the last day of each 
month through and 
including November 30, 
2024 
$86,785.71 
1/84th of the principal 
amount of the M/E 
Term Loan 
immediately after the 
funding of the 
Additional M/E Term 
Loan 
 
The outstanding unpaid 
principal balance and 
all accrued and 
unpaid interest 
on the M/E 
Term 
Loan shall be due 
and payable on 
the earlier of (x) 
the Maturity Date, 
and (y) the date 
on which 
the M/E Term Loan otherwise becomes due and payable pursuant to 
the terms of this Agreement. 

Any principal 
amount of 
the M/E 
Term Loan 
that is 
repaid or 
prepaid may 
not be 
reborrowed 
except as expressly provided by clause (ii) 
above with respect to the Additional 
M/E Term 
Loan. 

All principal of, 
interest on, 
and other amounts 
payable in 
respect of 
the M/E 
Term Loan 
shall 
constitute Obligations hereunder. 
(b)
 
Subject to the terms and conditions of this Agreement, on the Closing Date 
each Lender 
with a 
R/E Term 
Loan Commitment 
agrees (severally, 
not jointly 
or jointly 
and 
severally) to 
make term 
loans (collectively, 
the "R/E 
Term Loan") 
to Borrowers 
in an 
amount 
equal to the 
lesser of (a) 
such Lender's R/E 
Term Loan 
Commitment, and (b) 
such Lender's Pro 
Rata Share of the lesser 
of (i) the R/E Term Loan Amount and (ii) the R/E Borrowing 
Base (based 
upon the R/E Borrowing Base Certificate 
delivered by Borrowers to Agent 
on the Closing Date). 

The principal of 
the R/E Term 
Loan shall be 
repaid on the 
following dates and 
in the following 
amounts: 
Date 
Installment Amount 
November 30, 2020 and the last 
day of each month through and 
including November 30, 2024 
$113,095.24 
 
The outstanding 
unpaid principal 
balance and all 
accrued and unpaid 
interest on 
the R/E 
Term 
Loan shall be 
due and payable 
on the earlier 
of (i) the Maturity 
Date, and (ii) 
the date on 
which 
the R/E Term 
Loan otherwise becomes due and payable pursuant 
to the terms of this Agreement. 

Any principal amount of the R/E Term Loan that is repaid or prepaid may not be 
reborrowed. 
All 
principal of, 
interest on, 
and other 
amounts payable 
in respect 
of the 
R/E Term 
Loan shall 
constitute Obligations hereunder. 

 

 

 

 

 

 

 

 

 

 

 

2.3.
 
Borrowing Procedures and Settlements
. 
(a)
 
Procedure for Borrowing Revolving Loans and Term 
Loans
. 

(i)
 
Each Borrowing shall 
be made by 
a written request 
by an Authorized 
Person delivered to Agent (which may be delivered through Agent's electronic platform or portal) 
and received by 
Agent no later 
than 1:00 p.m. 
(i) on the Business 
Day that is the 
requested Funding 
Date in the case of a request for a 
Swing Loan, (ii) on the Business Day that 
is one Business Day 
prior to the requested Funding Date in 
the case of a request for a Base 
Rate Loan, and (iii) on the 
Business Day that 
is three Business 
Days prior to 
the requested Funding 
Date in the 
case of all 
other requests, specifying (A) the amount of such Borrowing, 
and (B) the requested Funding Date 
(which shall be a 
Business Day); provided, that 
Agent may, 
in its sole 
discretion, elect to accept 
as timely 
requests that 
are received 
later than 
1:00 p.m. 
on the 
applicable Business 
Day. 
All 
Borrowing requests which are not 
made on-line via Agent's electronic 
platform or portal shall be 
subject to (and 
unless Agent elects 
otherwise in the 
exercise of its sole 
discretion, such Borrowings 
shall not be made until the 
completion of) Agent's authentication process (with 
results satisfactory 
to Agent) prior to the funding of any such requested Revolving Loan. 
(ii)
 
The Additional M/E Term 
Loan shall be made by 
a written request 
by an Authorized Person delivered to Agent and received by Agent no later than 3:00 
p.m. on the 
Business Day that 
is 10 days 
prior to the 
requested Funding Date, 
specifying (A) the amount 
of 
the Additional M/E 
Term Loan, 
and (B) the requested 
Funding Date (which 
shall be a 
Business 
Day). 

(b)
 
Making of Swing Loans
. 
In the case of a Revolving 
Loan and so long as 
any of (i) 
the aggregate amount 
of Swing Loans 
made since the 
last Settlement 
Date, 
minus
 
all 
payments or other amounts 
applied to Swing Loans 
since the last Settlement 
Date, 
plus
 
the amount 
of the 
requested Swing 
Loan does 
not exceed 
$2,500,000, or 
(ii) Swing Lender, 
in its 
sole 
discretion, agrees to make a Swing Loan 
notwithstanding the foregoing limitation, Swing Lender 
shall make a Revolving 
Loan (any such Revolving 
Loan made by Swing 
Lender pursuant to this 
Section 2.3(b) being referred to 
as a "Swing Loan" and 
all such Revolving Loans being 
referred to 
as "Swing Loans") available to Borrowers on the 
Funding Date applicable thereto by transferring 
immediately available funds in 
the amount of such 
Borrowing to the Designated 
Account. 
Each 
Swing Loan shall 
be deemed to be 
a Revolving Loan 
hereunder and shall 
be subject to all 
the terms 
and conditions (including Section 
3) applicable to 
other Revolving Loans, 
except that all payments 
(including interest) 
on any 
Swing Loan 
shall be 
payable to 
Swing Lender 
solely for 
its own 
account. 
Subject to the 
provisions of Section 
2.3(d)(ii), Swing Lender 
shall not make 
and shall 
not be obligated 
to make any 
Swing Loan if 
Swing Lender has 
actual knowledge that 
(i) one or 
more of 
the applicable 
conditions precedent 
set forth 
in Section 
3 will 
not be 
satisfied on 
the 
requested Funding 
Date for 
the applicable 
Borrowing, or 
(ii) the requested 
Borrowing would 
exceed the Availability 
on such Funding 
Date. 
Swing Lender shall 
not otherwise be 
required to 
determine whether the 
applicable conditions precedent 
set forth in 
Section 3 have 
been satisfied 
on the Funding Date applicable thereto prior to 
making any Swing Loan. 
The Swing Loans shall 
be secured by Agent's Liens, constitute Revolving Loans and Obligations, and bear interest 
at the 
rate applicable from time to time to Revolving Loans that are Base Rate Loans. 

 

 

 

 

 

(c)
 
Making of Revolving Loans
. 
(i)
 
In the 
event that 
Swing Lender 
is not 
obligated to 
make a 
Swing 
Loan, then 
after receipt 
of a 
request for 
a Borrowing 
pursuant to 
Section 2.3(a)(i), 
Agent shall 
notify the Lenders by 
telecopy, telephone, 
email, or other electronic 
form of transmission, of 
the 
requested Borrowing; such notification to be 
sent on the Business Day that is 
(A) in the case of a 
Base Rate Loan, at least one Business Day prior to the requested Funding Date, or (B) in the case 
of a 
LIBOR Rate 
Loan, prior 
to 1:00 
p.m. at 
least three 
Business Days 
prior to 
the requested 
Funding Date. 
If Agent has notified 
the Lenders of 
a requested Borrowing on 
the Business Day 
that is one 
Business Day prior 
to the Funding 
Date, then each 
Lender shall make 
the amount of 
such Lender's 
Pro Rata 
Share of 
the requested 
Borrowing available 
to Agent 
in immediately 
available funds, 
to Agent's 
Account, not 
later than 
12:00 p.m. 
on the 
Business Day 
that is 
the 
requested Funding Date. 
After Agent's receipt of the proceeds of such Revolving Loans from the 
Lenders, Agent shall make the proceeds thereof available to Borrowers on 
the applicable Funding 
Date by transferring immediately available funds equal to such proceeds received by Agent to the 
Designated Account; provided, that subject to the provisions 
of Section 2.3(d)(ii), no Lender shall 
have an obligation 
to make any 
Revolving Loan, if 
(1) one or more 
of the applicable 
conditions 
precedent set 
forth in 
Section 3 
will not 
be satisfied 
on the 
requested Funding 
Date for 
the 
applicable Borrowing 
unless such 
condition has 
been waived, 
or (2) 
the requested 
Borrowing 
would exceed the Availability on such Funding Date. 
(ii)
 
Unless Agent receives notice 
from a Lender prior 
to 11:30 a.m. 
on 
the Business Day that is the 
requested Funding Date relative to a 
requested Borrowing as to which 
Agent has notified the Lenders of 
a requested Borrowing that such Lender 
will not make available 
as and when required 
hereunder to Agent for 
the account of Borrowers 
the amount of that 
Lender's 
Pro Rata Share of 
the Borrowing, Agent may 
assume that each Lender 
has made or will 
make such 
amount available to 
Agent in immediately 
available funds on 
the Funding Date 
and Agent may 
(but shall not 
be so required), 
in reliance upon 
such assumption, make 
available to Borrowers 
a 
corresponding amount. 
If, on the requested Funding Date, any Lender shall not have remitted the 
full amount that 
it is required 
to make available 
to Agent in 
immediately available funds 
and if 
Agent has made 
available to Borrowers 
such amount on 
the requested Funding 
Date, then such 
Lender shall 
make the 
amount of 
such Lender's 
Pro Rata 
Share of 
the requested 
Borrowing 
available to Agent in 
immediately available funds, to Agent's 
Account, no later than 
12:00 p.m. on 
the Business Day that 
is the first 
Business Day after 
the requested Funding Date 
(in which case, 
the interest accrued on such Lender's portion of such Borrowing for the Funding Date shall be for 
Agent's separate account). 
If any Lender shall not remit 
the full amount that it is required 
to make 
available to Agent in 
immediately available funds as 
and when required hereby 
and if Agent has 
made available 
to Borrowers 
such amount, 
then that 
Lender shall 
be obligated 
to immediately 
remit such amount to 
Agent, together with interest 
at the Defaulting Lender 
Rate for each day 
until 
the date on 
which such amount 
is so remitted. 
A notice submitted 
by Agent to 
any Lender with 
respect to amounts owing under 
this Section 2.3(c)(ii) shall 
be conclusive, absent manifest 
error. 

If the amount that a Lender is required 
to remit is made available to Agent, 
then such payment to 
Agent shall constitute such Lender's 
Revolving Loan for all 
purposes of this Agreement. 
If such 
amount is not 
made available to 
Agent on the 
Business Day following 
the Funding Date, 
Agent 
will  notify  Administrative  Borrower  of  such 
failure  to  fund  and,  upon 
demand  by  Agent, 
Borrowers shall pay such amount to Agent for 
Agent's account, together with interest thereon for 

 

 

 

 

 

 

 

 

each day elapsed since 
the date of such 
Borrowing, at a rate 
per annum
 
equal to the 
interest rate 
applicable at the time to the Revolving Loans composing such Borrowing. 
(d)
 
Protective Advances and Optional Overadvances
. 
(i)
 
Any  contrary  provision 
of  this  Agreement 
or  any  other 
Loan 
Document notwithstanding (but subject to 
Section 2.3(d)(iv)), at any 
time (A) after the occurrence 
and during 
the continuance 
of a 
Default or 
an Event 
of Default, 
or (B) 
that any 
of the 
other 
applicable conditions precedent set forth in Section 3 are not 
satisfied, Agent hereby is authorized 
by Borrowers and 
the Lenders, from 
time to time, 
in Agent's sole 
discretion, to make 
Revolving 
Loans to, or for 
the benefit of, Borrowers, 
on behalf of the 
Revolving Lenders, that Agent, 
in its 
Permitted Discretion, deems necessary 
or desirable (1) to preserve or 
protect the Collateral, or any 
portion thereof, or 
(2) to enhance the 
likelihood of repayment 
of the Obligations 
(other than the 
Bank Product 
Obligations) (the 
Revolving Loans 
described in 
this Section 
2.3(d)(i) shall 
be 
referred to as "Protective Advances"). 

(ii)
 
Any  contrary  provision 
of  this  Agreement 
or  any  other 
Loan 
Document notwithstanding, the Lenders 
hereby authorize Agent or 
Swing Lender, as 
applicable, 
and either 
Agent or 
Swing Lender, 
as applicable, 
may, but 
is not 
obligated to, 
knowingly and 
intentionally,  continue 
to  make 
Revolving  Loans 
(including  Swing 
Loans)  to 
Borrowers 
notwithstanding that 
an Overadvance 
exists or 
would be 
created thereby, 
so long 
as (A) 
after 
giving effect 
to such 
Revolving Loans, 
the outstanding 
Revolver Usage 
does not 
exceed the 
Borrowing Base by more 
than 10% of the 
Borrowing Base, and (B) 
subject to Section 
2.3(d)(iv) 
below, after 
giving effect 
to such Revolving 
Loans, the outstanding 
Revolver Usage (except 
for 
and excluding amounts charged to 
the Loan Account for 
interest, fees, or Lender 
Group Expenses) 
does not exceed 
the Maximum Revolver 
Amount. 
In the event Agent 
obtains actual knowledge 
that the Revolver 
Usage exceeds the 
amounts permitted by 
this Section 2.3(d), 
regardless of the 
amount of, or reason 
for, such excess, 
Agent shall notify the 
Lenders as soon as 
practicable (and 
prior to 
making any 
(or any 
additional) intentional 
Overadvances (except 
for and 
excluding 
amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) unless Agent 
determines that prior notice would result in imminent harm to the Collateral or its value, in which 
case  Agent  may 
make  such 
Overadvances  and  provide 
notice  as  promptly 
as  practicable 
thereafter), and the 
Lenders with Revolver 
Commitments thereupon 
shall, together with 
Agent, 
jointly determine the terms of 
arrangements that shall be implemented 
with Borrowers intended to 
reduce, within 
a reasonable 
time, the 
outstanding principal 
amount of 
the Revolving 
Loans to 
Borrowers to an 
amount permitted by 
the preceding sentence. 
In such circumstances, 
if any Lender 
with a 
Revolver Commitment 
objects to 
the proposed 
terms of 
reduction or 
repayment of 
any 
Overadvance, the terms of reduction 
or repayment thereof shall be implemented 
according to the 
determination of the Required Lenders. 
The foregoing provisions are meant for the benefit of the 
Lenders and 
Agent and 
are not 
meant for 
the benefit 
of Borrowers, 
which shall 
continue to 
be 
bound by the provisions of Section 2.4(e)(1). 

(iii)
 
Each   Protective   Advance   and 
each   Overadvance   (each,   an 
"Extraordinary Advance") 
shall be 
deemed to 
be a 
Revolving Loan 
hereunder, except 
that no 
Extraordinary Advance shall 
be eligible to 
be a LIBOR 
Rate Loan. 
Prior to 
Settlement of 
any 
Extraordinary Advance, 
all payments 
with respect 
thereto, including 
interest thereon, 
shall be 
payable to Agent solely 
for its own 
account. 
Each Revolving Lender 
shall be obligated 
to settle 

 

 

 

 

 

 

 

 

 

with Agent as provided in Section 2.3(e) (or Section 2.3(g), as applicable) for the amount 
of such 
Lender's Pro 
Rata Share 
of any 
Extraordinary Advance. 
The Extraordinary 
Advances shall 
be 
repayable on 
demand, secured 
by Agent's 
Liens, constitute 
Obligations hereunder, 
and bear 
interest at the rate applicable 
from time to time to 
Revolving Loans that are Base 
Rate Loans. 
The 
provisions of 
this Section 
2.3(d) are 
for the 
exclusive benefit 
of Agent, 
Swing Lender, 
and the 
Lenders and are not intended to benefit Borrowers (or any other Loan Party) in any way. 
(iv)
 
Notwithstanding anything contained in this Agreement or any other 
Loan Document 
to the 
contrary, no 
Extraordinary Advance 
may be 
made by 
Agent if 
such 
Extraordinary Advance 
would cause 
the aggregate 
Revolver Usage 
to exceed 
the Maximum 
Revolver Amount or any Lender's Pro Rata Share of the Revolver Usage to 
exceed such Lender's 
Revolver Commitments; provided that Agent may make Extraordinary Advances in excess of the 
foregoing limitations so 
long as such Extraordinary 
Advances that cause 
the aggregate Revolver 
Usage to exceed 
the Maximum Revolver 
Amount or a 
Lender's Pro Rata 
Share of the 
Revolver 
Usage to exceed such Lender's 
Revolver Commitments are for Agent's 
sole and separate account 
and not for the account 
of any Lender. 
No Lender shall have an 
obligation to settle with Agent 
for 
such Extraordinary Advances 
that cause the 
aggregate Revolver Usage 
to exceed the 
Maximum 
Revolver Amount or 
a Lender's Pro 
Rata Share of 
the Revolver Usage 
to exceed such 
Lender's 
Revolver Commitments as provided in Section 2.3(e) (or Section 2.3(g), as applicable). 
(e)
 
Settlement
. 
It is agreed that 
each Lender's funded portion 
of the Revolving 
Loans is 
intended by 
the Lenders 
to equal, 
at all 
times, such 
Lender's Pro 
Rata Share 
of the 
outstanding Revolving Loans. 
Such agreement notwithstanding, 
Agent, Swing Lender, 
and the 
other Lenders agree 
(which agreement shall 
not be for 
the benefit of 
Borrowers) that in 
order to 
facilitate the administration of 
this Agreement and the 
other Loan Documents, settlement 
among 
the Lenders as to 
the Revolving Loans (including 
Swing Loans and Extraordinary 
Advances) shall 
take place on a periodic basis in accordance with the following provisions: 
(i)
 
Agent shall request settlement ("Settlement") with the Lenders on a 
weekly basis, or 
on a more frequent 
basis if so 
determined by Agent in 
its sole discretion 
(1) on 
behalf of Swing Lender, 
with respect to the 
outstanding Swing Loans, (2) 
for itself, with 
respect 
to the outstanding Extraordinary 
Advances, and (3) with 
respect to any Loan 
Party's or any 
of their 
Subsidiaries' payments or other 
amounts received, as to 
each by notifying the 
Lenders by telecopy, 
telephone, or other similar form 
of transmission, of such requested 
Settlement, no later than 4:00 
p.m. on the Business Day immediately 
prior to the date of 
such requested Settlement (the date of 
such requested Settlement 
being the "Settlement 
Date"). 
Such notice of 
a Settlement Date 
shall 
include a 
summary statement 
of the 
amount of 
outstanding Revolving 
Loans (including 
Swing 
Loans and Extraordinary Advances) for the period since the prior Settlement Date. 
Subject to the 
terms and 
conditions contained 
herein (including 
Section 2.3(g)): 
(y) if 
the amount 
of the 
Revolving Loans (including Swing Loans and Extraordinary Advances) made 
by a Lender that is 
not a Defaulting Lender exceeds such Lender's Pro Rata Share of the Revolving Loans (including 
Swing Loans and Extraordinary Advances) 
as of a Settlement Date, 
then Agent shall, by no 
later 
than 2:00 
p.m. on 
the Settlement 
Date, transfer 
in immediately 
available funds 
to a 
Deposit 
Account of such 
Lender (as such Lender 
may designate), an 
amount such that 
each such Lender 
shall, upon 
receipt of 
such amount, 
have as 
of the 
Settlement Date, 
its Pro 
Rata Share 
of the 
Revolving Loans (including Swing Loans and 
Extraordinary Advances), and (z) if 
the amount of 
the Revolving Loans (including 
Swing Loans and Extraordinary 
Advances) made by a 
Lender is 

 

 

 

less than 
such Lender's 
Pro Rata 
Share of 
the Revolving 
Loans (including 
Swing Loans 
and 
Extraordinary Advances) as of a Settlement Date, such Lender 
shall no later than 2:00 p.m. on the 
Settlement Date transfer in immediately available funds 
to Agent's Account, an amount such 
that 
each such Lender shall, upon transfer of such 
amount, have as of the Settlement Date, its Pro 
Rata 
Share of 
the Revolving 
Loans (including 
Swing Loans 
and Extraordinary 
Advances). 
Such 
amounts made available to Agent under clause (z) of the immediately preceding sentence shall be 
applied against 
the amounts 
of the 
applicable Swing 
Loans or 
Extraordinary Advances 
and, 
together with 
the portion 
of such 
Swing Loans 
or Extraordinary 
Advances representing 
Swing 
Lender's Pro Rata 
Share thereof, shall 
constitute Revolving Loans 
of such Lenders. 
If any such 
amount is not made available to 
Agent by any Lender on the Settlement 
Date applicable thereto to 
the extent 
required by 
the terms 
hereof, Agent 
shall be 
entitled to 
recover for 
its account 
such 
amount on demand from 
such Lender together with 
interest thereon at the 
Defaulting Lender Rate. 
(ii)
 
In determining whether a 
Lender's balance of the 
Revolving Loans 
(including Swing Loans and 
Extraordinary Advances) is 
less than, equal 
to, or greater 
than such 
Lender's Pro 
Rata Share 
of the 
Revolving Loans 
(including Swing 
Loans and 
Extraordinary 
Advances) as of a 
Settlement Date, Agent shall, 
as part of the 
relevant Settlement, apply to 
such 
balance the portion 
of payments actually 
received in good 
funds by Agent 
with respect to 
principal, 
interest, fees 
payable by 
Borrowers and 
allocable to 
the Lenders 
hereunder, and 
proceeds of 
Collateral. 
(iii)
 
Between  Settlement  Dates, 
Agent,  to  the 
extent  Extraordinary 
Advances or Swing Loans 
are outstanding, may pay 
over to Agent or 
Swing Lender, as applicable, 
any payments 
or other 
amounts received 
by Agent, 
that in 
accordance with 
the terms 
of this 
Agreement would 
be applied 
to the 
reduction of 
the Revolving 
Loans, for 
application to 
the 
Extraordinary Advances 
or Swing 
Loans. 
Between Settlement 
Dates, Agent, 
to the 
extent no 
Extraordinary Advances 
or Swing 
Loans are 
outstanding, may 
pay over 
to Swing 
Lender any 
payments or other 
amounts received by 
Agent, that in accordance 
with the terms of 
this Agreement 
would be applied to 
the reduction of the 
Revolving Loans, for application 
to Swing Lender's Pro 
Rata Share of the Revolving Loans. 
If, as of any Settlement Date, 
payments or other amounts of 
the Loan Parties 
or their 
Subsidiaries received since 
the then immediately 
preceding Settlement 
Date have been 
applied to Swing 
Lender's Pro Rata 
Share of the 
Revolving Loans other 
than to 
Swing Loans, as 
provided for in 
the previous sentence, Swing 
Lender shall pay to 
Agent for the 
accounts of the 
Lenders, and Agent 
shall pay to 
the Lenders (other 
than a 
Defaulting Lender if 
Agent  has  implemented  the  provisions  of Section 
2.3(g)),  to  be  applied  to  the  outstanding 
Revolving Loans of 
such Lenders, an 
amount such that 
each such Lender 
shall, upon receipt 
of 
such amount, have, as 
of such Settlement Date, 
its Pro Rata Share 
of the Revolving Loans. 
During 
the period 
between Settlement 
Dates, Swing 
Lender with 
respect to 
Swing Loans, 
Agent with 
respect to Extraordinary 
Advances, and each 
Lender with respect 
to the Revolving 
Loans other 
than Swing Loans and 
Extraordinary Advances, shall be 
entitled to interest at 
the applicable rate 
or rates payable under this 
Agreement on the daily amount 
of funds employed by Swing 
Lender, 
Agent, or the Lenders, as applicable. 
(iv)
 
Anything in this 
Section 2.3(e) to 
the contrary notwithstanding, 
in 
the event that 
a Lender is 
a Defaulting Lender, 
Agent shall be 
entitled to refrain 
from remitting 
settlement amounts to 
the Defaulting Lender and, 
instead, shall be entitled 
to elect to implement 
the provisions set forth in Section 2.3(g). 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(f)
 
Notation
. 
Consistent with Section 13.1(h), Agent, as 
a non-fiduciary agent 
for Borrowers, shall 
maintain a register 
showing the principal 
amount and stated 
interest of the 
Revolving Loans (and portion of the Term 
Loan, as applicable), owing to each Lender, 
including 
the Swing Loans 
owing to Swing 
Lender, and Extraordinary 
Advances owing to 
Agent, and the 
interests therein of each 
Lender, from time 
to time and such 
register shall, absent manifest 
error, 
conclusively be presumed to be correct and accurate. 
(g)
 
Defaulting Lenders
. 
(i)
 
Notwithstanding the 
provisions of 
Section 2.4(b)(iii), 
Agent shall 
not be obligated to transfer to a Defaulting Lender any 
payments made by Borrowers to Agent for 
the Defaulting 
Lender's benefit 
or any 
proceeds of 
Collateral that 
would otherwise 
be remitted 
hereunder to the Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender, 
Agent shall 
transfer any 
such payments 
(A) first, 
to Agent 
to the 
extent of 
any Extraordinary 
Advances that were made by Agent and that were 
required to be, but were not, paid by Defaulting 
Lender, (B) second, to Swing 
Lender to the extent of any Swing Loans 
that were made by Swing 
Lender and that 
were required 
to be, 
but were 
not, paid 
by the 
Defaulting Lender, 
(C) third, 
to 
Issuing Bank, to the extent 
of the portion of a 
Letter of Credit Disbursement that 
was required to 
be, but was not, paid by 
the Defaulting Lender, (D) fourth, to each Non-Defaulting Lender ratably 
in accordance with their Commitments 
(but, in each case, only 
to the extent that 
such Defaulting 
Lender's portion of a 
Revolving Loan (or other 
funding obligation) was funded 
by such other Non-
Defaulting Lender), 
(E) fifth, 
in Agent's 
sole discretion, 
to a 
suspense account 
maintained by 
Agent, the 
proceeds of 
which shall 
be retained 
by Agent 
and ma 
y 
be made 
available to 
be re-
advanced to 
or for 
the benefit 
of Borrowers 
(upon the 
request of 
Borrowers and 
subject to 
the 
conditions set forth in Section 
3.2) as if such Defaulting 
Lender had made its portion 
of Revolving 
Loans (or other funding obligations) hereunder, and (F) sixth, from and 
after the date on which all 
other Obligations have been paid in full, to such Defaulting Lender 
in accordance with tier (L) of 
Section 2.4(b)(iii). 
Subject to 
the foregoing, 
Agent may 
hold and, 
in its 
discretion, re-lend 
to 
Borrowers for the 
account of such 
Defaulting Lender the 
amount of all 
such payments received 
and retained by 
Agent for the 
account of such 
Defaulting Lender. 
Solely for the 
purposes of voting 
or consenting to 
matters with respect to 
the Loan Documents 
(including the calculation 
of Pro Rata 
Share in connection 
therewith) and for 
the purpose of 
calculating the fee 
payable under Section 
2.10(b),  such  Defaulting  Lender  shall  be  deemed  not  to 
be  a  "Lender"  and  such  Lender's 
Commitment shall be deemed to be zero; 
provided, that the foregoing shall not apply 
to any of the 
matters governed by 
Section 14.1(a)(i) through 
(iii). 
The provisions of 
this Section 2.3(g) 
shall 
remain effective with respect 
to such Defaulting Lender until 
the earlier of (y) 
the date on which 
all of 
the Non-Defaulting 
Lenders, Agent, 
Issuing Bank, 
and Borrowers 
shall have 
waived, in 
writing, the application of this Section 
2.3(g) to such Defaulting Lender, 
or (z) the date on which 
such Defaulting Lender 
makes payment of 
all amounts 
that it 
was obligated to 
fund hereunder, 
pays to 
Agent all 
amounts owing 
by Defaulting 
Lender in 
respect of 
the amounts 
that it 
was 
obligated to fund hereunder, and, if requested by Agent, provides adequate assurance of its ability 
to perform its future obligations hereunder 
(on which earlier date, so long 
as no Event of Default 
has occurred and 
is continuing, any remaining 
cash collateral held 
by Agent pursuant 
to Section 
2.3(g)(ii) shall 
be released 
to Borrowers). 
The operation 
of this 
Section 2.3(g) 
shall not 
be 
construed to increase or otherwise affect the Commitment 
of any Lender, to relieve or 
excuse the 
performance  by  such  Defaulting  Lender  or 
any  other  Lender  of  its 
duties  and  obligations 
hereunder, or to 
relieve or excuse the 
performance by any Borrower 
of its duties 
and obligations 

 

 

 

 

 

 

 

 

hereunder to 
Agent, Issuing 
Bank, or 
to the 
Lenders other 
than such 
Defaulting Lender. 
Any 
failure by 
a Defaulting 
Lender to 
fund amounts 
that it 
was obligated 
to fund 
hereunder shall 
constitute a 
material breach 
by such 
Defaulting Lender 
of this 
Agreement and 
shall entitle 
Borrowers, at 
their option, 
upon written 
notice to 
Agent, to 
arrange for 
a substitute 
Lender to 
assume the 
Commitment of 
such Defaulting 
Lender, such 
substitute Lender 
to be 
reasonably 
acceptable to 
Agent. 
In connection 
with the 
arrangement of 
such a 
substitute Lender, 
the 
Defaulting Lender shall 
have no right 
to refuse to 
be replaced hereunder, 
and agrees to 
execute 
and deliver a 
completed form of Assignment 
and Acceptance in 
favor of the 
substitute Lender (and 
agrees that it 
shall be deemed 
to have executed 
and delivered such 
document if it 
fails to do 
so) 
subject only 
to being 
paid its 
share of 
the outstanding 
Obligations (other 
than Bank 
Product 
Obligations, but including (1) all interest, fees, and other amounts that may be due and payable in 
respect thereof, and 
(2) an assumption 
of its Pro 
Rata Share of 
its participation in 
the Letters of 
Credit); provided, that any 
such assumption of 
the Commitment of 
such Defaulting Lender shall 
not be deemed to 
constitute a waiver of 
any of the Lender 
Groups' or Borrowers' rights 
or remedies 
against any such 
Defaulting Lender arising out 
of or in relation 
to such failure to 
fund. 
In the event 
of a direct conflict 
between the priority provisions 
of this Section 2.3(g) 
and any other provision 
contained in this Agreement or 
any other Loan Document, it 
is the intention of the 
parties hereto 
that such provisions be read together and construed, to the fullest extent possible, to be in concert 
with each 
other. 
In the 
event of 
any actual, 
irreconcilable conflict 
that cannot 
be resolved 
as 
aforesaid, the terms and provisions of this Section 2.3(g) shall control and govern. 
(ii)
 
If any Swing Loan or Letter of Credit is outstanding at the time that 
a Lender becomes a Defaulting Lender then: 
(A)
 
such Defaulting Lender's 
Swing Loan Exposure 
and Letter 
of Credit 
Exposure shall 
be reallocated 
among the 
Non-Defaulting Lenders 
in accordance 
with 
their respective Pro Rata Shares but only to the extent (x) the 
sum of all Non-Defaulting Lenders' 
Pro Rata Share of 
Revolver Usage 
plus
 
such Defaulting Lender's Swing Loan 
Exposure and Letter 
of  Credit 
Exposure  does 
not  exceed 
the  total 
of  all 
Non-Defaulting  Lenders' 
Revolver 
Commitments and (y) the conditions set forth in Section 3.2 are satisfied at such time; 
(B)
 
if the reallocation 
described in clause 
(A) above cannot, 
or 
can only partially, 
be effected, Borrowers 
shall within one Business 
Day following notice by 
the 
Agent (x) first, prepay such Defaulting Lender's Swing 
Loan Exposure (after giving effect to any 
partial  reallocation  pursuant  to 
clause  (A)  above),  and 
(y)  second,  cash 
collateralize  such 
Defaulting Lender's 
Letter of 
Credit Exposure 
(after giving 
effect to 
any partial 
reallocation 
pursuant to clause (A) 
above), pursuant to a 
cash collateral agreement to 
be entered into in 
form 
and substance reasonably satisfactory to the 
Agent, for so long as such 
Letter of Credit Exposure 
is outstanding; provided, that 
Borrowers shall not be 
obligated to cash collateralize any 
Defaulting 
Lender's Letter of Credit Exposure if such Defaulting Lender is also Issuing Bank; 
(C)
 
if   Borrowers   cash   collateralize 
any   portion   of   such 
Defaulting Lender's Letter of Credit Exposure pursuant to 
this Section 2.3(g)(ii), Borrowers shall 
not be required 
to pay any 
Letter of Credit 
Fees to Agent for 
the account of 
such Defaulting Lender 
pursuant to 
Section 2.6(b) 
with respect 
to such 
cash collateralized 
portion of 
such Defaulting 
Lender's Letter 
of Credit 
Exposure during 
the period 
such Letter 
of Credit 
Exposure is 
cash 
collateralized; 

 

 

 

 

 

 

 

 

 

 

 

 

(D)
 
to the 
extent the 
Letter of 
Credit Exposure 
of the 
Non-
Defaulting Lenders is reallocated pursuant to this Section 2.3(g)(ii), then the Letter of 
Credit Fees 
payable to the Non-Defaulting Lenders pursuant to Section 2.6(b) shall be adjusted in accordance 
with such Non-Defaulting Lenders' Letter of Credit Exposure; 
(E)
 
to  the 
extent  any  Defaulting 
Lender's  Letter  of 
Credit 
Exposure is 
neither cash 
collateralized nor 
reallocated pursuant 
to this 
Section 2.3(g)(ii), 
then, 
without prejudice to any rights or remedies of Issuing Bank or 
any Lender hereunder, all Letter of 
Credit Fees 
that would 
have otherwise 
been payable 
to such 
Defaulting Lender 
under Section 
2.6(b) with respect 
to such portion 
of such Letter 
of Credit Exposure 
shall instead be 
payable to 
Issuing Bank 
until such 
portion of 
such Defaulting 
Lender's Letter 
of Credit 
Exposure is 
cash 
collateralized or reallocated; 
(F)
 
so long 
as any 
Lender is 
a Defaulting 
Lender, the 
Swing 
Lender shall not 
be required to 
make any Swing 
Loan and Issuing 
Bank shall not 
be required to 
issue, amend, or 
increase any Letter 
of Credit, in 
each case, to 
the extent (x) 
the Defaulting Lender's 
Pro Rata 
Share of 
such Swing 
Loans or 
Letter of 
Credit cannot 
be reallocated 
pursuant to 
this 
Section 2.3(g)( 
ii), or 
(y) the 
Swing Lender 
or Issuing 
Bank, as 
applicable, has 
not otherwise 
entered into 
arrangements reasonably 
satisfactory  to the 
Swing  Lender or 
Issuing  Bank, as 
applicable, and Borrowers to 
eliminate the Swing Lender's 
or Issuing Bank's risk 
with respect to 
the Defaulting Lender's participation in Swing Loans or Letters of Credit; and 
(G)
 
Agent   may   release 
any   cash   collateral 
provided   by 
Borrowers pursuant to 
this Section 2.3(g)(ii) 
to Issuing Bank 
and Issuing Bank 
may apply any 
such 
cash collateral to the payment of such 
Defaulting Lender's Pro Rata Share of any 
Letter of Credit 
Disbursement that is not 
reimbursed by Borrowers pursuant to 
Section 2.11(d). 
Subject to Section 
17.14, no 
reallocation hereunder 
shall constitute 
a waiver 
or release 
of any 
claim of 
any party 
hereunder against 
a Defaulting 
Lender arising 
from that 
Lender having 
become a 
Defaulting 
Lender, including 
any claim 
of a 
Non-Defaulting Lender 
as a 
result of 
such Non-Defaulting 
Lender's increased exposure following such reallocation. 
(h)
 
Independent Obligations
. 
All Revolving Loans (other than Swing Loans 
and Extraordinary Advances) shall be 
made by the Lenders contemporaneously 
and in accordance 
with their Pro Rata Shares. 
It is understood that (i) no Lender shall be responsible for any failure 
by any other Lender to perform its obligation to 
make any Revolving Loan (or other extension of 
credit) hereunder, nor shall 
any Commitment of any Lender 
be increased or decreased as 
a result 
of any failure by any other Lender to perform its 
obligations hereunder, and (ii) no 
failure by any 
Lender to 
perform its 
obligations hereunder shall 
excuse any 
other Lender 
from its 
obligations 
hereunder. 
2.4.
 
Payments; Reductions of Commitments; Prepayments
. 
(a)
 
Payments by Borrowers
. 
(i)
 
(i)        Except as otherwise expressly provided herein, all payments 
by Borrowers shall be made to Agent's Account for the account of the Lender 
Group and shall be 
made in immediately 
available funds, no 
later than 3:30 p.m. on 
the date specified 
herein; provided 

 

 

 

 

 

that, for 
the avoidance 
of doubt, 
any payments 
deposited into 
a Controlled 
Account shall 
be 
deemed not to 
be received by Agent 
on any Business Day 
unless immediately available funds 
have 
been credited to Agent's 
Account prior to 3:30 
p.m. on such Business 
Day. 
Any payment received 
by Agent in immediately available funds in Agent's Account later than 3:30 p.m. shall be deemed 
to have been received (unless Agent, in 
its sole discretion, elects to credit it 
on the date received) 
on the following 
Business Day and 
any applicable interest 
or fee shall 
continue to accrue 
until such 
following Business Day. 
(ii)
 
Unless Agent receives 
notice from 
Borrowers prior 
to the 
date on 
which any payment 
is due to 
the Lenders that 
Borrowers will not 
make such payment 
in full as 
and when required, Agent may assume that Borrowers have made (or will make) such 
payment in 
full to 
Agent on 
such date 
in immediately 
available funds 
and Agent 
may (but 
shall not 
be so 
required), in reliance upon such 
assumption, distribute to each Lender 
on such due date an 
amount 
equal to 
the amount 
then due 
such Lender. 
If and 
to the 
extent Borrowers 
do not 
make such 
payment in 
full to 
Agent on 
the date 
when due, 
each Lender 
severally shall 
repay to 
Agent on 
demand such amount distributed 
to such Lender, 
together with interest thereon 
at the Defaulting 
Lender Rate for 
each day from 
the date such 
amount is distributed 
to such Lender 
until the date 
repaid. 
(b)
 
Apportionment and Application
. 
(i)
 
So long as no Application Event has occurred 
and is continuing and 
except as otherwise provided herein 
with respect to Defaulting Lenders, 
all principal and interest 
payments received 
by Agent 
shall be 
apportioned ratably 
among the 
Lenders (according 
to the 
unpaid principal balance of 
the Obligations to 
which such payments 
relate held by 
each Lender) 
and all payments of fees and expenses received by Agent (other than fees or expenses 
that are for 
Agent's separate account or for the separate account of Issuing Bank) shall be apportioned ratably 
among the Lenders having a Pro Rata 
Share of the type of Commitment or 
Obligation to which a 
particular fee or expense relates. 
(ii)
 
Subject to Section 
2.4(b)(v), 
Section 2.4(d)(ii), and 
Section 2.4(e), 
all payments to 
be made hereunder 
by Borrowers shall be 
remitted to Agent 
and all such 
payments, 
and all proceeds of 
Collateral received by Agent, shall 
be applied, so long 
as no Application Event 
has occurred and is continuing and except 
as otherwise provided herein with respect to 
Defaulting 
Lenders, to reduce the 
balance of the Revolving 
Loans outstanding and, thereafter, 
to Borrowers 
(to be wired 
to the Designated Account) 
or such other Person 
entitled thereto under applicable 
law. 
(iii)
 
At any time 
that an Application 
Event has occurred 
and is continuing 
and except as otherwise 
provided herein with respect to 
Defaulting Lenders, all payments 
remitted 
to Agent and all proceeds of Collateral received by Agent shall be applied as follows: 
(A)
 
first, to pay 
any Lender Group 
Expenses (including cost 
or 
expense reimbursements) or indemnities then due to Agent under the Loan Documents 
and to pay 
interest and 
principal on 
Extraordinary Advances 
that are 
held solely by 
Agent pursuant 
to the 
terms of Section 2.4(d)(iv), until paid in full, 

 

 

 

 

 

 

 

 

 

 

(B)
 
second, to pay 
any fees or 
premiums then due 
to Agent under 
the Loan Documents, until paid in full, 
(C)
 
third,  to 
pay  interest 
due  in 
respect  of 
all  Protective 
Advances, until paid in full, 
(D)
 
fourth, to pay the principal of 
all Protective Advances, until 
paid in full, 
(E)
 
fifth, ratably, to pay any Lender 
Group Expenses (including 
cost or expense 
reimbursements) or indemnities 
then due to 
any of the 
Lenders under the 
Loan 
Documents, until paid in full, 
(F)
 
sixth, ratably, 
to pay any 
fees or premiums 
then due to 
any 
of the Lenders under the Loan Documents, until paid in full, 
(G)
 
seventh, to 
pay interest 
accrued in 
respect of 
the Swing 
Loans, until paid in full, 
(H)
 
eighth, to pay the principal of all Swing Loans, until paid 
in 
full, 
(I)
 
ninth,  ratably,  to 
pay  interest  accrued  in  respect 
of  the 
Revolving Loans (other 
than Protective Advances 
and Swing Loans) 
and the Term Loan, until 
paid 
in full, 
(J)
 
tenth, ratably 
i.
 
ratably, to 
pay the principal 
of all Revolving 
Loans 
and the Term Loan (other than Protective Advances and Swing Loans), until paid in full, 
ii.
 
to Agent, 
to be 
held by 
Agent, for 
the benefit 
of 
Issuing Bank (and for the 
ratable benefit of each of 
the Lenders that have an 
obligation to pay to 
Agent, for the 
account of Issuing 
Bank, a share 
of each Letter 
of Credit Disbursement), 
as cash 
collateral in 
an amount 
up to 
105% of 
the Letter 
of Credit 
Usage (to 
the extent 
permitted by 
applicable law, such 
cash collateral shall be applied 
to the reimbursement of any 
Letter of Credit 
Disbursement as and 
when such disbursement 
occurs and, if 
a Letter of 
Credit expires undrawn, 
the cash collateral held by 
Agent in respect of 
such Letter of Credit shall, 
to the extent permitted 
by applicable law, be reapplied pursuant 
to this Section 2.4(b)(iii), 
beginning with tier (A) 
hereof), 
iii.
 
ratably,  up  to  the 
lesser  of  (y) the  amount  (after 
taking into account 
any amounts previously 
paid pursuant to this 
clause iii. during the 
continuation 
of the applicable 
Application Event) of 
the most recently 
established Bank Product 
Reserve, which 
amount was 
established prior 
to the 
occurrence of, 
and not 
in contemplation 
of, the 
subject 
Application Event, 
and (z) 
$2,500,000 (after 
taking into 
account any 
amounts previously 
paid 
pursuant to this clause 
iii. during the continuation of 
the applicable Application Event), to 
(I) the 
Bank Product 
Providers based 
upon amounts 
then certified 
by each 
applicable Bank 
Product 
Provider to 
Agent (in 
form and 
substance satisfactory to 
Agent) to 
be due 
and payable 
to such 

 

 

 

 

 

 

 

 

 

Bank Product Provider 
on account 
of Bank 
Product Obligations (but 
not in 
excess of 
the Bank 
Product Reserve established 
for the Bank 
Product Obligations 
of such 
Bank Product 
Provider), 
and (II) with any 
balance to be 
paid to Agent, 
to be held 
by Agent, for 
the ratable benefit 
of the 
Bank Product Providers, as cash collateral (which cash collateral may be released by Agent to the 
applicable Bank Product Provider 
and applied by such 
Bank Product Provider to 
the payment or 
reimbursement of any 
amounts due and 
payable with respect 
to Bank Product 
Obligations owed 
to the applicable Bank Product Provider as and when such amounts first become due and 
payable 
and, if and at 
such time as all such 
Bank Product Obligations are 
paid or otherwise satisfied 
in full, 
the cash collateral held 
by Agent in 
respect of such 
Bank Product Obligations 
shall be reapplied 
pursuant to this Section 2.4(b)(iii), beginning with tier (A) hereof,, 

(K)
 
eleventh, to pay 
any other Obligations 
other than Obligations 
owed to 
Defaulting Lenders 
(including being 
paid, ratably, 
to the 
Bank Product 
Providers on 
account of 
all amounts 
then due 
and payable 
in respect 
of Bank 
Product Obligations, 
with any 
balance to 
be paid 
to Agent, 
to be 
held by 
Agent, for 
the ratable 
benefit of 
the Bank 
Product 
Providers, as 
cash collateral 
(which cash 
collateral may 
be released 
by Agent 
to the 
applicable 
Bank  Product 
Provider  and 
applied  by 
such  Bank 
Product  Provider 
to  the 
payment  or 
reimbursement of any 
amounts due and 
payable with respect 
to Bank Product 
Obligations owed 
to the applicable Bank Product Provider as and when such amounts first become due and 
payable 
and, if and at 
such time as all such 
Bank Product Obligations are 
paid or otherwise satisfied 
in full, 
the cash collateral held 
by Agent in 
respect of such 
Bank Product Obligations 
shall be reapplied 
pursuant to this Section 2.4(b)(iii), beginning with tier (A) hereof), 
(L)
 
twelfth, ratably to 
pay any Obligations 
owed to Defaulting 
Lenders; and 
(M)
 
thirteenth,  to  Borrowers  (to  be  wired  to  the  Designated 
Account) or such other Person entitled thereto under applicable law. 
(iv)
 
Agent promptly 
shall distribute 
to each 
Lender, pursuant 
to the 
applicable wire instructions received from 
each Lender in writing, such 
funds as it may be 
entitled 
to receive, subject to a Settlement delay as provided in Section 2.3(e). 
(v)
 
In each instance, so long as 
no Application Event has occurred and 
is continuing, Section 2.4(b)(ii) shall not 
apply to any payment made 
by Borrowers to Agent and 
specified by Borrowers 
to be 
for the 
payment of 
specific Obligations 
then due 
and payable 
(or 
prepayable) under any provision of this Agreement or any other Loan Document. 
(vi)
 
For  purposes  of  Section  2.4(b)(iii),  "paid  in  full"  of  a  type  of 
Obligation means payment 
in cash or 
immediately available funds 
of all amounts 
owing on account 
of such type of Obligation, including interest accrued after the 
commencement of any Insolvency 
Proceeding, default 
interest, interest 
on interest, 
and expense 
reimbursements, irrespective 
of 
whether any 
of the 
foregoing would 
be or 
is allowed 
or disallowed 
in whole 
or in 
part in 
any 
Insolvency Proceeding. 
(vii)
 
In the event 
of a direct 
conflict between the 
priority provisions 
of 
this Section 2.4 and 
any other provision contained 
in this Agreement 
or any other Loan 
Document, 

 

 

 

 

 

 

 

 

 

 

 

 

it is the intention 
of the parties hereto that 
such provisions be read 
together and construed, to 
the 
fullest extent possible, to be in 
concert with each other. 
In the event of any actual, irreconcilable 
conflict that 
cannot be 
resolved as 
aforesaid, if 
the conflict 
relates to 
the provisions 
of Section 
2.3(g) and this Section 
2.4, then the provisions 
of Section 2.3(g) shall 
control and govern, and 
if 
otherwise, then the terms and provisions of this Section 2.4 shall control and govern. 
(c)
 
Reduction of Commitments
. 
(i)
 
Revolver  Commitments
. 
The  Revolver 
Commitments  shall 
terminate on 
the Maturity 
Date or 
earlier termination 
thereof pursuant 
to the 
terms of 
this 
Agreement. 
Borrowers may reduce the 
Revolver Commitments, without premium 
or penalty, 
to 
an amount not less than the 
greater of (x) $20,000,000 and (y) 
sum of (A) the Revolver Usage 
as 
of such 
date, 
plus
 
(B) the principal 
amount of 
all Revolving Loans 
not yet 
made as to 
which a 
request has been 
given by Borrowers 
under Section 2.3(a), 
plus
 
(C) the amount 
of all Letters 
of 
Credit not 
yet issued 
as to 
which a 
request has 
been given 
by Borrowers 
pursuant t 
o 
Section 
2.11(a). 
Each such reduction 
shall be in 
an amount which 
is not less 
than $2,500,000, shall 
be 
made by 
providing not 
less than 
ten Business 
Days prior 
written notice 
to Agent, 
and shall 
be 
irrevocable. 
The Revolver 
Commitments, once 
reduced, may 
not be 
increased. 
Each such 
reduction of the Revolver Commitments 
shall reduce the Revolver Commitments of each 
Lender 
proportionately in accordance with its 
ratable share thereof. 
In connection with any reduction 
in 
the Revolver Commitments prior to the 
Maturity Date, if any Loan Party 
or any of its Subsidiaries 
owns any Margin 
Stock, Borrowers shall 
deliver to Agent an 
updated Form U-1 
(with sufficient 
additional originals 
thereof for 
each Lender), 
duly executed 
and delivered 
by the 
Borrowers, 
together with such 
other documentation as 
Agent shall reasonably 
request, in order 
to enable Agent 
and the Lenders 
to comply with 
any of the 
requirements under Regulations 
T, U or X 
of the Federal 
Reserve Board. 
(ii)
 
Term 
Loan Commitments
. 
The R/E 
Term Loan 
Commitments 
shall terminate upon the making of the R/E Term Loan. 
The M/E Term Loan Commitments shall 
terminate upon the earlier of the making of the Additional M/E Term Loan and April 27, 2022. 
(d)
 
Optional Prepayments
. 
(i)
 
Revolving Loans
. 
Borrowers may 
prepay the 
principal of 
any 
Revolving Loan at any time in whole or in part, without premium or penalty. 
(ii)
 
Term 
Loan
. 
Borrowers may, upon at least ten Business Days prior 
written notice 
to Agent, 
prepay the 
principal of 
the M/E 
Term Loan 
or the 
R/E Term 
Loan, in 
whole or in 
part, without premium 
or penalty. 
Each prepayment made 
pursuant to this 
Section 
2.4(d)(ii) shall be accompanied by the payment of accrued interest to the date of such payment on 
the amount prepaid. 
Each such prepayment shall be applied against the remaining installments of 
principal due on 
the applicable Term 
Loan on a 
pro rata basis 
(for the avoidance 
of doubt, any 
amount that is due and payable on the Maturity Date shall constitute an installment).. 
(e)
 
Mandatory Prepayments
. 
(i)
 
Borrowing Base
. 
If, at any time, 
(A) the Revolver Usage on 
such 
date exceeds (B) the lesser of (x) the Borrowing Base reflected in the Borrowing Base Certificate 

 

 

 

 

 

 

 

 

 

most recently delivered 
by Borrowers to 
Agent, or (y) 
the Maximum Revolver 
Amount, in all 
cases 
as adjusted for Reserves established 
by Agent in accordance with 
Section 2.1(c), then Borrowers 
shall immediately prepay the Obligations 
in accordance with Section 2.4(f)(i)(A) in 
an aggregate 
amount equal to the amount of such excess. 
(ii)
 
M&E Borrowing 
Base
. 
If at any 
time, the 
outstanding principal 
balance of the M/E 
Term 
Loan on such date 
exceeds the M&E Borrowing 
Base, then Borrowers 
shall promptly, but 
in any event, within one Business 
Day
 
after request therefor by Agent
 
prepay 
the outstanding principal 
balance of the M/E 
Term 
Loan in accordance with 
Section 2.4(f)(i)(B) 
in an aggregate amount equal to the amount of such excess. 
(iii)
 
R/E Borrowing 
Base. 
 
If at 
any time, 
the outstanding 
principal 
balance of the 
R/E Term Loan on such 
date exceeds the R/E 
Borrowing Base, then 
Borrowers shall 
promptly, but 
in any event, 
within one Business 
Day
 
after request therefor 
by Agent
 
prepay the 
outstanding principal balance of the R/E Term 
Loan in accordance with Section 2.4(f)(i)(C) in an 
aggregate amount equal to the amount of such excess. 
(iv)
 
Dispositions
. 
Within three Business Days of 
the date of receipt by 
any Loan Party or 
any of its Subsidiaries of 
the Net Cash Proceeds 
of any voluntary or involuntary 
sale or 
disposition of 
assets of 
any Loan 
Party or 
any of 
its Subsidiaries 
(including Net 
Cash 
Proceeds of 
insurance or 
arising from 
casualty losses 
or condemnations 
and payments 
in lieu 
thereof, but excluding 
(A) Net Cash 
Proceeds from sales 
or dispositions which 
qualify as Permitted 
Dispositions under clauses 
(a), (b), (c), 
(d), (e), (f) 
(solely with respect 
to Accounts of 
Mexican 
Subsidiaries), (j), (k), (l), 
(m), (n), or 
(o) of the 
definition of Permitted 
Dispositions, (B) so 
long 
as the M/E Term 
Loan has not been paid 
in full, Net Cash Proceeds 
from sales or dispositions of 
Eligible M&E, and (C) so 
long as the R/E Term Loan has not been 
paid in full, Net Cash Proceeds 
from sales 
or dispositions 
of Eligible 
Real Property), 
Borrowers shall 
prepay the 
outstanding 
principal amount of 
the Obligations in 
accordance with Section 
2.4(f)(ii) in 
an amount equal 
to 
100% of 
such Net 
Cash Proceeds 
received by 
such Person 
in connection 
with such 
sales or 
dispositions; provided, that so long as (A) no Default or Event of Default shall have occurred and 
is continuing or would 
result therefrom, (B) Borrowers shall 
have given Agent prior 
written notice 
of Borrowers' intention to 
apply such monies to 
the costs of replacement of 
the properties or assets 
that are the 
subject of such sale 
or disposition or the 
cost of purchase 
or construction of other 
assets 
useful in the business of such Loan Party or its 
Subsidiaries, (C) the monies are held in a Deposit 
Account in which Agent has a 
perfected first-priority security interest, and (D) such 
Loan Party or 
its Subsidiary, 
as applicable, 
completes such replacement, 
purchase, or 
construction within 
180 
days after the initial 
receipt of such monies, 
then the Loan Party or 
such Loan Party's Subsidiary 
whose assets were the 
subject of such disposition shall 
have the option to apply 
such monies to the 
costs of replacement 
of the 
assets that are 
the subject 
of such sale 
or disposition 
or the costs 
of 
purchase or 
construction of 
other assets 
useful in 
the business 
of such 
Loan Party 
or such 
Subsidiary unless and 
to the 
extent that 
such applicable 
period shall 
have expired 
without such 
replacement, purchase, 
or construction 
being made 
or completed, 
in which 
case, any 
amounts 
remaining in the 
Deposit Account referred 
to in clause 
(C) above shall 
be paid to 
Agent and applied 
in accordance with Section 2.4(f)(ii); 
provided, that no Loan Party 
nor any of its Subsidiaries shall 
have  the  right 
to  use  such 
Net  Cash  Proceeds 
to  make  such 
replacements,  purchases,  or 
construction in 
excess of 
$500,000 in 
any given 
fiscal year. 
Nothing contained 
in this 
Section 

 

 

 

 

 

 

 

 

 

 

 

2.4(e)(iv) shall permit any Loan Party 
or any of its Subsidiaries to sell 
or otherwise dispose of any 
assets other than in accordance with Section 6.4. 
(v)
 
Dispositions of Eligible M&E
. 
So long as the M/E Term Loan has 
not been paid in 
full, within three Business 
Days of the date 
of receipt by any 
Loan Party or any 
of its Subsidiaries of the Net Cash Proceeds of any voluntary or involuntary sale or disposition of 
Eligible M&E 
(including Net 
Cash Proceeds 
of insurance 
or arising 
from casualty 
losses or 
condemnations and payments 
in lieu 
thereof), Borrowers 
shall prepay the 
outstanding principal 
amount of the M/E Term 
Loan in accordance with Section 2.4(f)(iii) in an amount equal to 
100% 
of such Net Cash Proceeds received by 
such Person in connection with such 
sales or dispositions 
until paid in full. 

(vi)
 
Dispositions of Eligible Real 
Property
. 
So long as the 
R/E Term 
Loan has not been paid 
in full, within three Business 
Days of the date of 
receipt by any Loan Party 
or any 
of its 
Subsidiaries of 
the Net 
Cash Proceeds 
of any 
voluntary or 
involuntary sale 
or 
disposition of Eligible 
Real Property (including 
Net Cash Proceeds 
of insurance or 
arising from 
casualty losses 
or condemnations 
and payments 
in lieu 
thereof), Borrowers 
shall prepay 
the 
outstanding principal amount 
of the R/E 
Term Loan 
in accordance with 
Section 2.4(f)(iv) in 
an 
amount equal to 100% 
of such Net 
Cash Proceeds received 
by such Person 
in connection with such 
sales or dispositions until paid in full. 
(vii)
 
Extraordinary Receipts
. 
Within one 
Business Day of the 
date of 
receipt by any 
Loan Party or 
any of its 
Subsidiaries (other than 
any Mexican Subsidiary) 
of any 
Extraordinary  Receipts, 
Borrowers  shall 
prepay  the 
outstanding  principal 
amount  of 
the 
Obligations  in 
accordance  with 
Section  2.4(f)(ii) 
in  an 
amount  equal 
to  100% 
of  such 
Extraordinary Receipts, net of any reasonable expenses 
incurred in collecting such Extraordinary 
Receipts. 
(viii)
 
Indebtedness
. 
Within one Business 
Day of the date 
of incurrence 
by  any  Loan  Party  or  any  of  its  Subsidiaries  (other  than  any  Mexican  Subsidiary)  of  any 
Indebtedness  (other  than 
Permitted  Indebtedness), 
Borrowers  shall 
prepay  the 
outstanding 
principal amount of 
the Obligations in 
accordance with Section 
2.4(f)(ii) in 
an amount equal 
to 
100% of the Net Cash Proceeds received by 
such Person in connection with such incurrence. 
The 
provisions of 
this Section 
2.4(e)(v) shall 
not be 
deemed to 
be implied 
consent to 
any such 
incurrence otherwise prohibited by the terms of this Agreement. 
(f)
 
Application of Payments
. 
(i)
 
(A) Each prepayment pursuant to Section 2.4(e)(i) shall, (1) 
so long 
as no Application Event 
shall have occurred and 
be continuing, be applied, 
first, to the outstanding 
principal amount of 
the Revolving Loans 
until paid in 
full, and second, 
to cash collateralize 
the 
Letters of Credit in an amount 
equal to 105% of the then outstanding 
Letter of Credit Usage, and 
(2) if an 
Application Event shall 
have occurred and 
be continuing, be 
applied in the 
manner set 
forth in Section 2.4(b)(iii), (B) each prepayment pursuant to Section 2.4(e)(ii) 
shall (1) so long as 
no Application Event 
shall have occurred 
and be continuing, 
be applied to 
the outstanding principal 
amount of the 
M/E Term Loan until 
paid in full, 
and (2) if 
an Application Event 
shall have occurred 
and  be  continuing,  be  applied  in  the  manner  set  forth  in  Section  2.4(b)(iii),  and 
(C)  each 

 

 

 

 

 

 

 

 

 

 

 

 

prepayment pursuant 
to Section 
2.4(e)(iii) shall 
(1) so 
long as 
no Application 
Event shall 
have 
occurred and be continuing, be applied to the outstanding principal amount of the 
R/E Term Loan 
until paid in full, and 
(2) if an Application 
Event shall have occurred 
and be continuing, be 
applied 
in the manner 
set forth in 
Section 2.4(b)(iii). 
Each such prepayment 
of any Term 
Loan shall be 
applied against the remaining installments of principal of such Term 
Loan on a pro rata basis (for 
the avoidance of doubt, any amount 
that is due and payable 
on the Maturity Date shall 
constitute 
an installment). 
(ii)
 
Each  prepayment  pursuant 
to  Section  2.4(e)(iv), 
2.4(e)(vii),  or 
2.4(e)(viii) shall (A) 
so long as 
no Application Event 
shall have occurred 
and be continuing, 
be 
applied, first, to the 
outstanding principal amount 
of the Term 
Loan until paid in 
full, second, to 
the outstanding 
principal amount 
of the 
Revolving Loans, 
until paid 
in full, 
and third, 
to cash 
collateralize the Letters 
of Credit in 
an amount equal 
to 105% of 
the then outstanding 
Letter of 
Credit Usage, and (B) 
if an Application 
Event shall have occurred 
and be continuing, be 
applied 
in the manner 
set forth in 
Section 2.4(b)(iii). 
Each such prepayment 
of the Term 
Loan shall be 
applied against the remaining 
installments of principal 
of the Term 
Loan on a pro 
rata basis (for 
the avoidance of doubt, any amount 
that is due and payable 
on the Maturity Date shall 
constitute 
an installment). 
(iii)
 
Each prepayment pursuant to Section 2.4(e)(v)) shall (A) so long as 
no Application 
Event shall 
have occurred 
and be 
continuing, be 
applied, to 
the outstanding 
principal amount of 
the M/E Term 
Loan until paid 
in full, and 
(B) if an 
Application Event shall 
have occurred and 
be continuing, be 
applied in the 
manner set forth 
in Section 2.4(b)(iii). 
Each 
such prepayment of 
the Term Loans shall 
be applied against 
the remaining installments 
of principal 
of the 
Term Loans 
on a 
pro rata basis 
(for the 
avoidance of 
doubt, any 
amount that 
is due 
and 
payable on the Maturity Date shall constitute an installment). 

(iv)
 
Each prepayment pursuant to 
Section 2.4(e)(vi)) shall (A) 
so long as 
no Application Event 
shall have occurred 
and be continuing, 
be applied to 
the outstanding principal 
amount of the 
R/E Term Loan until 
paid in full, 
and (B) if 
an Application Event 
shall have occurred 
and be continuing, be applied in 
the manner set forth in 
Section 2.4(b)(iii). 
Each such prepayment 
of the Term 
Loans shall be 
applied against 
the remaining 
installments of 
principal of the 
Term 
Loans on a pro rata 
basis (for the avoidance 
of doubt, any amount 
that is due and 
payable on the 
Maturity Date shall constitute an installment). 
2.5.
 
Promise to Pay; Promissory Notes
. 
(a)
 
Borrowers agree to pay the Lender Group Expenses on the earlier of (i) the 
first day of 
the month following 
the date on 
which the applicable 
Lender Group Expenses 
were 
first incurred, or (ii) the date on which demand therefor is made by Agent (it being acknowledged 
and agreed 
that any 
charging of 
such costs, 
expenses or 
Lender Group 
Expenses to 
the Loan 
Account pursuant to the 
provisions of Section 2.6(d) 
shall be deemed to 
constitute a demand for 
payment thereof 
for the 
purposes of 
this subclause 
(ii)). 
Borrowers promise 
to pay 
all of 
the 
Obligations (including principal, 
interest, premiums, if 
any, fees, 
costs, and expenses 
(including 
Lender Group 
Expenses)) in 
full on 
the Maturity 
Date or, 
if earlier, 
on the 
date on 
which the 
Obligations (other than 
the Bank Product 
Obligations) become due 
and payable pursuant 
to the 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

terms of this Agreement. 
Borrowers agree that their obligations contained in the first sentence of 
this Section 2.5(a) shall survive payment or satisfaction in full of all other Obligations. 
(b)
 
Any Lender may request that any portion of its Commitments or the Loans 
made by it be evidenced 
by one or more promissory 
notes. 
In such event, Borrowers 
shall execute 
and deliver to such Lender the requested promissory notes 
payable to the order of such Lender in 
a form furnished 
by Agent and 
reasonably satisfactory to 
Borrowers. 
Thereafter, the 
portion of 
the Commitments and Loans evidenced by such 
promissory notes and interest thereon shall at 
all 
times be represented 
by one 
or more promissory 
notes in such 
form payable to 
the order of 
the 
payee named therein. 
2.6.
 
Interest  Rates 
and  Letter 
of  Credit 
Fee: 
Rates,   Payments,   and 
Calculations
. 
(a)
 
Interest Rates
. 
Except as provided in 
Section 2.6(c) and Section 
2.12(d), 
all Obligations (except for undrawn 
Letters of Credit) that have 
been charged to the Loan 
Account 
pursuant to the terms hereof shall bear interest as follows: 
(i)
 
if the relevant 
Obligation is a LIBOR 
Rate Loan, at 
a 
per annum
 
rate 
equal to the LIBOR Rate 
plus
 
the LIBOR Rate Margin, and 
(ii)
 
otherwise, at a 
per annum
 
rate equal to the Base Rate 
plus
 
the Base 
Rate Margin. 
(b)
 
Letter of Credit Fee
. 
Borrowers shall pay Agent (for 
the ratable benefit of 
the Revolving Lenders), a 
Letter of Credit fee 
(the "Letter of 
Credit Fee") (which fee 
shall be in 
addition to the fronting 
fees and commissions, other 
fees, charges and expenses 
set forth in Section 
2.11(k)) that shall 
accrue 
a
t a 
per annum
 
rate equal to 
the Revolving Loan 
LIBOR Rate Margin 
times the average amount of the Letter of Credit Usage during the immediately preceding month. 
(c)
 
Default  Rate
. 
(i) Automatically  upon  the  occurrence 
and  during  the 
continuation of 
an Event 
of Default 
under Section 
8.4 or 
8.5 and 
(ii) upon 
the occurrence 
and 
during the continuation 
of any other 
Event of Default 
(other than an 
Event of Default 
under Section 
8.4 or 8.5), at the direction 
of Agent or the Required Lenders, 
and upon written notice by Agent 
to 
Borrowers of 
such direction 
(provided, that 
such notice 
shall not 
be required 
for any 
Event of 
Default under Section 
8.1), (A) all 
Loans and all 
Obligations (except for 
undrawn Letters of 
Credit) 
that have been 
charged to 
the Loan Account 
pursuant to the 
terms hereof shall 
bear interest at 
a 
per annum
 
rate equal 
to two 
percentage points 
above the 
per annum
 
rate otherwise 
applicable 
thereunder, and (B) the Letter of Credit Fee shall be increased to two percentage points above 
the 
per annum
 
rate otherwise applicable hereunder. 

(d)
 
Payment
. 
Except to 
the extent 
provided to 
the contrary 
in Section 
2.10, 
Section 2.11(k) or Section 2.12(a), 
(i) all interest and 
all other fees payable 
hereunder or under any 
of the other 
Loan Documents (other 
than Letter of 
Credit Fees) shall 
be due and 
payable, in arrears, 
on the first 
day of each 
month, (ii) all 
Letter of Credit 
Fees payable hereunder, 
and all fronting 
fees and all 
commissions, other fees, 
charges and expenses 
provided for in 
Section 2.11(k) 
shall 
be due and 
payable, in 
arrears, on 
the first 
Business Day 
of each 
month, and 
(iii) all 
costs and 
expenses payable hereunder 
or under any 
of the other 
Loan Documents, and 
all other Lender 
Group 

 

 

 

 

 

 

Expenses shall be due 
and payable on (x) 
with respect to Lender 
Group Expenses outstanding as 
of the 
Closing Date, 
the Closing 
Date, and 
(y) otherwise, the 
earlier of 
(A) the 
first day 
of the 
month following the 
date on which 
the applicable costs, expenses, 
or Lender Group 
Expenses were 
first incurred, or (B) the date on which 
demand therefor is made by Agent (it being acknowledged 
and agreed 
that any 
charging of 
such costs, 
expenses or 
Lender Group 
Expenses to 
the Loan 
Account pursuant 
to the 
provisions of 
the following 
sentence shall 
be deemed 
to constitute 
a 
demand for payment thereof for 
the purposes of this 
subclause (y)). 
Borrowers hereby authorize 
Agent, from time to time without prior notice to Borrowers, 
to charge to the Loan Account (A) on 
the first day of each month, all interest accrued during the prior month on the Revolving Loans or 
the Term 
Loan hereunder, (B) 
on the first 
Business Day of each 
month, all Letter of 
Credit Fees 
accrued or chargeable hereunder during the prior month, (C) 
as and when incurred or accrued, all 
fees and costs 
provided for in Section 
2.10(a) or (c), (D) 
on the first day 
of each month, the 
Unused 
Line Fee accrued 
during the 
prior month pursuant 
to Section 
2.10(b), (E) as 
and when due 
and 
payable, all other 
fees payable hereunder 
or under any 
of the other 
Loan Documents, (F) 
on the 
Closing Date and 
thereafter as and 
when incurred or 
accrued, all other 
Lender Group Expenses, 
and (G) 
as and 
when due 
and payable 
all other 
payment obligations 
payable under 
any Loan 
Document or any Bank Product 
Agreement (including any amounts due 
and payable to the Bank 
Product Providers 
in respect 
of Bank 
Products). 
All amounts 
(including interest, 
fees, costs, 
expenses, Lender Group Expenses, 
or other amounts payable 
hereunder or under any 
other Loan 
Document or under any 
Bank Product Agreement) charged 
to the Loan 
Account shall thereupon 
constitute Revolving Loans 
hereunder, shall 
constitute Obligations hereunder, 
and shall initially 
accrue interest at the 
rate then applicable to Revolving 
Loans that are Base 
Rate Loans (unless and 
until converted into LIBOR Rate Loans in accordance with the terms of this Agreement). 
(e)
 
Computation
. 
All interest and fees chargeable under the Loan 
Documents 
shall be 
computed on 
the basis 
of a 
360 day 
year, in 
each case, 
for the 
actual number 
of days 
elapsed in the 
period during which 
the interest or 
fees accrue. 
In the event 
the Base Rate 
is changed 
from time to time 
hereafter, the rates of interest hereunder 
based upon the Base Rate 
automatically 
and immediately shall be 
increased or decreased by 
an amount equal 
to such change 
in the Base 
Rate. 
(f)
 
Intent to Limit Charges to 
Maximum Lawful Rate
. 
In no event shall 
the 
interest rate 
or rates 
payable under 
this Agreement, 
plus
 
any other amounts 
paid in 
connection 
herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction 
shall, in a 
final determination, deem 
applicable. 
Borrowers and the 
Lender Group, in 
executing 
and delivering this Agreement, 
intend legally to agree 
upon the rate or rates 
of interest and manner 
of  payment 
stated  within 
it;  provided, 
that  anything 
contained  herein 
to  the 
contrary 
notwithstanding, if 
such rate 
or rates 
of interest 
or manner 
of payment 
exceeds the 
maximum 
allowable under applicable law, 
then, 
ipso
 
facto
, as of the date 
of this Agreement, Borrowers are 
and shall 
be liable 
only for 
the payment 
of such 
maximum amount 
as is 
allowed by 
law, and 
payment received from Borrowers in excess of such legal maximum, whenever received, shall 
be 
applied to reduce the principal balance of the Obligations to the extent of such excess. 
2.7.
 
Crediting Payments
. 
The receipt of any 
payment item by Agent 
shall not be 
required to be 
considered a 
payment on account 
unless such payment 
item is 
a wire transfer 
of 
immediately available funds 
made to Agent's 
Account or unless 
and until such 
payment item is 
honored when presented for payment. 
Should any payment item not 
be honored when presented 

 

 

 

 

 

 

 

 

for payment, then 
Borrowers shall be 
deemed not to 
have made such 
payment. 
Anything to the 
contrary contained herein notwithstanding, any payment item shall 
be deemed received by Agent 
only if it 
is received into 
Agent's Account on 
a Business Day 
on or before 
3:30 p.m. 
If any payment 
item is received into Agent's 
Account on a non-Business Day 
or after 3:30 p.m. on 
a Business Day 
(unless Agent, in its sole 
discretion, elects to credit it 
on the date received), it 
shall be deemed to 
have been received by Agent 
as of the opening of 
business on the immediately following 
Business 
Day. 
2.8.
 
Designated Account
. 
Agent is authorized 
to make the 
Revolving Loans and 
the Term Loan, and Issuing Bank 
is authorized to issue 
the Letters of Credit, 
under this Agreement 
based upon telephonic or other instructions received from anyone 
purporting to be an Authorized 
Person or, 
without instructions, 
if pursuant to 
Section 2.6(d). 
Borrowers agree to 
establish and 
maintain the Designated Account with the Designated Account Bank for the purpose of receiving 
the proceeds of the Revolving 
Loans requested by Borrowers and 
made by Agent or 
the Lenders 
hereunder. 
Unless otherwise agreed 
by Agent and Borrowers, 
any Revolving Loan or 
Swing Loan 
requested by 
Borrowers and 
made by 
Agent or 
the Lenders 
hereunder shall 
be made 
to the 
Designated Account. 
2.9.
 
Maintenance of 
Loan Account; 
Statements of 
Obligations
. 
Agent shall 
maintain an 
account on 
its books 
in the 
name of 
Borrowers (the 
"Loan Account") 
on which 
Borrowers will 
be charged 
with the 
Term Loan, 
all Revolving 
Loans (including 
Extraordinary 
Advances and Swing 
Loans) made by 
Agent, Swing Lender, 
or the Lenders 
to Borrowers or 
for 
Borrowers' account, 
the Letters 
of Credit 
issued or 
arranged by 
Issuing Bank 
for Borrowers' 
account, and with 
all other payment 
Obligations hereunder or 
under the other 
Loan Documents, 
including, accrued interest, 
fees and expenses, and 
Lender Group Expenses. 
In accordance with 
Section 2.7, 
the Loan 
Account will 
be credited 
with all 
payments received 
by Agent 
from 
Borrowers  or  for 
Borrowers'  account. 
Agent  shall  make 
available  to  Borrowers 
monthly 
statements regarding the Loan Account, including the principal amount of the Term 
Loan and the 
Revolving Loans, interest accrued 
hereunder, fees accrued or charged 
hereunder or under the 
other 
Loan Documents, 
and a 
summary itemization 
of all 
charges and 
expenses constituting 
Lender 
Group Expenses accrued hereunder or under the other Loan 
Documents, and each such statement, 
absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an 
account stated between Borrowers 
and the Lender Group 
unless, within 30 days 
after Agent first 
makes such a statement 
available to Borrowers, Borrowers 
shall deliver to Agent 
written objection 
thereto describing the error or errors contained in such statement. 
2.10.
 
Fees
. 
(a)
 
Agent Fees
. 
Borrowers shall pay to 
Agent, for the account 
of Agent, as and 
when due and payable under the terms of the Fee Letter, the fees set forth in the Fee Letter. 
(b)
 
Unused Line Fee
. 
Borrowers shall pay to Agent, for 
the ratable account of 
the Revolving Lenders, an unused line fee (the "Unused Line Fee") in 
an amount equal to 0.375% 
per annum
 
times the result of (i) the aggregate amount of the Revolver Commitments, 
less
 
(ii) the 
Average Revolver 
Usage during 
the immediately 
preceding month 
(or portion 
thereof), which 
Unused Line Fee shall 
be due and payable, 
in arrears, on the 
first day of each 
month from and after 

 

 

 

the Closing Date 
up to the 
first day of 
the month prior 
to the date 
on which the 
Obligations are 
paid in full and on the date on which the Obligations are paid in full. 
(c)
 
Field Examination and Other 
Fees
. 
Subject to any limitations set 
forth in 
Section 5.7(c), 
Borrowers shall pay to Agent, field examination, appraisal, and valuation fees and 
charges, as and when incurred or chargeable, as follows (i) a fee of $1,000 per day, 
per examiner, 
plus
 
reasonable and documented out-of-pocket 
expenses (including travel, meals, and 
lodging) for 
each field examination of any Loan Party 
or its Subsidiaries performed by or 
on behalf of Agent, 
and (ii) the reasonable 
and documented out-of-pocket 
fees, charges or 
expenses paid or 
incurred 
by Agent if it elects to 
employ the services of one or more 
third Persons to appraise the Collateral, 
or any portion thereof, or to assess any Loan Party's or its Subsidiaries' business valuation. 
2.11.
 
Letters of Credit
. 
(a)
 
Subject to the terms and conditions 
of this Agreement, upon the request 
of 
Borrowers made in 
accordance herewith, and 
prior to the 
Maturity Date, Issuing 
Bank agrees to 
issue a requested standby Letter 
of Credit or a sight commercial 
Letter of Credit for the 
account of 
Borrowers. 
By submitting 
a request 
to Issuing 
Bank for 
the issuance 
of a 
Letter of 
Credit, 
Borrowers shall be 
deemed to have 
requested that Issuing 
Bank issue the 
requested Letter of 
Credit. 

Each request 
for the 
issuance of 
a Letter 
of Credit, 
or the 
amendment or 
extension of 
any 
outstanding Letter of Credit, shall 
be (i) irrevocable and 
made in writing by an 
Authorized Person, 
(ii)  delivered  to 
Agent  and  Issuing 
Bank  via  telefacsimile 
or  other  electronic 
method  of 
transmission reasonably acceptable 
to Agent and 
Issuing Bank and 
reasonably in advance 
of the 
requested  date 
of  issuance, 
amendment  or 
extension,  and 
(iii)  subject 
to  Issuing 
Bank's 
authentication procedures with results satisfactory to Issuing Bank. 
Each such request shall be in 
form and substance reasonably 
satisfactory to Agent and Issuing 
Bank and (i) shall 
specify (A) the 
amount of such Letter of Credit, 
(B) the date of issuance, amendment 
or extension of such Letter 
of Credit, (C) the 
proposed expiration date 
of such Letter of 
Credit, (D) the name and 
address of 
the beneficiary of the Letter 
of Credit, and (E) such 
other information (including, the conditions 
to 
drawing, and, in the case 
of an amendment or extension, 
identification of the Letter 
of Credit to be 
so amended or extended) as shall be necessary to 
prepare, amend or extend such Letter of Credit, 
and (ii) shall be accompanied by such Issuer Documents as Agent or Issuing 
Bank may request or 
require, to the extent that such requests or requirements 
are consistent with the Issuer Documents 
that Issuing Bank generally requests 
for Letters of Credit in similar 
circumstances. 
Issuing Bank's 
records of the 
content of any 
such request will 
be conclusive. 
Anything contained herein 
to the 
contrary notwithstanding, Issuing Bank may, but shall not be obligated to, issue a Letter of Credit 
that supports the obligations of a 
Loan Party or one of 
its Subsidiaries in respect of 
(x) a lease of 
real property to 
the extent that 
the face amount 
of such Letter 
of Credit exceeds 
the highest rent 
(including all 
rent-like charges) 
payable under 
such lease 
for a 
period of 
one year, 
or (y) 
an 
employment contract to 
the extent that 
the face amount 
of such Letter 
of Credit exceeds the 
highest 
compensation payable under such contract for a period of one year. 
(b)
 
Issuing Bank shall 
have no obligation 
to issue a 
Letter of Credit 
if any of 
the following would result after giving effect to the requested issuance: 
(i)
 
the  Letter  of  Credit 
Usage  would  exceed  the 
Letter  of  Credit 
Sublimit, or 

 

 

 

 

 

 

(ii)
 
the Letter 
of Credit 
Usage would 
exceed the 
Maximum Revolver 
Amount 
less
 
the outstanding amount of Revolving Loans (including Swing Loans), or 
(iii)
 
the Letter of 
Credit Usage would 
exceed the Borrowing 
Base at such 
time 
less
 
the outstanding principal balance of the Revolving Loans 
(inclusive of Swing Loans) at 
such time. 
(c)
 
In the event 
there is a 
Defaulting Lender as 
of the date 
of any request 
for 
the issuance of a 
Letter of Credit, Issuing 
Bank shall not be 
required to issue or 
arrange for such 
Letter of Credit to the extent (i) the Defaulting Lender's Letter of Credit 
Exposure with respect to 
such Letter of Credit may 
not be reallocated pursuant to 
Section 2.3(g)(ii), or (ii) Issuing 
Bank has 
not otherwise entered into 
arrangements reasonably satisfactory to 
it and Borrowers 
to eliminate 
Issuing Bank's 
risk with 
respect to 
the participation 
in such 
Letter of 
Credit of 
the Defaulting 
Lender, which arrangements may include 
Borrowers cash collateralizing such 
Defaulting Lender's 
Letter of Credit Exposure in accordance with Section 2.3(g)(ii). 
Additionally, Issuing Bank shall 
have no obligation 
to issue or 
extend a Letter 
of Credit if 
(A) any order, 
judgment, or decree 
of 
any Governmental Authority or arbitrator 
shall, by its terms, 
purport to enjoin or restrain 
Issuing 
Bank from issuing such Letter 
of Credit, or any law 
applicable to Issuing Bank or 
any request or 
directive  (whether  or  not  having  the  force  of  law)  from  any  Governmental  Authority  with 
jurisdiction over Issuing Bank shall 
prohibit or request that Issuing 
Bank refrain from the issuance 
of letters of credit generally 
or such Letter of Credit 
in particular, (B) the 
issuance of such Letter 
of Credit 
would violate 
one or 
more policies 
of Issuing 
Bank applicable 
to letters 
of credit 
generally, or 
(C) if amounts 
demanded to be paid 
under any Letter of 
Credit will not 
or may not 
be in US Dollars. 
(d)
 
Any Issuing 
Bank (other 
than Wells 
Fargo or 
any of 
its Affiliates) 
shall 
notify Agent in 
writing no later 
than the Business 
Day prior to 
the Business Day 
on which such 
Issuing Bank issues any Letter of Credit. 
In addition, each Issuing Bank (other than 
Wells 
Fargo 
or any of 
its Affiliates) 
shall, on the 
first Business Day 
of each 
week, submit 
to Agent a 
report 
detailing the daily undrawn 
amount of each 
Letter of Credit 
issued by such 
Issuing Bank during 
the prior 
calendar week. 
Each Letter 
of Credit 
shall be 
in form 
and substance 
reasonably 
acceptable to Issuing Bank, 
including the requirement that 
the amounts payable thereunder 
must 
be payable in Dollars. 
If Issuing Bank makes a payment under a Letter 
of Credit, Borrowers shall 
pay to Agent 
an amount equal to 
the applicable Letter of 
Credit Disbursement on the 
Business Day 
such Letter of 
Credit Disbursement is 
made and, in 
the absence of 
such payment, the 
amount of 
the  Letter  of  Credit  Disbursement  immediately  and  automatically  shall  be  deemed  to  be  a 
Revolving Loan hereunder 
(notwithstanding any failure 
to satisfy any 
condition precedent set 
forth 
in Section 3) and, 
initially, shall 
bear interest at the 
rate then applicable to 
Revolving Loans that 
are Base 
Rate Loans. 
If a 
Letter of 
Credit Disbursement 
is deemed 
to be 
a Revolving 
Loan 
hereunder, Borrowers' 
obligation to 
pay the 
amount of 
such Letter 
of Credit 
Disbursement to 
Issuing Bank shall 
be automatically converted 
into an obligation 
to pay the 
resulting Revolving 
Loan. 
Promptly following 
receipt by 
Agent of 
any payment 
from Borrowers 
pursuant to 
this 
paragraph, Agent shall 
distribute such payment 
to Issuing Bank 
or, to 
the extent that 
Revolving 
Lenders have made payments pursuant to Section 2.11(e) to reimburse Issuing Bank, then to such 
Revolving Lenders and Issuing Bank as their interests may appear. 

 

 

 

 

 

 

 

 

(e)
 
Promptly following receipt 
of a notice 
of a Letter 
of Credit Disbursement 
pursuant to 
Section 2.11(d), 
each Revolving 
Lender agrees 
to fund 
its Pro 
Rata Share 
of any 
Revolving Loan deemed made pursuant to Section 2.11(d) on the same terms 
and conditions as if 
Borrowers had requested 
the amount thereof as 
a Revolving Loan and 
Agent shall promptly pay 
to Issuing Bank the amounts 
so received by it from 
the Revolving Lenders. 
By the issuance of a 
Letter of Credit 
(or an amendment 
or extension of 
a Letter of 
Credit) and without any 
further action 
on the 
part of 
Issuing Bank 
or the 
Revolving Lenders, 
Issuing Bank 
shall be 
deemed to 
have 
granted to each 
Revolving Lender, and each Revolving 
Lender shall be deemed 
to have purchased, 
a participation in each Letter of Credit issued by Issuing Bank, in an amount equal to its 
Pro Rata 
Share of such 
Letter of Credit, 
and each such 
Revolving Lender agrees 
to pay to 
Agent, for the 
account of 
Issuing  Bank, such 
Revolving  Lender's Pro 
Rata Share 
of any 
Letter of 
Credit 
Disbursement made by Issuing 
Bank under the applicable 
Letter of Credit. 
In consideration and 
in furtherance 
of the 
foregoing, each 
Revolving Lender 
hereby absolutely 
and unconditionally 
agrees to pay to Agent, for 
the account of Issuing Bank, such Revolving 
Lender's Pro Rata Share 
of each Letter of Credit 
Disbursement made by Issuing Bank 
and not reimbursed by Borrowers on 
the date due as 
provided in Section 2.11(d) 
, 
or of any reimbursement 
payment that is required 
to 
be refunded (or that Agent or Issuing Bank elects, based upon the advice of counsel, to refund) to 
Borrowers for any reason. 
Each Revolving Lender acknowledges and agrees that its obligation to 
deliver to Agent, for 
the account of Issuing Bank, 
an amount equal to 
its respective Pro Rata Share 
of each 
Letter of 
Credit Disbursement 
pursuant to 
this Section 
2.11(e) shall 
be absolute 
and 
unconditional and such remittance 
shall be made notwithstanding 
the occurrence or continuation 
of an Event of 
Default or Default or 
the failure to satisfy 
any condition set forth 
in Section 3. 
If 
any such 
Revolving Lender 
fails to 
make available 
to Agent 
the amount 
of such 
Revolving 
Lender's Pro 
Rata Share 
of a 
Letter of 
Credit Disbursement 
as provided 
in this 
Section, such 
Revolving Lender shall 
be deemed to be 
a Defaulting Lender 
and Agent (for the 
account of Issuing 
Bank) shall be entitled 
to recover such amount on 
demand from such Revolving Lender 
together 
with interest thereon at the Defaulting Lender Rate until paid in full. 
(f)
 
Each  Borrower  agrees 
to  indemnify, 
defend  and 
hold  harmless  each 
member  of 
the  Lender 
Group  (including 
Issuing  Bank 
and  its 
branches,  Affiliates, 
and 
correspondents) and 
each such 
Person's respective 
directors, officers, 
employees, attorneys 
and 
agents (each, including 
Issuing Bank, a 
"Letter of 
Credit Related Person") 
(to the fullest 
extent 
permitted by 
law) from 
and against 
any and 
all claims, 
demands, suits, 
actions, investigations, 
proceedings,  liabilities, 
fines,  costs, 
penalties,  and 
damages,  and 
all  reasonable 
fees  and 
disbursements of 
attorneys, experts, 
or consultants 
and all 
other costs 
and expenses 
actually 
incurred in connection therewith or 
in connection with the enforcement 
of this indemnification (as 
and when they are incurred and 
irrespective of whether suit is brought), 
which may be incurred by 
or awarded 
against any 
such Letter 
of Credit 
Related Person 
(other than 
Taxes, which 
shall be 
governed by Section 16) 
(the "Letter of Credit 
Indemnified Costs"), and which 
arise out of or 
in 
connection with, or as a result of: 
(i)
 
any Letter of Credit or any pre-advice of its issuance; 
(ii)
 
any  transfer,  sale, 
delivery,  surrender 
or  endorsement  (or 
lack 
thereof) of any Drawing 
Document at any time(s) 
held by any 
such Letter of Credit 
Related Person 
in connection with any Letter of Credit; 

 

(iii)
 
any action or 
proceeding arising out 
of, or in 
connection with, any 
Letter of Credit (whether administrative, judicial or in connection with arbitration), including any 
action or proceeding to compel or 
restrain any presentation or payment 
under any Letter of Credit, 
or for the wrongful dishonor of, or honoring a presentation under, any Letter of Credit; 
(iv)
 
any  independent  undertakings  issued  by  the  beneficiary  of  any 
Letter of Credit; 
(v)
 
any unauthorized 
instruction or 
request made 
to Issuing 
Bank in 
connection with 
any Letter 
of Credit 
or requested 
Letter of 
Credit, or 
any error, 
omission, 
interruption or delay 
in such instruction 
or request, whether 
transmitted by mail, courier, 
electronic 
transmission, SWIFT, 
or  any  other  telecommunication  including  communications  through  a 
correspondent; 
(vi)
 
an adviser, 
confirmer or 
other nominated 
person seeking 
to be 
reimbursed, indemnified or compensated; 
(vii)
 
any  third  party 
seeking  to  enforce 
the  rights  of 
an  applicant, 
beneficiary, nominated 
person, transferee, assignee 
of Letter of 
Credit proceeds or 
holder of an 
instrument or document; 
(viii)
 
the fraud, forgery or illegal action of parties other than the Letter of 
Credit Related Person; 
(ix)
 
any prohibition 
on payment 
or delay 
in payment 
of any 
amount 
payable by Issuing Bank to a beneficiary or transferee beneficiary of a Letter of Credit arising out 
of Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions; 
(x)
 
Issuing  Bank's  performance  of  the  obligations 
of  a  confirming 
institution or entity that wrongfully dishonors a confirmation; 
(xi)
 
any  foreign  language 
translation  provided 
to  Issuing 
Bank  in 
connection with any Letter of Credit; 
(xii)
 
any foreign law or usage as it relates to 
Issuing Bank's issuance of a 
Letter of Credit in 
support of a foreign 
guaranty including the expiration of 
such guaranty after the 
related Letter 
of Credit 
expiration date 
and any 
resulting drawing 
paid by 
Issuing Bank 
in 
connection therewith; or 
(xiii)
 
the acts or 
omissions, whether rightful 
or wrongful, of 
any present 
or future de 
jure or de 
facto governmental or 
regulatory authority or 
cause or 
event beyond the 
control of the Letter of Credit Related Person; 
provided, that such 
indemnity shall not 
be available to 
any Letter of 
Credit Related Person 
claiming 
indemnification under 
clauses (i) 
through (xiii) 
above to 
the extent 
that such 
Letter of 
Credit 
Indemnified Costs 
may be 
finally determined in 
a final, 
non-appealable judgment 
of a 
court of 
competent jurisdiction to 
have resulted directly 
from the gross 
negligence or willful 
misconduct 
of the 
Letter of Credit 
Related Person 
claiming indemnity. 
Borrowers hereby 
agree to 
pay the 

 

 

 

 

 

Letter of 
Credit Related 
Person claiming 
indemnity on 
demand from 
time to 
time all 
amounts 
owing under this Section 2.11(f). 
If and to the extent that the obligations of Borrowers under this 
Section  2.11(f)  are  unenforceable 
for  any  reason,  Borrowers  agree 
to  make  the  maximum 
contribution to 
the Letter 
of Credit 
Indemnified Costs 
permissible under 
applicable law. 
This 
indemnification provision shall survive termination of this Agreement and all Letters of Credit. 
(g)
 
The liability of Issuing Bank (or any other Letter of Credit Related Person) 
under, in connection 
with or arising out 
of any Letter 
of Credit (or pre-advice), 
regardless of the 
form or legal grounds 
of the action or 
proceeding, shall be limited 
to direct damages suffered 
by 
Borrowers that are caused directly by Issuing Bank's gross negligence or willful misconduct in (i) 
honoring a 
presentation under 
a Letter 
of Credit 
that on 
its face 
does not 
at least 
substantially 
comply with the terms and conditions 
of such Letter of Credit, (ii) failing to 
honor a presentation 
under a 
Letter of 
Credit that 
strictly complies 
with the 
terms and 
conditions of 
such Letter 
of 
Credit, or 
(iii) retaining 
Drawing Documents 
presented under 
a Letter 
of Credit. 
Borrowers' 
aggregate remedies against Issuing 
Bank and any Letter 
of Credit Related Person 
for wrongfully 
honoring a 
presentation under 
any Letter 
of Credit 
or wrongfully 
retaining honored 
Drawing 
Documents shall in no 
event exceed the aggregate 
amount paid by Borrowers 
to Issuing Bank in 
respect of the honored 
presentation in connection with 
such Letter of Credit 
under Section 2.11(d), 
plus
 
interest at the rate then 
applicable to Base Rate Loans hereunder. 
Borrowers shall take action 
to avoid and mitigate 
the amount of any damages 
claimed against Issuing Bank or 
any other Letter 
of Credit Related Person, including 
by enforcing its rights against 
the beneficiaries of the Letters 
of Credit. 
Any claim 
by Borrowers 
under or 
in connection 
with any 
Letter of 
Credit shall 
be 
reduced by an amount equal to 
the sum of (x) the amount 
(if any) saved by Borrowers as 
a result 
of the breach or 
alleged wrongful conduct complained 
of, and (y) the 
amount (if any) of 
the loss 
that would have been 
avoided had Borrowers taken 
all reasonable steps to 
mitigate any loss, and 
in case of 
a claim of 
wrongful dishonor, 
by specifically and 
timely authorizing Issuing 
Bank to 
effect a cure. 
(h)
 
Borrowers are responsible for the final text of the Letter of Credit as issued 
by Issuing 
Bank, irrespective 
of any 
assistance Issuing 
Bank may 
provide such 
as drafting 
or 
recommending text 
or by 
Issuing Bank's 
use or 
refusal to 
use text 
submitted by 
Borrowers. 
Borrowers understand that the final form of any Letter of 
Credit may be subject to such revisions 
and changes 
as are 
deemed necessary 
or appropriate 
by Issuing 
Bank, and 
Borrowers hereby 
consent to such 
revisions and 
changes not materially 
different from 
the application 
executed in 
connection therewith. Borrowers 
are solely responsible 
for the suitability 
of the Letter 
of Credit 
for Borrowers' 
purposes. 
If Borrowers 
request Issuing 
Bank to 
issue a 
Letter of 
Credit for 
an 
affiliated or 
unaffiliated third 
party (an "Account 
Party"), (i) 
such Account 
Party shall have 
no 
rights against Issuing Bank; (ii) Borrowers shall 
be responsible for the application and obligations 
under this Agreement; and 
(iii) communications (including notices) 
related to the respective 
Letter 
of Credit shall 
be among Issuing 
Bank and Borrowers. 
Borrowers will examine 
the copy of 
the 
Letter of Credit and any 
other documents sent by Issuing 
Bank in connection therewith and 
shall 
promptly notify Issuing Bank (not later than 
three (3) Business Days following Borrowers' receipt 
of documents from Issuing Bank) of any non-compliance with Borrowers' instructions and of any 
discrepancy in any document under any presentment 
or other irregularity. 
Borrowers understand 
and agree that Issuing Bank 
is not required to extend 
the expiration date of any 
Letter of Credit for 
any reason. With 
respect to any Letter of 
Credit containing an "automatic 
amendment" to extend 
the expiration date of such Letter of Credit, Issuing Bank, in 
its sole and absolute discretion, may 

 

 

give notice of non-extension of 
such Letter of Credit and, 
if Borrowers do not at 
any time want the 
then current expiration 
date of such 
Letter of Credit 
to be extended, 
Borrowers will so 
notify Agent 
and Issuing Bank 
at least 30 
calendar days before 
Issuing Bank is 
required to notify 
the beneficiary 
of such Letter of Credit or any advising bank of such non-extension pursuant to 
the terms of such 
Letter of Credit. 
(i)
 
Borrowers' reimbursement and payment obligations 
under this Section 2.11 
are absolute, unconditional and irrevocable and shall be performed strictly in accordance with the 
terms of this Agreement under any and all circumstances whatsoever, including: 
(i)
 
any lack of 
validity, enforceability 
or legal 
effect of 
any Letter of 
Credit, any Issuer 
Document, this Agreement, 
or any Loan 
Document, or any 
term or provision 
therein or herein; 
(ii)
 
payment against 
presentation of 
any draft, 
demand or 
claim for 
payment under any Drawing Document that does not comply in whole or 
in part with the terms of 
the applicable Letter of 
Credit or which proves 
to be fraudulent, forged 
or invalid in 
any respect 
or any statement 
therein being untrue 
or inaccurate in 
any respect, or 
which is signed, 
issued or 
presented by a Person or a 
transferee of such Person purporting to 
be a successor or transferee of 
the beneficiary of such Letter of Credit; 
(iii)
 
Issuing  Bank 
or  any 
of  its 
branches  or 
Affiliates  being 
the 
beneficiary of any Letter of Credit; 
(iv)
 
Issuing Bank 
or any 
correspondent honoring 
a drawing 
against a 
Drawing Document up 
to the amount 
available under any Letter 
of Credit even 
if such Drawing 
Document claims an amount in excess of the amount available under the Letter of Credit; 
(v)
 
the existence of 
any claim, 
set-off, defense 
or other 
right that 
any 
Loan Party or 
any of its 
Subsidiaries may have 
at any time 
against any beneficiary 
or transferee 
beneficiary, any assignee of proceeds, Issuing Bank or any other Person; 
(vi)
 
Issuing Bank or any 
correspondent honoring a drawing 
upon receipt 
of an electronic presentation under a 
Letter of Credit requiring the 
same, regardless of whether the 
original Drawing Documents arrive at Issuing Bank's counters or are different from the electronic 
presentation; 
(vii)
 
any other 
event, circumstance 
or conduct 
whatsoever, whether 
or 
not similar 
to any of 
the foregoing 
that might, 
but for 
this Section 
2.11(i), constitute 
a legal or 
equitable defense to or discharge of, or provide a 
right of set-off against, any Borrower's or any of 
its Subsidiaries' reimbursement and other 
payment obligations and liabilities, 
arising under, or in 
connection with, any Letter of Credit, 
whether against Issuing Bank, the 
beneficiary or any other 
Person; or 
(viii)
 
the fact that any 
Default or Event of 
Default shall have occurred 
and 
be continuing; 

 

 

 

provided, that subject to Section 2.11(g) above, the foregoing shall not release Issuing Bank from 
such liability to Borrowers as may be 
finally determined in a final, non-appealable judgment 
of a 
court of competent jurisdiction 
against Issuing Bank following reimbursement 
or payment of the 
obligations and liabilities, including reimbursement and 
other payment obligations, of Borrowers 
to Issuing Bank arising under, or in connection with, this Section 2.11 
or any Letter of Credit. 
(j)
 
Without limiting any 
other provision of 
this Agreement, Issuing Bank 
and 
each other Letter 
of Credit 
Related Person (if 
applicable) shall not 
be responsible to 
Borrowers 
for, and Issuing Bank's rights and remedies 
against Borrowers and the obligation of Borrowers to 
reimburse Issuing Bank for each drawing under each Letter of Credit shall not be impaired by: 
(i)
 
honor of a 
presentation under 
any Letter of 
Credit that 
on its 
face 
substantially complies with the terms and conditions of such Letter of Credit, even if the Letter of 
Credit requires strict compliance by the beneficiary; 
(ii)
 
honor of a 
presentation of any 
Drawing Document that 
appears on 
its face to have 
been signed, presented or 
issued (A) by any 
purported successor or 
transferee of 
any beneficiary or other Person required 
to sign, present or issue 
such Drawing Document or (B) 
under a new name of the beneficiary; 
(iii)
 
acceptance as a draft of any written or electronic demand or request 
for payment 
under a 
Letter of 
Credit, even 
if nonnegotiable 
or not 
in the 
form of 
a draft 
or 
notwithstanding any requirement 
that such draft, 
demand or request 
bear any or 
adequate reference 
to the Letter of Credit; 
(iv)
 
the identity or 
authority of any 
presenter or signer 
of any Drawing 
Document or 
the form, 
accuracy, genuineness 
or legal 
effect of 
any Drawing 
Document (other 
than Issuing Bank's determination 
that such Drawing Document 
appears on its 
face substantially 
to comply with the terms and conditions of the Letter of Credit); 
(v)
 
acting upon any instruction 
or request relative to 
a Letter of Credit 
or requested 
Letter of 
Credit that 
Issuing Bank 
in good 
faith believes 
to have 
been given 
by a 
Person authorized to give such instruction or request; 
(vi)
 
any errors, 
omissions, interruptions 
or delays 
in transmission 
or 
delivery of any message, advice or document (regardless of how sent or 
transmitted) or for errors 
in interpretation of technical terms or in translation or any delay in giving or failing to give notice 
to any Borrower; 
(vii)
 
any  acts, 
omissions  or 
fraud  by, 
or  the 
insolvency  of, 
any 
beneficiary, any nominated person or entity or any other 
Person or any breach of 
contract between 
any beneficiary and any Borrower or any of the parties 
to the underlying transaction to which the 
Letter of Credit relates; 
(viii)
 
assertion or waiver 
of any provision 
of the ISP 
or UCP that 
primarily 
benefits an issuer of 
a letter of credit, 
including any requirement that 
any Drawing Document be 
presented to it at a particular hour or place; 

 

 

 

(ix)
 
payment to 
any presenting 
bank (designated 
or permitted 
by the 
terms of 
the applicable 
Letter of 
Credit) claiming 
that it 
rightfully honored 
or is 
entitled to 
reimbursement or indemnity under Standard Letter of Credit Practice applicable to it; 
(x)
 
acting or failing 
to act as 
required or permitted 
under Standard Letter 
of Credit Practice applicable to 
where Issuing Bank has 
issued, confirmed, advised or 
negotiated 
such Letter of Credit, as the case may be; 
(xi)
 
honor of 
a presentation 
after the 
expiration date 
of any 
Letter of 
Credit notwithstanding that a presentation was made prior to such expiration 
date and dishonored 
by Issuing Bank if subsequently Issuing Bank or any court or other finder of fact determines such 
presentation should have been honored; 
(xii)
 
dishonor of any presentation that does 
not strictly comply or that is 
fraudulent, forged or otherwise not entitled to honor; or 
(xiii)
 
honor of a 
presentation that is 
subsequently determined by 
Issuing 
Bank to 
have been 
made in 
violation of 
international, federal, 
state or 
local restrictions 
on the 
transaction of business with certain prohibited Persons. 
(k)
 
Borrowers shall pay immediately upon demand to Agent for the account of 
Issuing Bank 
as non-refundable 
fees, commissions, 
and charges 
(it being 
acknowledged and 
agreed that any charging of such fees, commissions, and charges to the Loan Account pursuant to 
the provisions of 
Section 2.6(d) shall 
be deemed to 
constitute a demand 
for payment thereof 
for 
the purposes of this 
Section 2.11(k)): 
(i) a fronting fee 
which shall be 
imposed by Issuing Bank 
equal to 
.250% 
per annum
 
times the 
average amount 
of the 
Letter of 
Credit Usage 
during the 
immediately preceding month, 
plus
 
(ii) any and 
all other customary 
commissions, fees and 
charges 
then in effect imposed by, 
and any and all expenses incurred by, 
Issuing Bank, or by any adviser, 
confirming institution or entity or 
other nominated person, relating to Letters of 
Credit, at the time 
of issuance of 
any Letter of 
Credit and upon 
the occurrence of 
any other activity 
with respect to 
any  Letter  of  Credit  (including 
transfers,  assignments  of  proceeds,  amendments, 
drawings, 
extensions or cancellations). 
(l)
 
If by reason of (x) 
any Change in Law, 
or (y) compliance by Issuing 
Bank 
or any other member 
of the Lender Group with 
any direction, request, or requirement 
(irrespective 
of whether 
having the 
force of 
law) of 
any Governmental 
Authority or 
monetary authority 
including, Regulation 
D of 
the Board 
of Governors 
as from 
time to 
time in 
effect (and 
any 
successor thereto): 
(i)
 
any reserve, deposit, 
or similar requirement 
is or shall 
be imposed 
or modified in respect 
of any Letter of 
Credit issued or caused 
to be issued hereunder 
or hereby, 
or any Loans or obligations to make Loans hereunder or hereby, or 
(ii)
 
there shall be imposed on Issuing Bank or any other member of 
the 
Lender Group any 
other condition regarding 
any Letter of 
Credit, Loans, or 
obligations to make 
Loans hereunder, 

 

 

 

 

 

 

 

 

 

and the result of the foregoing is to increase, directly 
or indirectly, the cost to Issuing Bank or any 
other member of the Lender Group of issuing, making, participating in, or maintaining any Letter 
of Credit or to reduce the amount receivable 
in respect thereof, then, and in 
any such case, Agent 
may, at 
any time 
within a 
reasonable period 
after the 
additional cost 
is incurred or 
the amount 
received is 
reduced, notify 
Borrowers, and 
Borrowers shall 
pay within 
30 days 
after demand 
therefor, such amounts 
as Agent may specify to 
be necessary to compensate Issuing 
Bank or any 
other member 
of the 
Lender Group 
for such 
additional cost 
or reduced 
receipt, together 
with 
interest on such amount from the 
date of such demand until payment 
in full thereof at the 
rate then 
applicable to Base 
Rate Loans hereunder; 
provided, that (A) 
Borrowers shall not 
be required to 
provide any compensation 
pursuant to 
this Section 2.11(l) 
for any such 
amounts incurred 
more 
than 180 days prior to the date on which the demand for 
payment of such amounts is first made to 
Borrowers, and (B) if an event or circumstance 
giving rise to such amounts is retroactive, then 
the 
180-day period 
referred to 
above shall 
be extended 
to include 
the period 
of retroactive 
effect 
thereof. 
The determination by 
Agent of any 
amount due pursuant 
to this Section 
2.11(l), as 
set 
forth in a certificate setting forth the 
calculation thereof in reasonable detail, shall, 
in the absence 
of manifest or demonstrable error, be final and conclusive and binding on all of 
the parties hereto. 
(m)
 
Each standby Letter of 
Credit shall expire not 
later than the date 
that is 12 
months after the date of the issuance of such Letter of Credit; provided, that any standby 
Letter of 
Credit may provide for the automatic extension thereof for any number of additional periods each 
of up 
to one 
year in duration; 
provided further, 
that with 
respect to 
any Letter 
of Credit 
which 
extends beyond the Maturity Date, Letter of Credit Collateralization shall be provided therefor on 
or before the date that 
is five Business Days prior 
to the Maturity Date. 
Each commercial Letter 
of Credit shall 
expire on the 
earlier of (i) 
120 days after 
the date of 
the issuance of such 
commercial 
Letter of Credit and (ii) five Business Days prior to the Maturity Date. 
(n)
 
If (i) any Event 
of Default shall occur and 
be continuing, or (ii) 
Availability 
shall at 
any time 
be less 
than zero, 
then on 
the Business 
Day following 
the date 
when the 
Administrative Borrower receives notice from Agent 
or the Required Lenders (or, 
if the maturity 
of the 
Obligations has 
been accelerated, 
Revolving Lenders 
with Letter 
of Credit 
Exposure 
representing greater 
than 50% 
of the 
total Letter 
Credit Exposure) 
demanding Letter 
of Credit 
Collateralization pursuant 
to this 
Section 2.11(n) 
upon such 
demand, Borrowers 
shall provide 
Letter of 
Credit Collateralization 
with respect 
to the 
then existing 
Letter of 
Credit Usage. 
If 
Borrowers fail to provide Letter 
of Credit Collateralization as required by 
this Section 2.11(n), the 
Revolving Lenders may 
(and, upon direction 
of Agent, shall) 
advance, as Revolving 
Loans the 
amount of the cash collateral required 
pursuant to the Letter of Credit 
Collateralization provision 
so that the then existing Letter of 
Credit Usage is cash collateralized in accordance 
with the Letter 
of Credit Collateralization provision (whether or not the 
Revolver Commitments have terminated, 
an Overadvance exists or the conditions in Section 3 are satisfied). 
(o)
 
Unless otherwise expressly agreed by Issuing Bank 
and Borrowers when a 
Letter of Credit is issued, (i) the rules 
of the ISP shall apply to each 
standby Letter of Credit, and 
(ii) the rules of the UCP shall apply to each commercial Letter of Credit. 
(p)
 
Issuing  Bank  shall  be 
deemed  to  have  acted 
with  due  diligence  and 
reasonable care if Issuing Bank's conduct is in accordance with Standard Letter of Credit Practice 
or in accordance with this Agreement. 

 

 

 

 

 

 

 

(q)
 
In the event of a direct conflict between 
the provisions of this Section 2.11 
and any provision 
contained in any Issuer 
Document, it is 
the intention of 
the parties hereto 
that 
such provisions be read together and construed, 
to the fullest extent possible, to be in concert 
with 
each other. 
In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, 
the terms and provisions of this Section 2.11 shall control and govern. 
(r)
 
The provisions 
of this 
Section 2.11 
shall survive 
the termination 
of this 
Agreement and the repayment in 
full of the Obligations with 
respect to any Letters of Credit 
that 
remain outstanding. 
(s)
 
At Borrowers' 
costs and 
expense, Borrowers 
shall execute 
and deliver 
to 
Issuing Bank such additional certificates, 
instruments and/or documents and 
take such additional 
action as may be reasonably requested by Issuing Bank to enable Issuing Bank to 
issue any Letter 
of Credit 
pursuant to 
this Agreement 
and related 
Issuer Document, 
to protect, 
exercise and/or 
enforce Issuing Banks' rights and interests under this Agreement or to give effect to the terms and 
provisions of 
this Agreement 
or any 
Issuer Document. 
Each Borrower 
irrevocably appoints 
Issuing Bank as its 
attorney-in-fact and authorizes 
Issuing Bank, without notice 
to Borrowers, to 
execute and deliver ancillary documents and 
letters customary in the letter 
of credit business that 
may include but 
are not limited 
to advisements, indemnities, 
checks, bills of 
exchange and issuance 
documents. 
The power 
of attorney 
granted by 
the Borrowers 
is limited 
solely to 
such actions 
related to 
the issuance, 
confirmation or 
amendment of 
any Letter 
of Credit 
and to 
ancillary 
documents or letters customary in the 
letter of credit business. 
This appointment is coupled with 
an interest. 
2.12.
 
LIBOR Option
. 
(a)
 
Interest and Interest 
Payment Dates
. 
In lieu of 
having interest charged 
at the rate based upon 
the Base Rate, Borrowers 
shall have the option, 
subject to Section 2.12(b) 
below (the "LIBOR 
Option") to 
have interest on 
all or a 
portion of the 
Revolving Loans or 
the 
Term Loan be 
charged (whether at the time when 
made (unless otherwise provided herein), upon 
conversion from a Base Rate Loan to a LIBOR 
Rate Loan, or upon continuation of a LIBOR Rate 
Loan as a LIBOR Rate Loan) 
at a rate of interest based upon 
the LIBOR Rate. 
Interest on LIBOR 
Rate Loans 
shall be 
payable on 
the earliest 
of (i) 
the last 
day of 
the Interest 
Period applicable 
thereto; provided, 
that subject 
to the 
following clauses 
(ii) and 
(iii), in 
the case 
of any 
Interest 
Period greater than 
three months in duration, 
interest shall be 
payable at three month 
intervals after 
the commencement of the 
applicable Interest Period 
and on the last 
day of such Interest 
Period), 
(ii) the date 
on which all 
or any portion 
of the Obligations 
are accelerated pursuant 
to the terms 
hereof, or (iii) 
the date on 
which this Agreement 
is terminated pursuant to 
the terms hereof. 
On 
the last 
day of 
each applicable 
Interest Period, 
unless Borrowers 
have properly 
exercised the 
LIBOR Option 
with respect 
thereto, the 
interest rate 
applicable to 
such  LIBOR Rate 
Loan 
automatically shall convert to the 
rate of interest then 
applicable to Base Rate 
Loans of the same 
type hereunder. 
At any time that an 
Event of Default has 
occurred and is continuing, 
at the written 
election of Agent or 
the Required Lenders, Borrowers 
no longer shall 
have the option 
to request 
that Revolving Loans 
or any portion 
of the Term Loan bear 
interest at a 
rate based upon 
the LIBOR 
Rate. 

 

 

 

 

 

 

(b)
 
LIBOR Election
. 
(i)
 
Borrowers may, 
at any 
time and 
from time 
to time, 
so long 
as 
Borrowers have not 
received a notice 
from Agent (which 
notice Agent may 
elect to give 
or not 
give in its 
discretion unless Agent 
is directed to 
give such notice 
by the Required 
Lenders, in which 
case, it shall give the notice 
to Borrowers), after the occurrence and 
during the continuance of an 
Event of Default, 
to terminate 
the right of 
Borrowers to exercise 
the LIBOR 
Option during the 
continuance of such 
Event of Default, 
elect to exercise 
the LIBOR Option 
by notifying Agent 
prior 
to 1:00 
p.m. at 
least three 
Business Days 
prior to 
the commencement 
of the 
proposed Interest 
Period (the 
"LIBOR Deadline"). 
Notice of 
Borrowers' election 
of the 
LIBOR Option 
for a 
permitted portion of the Revolving Loans 
or the Term Loan and an Interest Period pursuant to 
this 
Section shall 
be made 
by delivery 
to Agent 
of a 
LIBOR Notice 
received by 
Agent before 
the 
LIBOR Deadline. 
Promptly upon its 
receipt of each 
such LIBOR Notice, 
Agent shall provide 
a 
copy thereof to each of the affected Lenders. 
(ii)
 
Each LIBOR Notice shall be 
irrevocable and binding on Borrowers. 

In connection 
with each 
LIBOR Rate 
Loan, each 
Borrower shall 
indemnify, defend, 
and hold 
Agent and the Lenders 
harmless against any loss, 
cost, or expense actually 
incurred by Agent 
or 
any Lender as a result of (A) 
the payment or required assignment of 
any principal of any LIBOR 
Rate Loan other than on the last day of an Interest 
Period applicable thereto (including as a result 
of an Event of Default), (B) the conversion of any LIBOR Rate Loan other than on the last day of 
the Interest Period applicable thereto, 
or (C) the failure to borrow, convert, continue or 
prepay any 
LIBOR Rate 
Loan on 
the date 
specified in 
any LIBOR 
Notice delivered 
pursuant hereto 
(such 
losses, costs, 
or expenses, 
"Funding Losses"). 
A certificate 
of Agent 
or a 
Lender delivered 
to 
Borrowers setting forth in reasonable 
detail any amount or amounts 
that Agent or such 
Lender is 
entitled  to  receive  pursuant  to  this  Section  2.12  shall  be  conclusive 
absent  manifest  error. 

Borrowers shall pay such amount to 
Agent or the Lender, as applicable, within 30 days 
of the date 
of its receipt of such certificate. 

(iii)
 
Unless Agent, 
in its 
sole discretion, 
agrees otherwise, 
Borrowers 
shall have not more than 
five LIBOR Rate Loans in effect 
at any given time. 
Borrowers may only 
exercise the LIBOR Option for proposed LIBOR Rate Loans of at least $1,000,000. 
(c)
 
Conversion; Prepayment
. 
Borrowers may convert LIBOR Rate Loans to 
Base Rate Loans or 
prepay LIBOR Rate Loans 
at any time; provided, 
that in the event 
that LIBOR 
Rate Loans 
are converted 
or prepaid 
on any 
date that 
is not 
the last 
day of 
the Interest 
Period 
applicable thereto, 
including as 
a result 
of any 
prepayment through 
the required 
application by 
Agent of any 
payments or proceeds of 
Collateral in accordance with 
Section 2.4(b) or 
for any other 
reason, including 
early termination 
of the 
term of 
this Agreement 
or acceleration 
of all 
or any 
portion of the 
Obligations pursuant to 
the terms hereof, 
each Borrower shall 
indemnify, defend, 
and hold Agent 
and the Lenders 
and their Participants harmless 
against any and 
all Funding Losses 
in accordance with Section 2.12 (b)(ii). 
(d)
 
Special Provisions Applicable to LIBOR Rate
. 
(i)
 
The LIBOR 
Rate may 
be adjusted 
by Agent 
with respect 
to any 
Lender on a prospective 
basis to take into 
account any additional or 
increased costs to such 
Lender 

 

 

 

 

 

 

 

of maintaining or 
obtaining any 
eurodollar deposits 
or increased costs 
(other than 
Taxes which 
shall be 
governed by 
Section 16), 
in each 
case, due 
to changes 
in applicable 
law occurring 
subsequent to the commencement of the 
then applicable Interest Period, including any Changes in 
Law and changes 
in the reserve 
requirements imposed by 
the Board of 
Governors, which additional 
or increased costs would 
increase the cost of 
funding or maintaining loans 
bearing interest at the 
LIBOR Rate. 
In any such 
event, the affected 
Lender shall give 
Borrowers and Agent 
notice of 
such a determination 
and adjustment and 
Agent promptly shall 
transmit the notice 
to each other 
Lender and, upon its receipt 
of the notice from the 
affected Lender, Borrowers 
may, by notice 
to 
such affected Lender (A) require such Lender 
to furnish to Borrowers a statement 
setting forth in 
reasonable detail 
the basis 
for adjusting 
such LIBOR 
Rate and 
the method 
for determining 
the 
amount of such 
adjustment, or (B) 
repay the LIBOR 
Rate Loans of 
such Lender with 
respect to 
which such adjustment is made (together with any amounts due under Section 2.12(b)(ii)). 
(ii)
 
Subject to the 
provisions set forth 
in Section 2.12(d)(iii) 
below, in 
the event that 
any change in 
market conditions or 
any Change in 
Law shall at 
any time after the 
date hereof, 
in the 
reasonable opinion 
of any 
Lender, make 
it unlawful 
or impractical 
for such 
Lender to fund or 
maintain LIBOR Rate Loans 
or to continue such 
funding or maintaining, or 
to 
determine or 
charge interest 
rates at 
the LIBOR 
Rate, such 
Lender shall 
give notice 
of such 
changed circumstances to 
Agent and Borrowers 
and Agent promptly 
shall transmit the 
notice to 
each other 
Lender and 
(y) in 
the case 
of any 
LIBOR Rate 
Loans of 
such Lender 
that are 
outstanding, the date 
specified in such 
Lender's notice shall 
be deemed to 
be the last 
day of the 
Interest Period 
of such 
LIBOR Rate 
Loans, and 
interest upon 
the LIBOR 
Rate Loans 
of such 
Lender thereafter 
shall accrue 
interest at 
the rate 
then applicable 
to Base 
Rate Loans, 
and (z) 
Borrowers shall not 
be entitled 
to elect 
the LIBOR 
Option until 
such Lender determines 
that it 
would no longer be unlawful or impractical to do so. 
(iii)
 
Effect of Benchmark Transition Event. 
(A)
 
Benchmark Replacement. 
Notwithstanding anything to 
the 
contrary herein or in 
any other Loan Document, 
upon the occurrence of 
a Benchmark Transition 
Event or an Early Opt-in Election, as applicable, Agent and Administrative Borrower may amend 
this Agreement to replace the 
LIBOR Rate with a 
Benchmark Replacement. Any such 
amendment 
with respect to a Benchmark Transition Event will become effective at 
5:00 p.m. on the fifth (5th) 
Business Day after Agent has 
posted such proposed amendment to 
all Lenders and Administrative 
Borrower so 
long as 
Agent has 
not received, 
by such 
time, written 
notice of 
objection to 
such 
amendment from Lenders comprising the 
Required Lenders. Any such 
amendment with respect to 
an Early Opt-in Election will 
become effective on the date 
that Lenders comprising the Required 
Lenders  have  delivered 
to  Agent  written 
notice  that 
such  Required 
Lenders  accept  such 
amendment. No replacement of the LIBOR Rate with a Benchmark Replacement pursuant 
to this 
Section 2.12(d)(iii) will occur prior to the applicable Benchmark Transition Start Date. 
(B)
 
Benchmark   Replacement 
Conforming   Changes. 
In 
connection with the 
implementation of a 
Benchmark Replacement, Agent 
will have the 
right to 
make Benchmark 
Replacement Conforming 
Changes from 
time to 
time and, 
notwithstanding 
anything to the 
contrary herein or 
in any other 
Loan Document, any 
amendments implementing 
such Benchmark 
Replacement Conforming 
Changes will 
become effective 
without any 
further 
action or consent of any other party to this Agreement. 

 

 

 

 

 

 

(C)
 
Notices;   Standards   for   Decisions   and   Determinations. 

Agent will promptly 
notify Administrative Borrower 
and the Lenders 
of (1) any occurrence 
of a 
Benchmark Transition Event or an Early 
Opt-in Election, as applicable, and 
its related Benchmark 
Replacement  Date 
and  Benchmark 
Transition  Start 
Date,  (2) 
the  implementation 
of  any 
Benchmark  Replacement,  (3) the  effectiveness  of  any  Benchmark  Replacement  Conforming 
Changes, and (4) the commencement or 
conclusion of any Benchmark Unavailability Period. 
Any 
determination, decision or election that 
may be made by Agent 
or Lenders pursuant to this 
Section 
2.12(d)(iii) including 
any determination 
with respect 
to a 
tenor, rate 
or adjustment 
or of 
the 
occurrence or non-occurrence of an 
event, circumstance or date and any 
decision to take or refrain 
from taking any action, will be conclusive and binding absent manifest 
error and may be made in 
its or their sole 
discretion and without consent 
from any other party 
hereto, except, in 
each case, 
as expressly required pursuant to this Section 2.12(d)(iii). 
(D)
 
Benchmark  Unavailability  Period. 
Upon  Administrative 
Borrower's  receipt  of  notice  of  the 
commencement  of  a  Benchmark  Unavailability 
Period, 
Administrative Borrower 
may revoke any 
request for 
a LIBOR Borrowing 
of, conversion 
to or 
continuation of 
LIBOR Rate Loans 
to be 
made, converted or 
continued during 
any Benchmark 
Unavailability Period and, failing 
that, Administrative Borrower will 
be deemed to have 
converted 
any such request into a request for a Borrowing of 
or conversion to Base Rate Loans. During any 
Benchmark Unavailability Period, the component 
of Base Rate based 
upon the LIBOR Rate 
will 
not be used in any determination of the Base Rate. 
(e)
 
No  Requirement 
of  Matched 
Funding
. 
Anything  to 
the  contrary 
contained herein notwithstanding, neither Agent, nor 
any Lender, nor any 
of their Participants, is 
required actually to acquire eurodollar 
deposits to fund or otherwise match 
fund any Obligation as 
to which interest accrues at the LIBOR Rate. 
2.13.
 
Capital Requirements
. 
(a)
 
If, after the date hereof, Issuing Bank or any Lender determines that (i) any 
Change in 
Law regarding 
capital, liquidity 
or reserve 
requirements for 
banks or 
bank holding 
companies, or 
(ii) compliance 
by Issuing 
Bank or 
such Lender, 
or their 
respective parent 
bank 
holding companies, 
with any 
guideline, request 
or directive 
of any 
Governmental Authority 
regarding capital adequacy or liquidity requirements (whether or not having the force of law), has 
the effect 
of reducing 
the return 
on Issuing 
Bank's, such 
Lender's, or 
such holding 
companies' 
capital or 
liquidity as 
a consequence 
of Issuing 
Bank's or 
such Lender's 
commitments, Loans, 
participations or 
other obligations 
hereunder to 
a level 
below that 
which Issuing 
Bank, such 
Lender, or such holding 
companies could have 
achieved but for 
such Change in 
Law or compliance 
(taking into consideration Issuing Bank's, such Lender's, or 
such holding companies' then existing 
policies with respect 
to capital adequacy or 
liquidity requirements and assuming 
the full utilization 
of such entity's 
capital) by any 
amount deemed by 
Issuing Bank or 
such Lender to 
be material, 
then Issuing Bank or such Lender may notify Borrowers and Agent thereof. 
Following receipt of 
such notice, Borrowers agree to pay 
Issuing Bank or such Lender on demand 
the amount of such 
reduction of return 
of capital as 
and when such 
reduction is determined, 
payable within 30 
days 
after presentation by Issuing 
Bank or such Lender 
of a statement in 
the amount and setting 
forth 
in reasonable detail Issuing Bank's or such Lender's calculation thereof and the assumptions upon 
which such 
calculation was 
based (which 
statement shall 
be deemed 
true and 
correct absent 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

manifest error). 
In determining such 
amount, Issuing Bank 
or such Lender 
may use any 
reasonable 
averaging and attribution methods. 
Failure or delay on the part of Issuing 
Bank or any Lender to 
demand compensation pursuant 
to this Section 
shall not constitute 
a waiver of Issuing 
Bank's or 
such Lender's right to demand such compensation; provided, that Borrowers shall not be required 
to compensate 
Issuing Bank 
or a 
Lender pursuant 
to this 
Section for 
any reductions 
in return 
incurred more than 180 days prior 
to the date that Issuing Bank 
or such Lender notifies Borrowers 
of such 
Change in 
Law giving 
rise to 
such reductions 
and of 
such Lender's 
intention to 
claim 
compensation therefor; provided further, that if such claim arises by reason of the Change in Law 
that is retroactive, 
then the 180-day period 
referred to above 
shall be extended to 
include the period 
of retroactive effect thereof. 
(b)
 
If Issuing Bank 
or any Lender 
requests additional or 
increased costs referred 
to in Section 2.11(l) or 
Section 2.12(d)(i) or amounts 
under Section 2.13(a) or 
sends a notice under 
Section 2.12(d)(ii) relative to changed circumstances (such 
Issuing Bank or Lender, an "Affected 
Lender"),  then,  at  the  request  of  Administrative  Borrower,  such 
Affected  Lender  shall  use 
reasonable efforts to promptly designate a different one of 
its lending offices or to assign its rights 
and obligations hereunder to another of its 
offices or branches, if (i) in the reasonable 
judgment of 
such Affected Lender, such designation or 
assignment would eliminate or 
reduce amounts payable 
pursuant to Section 2.11(l), 
Section 2.12(d)(i) or Section 
2.13(a), as applicable, or 
would eliminate 
the illegality 
or impracticality 
of funding 
or maintaining 
LIBOR Rate 
Loans, and 
(ii) in 
the 
reasonable judgment of such Affected 
Lender, such designation 
or assignment would not 
subject 
it  to 
any  material  unreimbursed 
cost  or 
expense  and 
would  not 
otherwise  be 
materially 
disadvantageous to it. 
Borrowers agree 
to pay 
all reasonable 
out-of-pocket costs 
and expenses 
incurred by such Affected Lender 
in connection with any 
such designation or assignment. 
If, after 
such reasonable efforts, such Affected 
Lender does not so designate a different 
one of its lending 
offices or 
assign its 
rights to 
another of 
its offices 
or branches 
so as 
to eliminate 
Borrowers' 
obligation to pay any future amounts to such Affected Lender pursuant to Section 2.11(l), 
Section 
2.12(d)(i) or Section 2.13(a), as applicable, 
or to enable Borrowers to obtain 
LIBOR Rate Loans, 
then Borrowers (without prejudice 
to any amounts then 
due to such 
Affected Lender under Section 
2.11(l), 
Section 2.12(d)(i) or Section 2.13(a), as applicable) may, unless prior to the effective date 
of any such 
assignment the 
Affected Lender 
withdraws its 
request for 
such additional 
amounts 
under Section 2.11(l), 
Section 2.12(d)(i) or Section 2.13(a), as applicable, or indicates that it is no 
longer unlawful or impractical to fund or 
maintain LIBOR Rate Loans, may designate 
a different 
Issuing Bank or substitute a Lender or prospective Lender, 
in each case, reasonably acceptable to 
Agent to 
purchase the 
Obligations owed 
to such 
Affected Lender 
and such 
Affected Lender's 
commitments hereunder 
(a "Replacement 
Lender"), and 
if such 
Replacement Lender 
agrees to 
such purchase, such Affected 
Lender shall assign to 
the Replacement Lender its 
Obligations and 
commitments, and 
upon such 
purchase by 
the Replacement 
Lender, which 
such Replacement 
Lender shall be deemed 
to be "Issuing Bank" 
or a "Lender" 
(as the case may 
be) for purposes of 
this Agreement and such 
Affected Lender shall 
cease to be "Issuing 
Bank" or a "Lender" 
(as the 
case may be) for purposes of this Agreement. 
(c)
 
Notwithstanding anything herein to the contrary, the protection of Sections 
2.11(l), 
2.12(d), and 
2.13 shall 
be available 
to Issuing 
Bank and 
each Lender 
(as applicable) 
regardless of any 
possible contention of 
the invalidity or 
inapplicability of the 
law, rule, regulation, 
judicial ruling, judgment, guideline, treaty or 
other change or condition which shall have 
occurred 
or been imposed, so long as it 
shall be customary for issuing banks or 
lenders affected thereby to 

 

 

 

 

 

 

comply therewith. 
Notwithstanding any 
other provision 
herein, neither 
Issuing Bank 
nor any 
Lender shall demand compensation 
pursuant to this 
Section 2.13 if it 
shall not at the 
time be the 
general policy or 
practice of Issuing 
Bank or such 
Lender (as the 
case may be) 
to demand such 
compensation in similar circumstances under 
comparable provisions of other credit agreements, 
if 
any. 
2.14.
 
Incremental Facilities
. 
(a)
 
At any time during the 
period from and after the 
Closing Date through but 
excluding the date 
that is the 
3 year anniversary of 
the Closing Date, 
at the option 
of Borrowers 
(but subject to 
the conditions set 
forth in clause 
(b) below), the 
Revolver Commitments 
and the 
Maximum Revolver Amount 
may be increased 
by an amount 
in the aggregate 
for all such 
increases 
of the Revolver 
Commitments and the 
Maximum Revolver Amount 
not to exceed 
the Available 
Increase Amount (each such increase, 
an "Increase"). 
Agent shall invite each Lender 
to increase 
its Revolver Commitments 
(it being understood 
that no Lender 
shall be obligated 
to increase its 
Revolver Commitments) in 
connection with a 
proposed Increase at 
the interest margin 
proposed 
by Borrowers, and if 
sufficient Lenders do 
not agree to increase 
their Revolver Commitments 
in 
connection with 
such proposed 
Increase, then 
Agent or 
Borrowers may 
invite any 
prospective 
lender who is reasonably 
satisfactory to Agent and 
Borrowers to become a 
Lender in connection 
with a proposed Increase. 
Any Increase shall be in an amount 
of at least $5,000,000 and integral 
multiples of $5,000,000 
in excess thereof. 
In no event 
may the Revolver 
Commitments and the 
Maximum Revolver Amount 
to be increased 
pursuant to this 
Section 2.14 on 
more than 2 
occasions 
in the aggregate for all 
such Increases. 
Additionally, for 
the avoidance of doubt, 
it is understood 
and  agreed  that  in 
no  event  shall  the 
aggregate  amount  of  the 
Increases  to  the  Revolver 
Commitments exceed $10,000,000. 
(b)
 
Each of the 
following shall be 
conditions precedent to 
any Increase of the 
Revolver Commitments and the Maximum Revolver Amount in connection therewith: 
(i)
 
Agent or Borrowers have obtained 
the commitment of one or 
more 
Lenders (or other prospective lenders) reasonably satisfactory to Agent and Borrowers to provide 
the applicable Increase and any 
such Lenders (or prospective lenders), 
Borrowers, and Agent have 
signed a 
joinder agreement 
to this 
Agreement (an 
"Increase Joinder"), 
in form 
and substance 
reasonably satisfactory to Agent, to which such Lenders (or 
prospective lenders), Borrowers, and 
Agent are party, 
(ii)
 
each of the 
conditions precedent set 
forth in Section 
3.2 are satisfied, 
(iii)
 
in connection 
with any 
Increase, if 
any Loan 
Party or 
any of 
its 
Subsidiaries owns or will acquire any Margin Stock, Borrowers shall deliver to Agent an updated 
Form U-1 
(with sufficient 
additional originals 
thereof for 
each  Lender), duly 
executed  and 
delivered by 
the Borrowers, 
together with 
such other 
documentation as 
Agent shall 
reasonably 
request, in order 
to enable Agent 
and the Lenders 
to comply with 
any of the 
requirements under 
Regulations T, U or X of the Federal Reserve Board, 
(iv)
 
Borrowers have delivered 
to Agent updated 
pro forma
 
Projections 
(after  giving  effect  to 
the  applicable  Increase)  for 
the  Loan  Parties  and 
their  Subsidiaries 

 

 

 

 

 

 

 

 

 

evidencing compliance on 
a 
pro forma
 
basis with Section 
7 for the 
twelve months (on 
a month-
by-month basis) immediately following the proposed date of the applicable Increase, and 
(v)
 
The interest rate margins with respect to the Revolving Loans to 
be 
made pursuant to 
the increased Revolver 
Commitments shall be 
the same as 
the interest rate 
margin 
applicable to Revolving 
Loans hereunder immediately 
prior to 
the applicable 
Increase Date (as 
defined below)
 
(the date 
of the 
effectiveness of 
the increased 
Revolver Commitments 
and the 
Maximum Revolver Amount, the 
"Increase Date"). 
Any Increase Joinder 
may, with 
the consent 
of Agent, Borrowers 
and the 
Lenders or prospective 
lenders agreeing 
to the 
proposed Increase, 
effect such amendments to this Agreement and the other Loan Documents as may be necessary to 
effectuate the provisions of this Section 2.14. 
 
 
(c)
 
Unless otherwise 
specifically provided 
herein, (i) 
all references 
in this 
Agreement and any other Loan 
Document to Revolving Loans shall 
be deemed, unless the context 
otherwise  requires,  to 
include  Revolving  Loans 
made  pursuant  to 
the  increased  Revolver 
Commitments  and  Maximum  Revolver 
Amount  pursuant  to  this 
Section  2.14,  and  (ii) 
all 
references in this 
Agreement and any 
other Loan Document 
to the Term 
Loan shall be 
deemed, 
unless the context 
otherwise requires, to 
include any Additional 
Portion of the 
Term Loan 
made 
pursuant to the increased Term Loan Amount pursuant to this Section 2.14. 
(d)
 
Each of the 
Lenders having a 
Revolver Commitment prior 
to the Increase 
Date (the "Pre-Increase Revolver 
Lenders") shall assign to 
any Lender which 
is acquiring a new 
or additional Revolver Commitment on the 
Increase Date (the "Post-Increase Revolver Lenders"), 
and such Post-Increase Revolver Lenders 
shall purchase from each Pre-Increase 
Revolver Lender, 
at the principal amount 
thereof, such interests 
in the Revolving 
Loans and participation interests 
in Letters of Credit on such Increase Date as shall be necessary in order that, after giving effect to 
all such assignments and purchases, 
such Revolving Loans and participation interests 
in Letters of 
Credit will be held by Pre-Increase Revolver Lenders and Post-Increase 
Revolver Lenders ratably 
in  accordance 
with  their 
Pro  Rata 
Share  after 
giving  effect 
to  such 
increased  Revolver 
Commitments. 
(e)
 
The Revolving 
Loans, Revolver 
Commitments, and 
Maximum Revolver 
Amount established 
pursuant to 
this Section 
2.14 shall 
constitute Revolving 
Loans, Revolver 
Commitments, and 
Maximum Revolver 
Amount under, 
and shall 
be entitled 
to all 
the benefits 
afforded by, 
this Agreement 
and the 
other Loan 
Documents, and 
shall, without 
limiting the 
foregoing, benefit equally 
and ratably from any 
guarantees and the security 
interests created by the 
Loan Documents. 
Borrowers shall take 
any actions reasonably required 
by Agent to 
ensure and 
demonstrate that the 
Liens and security 
interests granted by 
the Loan Documents 
continue to be 
perfected under 
the Code 
or otherwise 
after giving effect 
to the 
establishment of any 
such new 
Revolver Commitments and Maximum Revolver Amount. 
2.15.
 
Currencies
. 
The Revolving 
Loans and other 
Obligations shall 
be made 
and 
repaid in Dollars. 
Payments made in 
a currency other 
than the currency 
in which the 
applicable 
Obligations are 
denominated may 
be accepted 
by the 
Agent in 
its sole 
discretion and, 
if so 
accepted, the Borrowers 
agree that the 
Agent may convert 
the payment made 
to the currency 
of 
the applicable Obligations at the applicable Spot Rate in accordance with its normal practices. 

 

 

 

 

2.16.
 
Joint and Several Liability of Borrowers
. 
(a)
 
Each Borrower is accepting joint 
and several liability hereunder and 
under 
the other Loan Documents in 
consideration of the financial accommodations 
to be provided by 
the 
Lender Group 
under this 
Agreement, for 
the mutual 
benefit, directly 
and indirectly, 
of each 
Borrower and 
in consideration 
of the 
undertakings of 
the other 
Borrowers to 
accept joint 
and 
several liability for the Obligations. 
(b)
 
Each    Borrower,    jointly 
and    severally, 
hereby    irrevocably    and 
unconditionally accepts, not merely 
as a surety but 
also as a co-debtor, 
joint and several liability 
with the other Borrowers, 
with respect to the 
payment and performance of 
all of the Obligations 
(including any Obligations 
arising under this 
Section 2.16), 
it being the 
intention of 
the parties 
hereto that all the Obligations shall be the 
joint and several obligations of each Borrower 
without 
preferences or distinction 
among them. 
Accordingly, at 
any time 
when there 
is more 
than one 
Borrower, each Borrower hereby 
waives any and all suretyship defenses 
that would otherwise be 
available to such Borrower under applicable law. 
(c)
 
If and to the extent 
that any Borrower shall fail 
to make any payment with 
respect to 
any of 
the Obligations 
as and 
when due, 
whether upon 
maturity, acceleration, 
or 
otherwise, or to perform any of the Obligations in accordance with the terms thereof, then in each 
such event 
the other 
Borrowers will 
make such 
payment with 
respect to, 
or perform, 
such 
Obligations until 
such time 
as all 
of the 
Obligations are 
paid in 
full, and 
without the 
need for 
demand, protest, or any other notice or formality. 
(d)
 
The Obligations of each Borrower under 
the provisions of this Section 2.16 
constitute the absolute and unconditional, full recourse Obligations of each Borrower enforceable 
against each Borrower 
to the full 
extent of its 
properties and assets, 
irrespective of the 
validity, 
regularity or enforceability of 
the provisions of this Agreement 
(other than this Section 2.16(d)) 
or 
any other circumstances whatsoever. 
(e)
 
Without limiting 
the generality 
of the 
foregoing and 
except as 
otherwise 
expressly provided in 
this Agreement, at 
any time when 
there is more 
than one Borrower, 
each 
Borrower hereby waives presentments, demands for 
performance, protests and notices, including 
notices of acceptance of its joint and several liability, notice 
of any Revolving Loans, any portion 
of the Term 
Loan or any 
Letters of Credit issued 
under or pursuant 
to this Agreement, 
notice of 
the occurrence of 
any Default, Event 
of Default, 
notices of 
nonperformance, notices 
of protest, 
notices of dishonor, notices of acceptance of this Agreement, notices of the existence, creation, or 
incurring of new 
or additional Obligations 
or other financial 
accommodations or of 
any demand 
for any payment under this Agreement, 
notice of any action at any 
time taken or omitted by Agent 
or Lenders under 
or in respect 
of any of 
the Obligations, any 
right to proceed 
against any other 
Borrower or 
any other 
Person, to 
proceed against 
or exhaust 
any security 
held from 
any other 
Borrower or any other Person, to 
protect, secure, perfect, or insure any security 
interest or Lien on 
any property subject 
thereto or exhaust 
any right to 
take any action 
against any other 
Borrower, 
any other 
Person, or 
any collateral, 
to pursue 
any other 
remedy in 
any member 
of the 
Lender 
Group's or 
any Bank 
Product Provider's 
power whatsoever, 
any requirement 
of diligence 
or to 
mitigate damages and, generally, 
to the extent 
permitted by applicable law, 
all demands, notices 
and other 
formalities of 
every kind 
in connection 
with this 
Agreement (except 
as otherwise 

 

 

 

 

provided in this Agreement), 
any right to assert 
against any member of 
the Lender Group or 
any 
Bank Product Provider, any 
defense (legal or 
equitable), set-off, counterclaim, or 
claim which each 
Borrower may now 
or at any 
time hereafter have 
against any other 
Borrower or any 
other party 
liable to 
any member of 
the Lender Group 
or any 
Bank Product Provider, 
any defense, set-off, 
counterclaim, or 
claim, of 
any kind 
or nature, 
arising directly 
or indirectly 
from the 
present or 
future lack of perfection, sufficiency, validity, 
or enforceability of the Obligations or any security 
therefor, and any right or defense 
arising by reason of any 
claim or defense based 
upon an election 
of remedies 
by any 
member of 
the Lender 
Group or 
any Bank 
Product Provider 
including any 
defense based 
upon an 
impairment or 
elimination of 
such Borrower's 
rights of 
subrogation, 
reimbursement, contribution, or indemnity 
of such Borrower against 
any other Borrower. 
Without 
limiting the generality of 
the foregoing, at any 
time when there is 
more than one Borrower, 
each 
Borrower hereby assents to, and 
waives notice of, any extension 
or postponement of the time 
for 
the payment of any 
of the Obligations, the 
acceptance of any payment 
of any of the 
Obligations, 
the acceptance of any 
partial payment thereon, any 
waiver, consent or other action 
or acquiescence 
by Agent 
or Lenders 
at any 
time or 
times in 
respect of 
any default 
by any 
Borrower in 
the 
performance or satisfaction of any term, 
covenant, condition or provision of 
this Agreement, any 
and all other 
indulgences whatsoever by 
Agent or Lenders 
in respect of 
any of the 
Obligations, 
and the taking, 
addition, substitution or 
release, in whole 
or in part, 
at any time 
or times, of 
any 
security for any of 
the Obligations or the 
addition, substitution or 
release, in whole or 
in part, of 
any Borrower. 
Without limiting 
the generality of 
the foregoing, at 
any time when 
there is more 
than one Borrower, 
each Borrower assents 
to any other 
action or delay in 
acting or failure to 
act 
on the part of any 
Agent or Lender with respect 
to the failure by any Borrower 
to comply with any 
of its respective 
Obligations, including 
any failure 
strictly or diligently 
to assert 
any right or 
to 
pursue any remedy 
or to comply 
fully with applicable 
laws or regulations 
thereunder, which might, 
but for the provisions of this Section 2.16 afford grounds for terminating, discharging or relieving 
any Borrower, in whole or in part, from any of its Obligations 
under this Section 2.16, it being the 
intention of each 
Borrower that, so 
long as any 
of the Obligations 
hereunder remain unsatisfied, 
the Obligations 
of each 
Borrower under 
this Section 
2.16 shall 
not be 
discharged except 
by 
performance and then only to the extent of such performance. 
The Obligations of each Borrower 
under this 
Section 2.16 
shall not 
be diminished 
or rendered 
unenforceable by 
any winding 
up, 
reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any 
other Borrower 
or any 
Agent or 
Lender. 
Each of 
the Borrowers 
waives, to 
the fullest 
extent 
permitted by law, 
the benefit of 
any statute of 
limitations affecting 
its liability hereunder 
or the 
enforcement hereof. 
Any payment by any Borrower or other 
circumstance which operates to toll 
any statute of 
limitations as to 
any Borrower shall 
operate to toll 
the statute of 
limitations as to 
each of the Borrowers. 
At any time when there is 
more than one Borrower, each of the Borrowers 
waives any defense based 
on or arising out 
of any defense of 
any Borrower or any 
other Person, 
other than payment of the 
Obligations to the extent of 
such payment, based on or 
arising out of the 
disability of any Borrower or any other Person, or the validity, 
legality, or unenforceability of 
the 
Obligations or any part thereof from any cause, 
or the cessation from any cause of 
the liability of 
any Borrower other than 
payment of the Obligations 
to the extent of 
such payment. 
Agent may, 
at the election 
of the Required 
Lenders, foreclose upon 
any Collateral held 
by Agent by 
one or 
more judicial or 
nonjudicial sales or 
other dispositions, whether 
or not every 
aspect of any 
such 
sale is commercially reasonable or otherwise fails to comply with applicable 
law or may exercise 
any other right 
or remedy Agent, 
any other member 
of the Lender 
Group, or any 
Bank Product 
Provider may have 
against any Borrower 
or any other 
Person, or any 
security, in each case, 
without 

 

 

 

 

 

affecting or 
impairing in 
any way the 
liability of 
any of the 
Borrowers hereunder except 
to the 
extent the Obligations have been paid. 
(f)
 
Each Borrower 
represents and 
warrants to 
Agent and 
Lenders that 
such 
Borrower  is  currently 
informed  of  the 
financial  condition 
of  Borrowers  and 
of  all  other 
circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment 
of the Obligations. 
Each Borrower further represents and 
warrants to Agent and 
Lenders that such 
Borrower has 
read and 
understands the 
terms and 
conditions of 
the Loan 
Documents. 
Each 
Borrower hereby 
covenants that 
such Borrower 
will continue 
to keep 
informed of 
Borrowers' 
financial condition 
and of 
all other 
circumstances which 
bear upon 
the risk 
of nonpayment 
or 
nonperformance of the Obligations. 
(g)
 
The provisions of this Section 2.16 are made for the benefit of Agent, 
each 
member of the 
Lender Group, each 
Bank Product 
Provider, and 
their respective 
successors and 
assigns, and may be enforced 
by it or them from time 
to time against any or all 
Borrowers as often 
as occasion therefor may 
arise and without requirement 
on the part of 
Agent, any member of the 
Lender Group, any 
Bank Product Provider, 
or any of 
their successors or 
assigns first to 
marshal 
any of its or their claims 
or to exercise any of its 
or their rights against any Borrower or 
to exhaust 
any remedies available to 
it or them against 
any Borrower or to 
resort to any other 
source or means 
of obtaining 
payment of 
any of 
the Obligations 
hereunder or 
to elect 
any other 
remedy. 
The 
provisions of this 
Section 2.16 shall 
remain in effect 
until all of 
the Obligations shall 
have been 
paid in full or otherwise fully satisfied. 
If at any time, any payment, or any 
part thereof, made in 
respect of any of the Obligations, is rescinded or must otherwise be restored or returned by Agent 
or any Lender upon the 
insolvency, bankruptcy 
or reorganization of any 
Borrower, or otherwise, 
the provisions of this 
Section 2.16 will forthwith 
be reinstated in effect, 
as though such payment 
had not been made. 
(h)
 
Each Borrower hereby 
agrees that it 
will not enforce 
any of its 
rights that 
arise from the 
existence, payment, performance 
or enforcement of 
the provisions of 
this Section 
2.16, including rights 
of subrogation, reimbursement, exoneration, 
contribution or indemnification 
and any right 
to participate 
in any claim 
or remedy 
of Agent, 
any other member 
of the 
Lender 
Group, or any Bank Product 
Provider against any Borrower, whether or not such 
claim, remedy or 
right arises in 
equity or under 
contract, statute or 
common law, including the 
right to take 
or receive 
from any Borrower, 
directly or indirectly, 
in cash or 
other property or 
by set-off or 
in any other 
manner, payment 
or security solely 
on account of 
such claim, remedy 
or right, unless 
and until 
such time as all of the Obligations have been paid in full in cash. 
Any claim which any Borrower 
may have against any other Borrower 
with respect to any payments 
to any Agent or any 
member 
of the Lender 
Group hereunder or 
under any of the 
Bank Product Agreements are 
hereby expressly 
made subordinate 
and junior 
in right 
of payment, 
without limitation 
as to 
any increases 
in the 
Obligations arising hereunder or thereunder, to the prior 
payment in full in cash 
of the Obligations 
and, in the event of any insolvency, 
bankruptcy, receivership, liquidation, 
reorganization or other 
similar proceeding 
under the 
laws of 
any jurisdiction 
relating to 
any Borrower, 
its debts 
or its 
assets, whether voluntary 
or involuntary, 
all such Obligations shall 
be paid in 
full in cash before 
any payment or 
distribution of any 
character, whether 
in cash, securities 
or other property, 
shall 
be made to any other Borrower therefor. 
If any amount shall be paid to any 
Borrower in violation 
of the immediately preceding sentence, 
such amount shall be held in 
trust for the benefit of 
Agent, 
for the benefit of the 
Lender Group and the Bank 
Product Providers, and shall forthwith be 
paid to 

 

Agent to 
be credited 
and applied 
to the 
Obligations and 
all other 
amounts payable 
under this 
Agreement, whether matured or unmatured, in accordance with the terms 
of this Agreement, or to 
be held as 
Collateral for any 
Obligations or other 
amounts payable under 
this Agreement thereafter 
arising. 
Notwithstanding anything to the contrary contained in this Agreement, no Borrower may 
exercise any rights of subrogation, contribution, indemnity, 
reimbursement or other similar rights 
against, and may not proceed or seek 
recourse against or with respect to 
any property or asset of, 
any  other 
Borrower  (the 
"Foreclosed  Borrower"), 
including  after 
payment  in 
full  of 
the 
Obligations, if 
all or 
any portion 
of the 
Obligations have 
been satisfied 
in connection 
with an 
exercise of 
remedies in 
respect of 
the Equity 
Interests of 
such Foreclosed 
Borrower whether 
pursuant to this Agreement or otherwise. 
(i)
 
Each of the Borrowers 
hereby acknowledges and affirms that 
it understands 
that to the extent 
the Obligations are secured 
by Real Property located 
in California, the Borrowers 
shall be 
liable for 
the full 
amount of 
the liability 
hereunder notwithstanding the 
foreclosure on 
such Real Property by trustee sale or any other reason impairing such Borrower's right to proceed 
against any other 
Loan Party. 
In accordance with 
Section 2856 of 
the California Civil 
Code or 
any similar laws 
of any other 
applicable jurisdiction, each 
of the Borrowers 
hereby waives until 
such time as the Obligations have been paid in full: 
(i)
 
all  rights 
of  subrogation, 
reimbursement,  indemnification, 
and 
contribution and any other rights and defenses that are or may become available to the Borrowers 
by reason of Sections 2787 to 2855, inclusive, 2899, and 
3433 of the California Civil Code or any 
similar laws of any other applicable jurisdiction; 
(ii)
 
all rights 
and defenses 
that the 
Borrowers may 
have because 
the 
Obligations are secured by 
Real Property located in California, 
meaning, among other things, 
that: 

(A) Agent, the other members 
of the Lender Group, 
and the Bank Product Providers 
may collect 
from the Borrowers 
without first foreclosing 
on any real 
or personal property 
collateral pledged 
by any 
Loan Party, 
and (B) 
if Agent, 
on behalf 
of the 
Lender Group, 
forecloses on 
any Real 
Property Collateral pledged by any Loan Party, (1) the amount of the Obligations may be reduced 
only by the 
price for which 
that collateral is 
sold at the 
foreclosure sale, even 
if the collateral 
is 
worth more than the sale price, and (2) the Lender 
Group may collect from the Loan Parties even 
if, by foreclosing 
on the Real 
Property Collateral, Agent 
or the other 
members of the 
Lender Group 
have destroyed or 
impaired any right 
the Borrowers may 
have to collect 
from any other 
Loan Party, 
it being understood that this is an unconditional and irrevocable waiver of 
any rights and defenses 
the Borrowers 
may have 
because the 
Obligations are 
secured by 
Real Property 
(including any 
rights or 
defenses based 
upon Sections 
580a, 580d, 
or 726 
of the 
California Code 
of Civil 
Procedure or any similar laws of any other applicable jurisdiction); and 
(iii)
 
all rights 
and defenses 
arising out 
of an 
election of 
remedies by 
Agent, the other members of the Lender 
Group, and the Bank Product Providers, even 
though that 
election of remedies, such as 
a nonjudicial foreclosure with respect 
to security for the Obligations, 
has destroyed 
the Borrowers' 
rights of 
subrogation and 
reimbursement against 
any other 
Loan 
Party by the 
operation of Section 
580d of the 
California Code of 
Civil Procedure or 
any similar 
laws of any other applicable jurisdiction or otherwise. 

 

 

 

 

 

3.
 
CONDITIONS; TERM OF AGREEMENT. 
3.1.
 
Conditions Precedent to 
the Initial Extension 
of Credit
. 
The obligation of 
each Lender 
to make 
the initial 
extensions of 
credit provided 
for hereunder 
is subject 
to the 
fulfillment, to the 
satisfaction of Agent 
and each Lender, 
of each of the 
conditions precedent set 
forth on Schedule 
3.1 to this 
Agreement (the making 
of such initial 
extensions of credit 
by a Lender 
being conclusively deemed to be its satisfaction or waiver of the conditions precedent). 
3.2.
 
Conditions Precedent 
to all 
Extensions of 
Credit
. 
The obligation 
of the 
Lender Group (or any 
member thereof) to make 
any Revolving Loans or 
to make the 
Additional 
M/E Term Loan hereunder (or to extend any other 
credit hereunder) at any time shall 
be subject to 
the following conditions precedent: 
(a)
 
the representations 
and warranties 
of each 
Loan Party 
or its 
Subsidiaries 
contained in this 
Agreement or in 
the other Loan 
Documents shall be 
true and correct 
in all material 
respects (except that 
such materiality qualifier shall 
not be applicable 
to any representations and 
warranties that already are qualified 
or modified by materiality 
in the text thereof) on 
and as of the 
date of such extension of 
credit, as though made on 
and as of such date 
(except to the extent that 
such  representations 
and  warranties 
relate  solely 
to  an 
earlier  date, 
in  which 
case  such 
representations and warranties 
shall be true 
and correct in 
all material respects 
(except that such 
materiality qualifier shall not be applicable 
to any representations and warranties 
that already are 
qualified or modified by materiality in the text thereof) as of such earlier date); 

(b)
 
no Default or Event 
of Default shall have 
occurred and be continuing 
on the 
date of such extension of credit, nor shall either result from the making thereof; and 
(c)
 
solely with 
respect to 
the Additional 
M/E Term 
Loan, Agent 
shall have 
received an Acceptable Appraisal 
with respect to the 
Eligible M&E within three 
months prior to 
the date of the funding of the Additional M/E Term Loan. 
3.3.
 
Maturity
. 
The Commitments shall continue in full force 
and effect for a term 
ending on the Maturity Date (unless terminated earlier in accordance with the terms hereof). 
3.4.
 
Effect of 
Maturity
. 
On the 
Maturity Date, 
all commitments 
of the 
Lender 
Group to 
provide additional 
credit hereunder 
shall automatically 
be terminated 
and all 
of the 
Obligations (other than 
Hedge Obligations) immediately 
shall become due 
and payable without 
notice or demand 
and Borrowers shall 
be required to repay 
all of the 
Obligations (other than 
Hedge 
Obligations) in full. 
No termination of the 
obligations of the Lender 
Group (other than payment 
in full of the 
Obligations and termination of 
the Commitments) shall relieve 
or discharge any Loan 
Party of its 
duties, obligations, 
or covenants hereunder 
or under 
any other 
Loan Document and 
Agent's Liens in the Collateral shall 
continue to secure the Obligations 
and shall remain in effect 
until all Obligations 
have been paid 
in full. 
When all of 
the Obligations have 
been paid in 
full, 
Agent will, 
at Borrowers' 
sole expense, 
execute and 
deliver any 
termination statements, 
lien 
releases, discharges of security interests, and other similar discharge or release 
documents (and, if 
applicable, in recordable form) as are reasonably necessary to release, as of record, Agent's Liens 
and all notices of security interests and liens previously filed by Agent. 

 

 

 

 

 

3.5.
 
Early Termination 
by Borrowers
. 
Borrowers have 
the option, 
at any 
time 
upon ten Business 
Days prior written 
notice to Agent, 
to repay all 
of the Obligations 
in full and 
terminate  the 
Commitments. 
The  foregoing 
notwithstanding,  (a) 
Borrowers  may 
rescind 
termination notices relative to 
proposed payments in full 
of the Obligations with 
the proceeds of 
third party Indebtedness 
if the closing 
for such issuance 
or incurrence does 
not happen on 
or before 
the date of 
the proposed termination 
(in which case, 
a new notice 
shall be required 
to be sent 
in 
connection  with  any 
subsequent  termination),  and 
(b)  Borrowers  may 
extend  the  date 
of 
termination at 
any time 
with the 
consent of 
Agent (which 
consent shall 
not be 
unreasonably 
withheld or delayed). 
3.6.
 
Conditions Subsequent.
 
The obligation of the Lender Group (or any member 
thereof) to continue to make Revolving Loans (or otherwise extend credit hereunder) is subject to 
the fulfillment, on or before 
the date applicable thereto, of 
the conditions subsequent set 
forth on 
Schedule 3.6 to this Agreement (the failure by 
Borrowers to so perform or cause to be 
performed 
such conditions 
subsequent as 
and when 
required by 
the terms 
thereof (unless 
such date 
is 
extended, in writing, 
by Agent, which 
Agent may do 
without obtaining the 
consent of the 
other 
members of the Lender Group), shall constitute an Event of Default). 
4.
 
REPRESENTATIONS 
AND WARRANTIES. 
In order to 
induce the Lender 
Group to enter 
into this Agreement, 
each Borrower makes 
the following representations and warranties to the Lender 
Group which shall be true, correct, and 
complete, in all material respects (except 
that such materiality qualifier shall 
not be applicable to 
any representations and warranties that already are qualified or modified by 
materiality in the text 
thereof), as of the 
Closing Date, and 
shall be true, 
correct, and complete, 
in all material 
respects 
(except that such materiality 
qualifier shall not be applicable 
to any representations and warranties 
that already are 
qualified or modified 
by materiality in 
the text thereof), 
as of the 
date of the 
making 
of each Revolving Loan (or other 
extension of credit) made thereafter, 
as though made on and as 
of the date 
of such Revolving 
Loan (or other 
extension of credit) 
(except to the 
extent that such 
representations and warranties relate 
solely to an earlier 
date, in which case 
such representations 
and warranties 
shall be 
true and 
correct in 
all material 
respects (except 
that such 
materiality 
qualifier shall not be applicable to any representations and warranties that already are qualified or 
modified by materiality in 
the text thereof) as 
of such earlier date), 
and such representations 
and 
warranties shall survive the execution and delivery of this Agreement: 
4.1.
 
Due Organization and Qualification; Subsidiaries
. 
(a)
 
Each Loan 
Party and 
each of 
its Subsidiaries 
(i) is 
duly organized 
and 
existing and in good standing under the 
laws of the jurisdiction of its organization, (ii) is qualified 
or registered to 
do business in 
any jurisdiction where 
the failure to 
be so qualified 
or registered 
could reasonably be 
expected to result 
in a Material 
Adverse Effect, and 
(iii) has all 
requisite power 
and authority to own and 
operate its properties, to 
carry on its business as 
now conducted and as 
proposed to be conducted, to enter into the Loan Documents to 
which it is a party and to carry out 
the transactions contemplated thereby. 
(b)
 
Set forth on 
Schedule 4.1(b) to 
this Agreement (as 
such Schedule may 
be 
updated from 
time to 
time to 
reflect changes 
resulting from 
transactions permitted 
under this 

 

 

 

 

Agreement) is a complete and 
accurate description of the authorized 
Equity Interests of each 
Loan 
Party, by 
class, and, as 
of the Closing 
Date, a description 
of the number 
of shares of 
each such 
class that are issued and outstanding. 
(c)
 
Set forth on 
Schedule 4.1(c) to 
this Agreement (as 
such Schedule may 
be 
updated from 
time to 
time to 
reflect changes 
resulting from 
transactions permitted 
under this 
Agreement), is a 
complete and accurate 
list of the 
Loan Parties' direct 
and indirect Subsidiaries, 
showing: (i) 
the number 
of shares 
of each 
class of 
common and 
preferred Equity 
Interests 
authorized for each of 
such Subsidiaries, and (ii) 
the number and the percentage 
of the outstanding 
shares of 
each such 
class owned 
directly or 
indirectly by 
Administrative Borrower. 
All of 
the 
outstanding Equity Interests of each such Subsidiary has been validly issued and is 
fully paid and 
non-assessable. 
(d)
 
Except as set forth on Schedule 4.1(d) to this Agreement, as of the 
Closing 
Date, there 
are no 
subscriptions, options, 
warrants, or 
calls relating 
to any 
shares of 
any Loan 
Party's or any of 
its Subsidiaries' Equity Interests, 
including any right of 
conversion or exchange 
under any outstanding 
security or other 
instrument. 
No Loan Party 
is subject to 
any obligation 
(contingent or 
otherwise) to 
repurchase or 
otherwise acquire 
or retire 
any shares 
of its 
Equity 
Interests or any security convertible into or exchangeable for any of its Equity Interests. 
4.2.
 
Due Authorization; No Conflict
. 
(a)
 
As to each 
Loan Party, 
the execution, delivery, 
and performance 
by such 
Loan Party of 
the Loan Documents 
to which it 
is a party 
have been duly 
authorized by all 
necessary 
action on the part of such Loan Party. 
(b)
 
As to each 
Loan Party, 
the execution, delivery, 
and performance 
by such 
Loan Party of the 
Loan Documents to which 
it is a party 
do not and will 
not (i) violate any 
material 
provision of federal, state, provincial or local law or regulation 
applicable to any Loan Party or its 
Subsidiaries, the 
Governing Documents 
of any 
Loan Party 
or its 
Subsidiaries, or 
any order, 
judgment, or decree of any 
court or other Governmental 
Authority binding on any Loan 
Party or 
its Subsidiaries, (ii) 
conflict with, result 
in a breach 
of, or constitute 
(with due notice 
or lapse of 
time or both) a default under 
any material agreement of any 
Loan Party or its Subsidiaries 
where 
any such conflict, breach or default could individually or in the aggregate reasonably be expected 
to have a Material Adverse 
Effect, (iii) result in 
or require the creation 
or imposition of any Lien 
of any nature 
whatsoever upon any 
assets of any 
Loan Party, 
other than Permitted 
Liens, or (iv) 
require any approval of any holder of Equity Interests of 
a Loan Party or any approval or consent 
of any Person under 
any material agreement of 
any Loan Party, 
other than consents or 
approvals 
that have been 
obtained and 
that are still 
in force 
and effect 
and except, 
in the case 
of material 
agreements, for 
consents or 
approvals, the 
failure to 
obtain could 
not individually 
or in 
the 
aggregate reasonably be expected to cause a Material Adverse Effect. 
4.3.
 
Governmental Consents
. 
The execution, delivery, 
and performance by 
each 
Loan Party of the Loan Documents to which such Loan Party is 
a party and the consummation of 
the transactions contemplated by the Loan Documents do not and will not require any 
registration 
with, consent, or approval 
of, or notice to, 
or other action with 
or by, any Governmental Authority, 
other than registrations, consents, approvals, notices, or other actions that have been obtained and 

 

 

 

 

 

 

that are still in force and effect and except for filings and recordings with respect to the Collateral 
to be made, or otherwise delivered to Agent for filing or recordation, as of the Closing Date. 
4.4.
 
Binding Obligations; Perfected Liens
. 
(a)
 
Each Loan Document has 
been duly executed and 
delivered by each Loan 
Party that is 
a party thereto 
and is 
the legally valid 
and binding obligation 
of such 
Loan Party, 
enforceable against such 
Loan Party in 
accordance with its 
respective terms, except 
as enforcement 
may be limited by equitable principles or by bankruptcy, insolvency, 
reorganization, moratorium, 
or similar laws relating to or limiting creditors' rights generally. 
(b)
 
Agent's Liens 
are validly 
created, perfected 
(other than 
(i) in 
respect of 
motor vehicles that are subject to a certificate of title, (ii) money, (iii) letter-of-credit rights (other 
than supporting obligations), (iv) 
commercial tort claims (other 
than those that, by the 
terms of the 
Guaranty and Security 
Agreement, are required 
to be 
perfected), and (v) 
any Deposit Accounts 
and Securities Accounts 
not subject to 
a Control Agreement 
as permitted by 
Section 7(k)(iv) of 
the Guaranty and Security 
Agreement, and subject 
only to the filing 
of financing statements 
and 
the recordation of the Mortgages, in each 
case, in the appropriate filing offices), 
and first priority 
Liens, subject 
only to 
Permitted Liens 
which are 
non-consensual Permitted 
Liens, permitted 
purchase money Liens, or the interests of lessors under Capital Leases. 
4.5.
 
Title  to  Assets; 
No  Encumbrances
. 
Each  of  the 
Loan  Parties  and 
its 
Subsidiaries has (a) good, sufficient and 
legal title to (in the 
case of fee interests in 
Real Property), 
(b) valid leasehold interests in (in the case of leasehold interests in real or personal property), and 
(c) good and marketable title 
to (in the case of 
all other personal property), all 
of their respective 
assets reflected in their most recent financial statements delivered pursuant to Section 5.1, in 
each 
case except for 
assets disposed of 
since the date 
of such financial statements 
to the extent 
permitted 
hereby. 
All of such assets are free and clear of Liens except for Permitted Liens. 
4.6.
 
Litigation
. 
(a)
 
There are no actions, suits, or proceedings pending or, 
to the knowledge of 
any  Borrower,  after  due  inquiry, 
threatened  in  writing  against  a  Loan  Party  or 
any  of  its 
Subsidiaries that either individually or in the 
aggregate could reasonably be expected to result 
in a 
Material Adverse Effect. 
(b)
 
Schedule 4.6(b) 
to this 
Agreement sets 
forth  a complete 
and  accurate 
description of each of 
the actions, suits, or proceedings 
with asserted liabilities in 
excess of, or that 
could reasonably be expected 
to result in liabilities 
in excess of, $500,000 
that, as of the Closing 
Date, is pending 
or, to the knowledge 
of any Borrower, after 
due inquiry, threatened against a 
Loan 
Party or any of its Subsidiaries. 
4.7.
 
Compliance with 
Laws
. 
No Loan Party 
nor any of 
its Subsidiaries (a) 
is in 
violation  of  any 
applicable  laws,  rules, 
regulations,  executive 
orders,  or  codes 
(including 
Environmental Laws) that, individually or 
in the aggregate, could reasonably 
be expected to result 
in a Material Adverse Effect, or (b) is subject to or 
in default with respect to any final judgments, 
writs, injunctions, decrees, 
rules or regulations 
of any court 
or any federal, 
state, municipal or 
other 
governmental department, 
commission, board, 
bureau, agency 
or instrumentality, 
domestic or 

 

 

 

 

foreign, that, individually or in the aggregate, could reasonably be expected to result in 
a Material 
Adverse Effect. 
4.8.
 
No Material Adverse Effect
. 
All historical financial statements relating 
to the 
Loan Parties 
and their 
Subsidiaries that 
have been 
delivered by Borrowers 
to Agent 
have been 
prepared in accordance with GAAP (except, in the 
case of unaudited financial statements, for the 
lack of footnotes and 
being subject to year-end audit 
adjustments) and present fairly 
in all material 
respects, the Loan 
Parties' and their 
Subsidiaries' consolidated financial 
condition as of 
the date 
thereof and results of 
operations for the period 
then ended. 
Since December 31, 2019, 
no event, 
circumstance, or 
change has 
occurred that 
has or 
could reasonably 
be expected 
to result 
in a 
Material Adverse Effect. 
4.9.
 
Solvency
. 
(a)
 
The Loan Parties, taken as a whole, are Solvent. 
(b)
 
No transfer of property is being made by any Loan Party and no obligation 
is being 
incurred by 
any Loan 
Party in 
connection with 
the transactions 
contemplated by 
this 
Agreement or the other Loan Documents with 
the intent to hinder, delay, or defraud either present 
or future creditors of such Loan Party. 
4.10.
 
Employee Benefits
. 

(a)
 
Except  as  set 
forth  on  Schedule 
4.10,  no  Loan 
Party,  none 
of  their 
Subsidiaries,  nor 
any  of 
their  ERISA 
Affiliates  maintains 
or  contributes 
to  any 
Benefit 
Plan. 
Except as would not reasonably be expected, 
either individually or in the aggregate, to 
have 
a Material Adverse 
Effect, (i) 
each Employee Benefit 
Plan is in 
compliance with the 
applicable 
provisions of ERISA, the IRC and other federal or state laws and (ii) each Employee Benefit Plan 
that is intended 
to be a 
qualified plan under 
Section 401(a) of the 
IRC has received 
a favorable 
determination or 
relies upon 
an opinion 
letter from 
the IRS 
to the 
effect that 
the form 
of such 
Employee Benefit Plan 
is qualified under 
Section 401(a) of the 
IRC and the 
trust related thereto 
has been determined by the IRS to 
be exempt from federal income tax under 
Section 501(a) of the 
IRC, or an application for 
either such a letter is 
currently being processed by the 
IRS, and, to the 
knowledge of the Borrower, nothing has 
occurred that would prevent or 
cause the loss of such 
tax-
qualified status. 
There are 
no pending 
or, to 
the knowledge 
of the 
Borrowers, threatened 
or 
contemplated claims, actions or 
lawsuits, or action by 
any Governmental Authority, 
with respect 
to any Employee 
Benefit Plan that, 
either individually or 
in the 
aggregate, could 
reasonably be 
expected to have a 
Material Adverse Effect. 
There has been no 
non-exempt prohibited transaction 
or violation of 
the fiduciary responsibility 
rules with respect 
to any Employee 
Benefit Plan that, 
either individually or in the aggregate, has 
had or could reasonably be expected to 
have a Material 
Adverse Effect. 
(b)
 
No liability to the 
PBGC (other than for 
the payment of current 
premiums 
which are not past due) by any Loan Party or ERISA Affiliate has 
been incurred or is expected by 
any Loan Party or ERISA Affiliate to be incurred with respect to any Pension Plan. 
(c)
 
No Notification Event exists or has occurred in the past six (6) years. 

 

 

 

(d)
 
No Loan Party or ERISA Affiliate has provided any security under Section 
436 of the IRC. 

(e)
 
No Loan Party, 
nor any of its Subsidiaries, 
maintains or contributes to any 
Canadian Defined 
Benefit Plan 
nor has 
any liabilities 
or obligations 
in respect 
of a 
Canadian 
Defined Benefit Plan that 
has been terminated or 
wound up other than 
a Canadian Multi-Employer 
Plan. 
Except as set forth on Schedule 4.10, as of the Closing Date no Loan Party, nor any of their 
Subsidiaries, maintains or contributes 
to any Canadian Pension 
Plan. 
Each Canadian Pension Plan 
is, and has 
been maintained in 
compliance to the 
Income Tax 
Act (Canada), all 
applicable laws 
and the terms 
of each such 
Canadian Pension Plan, 
except where the 
failure to do 
so would not 
reasonably be expected to result in a Material Adverse Effect. 

4.11.
 
Environmental Condition
. 
Except as 
set forth 
on Schedule 
4.11 to 
this 
Agreement, (a) 
to each 
Borrower's knowledge, 
no Loan 
Party's nor 
any of 
its Subsidiaries' 
properties or assets has ever been used by a Loan Party, its Subsidiaries, or by previous owners or 
operators in the disposal 
of, or to produce, 
store, handle, treat, release, or 
transport, any Hazardous 
Materials, where such disposal, production, storage, handling, 
treatment, release or transport was 
in violation, in any material respect, of 
any applicable Environmental Law, (b) to each Borrower's 
knowledge, after due inquiry, 
no Loan Party's nor any 
of its Subsidiaries' properties or 
assets has 
ever been designated or identified in any manner pursuant to any 
environmental protection statute 
as a Hazardous Materials disposal site, 
(c) no Loan Party nor any 
of its Subsidiaries has received 
notice that a 
Lien arising under 
any Environmental Law 
has attached to 
any revenues or 
to any 
Real Property owned 
or operated by 
a Loan Party 
or its Subsidiaries, 
and (d) no 
Loan Party nor 
any of 
its Subsidiaries 
nor any 
of their 
respective facilities 
or operations 
is subject 
to any 
outstanding written order, consent decree, or 
settlement agreement with any Person 
relating to any 
Environmental Law 
or Environmental 
Liability that, 
individually or 
in the 
aggregate, could 
reasonably be expected to result in a Material Adverse Effect. 
4.12.
 
Complete Disclosure
. 
All factual 
information taken 
as a 
whole (other 
than 
forward-looking information 
and projections and 
information of a 
general economic nature 
and 
general information about 
the industry of 
any Loan Party 
or its Subsidiaries) 
furnished by or 
on 
behalf of 
a Loan 
Party or 
its Subsidiaries 
in writing 
to Agent 
or any 
Lender (including 
all 
information contained in the Schedules hereto or in the other 
Loan Documents) for purposes of or 
in connection 
with this 
Agreement or 
the other 
Loan Documents, 
and all 
other such 
factual 
information  taken  as  a  whole  (other  than 
forward-looking  information  and  projections  and 
information of a general economic nature and general information about the industry of any Loan 
Party or its Subsidiaries) hereafter furnished by or on behalf of a Loan Party or its Subsidiaries 
in 
writing to Agent or any 
Lender will be, true and 
accurate, in all material respects, on 
the date as of 
which such 
information is 
dated or 
certified and 
not incomplete 
by omitting 
to state 
any fact 
necessary to make such 
information (taken as 
a whole) not misleading 
in any material respect 
at 
such time 
in light 
of the 
circumstances under 
which such 
information was 
provided. 
The 
Projections delivered to 
Agent on September 
8, 2020 represent, and 
as of the 
date on which 
any 
other Projections are 
delivered to Agent, 
such additional Projections 
represent, Borrowers' good 
faith estimate, on 
the date such 
Projections are delivered, 
of the Loan 
Parties' and their 
Subsidiaries' 
future  performance  for 
the  periods 
covered  thereby  based 
upon  assumptions 
believed  by 
Borrowers to be reasonable 
at the time of 
the delivery thereof to 
Agent (it being understood 
that 
such Projections 
are subject 
to significant 
uncertainties and 
contingencies, many 
of which 
are 

 

 

 

 

 

 

 

 

 

beyond the control of the Loan Parties and their Subsidiaries, and no assurances can be given that 
such  Projections  will 
be  realized,  and 
although  reflecting  Borrowers' 
good  faith  estimate, 
projections or 
forecasts based 
on methods 
and assumptions 
which Borrowers 
believed to 
be 
reasonable at the 
time such Projections were 
prepared, are not to 
be viewed as facts, 
and that actual 
results during the 
period or periods 
covered by the 
Projections may differ 
materially from projected 
or estimated results). 
As of the 
Closing Date, the 
information included in 
the Beneficial Ownership 
Certification is true and correct in all respects. 
4.13.
 
Patriot Act
. 
To the extent 
applicable, each Loan Party is in compliance, in all 
material respects, with the 
(a) Trading with 
the Enemy Act, as 
amended, and each of 
the foreign 
assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter 
V, 
as amended) 
and any 
other enabling 
legislation or 
executive order 
relating thereto, 
and (b) 
Uniting and 
Strengthening America 
by Providing 
Appropriate Tools 
Required to 
Intercept and 
Obstruct Terrorism 
(USA Patriot Act of 2001, 
as amended) (the "Patriot Act") 
and all applicable 
Canadian Anti-Money Laundering & Anti-Terrorism Legislation. 
4.14.
 
Indebtedness
. 
Set forth 
on Schedule 
4.14 to 
this Agreement 
is a 
true and 
complete list 
of all 
Indebtedness of 
each Loan 
Party and 
each of 
its Subsidiaries 
outstanding 
immediately  prio 
r 
to  the 
Closing  Date 
(other  than 
(i)  unsecured 
Permitted  Indebtedness 
outstanding immediately prior to the 
Closing Date with respect to 
any one transaction or a 
series 
of related 
transactions in 
an amount 
not to 
exceed $250,000, 
provided, that 
all such 
Permitted 
Indebtedness, in the aggregate, shall 
not exceed $500,000, and (ii) the 
Mexican Term Debt) that is 
to remain outstanding immediately 
after giving effect to the 
closing hereunder on the 
Closing Date 
and such Schedule accurately sets forth 
the aggregate principal amount of such Indebtedness 
as of 
the Closing Date. 
4.15.
 
Payment of Taxes
. 
Except as otherwise permitted 
under Section 5.5, all 
Tax 
returns and reports of 
each Loan Party and 
its Subsidiaries required to 
be filed by any 
of them have 
been timely filed, 
and all Taxes 
shown on such 
Tax 
returns to be 
due and payable 
and all other 
Taxes upon a Loan Party and its Subsidiaries and upon their respective assets, income, businesses 
and franchises that are due 
and payable have been paid 
when due and payable. 
Each Loan Party 
and each of its Subsidiaries 
have made adequate provision in 
accordance with GAAP for all 
Taxes 
not yet due 
and payable. 
No Borrower knows 
of any proposed 
Tax assessment 
against a Loan 
Party or any 
of its 
Subsidiaries that is 
not being 
actively contested by 
such Loan 
Party or 
such 
Subsidiary diligently, in 
good faith, and by appropriate proceedings; 
provided, that such reserves 
or other appropriate provisions, 
if any, 
as shall be 
required in conformity with 
GAAP shall have 
been made or provided therefor. 
4.16.
 
Margin Stock
. 
Neither any Loan 
Party nor any 
of its Subsidiaries 
owns any 
Margin Stock 
or is 
engaged principally, 
or as 
one of 
its important 
activities, in 
the business 
of 
extending credit 
for the 
purpose of 
purchasing or 
carrying any 
Margin Stock. 
No part 
of the 
proceeds of the Loans made 
to Borrowers will be 
used to purchase or carry 
any Margin Stock or 
to extend credit to 
others for the 
purpose of purchasing 
or carrying any Margin 
Stock or for 
any 
purpose that violates the provisions 
of Regulation T, 
U or X of the 
Board of Governors. 
Neither 
any Loan Party nor any of its Subsidiaries expects to acquire any Margin Stock. 

 

 

 

4.17.
 
Governmental Regulation
. 
No Loan 
Party nor 
any of 
its Subsidiaries 
is 
subject to 
regulation under 
the Federal 
Power Act 
or the 
Investment Company 
Act of 
1940 or 
under  any  other  federal  or 
state  statute  or  regulation  which 
may  limit  its  ability  to 
incur 
Indebtedness or which may otherwise render 
all or any portion of the 
Obligations unenforceable. 

No Loan 
Party nor 
any of 
its Subsidiaries 
is a 
"registered investment 
company" or 
a company 
"controlled" by a 
"registered investment company" 
or a "principal 
underwriter" of 
a "registered 
investment company" as such terms are defined in the Investment Company Act of 1940. 
4.18.
 
OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws
. 

No Loan Party or any of its 
Subsidiaries is in violation of any Sanctions. 
No Loan Party nor any 
of its Subsidiaries nor, to 
the knowledge of such 
Loan Party, any director, officer, employee, agent 
or Affiliate 
of such 
Loan Party 
or such 
Subsidiary (a) 
is a 
Sanctioned Person 
or a 
Sanctioned 
Entity, (b) has any assets located in Sanctioned Entities, or (c) derives revenues from investments 
in, or transactions with 
Sanctioned Persons or Sanctioned 
Entities. 
Each of the Loan Parties 
and 
its Subsidiaries 
has implemented 
and maintains 
in effect 
policies and 
procedures reasonably 
designed  to 
ensure  compliance 
with  Sanctions, 
Anti-Corruption  Laws 
and  Anti-Money 
Laundering Laws. 
Each of the 
Loan Parties and 
its Subsidiaries, and 
to the knowledge 
of each 
such Loan Party, each director, officer, employee, agent and Affiliate of each such 
Loan Party and 
each such Subsidiary, is in compliance with all Sanctions, Anti-Corruption Laws 
and Anti-Money 
Laundering Laws. 
No proceeds 
of any Loan 
made or Letter 
of Credit issued 
hereunder will be 
used to fund any operations in, finance any investments or activities in, or make any payments to, 
a Sanctioned Person or a Sanctioned Entity, 
or otherwise used in any manner that 
would result in 
a violation of any Sanction, Anti-Corruption Law or Anti-Money Laundering Law 
by any Person 
(including any Lender, 
Bank Product Provider, 
or other individual 
or entity participating 
in any 
transaction). 
4.19.
 
Employee and Labor Matters
. 
There is (i) no unfair labor practice 
complaint 
pending  or,  to 
the  knowledge  of  any 
Borrower,  threatened  against 
any  Loan  Party  or 
its 
Subsidiaries before 
any Governmental 
Authority and 
no grievance 
or arbitration 
proceeding 
pending or threatened against any Loan Party 
or its Subsidiaries which arises out 
of or under any 
collective bargaining 
agreement and 
that could 
reasonably be 
expected to 
result in 
a material 
liability, (ii) 
no strike, labor 
dispute, slowdown, stoppage 
or similar action 
or grievance pending 
or threatened 
in writing 
against any 
Loan Party 
or its 
Subsidiaries that 
could reasonably 
be 
expected to 
result in 
a material 
liability, or 
(iii) to 
the knowledge 
of any 
Borrower, after 
due 
inquiry, no union representation question existing 
with respect to the 
employees of any Loan 
Party 
or its 
Subsidiaries and 
no union 
organizing activity 
taking place 
with respect 
to any 
of the 
employees of any Loan Party 
or its Subsidiaries. 
None of any Loan Party 
or its Subsidiaries has 
incurred any liability or obligation under the Worker 
Adjustment and Retraining Notification Act 
or similar state or 
other applicable law, 
which remains unpaid 
or unsatisfied. 
The hours worked 
and payments made 
to employees of 
each Loan Party 
and its Subsidiaries 
have not been 
in violation 
of the Fair 
Labor Standards Act 
or any other 
applicable legal requirements, 
except to the 
extent 
such violations could 
not, individually or 
in the aggregate, 
reasonably be expected 
to result in 
a 
Material Adverse Effect. 
All material payments 
due from any 
Loan Party or 
its 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 
Borrowers, except 
where the 
failure to 
do so 
could not, 
individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. 

 

 

 

 

 

 

 

 

 

 

 

4.20.
 
Leases
. 
Each Loan Party and 
its Subsidiaries enjoy peaceful 
and undisturbed 
possession under all leases material to their business and to which they are parties or under which 
they are 
operating, and, 
subject to 
Permitted Protests, 
all of 
such material 
leases are 
valid and 
subsisting and no material default 
by the applicable Loan 
Party or its Subsidiaries exists 
under any 
of them. 
4.21.
 
Eligible Accounts
. 
As to each 
Account that is 
identified by Borrowers 
as an 
Eligible Account in a Borrowing Base Certificate submitted 
to Agent, such Account is (a) a bona 
fide existing payment obligation 
of the applicable Account 
Debtor created by the 
sale and delivery 
of Inventory 
or the 
rendition of 
services to 
such Account 
Debtor in 
the ordinary 
course of 
a 
Borrowing Base Company's 
business, (b) owed 
to a Borrowing 
Base Company without 
any known 
defenses, disputes, offsets, counterclaims, or rights of return or cancellation, and 
(c) not excluded 
as ineligible by virtue of one or 
more of the excluding criteria (other than 
any Agent-discretionary 
criteria) set forth in the definition of Eligible Accounts. 
4.22.
 
Eligible  Inventory
. 
As  to  each 
item  of  Inventory 
that  is  identified 
by 
Borrowers as 
Eligible Finished 
Goods Inventory, 
Eligible In 
-Transit Inventory, 
Eligible Raw 
Materials Inventory
, 
or Eligible 
Work 
-In-Process Inventory 
in a 
Borrowing Base 
Certificate 
submitted to 
Agent, such 
Inventory is 
(a) of 
good and 
merchantable quality, 
free from 
known 
defects, and (b) not excluded as ineligible by virtue of 
one or more of the excluding criteria (other 
than any Agent-discretionary criteria) set 
forth in the definition of 
Eligible Inventory (in the case 
of Eligible In 
-Transit Inventory, 
after giving effect 
to any exclusions 
therefrom specified in 
the 
definition of Eligible In-Transit Inventory). 
4.23.
 
Location of Inventory 
and M&E
. 
Except as set 
forth in Schedule 
4.25, the 
Inventory  and 
M&E  of 
Loan  Parties 
and  their 
Subsidiaries  is 
not  stored 
with  a 
bailee, 
warehouseman, or similar 
party and is 
located only at, 
or in-transit between, 
the locations identified 
on Schedule 4.25 to this Agreement (as such Schedule may be updated pursuant to Section 5.14). 
4.24.
 
Inventory Records
. 
Each Loan 
Party keeps 
correct and 
accurate records 
itemizing and describing 
the type, quality, 
and quantity of 
its and its 
Subsidiaries' Inventory and 
the book value thereof. 
4.25.
 
Hedge Agreements
. 
On each date that 
any Hedge Agreement 
is executed by 
any Hedge 
Provider, Borrower 
and each 
other Loan 
Party satisfy 
all eligibility, 
suitability and 
other requirements under 
the Commodity Exchange 
Act (7 U.S.C. 
§ 1, et 
seq., as in 
effect from 
time to time) and the Commodity Futures Trading Commission regulations. 
5.
 
AFFIRMATIVE COVENANTS. 
Each  Borrower covenants 
and agrees 
that, until 
the termination 
of all 
of the 
Commitments and payment in full of the Obligations: 
5.1.
 
Financial Statements, 
Reports, Certificates
. 
Borrowers (a) 
will deliver 
to 
Agent, with copies 
to each Lender, 
each of the 
financial statements, reports, 
and other items 
set 
forth on Schedule 5.1 to this Agreement no later than the 
times specified therein, (b) agree that no 
Subsidiary of a Loan Party will have a fiscal year different from that of Administrative Borrower, 
(c)  agree  to  maintain  a 
system  of  accounting  that  enables 
Borrowers  to  produce  financial 

 

 

 

 

 

 

 

 

statements in accordance with GAAP, and (d) agree that they will, and will cause each other 
Loan 
Party to, (i) keep 
a reporting system that 
shows all additions, sales, 
claims, returns, and allowances 
with respect 
to their 
and their 
Subsidiaries' sales, 
and (ii) 
maintain their 
billing systems 
and 
practices  substantially  as 
in  effect 
as  of  the 
Closing  Date  and 
shall  only  make 
material 
modifications thereto with notice to, and with the consent of, Agent. 
5.2.
 
Reporting
. 
Borrowers (a) will deliver to Agent (and if so requested by Agent, 
with copies for each Lender) each of 
the reports set forth on Schedule 5.2 to this 
Agreement at the 
times specified therein, and 
(b) agree to use commercially 
reasonable efforts in 
cooperation with 
Agent to facilitate 
and implement a 
system of electronic 
collateral reporting in 
order to provide 
electronic reporting of each of the items set forth on such Schedule. 
Borrowers and Agent hereby 
agree that the delivery of 
the Borrowing Base Certificate through 
the Agent's electronic platform 
or portal, 
subject to 
Agent's authentication process, 
by such other 
electronic method 
as may be 
approved by Agent 
from time to 
time in its 
sole discretion, or 
by such other 
electronic input of 
information necessary to calculate the Borrowing 
Bases as may be approved 
by Agent from time 
to time in its sole discretion, 
shall in each case be deemed 
to satisfy the obligation of Borrowers 
to 
deliver such 
Borrowing Base 
Certificate, with 
the same 
legal effect 
as if 
such Borrowing 
Base 
Certificate had been manually executed by Borrowers and delivered to Agent. 
5.3.
 
Existence
. 
Except as 
otherwise permitted 
under Section 
6.3 or 
Section 6.4, 
each Loan Party will, 
and will cause each 
of its Subsidiaries to, 
at all times preserve 
and keep in 
full  force  and  effect  such  Person's  valid  existence  and  good  standing  in  its  jurisdiction  of 
organization and, except 
as could not 
reasonably be expected 
to result in 
a Material Adverse 
Effect, 
good standing with respect to all other jurisdictions in which it is qualified to do business and any 
rights, franchises, permits, 
licenses, accreditations, authorizations, 
or other approvals material 
to 
their businesses. 
5.4.
 
Maintenance of Properties
. 
Each Loan Party will, 
and will cause each of 
its 
Subsidiaries to, maintain 
and preserve all 
of its assets 
that are necessary 
or useful in 
the proper 
conduct of its 
business in 
good working 
order and 
condition, ordinary wear, 
tear, casualty, 
and 
condemnation and Permitted 
Dispositions excepted (and 
except where the 
failure to so 
maintain 
and preserve assets could not reasonably be expected to result in a Material Adverse Effect). 
5.5.
 
Taxes
. 
Each Loan Party will, and will cause each of its Subsidiaries to, pay in 
full before delinquency or before 
the expiration of any extension 
period all Taxes imposed, levied, 
or assessed 
against it, 
or any 
of its 
assets or 
in respect 
of any 
of its 
income, businesses, 
or 
franchises, other than Taxes 
not in excess 
of $200,000 outstanding at 
any time and 
other than to 
the extent that the validity of such Tax is the subject of a Permitted Protest. 
5.6.
 
Insurance
. 
(a)
 
Each  Loan  Party 
will,  and  will 
cause  each  of 
its  Subsidiaries  to, 
at 
Borrowers' expense, maintain insurance respecting each of each Loan Party's and its Subsidiaries' 
assets wherever 
located, covering 
liabilities, losses 
or damages 
as are 
customarily are 
insured 
against by other Persons engaged in same or 
similar businesses and similarly situated and located. 

All such policies of insurance 
shall be with financially sound 
and reputable insurance companies 
acceptable to 
Agent (it 
being agreed 
that, as 
of the 
Closing Date, 
the Loan 
Parties' existing 

 

insurance providers as set forth in the 
certificates of insurance delivered to Agent on 
or about the 
Closing Date 
shall be 
deemed to 
be acceptable 
to Agent) 
and in 
such amounts 
as is 
carried 
generally in accordance with sound 
business practice by companies 
in similar businesses similarly 
situated and located and, in any event, 
in amount, adequacy, 
and scope reasonably satisfactory to 
Agent (it 
being agreed 
that the 
amount, adequacy, 
and scope 
of the 
policies of 
insurance of 
Borrowers in effect as of 
the Closing Date are 
acceptable to Agent). 
All the Loan Parties' 
property 
insurance policies are 
to be made 
payable to Agent 
for the benefit 
of Agent and 
the Lenders, as 
their interests may 
appear, in case of loss, 
pursuant to a standard 
lender's loss payable endorsement 
with a standard non-contributory "lender" or 
"secured party" clause and are to 
contain such other 
provisions as Agent may reasonably require to 
fully protect the Lenders' interest in the 
Collateral 
and to 
any payments 
to be 
made under 
such policies. 
All certificates 
of property 
and general 
liability insurance 
are to 
be delivered 
to Agent, 
with the 
lender's loss 
payable and 
additional 
insured endorsements in favor of Agent and shall provide for not less than thirty days (ten days in 
the case of non-payment) prior written notice 
to Agent of the exercise of 
any right of cancellation. 

Unless Borrowers provide Agent with evidence of the continuing insurance 
coverage required by 
this Agreement, 
Agent may 
purchase insurance 
at Borrowers' 
expense to 
protect Agent's 
and 
Lenders' interests in the Collateral. This insurance may, but need not, protect each Borrower's and 
each other Loan Party's interests. 
The coverage that Agent 
purchases may, 
but need not, pay any 
claim that is made 
against any Borrower or 
any other Loan Party 
in connection with the 
Collateral. 
Borrowers may 
later cancel 
any insurance 
purchased by 
Agent, but 
only after 
providing Agent 
with evidence that Borrowers 
have obtained the insurance 
coverage required by this 
Agreement. 
If Agent purchases insurance for the Collateral, 
as set forth above, Borrowers will be 
responsible 
for the costs of that insurance, including interest and any other 
charges that may be imposed with 
the placement 
of the 
insurance, until 
the effective 
date of 
the cancellation 
or expiration 
of the 
insurance and the costs of the insurance 
may be added to the principal amount of 
the Loans owing 
hereunder. 
(b)
 
Borrowers shall give Agent prompt 
notice of any loss exceeding 
$350,000 
covered by the 
casualty or business 
interruption insurance of 
any Loan Party 
or its Subsidiaries. 

Upon the occurrence and during the continuance of an 
Event of Default, Agent shall have the sole 
right to 
file claims 
under any property 
and general 
liability insurance 
policies in 
respect of 
the 
Collateral,  to  receive,  receipt  and  give 
acquittance  for  any  payments  that 
may  be  payable 
thereunder,   and   to   execute   any 
and   all   endorsements,   receipts,   releases,   assignments, 
reassignments or other 
documents that may 
be necessary to 
effect the collection, 
compromise or 
settlement of any claims under any such insurance policies. 
(c)
 
If at 
any time 
the area 
in which 
any Real 
Property that 
is subject 
to a 
Mortgage is located 
is designated a 
"flood hazard area" 
in any Flood 
Insurance Rate Map 
published 
by the Federal Emergency 
Management Agency (or any 
successor agency), obtain flood 
insurance 
in such total amount and on terms 
that are satisfactory to Agent and all 
Lenders from time to time, 
and otherwise comply 
with the Flood 
Laws or as 
is otherwise satisfactory 
to Agent and 
all Lenders. 
5.7.
 
Inspection
. 
(a)
 
Each Loan Party will, 
and will cause each 
of its Subsidiaries (other 
than any 
Mexican Subsidiary) to, 
permit Agent, any 
Lender, and 
each of their 
respective duly authorized 
representatives or agents 
to visit any 
of its properties 
and inspect any 
of its assets 
or books and 

 

 

 

 

 

records, to examine and make copies of 
its books and records, and to discuss 
its affairs, finances, 
and accounts with, and to be advised as to the same by, 
its officers and employees (provided, that 
an authorized representative of 
a Borrower shall be 
allowed to be present) 
at such reasonable times 
and intervals as Agent 
or any Lender, 
as applicable, may designate and, 
so long as no 
Default or 
Event of Default 
has occurred and 
is continuing, with 
reasonable prior notice 
to Borrowers and 
during regular business hours, at Borrowers' expense in accordance with the provisions of the Fee 
Letter, subject to the limitations set forth below in Section 5.7(c). 
(b)
 
Each Loan Party 
will, and will cause 
each of its Subsidiaries 
(other than any 
Mexican Subsidiary) to, permit Agent and each of its duly authorized representatives or agents to 
conduct field 
examinations, appraisals 
or valuations 
at such 
reasonable times 
and intervals 
as 
Agent may designate, at Borrowers' 
expense in accordance with 
the provisions of the 
Fee Letter, 
subject to the limitations set forth below in Section 5.7(c). 
(c)
 
So long as 
no Event of 
Default shall have 
occurred and be 
continuing during 
a calendar 
year, Borrowers 
shall not 
be obligated 
to reimburse 
Agent for 
more than 
2 field 
examinations during calendar 
year 2021 or 
1 field 
examination in 
such calendar year 
thereafter 
(increasing to 
2 field 
examinations if 
an Increased 
Reporting Event 
has occurred 
during such 
calendar year), 1 inventory appraisal in such calendar year (increasing to 2 inventory appraisals if 
an Increased Reporting 
Event has occurred 
during such calendar 
year), 1 equipment appraisal 
in 
such calendar 
year (increasing 
to 2 
equipment appraisals 
if an 
Increased Reporting 
Event has 
occurred  during  such  calendar 
year),  and  equipment  appraisals  requested 
by  Borrowers  in 
connection with 
a request 
for the 
Additional M/E 
Term Loan, 
in each 
case, except 
for field 
examinations and 
appraisals conducted 
in connection 
with a 
proposed Permitted 
Acquisition 
(whether or not consummated). 
5.8.
 
Compliance with 
Laws
. 
Each Loan 
Party will, 
and will 
cause each 
of its 
Subsidiaries to, comply with the requirements 
of all applicable laws, rules, regulations, 
and orders 
of any Governmental 
Authority, other than laws, rules, 
regulations, and orders 
the non-compliance 
with which, 
individually or 
in the 
aggregate, could 
not reasonably 
be expected 
to result 
in a 
Material Adverse Effect. 
5.9.
 
Environmental
. 
Each Loan Party will, and will cause each of its Subsidiaries 
to, 
(a)
 
Keep any 
property either 
owned or 
operated by 
any Loan 
Party or 
its 
Subsidiaries free of any 
Environmental Liens or post 
bonds or other financial 
assurances sufficient 
to satisfy the obligations or liability evidenced by such Environmental Liens, 
(b)
 
Comply, in 
all material respects, with 
Environmental Laws and provide 
to 
Agent documentation of such compliance which Agent reasonably requests, 
(c)
 
Promptly  notify  Agent 
of  any  release 
of  which  any 
Loan  Party  has 
knowledge of a 
Hazardous Material 
in any reportable 
quantity from 
or onto 
property owned or 
operated by any 
Loan Party or 
its Subsidiaries and 
take any Remedial 
Actions required to 
abate 
said release 
or otherwise 
to come 
into compliance, 
in all 
material respects, 
with applicable 
Environmental Law, and 

 

 

 

(d)
 
Promptly, but in any event 
within five Business Days of its receipt thereof, 
provide Agent with written notice of 
any of the following: 
(i) notice that an Environmental 
Lien 
has been filed against any of 
the real or personal property 
of a Loan Party or 
its Subsidiaries, (ii) 
commencement of any Environmental Action or written notice that an Environmental Action will 
be filed against a Loan Party or its 
Subsidiaries, and (iii) written notice of a 
violation, citation, or 
other administrative order from a Governmental Authority. 
5.10.
 
Disclosure Updates
. 
Each Loan Party will, 
promptly and in no 
event later than 
five Business Days 
after obtaining knowledge 
thereof, notify 
Agent if 
any written 
information, 
exhibit, or report 
furnished to Agent 
or the Lenders 
contained, at the 
time it was 
furnished, any 
untrue statement 
of a 
material fact 
or omitted 
to state 
any material 
fact necessary 
to make 
the 
statements contained 
therein not 
misleading in 
light of 
the circumstances 
in which 
made. 
The 
foregoing to the 
contrary notwithstanding, any 
notification pursuant to 
the foregoing provision 
will 
not cure or 
remedy the effect 
of the prior 
untrue statement of 
a material fact 
or omission of 
any 
material fact 
nor shall 
any such 
notification have 
the effect 
of amending 
or modifying 
this 
Agreement or any of the Schedules hereto. 
5.11.
 
Formation of Subsidiaries
. 
Each Loan Party 
will, at the 
time that any 
Loan 
Party forms any direct 
or indirect Subsidiary, 
acquires any direct 
or indirect Subsidiary 
after the 
Closing Date within 
ten days of 
such event (or 
such later date 
as permitted by 
Agent in its 
sole 
discretion) (a) 
cause such 
new Subsidiary 
(i) if 
such Subsidiary 
is a 
Domestic Subsidiary 
and 
Administrative Borrower requests, subject to the 
consent of Agent, that such Domestic 
Subsidiary 
be joined as a 
Borrower hereunder, to provide to Agent 
a Joinder to this Agreement, 
(ii) to provide 
to Agent a joinder 
to the Guaranty and 
Security Agreement, as applicable, 
in each case, together 
with such other 
security agreements (including 
Mortgages with respect 
to any Real 
Property owned 
in fee 
of such 
new Subsidiary 
with a 
fair market 
value of 
greater than 
$1,000,000), as 
well as 
appropriate financing statements 
(and with respect 
to all property 
subject to a 
Mortgage, fixture 
filings), all in form 
and substance reasonably satisfactory 
to Agent (including being 
sufficient to 
grant Agent a 
first priority Lien 
(subject to Permitted 
Liens) in and 
to the assets 
of such newly 
formed or acquired 
Subsidiary) and 
(iii) if 
such Subsidiary is 
a Subsidiary organized 
under the 
laws of Canada, 
or any province 
thereof, to provide 
to Agent a 
joinder to the 
Canadian Security 
Agreement or Quebec Security 
Documents, as applicable, 
in each case, 
together with such 
other 
Canadian Security Documents (including 
Mortgages with respect to 
any Real Property owned 
in 
fee of 
such new 
Subsidiary with 
a fair 
market value 
of greater 
than $1,000,000), 
as well 
as 
appropriate financing statements 
(and with respect 
to all property 
subject to a 
Mortgage, fixture 
filings), all in form 
and substance reasonably satisfactory 
to Agent (including being 
sufficient to 
grant Agent a 
first priority Lien 
(subject to Permitted 
Liens) in and 
to the assets 
of such newly 
formed or 
acquired Subsidiary); 
(b) provide, 
or cause 
the applicable 
Loan Party 
to provide, 
to 
Agent a pledge agreement (or an addendum to the Guaranty and Security Agreement or Canadian 
Security Documents) and appropriate certificates 
and powers or financing statements, 
pledging all 
of the 
direct or 
beneficial ownership 
interest in 
such new 
Subsidiary in 
form and 
substance 
reasonably satisfactory to 
Agent; provided, that 
only 65% of 
the total outstanding 
voting Equity 
Interests of any first tier Subsidiary (other than any Canadian Subsidiary) of a 
Loan Party that is a 
CFC (and 
none of 
the Equity 
Interests of 
any Subsidiary 
of such 
CFC) shall 
be required 
to be 
pledged if pledging a greater amount would result in 
adverse tax consequences or the costs to the 
Loan Parties 
of providing 
such pledge 
are unreasonably 
excessive (as 
determined by 
Agent in 
consultation with Borrowers) in 
relation to the 
benefits to Agent and 
the Lenders of 
the security 

 

 

 

 

 

 

afforded thereby (which pledge, 
if reasonably requested by Agent, 
shall be governed by the 
laws 
of the jurisdiction of 
such Subsidiary), and (c) 
provide to Agent all 
other documentation, including 
the Governing 
Documents of 
such Subsidiary 
and one 
or more 
opinions of 
counsel reasonably 
satisfactory to 
Agent, which, 
in its 
opinion, is 
appropriate with 
respect to 
the execution 
and 
delivery of the 
applicable documentation referred 
to above (including 
policies of title 
insurance, 
flood certification documentation or other documentation with respect to all Real Property owned 
in fee and 
subject to a 
mortgage). 
Any document, agreement, 
or instrument executed 
or issued 
pursuant to this Section 5.11 shall constitute a Loan Document. 
5.12.
 
Further Assurances
. 
Each Loan Party 
will, and will 
cause each of 
the other 
Loan Parties to, at any time upon the 
reasonable request of Agent, execute or deliver 
to Agent any 
and all financing 
statements, fixture filings, security 
agreements, pledges, assignments, 
mortgages, 
deeds of trust, 
opinions of 
counsel, and all 
other documents 
(the "Additional 
Documents") that 
Agent may reasonably request 
in form and substance 
reasonably satisfactory to Agent, 
to create, 
perfect, and continue perfected or to better perfect Agent's Liens in all of the assets of each of the 
Loan Parties (whether now 
owned or hereafter arising 
or acquired, tangible or 
intangible, real or 
personal) (other than any 
assets expressly excluded from 
the Collateral (as defined 
in the Guaranty 
and Security Agreement or Canadian Security Documents, as applicable) pursuant to Section 3 of 
the Guaranty and Security Agreement), 
to create and perfect 
Liens in favor of Agent 
in any Real 
Property acquired by any 
other Loan Party with a 
fair market value in 
excess of $1,000,000, and 
in order to fully 
consummate all of the transactions 
contemplated hereby and under the 
other Loan 
Documents; provided, that the foregoing shall not 
apply to any Subsidiary of a Loan Party 
that is 
a CFC (other than any Canadian Subsidiary) 
if providing such documents would result in 
adverse 
tax consequences or the 
costs to the Loan 
Parties of providing such 
documents are unreasonably 
excessive (as determined 
by Agent in 
consultation with Borrowers) 
in relation to 
the benefits to 
Agent and the 
Lenders of 
the security 
afforded thereby. 
To the 
maximum extent 
permitted by 
applicable law, if 
any Borrower or any other Loan 
Party refuses or fails to execute or 
deliver any 
reasonably requested Additional 
Documents within a 
reasonable period of 
time not to 
exceed 5 
Business Days following 
the request to 
do so, each 
Borrower and each 
other Loan Party 
hereby 
authorizes Agent to execute any such 
Additional Documents in the applicable Loan 
Party's name 
and authorizes Agent to file such executed Additional Documents in any appropriate 
filing office. 

In furtherance of, and not 
in limitation of, the 
foregoing, each Loan Party shall 
take such actions 
as Agent may reasonably request 
from time to time 
to ensure that the Obligations 
are guaranteed 
by the Guarantors and are secured 
by substantially all of the assets 
of the Loan Parties, including 
all of the outstanding capital Equity Interests of each Borrower and its 
Subsidiaries (in each case, 
other than 
with respect 
to any 
assets expressly 
excluded from 
the Collateral 
(as defined 
in the 
Guaranty and 
Security Agreement 
or Canadian 
Security Documents, 
as applicable) 
pursuant to 
Section 3 
of the 
Guaranty and 
Security Agreement). 
Notwithstanding anything 
to the 
contrary 
contained herein 
(including Se 
ction 5.11 
hereof and 
this Section 
5.12) or 
in any 
other Loan 
Document, (x) Agent shall not accept delivery of any Mortgage 
from any Loan Party unless each 
of  the  Lenders  has 
received  45  days  prior 
written  notice  thereof  and 
Agent  has  received 
confirmation from each Lender that such Lender has 
completed its flood insurance diligence, has 
received copies 
of all 
flood insurance 
documentation and 
has confirmed 
that flood 
insurance 
compliance has been completed 
as required by the Flood 
Laws or as otherwise 
satisfactory to such 
Lender and (y) Agent shall not accept delivery of any joinder to any Loan Document with respect 
to any Subsidiary of any Loan Party that is not a Loan Party, 
if such Subsidiary that qualifies as a 
"legal entity 
customer" under 
the Beneficial 
Ownership Regulation 
unless such 
Subsidiary has 

 

 

 

 

 

 

 

 

delivered a 
Beneficial Ownership 
Certification in 
relation to 
such Subsidiary 
and Agent 
has 
completed its 
Patriot Act 
searches, OFAC/PEP 
searches and 
customary individual 
background 
checks for such Subsidiary, the results of which shall be satisfactory to Agent. 
Without limitation 
of the 
foregoing, upon 
Agent's request 
at any 
time that 
Availability is 
less than 
10% of 
the 
Maximum Revolver Amount, the 
Loan Parties shall cause 
all loans owed by 
Mexican Subsidiaries 
to the Loan Parties to be evidences by a note and shall execute or deliver to Agent any Additional 
Documents as 
Agent may 
reasonably request 
in form 
and substance 
reasonably satisfactory 
to 
Agent, to create, 
perfect, and continue 
perfected or to 
better perfect Agent's 
Liens in such 
loans 
and notes. 
5.13.
 
Location  of  Inventory  and 
M&E;  Chief  Executive  Office; 
Registered 
Office
. 
Each Loan Party will, and 
will cause each of its 
Subsidiaries to, keep (a) their 
Inventory 
and M&E 
only at 
the locations 
identified on 
Schedule 4.25 
to this 
Agreement (provided 
that 
Borrowers may amend 
Schedule 4.25 
to this 
Agreement so long 
as such 
amendment occurs by 
written notice to Agent not 
less than ten days 
prior to the date 
on which such Inventory 
or M&E 
is moved to such 
new location and so 
long as Agent has 
consented to such amendment 
and such 
new location 
is within 
the continental 
United States 
or Canada), 
and (b) 
their respective 
chief 
executive offices (and registered office in the case of Canadian Loan Parties) only at the locations 
identified  on 
Schedule  7 
to  the 
Guaranty  and 
Security  Agreement 
or  Canadian 
Security 
Documents, as applicable. 
Each Loan Party 
will, and will 
cause each of 
its Subsidiaries to, 
use 
their commercially 
reasonable efforts 
to obtain 
Collateral Access 
Agreements for 
each of 
the 
locations identified on Schedule 7 to 
the Guaranty and Security Agreement 
and Schedule 4.25 to 
this Agreement. 
5.14.
 
OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws
. 

Each Loan 
Party will, 
and will 
cause each 
of its 
Subsidiaries to, 
comply with 
all applicable 
Sanctions, Anti-Corruption Laws 
and Anti-Money Laundering 
Laws. 
Each of the 
Loan Parties 
and its 
Subsidiaries shall 
implement and 
maintain in 
effect policies 
and procedures 
reasonably 
designed to 
ensure compliance 
by the 
Loan Parties 
and their 
Subsidiaries and 
their respective 
directors, officers, 
employees, agents 
and Affiliates 
with Sanctions, 
Anti-Corruption Laws 
and 
Anti-Money Laundering Laws. 
5.15.
 
Compliance with ERISA 
and the IRC
. 
In addition to 
and without limiting 
the generality of Section 5.8,, each Loan 
Party shall, and shall cause each of 
its ERISA Affiliates 
to (a) 
comply with 
applicable provisions 
of ERISA 
and the 
IRC with 
respect to 
all Employee 
Benefit Plans except 
as could not reasonably 
be expected to 
result, individually or 
in the aggregate, 
in a 
Material Adverse 
Effect, (b) 
without the 
prior written 
consent of 
Agent and 
the Required 
Lenders, not take any action 
or fail to take action 
the result of which could 
reasonably be expected 
to result in 
a Loan Party 
or ERISA Affiliate incurring 
a liability to 
the PBGC or 
to a Multiemployer 
Plan (other than to 
pay contributions, benefits or 
premiums payable in the 
ordinary course), except 
as could 
not reasonably 
be expected 
to result, 
individually or 
in the 
aggregate, in 
a Material 
Adverse Effect, (c) allow 
any facts or 
circumstances to exist with 
respect to one 
or more Employee 
Benefit Plans that, in the aggregate, 
reasonably could be expected to result 
in a Material Adverse 
Effect, (d) 
not participate 
in any 
non-exempt prohibited 
transaction that 
could reasonably 
be 
expected to 
result in 
civil penalty 
excise tax, 
fiduciary liability 
or correction 
obligation under 
ERISA or the 
IRC, except 
as could 
not reasonably 
be expected 
to result, 
individually or 
in the 
aggregate, in a Material Adverse Effect, (e) operate 
each Employee Benefit Plan in such a 
manner 

 

 

 

 

that will not incur any tax liability under the IRC (including Section 4980B 
of the IRC) that could 
reasonably be expected 
to result, individually 
or in the 
aggregate, in a 
Material Adverse Effect, 
and (e) 
furnish to 
Agent upon 
Agent's written 
request such 
additional information 
about any 
Employee Benefit Plan for 
which any Loan Party 
or ERISA Affiliate could 
reasonably expect to 
incur any material liability. 
With respect to each Pension Plan (other than a Multiemployer 
Plan) 
except as could not 
reasonably be expected to 
result, individually or in the 
aggregate, in a Material 
Adverse Effect or the imposition of any Lien on the assets of any Loan Party under ERISA or the 
IRC, the Loan 
Parties and 
the ERISA Affiliates 
shall (i) 
satisfy in 
full and 
in a timely 
manner, 
without incurring any late payment or underpayment charge 
or penalty and without giving rise to 
any Lien, all of the contribution and funding requirements of the IRC and of ERISA, and (ii) pay, 
or cause 
to be 
paid, to 
the PBGC 
in a 
timely manner, 
without incurring 
any late 
payment or 
underpayment charge or penalty, all premiums required pursuant to ERISA. 
5.16.
 
Canadian Compliance
. 
In addition to 
and without limiting 
the generality of 
Section 5.8, 
each Borrower 
will, and 
will cause 
each of 
its Subsidiaries 
to, (a) 
comply with 
applicable provisions and 
funding requirements of 
the Income Tax 
Act (Canada) and 
applicable 
federal or provincial pension 
benefits legislation with respect 
to all Canadian Pension 
Plans except 
where the failure to do so would not reasonably 
be expected to result in a Material Adverse Effect 
and (b) 
furnish to 
Agent upon 
Agent's written 
request such 
additional information 
about any 
Canadian Pension Plan 
for which Borrowers 
or their Subsidiaries would 
reasonably expect to 
incur 
any material liability. 
All employer or 
employee payments, contributions 
or premiums required 
to be remitted, paid 
to or in respect of 
Canadian statutory benefit plans that 
any Borrower or any 
of its Subsidiaries is required to participate in or comply with, including the Canada Pension Plan 
or Quebec 
Pension Plan 
as maintained 
by the 
Government of 
Canada or 
Province of 
Quebec, 
respectively,  and  plans  administered  pursuant  to 
applicable  workplace  safety  insurance  and 
employment insurance legislation will be 
paid or remitted by 
each such Person in accordance 
with 
the terms thereof, any agreements relating thereto and all applicable laws except to the extent that 
any amount so payable is subject 
to a Permitted Protest and 
a Canadian Priority Payable Reserve 
for such amount has been established. 

6.
 
NEGATIVE COVENANTS. 
Each  Borrower covenants 
and agrees 
that, until 
the termination 
of all 
of the 
Commitments and the payment in full of the Obligations: 
6.1.
 
Indebtedness
. 
Each Loan 
Party will 
not, and 
will not 
permit any 
of its 
Subsidiaries to, create, 
incur, assume, 
suffer to exist, 
guarantee, or otherwise become 
or remain, 
directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness. 
6.2.
 
Liens
. 
Each Loan Party will not, and will not permit any of its 
Subsidiaries to, 
create, incur, assume, 
or suffer to 
exist, directly or indirectly, 
any Lien on or 
with respect to any 
of its 
assets, of 
any kind, 
whether now 
owned or 
hereafter acquired, 
or any 
income or 
profits 
therefrom, except for Permitted Liens. 

 

 

 

 

 

 

 

 

 

 

 

 

6.3.
 
Restrictions on Fundamental 
Changes
. 
Each Loan Party 
will not, and 
will 
not permit any of its Subsidiaries to, 
(a)
 
Other than in order to 
consummate a Permitted Acquisition, enter 
into any 
merger, amalgamation, 
consolidation, reorganization, 
or recapitalization, or 
reclassify its Equity 
Interests, except 
for (i) 
any merger 
or amalgamation 
between Loan 
Parties; provided, 
that a 
Borrower must be the surviving or continuing entity of any such merger to which it is a party, 
(ii) 
any merger or amalgamation between 
a Loan Party and a 
Subsidiary of such Loan 
Party that is not 
a Loan Party so long 
as such Loan Party is 
the surviving or continuing entity of 
any such merger 
or amalgamation, and 
(iii) any merger 
or amalgamation between 
Subsidiaries of any 
Loan Party 
that are not Loan Parties, 
(b)
 
liquidate,  wind 
up,  or 
dissolve  itself 
(or  suffer 
any  liquidation 
or 
dissolution), except for (i) 
the liquidation or dissolution of 
non-operating Subsidiaries of any 
Loan 
Party with nominal assets and 
nominal liabilities, (ii) the liquidation 
or dissolution of a Loan 
Party 
(other than 
any Borrower) 
or any 
of its 
wholly-owned Subsidiaries 
so long 
as all 
of the 
assets 
(including any 
interest in 
any Equity 
Interests) of 
such liquidating 
or dissolving 
Loan Party 
or 
Subsidiary are 
transferred to 
a Loan 
Party that 
is not 
liquidating or 
dissolving, or 
(iii) the 
liquidation or dissolution 
of a Subsidiary 
of any Loan 
Party that is 
not a Loan 
Party (other than 
any such Subsidiary the 
Equity Interests of which 
(or any portion thereof) 
is subject to a 
Lien in 
favor of 
Agent) so 
long as 
all of 
the assets 
of such 
liquidating or 
dissolving Subsidiary 
are 
transferred to a Subsidiary of a Loan Party that is not liquidating or dissolving, 
(c)
 
suspend or 
cease operating 
a substantial 
portion of 
its or 
their business, 
except as 
permitted pursuant 
to clauses 
(a) or 
(b) above 
or in 
connection with 
a transaction 
permitted under Section 6.4, or 
(d)
 
change its classification/status for U.S. federal income tax purposes. 
6.4.
 
Disposal  of 
Assets
. 
Other  than 
Permitted  Dispositions 
or  transactions 
expressly permitted by Sections 6.3 or 6.9, 
each Loan Party will not, and will not 
permit any of its 
Subsidiaries to, convey, 
sell, lease, license, assign, 
transfer, or otherwise 
dispose of any of 
its or 
their assets (including by an allocation of assets among newly divided limited liability companies 
pursuant to a "plan of division"). 
6.5.
 
Nature of Business
. 
Each Loan Party 
will not, and 
will not permit 
any of its 
Subsidiaries to, make any change in 
the nature of its or their 
business as described in Schedule 6.5 
to this Agreement or acquire any 
properties or assets that are not reasonably 
related to the conduct 
of such business 
activities; provided, that 
the foregoing shall 
not prevent any 
Loan Party and 
its 
Subsidiaries from engaging 
in any business 
that is 
reasonably related or 
ancillary to its 
or their 
business. 
6.6.
 
Prepayments and 
Amendments
. 
Each Loan 
Party will 
not, and 
will not 
permit any of its Subsidiaries (other than any Mexican Subsidiary) to, 
(a)
 
Except in connection with 
Refinancing Indebtedness permitted by 
Section 
6.1, 

 

 

 

 

 

(i)
 
optionally prepay, 
redeem, defease, purchase, 
or otherwise acquire 
any  Indebtedness  of  any  Loan  Party  or  its  Subsidiaries,  other  than 
(A)  the  Obligations  in 
accordance with this Agreement, (B) 
Hedge Obligations, (C) Permitted 
Intercompany Advances, 
or (D) other Indebtedness so long as the Payment Conditions are satisfied, or 
(ii)
 
make  any  payment 
on  account  of 
Indebtedness  that  has 
been 
contractually subordinated in right of payment to the 
Obligations if such payment is not permitted 
at such time under the subordination terms and conditions, or 
(b)
 
Directly  or  indirectly,  amend,  modify, 
or  change  any  of  the  terms  or 
provisions of: 
(i)
 
any agreement, 
instrument, document, 
indenture, or 
other writing 
evidencing or 
concerning Permitted 
Indebtedness other 
than (A) 
the Obligations 
in accordance 
with this 
Agreement, (B) 
Hedge Obligations, 
(C) Permitted 
Intercompany Advances, 
and (D) 
Indebtedness  permitted 
under  clauses 
(c),  (h), 
(j)  and 
(k)  of 
the  definition 
of  Permitted 
Indebtedness, in 
each case, 
if the 
effect thereof, 
either individually 
or in 
the aggregate, 
could 
reasonably be expected to be adverse to the interests of the Lenders or the Loan Parties, or 
(ii)
 
the  Governing 
Documents  of 
any  Loan 
Party  or 
any  of 
its 
Subsidiaries if 
the effect 
thereof, either 
individually or 
in the 
aggregate, could 
reasonably be 
expected to be materially adverse to the interests of the Lenders. 
6.7.
 
Restricted Payments
. 
Each Loan Party will not, and will not permit any 
of its 
Subsidiaries to, make any Restricted Payment; provided, that so long as it is permitted by law, 
(a)
 
so long 
as no 
Default or 
Event of 
Default shall 
have occurred 
and be 
continuing or would result therefrom, Administrative Borrower may make distributions to former 
employees, officers, 
or directors 
of Administrative 
Borrower (or 
any spouses, 
ex-spouses, or 
estates of any 
of the foregoing) 
on account of 
redemptions of Equity 
Interests of Administrative 
Borrower held by 
such Persons; provided, 
that the aggregate 
amount of such 
redemptions made 
by Administrative Borrower during 
the term of 
this Agreement 
plus
 
the amount of 
Indebtedness 
outstanding under clause (l) 
of the definition of 
Permitted Indebtedness, does not exceed 
$250,000 
in the aggregate, 
(b)
 
so long 
as no 
Default or 
Event of 
Default shall 
have occurred 
and be 
continuing or would result therefrom, Administrative Borrower may make distributions to former 
employees, officers, 
or directors 
of Administrative 
Borrower (or 
any spo 
uses, ex 
-spouses, or 
estates of any of the foregoing), solely in the form of forgiveness of Indebtedness of such Persons 
owing  to 
Administrative  Borrower 
on  account 
of  repurchases 
of  the 
Equity  Interests 
of 
Administrative Borrower held by such Persons; provided, that such Indebtedness was incurred by 
such Persons solely to acquire Equity Interests of Administrative Borrower, 
(c)
 
so long 
as no 
Default or 
Event of 
Default shall 
have occurred 
and be 
continuing  or 
would  result 
therefrom,  Administrative 
Borrower's  Subsidiaries 
may  make 
distributions to 
Administrative Borrower (i) 
in an 
amount sufficient 
to pay 
franchise taxes 
and 
other fees required to maintain the legal existence of the 
Loan Parties and their Subsidiaries to the 
extent actually used by Administrative Borrower to pay such taxes, costs 
and expenses, and (ii) in 

 

 

 

 

 

 

 

an amount sufficient to pay out-of-pocket legal, accounting and filing costs and other expenses in 
the nature of 
overhead in the 
ordinary course of 
business of the Loan 
Parties and their Subsidiaries, 

(d)
 
Borrowers and their Subsidiaries 
may make dividends 
and distributions to 
Administrative Borrower to make payments permitted to be made pursuant to Section 6.10(f), or 
(e)
 
other Restricted Payments 
in an aggregate 
amount not to exceed 
$1,000,000 
so long as the Payment Conditions are satisfied.. 

6.8.
 
Accounting Methods
. 
Each Loan Party will not, and will 
not permit any of its 
Subsidiaries to, modify or change its fiscal year or its method 
of accounting (other than as may be 
required to conform to GAAP). 
6.9.
 
Investments
. 
Each  Loan  Party  will  not,  and 
will  not  permit  any  of  its 
Subsidiaries to, 
directly or 
indirectly, make 
or acquire 
any Investment 
or incur 
any liabilities 
(including contingent obligations) for 
or in connection with 
any Investment except for 
Permitted 
Investments. 
6.10.
 
Transactions with 
Affiliates
. 
Each Loan Party 
will not, and 
will not permit 
any of its Subsidiaries 
to, directly or indirectly, 
enter into or permit 
to exist any transaction 
with 
any Affiliate of any Loan Party or any of its Subsidiaries except for: 
(a)
 
transactions   (other   than 
the   payment 
of   management, 
consulting, 
monitoring, or advisory 
fees) between such 
Loan Party or 
its Subsidiaries, on 
the one hand, 
and 
any Affiliate of such Loan Party 
or its Subsidiaries, on the other 
hand, so long as 
such transactions 
(i) are fully 
disclosed to 
Agent prior to 
the consummation 
thereof, if they 
involve one 
or more 
payments by such Loan Party 
or its Subsidiaries in 
excess of $500,000 for any 
single transaction 
or series of related 
transactions, and (ii) are no 
less favorable, taken as 
a whole, to such Loan 
Party 
or its Subsidiaries, as 
applicable, than would be 
obtained in an arm's 
length transaction with a 
non-
Affiliate, 
(b)
 
any  indemnity 
provided  for 
the  benefit 
of  directors 
(or  comparable 
managers) of a Loan Party or one of its Subsidiaries 
so long as it has been approved by such Loan 
Party's or such Subsidiary's 
board of directors (or comparable 
governing body) in accordance with 
applicable law, 
(c)
 
the payment 
of reasonable 
compensation, severance, 
or employee 
benefit 
arrangements  to  employees, 
officers,  and  outside 
directors  of  a 
Loan  Party  or 
one  of  its 
Subsidiaries in the ordinary course 
of business and consistent 
with industry practice so long 
as it 
has been approved 
by such 
Loan Party's or 
such Subsidiary's 
board of directors 
(or comparable 
governing body) in accordance with applicable law, 
(d)
 
(i) transactions solely 
among the Loan 
Parties, and (ii) 
transactions solely 
among Subsidiaries of Loan Parties that are not Loan Parties, 
(e)
 
transactions  permitted 
by  Section 
6.3,  Section 
6.7,  or 
Section  6.9, 
repayments of Permitted Intercompany Advances, and, to 
the extent permitted under Section 6.6, 
repayments of Subordinated Indebtedness, and 

 

 

 

 

 

 

 

(f)
 
agreements  for  the  non-exclusive  licensing  of  intellectual  property, 
or 
distribution of products, 
in each case, 
among the Loan 
Parties and their 
Subsidiaries for the 
purpose 
of the counterparty 
thereof operating its 
business, and agreements 
for the assignment 
of intellectual 
property from any Loan Party or any of its Subsidiaries to any Loan Party. 
6.11.
 
Use of 
Proceeds
. 
Each Loan 
Party will 
not, and 
will not 
permit any 
of its 
Subsidiaries to, use 
the proceeds of 
any Loan made 
hereunder for any 
purpose other than 
(a) on 
the Closing Date, (i) to repay, in full, the outstanding principal, accrued interest, 
and accrued fees 
and expenses owing 
under or in 
connection with the 
Existing Credit Facility, 
and (ii) to 
pay the 
fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, 
and the 
transactions contemplated 
hereby and 
thereby, in 
each case, as 
set forth 
in the 
Flow of 
Funds Agreement, 
and (b) 
thereafter, consistent 
with the 
terms and 
conditions hereof, 
for their 
lawful and permitted purposes; provided that (x) no part of the proceeds 
of the Loans will be used 
to purchase 
or carry 
any such 
Margin Stock 
or to 
extend credit 
to others 
for the 
purpose of 
purchasing or carrying 
any such Margin 
Stock or for 
any purpose that 
violates the provisions 
of 
Regulation T, U or X of the Board of Governors, (y) no part of the proceeds of 
any Loan or Letter 
of Credit will 
be used, directly 
or indirectly, 
to make any 
payments to a 
Sanctioned Entity or 
a 
Sanctioned Person, 
to fund 
any investments, 
loans or 
contributions in, 
or otherwise make 
such 
proceeds available to, 
a Sanctioned Entity 
or a Sanctioned 
Person, to fund 
any operations, activities 
or business of 
a Sanctioned Entity or 
a Sanctioned Person, or 
in any other manner 
that would result 
in a violation of 
Sanctions by any 
Person, and (z) that 
no part of the 
proceeds of any 
Loan or Letter 
of Credit will be 
used, directly or indirectly, 
in furtherance of an offer, 
payment, promise to pay, 
or authorization of 
the payment or 
giving of money, 
or anything else 
of value, to 
any Person in 
violation of any Sanctions, Anti-Corruption Laws or Anti-Money Laundering Laws. 
6.12.
 
Limitation on Issuance 
of Equity Interests
. 
Except for the 
issuance or sale 
of Qualified Equity Interests 
by Administrative Borrower, 
each Loan Party will 
not, and will not 
permit any of its Subsidiaries to, issue or sell any of its Equity Interests. 
6.13.
 
Inventory or M&E with Bailees
. 
Each Borrower will not, and 
will not permit 
any of its Subsidiaries (other than any Mexican Subsidiary) to, store 
its Inventory or M&E at any 
time with a bailee, 
warehouseman, or similar party 
except as set forth 
on Schedule 4.25 (as 
such 
Schedule may be amended in accordance with Section 5.14). 
6.14.
 
Employee Benefits
. 
Each Loan Party 
will not, and 
will not permit 
any of its 
Subsidiaries to: 
(a)
 
Terminate, or permit any ERISA Affiliate to terminate, any 
Pension Plan in 
a manner, 
or take any 
other action with 
respect to any 
Pension Plan, which 
could reasonably be 
expected to result in any liability of any Loan Party or ERISA Affiliate to the PBGC. 
(b)
 
Fail to make, 
or permit any 
ERISA Affiliate to 
fail to make, 
full payment 
when due 
of all 
amounts which, 
under the 
provisions of 
any Benefit 
Plan, agreement 
relating 
thereto or applicable 
Law, any 
Loan Party or 
ERISA Affiliate 
is required to 
pay if such 
failure 
could reasonably be expected to have a Material Adverse Effect. 

 

(c)
 
Permit to 
exist, or 
allow any 
ERISA Affiliate 
to permit 
to exist, 
any 
accumulated funding deficiency within 
the meaning of section 302 
of ERISA or section 412 
of the 
Code, whether 
or not 
waived, with 
respect to 
any Pension 
Plan which 
exceeds $500,000 
with 
respect to all Pension Plans in the aggregate. 
(d)
 
Acquire, or permit any 
ERISA Affiliate to acquire, an 
interest in any Person 
that causes such Person 
to become an ERISA 
Affiliate with respect to a 
Loan Party or with 
respect 
to any ERISA Affiliate if such Person sponsors, maintains, or contributes 
to, or at any time in the 
six-year period preceding 
such acquisition 
has sponsored, maintained, 
or contributed to, 
(i) any 
Pension Plan or (ii) any Multiemployer Plan. 
(e)
 
Contribute to or assume 
an obligation to contribute 
to, or permit any 
ERISA 
Affiliate to contribute to or assume an obligation to contribute to, any Multiemployer Plan not set 
forth on Schedule 4.10. 
(f)
 
Amend, or permit any ERISA 
Affiliate to amend, a 
Pension Plan resulting 
in a material increase in 
current liability such that a 
Loan Party or ERISA Affiliate 
is required to 
provide security to such Pension Plan under the IRC. 
6.15.
 
Canadian Employee 
Benefits
. 
No Borrower 
will, or 
will permit 
any of 
its 
Subsidiaries to: 
(a)
 
establish, maintain, 
sponsor, administer, 
contribute to, 
participate in 
or 
assume or incur any liability in respect 
of any Canadian Defined Benefit Plan or amalgamate 
with 
any Person if such Person, sponsors, 
administers, contributes to, participates in or 
has any liability 
in respect 
of, any 
Canadian Defined 
Benefit Plan 
other than 
a Canadian 
Multi-Employer Plan, 
without  the  prior 
written  consent  of 
the  Agent  (which 
consent  shall  not 
be  unreasonably 
conditioned, withheld or delayed), 
(b)
 
terminate any Canadian Pension Plan in a manner, 
or take any other action 
with respect 
to any 
Canadian Pension 
Plan, which 
would reasonably 
be expected 
to result 
in a 
Material Adverse Effect, or 
(c)
 
fail to make 
full payment when 
due of any 
amounts, under the 
provisions 
of any Canadian 
Pension Plan, 
any agreement relating 
thereto or 
applicable law 
if such 
failure 
would reasonably be expected to result in a Material Adverse Effect. 
 

7.
 
FINANCIAL COVENANT. 
Each 
Borrower covenants 
and agrees 
that, until 
the termination 
of all 
of the 
Commitments and the payment in full of the Obligations: 

(a)
 
Borrowers will have 
a Fixed Charge Coverage 
Ratio, measured on a 
month-
end basis, of at least the required amount set forth 
in the following table for the applicable period 
set forth opposite thereto: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Applicable Ratio 
Applicable Period 
1.10:1.0 
For the 12 month period 
ending November 30, 2020 
1.10:1.0 
For the 12 month period 
ending each month thereafter 
 
(b)
 
Borrowers will not permit BRP/Navistar 
Project Cap Ex to be 
greater than 
the amount set forth in the following table for the applicable period set forth opposite thereto: 
Applicable Ratio 
Applicable Period 
$1,119,000 
For the period 
commencing on the Closing Date and ending December 
31, 2020 
$13,672,000 
For the 12 month period 
ending December 31, 2021 
$2,090,000 
For the 12 month period 
ending December 31, 2022 
 
8.
 
EVENTS OF DEFAULT. 
Any one or more of the following events shall constitute an event of default (each, 
an "Event of Default") under this Agreement: 
8.1.
 
Payments
. 
If Borrowers fail to 
pay when due and 
payable, or when declared 
due and payable, 
(a) all or 
any portion of 
the Obligations consisting 
of interest, fees, 
or charges 
due the Lender 
Group, reimbursement of 
Lender Group Expenses, 
or other amounts 
(other than 
any portion thereof constituting principal) constituting Obligations (including any portion thereof 
that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed 
or allowable in whole 
or in part 
as a claim in 
any such Insolvency 
Proceeding), and such 
failure 
continues for a period of three Business Days, (b) all or any portion of the 
principal of the Loans, 
or (c) 
any amount 
payable to 
Issuing Bank in 
reimbursement of 
any drawing 
under a 
Letter of 
Credit; 
8.2.
 
Covenants
. 
If any Loan Party or any of its Subsidiaries: 
(a)
 
fails to perform 
or observe 
any covenant or 
other agreement contained 
in 
any of (i) 
Sections 3.6, 5.1, 
5.2, 5.3 (solely 
if any Borrower 
is not in 
good standing in 
its jurisdiction 
of organization), 5.6, 
5.7 (solely if any 
Borrower refuses to allow 
Agent or its 
representatives or 
agents to visit any Borrower's properties, 
inspect its assets or books or records, 
examine and make 
copies of its books and records, or discuss Borrowers' 
affairs, finances, and accounts with officers 
and employees of any Borrower), 5.10, 5.11, 
5.13, or 5.14 of this Agreement, (ii) Section 6 of 
this 

 

 

 

 

 

 

 

 

 

 

 

 

Agreement, (iii) 
Section 7 
of this 
Agreement, or 
(iv) Section 
7 of 
the Guaranty 
and Security 
Agreement or Section 7 of the Canadian Security Agreement; 
(b)
 
fails to perform 
or observe 
any covenant or 
other agreement contained 
in 
any of 
Sections 5.3 
(other than 
if any 
Borrower is 
not in 
good standing 
in its 
jurisdiction of 
organization), 5.4, 5.5, 5.8, and 
5.12 of this Agreement and such 
failure continues for a period of 
ten days 
after the 
earlier of 
(i) the 
date on 
which such 
failure shall 
first become known 
to any 
officer of any Borrower, 
or (ii) the date on which 
written notice thereof is given to 
Borrowers by 
Agent; or 
(c)
 
fails to perform 
or observe 
any covenant or 
other agreement contained 
in 
this Agreement, or in 
any of the other 
Loan Documents, in each 
case, other than any 
such covenant 
or agreement that is 
the subject of another 
provision of this Section 
8 (in which event 
such other 
provision of this Section 
8 shall govern), and 
such failure continues for 
a period of thirty 
days after 
the earlier 
of (i) 
the date 
on which 
such failure 
shall first 
become known 
to any 
officer of 
any 
Borrower, or (ii) the date on which written notice thereof is given to Borrowers by Agent; 
8.3.
 
Judgments
. 
If one or more 
judgments, orders, requirements 
to pay issued 
by 
any Canadian Governmental 
Authority or awards 
for the payment 
of money involving 
an aggregate 
amount of 
$500,000, or 
more (except 
to the 
extent fully 
covered (other 
than to 
the extent 
of 
customary deductibles) 
by insurance 
pursuant to 
which the 
insurer has 
not denied 
coverage) is 
entered or 
filed against 
a Loan 
Party or 
any of 
its Subsidiaries, 
or with 
respect to 
any of 
their 
respective assets, and 
either (a) there 
is a period 
of thirty consecutive 
days at any 
time after the 
entry of any such judgment, order, or award during which (i) 
the same is not discharged, satisfied, 
vacated, or 
bonded pending 
appeal, or 
(ii) a 
stay of 
enforcement thereof 
is not 
in effect, 
or (b) 
enforcement proceedings are commenced upon such judgment, order, or award; 
8.4.
 
Voluntary 
Bankruptcy, etc
. 
If an Insolvency Proceeding is commenced by a 
Loan Party or any of its Subsidiaries; 
8.5.
 
Involuntary Bankruptcy, 
etc
. 
If an 
Insolvency Proceeding 
is commenced 
against a Loan 
Party or any 
of its Subsidiaries and 
any of the 
following events occur: (a) 
such Loan 
Party or such Subsidiary 
consents to the institution 
of such Insolvency Proceeding 
against it, (b) 
the petition 
commencing the 
Insolvency Proceeding 
is not 
timely controverted, 
(c) the 
petition 
commencing the Insolvency Proceeding is not dismissed within sixty calendar days of the date of 
the filing thereof, 
(d) an interim 
trustee is appointed 
to take possession 
of all or 
any substantial 
portion of the properties or assets of, or 
to operate all or any substantial portion of the 
business of, 
such Loan Party 
or its Subsidiary, or 
(e) an order 
for relief shall 
have been issued 
or entered therein; 
8.6.
 
Default Under Other 
Agreements
. 
If there is 
(a) any "Event 
of Default" as 
such term 
is defined 
in the 
Mexican Term 
Loan Agreement, 
or (b) 
a default 
in one 
or more 
agreements to 
which a 
Loan Party 
or any 
of its 
Subsidiaries is 
a party 
with one 
or more 
third 
Persons relative to a Loan 
Party's or any of its 
Subsidiaries' Indebtedness involving an aggregate 
amount of $500,000 
or more, and 
such default (i) 
occurs at the 
final maturity of 
the obligations 
thereunder, or 
(ii) results 
in a 
right by 
such third 
Person, irrespective 
of whether 
exercised, to 
accelerate the maturity of such Loan Party's or its Subsidiary's obligations thereunder; 

 

 

 

 

 

 

8.7.
 
Representations, etc
. 
If any warranty, representation, certificate, 
statement, or 
Record made herein 
or in any 
other Loan Document or 
delivered in writing 
to Agent or any 
Lender 
in connection with 
this Agreement or 
any other Loan 
Document proves to 
be untrue in 
any material 
respect (except that 
such materiality qualifier 
shall not 
be applicable to 
any representations and 
warranties that already are 
qualified or modified by 
materiality in the text 
thereof) as of the 
date 
of issuance or making or deemed making thereof; 
8.8.
 
Guaranty
. 
If the obligation of any Guarantor under the guaranty 
contained in 
the Guaranty and Security Agreement or Canadian Guaranty is 
limited or terminated by operation 
of law or by such Guarantor (other than in accordance with the terms of this Agreement) or if any 
Guarantor repudiates or revokes or purports to repudiate or revoke any such guaranty; 
8.9.
 
Security Documents
. 
If the Guaranty and Security Agreement, any Canadian 
Security Document 
or any 
other Loan 
Document that 
purports to 
create a 
Lien, shall, 
for any 
reason, fail or 
cease to create a 
valid and perfected 
and, (except to 
the extent of Permitted 
Liens 
which are 
non-consensual Permitted 
Liens, permitted 
purchase money 
Liens or 
the interests 
of 
lessors under Capital 
Leases) first priority 
Lien on the 
Collateral covered thereby, except 
as a result 
of a disposition of the applicable Collateral in a transaction permitted under this Agreement; 
8.10.
 
Loan Documents
. 
The validity or enforceability of any Loan Document shall 
at any time for any reason 
(other than solely as the result of an action or failure to 
act on the part 
of Agent) be declared to be null and 
void, or a proceeding shall be commenced 
by a Loan Party or 
its Subsidiaries, or 
by any Governmental 
Authority having jurisdiction 
over a Loan 
Party or its 
Subsidiaries, seeking to establish the 
invalidity or unenforceability thereof, or 
a Loan Party or its 
Subsidiaries shall 
deny that 
such Loan 
Party or 
its Subsidiaries 
has any 
liability or 
obligation 
purported to be created under any Loan Document; or 
8.11.
 
Change of 
Control
. 
A Change 
of Control 
shall occur, 
whether directly 
or 
indirectly. 
9.
 
RIGHTS AND REMEDIES. 
9.1.
 
Rights and Remedies
. 
Upon the occurrence and during the continuation of an 
Event of Default, Agent may, and, at 
the instruction of the Required Lenders, shall, in addition to 
any other 
rights or 
remedies provided 
for hereunder 
or under 
any other 
Loan Document 
or by 
applicable law, do any one or more of the following: 
(a)
 
by written notice to Borrowers, (i) declare 
the principal of, and any and all 
accrued and unpaid interest and fees in respect of, the Loans and all other Obligations 
(other than 
the Bank Product Obligations), whether evidenced by this Agreement or by any of the other Loan 
Documents to 
be immediately 
due and 
payable, whereupon 
the same 
shall become 
and be 
immediately due and payable and Borrowers shall be obligated to repay all of such Obligations in 
full, without presentment, demand, protest, or further notice or other 
requirements of any kind, all 
of which are hereby expressly 
waived by each Borrower, and (ii) direct Borrowers 
to provide (and 
Borrowers  agree that 
upon receipt 
of such 
notice  Borrowers will 
provide)  Letter of 
Credit 
Collateralization to 
Agent to 
be held 
as security 
for Borrowers' 
reimbursement obligations 
for 
drawings that may subsequently occur under issued and outstanding Letters of Credit; 

 

 

 

 

 

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

 

 

 

 

 

10.3.
 
Indemnification
. 
Each Borrower shall 
pay, indemnify, 
defend, and hold 
the 
Agent-Related Persons, the Lender-Related Persons, the 
Issuing Bank, and each 
Participant (each, 
an "Indemnified Person") 
harmless (to the 
fullest extent permitted 
by law) from 
and against any 
and  all  claims,  demands, 
suits,  actions,  investigations,  proceedings, 
liabilities,  fines,  costs, 
penalties, and 
damages, and 
all reasonable 
fees and 
disbursements of 
attorneys, experts, 
or 
consultants and 
all other 
costs and 
expenses actually 
incurred in 
connection therewith 
or in 
connection with 
the enforcement 
of this 
indemnification (as 
and when 
they are 
incurred and 
irrespective of whether suit is brought), 
at any time asserted against, 
imposed upon, or incurred by 
any of 
them (a) 
in connection 
with or 
as a 
result of 
or related 
to the 
execution and 
delivery 
(provided, that Borrowers shall not 
be liable for costs and 
expenses (including attorneys' fees) of 
any  Lender  (other  than  Wells 
Fargo)  incurred  in  advising,  structuring,  drafting,  reviewing, 
administering or syndicating the Loan 
Documents), enforcement, performance, or administration 
(including any restructuring 
or workout with 
respect hereto) of 
this Agreement, any 
of the other 
Loan Documents, or 
the transactions contemplated 
hereby or thereby 
or the monitoring 
of Loan 
Parties' and their Subsidiaries' compliance 
with the terms of 
the Loan Documents (provided, 
that 
the indemnification in this clause (a) shall 
not extend to (i) disputes 
solely between or among the 
Lenders that do 
not involve any 
acts or omissions 
of any Loan 
Party, or (ii) disputes solely 
between 
or among the Lenders and 
their respective Affiliates that 
do not involve any acts 
or omissions of 
any Loan Party; 
it being 
understood and agreed 
that the 
indemnification in 
this clause 
(a) shall 
extend to 
Agent (but 
not the 
Lenders unless the 
dispute involves 
an act 
or omission 
of a 
Loan 
Party) relative to disputes between or among Agent on the one hand, and one or more Lenders, or 
one or more 
of their 
Affiliates, on 
the other hand, 
or (iii) 
any claims for 
Taxes, which 
shall be 
governed by 
Section 16, 
other than 
Taxes which 
relate to 
primarily non-Tax 
claims), (b) 
with 
respect  to  any 
actual  or  prospective 
investigation,  litigation,  or 
proceeding  related  to 
this 
Agreement, any 
other Loan 
Document, the 
making of 
any Loans 
or issuance 
of any 
Letters of 
Credit hereunder, 
or the 
use of 
the proceeds 
of the 
Loans or 
the Letters 
of Credit 
provided 
hereunder (irrespective of 
whether any Indemnified 
Person is a 
party thereto), or 
any act, omission, 
event, or circumstance in any 
manner related thereto, and (c) in 
connection with or arising out 
of 
any presence or release 
of Hazardous Materials 
at, on, under, 
to or from 
any assets or properties 
owned, leased 
or operated 
by any 
Loan Party 
or any 
of its 
Subsidiaries or 
any Environmental 
Actions, Environmental Liabilities or 
Remedial Actions related in 
any way to any 
such assets or 
properties of 
any Loan 
Party or 
any of 
its Subsidiaries 
(each and 
all of 
the foregoing, 
the 
"Indemnified Liabilities"). 
The foregoing to the 
contrary notwithstanding, no Borrower 
shall have 
any obligation to any Indemnified Person under this Section 10.3 with respect to any Indemnified 
Liability that a court of 
competent jurisdiction finally determines 
to have resulted from 
the gross 
negligence or willful misconduct of such Indemnified Person or its officers, directors, employees, 
attorneys, or 
agents. 
This provision 
shall survive 
the termination 
of this 
Agreement and 
the 
repayment in full of the Obligations. 
If any Indemnified Person makes any payment to any 
other 
Indemnified Person with respect to an Indemnified Liability as to which Borrowers were required 
to indemnify the 
Indemnified Person receiving 
such payment, the 
Indemnified Person making 
such 
payment  is  entitled  to 
be  indemnified  and  reimbursed 
by  Borrowers  with 
respect  thereto. 

WITHOUT LIMITATION, 
THE FOREGOING INDEMNITY SHALL APPLY 
TO EACH 
INDEMNIFIED PERSON WITH 
RESPECT TO 
INDEMNIFIED LIABILITIES 
WHICH 
IN WHOLE 
OR IN 
PART 
ARE CAUSED 
BY OR 
ARISE OUT 
OF ANY 
NEGLIGENT 
ACT OR OMISSION 
OF SUCH INDEMNIFIED 
PERSON OR OF 
ANY OTHER PERSON.
 

 

 

11.
 
NOTICES. 
Unless otherwise provided 
in this Agreement, 
all notices or 
demands relating to 
this 
Agreement or any 
other Loan Document 
shall be in 
writing and (except 
for financial statements 
and other informational documents 
which may be 
sent by first-class 
mail, postage prepaid) 
shall 
be personally 
delivered or 
sent by 
registered or 
certified mail 
(postage prepaid, 
return receipt 
requested), overnight courier, electronic mail (at such email addresses as a party may designate in 
accordance herewith), or 
telefacsimile. 
In the case 
of notices or 
demands to any 
Loan Party or 
Agent, as the case may be, they shall be sent to the respective address set forth below: 
If to any Loan Party: 
c/o Administrative Borrower 
800 Manor Park Drive 
Columbus, OH 43228 
Attn: John P. 
Zimmer 
Fax No. (614) 870-5051 
with copies to: 
Squire Patton Boggs (US) LLP 
2000 Huntington Bank Center 
41 S. 
High Street 
Columbus, OH 
43215 
Attn: 
Donald W. 
Hughes, Esq. 
Fax No.: 
(614) 365-2499 
If to Agent: 
WELLS FARGO BANK, NATIONAL 
ASSOCIATION
10 S. Wacker Drive 26th Floor 
Chicago, IL 60606 
Attn: Loan Portfolio Manager 
Fax No.: 
(312) 332-0424 
with copies to: 
GOLDBERG KOHN LTD.
55 E. Monroe Street, Suite 3300 
Chicago, Illinois 60603 
Attn: 
Keith G. Radner, Esq. 
Fax No.: 
(312) 863-7445 
 
Any party 
hereto may 
change the 
address at 
which they 
are to 
receive notices 
hereunder, by notice 
in writing in 
the foregoing manner 
given to the 
other party. 
All notices or 
demands sent in 
accordance with this 
Section 11, 
shall be deemed 
received on the 
earlier of the 
date of actual 
receipt or three 
Business Days after 
the deposit thereof 
in the mail; 
provided, that 
(a) notices sent 
by overnight courier service 
shall be deemed 
to have been 
given when received, 
(b) notices by facsimile 
shall be deemed 
to have been 
given when sent 
(except that, if 
not given 
during normal business hours for the recipient, shall be deemed to have been given at the opening 
of business on the next Business Day for the 
recipient) and (c) notices by electronic mail shall 
be 
deemed received upon 
the sender's receipt 
of an acknowledgment 
from the intended 
recipient (such 
as  by  the 
"return  receipt 
requested"  function, 
as  available,  return 
email  or 
other  written 
acknowledgment). 

 

 

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

 

RELATING    TO 
ANY    LOAN    DOCUMENTS,    OR    FOR    RECOGNITION    OR 
ENFORCEMENT OF ANY JUDGMENT. 
EACH OF THE PARTIES 
HERETO AGREES 
THAT A 
FINAL JUDGMENT IN 
ANY SUCH 
ACTION OR PROCEEDING 
SHALL BE 
CONCLUSIVE AND MAY 
BE ENFORCED IN 
OTHER JURISDICTIONS BY 
SUIT ON 
THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
NOTHING IN 
THIS AGREEMENT 
OR ANY 
OTHER LOAN 
DOCUMENT SHALL 
AFFECT ANY 
RIGHT  THAT 
AGENT  MAY 
OTHERWISE  HAVE 
TO  BRING  ANY 
ACTION  OR 
PROCEEDING   RELATING 
TO   THIS   AGREEMENT 
OR   ANY   OTHER 
LOAN 
DOCUMENT AGAINST ANY 
LOAN PARTY 
OR ITS PROPERTIES 
IN THE COURTS 
OF ANY JURISDICTION. 
(e)
 
NO CLAIM 
MAY 
BE MADE 
BY ANY 
LOAN PARTY 
AGAINST 
THE AGENT, 
THE SWING 
LENDER, ANY 
OTHER LENDER, 
ISSUING BANK, 
OR 
ANY       AFFILIATE, 
DIRECTOR,       OFFICER, 
EMPLOYEE,       COUNSEL, 
REPRESENTATIVE, 
AGENT, OR ATTORNEY-IN-FACT 
OF ANY OF 
THEM FOR ANY 
SPECIAL, INDIRECT, 
CONSEQUENTIAL, PUNITIVE 
OR EXEMPLARY 
DAMAGES 
OR LOSSES IN 
RESPECT OF ANY 
CLAIM FOR BREACH 
OF CONTRACT OR 
ANY 
OTHER  THEORY 
OF  LIABILITY 
ARISING  OUT 
OF  OR 
RELATED  TO 
THE 
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY OTHER LOAN 
DOCUMENT, OR ANY ACT, 
OMISSION, OR EVENT OCCURRING IN CONNECTION 
THEREWITH,  AND 
EACH  LOAN 
PARTY 
HEREBY  WAIVES, 
RELEASES,  AND 
AGREES NOT 
TO SUE 
UPON ANY 
CLAIM FOR 
SUCH DAMAGES, 
WHETHER OR 
NOT ACCRUED AND 
WHETHER OR 
NOT KNOWN 
OR SUSPECTED 
TO EXIST 
IN 
ITS FAVOR. 
(f)
 
IN  THE  EVENT 
ANY  LEGAL  PROCEEDING 
IS  FILED  IN 
A 
COURT OF 
THE STATE 
OF CALIFORNIA (THE 
"COURT") BY 
OR AGAINST 
ANY 
PARTY 
HERETO IN 
CONNECTION WITH 
ANY CLAIM 
AND THE 
WAIVER 
SET 
FORTH IN 
CLAUSE (C) 
ABOVE IS 
NOT ENFORCEABLE 
IN SUCH 
PROCEEDING, 
THE PARTIES 
HERETO AGREE AS FOLLOWS: 
(i)
 
WITH THE 
EXCEPTION OF 
THE MATTERS 
SPECIFIED 
IN SUBCLAUSE (ii) BELOW, ANY CLAIM 
SHALL BE DETERMINED BY 
A GENERAL 
REFERENCE   PROCEEDING  IN 
ACCORDANCE  WITH 
THE  PROVISIONS 
OF 
CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 
638 THROUGH 645.1. 
THE 
PARTIES 
INTEND    THIS 
GENERAL    REFERENCE 
AGREEMENT    TO 
BE 
SPECIFICALLY 
ENFORCEABLE. 
VENUE FOR 
THE REFERENCE 
PROCEEDING 
SHALL BE IN THE COUNTY OF LOS ANGELES, CALIFORNIA. 
(ii)
 
THE FOLLOWING 
MATTERS 
SHALL NOT 
BE SUBJECT 
TO A 
GENERAL REFERENCE PROCEEDING: 
(A) NON-JUDICIAL 
FORECLOSURE 
OF   ANY   SECURITY   INTERESTS   IN   REAL   OR   PERSONAL   PROPERTY, 
(B) 
EXERCISE OF SELF-HELP REMEDIES (INCLUDING 
SET-OFF OR RECOUPMENT), 
(C) APPOINTMENT 
OF A 
RECEIVER, AND 
(D) TEMPORARY, 
PROVISIONAL, OR 
ANCILLARY  REMEDIES 
(INCLUDING  WRITS 
OF  ATTACHMENT, 
WRITS  OF 
POSSESSION,    TEMPORARY 
RESTRAINING    ORDERS, 
OR    PRELIMINARY 
INJUNCTIONS). 
THIS AGREEMENT DOES 
NOT LIMIT THE 
RIGHT OF ANY 
PARTY 

 

TO EXERCISE OR OPPOSE ANY 
OF THE RIGHTS AND REMEDIES DESCRIBED 
IN 
CLAUSES (A) - (D) AND ANY SUCH EXERCISE OR OPPOSITION 
DOES NOT WAIVE 
THE RIGHT 
OF ANY 
PARTY 
TO PARTICIPATE 
IN A 
REFERENCE PROCEEDING 
PURSUANT TO THIS AGREEMENT WITH RESPECT TO ANY OTHER MATTER. 
(iii)
 
UPON THE 
WRITTEN REQUEST 
OF ANY 
PARTY, 
THE 
PARTIES 
SHALL  SELECT  A  SINGLE 
REFEREE,  WHO  SHALL  BE 
A  RETIRED 
JUDGE OR JUSTICE. 
IF THE PARTIES DO NOT AGREE 
UPON A REFEREE WITHIN 
TEN DAYS 
OF SUCH WRITTEN REQUEST, 
THEN, ANY PARTY 
SHALL HAVE 
THE 
RIGHT  TO  REQUEST 
THE  COURT  TO 
APPOINT  A  REFEREE 
PURSUANT  TO 
CALIFORNIA  CODE  OF  CIVIL  PROCEDURE  SECTION  640(B). 
THE  REFEREE 
SHALL BE APPOINTED TO 
SIT WITH ALL OF THE POWERS 
PROVIDED BY LAW. 

PENDING APPOINTMENT 
OF THE 
REFEREE, THE 
COURT SHALL 
HAVE 
THE 
POWER TO ISSUE TEMPORARY OR PROVISIONAL REMEDIES. 
(iv)
 
EXCEPT    AS 
EXPRESSLY 
SET    FORTH 
IN    THIS 
AGREEMENT, THE 
REFEREE SHALL DETERMINE THE MANNER IN WHICH THE 
REFERENCE PROCEEDING IS 
CONDUCTED INCLUDING THE 
TIME AND PLACE 
OF HEARINGS, THE ORDER OF 
PRESENTATION 
OF EVIDENCE, AND ALL OTHER 
QUESTIONS THAT ARISE WITH RESPECT TO THE COURSE OF THE REFERENCE 
PROCEEDING. 
ALL PROCEEDINGS AND 
HEARINGS CONDUCTED BEFORE 
THE 
REFEREE, EXCEPT 
FOR TRIAL, 
SHALL BE 
CONDUCTED WITHOUT 
A COURT 
REPORTER, EXCEPT 
WHEN ANY 
PARTY 
SO REQUESTS 
A COURT 
REPORTER 
AND A 
TRANSCRIPT IS 
ORDERED, A 
COURT REPORTER 
SHALL BE 
USED AND 
THE REFEREE SHALL BE PROVIDED 
A COURTESY COPY 
OF THE TRANSCRIPT. 

THE  PARTY 
MAKING  SUCH  REQUEST 
SHALL  HAVE 
THE  OBLIGATION 
TO 
ARRANGE FOR 
AND PAY 
THE COSTS 
OF THE 
COURT REPORTER; 
PROVIDED, 
THAT SUCH 
COSTS, ALONG WITH 
THE REFEREE'S FEES, 
SHALL ULTIMATELY 
BE BORNE BY THE PARTY 
WHO DOES NOT PREVAIL, 
AS DETERMINED BY THE 
REFEREE. 
(v)
 
THE    REFEREE    MAY 
REQUIRE    ONE    OR 
MORE 
PREHEARING CONFERENCES. 
THE PARTIES 
HERETO SHALL BE ENTITLED TO 
DISCOVERY, 
AND    THE 
REFEREE    SHALL 
OVERSEE    DISCOVERY 
IN 
ACCORDANCE WITH 
THE RULES 
OF DISCOVERY, 
AND SHALL 
ENFORCE ALL 
DISCOVERY ORDERS 
IN THE SAME 
MANNER AS ANY 
TRIAL COURT 
JUDGE IN 
PROCEEDINGS AT LAW 
IN THE STATE 
OF CALIFORNIA. 
(vi)
 
THE REFEREE SHALL 
APPLY THE RULES OF 
EVIDENCE 
APPLICABLE TO 
PROCEEDINGS AT 
LAW 
IN THE 
STATE 
OF CALIFORNIA 
AND 
SHALL   DETERMINE 
ALL   ISSUES 
IN   ACCORDANCE 
WITH   CALIFORNIA 
SUBSTANTIVE 
AND PROCEDURAL LAW. 
THE REFEREE SHALL 
BE EMPOWERED 
TO ENTER EQUITABLE AS WELL AS 
LEGAL RELIEF AND 
RULE ON ANY 
MOTION 
WHICH  WOULD 
BE  AUTHORIZED  IN 
A  TRIAL,  INCLUDING 
MOTIONS  FOR 
DEFAULT 
JUDGMENT  OR 
SUMMARY  JUDGMENT. 
THE  REFEREE 
SHALL 
REPORT  HIS 
OR  HER 
DECISION,  WHICH 
REPORT  SHALL 
ALSO  INCLUDE 
FINDINGS OF FACT 
AND CONCLUSIONS OF 
LAW. 
THE REFEREE SHALL 
ISSUE 

 

 

 

 

 

A DECISION 
AND PURSUANT 
TO CALIFORNIA 
CODE OF 
CIVIL PROCEDURE, 
SECTION 644, 
THE REFEREE'S 
DECISION SHALL 
BE ENTERED 
BY THE 
COURT 
AS A JUDGMENT 
IN THE 
SAME MANNER AS 
IF THE ACTION 
HAD BEEN TRIED 
BY THE 
COURT. 
THE FINAL JUDGMENT 
OR ORDER FROM 
ANY APPEALABLE 
DECISION   OR 
ORDER   ENTERED 
BY   THE 
REFEREE   SHALL 
BE   FULLY 
APPEALABLE AS IF IT HAS BEEN ENTERED BY THE COURT. 
(vii)
 
THE  PARTIES 
RECOGNIZE  AND 
AGREE  THAT 
ALL 
CLAIMS  RESOLVED 
IN  A 
GENERAL  REFERENCE 
PROCEEDING  PURSUANT 
HERETO  WILL BE 
DECIDED  BY  A  REFEREE  AND  NOT  BY  A  JURY. 
AFTER 
CONSULTING 
(OR  HAVING 
HAD  THE 
OPPORTUNITY  TO 
CONSULT) 
WITH 
COUNSEL OF 
THEIR OWN 
CHOICE, EACH 
PARTY 
HERETO KNOWINGLY 
AND 
VOLUNTARILY 
AND  FOR 
THEIR  MUTUAL 
BENEFIT  AGREES 
THAT  THIS 
REFERENCE  PROVISION  SHALL 
APPLY  TO 
ANY  DISPUTE  BETWEEN 
THEM 
THAT ARISES 
OUT OF OR 
IS RELATED 
TO THIS 
AGREEMENT OR 
THE OTHER 
LOAN DOCUMENTS. 
13.
 
ASSIGNMENTS AND PARTICIPATIONS; 
SUCCESSORS. 
13.1.
 
Assignments and Participations
. 
(a)
 
(i)        Subject to the conditions 
set forth in 
clause (a)(ii) below, any 
Lender 
may assign 
and delegate 
all or 
any portion 
of its 
rights and 
duties under 
the Loan 
Documents 
(including the Obligations 
owed to it 
and its Commitments) 
to one or 
more assignees (each, 
an 
"Assignee"), with the 
prior written consent 
(such consent not 
be unreasonably withheld 
or delayed) 
of: 
(A)
 
Borrowers; provided, that no 
consent of Borrowers shall 
be 
required (1) if a 
Default or Event of 
Default has occurred and 
is continuing, or (2) 
in connection 
with an assignment 
to a Person 
that is a 
Lender or an 
Affiliate (other than 
natural persons) of 
a 
Lender; provided 
further, 
that Borrowers 
shall be 
deemed to 
have consented 
to a 
proposed 
assignment unless Administrative Borrower objects thereto by written notice to Agent within five 
Business Days after having received notice thereof; and 
(B)
 
Agent, Swing Lender, and Issuing Bank. 
(ii)
 
Assignments shall be subject to the 
following additional conditions: 
(A)
 
no assignment may be made to a natural person, 
(B)
 
no assignment may be made to a Loan Party, 
or an Affiliate 
of a Loan Party, 
(C)
 
the amount 
of the 
Commitments and 
the other 
rights and 
obligations of the 
assigning Lender hereunder 
and under the other 
Loan Documents subject 
to each 
such assignment (determined as 
of the date the 
Assignment and Acceptance with 
respect to such 
assignment is 
delivered to 
Agent) shall 
be in 
a minimum 
amount (unless 
waived by 
Agent) of 
$5,000,000 (except such 
minimum amount shall 
not apply to (I) 
an assignment or 
delegation by 

 

 

 

 

 

 

any Lender to any other Lender, 
an Affiliate of any Lender, 
or a Related Fund of such Lender, 
or 
(II) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of such 
new Lender to 
the extent that 
the aggregate amount 
to be assigned 
to all such 
new Lenders is 
at 
least $5,000,000), 
(D)
 
each partial assignment shall be made as an assignment of a 
proportionate part of all the assigning Lender's rights and obligations under this Agreement, 
(E)
 
the parties to 
each assignment 
shall execute 
and deliver 
to 
Agent an Assignment and Acceptance; provided, that 
Borrowers and Agent may continue to deal 
solely and 
directly with 
the assigning 
Lender in 
connection with 
the interest 
so assigned 
to an 
Assignee until written 
notice of such 
assignment, together with 
payment instructions, addresses, 
and related information with respect to the Assignee, have been given to Borrowers and Agent by 
such Lender and the Assignee, 
(F)
 
unless waived by 
Agent, the assigning 
Lender or Assignee 
has paid to Agent, for Agent's separate account, a processing fee in the amount of $3,500, and 
(G)
 
the assignee, if 
it is not 
a Lender, 
shall deliver to 
Agent an 
Administrative Questionnaire in a form approved by Agent (the "Administrative Questionnaire"). 
(b)
 
From and after 
the date that 
Agent receives the 
executed Assignment and 
Acceptance and, if applicable, payment 
of the required processing fee, 
(i) the Assignee thereunder 
shall be a party hereto and, to the extent 
that rights and obligations hereunder have been assigned 
to it pursuant 
to such Assignment 
and Acceptance, shall 
be a "Lender" 
and shall have 
the rights 
and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the 
extent that 
rights and 
obligations hereunder 
and under 
the other 
Loan Documents 
have been 
assigned by 
it pursuant 
to such 
Assignment and 
Acceptance, relinquish 
its rights 
(except with 
respect to Section 10.3) and be released from any future obligations under this Agreement (and in 
the case of an 
Assignment and Acceptance covering 
all or the remaining 
portion of an assigning 
Lender's rights and obligations under this 
Agreement and the other Loan Documents, such 
Lender 
shall cease to be a party hereto 
and thereto); provided, that nothing contained 
herein shall release 
any assigning Lender 
from obligations that 
survive the termination 
of this Agreement, 
including 
such assigning Lender's obligations under Section 15 and Section 17.9(a). 
(c)
 
By executing and delivering an Assignment and 
Acceptance, the assigning 
Lender thereunder and the Assignee 
thereunder confirm to and agree 
with each other and the 
other 
parties hereto as 
follows: 
(i) other than 
as provided in 
such Assignment and 
Acceptance, such 
assigning Lender makes no representation or warranty and assumes no responsibility with respect 
to any statements, warranties or 
representations made in or in 
connection with this Agreement or 
the  execution, 
legality,  validity, 
enforceability,  genuineness, 
sufficiency  or 
value  of 
this 
Agreement or 
any other 
Loan Document 
furnished pursuant 
hereto, (ii) 
such assigning 
Lender 
makes no representation 
or warranty and 
assumes no responsibility 
with respect to 
the financial 
condition of any 
Loan Party or 
the performance 
or observance by 
any Loan Party 
of any of 
its 
obligations under this 
Agreement or any 
other Loan Document 
furnished pursuant hereto, 
(iii) such 
Assignee confirms 
that it 
has received 
a copy 
of this 
Agreement, together 
with such 
other 
documents and 
information as 
it has 
deemed appropriate 
to make 
its own 
credit analysis 
and 

 

 

 

 

 

decision to enter 
into such Assignment 
and Acceptance, (iv) 
such Assignee will, 
independently 
and without reliance upon 
Agent, such assigning Lender 
or any other Lender, 
and based on such 
documents and information 
as it shall 
deem appropriate at 
the time, continue 
to make its 
own credit 
decisions in 
taking or 
not taking 
action under 
this Agreement, 
(v) such 
Assignee appoints 
and 
authorizes Agent to take 
such actions and to 
exercise such powers under 
this Agreement and the 
other Loan Documents 
as are delegated 
to Agent, by 
the terms hereof 
and thereof, together 
with 
such powers as 
are reasonably incidental thereto, 
and (vi) such Assignee 
agrees that it will 
perform 
all of the obligations which by the terms of this Agreement are required 
to be performed by it as a 
Lender. 
(d)
 
Immediately  upon 
Agent's  receipt 
of  the 
required  processing 
fee,  if 
applicable, and 
delivery of 
notice to 
the assigning 
Lender pursuant 
to Section 
13.1(b), this 
Agreement shall be deemed 
to be amended to 
the extent, but only 
to the extent, necessary 
to reflect 
the addition of the 
Assignee and the resulting adjustment 
of the Commitments arising therefrom. 

The Commitment 
allocated to 
each Assignee 
shall reduce 
such Commitments 
of the 
assigning 
Lender 
pro tanto
. 
(e)
 
Any Lender may 
at any time 
sell to one 
or more commercial 
banks, financial 
institutions, or 
other Persons 
(a "Participant") 
participating interests 
in all 
or any 
portion of 
its 
Obligations, its Commitment, 
and the other 
rights and interests 
of that Lender 
(the "Originating 
Lender") hereunder and 
under the other 
Loan Documents; provided, 
that (i) the 
Originating Lender 
shall remain a "Lender" for all purposes of 
this Agreement and the other Loan Documents and 
the 
Participant receiving the participating interest in the Obligations, the Commitments, and the other 
rights and interests of the Originating Lender hereunder shall not constitute a "Lender" hereunder 
or under the 
other Loan Documents and 
the Originating Lender's obligations 
under this Agreement 
shall remain 
unchanged, (ii) 
the Originating 
Lender shall 
remain solely 
responsible for 
the 
performance of such 
obligations, (iii) 
Borrowers, Agent, and 
the Lenders shall 
continue to deal 
solely and directly with the Originating Lender in connection with the Originating Lender's rights 
and obligations under this Agreement 
and the other Loan 
Documents, (iv) no Lender shall 
transfer 
or grant 
any participating 
interest under 
which the 
Participant has 
the right 
to approve 
any 
amendment to, 
or any 
consent or 
waiver with 
respect to, 
this Agreement 
or any 
other Loan 
Document, except 
to the 
extent such 
amendment to, 
or consent 
or waiver 
with respect 
to this 
Agreement or 
of any 
other Loan 
Document would 
(A) extend 
the final 
maturity date 
of the 
Obligations hereunder 
in which 
such Participant 
is participating, 
(B) reduce 
the interest 
rate 
applicable to the Obligations 
hereunder in which such 
Participant is participating, (C) 
release all 
or substantially all of 
the Collateral or guaranties 
(except to the extent 
expressly provided herein 
or in any of the Loan Documents) supporting the Obligations hereunder 
in which such Participant 
is participating, (D) postpone the payment 
of, or reduce the amount of, the interest 
or fees payable 
to such Participant through 
such Lender (other than 
a waiver of default 
interest), or (E) decrease 
the amount 
or postpone 
the due 
dates of 
scheduled principal 
repayments or 
prepayments or 
premiums payable to such Participant through such 
Lender, (v) no participation shall 
be sold to a 
natural person, (vi) no participation shall 
be sold to a Loan Party, 
or an Affiliate of a 
Loan Party, 
and (vii) all amounts 
payable by Borrowers hereunder 
shall be determined as 
if such Lender had 
not sold such participation, except that, if amounts outstanding under this 
Agreement are due and 
unpaid, or shall have been declared or shall have become due and payable upon the occurrence of 
an Event of Default, each 
Participant shall be deemed to 
have the right of set 
off in respect of 
its 
participating interest in amounts owing under this 
Agreement to the same extent as 
if the amount 

 

 

 

 

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

 

 

 

 

 

 

 

 

a register on which it 
enters the name of 
all participants in the Registered 
Loans held by it 
(and the 
principal amount 
(and stated 
interest thereon) 
of the 
portion of 
such Registered 
Loans that 
is 
subject to such participations) 
(the "Participant Register"). 
A Registered Loan (and 
the Registered 
Note, if any, 
evidencing the same) may be participated 
in whole or in part only 
by registration of 
such participation on 
the Participant Register (and 
each registered note 
shall expressly so provide). 

Any participation of such 
Registered Loan (and the 
registered note, if any, 
evidencing the same) 
may be 
effected only 
by the 
registration of 
such participation 
on the 
Participant Register. 
No 
Lender shall have 
any obligation to 
disclose all or 
any portion of 
the Participant Register 
(including 
the identity 
of any 
Participant or 
any information 
relating to 
a Participant's 
interest in 
any 
commitments, loans, 
letters of credit 
or its other 
obligations under any 
Loan Document) to 
any 
Person except to 
the extent that 
such disclosure is 
necessary to establish 
that such commitment, 
loan, letter of 
credit or other 
obligation is in 
registered form under 
Section 5f.103-1(c) of 
the United 
States Treasury 
Regulations. 
The entries 
in the 
Participant Register 
shall be 
conclusive absent 
manifest error, and such Lender shall treat 
each person whose name is recorded in the Participant 
Register as the owner 
of such participation for 
all purposes of this Agreement 
notwithstanding any 
notice to the contrary. 
For the avoidance of doubt, the Agent (in its capacity as Agent) shall have 
no responsibility for maintaining a Participant Register. 
(j)
 
Agent shall make 
a copy of 
the Register (and 
each Lender shall 
make a copy 
of its Participant Register to the extent it has one) available for review by Borrowers from time to 
time as Borrowers may reasonably request. 
13.2.
 
Successors
. 
This  Agreement  shall  bind 
and  inure  to  the 
benefit  of  the 
respective successors and 
assigns of each 
of the parties; 
provided, that no 
Borrower may assign 
this Agreement or 
any rights or 
duties hereunder without 
the Lenders' prior 
written consent and 
any prohibited 
assignment shall 
be absolutely void 
ab
 
initio
. 
No consent to 
assignment by the 
Lenders shall release 
any Borrower from 
its Obligations. 
A Lender may 
assign this Agreement 
and the 
other Loan 
Documents and 
its rights 
and duties 
hereunder and 
thereunder pursuant 
to 
Section 13.1 and, except as 
expressly required pursuant to Section 
13.1, no consent or 
approval by 
any Borrower is required in connection with any such assignment. 
14.
 
AMENDMENTS; WAIVERS. 
14.1.
 
Amendments and Waivers
. 
(a)
 
No amendment, 
waiver or 
other modification 
of any 
provision of 
this 
Agreement or any other Loan 
Document (other than the 
Fee Letter), and no consent 
with respect 
to any departure by 
any Borrower therefrom, shall be effective unless 
the same shall be in writing 
and signed by the Required Lenders (or 
by Agent at the written request 
of the Required Lenders) 
and the Loan Parties that are party thereto and then any such waiver 
or consent shall be effective, 
but only in 
the specific instance 
and for the 
specific purpose for 
which given; provided, 
that no 
such waiver, 
amendment, or 
consent shall, 
unless in 
writing and 
signed by 
all of 
the Lenders 
directly affected thereby and all of the Loan 
Parties that are party thereto, do any 
of the following: 
(i)
 
increase  the 
amount  of 
or  extend 
the  expiration 
date  of 
any 
Commitment of any Lender or amend, modify, or eliminate the last sentence of Section 2.4(c)(i), 

 

 

 

 

 

 

 

 

 

 

 

 

(ii)
 
postpone or 
delay any 
date fixed 
by this 
Agreement or 
any other 
Loan Document for 
any payment of 
principal, interest, fees, 
or other amounts 
due hereunder or 
under any other Loan Document, 
(iii)
 
reduce the principal of, 
or the rate 
of interest on, 
any loan or other 
extension of credit hereunder, or reduce 
any fees or other amounts 
payable hereunder or under 
any 
other Loan Document (except (y) in connection 
with the waiver of applicability of Section 
2.6(c) 
(which waiver shall be effective with the written consent of the Required Lenders), 
(iv)
 
amend, modify, 
or eliminate 
this Section 
or any 
provision of 
this 
Agreement providing for consent or other action by all Lenders, 
(v)
 
amend, modify, or eliminate Section 3.1 or 3.2, 
(vi)
 
amend, modify, or eliminate Section 15.11 
, 
(vii)
 
other than 
as permitted 
by Section 
15.11, release 
or contractually 
subordinate Agent's Lien in and to any of the Collateral, 
(viii)
 
amend, modify, or 
eliminate the definitions of "Required Lenders", 
Supermajority Lenders or "Pro Rata Share", 
(ix)
 
other than in connection 
with a merger, 
amalgamation, liquidation, 
dissolution or 
sale of 
such Person 
expressly permitted 
by the 
terms hereof 
or the 
other Loan 
Documents, release any 
Borrower or any Guarantor 
from any obligation for 
the payment of money 
or consent to the assignment 
or transfer by any Borrower 
or any Guarantor of 
any of its rights or 
duties under this Agreement or the other Loan Documents, 
(x)
 
amend,  modify, 
or  eliminate  any 
of  the  provisions 
of  Section 
2.4(b)(i), 
(ii) or (iii) or Section 2.4(e) or (f), 
(xi)
 
at any time that any Real Property 
is included in the Collateral, add, 
increase,  renew  or  extend 
any  Loan,  Letter  of 
Credit  or  Commitment  hereunder 
until  the 
completion of flood due diligence, documentation and coverage as required by the Flood Laws or 
as otherwise satisfactory to all Lenders, or 
(xii)
 
amend, modify, 
or eliminate any 
of the provisions 
of Section 13.1 
with respect to assignments to, or participations with, 
Persons who are Loan Parties, or Affiliates 
of a Loan Party; 
(b)
 
No amendment, 
waiver, modification, 
or consent 
shall amend, 
modify, 
waive, or eliminate, 
(i)
 
the definition of, or 
any of the terms 
or provisions of, the 
Fee Letter, 
without the written consent 
of Agent and Borrowers (and 
shall not require the 
written consent of 
any of the Lenders), 

 

 

 

 

 

 

 

 

 

 

(ii)
 
any provision of Section 15 pertaining to Agent, or any other rights 
or duties of Agent 
under this Agreement or 
the other Loan Documents, 
without the written consent 
of Agent, Borrowers, and the Required Lenders; 
(c)
 
No amendment, waiver, modification, elimination, or consent shall amend, 
without written consent of Agent, 
Borrowers and the Supermajority Lenders, modify, or eliminate 
the definition of Borrowing Base or any of the defined terms 
(including the definitions of Eligible 
Accounts, Eligible Finished Goods 
Inventory, Eligible Raw Material Inventory, Eligible Work-in-
Process  Inventory, 
Eligible  Inventory, 
Eligible  Investment  Grade 
Accounts,  Eli 
gible  Non- 
Investment Grade 
Accounts, Eligible 
M&E and 
Eligible Real 
Property) that 
are used 
in such 
definition to 
the extent 
that any 
such change 
results in 
more credit 
being made 
available to 
Borrowers based 
upon the 
Borrowing Base, 
but not 
otherwise, or 
the definition 
of Maximum 
Revolver Amount, or change Section 2.1(c); 
(d)
 
No amendment, waiver, modification, elimination, or consent shall amend, 
modify, or 
waive any 
provision of 
this Agreement 
or the 
other Loan 
Documents pertaining 
to 
Issuing Bank, or any 
other rights or duties 
of Issuing Bank under 
this Agreement or the other 
Loan 
Documents, without 
the written 
consent of 
Issuing Bank, 
Agent, Borrowers, 
and the 
Required 
Lenders; 
(e)
 
No amendment, waiver, modification, elimination, or consent shall amend, 
modify, or 
waive any 
provision of 
this Agreement 
or the 
other Loan 
Documents pertaining 
to 
Swing Lender, 
or any other 
rights or duties 
of Swing Lender 
under this Agreement 
or the other 
Loan Documents, 
without the 
written consent 
of Swing 
Lender, Agent, 
Borrowers, and 
the 
Required Lenders; and 
(f)
 
Anything in 
this Section 
14.1 to 
the contrary 
notwithstanding, (i) 
any 
amendment, modification, elimination, waiver, consent, termination, or release of, or with respect 
to,  any  provision  of  this  Agreement  or  any  other  Loan  Document  that  relates  only  to  the 
relationship of 
the Lender 
Group among 
themselves, and 
that does 
not affect 
the rights 
or 
obligations of any 
Loan Party, 
shall not require 
consent by or 
the agreement of 
any Loan Party, 
(ii) any amendment, 
waiver, modification, 
elimination, or 
consent of 
or with 
respect to 
any 
provision of this Agreement or any 
other Loan Document may be entered 
into without the consent 
of, or 
over the 
objection of, 
any Defaulting 
Lender other 
than any 
of the 
matters governed 
by 
Section 14.1(a)(i) through (iii) that affect 
such Lender, and (iii) 
any amendment contemplated by 
Section 2.12(d)(iii) 
of this 
Agreement in 
connection with 
a Benchmark 
Transition Event 
or an 
Early Opt-in Election shall be effective as contemplated by such Section 2.12(d)(iii) hereof. 
14.2.
 
Replacement of Certain Lenders
. 
(a)
 
If (i) 
any action 
to be 
taken by 
the Lender 
Group or 
Agent hereunder 
requires the consent, 
authorization, or agreement of 
all Lenders or all 
Lenders affected thereby and 
if such action has 
received the consent, 
authorization, or agreement 
of the Required 
Lenders but 
not  of  all  Lenders  or 
all  Lenders  affected  thereby, 
or  (ii)  any  Lender  makes 
a  claim  for 
compensation under Section 16, then Borrowers 
or Agent, upon at least 
five Business Days prior 
irrevocable  notice, 
may  permanently 
replace  any 
Lender  that 
failed  to 
give  its 
consent, 
authorization, or 
agreement (a "Non-Consenting 
Lender") or 
any Lender 
that made 
a claim 
for 

 

 

 

 

compensation (a "Tax Lender") with 
one or more Replacement Lenders, and the Non-Consenting 
Lender or Tax Lender, 
as applicable, shall have no right to refuse to be replaced hereunder. 
Such 
notice to 
replace the 
Non-Consenting Lender 
or Tax 
Lender, as 
applicable, shall 
specify an 
effective date for such replacement, 
which date shall not be 
later than 15 Business Days after 
the 
date such notice is given. 
(b)
 
Prior to the effective date of such replacement, the 
Non-Consenting Lender 
or  Tax 
Lender,  as  applicable, 
and  each  Replacement  Lender 
shall  execute  and  deliver 
an 
Assignment and 
Acceptance, subject 
only to 
the Non-Consenting 
Lender or 
Tax Lender, 
as 
applicable, being repaid in 
full its share of 
the outstanding Obligations (without 
any premium or 
penalty of any kind whatsoever, 
but including (i) all interest, 
fees and other amounts that 
may be 
due in payable in respect 
thereof, (ii) an assumption of 
its Pro Rata Share of 
participations in the 
Letters of 
Credit, and 
(iii) Funding 
Losses). 
If the 
Non-Consenting Lender 
or Tax 
Lender, as 
applicable, shall refuse or 
fail to execute and 
deliver any such Assignment 
and Acceptance prior 
to the 
effective date 
of such 
replacement, Agent may, 
but shall 
not be 
required to, execute 
and 
deliver such 
Assignment and 
Acceptance in 
the name 
or and 
on behalf 
of the 
Non-Consenting 
Lender or Tax Lender, as applicable, and 
irrespective of whether Agent 
executes and delivers such 
Assignment and Acceptance, 
the Non-Consenting Lender 
or Tax 
Lender, as 
applicable, shall be 
deemed to have 
executed and delivered 
such Assignment and 
Acceptance. 
The replacement of 
any Non-Consenting Lender 
or Tax 
Lender, as applicable, 
shall be made 
in accordance with 
the 
terms of Section 13.1. 
Until such time as 
one or more Replacement Lenders 
shall have acquired 
all of 
the Obligations, 
the Commitments, 
and the 
other  rights  and obligations 
of the 
Non-
Consenting Lender or Tax Lender, as applicable, hereunder and under the other Loan Documents, 
the Non-Consenting Lender or 
Tax Lender, as applicable, shall remain obligated to 
make the Non-
Consenting Lender's or 
Tax Lender's, 
as applicable, 
Pro Rata Share 
of Revolving Loans 
and to 
purchase a 
participation in 
each Letter 
of Credit, 
in an 
amount equal 
to its 
Pro Rata 
Share of 
participations in such Letters of Credit. 
14.3.
 
No Waivers; 
Cumulative Remedies
. 
No failure by 
Agent or any 
Lender to 
exercise any right, remedy, or option under this Agreement or any other 
Loan Document, or delay 
by Agent or 
any Lender in 
exercising the same, 
will operate as 
a waiver thereof. 
No waiver by 
Agent or any Lender 
will be effective unless 
it is in writing, 
and then only to 
the extent specifically 
stated. 
No waiver by Agent 
or any Lender on 
any occasion shall 
affect or diminish 
Agent's and 
each Lender's rights thereafter to require strict performance by Borrowers of any provision of this 
Agreement. 
Agent's and each 
Lender's rights under 
this Agreement and 
the other Loan 
Documents 
will be cumulative and 
not exclusive of any other 
right or remedy that Agent 
or any Lender may 
have. 
15.
 
AGENT; THE LENDER GROUP. 
15.1.
 
Appointment and Authorization 
of Agent
. 
Each Lender hereby 
designates 
and appoints Wells 
Fargo as its 
agent under this 
Agreement and the 
other Loan Documents 
and 
each Lender hereby irrevocably authorizes (and by entering into a Bank Product Agreement, 
each 
Bank Product Provider shall 
be deemed to designate, appoint, 
and authorize) Agent to execute 
and 
deliver each of the other Loan Documents on its behalf and to take such other action on its behalf 
under the provisions 
of this Agreement 
and each other 
Loan Document and 
to exercise such 
powers 
and perform such duties 
as are expressly delegated to 
Agent by the terms 
of this Agreement or any 

 

 

 

other Loan 
Document, together 
with such 
powers as 
are reasonably 
incidental thereto. 
Agent 
agrees to act 
as agent for 
and on behalf 
of the Lenders 
(and the Bank 
Product Providers) on 
the 
conditions contained in this Section 15. 
Any provision to the contrary contained 
elsewhere in this 
Agreement or in 
any other Loan 
Document notwithstanding, Agent 
shall not have 
any duties or 
responsibilities, except those expressly set forth herein or in 
the other Loan Documents, nor shall 
Agent have or 
be deemed 
to have any 
fiduciary relationship 
with any Lender 
(or Bank Product 
Provider), and no 
implied covenants, 
functions, responsibilities, 
duties, obligations or 
liabilities 
shall be read into 
this Agreement or any 
other Loan Document or 
otherwise exist against Agent. 

Without limiting the generality of 
the foregoing, the use of the term "agent" 
in this Agreement or 
the other 
Loan Documents 
with reference to 
Agent is 
not intended 
to connote 
any fiduciary or 
other implied 
(or express) 
obligations arising 
under agency 
doctrine of 
any applicable 
law. 

Instead, such term is used merely as 
a matter of market custom, and is intended 
to create or reflect 
only a representative relationship 
between independent contracting parties. 
Each Lender hereby 
further authorizes (and by entering 
into a Bank Product 
Agreement, each Bank Product 
Provider 
shall be deemed to authorize) Agent 
to act as the secured party 
under each of the Loan Documents 
that create 
a Lien 
on any 
item of 
Collateral. 
Except as 
expressly otherwise 
provided in 
this 
Agreement, Agent shall 
have and may 
use its sole 
discretion with respect 
to exercising or 
refraining 
from exercising any discretionary rights 
or taking or refraining from taking 
any actions that Agent 
expressly is 
entitled to 
take or 
assert under 
or pursuant 
to this 
Agreement and 
the other 
Loan 
Documents. 
Without limiting the generality 
of the foregoing, or 
of any other 
provision of the 
Loan 
Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right 
to exercise 
the following 
powers as 
long as 
this Agreement 
remains in 
effect: 
(a) maintain, 
in 
accordance with its customary 
business practices, ledgers 
and records reflecting the 
status of the 
Obligations, the Collateral, payments and proceeds 
of Collateral, and related matters, (b) 
execute 
or file any and all financing or 
similar statements or notices, amendments, renewals, supplements, 
documents, instruments, proofs of claim, notices and other written agreements with respect to the 
Loan Documents, or 
to take any 
other action with 
respect to any 
Collateral or Loan 
Documents 
which may be necessary to 
perfect, and maintain perfected, the 
security interests and Liens 
upon 
Collateral pursuant to the 
Loan Documents, (c) make 
Revolving Loans, for itself 
or on behalf of 
Lenders, as 
provided in 
the Loan 
Documents, (d) 
exclusively receive, 
apply, and 
distribute 
payments and proceeds 
of the Collateral 
as provided in 
the Loan Documents, 
(e) open and 
maintain 
such bank accounts 
and cash management 
arrangements as Agent 
deems necessary and 
appropriate 
in accordance 
with the 
Loan Documents 
for the 
foregoing purposes, 
(f) perform, 
exercise, and 
enforce any and all other rights and remedies of the Lender Group with respect to any Loan Party 
or its Subsidiaries, the Obligations, the Collateral, or otherwise 
related to any of same as provided 
in the Loan Documents, and 
(g) incur and pay such 
Lender Group Expenses as Agent 
may deem 
necessary or appropriate for the performance and fulfillment of its functions and powers pursuant 
to the Loan Documents. 
15.2.
 
Delegation  of  Duties
. 
Agent  may  execute 
any  of  its 
duties  under  this 
Agreement or any other Loan Document by or through agents, employees or attorneys in fact and 
shall be entitled to advice of counsel concerning all matters pertaining 
to such duties. 
Agent shall 
not be responsible for the negligence or 
misconduct of any agent or attorney in fact 
that it selects 
as long as such selection was made without gross negligence or willful misconduct. 
15.3.
 
Liability of Agent
. 
None of the Agent-Related 
Persons shall (a) be 
liable for 
any action taken or 
omitted to be taken 
by any of them 
under or in connection 
with this Agreement 

 

 

 

or any other 
Loan Document or 
the transactions contemplated 
hereby (except 
for its own 
gross 
negligence or willful misconduct), 
or (b) be responsible 
in any manner to 
any of the Lenders 
(or 
Bank Product Providers) for any recital, statement, 
representation or warranty made by any Loan 
Party or any 
of its Subsidiaries 
or Affiliates, 
or any officer 
or director thereof, 
contained in this 
Agreement or 
in any 
other Loan 
Document, or 
in any 
certificate, report, 
statement or 
other 
document referred to 
or provided for 
in, or received 
by Agent under 
or in connection 
with, this 
Agreement or any 
other Loan Document, 
or the validity, effectiveness, genuineness, 
enforceability 
or sufficiency of this Agreement 
or any other Loan 
Document, or for any 
failure of any Loan 
Party 
or its Subsidiaries or any 
other party to any Loan 
Document to perform its obligations 
hereunder 
or thereunder. 
No Agent-Related Person 
shall be under 
any obligation to 
any Lenders (or 
Bank 
Product Providers) to 
ascertain or to 
inquire as 
to the 
observance or performance 
of any of 
the 
agreements contained 
in, or 
conditions of, 
this Agreement 
or any 
other Loan 
Document, or 
to 
inspect the 
books and 
records or 
properties of 
any Loan 
Party or 
its Subsidiaries. 
No Agent-
Related Person shall 
have any liability 
to any Lender, 
and Loan Party 
or any of 
their respective 
Affiliates if any request for 
a Loan, Letter of 
Credit or other extension of 
credit was not authorized 
by the applicable Borrower. 
Agent shall not be 
required to take any action 
that, in its opinion 
or 
in the opinion of 
its counsel, may expose 
it to liability or 
that is contrary to 
any Loan Document 
or applicable law or regulation. 
15.4.
 
Reliance by Agent
. 
Agent shall be entitled to rely, and shall be fully 
protected 
in relying, 
upon any 
writing, resolution, 
notice, consent, 
certificate, affidavit, 
letter, telegram, 
telefacsimile or other electronic method of transmission, telex or telephone message, statement or 
other document or conversation believed by it to be genuine and 
correct and to have been signed, 
sent, or made 
by the proper 
Person or Persons, 
and upon advice 
and statements of 
legal counsel 
(including counsel 
to Borrowers 
or counsel 
to any 
Lender), independent 
accountants and 
other 
experts selected by Agent. 
Agent shall be fully 
justified in failing 
or refusing to take 
any action 
under this Agreement or any other Loan Document unless Agent shall first receive such advice or 
concurrence of the Lenders as it 
deems appropriate and until such instructions are 
received, Agent 
shall act, 
or refrain 
from acting, 
as it 
deems advisable. 
If Agent 
so requests, 
it shall 
first be 
indemnified to 
its reasonable 
satisfaction by 
the Lenders 
(and, if it 
so elects, 
the Bank 
Product 
Providers) against any and all liability and expense that may be incurred by it by reason of taking 
or continuing to 
take any such 
action. 
Agent shall in 
all cases be fully 
protected in acting, 
or in 
refraining from acting, 
under this Agreement 
or any other 
Loan Document in 
accordance with a 
request or consent of the Required Lenders and such request and any action taken or failure to act 
pursuant thereto shall be binding upon all of the Lenders (and Bank Product Providers). 
15.5.
 
Notice of 
Default or 
Event of 
Default
. 
Agent shall 
not be 
deemed to have 
knowledge or notice of the 
occurrence of any Default or 
Event of Default, except 
with respect to 
defaults in the payment of 
principal, interest, fees, and 
expenses required to be 
paid to Agent for 
the account of the 
Lenders and, except with 
respect to Events of 
Default of which Agent 
has actual 
knowledge, unless Agent shall have received written notice from a Lender or Borrowers referring 
to this Agreement, 
describing such Default 
or Event of 
Default, and stating 
that such notice 
is a 
"notice of default." 
Agent promptly will notify the Lenders of its receipt of any 
such notice or of 
any Event 
of Default 
of which 
Agent has 
actual knowledge. 
If any 
Lender obtains 
actual 
knowledge of any 
Event of Default, 
such Lender promptly 
shall notify the 
other Lenders and 
Agent 
of such Event 
of Default. 
Each Lender shall 
be solely responsible 
for giving any 
notices to 
its 
Participants, if 
any. 
Subject to 
Section 15.4, 
Agent shall 
take such action 
with respect to 
such 

 

 

 

 

Default or 
Event of 
Default as 
may be 
requested by 
the Required 
Lenders in 
accordance with 
Section 9; provided, 
that unless and 
until Agent has 
received any such 
request, Agent may 
(but 
shall not be obligated to) take such action, or refrain from taking such action, with respect to such 
Default or Event of Default as it shall deem advisable. 
15.6.
 
Credit Decision
. 
Each Lender (and 
Bank Product Provider) acknowledges 
that 
none of the Agent-Related Persons 
has made any representation or 
warranty to it, and that 
no act 
by  Agent  hereinafter  taken,  including  any  review  of  the  affairs  of  any  Loan  Party  and  its 
Subsidiaries or 
Affiliates, shall 
be deemed 
to constitute 
any representation 
or warranty 
by any 
Agent-Related Person to any Lender (or Bank 
Product Provider). 
Each Lender represents (and by 
entering  into  a  Bank  Product  Agreement,  each  Bank  Product  Provider  shall  be  deemed  to 
represent) to Agent that 
it has, independently and 
without reliance upon any 
Agent-Related Person 
and based on such due diligence, 
documents and information as it 
has deemed appropriate, made 
its own appraisal of and 
investigation into the business, prospects, 
operations, property, financial 
and other condition 
and creditworthiness of 
each Borrower or 
any other Person 
party to a 
Loan 
Document, and 
all applicable 
bank regulatory 
laws relating 
to the 
transactions contemplated 
hereby, and made its own decision to enter into this Agreement and 
to extend credit to Borrowers. 

Each Lender also represents (and by entering into a Bank Product Agreement, each Bank Product 
Provider shall be 
deemed to represent) 
that it will, 
independently and without 
reliance upon any 
Agent-Related Person and based on such documents and information 
as it shall deem appropriate 
at the 
time, continue 
to make 
its own 
credit analysis, 
appraisals and 
decisions in 
taking or 
not 
taking  action 
under  this 
Agreement  and 
the  other 
Loan  Documents, 
and  to 
make  such 
investigations as 
it deems 
necessary to 
inform itself 
as to 
the business, 
prospects, operations, 
property, financial and other condition and creditworthiness of each 
Borrower or any other Person 
party to 
a Loan 
Document. 
Except for 
notices, reports, 
and other 
documents expressly 
herein 
required to be furnished to the Lenders 
by Agent, Agent shall not have 
any duty or responsibility 
to provide any Lender (or 
Bank Product Provider) with any 
credit or other information concerning 
the business, prospects, operations, property, 
financial and other condition 
or creditworthiness of 
any Borrower or any other 
Person party to a Loan 
Document that may come into the 
possession of 
any of 
the Agent-Related 
Persons. 
Each Lender 
acknowledges (and 
by entering 
into a 
Bank 
Product Agreement, each 
Bank Product Provider 
shall be deemed 
to acknowledge) that 
Agent does 
not have any duty or 
responsibility, either 
initially or on a 
continuing basis (except to 
the extent, 
if any, that is 
expressly specified herein) to provide such Lender (or Bank Product Provider) 
with 
any credit or 
other information with 
respect to any 
Borrower, its Affiliates or 
any of their 
respective 
business, legal, financial or other 
affairs, and irrespective of 
whether such information came into 
Agent's or 
its Affiliates' 
or representatives' 
possession before 
or after 
the date 
on which 
such 
Lender became 
a party 
to this 
Agreement (or such 
Bank Product 
Provider entered 
into a 
Bank 
Product Agreement). 
15.7.
 
Costs and 
Expenses; Indemnification
. 
Agent may 
incur and 
pay Lender 
Group  Expenses 
to  the 
extent  Agent 
reasonably  deems 
necessary  or 
appropriate  for 
the 
performance  and  fulfillment  of  its  functions,  powers,  and  obligations  pursuant  to  the  Loan 
Documents, including 
court costs, 
attorneys' fees 
and expenses, 
fees and 
expenses of 
financial 
accountants,  advisors,  consultants,  and 
appraisers,  costs  of  collection 
by  outside  collection 
agencies, auctioneer fees and 
expenses, and costs of 
security guards or insurance 
premiums paid 
to maintain the Collateral, whether or not Borrowers are obligated to reimburse Agent or Lenders 
for such expenses 
pursuant to this 
Agreement or otherwise. 
Agent is authorized 
and directed to 

 

 

 

deduct and 
retain sufficient 
amounts from 
payments or 
proceeds of 
the Collateral 
received by 
Agent to reimburse 
Agent for such 
out-of-pocket costs and 
expenses prior to 
the distribution of 
any amounts to 
Lenders (or Bank 
Product Providers). 
In the event 
Agent is 
not reimbursed for 
such costs and expenses 
by the Loan Parties 
and their Subsidiaries, each 
Lender hereby agrees that 
it is and shall be obligated 
to pay to Agent such Lender's 
ratable share thereof. 
Whether or not the 
transactions contemplated hereby are consummated, each of the 
Lenders, on a ratable basis, shall 
indemnify and defend the Agent-Related Persons (to the extent not reimbursed by or on behalf of 
Borrowers and without limiting the obligation 
of Borrowers to do so) 
from and against any and 
all 
Indemnified Liabilities; 
provided, that 
no Lender 
shall be 
liable for the 
payment to 
any Agent-
Related Person of any portion of 
such Indemnified Liabilities resulting solely from 
such Person's 
gross negligence or 
willful misconduct nor 
shall any Lender 
be liable for 
the obligations of 
any 
Defaulting Lender 
in failing 
to make 
a Revolving 
Loan or other 
extension of 
credit hereunder. 

Without limitation 
of the 
foregoing, each 
Lender shall 
reimburse Agent 
upon demand 
for such 
Lender's ratable share 
of any costs 
or out of 
pocket expenses 
(including attorneys, accountants, 
advisors, and consultants 
fees and expenses) 
incurred by Agent in 
connection with the preparation, 
execution, delivery, 
administration, modification, amendment, 
or enforcement (whether 
through 
negotiations,  legal 
proceedings  or 
otherwise)  of, 
or  legal 
advice  in 
respect  of 
rights  or 
responsibilities under, this Agreement or any other Loan Document to the extent that Agent is not 
reimbursed for such expenses by or on behalf 
of Borrowers. 
The undertaking in this Section shall 
survive the payment of all Obligations hereunder and the resignation or replacement of Agent. 
15.8.
 
Agent in Individual Capacity
. 
Wells 
Fargo and its Affiliates may make loans 
to, issue letters 
of credit for 
the account of, 
accept deposits from, 
provide Bank Products 
to, acquire 
Equity  Interests in, 
and generally 
engage in 
any kind 
of banking, 
trust, financial 
advisory, 
underwriting, or other 
business with any 
Loan Party and 
its Subsidiaries and 
Affiliates and 
any 
other Person party to any Loan Document as though Wells 
Fargo were not Agent hereunder, and, 
in each case, without 
notice to or consent 
of the other members 
of the Lender Group. 
The other 
members of the 
Lender Group acknowledge 
(and by entering 
into a Bank 
Product Agreement, each 
Bank Product Provider 
shall be deemed 
to acknowledge) that, 
pursuant to such 
activities, Wells 
Fargo or its Affiliates may 
receive information regarding a 
Loan Party or its 
Affiliates or any other 
Person party to any Loan Documents that is subject to confidentiality obligations in favor of such 
Loan Party or such 
other Person and that 
prohibit the disclosure of 
such information to the 
Lenders 
(or Bank Product Providers), and the Lenders 
acknowledge (and by entering into 
a Bank Product 
Agreement,  each 
Bank  Product 
Provider  shall 
be  deemed 
to  acknowledge) 
that,  in 
such 
circumstances (and in 
the absence of 
a waiver of 
such confidentiality obligations, 
which waiver 
Agent will use 
its reasonable best 
efforts to 
obtain), Agent shall 
not be under 
any obligation to 
provide such information to them. 
The terms "Lender" and "Lenders" 
include Wells 
Fargo in its 
individual capacity. 
15.9.
 
Successor Agent
. 
Agent may 
resign as 
Agent upon 
30 days 
(ten days 
if an 
Event of Default has occurred 
and is continuing) prior 
written notice to the 
Lenders (unless such 
notice is 
waived by 
the Required 
Lenders) and 
Borrowers (unless 
such notice 
is waived 
by 
Borrowers or a Default 
or Event of Default has 
occurred and is continuing) and 
without any notice 
to the Bank Product 
Providers. 
If Agent resigns under 
this Agreement, the Required Lenders 
shall 
be entitled, with 
(so long as 
no Event of 
Default has occurred 
and is continuing) 
the consent of 
Borrowers (such 
consent not 
to be 
unreasonably withheld, 
delayed, or 
conditioned), appoint 
a 
successor Agent for 
the Lenders 
(and the Bank 
Product Providers). 
If, at the 
time that Agent's 

 

 

 

 

 

resignation is effective, 
it is acting 
as Issuing Bank 
or the Swing 
Lender, such 
resignation shall 
also operate to effectuate 
its resignation as Issuing 
Bank or the Swing Lender, 
as applicable, and 
it shall automatically 
be relieved of 
any further obligation 
to issue Letters 
of Credit, or 
to make 
Swing Loans. 
If no successor Agent is 
appointed prior to the 
effective date of the 
resignation of 
Agent, Agent may appoint, 
after consulting with the 
Lenders and Borrowers, a 
successor Agent. 

If Agent has materially breached or failed to perform any material provision of this Agreement or 
of applicable law, the Required Lenders may agree in writing to remove and replace Agent with a 
successor Agent from among 
the Lenders with (so 
long as no Event 
of Default has occurred 
and 
is continuing) the consent 
of Borrowers (such consent 
not to be unreasonably 
withheld, delayed, 
or conditioned). 
In any such 
event, upon the 
acceptance of its 
appointment as successor 
Agent 
hereunder, such successor 
Agent shall succeed to all 
the rights, powers, and duties 
of the retiring 
Agent and the 
term "Agent" shall 
mean such successor 
Agent and the 
retiring Agent's appointment, 
powers, and duties as Agent shall be terminated. 
After any retiring Agent's resignation hereunder 
as Agent, 
the provisions 
of this 
Section 15 
shall inure 
to its 
benefit as 
to any 
actions taken 
or 
omitted to 
be taken by 
it while 
it was Agent 
under this 
Agreement. 
If no successor 
Agent has 
accepted appointment as Agent by the date which 
is 30 days following a retiring Agent's notice of 
resignation, the retiring Agent's resignation shall 
nevertheless thereupon become effective and the 
Lenders shall perform all of 
the duties of Agent hereunder 
until such time, if 
any, as the 
Lenders 
appoint a successor Agent as provided for above. 
15.10.
 
Lender in Individual Capacity
. 
Any Lender and its respective 
Affiliates may 
make loans 
to, issue 
letters of 
credit for 
the account 
of, accept 
deposits from, 
provide Bank 
Products to, acquire 
Equity Interests in 
and generally engage 
in any kind 
of banking, trust, 
financial 
advisory, underwriting, 
or other business with 
any Loan Party and 
its Subsidiaries and Affiliates 
and any 
other Person 
party to 
any Loan 
Documents as 
though such 
Lender were 
not a 
Lender 
hereunder without notice 
to or consent 
of the other 
members of the 
Lender Group (or 
the Bank 
Product Providers). 
The other members of the 
Lender Group acknowledge (and by 
entering into 
a Bank Product 
Agreement, each Bank 
Product Provider shall 
be deemed to 
acknowledge) that, 
pursuant to 
such activities, 
such Lender 
and its 
respective Affiliates 
may receive 
information 
regarding a Loan Party 
or its Affiliates 
or any other Person 
party to any Loan 
Documents that is 
subject to confidentiality 
obligations in favor 
of such 
Loan Party or 
such other 
Person and 
that 
prohibit the disclosure of such information 
to the Lenders, and the Lenders 
acknowledge (and by 
entering  into  a  Bank  Product  Agreement,  each  Bank  Product  Provider  shall  be  deemed  to 
acknowledge) that, in such 
circumstances (and in the 
absence of a waiver 
of such confidentiality 
obligations, which waiver such Lender will use its reasonable best efforts 
to obtain), such Lender 
shall not be under any obligation to provide such information to them. 
15.11.
 
Collateral Matters
. 
(a)
 
The Lenders 
hereby irrevocably 
authorize (and 
by entering 
into a 
Bank 
Product Agreement, each 
Bank Product Provider 
shall be deemed 
to authorize) Agent 
to release 
any Lien 
on any 
Collateral (i) 
upon the 
termination of 
the Commitments 
and payment 
and 
satisfaction in 
full by 
the Loan 
Parties and 
their Subsidiaries 
of all 
of the 
Obligations, (ii) 
constituting property being sold 
or disposed of 
if a release 
is required or 
desirable in connection 
therewith and if Borrowers certify to Agent that the sale or disposition is permitted under Section 
6.4 (and 
Agent may 
rely conclusively 
on any 
such certificate, 
without further 
inquiry), (iii) 
constituting property in which 
no Loan Party or 
any of its Subsidiaries 
owned any interest at 
the 

 

 

 

 

 

time Agent's 
Lien was 
granted nor 
at any 
time thereafter, 
(iv) constituting 
property leased 
or 
licensed to a 
Loan Party or 
its Subsidiaries under 
a lease or 
license that has expired 
or is terminated 
in a transaction permitted under this Agreement, or (v) 
in connection with a credit bid or purchase 
authorized under 
this Section 
15.11. 
The Loan 
Parties and 
the Lenders 
hereby irrevocably 
authorize (and by entering 
into a Bank Product 
Agreement, each Bank Product 
Provider shall be 
deemed to authorize) Agent, based upon the instruction of the Required Lenders, to (a) consent to 
the sale of, credit bid, or purchase (either directly or indirectly through 
one or more entities) all or 
any portion of the Collateral at any sale thereof conducted under 
the provisions of the Bankruptcy 
Code, or similar Insolvency Laws 
in any other relevant 
jurisdiction, including Section 363 of 
the 
Bankruptcy Code or in connection with any other Insolvency Proceeding in any other jurisdiction 
to which a 
Loan Party is 
subject, (b) credit 
bid or purchase 
(either directly or 
indirectly through 
one or more 
entities) all or 
any portion of 
the Collateral at 
any sale or 
other disposition 
thereof 
conducted under the provisions of the Code, including pursuant to Sections 9-610 
or 9-620 of the 
Code, the PPSA, including pursuant to Sections 
9-610 or 9-620 of the Code, the 
PPSA or similar 
Insolvency Laws in 
any other relevant 
jurisdiction or any 
similar provision 
of the PPSA, 
or (c) 
credit bid or purchase (either directly or indirectly through one or more entities) all or 
any portion 
of the Collateral at 
any other sale or 
foreclosure conducted or consented 
to by Agent in 
accordance 
with applicable law in 
any judicial action or 
proceeding or by 
the exercise of any 
legal or equitable 
remedy. 
In connection 
with any 
such credit 
bid or 
purchase, (i) 
the Obligations 
owed to 
the 
Lenders and the Bank 
Product Providers shall be entitled 
to be, and shall 
be, credit bid on a 
ratable 
basis (with Obligations with respect to contingent or unliquidated claims 
being estimated for such 
purpose if the fixing or 
liquidation thereof would not impair 
or unduly delay the ability 
of Agent 
to credit bid or purchase at such 
sale or other disposition of the 
Collateral and, if such contingent 
or unliquidated 
claims cannot 
be estimated 
without impairing 
or unduly delaying 
the ability 
of 
Agent to 
credit bid 
at such sale 
or other disposition, 
then such 
claims shall 
be disregarded, not 
credit bid, and not entitled to 
any interest in the Collateral that is 
the subject of such credit bid 
or 
purchase) and the Lenders and the Bank Product Providers whose Obligations 
are credit bid shall 
be entitled to receive interests (ratably based upon 
the proportion of their Obligations credit bid in 
relation to the aggregate 
amount of Obligations so 
credit bid) in the 
Collateral that is the 
subject 
of such 
credit bid 
or purchase 
(or in 
the Equity 
Interests of 
the any 
entities that 
are used 
to 
consummate such 
credit bid 
or purchase), 
and (ii) 
Agent, based 
upon the 
instruction of 
the 
Required Lenders, may accept non-cash consideration, including debt and 
equity securities issued 
by any entities used to 
consummate such credit bid or 
purchase and in connection therewith 
Agent 
may reduce the 
Obligations owed to 
the Lenders and 
the Bank Product 
Providers (ratably based 
upon  the  proportion  of  their  Obligations  credit  bid  in  relation  to 
the  aggregate  amount  of 
Obligations so 
credit bid) 
based upon 
the value 
of such 
non-cash consideration; 
provided, that 
Bank Product Obligations not entitled to the application set forth in Section 2.4(b)(iii)(J) shall not 
be entitled to be, and shall 
not be, credit bid, or used in 
the calculation of the ratable interest 
of the 
Lenders and Bank Product Providers in the 
Obligations which are credit bid. 
Except as provided 
above, Agent will not execute 
and deliver a release of any 
Lien on any Collateral without the 
prior 
written authorization of 
(y) if the 
release is of 
all or substantially 
all of the 
Collateral, all of 
the 
Lenders (without requiring the authorization of the Bank Product Providers), or (z) otherwise, the 
Required Lenders 
(without requiring 
the authorization 
of the 
Bank Product 
Providers). 
Upon 
request by Agent or 
Borrowers at any time, 
the Lenders will (and 
if so requested, the 
Bank Product 
Providers will) confirm in writing 
Agent's authority to release any 
such Liens on particular types 
or items of 
Collateral pursuant to 
this Section 15.11 
; 
provided, that (1) 
anything to the 
contrary 

 

 

 

contained in any of the 
Loan Documents notwithstanding, Agent shall 
not be required to execute 
any document 
or take 
any action 
necessary to 
evidence such 
release on 
terms that, 
in Agent's 
opinion, could expose Agent 
to liability or create 
any obligation or entail 
any consequence other 
than the release 
of such Lien 
without recourse, representation, 
or warranty, 
and (2) such 
release 
shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those 
expressly released) upon (or obligations of Borrowers 
in respect of) any and all 
interests retained 
by any Borrower, including, the proceeds of any sale, all 
of which shall continue to constitute part 
of the Collateral. 
Each Lender further hereby irrevocably authorizes (and by entering into a Bank 
Product Agreement, each Bank 
Product Provider shall be deemed 
to irrevocably authorize) Agent, 
at its option and 
in its sole discretion, 
to subordinate (by contract 
or otherwise) any Lien 
granted 
to or held by Agent on any property under any Loan Document (a) to 
the holder of any Permitted 
Lien on 
such property 
if such 
Permitted Lien 
secures purchase 
money Indebtedness 
(including 
Capitalized Lease 
Obligations) which 
constitute Permitted 
Indebtedness and 
(b) to 
the extent 
Agent  has 
the  authority 
under  this 
Section  15.11 
to  release 
its  Lien 
on  such 
property. 

Notwithstanding the provisions 
of this Section 
15.11, 
the Agent shall 
be authorized, without 
the 
consent of any 
Lender and without the 
requirement that an 
asset sale consisting 
of the sale, transfer 
or other disposition having 
occurred, to release any 
security interest in any 
building, structure or 
improvement located in 
an area determined 
by the 
Federal Emergency 
Management Agency 
to 
have special flood hazards. 
(b)
 
Agent shall 
have no 
obligation whatsoever 
to any 
of the 
Lenders (or 
the 
Bank Product Providers) 
(i) to verify 
or assure that 
the Collateral exists 
or is owned 
by a Loan 
Party or any of its 
Subsidiaries or is cared for, 
protected, or insured or has 
been encumbered, (ii) 
to verify 
or assure 
that Agent's 
Liens have 
been properly 
or sufficiently 
or lawfully 
created, 
perfected, protected, or enforced 
or are entitled 
to any particular priority, 
(iii) to verify 
or assure 
that any particular items of 
Collateral meet the eligibility 
criteria applicable in respect thereof, 
(iv) 
to impose, maintain, increase, reduce, implement, or 
eliminate any particular reserve hereunder or 
to determine whether the amount of any reserve is appropriate or not, or (v) to exercise at all 
or in 
any particular manner or 
under any duty of care, 
disclosure or fidelity, 
or to continue exercising, 
any of the rights, authorities and 
powers granted or available to Agent pursuant to 
any of the Loan 
Documents, it being understood and agreed that in 
respect of the Collateral, or any act, 
omission, 
or event related 
thereto, subject to 
the terms and 
conditions contained herein, 
Agent may act 
in 
any manner 
it may 
deem appropriate, 
in its 
sole discretion 
given Agent's 
own interest 
in the 
Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability 
whatsoever to 
any Lender 
(or Bank 
Product Provider) 
as to 
any of 
the foregoing, 
except as 
otherwise expressly provided herein. 
15.12.
 
Restrictions on Actions by Lenders; Sharing of Payments
. 
(a)
 
Each of 
the Lenders 
agrees that 
it shall 
not, without 
the express 
written 
consent of Agent, 
and that it 
shall, to the 
extent it is 
lawfully entitled to 
do so, upon 
the written 
request of Agent, set off against the Obligations, any amounts owing by such Lender to any Loan 
Party or 
its Subsidiaries 
or any 
deposit accounts 
of any 
Loan Party 
or its 
Subsidiaries now 
or 
hereafter maintained with such Lender. 
Each of the Lenders further agrees that it shall 
not, unless 
specifically requested to do 
so in writing by 
Agent, take or cause to 
be taken any action, 
including, 
the commencement of any legal 
or equitable proceedings to 
enforce any Loan Document against 

 

 

 

 

any Borrower 
or any 
Guarantor or 
to foreclose 
any Lien 
on, or 
otherwise enforce 
any security 
interest in, any of the Collateral. 
(b)
 
If, at any 
time or times any 
Lender shall receive 
(i) by payment, 
foreclosure, 
setoff, or otherwise, 
any proceeds of Collateral 
or any payments 
with respect to the 
Obligations, 
except for any 
such proceeds or 
payments received by 
such Lender from 
Agent pursuant to 
the 
terms of this Agreement, 
or (ii) payments from 
Agent in excess of 
such Lender's Pro Rata 
Share 
of all such distributions by Agent, such Lender promptly shall (A) turn 
the same over to Agent, in 
kind, and 
with such 
endorsements as 
may be 
required to 
negotiate the 
same to 
Agent, or 
in 
immediately available funds, 
as applicable, for 
the account of 
all of the 
Lenders and for 
application 
to the Obligations 
in accordance with 
the applicable provisions 
of this Agreement, or 
(B) purchase, 
without recourse or 
warranty, an 
undivided interest and 
participation in the 
Obligations owed to 
the other 
Lenders so 
that such 
excess payment 
received shall 
be applied 
ratably as 
among the 
Lenders in accordance 
with their 
Pro Rata Shares; 
provided, that 
to the extent 
that such 
excess 
payment received 
by the 
purchasing party 
is thereafter 
recovered from 
it, those 
purchases of 
participations shall be 
rescinded in whole 
or in part, 
as applicable, and 
the applicable portion 
of 
the purchase price 
paid therefor 
shall be returned 
to such purchasing 
party, but 
without interest 
except to the 
extent that such 
purchasing party is 
required to pay 
interest in connection 
with the 
recovery of the excess payment. 
15.13.
 
Agency for Perfection
. 
Agent hereby appoints 
each other Lender 
(and each 
Bank Product Provider) as its agent (and 
each Lender hereby accepts (and by entering into 
a Bank 
Product Agreement, each Bank 
Product Provider shall be 
deemed to accept) such 
appointment) for 
the purpose of perfecting Agent's Liens in assets which, in accordance with Article 8 or Article 9, 
as applicable, of 
the Code or 
the STA, 
as applicable, can 
be perfected by 
possession or control. 

Should any Lender 
obtain possession or 
control of any 
such Collateral, such 
Lender shall notify 
Agent thereof, and, promptly upon 
Agent's request therefor shall 
deliver possession or control 
of 
such Collateral to Agent or in accordance with Agent's instructions. 
15.14.
 
Payments by Agent to the 
Lenders
. 
All payments to be made 
by Agent to the 
Lenders (or Bank Product 
Providers) shall be made 
by bank wire transfer 
of immediately available 
funds pursuant to such wire transfer instructions 
as each party may designate for itself 
by written 
notice to Agent. 
Concurrently with each 
such payment, Agent 
shall identify whether 
such payment 
(or any portion thereof) represents principal, premium, fees, or interest of the Obligations. 
15.15.
 
Concerning the Collateral and Related Loan Documents
. 
Each member of 
the Lender Group 
authorizes and directs 
Agent to enter 
into this Agreement 
and the other 
Loan 
Documents. 
Each member 
of the 
Lender Group 
agrees (and 
by entering 
into a 
Bank Product 
Agreement, each Bank Product Provider shall be deemed to 
agree) that any action taken by Agent 
in accordance 
with the 
terms of 
this Agreement 
or the 
other Loan 
Documents relating 
to the 
Collateral and the exercise 
by Agent of 
its powers set 
forth therein or 
herein, together with 
such 
other powers that are reasonably 
incidental thereto, shall be binding 
upon all of the Lenders 
(and 
such Bank Product Provider). 

 

 

 

 

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

 

 

 

 

15.17.
 
Several Obligations; No 
Liability
. 
Notwithstanding that certain of 
the Loan 
Documents now or hereafter may have been 
or will be executed only by or 
in favor of Agent in its 
capacity as such, and 
not by or in 
favor of the Lenders, 
any and all obligations on 
the part of Agent 
(if  any)  to  make  any  credit  available  hereunder  shall  constitute  the  several  (and  not  joint) 
obligations  of 
the  respective 
Lenders  on 
a  ratable 
basis,  according 
to  their 
respective 
Commitments, to make 
an amount of 
such credit not 
to exceed, in 
principal amount, at 
any one 
time outstanding, the 
amount of their 
respective Commitments. 
Nothing contained herein 
shall 
confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, 
the business, assets, profits, losses, or liabilities of any other Lender. 
Each Lender shall be solely 
responsible for 
notifying its 
Participants of 
any matters 
relating to 
the Loan 
Documents to 
the 
extent any such notice may be required, and 
no Lender shall have any obligation, duty, or liability 
to any Participant 
of any 
other Lender. 
Except as 
provided in 
Section 15.7, 
no member 
of the 
Lender Group shall have any liability for 
the acts of any other member 
of the Lender Group. 
No 
Lender shall 
be responsible 
to any 
Borrower or 
any other 
Person for 
any failure 
by any 
other 
Lender (or Bank Product Provider) 
to fulfill its obligations 
to make credit available hereunder, nor 
to advance for 
such Lender (or 
Bank Product Provider) 
or on its behalf, 
nor to take 
any other action 
on behalf of 
such Lender (or 
Bank Product Provider) 
hereunder or in 
connection with the 
financing 
contemplated herein. 
15.18.
 
Lead Arranger, 
and Book 
Runner
. 
Each of 
the Lead 
Arranger and 
Book 
Runner, in such capacities, 
shall not have any right, power, 
obligation, liability, 
responsibility, or 
duty under this Agreement 
other than those applicable 
to it in its 
capacity as a Lender, 
as Agent, 
as Swing Lender, or as Issuing Bank. 
Without limiting the generality of the foregoing, 
each of the 
J Lead Arranger 
and Book Runner, 
in such capacities, 
shall not have 
or be deemed 
to have any 
fiduciary relationship with 
any Lender or 
any Loan Party. 
Each Lender, 
Agent, Swing Lender, 
Issuing Bank, and 
each Loan Party 
acknowledges that it 
has not relied, 
and will not 
rely, on 
the 
Lead Arranger and Book 
Runner in deciding to 
enter into this Agreement 
or in taking or 
not taking 
action hereunder. 
Each of the 
Lead Arranger and 
Book Runner, in such 
capacities, shall be 
entitled 
to resign at any time by giving notice to Agent and Borrowers. 
15.19.
 
Appointment for the Province of Quebec
. 
(a)
 
Hypothecary Representative
. 
For greater certainty, 
and without limiting 
the powers of Agent, each Lender and each Bank Product Provider hereby irrevocably constitutes 
Agent as the hypothecary representative 
within the meaning of 
Article 2692 of the CCQ 
in order 
to hold hypothecs and security granted by any Loan 
Party on property pursuant to the laws of the 
Province of Québec in 
order to secure obligations 
of any Loan Party 
hereunder and under the 
other 
Loan Documents. 
The execution 
by Agent, 
acting as 
hypothecary representative 
prior to 
this 
Agreement of any deeds 
of hypothec or other 
security documents is hereby 
ratified and confirmed. 
(b)
 
Ratification   of   Hypothecary 
Representative   by 
Successors   and 
Assignees, Etc.
 
The constitution of Agent as hypothecary representative shall be deemed to have 
been ratified and 
confirmed by each 
Person accepting an 
assignment of, a 
participation in or 
an 
arrangement in respect of, 
all or any portion 
of the rights and 
obligations of any Lender 
or Bank 
Product Provider 
under this 
Agreement by the 
execution of 
an assignment 
(or other 
agreement 
pursuant to which 
it becomes such 
assignee or participant) 
and by each 
successor Agent by 
the 

 

 

 

 

 

 

 

 

compliance with 
such formalities 
pursuant to 
which it 
becomes a 
successor Agent 
under this 
Agreement. 
(c)
 
Rights,   Etc.   of 
Hypothecary   Representative.
 
Agent   acting   as 
hypothecary representative 
shall have 
the same 
rights, powers, 
immunities, indemnities 
and 
exclusions from liability as are prescribed in favor of Agent in 
this Agreement, which shall apply 
mutatis mutandis to Agent acting as hypothecary 
representative. 
In the event of the resignation 
of 
Agent (which shall 
include its 
resignation as the 
hypothecary representative as 
contemplated in 
Section 
15.19(a)
 
and appointment 
of a 
successor Agent 
under this 
Agreement, such 
successor 
Agent shall also act as the hypothecary representative, as contemplated by Section 15.19.1. 
16.
 
WITHHOLDING TAXES. 
16.1.
 
Payments
. 
All payments made by any Loan 
Party under any Loan Document 
will be made 
free and clear 
of, and without 
deduction or withholding 
for, any 
Taxes, except 
as 
otherwise required by applicable 
law, and 
in the event 
any deduction or 
withholding of Taxes 
is 
required, the applicable Loan Party shall 
make the requisite withholding, promptly pay 
over to the 
applicable Governmental Authority the withheld 
tax, and furnish to Agent as 
promptly as possible 
after the date 
the payment of 
any such Tax 
is due pursuant 
to applicable law, 
certified copies of 
tax receipts evidencing 
such payment by 
the Loan 
Parties. 
Furthermore, if any 
such Tax 
is an 
Indemnified Taxes 
or an Indemnified 
Tax is 
so levied or imposed, 
the Loan Parties agree 
to pay 
the full amount 
of such Indemnified 
Taxes and 
such additional amounts 
as may be 
necessary so 
that every 
payment of 
all amounts 
due under 
this Agreement, 
any note, 
or Loan 
Document, 
including any amount paid 
pursuant to this Section 
16.1 after withholding or 
deduction for or on 
account of any Indemnified 
Taxes, will not be less than the 
amount provided for herein. 
The Loan 
Parties will promptly pay any Other Taxes or reimburse Agent for such Other 
Taxes upon Agent's 
demand. 
The Loan 
Parties shall 
jointly and 
severally indemnify 
each Indemnified 
Person (as 
defined in 
Section 10.3) 
(collectively a 
"Tax Indemnitee") 
for the 
full amount 
of Indemnified 
Taxes arising 
in connection with 
this Agreement or 
any other Loan 
Document or breach 
thereof 
by any Loan 
Party (including any 
Indemnified Taxes 
imposed or asserted 
on, or attributable 
to, 
amounts payable 
under this 
Section 16) 
imposed on, 
or paid 
by, such 
Tax 
Indemnitee and 
all 
reasonable costs and expenses related 
thereto (including fees and disbursements 
of attorneys and 
other tax professionals), as and when they 
are incurred and irrespective of whether suit 
is brought, 
whether or 
not such 
Indemnified Taxes 
were correctly 
or legally 
imposed or 
asserted by 
the 
relevant Governmental 
Authority (other 
than Indemnified 
Taxes and 
additional amounts 
that a 
court of competent 
jurisdiction finally determines 
to have resulted 
from the gross 
negligence or 
willful misconduct of 
such Tax Indemnitee). 
The obligations of 
the Loan Parties 
under this Section 
16 shall survive the termination of this Agreement, the resignation and 
replacement of the Agent, 
and the repayment of the Obligations. 
16.2.
 
Exemptions
. 
(a)
 
If a Lender 
or Participant is 
entitled to claim 
an exemption or 
reduction from 
United States withholding 
tax, such Lender 
or Participant 
agrees with and 
in favor of 
Agent, to 
deliver to Agent (or, in the case of a Participant, 
to the Lender granting the participation only) 
and 
the Administrative Borrower on behalf of 
all Borrowers one of the following 
before receiving its 
first payment under this Agreement: 

 

 

 

(i)
 
if such Lender or Participant is entitled to claim an exemption from 
United States withholding tax 
pursuant to the 
portfolio interest exception, 
(A) a statement of 
the 
Lender or Participant, signed under penalty of 
perjury, that 
it is not a (I) a 
"bank" as described in 
Section 881(c)(3)(A) of the IRC, 
(II) a 10% shareholder of 
any Borrower (within the meaning 
of 
Section 871(h)(3)(B) of 
the IRC), or 
(III) a 
controlled foreign corporation 
related to Borrowers 
within the meaning of 
Section 864(d)(4) of 
the IRC, and 
(B) a properly completed 
and executed 
IRS Form W-8BEN, Form W-8BEN-E or 
Form W-8IMY (with proper attachments 
as applicable); 
(ii)
 
if such Lender or Participant is 
entitled to claim an exemption from, 
or a 
reduction of, 
withholding tax 
under a 
United States 
tax treaty, 
a properly 
completed and 
executed copy of IRS Form W-8BEN or Form W-8BEN-E, 
as applicable; 
(iii)
 
if such 
Lender or Participant 
is entitled 
to claim 
that interest 
paid 
under this 
Agreement is 
exempt from 
United States 
withholding tax 
because it 
is effectively 
connected with 
a United 
States trade 
or business 
of such 
Lender, a 
properly completed 
and 
executed copy of IRS Form W-8ECI; 
(iv)
 
if such 
Lender or Participant 
is entitled 
to claim 
that interest 
paid 
under this 
Agreement is 
exempt from 
United States 
withholding tax 
because such 
Lender or 
Participant serves as 
an intermediary, 
a properly completed 
and executed copy 
of IRS Form 
W-
8IMY (including a withholding statement and copies of the tax certification documentation for its 
beneficial owner(s) of the income 
paid to the intermediary, if required based on 
its status provided 
on the Form W-8IMY); or 
(v)
 
a properly completed and 
executed copy of any 
other form or forms, 
including IRS Form W-9, 
as may be required under the IRC 
or other laws of the United States 
as 
a condition to exemption from, or reduction of, United 
States withholding or backup withholding 
tax. 
(b)
 
Each Lender or 
Participant shall 
provide new forms 
(or successor forms) 
upon the 
expiration or 
obsolescence of 
any previously 
delivered forms 
and to 
promptly notify 
Agent and Administrative 
Borrower (or, 
in the case 
of a Participant, 
to the Lender 
granting the 
participation only) 
of any 
change in 
circumstances which 
would modify 
or render 
invalid any 
claimed exemption or reduction. 
(c)
 
If a Lender 
or Participant 
claims an exemption 
from withholding tax 
in a 
jurisdiction other than the United States, such Lender or such Participant agrees with and in favor 
of Agent and 
Borrowers, to deliver 
to Agent 
and Administrative 
Borrower (or, 
in the 
case of a 
Participant, to 
the Lender 
granting the 
participation only) 
any such 
form or 
forms, as 
may be 
required under the 
laws of 
such jurisdiction 
as a condition 
to exemption 
from, or 
reduction of, 
foreign withholding 
or backup 
withholding tax 
before receiving 
its first 
payment under 
this 
Agreement, but only if such Lender 
or such Participant is legally 
able to deliver such forms, or 
the 
providing of or delivery 
of such forms in 
the Lender's reasonable judgment 
would not subject such 
Lender  to  any  material 
unreimbursed  cost  or  expense 
or  materially  prejudice  the  legal 
or 
commercial position 
of such 
Lender (or 
its Affiliates); 
provided, further, 
that nothing 
in this 
Section 16.2(c) shall 
require a Lender or 
Participant to disclose 
any information that 
it deems to 
be confidential (including 
its tax 
returns). 
Each Lender and 
each Participant shall 
provide new 

 

 

 

 

 

 

 

 

 

forms (or successor forms) upon the expiration or 
obsolescence of any previously delivered forms 
and promptly notify 
Agent and Administrative 
Borrower (or, 
in the case 
of a Participant, 
to the 
Lender granting the 
participation only) of 
any change in 
circumstances which would 
modify or 
render invalid any claimed exemption or reduction. 
(d)
 
If  a 
Lender  or 
Participant  claims 
exemption  from, 
or  reduction 
of, 
withholding tax and 
such Lender or 
Participant sells, assigns, 
grants a participation 
in, or otherwise 
transfers all or part of the Obligations of Borrowers to such Lender or Participant, such Lender or 
Participant agrees 
to notify 
Agent and 
Administrative Borrower 
(or, in 
the case 
of a 
sale of 
a 
participation interest, to 
the Lender granting 
the participation only) 
of the percentage 
amount in 
which it 
is no 
longer the 
beneficial owner 
of Obligations 
of Borrowers 
to such 
Lender or 
Participant. 
To the 
extent of such 
percentage amount, Agent 
and Administrative Borrower 
will 
treat such Lender's 
or such 
Participant's documentation 
provided pursuant 
to Section 
16.2(a) or 
16.2(c) as no longer valid. 
With respect to such percentage amount, such Participant or 
Assignee 
may provide new documentation, pursuant to Section 16.2(a) or 16.2(c), if 
applicable. 
Borrowers 
agree that each 
Participant shall 
be entitled to 
the benefits of 
this Section 
16 with respect 
to its 
participation in any portion 
of the Commitments 
and the Obligations 
so long as 
such Participant 
complies with the obligations set forth in this Section 16 with respect thereto. 
(e)
 
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 due 
diligence and 
reporting requirements 
of FATCA 
(including those 
contained in 
Section 1471(b) or 1472(b) 
of the IRC, as 
applicable), such Lender shall 
deliver to Agent (or, 
in 
the case 
of a 
Participant, to 
the Lender 
granting the 
participation only) 
at the 
time or 
times 
prescribed by law 
and at such 
time or times 
reasonably requested by 
Agent (or, 
in the case 
of a 
Participant, the 
Lender granting the 
participation) such 
documentation prescribed by 
applicable 
law  (including  as  prescribed 
by  Section  1471(b)(3)(C)(i) 
of  the  IRC) 
and  such  additional 
documentation reasonably requested by 
Agent (or, in the case of 
a Participant, the Lender 
granting 
the participation) as 
may be necessary 
for Agent or 
Borrowers to comply 
with their obligations 
under FATCA 
and to 
determine that 
such Lender 
has complied 
with such 
Lender's obligations 
under FATCA 
or to determine the amount to deduct and withhold from such payment. 
Solely for 
purposes of this 
clause (e), "FATCA" 
shall include 
any amendments made 
to FATCA 
after the 
date of this Agreement. 
16.3.
 
Reductions
. 
(a)
 
If a 
Lender or 
a Participant 
is subject 
to an 
applicable withholding 
tax, 
Agent (or, in 
the case of a 
Participant, the Lender 
granting the participation) may 
withhold from 
any  payment  to 
such  Lender  or 
such  Participant 
an  amount  equivalent 
to  the  applicable 
withholding tax. 
If the forms 
or other documentation 
required by Section 
16.2(a) or 16.2(c) 
are 
not delivered to 
Agent (or, in 
the case of 
a Participant, to 
the Lender granting 
the participation), 
then Agent (or, in the case of a Participant, to the 
Lender granting the participation) may withhold 
from  any  payment  to 
such  Lender  or  such 
Participant  not  providing 
such  forms  or  other 
documentation an amount equivalent to the applicable withholding tax. 
(b)
 
If the IRS 
or any other 
Governmental Authority of 
the United States 
or other 
jurisdiction asserts a claim 
that Agent (or, 
in the case of 
a Participant, to the 
Lender granting the 

 

 

 

 

 

 

 

 

 

participation) did not properly withhold 
tax from amounts paid to 
or for the account 
of any Lender 
or any 
Participant due 
to a 
failure on 
the part 
of the 
Lender or 
any Participant 
(because the 
appropriate form was not 
delivered, was not properly 
executed, or because such 
Lender failed to 
notify Agent (or such 
Participant failed to notify 
the Lender granting the 
participation) of a change 
in circumstances which rendered the 
exemption from, or reduction of, 
withholding tax ineffective, 
or for any other reason) such Lender 
shall indemnify and hold Agent harmless (or, in the case of 
a 
Participant, such 
Participant shall 
indemnify and 
hold the 
Lender granting 
the participation 
harmless) for all amounts paid, directly or indirectly, 
by Agent (or, in the 
case of a Participant, to 
the Lender granting 
the participation), 
as tax 
or otherwise, including 
penalties and interest, 
and 
including any taxes imposed by any jurisdiction 
on the amounts payable to Agent (or, 
in the case 
of a Participant, to the Lender granting the 
participation only) under this Section 16, together with 
all costs and expenses (including 
attorneys' fees and expenses). 
The obligation of the Lenders 
and 
the  Participants  under  this  subsection  shall  survive  the  payment  of  all  Obligations  and  the 
resignation or replacement of Agent. 
16.4.
 
Refunds
. 
If Agent or a Lender determines, in its 
sole discretion acting in good 
faith, that it has 
received a refund of any 
Indemnified Taxes 
to which the Loan Parties 
have paid 
additional amounts 
pursuant to 
this Section 
16, so 
long as 
no Default 
or Event 
of Default 
has 
occurred and is continuing, it 
shall pay over such refund 
to the Administrative Borrower on 
behalf 
of the Loan Parties 
(but only to 
the extent of payments 
made, or additional amounts 
paid, by the 
Loan Parties under this Section 
16 with respect to Indemnified 
Taxes giving rise to such a refund), 
net of 
all out-of-pocket 
expenses of 
Agent or 
such Lender 
and without 
interest (other 
than any 
interest paid by the 
applicable Governmental Authority with 
respect to such a 
refund); provided, 
that the Loan Parties, upon 
the request of Agent or 
such Lender, agrees to 
repay the amount paid 
over to the Loan 
Parties (plus any penalties, 
interest or other charges, 
imposed by the applicable 
Governmental Authority, other than such penalties, interest 
or other charges imposed as 
a result of 
the willful misconduct or gross negligence of Agent or 
Lender hereunder as finally determined by 
a court of 
competent jurisdiction) to 
Agent or such 
Lender in the 
event Agent or 
such Lender is 
required to repay such refund to such Governmental Authority. 
Notwithstanding anything in this 
Agreement to the contrary, 
this Section 16 shall not 
be construed to require Agent 
or any Lender 
to make available 
its tax returns 
(or any other 
information which it 
deems confidential) to 
Loan 
Parties or any other Person or require Agent or any Lender to pay any amount to an indemnifying 
party pursuant to Section 16.4, the payment of 
which would place Agent or such Lender 
(or their 
Affiliates) in a 
less favorable net 
after-Tax 
position than such 
Person would have 
been in if 
the 
Tax subject 
to indemnification and giving rise to 
such refund had not been deducted, 
withheld or 
otherwise imposed and the 
indemnification payments or additional 
amounts with respect to 
such 
Tax had never been paid. 
17.
 
GENERAL PROVISIONS. 
17.1.
 
Effectiveness
. 
This Agreement shall 
be binding and 
deemed effective 
when 
executed by 
each Borrower, 
Agent, and 
each Lender 
whose signature 
is provided 
for on 
the 
signature pages hereof. 
17.2.
 
Section Headings
. 
Headings and 
numbers have 
been set 
forth herein 
for 
convenience only. 
Unless the contrary is compelled by the context, 
everything contained in each 
Section applies equally to this entire Agreement. 

 

 

 

 

17.3.
 
Interpretation
. 
Neither this 
Agreement nor 
any uncertainty 
or ambiguity 
herein shall be 
construed against the 
Lender Group or 
any Borrower, 
whether under any 
rule of 
construction or otherwise. 
On the contrary, 
this Agreement has been reviewed 
by all parties and 
shall be construed 
and interpreted according 
to the ordinary 
meaning of the 
words used so 
as to 
accomplish fairly the purposes and intentions of all parties hereto. 
17.4.
 
Severability  of  Provisions
. 
Each  provision  of 
this  Agreement  shall 
be 
severable from every other 
provision of this 
Agreement for the 
purpose of determining 
the legal 
enforceability of any specific provision. 
17.5.
 
Bank Product Providers
. 
Each Bank Product Provider in its capacity as such 
shall be deemed 
a third party 
beneficiary hereof and 
of the provisions 
of the other 
Loan Documents 
for purposes of any reference in a 
Loan Document to the parties for whom Agent 
is acting. 
Agent 
hereby agrees to 
act as agent 
for such Bank 
Product Providers 
and, by virtue 
of entering into 
a 
Bank Product Agreement, the applicable Bank Product Provider shall be automatically deemed to 
have appointed Agent as its agent and to have accepted the benefits of the Loan Documents. 
It is 
understood and agreed that the rights and benefits 
of each Bank Product Provider under the Loan 
Documents consist exclusively of 
such Bank Product 
Provider's being a beneficiary 
of the Liens 
and security interests 
(and, if applicable, 
guarantees) granted to 
Agent and 
the right to 
share in 
payments and collections 
out of the 
Collateral as more 
fully set forth 
herein. In addition, 
each Bank 
Product Provider, 
by virtue 
of entering 
into a 
Bank Product 
Agreement, shall 
be automatically 
deemed to have agreed 
that Agent shall 
have the right, but 
shall have no obligation, 
to establish, 
maintain, relax, or release reserves in respect of the Bank Product Obligations and that if reserves 
are established 
there is 
no obligation 
on the 
part of 
Agent to 
determine or 
insure whether 
the 
amount of 
any such 
reserve is 
appropriate or 
not. 
In connection with 
any such 
distribution of 
payments or proceeds 
of Collateral, Agent shall 
be entitled to assume 
no amounts are due 
or owing 
to  any  Bank  Product 
Provider  unless  such  Bank 
Product  Provider  has  provided 
a  written 
certification (setting forth 
a reasonably detailed 
calculation) to Agent 
as to the 
amounts that are 
due and owing to it and 
such written certification is received by 
Agent a reasonable period of time 
prior to the 
making of such 
distribution. 
Agent shall have 
no obligation to 
calculate the amount 
due and payable with respect to any Bank Products, but may rely upon the written certification of 
the amount 
due and 
payable from 
the applicable 
Bank Product 
Provider. 
In the absence 
of an 
updated certification, 
Agent shall 
be entitled 
to assume that 
the amount 
due and payable 
to the 
applicable Bank 
Product Provider 
is the 
amount last 
certified to 
Agent by 
such Bank 
Product 
Provider as being due and payable (
less
 
any distributions made to such Bank Product Provider on 
account thereof). 
Borrowers may obtain 
Bank Products from 
any Bank Product Provider, 
although 
Borrowers are 
not required 
to do 
so. 
Each Borrower 
acknowledges and 
agrees that 
no Bank 
Product Provider 
has committed 
to provide 
any Bank 
Products and 
that the 
providing of 
Bank 
Products by any Bank 
Product Provider is in the 
sole and absolute discretion 
of such Bank Product 
Provider. 
Notwithstanding  anything  to  the  contrary  in 
this  Agreement  or  any  other  Loan 
Document, no provider 
or holder of 
any Bank Product 
shall have any 
voting or approval 
rights 
hereunder (or be deemed a Lender) 
solely by virtue of its 
status as the provider or 
holder of such 
agreements or 
products or 
the Obligations 
owing thereunder, 
nor shall 
the consent 
of any 
such 
provider or holder be required 
(other than in their capacities 
as Lenders, to the extent 
applicable) 
for any matter 
hereunder or under 
any of the 
other Loan Documents, 
including as to 
any matter 
relating to the Collateral or the release of Collateral or Guarantors. 

 

 

 

 

 

17.6.
 
Debtor-Creditor Relationship
. 
The relationship 
between the 
Lenders and 
Agent, on 
the one 
hand, and 
the Loan 
Parties, on 
the other 
hand, is 
solely that 
of creditor 
and 
debtor. 
No member 
of the 
Lender Group 
has (or 
shall be 
deemed to 
have) any 
fiduciary 
relationship or duty to any Loan Party 
arising out of or in connection with the 
Loan Documents or 
the transactions contemplated 
thereby, and there is no 
agency or joint 
venture relationship between 
the members of 
the Lender Group, 
on the one 
hand, and the 
Loan Parties, on 
the other hand, 
by 
virtue of any Loan Document or any transaction contemplated therein. 
17.7.
 
Counterparts; Electronic 
Execution
. 
This Agreement 
may be 
executed in 
any number of counterparts and 
by different parties on separate 
counterparts, each of which, when 
executed and delivered, shall be deemed to be 
an original, and all of which, 
when taken together, 
shall constitute 
but one 
and the 
same Agreement. 
Delivery of 
an executed 
counterpart of 
this 
Agreement by telefacsimile 
or other electronic 
method of transmission 
shall be equally 
as effective 
as delivery 
of an 
original executed 
counterpart of 
this Agreement. 
Any party 
delivering an 
executed counterpart of 
this Agreement by 
telefacsimile or other 
electronic method of 
transmission 
also shall deliver an 
original executed counterpart of 
this Agreement but the 
failure to deliver an 
original executed counterpart shall not affect 
the validity, enforceability, 
and binding effect of this 
Agreement. 
The foregoing shall apply to each other Loan Document mutatis mutandis. 
17.8.
 
Revival and Reinstatement of Obligations; Certain Waivers
. 
(a)
 
If any member of the 
Lender Group or any Bank 
Product Provider repays, 
refunds, restores, or returns in whole or in part, 
any payment or property (including any proceeds 
of Collateral) previously 
paid or transferred 
to such member 
of the Lender 
Group or such 
Bank 
Product Provider 
in full 
or partial 
satisfaction of 
any Obligation 
or on 
account of 
any other 
obligation of any Loan Party 
under any Loan Document or any 
Bank Product Agreement, because 
the payment, transfer, or 
the incurrence of the obligation so 
satisfied is asserted or declared 
to be 
void, voidable, 
or otherwise 
recoverable under 
any law 
relating to 
creditors' rights, 
including 
provisions of 
the Bankruptcy 
Code or 
other Insolvency 
Laws relating 
to fraudulent 
transfers, 
preferences,  or  other 
voidable  or  recoverable 
obligations  or  transfers 
(each,  a  "Voidable 
Transfer"), or because such member of the 
Lender Group or Bank Product 
Provider elects to do so 
on the reasonable 
advice of its 
counsel in connection 
with a claim 
that the payment, 
transfer, or 
incurrence is or may 
be a Voidable Transfer, 
then, as to any 
such Voidable 
Transfer, or the amount 
thereof that such member of 
the Lender Group or Bank 
Product Provider elects to repay, 
restore, 
or return 
(including pursuant 
to a 
settlement of 
any claim 
in respect 
thereof), and 
as to 
all 
reasonable costs, 
expenses, and 
attorneys' fees 
of such 
member of 
the Lender 
Group or 
Bank 
Product Provider related thereto, (i) the liability of the Loan Parties with 
respect to the amount or 
property paid, 
refunded, restored, 
or returned 
will automatically 
and immediately 
be revived, 
reinstated, and 
restored and 
will exist, 
and (ii) 
Agent's Liens 
securing such 
liability shall 
be 
effective, revived, and 
remain in full 
force and effect, 
in each case, 
as fully as 
if such Voidable 
Transfer had never been made. 
If, prior to any 
of the foregoing, (A) Agent's 
Liens shall have been 
released or 
terminated, or 
(B) any 
provision of 
this Agreement 
shall have 
been terminated 
or 
cancelled, Agent's Liens, or such provision of this Agreement, shall be reinstated in full force and 
effect and 
such prior 
release, termination, 
cancellation or 
surrender shall 
not diminish, 
release, 
discharge, impair or otherwise 
affect the obligation 
of any Loan Party in 
respect of such liability 
or any 
Collateral securing 
such liability. 
This provision 
shall survive 
the termination 
of this 
Agreement and the repayment in full of the Obligations. 

 

 

 

 

 

 

 

 

 

 

 

 

17.9.
 
Confidentiality
. 
(a)
 
Agent  and  Lenders 
each  individually  (and 
not  jointly  or 
jointly  and 
severally)  agree  that  material,  non-public  information 
regarding  the  Loan  Parties  and  their 
Subsidiaries, their operations, assets, and existing and 
contemplated business plans ("Confidential 
Information") shall be treated by Agent and the 
Lenders in a confidential manner, and shall not be 
disclosed by Agent and the Lenders to Persons who 
are not parties to this Agreement, except: 
(i) 
to attorneys for 
and other advisors, 
accountants, auditors, and 
consultants to any 
member of the 
Lender Group and to 
employees, directors and officers 
of any member of 
the Lender Group (the 
Persons  in  this  clause  (i),  "Lender  Group  Representatives") 
on  a  "need  to  know"  basis  in 
connection with this 
Agreement and the 
transactions contemplated hereby 
and on a 
confidential 
basis, (ii) to Subsidiaries 
and Affiliates of any 
member of the Lender 
Group (including the Bank 
Product Providers); provided, 
that any such 
Subsidiary or Affiliate 
shall have agreed 
to receive 
such information hereunder 
subject to the 
terms of this 
Section 17.9, (iii) 
as may be 
required by 
regulatory authorities so 
long as such 
authorities are informed 
of the confidential 
nature of such 
information, (iv) as may be required 
by statute, decision, or judicial 
or administrative order, rule, 
or regulation; provided, that (x) prior to any disclosure under this 
clause (iv), the disclosing party 
agrees to provide Borrowers 
with prior notice thereof, 
to the extent 
that it is practicable 
to do so 
and to the 
extent that the 
disclosing party is permitted 
to provide such 
prior notice to 
Borrowers 
pursuant to the 
terms of the 
applicable statute, decision, 
or judicial or 
administrative order, rule, 
or regulation and 
(y) any disclosure 
under this 
clause (iv) shall 
be limited to 
the portion 
of the 
Confidential Information as may 
be required by 
such statute, decision, or 
judicial or administrative 
order, rule, 
or regulation, 
(v) as 
may be 
agreed to 
in advance 
in writing 
by Borrowers, 
(vi) as 
requested or 
required by 
any Governmental 
Authority pursuant 
to any 
subpoena or 
other legal 
process; provided, that (x) prior to 
any disclosure under this clause (vi) 
the disclosing party agrees 
to provide Borrowers with prior 
written notice thereof, to the 
extent that it is 
practicable to do so 
and to 
the extent 
that the 
disclosing party 
is permitted 
to provide 
such prior 
written notice 
to 
Borrowers pursuant 
to the 
terms of 
the subpoena 
or other 
legal process 
and (y) 
any disclosure 
under this 
clause (vi) 
shall be 
limited to 
the portion 
of the 
Confidential Information 
as may 
be 
required by such Governmental Authority 
pursuant to such subpoena 
or other legal process, (vii) 
as to any 
such information 
that is 
or becomes 
generally available to 
the public 
(other than as 
a 
result of 
prohibited disclosure 
by Agent 
or the 
Lenders or 
the Lender 
Group Representatives), 
(viii) in connection 
with any assignment, participation 
or pledge of any 
Lender's interest under this 
Agreement;  provided,  that 
prior  to  receipt 
of  Confidential  Information 
any  such  assignee, 
participant, or pledgee shall 
have agreed in writing 
to receive such Confidential 
Information either 
subject to the terms 
of this Section 
17.9 or pursuant to 
confidentiality requirements substantially 
similar to those 
contained in this 
Section 17.9 (and 
such Person may 
disclose such Confidential 
Information to 
Persons employed 
or engaged 
by them 
as described 
in clause 
(i) above), 
(ix) in 
connection with any litigation or 
other adversary proceeding involving parties 
hereto which such 
litigation or adversary 
proceeding involves 
claims related 
to the 
rights or 
duties of such 
parties 
under this Agreement or the 
other Loan Documents; provided, that 
prior to any disclosure to 
any 
Person (other than any 
Loan Party, 
Agent, any Lender, 
any of their respective 
Affiliates, or their 
respective counsel) 
under this 
clause (ix) 
with respect to 
litigation involving 
any Person 
(other 
than any 
Borrower, Agent, 
any Lender, 
any of 
their respective 
Affiliates, or 
their respective 
counsel), the disclosing 
party agrees to 
provide Borrowers with 
prior written notice 
thereof, and 
(x) in 
connection with, 
and to 
the extent 
reasonably necessary 
for, the 
exercise of 
any secured 
creditor remedy under this Agreement or under any other Loan Document. 

 

 

 

 

(b)
 
Anything in 
this Agreement 
to the 
contrary notwithstanding, 
Agent may 
disclose information concerning 
the terms and 
conditions of this 
Agreement and the 
other Loan 
Documents to loan 
syndication and pricing reporting 
services or in 
its marketing or promotional 
materials, with such information to consist of deal terms and other information customarily found 
in such publications 
or marketing or 
promotional materials and 
may otherwise use 
the name, logos, 
and other 
insignia of 
any Borrower 
or the 
other Loan 
Parties and 
the Commitments 
provided 
hereunder in 
any "tombstone" 
or other 
advertisements, on 
its website 
or in 
other marketing 
materials of the Agent. 
(c)
 
Each Loan 
Party agrees 
that Agent 
may make 
materials or 
information 
provided by or on 
behalf of Borrowers hereunder (collectively, "Borrower Materials") 
available to 
the Lenders by 
posting the 
Communications on 
IntraLinks, SyndTrak 
or a 
substantially similar 
secure electronic transmission system 
(the "Platform"). 
The Platform is provided 
"as is" and "as 
available." 
Agent does not 
warrant the accuracy 
or completeness of 
the Borrower Materials, 
or 
the adequacy 
of the 
Platform and 
expressly disclaim 
liability for 
errors or 
omissions in 
the 
communications. 
No warranty of any kind, express, implied or statutory, 
including any warranty 
of merchantability, 
fitness for 
a particular 
purpose, non-infringement 
of third 
party rights 
or 
freedom from viruses 
or other code 
defects, is made 
by Agent in 
connection with the 
Borrower 
Materials or the Platform. 
In no event shall Agent or any of the 
Agent-Related Persons have any 
liability to the 
Loan Parties, any 
Lender or any 
other person for 
damages of any 
kind, including 
direct or indirect, 
special, incidental or consequential 
damages, losses or 
expenses (whether in tort, 
contract or otherwise) arising out of any Loan Party's or Agent's 
transmission of communications 
through the 
Internet, except 
to the 
extent the 
liability of 
such person 
is found 
in a 
final non-
appealable judgment by 
a court of competent 
jurisdiction to have resulted 
from such person's gross 
negligence or willful misconduct. 
Each Loan Party further agrees that certain of the Lenders may 
be "public-side" Lenders (i.e., 
Lenders that do not 
wish to receive material 
non-public information 
with respect to 
the Loan Parties 
or their securities) 
(each, a "Public 
Lender"). 
The Loan Parties 
shall be 
deemed to 
have authorized 
Agent and 
its Affiliates 
and the 
Lenders to 
treat Borrower 
Materials marked "PUBLIC" 
or otherwise at 
any time filed 
with the SEC 
as not containing 
any 
material non-public information with respect to the 
Loan Parties or their securities for 
purposes of 
United States 
federal and 
state securities 
laws. 
All Borrower 
Materials marked 
"PUBLIC" are 
permitted to be made available 
through a portion of 
the Platform designated as 
"Public Investor" 
(or another similar 
term). 
Agent and its 
Affiliates and the 
Lenders shall be 
entitled to treat 
any 
Borrower Materials that are not marked 
"PUBLIC" or that are not at 
any time filed with the 
SEC 
as being suitable only for posting on a portion of the Platform not 
marked as "Public Investor" (or 
such other similar term). 
17.10.
 
Survival
. 
All representations and 
warranties made by 
the Loan Parties 
in the 
Loan Documents 
and in 
the certificates 
or other 
instruments delivered 
in connection 
with or 
pursuant to this 
Agreement or any other 
Loan Document shall be 
considered to have been 
relied 
upon by 
the other 
parties hereto 
and shall 
survive the 
execution and 
delivery of 
the  Loan 
Documents and the making of any Loans 
and issuance of any Letters of Credit, 
regardless of any 
investigation made by 
any such other 
party or on 
its behalf and 
notwithstanding that Agent, Issuing 
Bank, or any 
Lender may have 
had notice or 
knowledge of 
any Default 
or Event 
of Default or 
incorrect representation or 
warranty at the 
time any credit 
is extended hereunder, 
and shall continue 
in full force and effect as long as the principal 
of, or any accrued interest on, any Loan or any fee 

 

 

or any other amount 
payable under this Agreement 
is outstanding or unpaid 
or any Letter of 
Credit 
is outstanding and so long as the Commitments have not expired or been terminated. 
17.11.
 
Patriot Act; Due Diligence
. 

(a)
 
Each Lender that 
is subject 
to the 
requirements of 
the Patriot 
Act hereby 
notifies the Loan 
Parties that pursuant 
to the requirements 
of the Patriot 
Act, it is 
required to obtain, 
verify and record 
information that identifies 
each Loan Party, which 
information includes the 
name 
and address of each Loan Party and other information that will 
allow such Lender to identify each 
Loan Party in accordance with the Patriot Act. 
In addition, Agent and each Lender shall have the 
right to periodically conduct 
due diligence on all 
Loan Parties, their senior 
management and key 
principals and legal and beneficial owners. 
Each Loan Party agrees to cooperate in respect of the 
conduct of such due 
diligence and further agrees 
that the reasonable costs 
and charges for any 
such 
due diligence by Agent shall constitute Lender Group Expenses hereunder and 
be for the account 
of Borrowers. 
(b)
 
Each Loan Party acknowledges 
that, pursuant to the provisions 
of Canadian 
Anti-Money Laundering 
& Anti-Terrorism 
Legislation, Agent 
and Lenders 
may be 
required to 
obtain,  verify  and 
record  information  regarding 
each  Loan  Party, 
its  respective  directors, 
authorized signing officers, direct 
or indirect shareholders or 
other Persons in control 
of such Loan 
Party, and the transactions contemplated hereby. 
The Loan Parties shall 
promptly provide all such 
information, including 
supporting documentation 
and other 
evidence,  as may 
be  reasonably 
requested by any Lender or Agent, or any 
prospective assign or participant of a 
Lender or Agent, 
necessary in 
order to 
comply with 
any applicable 
Canadian Anti-Money 
Laundering & 
Anti-
Terrorism 
Legislation, whether now 
or hereafter in 
existence. 
If Agent has 
ascertained the identity 
of any Loan Party or 
any authorized signatories of any 
Loan Party for the purposes 
of applicable 
Canadian Anti-Money Laundering & Anti-Terrorism 
Legislation, then the Agent: 
(i)
 
shall be deemed 
to have done 
so as an 
agent for each 
Lender, and 
this Agreement shall constitute a "written 
agreement" in such regard between each 
Lender and the 
Agent within 
the meaning 
of applicable 
Canadian Anti-Money 
Laundering & 
Anti-Terrorism 

Legislation; 
(ii)
 
shall provide to 
each Lender copies 
of all information 
obtained in 
such regard without any representation or warranty as to its accuracy or completeness. 
Notwithstanding the provisions of this Section and except as may 
otherwise be agreed in writing, 
each Lender agrees that 
Agent has no obligation 
to ascertain the identity 
of the Loan Parties 
or any 
authorized signatories of the Loan 
Parties on behalf of any 
Lender, or to confirm the completeness 
or accuracy of any information 
it obtains from the Loan 
Parties or any such 
authorized signatory 
in doing so. 
17.12.
 
Integration
. 
This  Agreement,  together  with  the 
other  Loan  Documents, 
reflects the entire 
understanding of the 
parties with respect 
to the transactions 
contemplated hereby 
and shall not be contradicted or qualified 
by any other agreement, oral or 
written, before the date 
hereof. 
The foregoing to the 
contrary notwithstanding, all Bank 
Product Agreements, if any, 
are 
independent agreements governed 
by the 
written provisions 
of such Bank 
Product Agreements, 

 

 

 

 

 

which will remain 
in full force 
and effect, unaffected by 
any repayment, prepayments, 
acceleration, 
reduction, increase, or change in 
the terms of any credit 
extended hereunder, except 
as otherwise 
expressly provided in such Bank Product Agreement. 
17.13.
 
CMT as Agent 
for Borrowers
. 
Each Borrower hereby 
irrevocably appoints 
CMT  as 
the  borrowing  agent 
and  attorney-in 
-fact  for  all 
Borrowers  (the 
"Administrative 
Borrower") which appointment 
shall remain in 
full force and 
effect unless and 
until Agent shall 
have received 
prior written 
notice signed 
by each 
Borrower that 
such appointment 
has been 
revoked and that another Borrower has been appointed Administrative Borrower. 
Each Borrower 
hereby irrevocably appoints and 
authorizes the Administrative Borrower 
(a) to provide Agent 
with 
all notices with 
respect to Revolving Loans 
and Letters of 
Credit obtained for 
the benefit of 
any 
Borrower  and  all  other  notices 
and  instructions  under  this  Agreement 
and  the  other  Loan 
Documents (and any notice or 
instruction provided by Administrative 
Borrower shall be deemed 
to be 
given by 
Borrowers hereunder 
and shall 
bind each 
Borrower), (b) 
to receive 
notices and 
instructions from members 
of the Lender 
Group (and any 
notice or instruction 
provided by any 
member of the Lender Group to the Administrative Borrower in accordance with the terms 
hereof 
shall be deemed 
to have been 
given to each 
Borrower), (c) to 
enter into Bank 
Product Provider 
Agreements on 
behalf of 
Borrowers and 
their Subsidiaries, 
and (d) 
to take 
such action 
as the 
Administrative Borrower deems appropriate 
on its behalf to 
obtain Revolving Loans 
and Letters 
of Credit and 
to exercise such 
other powers as 
are reasonably incidental 
thereto to carry 
out the 
purposes of this Agreement. 
It is understood that the 
handling of the Loan Account 
and Collateral 
in a 
combined fashion, 
as more 
fully set 
forth herein, 
is done 
solely as 
an accommodation 
to 
Borrowers in order to 
utilize the collective 
borrowing powers of 
Borrowers in the 
most efficient 
and economical manner and at their request, and that Lender Group shall not incur liability to any 
Borrower as a result hereof. 
Each Borrower expects to derive benefit, directly or indirectly, 
from 
the handling of 
the Loan Account 
and the Collateral 
in a combined 
fashion since the 
successful 
operation of each 
Borrower is dependent 
on the continued 
successful performance of 
the integrated 
group. 
To induce the Lender Group 
to do so, and in consideration thereof, each Borrower hereby 
jointly and severally 
agrees to indemnify 
each member of 
the Lender Group 
and hold each 
member 
of the Lender 
Group harmless against 
any and all 
liability, expense, 
loss or claim 
of damage or 
injury, made against 
the Lender Group by any Borrower or by 
any third party whosoever, arising 
from or incurred by reason of (i) 
the handling of the Loan Account and 
Collateral of Borrowers as 
herein provided, 
or (ii) 
the Lender 
Group's relying 
on any 
instructions of 
the Administrative 
Borrower, except 
that Borrowers 
will have 
no liability 
to the 
relevant Agent-Related 
Person or 
Lender-Related Person under this Section 
17.13 with respect to any 
liability that has been finally 
determined by a court of competent jurisdiction to have resulted solely from 
the gross negligence 
or willful misconduct 
of such Agent-Related 
Person or 
Lender-Related Person, as 
the case may 
be. 
17.14.
 
Acknowledgement and Consent 
to Bail 
-In of 
EEA Financial Institutions
. 

Notwithstanding anything 
to the 
contrary in 
any Loan 
Document or 
in any 
other agreement, 
arrangement or understanding 
among any such 
parties, each party 
hereto acknowledges that 
any 
liability of any 
EEA Financial 
Institution arising under 
any Loan Document, 
to the extent 
such 
liability is 
unsecured, may 
be subject 
to the 
write-down and 
conversion powers 
of an 
EEA 
Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: 

 

(a)
 
the application 
of any 
Write-Down and 
Conversion Powers 
by an 
EEA 
Resolution Authority to any 
such liabilities arising hereunder 
which may be payable 
to it by any 
party hereto that is an EEA Financial Institution; and 
(b)
 
the  effects  of 
any  Bail-in  Action 
on  any  such 
liability,  including, 
if 
applicable: 
(i)
 
a reduction in full or in part or cancellation of any such liability; 
(ii)
 
a conversion of all, or 
a portion of, such liability 
into shares or other 
instruments of 
ownership in 
such EEA Financial 
Institution, its 
parent undertaking, or 
a bridge 
institution that 
may be 
issued to 
it or 
otherwise conferred 
on it, 
and that 
such shares 
or other 
instruments of 
ownership will 
be accepted 
by it 
in lieu 
of any 
rights with 
respect to 
any such 
liability under this Agreement or any other Loan Document; or 
(iii)
 
the variation 
of the 
terms of 
such liability 
in connection 
with the 
exercise of the write-down and conversion powers of any EEA Resolution Authority. 
17.15.
 
Acknowledgement Regarding Any Supported QFCs
. 
To the extent 
that the 
Loan Documents provide support, 
through a guarantee or 
otherwise, for Hedge Agreements 
or any 
other agreement or instrument that 
is a QFC (such support, 
"QFC Credit Support" and each 
such 
QFC a 
"Supported QFC"), 
the parties 
acknowledge and 
agree as 
follows with 
respect to 
the 
resolution  power  of 
the  Federal  Deposit 
Insurance  Corporation  under  the 
Federal  Deposit 
Insurance Act and 
Title II of 
the Dodd-Frank Wall 
Street Reform and 
Consumer Protection Act 
(together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in 
respect of such 
Supported QFC 
and QFC Credit 
Support (with 
the provisions 
below applicable 
notwithstanding that 
the Loan 
Documents and 
any Supported 
QFC may 
in fact 
be stated 
to be 
governed by the 
laws of the 
State of New 
York 
and/or of the 
United States or 
any other state 
of 
the United 
States). 
In the 
event a 
Covered Entity 
that is 
party to 
a Supported 
QFC (each, 
a 
"Covered Party") becomes 
subject to a 
proceeding under a 
U.S. Special Resolution 
Regime, the 
transfer of such Supported QFC and the benefit of such QFC Credit Support (and 
any interest and 
obligation in 
or under 
such Supported 
QFC and 
such QFC 
Credit Support, 
and any 
rights in 
property securing such 
Supported QFC or such 
QFC Credit Support) from 
such Covered Party 
will 
be effective to the same 
extent as the transfer 
would be effective under 
the U.S. Special Resolution 
Regime if the Supported 
QFC and such QFC Credit 
Support (and any such interest, 
obligation and 
rights in property) were governed by the 
laws of the United States or 
a state of the United States. 
In the 
event a 
Covered Party 
or a 
BHC Act 
Affiliate of 
a Covered 
Party becomes 
subject to 
a 
proceeding under a 
U.S. Special Resolution 
Regime, Default Rights 
under the Loan 
Documents 
that might 
otherwise apply 
to such 
Supported QFC 
or any 
QFC Credit 
Support that 
may be 
exercised against such Covered Party are permitted 
to be exercised to no greater extent 
than such 
Default Rights could 
be exercised under 
the U.S. Special 
Resolution Regime if 
the Supported QFC 
and the Loan Documents were 
governed by the laws of 
the United States or a 
state of the United 
States. Without limitation of the foregoing, it is understood and agreed 
that rights and remedies of 
the parties with respect 
to a Defaulting Lender 
shall in no 
event affect the rights 
of any Covered 
Party with respect to a Supported QFC or any QFC Credit Support. 

 

 

 

17.16.
 
Judgment Currency
. 
If, for the purposes of obtaining judgment in any court, 
it is necessary to convert 
a sum due hereunder or 
any other Loan Document 
in one currency into 
another currency, 
the rate 
of exchange 
used shall 
be that 
at which 
in accordance 
with normal 
banking procedures 
Agent could 
purchase the 
first currency 
with such 
other currency 
on the 
Business Day preceding that on which 
final judgment is given. 
The obligation of each Borrower 
in respect of any such sum due from it to 
Agent or any Lender hereunder or under the other Loan 
Documents shall, notwithstanding 
any judgment in 
a currency (the 
"Judgment Currency") other 
than that in which 
such sum is 
denominated in accordance with 
the applicable provisions 
of this 
Agreement (the "Agreement Currency"), 
be discharged only to the 
extent that on the 
Business Day 
following receipt by Agent or such Lender, as the case 
may be, of any sum adjudged to be so due 
in the 
Judgment Currency, 
Agent or 
such Lender, 
as the 
case may 
be, may 
in accordance 
with 
normal banking procedures purchase 
the Agreement Currency with the 
Judgment Currency. 
If the 
amount of the Agreement 
Currency so purchased is 
less than the sum 
originally due to 
Agent or 
any Lender from any 
Borrower in the Agreement 
Currency, such 
Borrower agrees, as a 
separate 
obligation and notwithstanding 
any such judgment, 
to indemnify Agent 
or such Lender, as 
the case 
may be, against such loss. 
If the amount of the Agreement Currency so purchased is greater than 
the sum originally due to 
Agent or any Lender in 
such currency, Agent or such Lender, as the case 
may be, agrees to return 
the amount of any excess 
to such Borrower (or to 
any other Person who 
may be entitled thereto under applicable law). 
 
[Signature pages to follow.] 
 

 

 
[
SIGNATURE PAGE 
TO CREDIT AGREEMENT
] 
IN WITNESS WHEREOF
, the parties 
hereto have caused this 
Agreement to be 
executed and delivered as of the date first above written. 
 
 
BORROWERS: 
CORE MOLDING TECHNOLOGIES, INC.
a Delaware corporation 
 
By: 
/s/ John P. 
Zimmer 

 
Name: John P. 
Zimmer
 
Title: Chief Financial Officer
 
 
 
 
 

 

 
[
SIGNATURE PAGE 
TO CREDIT AGREEMENT
] 
 
WELLS FARGO BANK, NATIONAL 
ASSOCIATION
, a national banking association, as 
Agent
, 
as Lead Arranger, as Book Runner
and as a 
Lender 
 
 
By: 
/s/ Matthew J. Barich 

 
Name: Matthew J. 
Barich 
 
Its Authorized Signatory

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