Document:

Exhibit

Exhibit 10.1

NEITHER THIS NOTE PURCHASE AGREEMENT NOR THE NOTES ISSUED HEREUNDER HAVE BEEN REGISTERED PURSUANT TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED PURSUANT TO ANY APPLICABLE STATE SECURITIES LAW.  THE NOTES ISSUED UNDER THIS NOTE PURCHASE AGREEMENT MAY BE RESOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT AND QUALIFIED PURSUANT TO APPLICABLE STATE SECURITIES LAWS OR IF AN EXEMPTION FROM SUCH REGISTRATION AND QUALIFICATION IS AVAILABLE, EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION, QUALIFICATION NOR EXEMPTION IS REQUIRED BY LAW.

THE INITIAL NOTES HEREUNDER HAVE BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”) FOR U.S. FEDERAL INCOME TAX PURPOSES. THE ISSUE PRICE, AMOUNT OF OID, ISSUE DATE AND YIELD TO MATURITY OF THE INITIAL NOTES MAY BE OBTAINED FROM THE ISSUER BY CONTACTING: OPTINOSE US, INC., 1020 STONY HILL ROAD, THIRD FLOOR, SUITE 300, YARDLEY, PENNSYLVANIA 19067, UNITED STATES, ATTN: Michael F. Marino, Chief Legal Officer, EMAIL: Michael.marino@optinose.com.

NOTE PURCHASE AGREEMENT
Dated as of September 12, 2019
among
OPTINOSE US, INC. 
as the Issuer,
OPTINOSE AS and OPTINOSE UK, LTD., 
as Guarantors
OPTINOSE, INC.,
as Parent and a Guarantor

The other Guarantors from time to time party hereto,
The Purchasers from time to time party hereto, 
 
and 
 
BIOPHARMA CREDIT PLC  
as Collateral Agent
Initial Notes: 
$80,000,000 Senior Secured Notes Due 2024
First Delayed Draw Notes: 
$30,000,000 Senior Secured Notes Due 2024
Second Delayed Draw Notes: 
$20,000,000 Senior Secured Notes Due 2024
Third Delayed Draw Notes: 
$20,000,000 Senior Secured Notes Due 2024

  

TABLE OF CONTENTS
	
				
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	1

	 
	1.01
	Defined Terms.
	1

	 
	1.02
	Other Interpretive Provisions.
	32

	 
	1.03
	Accounting Terms.
	32

	 
	1.04
	Times of Day.
	33

	 
	1.05
	Currency Generally
	33

	ARTICLE II THE NOTES
	33

	 
	2.01
	Authorization and Issuance of Notes.
	33

	 
	2.02
	Commitments to Purchase Delayed Draw Notes
	34

	 
	2.03
	Issuance and Sale of Securities
	35

	 
	2.04
	Notes
	36

	 
	2.05
	The Closing Date; Delayed Draw Note Closing Date
	36

	 
	2.06
	Issuance and Sale of Securities
	36

	 
	2.07
	Prepayments.
	37

	 
	2.08
	Repayment of Notes.
	38

	 
	2.09
	Interest.
	38

	 
	2.10
	Upfront Fee and Exit Fee.
	39

	 
	2.11
	Computation of Interest.
	39

	 
	2.12
	Payments Generally.
	39

	 
	2.13
	No Purchase of Notes
	40

	 
	2.14
	Sharing of Payments by Purchasers.
	40

	 
	2.15
	Defaulting Purchasers
	40

	ARTICLE III TAXES
	41

	 
	3.01
	Taxes.
	41

	 
	3.02
	Survival.
	43

	ARTICLE IV GUARANTY
	43

	 
	4.01
	The Guaranty.
	43

	 
	4.02
	Obligations Unconditional.
	43

	 
	4.03
	Reinstatement.
	44

	 
	4.04
	Certain Additional Waivers.
	44

	 
	4.05
	Remedies.
	44

	 
	4.06
	Rights of Contribution.
	45

	 
	4.07
	Guarantee of Payment; Continuing Guarantee.
	45

	ARTICLE V CONDITIONS PRECEDENT
	45

	 
	5.01
	Conditions to Effectiveness of Agreement and Purchase of Initial Notes.
	45

	 
	5.02
	Conditions to all Purchases of Notes.
	49

	 
	5.03
	Conditions to Purchase of Delayed Draw Notes
	49

	ARTICLE VI REPRESENTATIONS AND WARRANTIES
	50

	
				
	 
	6.01
	Existence, Qualification and Power.
	50

	 
	6.02
	Authorization; No Contravention.
	50

	 
	6.03
	Governmental Authorization; Other Consents.
	50

	 
	6.04
	Binding Effect.
	51

	 
	6.05
	Financial Statements; No Material Adverse Effect.
	51

	 
	6.06
	Litigation.
	51

	 
	6.07
	No Default.
	52

	 
	6.08
	Ownership of Property; Liens.
	52

	 
	6.09
	Environmental Compliance.
	52

	 
	6.10
	Insurance.
	53

	 
	6.11
	Taxes.
	53

	 
	6.12
	ERISA Compliance.
	53

	 
	6.13
	Subsidiaries and Capitalization.
	54

	 
	6.14
	Margin Regulations; Investment Company Act.
	54

	 
	6.15
	Disclosure.
	54

	 
	6.16
	Compliance with Laws.
	55

	 
	6.17
	Intellectual Property; Licenses, Etc.
	55

	 
	6.18
	Solvency.
	57

	 
	6.19
	Perfection of Security Interests in the Collateral.
	57

	 
	6.20
	Business Locations.
	57

	 
	6.21
	Sanctions Concerns; Anti-Corruption Laws; PATRIOT Act.
	58

	 
	6.22
	Limited Offering of Notes.
	58

	 
	6.23
	Registration Rights; Issuance Taxes.
	59

	 
	6.24
	Material Contracts.
	59

	 
	6.25
	Regulatory Compliance.
	59

	 
	6.26
	Cybersecurity and Data Protection.
	63

	 
	6.27
	Labor Matters.
	63

	 
	6.28
	EEA Financial Institution.
	63

	 
	6.29
	Ranking of Notes.
	63

	 
	6.30
	Guaranty by OptiNose UK
	64

	 
	6.31
	Guaranty by OptiNose AS
	64

	 
	6.32
	Existing Indebtedness
	64

	ARTICLE VI-A.  REPRESENTATIONS OF THE PURCHASERS
	64

	ARTICLE VII AFFIRMATIVE COVENANTS
	64

	 
	7.01
	Financial Statements.
	65

	 
	7.02
	Certificates; Other Information.
	65

	 
	7.03
	Notices.
	67

	 
	7.04
	Payment of Obligations.
	68

	 
	7.05
	Preservation of Existence, Etc.
	68

	 
	7.06
	Maintenance of Properties.
	69

ii

	
				
	 
	7.07
	Maintenance of Insurance.
	69

	 
	7.08
	Compliance with Laws.
	70

	 
	7.09
	Books and Records.
	70

	 
	7.10
	Inspection Rights.
	70

	 
	7.11
	Use of Proceeds.
	70

	 
	7.12
	Additional Subsidiaries.
	70

	 
	7.13
	ERISA Compliance.
	71

	 
	7.14
	Pledged Assets.
	71

	 
	7.15
	Compliance with Material Contracts.
	72

	 
	7.16
	Deposit Accounts.
	72

	 
	7.17
	Material Products and Required Permits.
	72

	 
	7.18
	Consent of Licensors.
	72

	 
	7.19
	Anti-Corruption Laws.
	72

	 
	7.20
	Post-Closing Deliverables
	73

	 
	7.21
	Further Assurances
	73

	ARTICLE VIII NEGATIVE COVENANTS
	73

	 
	8.01
	Liens.
	73

	 
	8.02
	Investments.
	75

	 
	8.03
	Indebtedness.
	77

	 
	8.04
	Fundamental Changes.
	79

	 
	8.05
	Dispositions.
	79

	 
	8.06
	Restricted Payments.
	80

	 
	8.07
	Change in Nature of Business.
	81

	 
	8.08
	Transactions with Affiliates and Insiders.
	81

	 
	8.09
	Burdensome Agreements.
	81

	 
	8.10
	Use of Proceeds.
	82

	 
	8.11
	Prepayment of Other Indebtedness,
	82

	 
	8.12
	Organization Documents; Fiscal Year; Legal Name, Jurisdiction of Formation and Form of Entity.
	82

	 
	8.13
	Ownership of Subsidiaries.
	82

	 
	8.14
	Sale Leasebacks.
	82

	 
	8.15
	Sanctions; Anti-Corruption Laws.
	82

	 
	8.16
	Financial Covenants.
	83

	ARTICLE IX EVENTS OF DEFAULT AND REMEDIES
	84

	 
	9.01
	Events of Default.
	84

	 
	9.02
	Remedies Upon Event of Default.
	86

	 
	9.03
	Application of Funds.
	87

	ARTICLE X OTHER PROVISIONS
	88

	 
	10.01
	Increased Costs, Etc.
	88

	 
	10.02
	Increased Capital Cost.
	88

iii

	
				
	 
	10.03
	[Reserved].
	89

	 
	10.04
	Mitigation of Obligations; Replacement of Purchasers
	89

	ARTICLE XI COLLATERAL AGENT
	89

	 
	11.01
	Appointment and Authority.
	89

	 
	11.02
	Rights as a Purchaser.
	90

	 
	11.03
	Exculpatory Provisions.
	90

	 
	11.04
	Reliance by Collateral Agent.
	91

	 
	11.05
	Delegation of Duties.
	91

	 
	11.06
	Resignation of Collateral Agent.
	91

	 
	11.07
	Non-Reliance on Collateral Agent and Other Purchasers.
	92

	 
	11.08
	Collateral Agent May File Proofs of Claim.
	92

	 
	11.09
	Collateral and Guaranty Matters.
	92

	ARTICLE XII MISCELLANEOUS
	93

	 
	12.01
	Amendments, Etc.
	93

	 
	12.02
	Notices and Other Communications; Facsimile Copies.
	95

	 
	12.03
	No Waiver; Cumulative Remedies; Enforcement.
	96

	 
	12.04
	Expenses; Indemnity; and Damage Waiver.
	96

	 
	12.05
	Marshalling; Payments Set Aside.
	98

	 
	12.06
	Successors and Assigns; Transfers.
	98

	 
	12.07
	Treatment of Certain Information; Confidentiality.
	102

	 
	12.08
	Set-off.
	103

	 
	12.09
	Interest Rate Limitation.
	103

	 
	12.10
	Counterparts; Integration; Effectiveness.
	103

	 
	12.11
	Survival of Representations and Warranties.
	103

	 
	12.12
	Severability.
	104

	 
	12.13
	Replacement of Purchasers.
	104

	 
	12.14
	Governing Law; Jurisdiction; Etc.
	105

	 
	12.15
	Waiver of Right to Trial by Jury.
	106

	 
	12.16
	Judgment Currency.
	106

	 
	12.17
	Electronic Execution of Assignments and Certain Other Documents.
	107

	 
	12.18
	USA PATRIOT Act.
	107

	 
	12.19
	No Advisory or Fiduciary Relationship.
	107

	 
	12.20
	Acknowledgement and Consent to Bail-In of EEA Financial Institutions.
	107

	 
	12.21
	Intercreditor Agreement.
	107

iv

SCHEDULES
		
	II
	Notes, Purchase Prices and Delayed Draw Note Commitments

		
	12.02
	Certain Addresses for Notices

EXHIBITS
		
	A-1
	Form of Initial Note

		
	A-2
	Form of First Delayed Draw Note

		
	A-3
	Form of Second Delayed Draw Note

		
	A-4
	Form of Third Delayed Draw Note

		
	B
	Form of Joinder Agreement

		
	C
	Form of Assignment and Assumption

		
	D
	Form of Compliance Certificate

v

NOTE PURCHASE AGREEMENT
This NOTE PURCHASE AGREEMENT is entered into as of September 12, 2019 among OPTINOSE US, INC., a Delaware corporation (the “Issuer”), OPTINOSE AS, a Norwegian private limited liability company with Norwegian business registration number 982 483 131 (the “Norwegian Guarantor”), OPTINOSE, INC., a Delaware corporation (the “Parent”), OPTINOSE UK LIMITED, a limited liability company formed under the laws of England and Wales (the “UK Guarantor”), the other Guarantors (defined herein) from time to time party hereto, the Purchasers (defined herein) from time to time party hereto and BIOPHARMA CREDIT PLC, a public limited company incorporated under the laws of England and Wales, as Collateral Agent.  
The Issuer has proposed to issue and sell, on the Closing Date, to the Purchasers and the Purchasers have agreed to purchase, the Senior Secured Notes due 2024, in an aggregate original principal amount of $80,000,000, in each case in the amounts and for the consideration set forth on Schedule II and upon the terms and conditions hereinafter provided.  In addition, the Issuer has proposed to issue and sell to the Purchasers and the Purchasers have agreed to purchase, additional Senior Secured Notes due 2024, (i) on the First Delayed Draw Note Closing Date, in the aggregate original principal amount of $30,000,000, (ii) on the Second Delayed Draw Note Closing Date, in the aggregate original principal amount of $20,000,000 and (iii) on the Third Delayed Draw Note Closing Date, in the aggregate original principal amount of $20,000,000, in each case of clauses (i) through (iii) above, for the consideration and upon the terms and conditions hereinafter provided.
In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

ARTICLE I 
 
DEFINITIONS AND ACCOUNTING TERMS

1.01    Defined Terms.
As used in this Agreement, the following terms shall have the meanings set forth below:
“Acquisition” means, with respect to any Person, the acquisition by such Person, in a single transaction or in a series of related transactions, of (a) assets of another person which constitute all or substantially all of the assets of such Person, or of any division, line of business or other business unit of such Person, including any Acquired Product or (b) at least a majority of the Voting Stock of another Person, in each case whether or not involving a merger, amalgamation or consolidation with such other Person and whether for cash, property, services, assumption of Indebtedness, securities or otherwise.
“Acquired Product” means any Product of the type described in clause (b) of the definition thereof and/or related IP Rights acquired or licensed by a Note Party or any of its Wholly-Owned Subsidiaries from a Third Party to facilitate the advertisement, development, importing, manufacturing, marketing, offering for sale, promotion, sale, testing, use or distribution of such Product by a Note Party or a Wholly-Owned Subsidiary.
“Act” has the meaning set forth in Section 12.18.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.  No Person will be deemed to be an Affiliate of a Permitted Holder solely because such Person is a portfolio company 

1
  

of a Permitted Holder.  In no event shall the Collateral Agent or any Purchaser be deemed to be an Affiliate of Issuer, Parent or any of their respective Subsidiaries or any Permitted Holder.
“Agreement” means this Note Purchase Agreement, as may be amended or modified from time to time in accordance with the terms hereof.
“Amortization Threshold” means, for any four-quarter period ending on the date set forth in the table below, the corresponding amount set forth opposite such date: 
	
				
	Four-Quarter Period Ending
	Amortization Threshold
	

	9/30/2022
	

	$166,600,000
	

	12/31/2022
	

	$191,800,000
	

	3/31/2023
	

	$212,100,000
	

	6/30/2023
	

	$235,200,000
	

	9/30/2023
	

	$256,200,000
	

	12/31/2023
	

	$276,500,000
	

	3/31/2024
	

	$276,500,000
	

	6/30/2024
	

	$276,500,000
	

“Approved Fund” means any Fund that is administered or managed by (a) a Purchaser, (b) an Affiliate of a Purchaser or (c) an entity or an Affiliate of an entity that administers or manages a Purchaser.  For purposes of clarity, any Fund with respect to which Pharmakon Advisors, LP is the investment manager shall be deemed to be an Approved Fund for all purposes hereunder
“Assignment and Assumption” means an assignment and assumption agreement entered into by a Purchaser and an Eligible Assignee (with the consent of any party whose consent is required by Section 12.06) to which a Delayed Draw Note Commitment or Note is being transferred, in substantially the form of Exhibit C hereto.
“Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease of any Person, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease and (c) in respect of any Securitization Transaction of any Person, the outstanding principal amount of such financing, after taking into account reserve accounts and making appropriate adjustments, determined by the Required Purchasers in their reasonable judgment.
“Audited Financial Statements” means the audited consolidated balance sheet of Parent and its Subsidiaries for the fiscal year ended December 31, 2018, and the related consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of Parent and its Subsidiaries, including the notes thereto, audited by independent public accountants of recognized national standing and prepared in conformity with GAAP. 
“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.
“Board of Directors” means (a) with respect to a corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board, (b) with respect to a partnership, the Board of Directors of the general partner of the partnership, (c) with respect to a limited liability company, the managing 

2
  

member or members or any controlling committee of managing members thereof, (d) with respect to a limited liability company registered in Norway, the board of directors of that company and (e) with respect to any other Person, the board or committee of such Person serving a similar function.
“Borrowing Resolutions” means, with respect to any Note Party, those resolutions adopted by such Note Party’s Board of Directors approving this Agreement and the other Note Documents to which such Note Party is a party and the transactions contemplated thereby, together with a certificate executed by its Secretary or other Responsible Officer on behalf of such Note Party certifying that (a) such Note Party has the authority to execute, deliver, and perform its obligations under each of the Note Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true and correct copy of the resolutions then in full force and effect authorizing and ratifying the execution and delivery by such Note Party of, and the performance by such Note Party of its obligations under, the Note Documents to which it is a party, (c) the name(s) and title(s) of the officer(s) of such Note Party authorized to execute the Note Documents to which such Note Party is a party on behalf of such Note Party, together with a sample of the true signature(s) of such officer(s), and (d) that the Purchasers may conclusively rely on such certificate with respect to the authority of such officer(s) unless and until such Note Party shall have delivered to the Purchasers a further certificate canceling or amending such prior certificate.
“Bringdown Date” means each Delayed Draw Note Closing Date, any date on which a Permitted Acquisition is consummated and any other date after the Closing Date when the representations and warranties are required to be made by the Note Parties (including, to the extent set forth therein, any amendment hereto).
“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, New York, New York, London, England or Grand Cayman, Cayman Islands.
“Businesses” means, at any time, a collective reference to the businesses operated by Parent and its Subsidiaries at such time.
“Capital Lease” means, subject to Section 1.03(b), as applied to any Person, any lease of any property by that Person as lessee which, in accordance with GAAP, is required to be accounted for as a capital lease on the balance sheet of that Person.
“Cash Equivalents” means, as at any date, (a) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided, that, the full faith and credit of the United States is pledged in support thereof) having maturities of not more than twelve months from the date of acquisition, (b) Dollar denominated time deposits and certificates of deposit of (i) any United States commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (ii) any bank whose short-term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 270 days from the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any commercial paper or fixed or variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing within twelve months of the date of acquisition, (d) repurchase agreements entered into by any Person with a bank or trust company (including any of the Purchasers) or recognized securities dealer having capital and surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the United States in which such Person shall have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase thereof, a fair market value of at least 100% of the amount of the repurchase obligations, (e) Investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act of 1940 which are administered by reputable financial institutions having capital of at least $500,000,000 and the portfolios of which are limited to Investments of the character described in the foregoing clauses (a) through (d), (f) other short term liquid investments approved in writing by the Collateral Agent (such approval not to be unreasonably withheld or delayed), and (g) instruments 

3
  

equivalent to those referred to in clauses (a) through (f) above denominated in euro or any other foreign currency comparable in credit quality and tenor to those referred to above and customarily used by corporations for cash management purposes in any jurisdiction outside the United States to the extent reasonably required in connection with any business conducted by Parent or any of its Subsidiaries organized in such jurisdiction.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
“Change of Control” means the occurrence of any of the following events:
(a)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), other than a Permitted Holder, becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of Equity Interests representing 40% or more of the aggregate ordinary voting power in the election of the Board of Directors of Parent represented by the issued and outstanding Equity Interests of Parent on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or
(b)    during any period of twelve (12) consecutive months, a majority of the members of the Board of Directors of Parent cease to be composed of individuals (i) who were members of that Board of Directors on the first day of such period, (ii) whose election, appointment or nomination to that Board of Directors was approved by individuals referred to in clause (i) above constituting at the time of such election, appointment or nomination at least a majority of that Board of Directors or (iii) whose election, appointment or nomination to that Board of Directors was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election, appointment or nomination at least a majority of that Board of Directors; or
(c)    any “Change of Control” (or any comparable term) shall occur under any document, instrument or other agreement evidencing any Indebtedness with an aggregate principal amount in excess of the Threshold Amount; or
(d)    Parent shall cease to directly or indirectly own, beneficially and of record (other than director’s qualifying shares of investments by foreign nationals to the extent mandated by applicable Laws or regulations), 100% of the issued and outstanding Equity Interests of Issuer or the Norwegian Guarantor. 
“Closing Date” means the date hereof.
“Collateral” means a collective reference to all real and personal property with respect to which perfected Liens in favor of the Collateral Agent, for the benefit of the Purchasers, are purported to be granted pursuant to and in accordance with the terms of the Collateral Documents.

4
  

“Collateral Access Agreement” means an agreement in form and substance reasonably satisfactory to the Collateral Agent pursuant to which a lessor of real property on which Collateral is stored or otherwise located, or a warehouseman, processor or other bailee of inventory or other property owned by any Note Party, in each case in an aggregate amount in excess of $1,000,000, acknowledges the Liens of the Collateral Agent and waives (or, if approved by the Collateral Agent, subordinates) any Liens held by such Person on such property, and permits the Collateral Agent reasonable access to any Collateral stored or otherwise located thereon. 
“Collateral Agent” means BioPharma Credit PLC, in its capacity as collateral agent under any of the Note Documents and not in any other capacity thereunder, or any successor collateral agent.
“Collateral Documents” means a collective reference to the Security Agreement, the Pledge Agreement, the Deposit Account Control Agreements, the Collateral Questionnaires, the Collateral Access Agreements, the Norwegian Security Documents, the English Security Documents, the Real Estate Security Documents and other security documents as may be executed and delivered by the Note Parties pursuant to the terms of Section 7.14, pursuant to and in accordance with which first priority, perfected Liens are purported to be granted in favor of the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties.
“Collateral Questionnaires” means those certain collateral questionnaires or perfection certificates, each in form and substance reasonably satisfactory to Collateral Agent, executed by the Issuer and each Guarantor as of the Closing Date.
“Competitor” means, at any time of determination, any Person that is an operating company directly and primarily engaged in the same or substantially the same line of business as Parent and its Subsidiaries. 
“Compliance Certificate” means a certificate substantially in the form of Exhibit D.
“Confidential Information” means all non-public information, whether written, oral or in any electronic, visual or other medium, that is the subject of reasonable efforts to keep it confidential and that is owned by Parent or any Subsidiary or that Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and that is used by Parent or any other Person to manufacture, develop, import, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product.
“Consolidated Debt” means, for any date, for Parent and its Subsidiaries on a consolidated basis, the total amount of Funded Indebtedness (including the Notes) outstanding as of such date. 
“Consolidated EBITDA” shall mean, for Parent and its Subsidiaries, for any period, an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) solely to the extent deducted (or included, with respect to gains) in determining Consolidated Net Income for such period, and without duplication, (A) Consolidated Interest Expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation and amortization determined on a consolidated basis in accordance with GAAP, (D) non-cash charges and expenses related to stock option awards or other equity compensation, (E) adjustments relating to purchase price allocation accounting with any future acquisitions or dispositions, (F) any unrealized losses (or minus any such gains) in respect of Swap Contracts, (G) any foreign currency translation losses (or minus any such gains), (H) accruals, payments, fees and expenses (including legal, tax and structuring fees and expenses) in connection with (x) the execution and delivery of, and the performance of its obligations under, this Agreement and the other Note Documents by the Note Parties, the issuance of the Notes and the granting of the Liens under the Collateral Documents and (y) any Permitted Acquisition or Investment and, to the extent permitted hereunder, issuances or incurrences of Indebtedness, issuances of Equity Interests, Dispositions, consolidations, recapitalizations or refinancing transactions and modifications of Indebtedness, whether or not consummated, and the aggregate amount under this clause (H) shall not exceed $1,000,000 in any four fiscal quarter period, (I) any net losses (or minus any net gains) attributable to the early extinguishment or conversion of Indebtedness, and (J) all other non-cash charges approved by the Required Purchasers in their sole discretion, minus (iii) sales, development or other milestone payments and upfront payments (other than, 

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for the avoidance of doubt, any royalty payments) made to Parent or any of its Subsidiaries under any licensing or similar transactions, in each case for such period and determined on a consolidated basis in accordance with GAAP.  
“Consolidated Interest Expense” shall mean, for Parent and its Subsidiaries, for any period, the consolidated total interest expense (including that portion attributable to capital leases in accordance with GAAP and capitalized interest), in each case whether or not paid in cash during such period.
“Consolidated Liquidity” means, on any date of determination, the sum of the unrestricted cash and Cash Equivalents maintained in Deposit Accounts with respect to which Deposit Account Control Agreements are in effect of Parent and its Subsidiaries that are Note Parties on a consolidated basis.
“Consolidated Net Income” shall mean, for Parent and its Subsidiaries for any period, the net income (or loss) of Parent and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise included therein) (i) extraordinary or non-recurring gains or losses (any losses that are in excess of $1,000,000 in the aggregate for any such period are to be mutually agreed upon by the Required Purchasers and Parent), (ii) any non-cash gains or losses attributable to write-ups or write-downs of assets, (iii) the net income (or loss) of any other Person that is not a Subsidiary (or is accounted for by the equity method of accounting) except to the extent of actual payment of cash dividends or distributions by such Person to Parent or one of its Subsidiaries, (iv) any income (or loss) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with Parent or any Subsidiary on the date that such Person’s assets are acquired by Parent or any Subsidiary, (v) any gains or losses from discontinued operations, (vi) any gains or losses from dispositions and (vii) the income (or loss) of any Subsidiary that is not a Note Party to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of the income resulting from such revenues is not at the time permitted by operation of the terms of its Organization Documents or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary.
“Consolidated Net Sales” means, solely with respect to XHANCE as of any date of determination, (a) the “net sales” (or substantially similar term) of Parent and its Subsidiaries of such Product for the period in question occurring either prior to or after such date, as the context dictates, determined on a consolidated basis in accordance with GAAP as set forth in Parent’s financial statements or as otherwise evidenced in a manner reasonably satisfactory to the Required Purchasers, plus (b) sales-based royalty payments received by the Note Parties from a Permitted License of XHANCE (excluding, for purposes of clarity, any (i) upfront or milestone payments received by any Note Party therefrom, (ii) advancements, payments or reimbursements of expenses of any Note Party relating thereto, and (iii) any other non-sales based revenue or proceeds received by the Note Parties therefrom). 
“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.  Without limiting the generality of the foregoing, solely for purposes of Section 8.08, a Person shall be deemed to be Controlled by another Person if such other Person possesses, directly or indirectly, power to vote 20% or more of the securities having ordinary voting power for the election of directors, managing general partners or the equivalent.
“Controlled Investment Affiliate” means, with respect to any Person, any fund or investment vehicle that (a) is organized for the purposes of making equity or debt investments in one or more companies and (b) is controlled by, or under common control with, such Person.  For purposes of this definition “control” means the power to direct or cause the direction of management and policies of a Person, whether by contract or otherwise.  For purposes of clarity, any fund or other investment vehicle with respect to which Pharmakon Advisors, LP is the 

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investment manager shall be deemed to be a Controlled Investment Affiliate of Pharmakon Advisors, LP for all purposes hereunder.
“Copyright License” means any agreement, whether written or oral, providing for the grant of any right to use any Work under any Copyright.
“Copyrights” means (a) all proprietary rights afforded Works pursuant to Title 17 of the United States Code, including, without limitation, all rights in mask works, copyrights and original designs, and all proprietary rights afforded such Works by other countries for the full term thereof (and including all rights accruing by virtue of bilateral or international treaties and conventions thereto), whether registered or unregistered, including, but not limited to, all applications for registration, renewals, extensions, reversions or restorations thereof now or hereafter provided for by law and all rights to make applications for registrations and recordations, regardless of the medium of fixation or means of expression, which are owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and which are used by Parent or any other Person to manufacture, develop, import, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product; and (b) all copyright rights under the copyright laws of the United States and all other countries for the full term thereof (and including all rights accruing by virtue of bilateral or international copyright treaties and conventions), whether registered or unregistered, including, but not limited to, all applications for registration, renewals, extensions, reversions or restorations of copyrights now or hereafter provided for by law and all rights to make applications for copyright registrations and recordations, regardless of the medium of fixation or means of expression, which are owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and which are used by Parent or any other Person to manufacture, develop, import, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product.
“CSA” means the Federal Controlled Substances Act, as amended, 21 U.S.C. Section 801 et seq. and all regulations promulgated thereunder.
“Current Market” means, as of any date of determination, the Principal Market on which the shares of common stock of Parent are then listed, traded and quoted.
“Data Protection Laws” means any and all applicable foreign or domestic, statutes, ordinances, orders, rules, regulations, judgments, Permits, or any other requirements of Governmental Authorities relating to privacy or to the security, notification of breaches, or confidentiality of personal data (including individually identifiable information) or other sensitive information, including the Health Insurance Portability and Accountability Act of 1996, the Health Information Technology for Economic and Clinical Health Act of 2009, and Section 5 of the Federal Trade Commission Act (15 U.S.C. § 45), as applicable.
“DEA” means the Drug Enforcement Administration of the United States of America or any successor entity thereto.
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.
“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.
“Default Rate” means an interest rate equal to the Pre-Default Rate plus three percent (3.00%) per annum, to the fullest extent permitted by applicable Laws.
“Defaulting Purchaser” means, subject to Section 2.15(b), any Purchaser that (a) has failed to (i) fund all or any portion of its funding obligations hereunder within five (5) Business Days of the date required to be funded by 

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it hereunder (provided, that, such Purchaser shall cease to be a Defaulting Purchaser pursuant to this clause (a) upon such Purchaser actually funding its funding obligations), (b) has notified the Issuer or the Collateral Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (provided, that, such Purchaser shall cease to be a Defaulting Purchaser pursuant to this clause (b) upon written notice to the Issuer and the Collateral Agent that it intends to comply with its funding obligations), (c) has failed, within five (5) Business Days after written request by the Collateral Agent or the Issuer, to confirm in writing to the Collateral Agent and the Issuer that it will comply with its prospective funding obligations hereunder (provided, that, such Purchaser shall cease to be a Defaulting Purchaser pursuant to this clause (c) upon receipt of such written confirmation by the Collateral Agent and the Issuer), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (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 Purchaser shall not be a Defaulting Purchaser solely by virtue of the ownership or acquisition of any Equity Interest in that Purchaser 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 Purchaser 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 Purchaser (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Purchaser.  Any determination by the Collateral Agent that a Purchaser is a Defaulting Purchaser under any one or more of clauses (a) through (d) above, and the effective date of such status, shall be conclusive and binding absent manifest error, and such Purchaser shall be deemed to be a Defaulting Purchaser (subject to Section 2.15(b)) as of the date established therefor by the Collateral Agent in a written notice of such determination, which shall be delivered by the Collateral Agent to the Issuer and each other Purchaser promptly following such determination.  Notwithstanding anything to the contrary in the foregoing or herein, if all Purchasers consist of BioPharma Credit PLC, BioPharma Credit Investments V (Master), LP, Pharmakon Advisors, LP and/or any of their respective Controlled Investment Affiliates, and each of such Purchasers would be a Defaulting Purchaser, then no such Purchaser shall be a Defaulting Purchaser hereunder and the provisions relating to “Defaulting Purchasers” shall have no force or effect. 
“Delayed Draw Note” and “Delayed Draw Notes” means the First Delayed Draw Notes, the Second Delayed Draw Notes and the Third Delayed Draw Notes, individually, collectively or in any combination, as appropriate.
“Delayed Draw Note Closing Date” means the First Delayed Draw Note Closing Date, the Second Delayed Draw Closing Date or the Third Delayed Draw Closing Date, as the context dictates.
“Delayed Draw Note Commitment” means for each Purchaser, the amount set forth opposite such Purchaser’s name on Schedule II with respect to each of the First Delayed Draw Notes, Second Delayed Draw Notes and Third Delayed Draw Notes, as the same may be terminated pursuant to the terms of this Agreement or adjusted from time to time as a result of assignments to or from such Purchaser.
“Deposit Account” means a “deposit account” (as defined in Article 9 of the Uniform Commercial Code), investment account (including securities accounts) or other account in which funds are held or invested to or for the credit or account of any Note Party.
“Deposit Account Control Agreement” means (a) in respect of any United States Deposit Account, any account control agreement by and among a Note Party, the applicable depository bank (or securities intermediary, as the case may be) and the Collateral Agent, (b) in respect of any Norwegian Deposit Account, a pledge agreement in respect of such Deposit Account, perfected by notification to the relevant Deposit Account manager, and (c) in respect of any Deposit Account outside the United States or Norway, any similar agreement, instrument or document required or customarily delivered under the laws of such jurisdiction to perfect a security interest in Deposit Accounts in such jurisdiction, in each case in form and substance reasonably satisfactory to the Required Purchasers.

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“Designated Jurisdiction” means any country or territory to the extent that such country or territory is the subject of any comprehensive Sanction that is territorial in nature (for avoidance of doubt, as of the Closing Date, Cuba, Iran, North Korea, Syria and the Crimea region).
“Disclosure Letter” means that certain disclosure letter dated as of the Closing Date containing certain schedules delivered by the Note Parties to the Collateral Agent and the Purchasers. 
“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any Sale and Leaseback Transaction or any issuance by any Subsidiary of its Equity Interests) of any property by any Note Party or any Subsidiary of Parent, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith, but excluding the following (collectively, the “Permitted Transfers”): (a) the sale, lease, license, transfer or other disposition of inventory in the ordinary course of business, (b) the sale, lease, license, transfer or other disposition in the ordinary course of business of surplus, obsolete or worn out property no longer used or useful in the conduct of business of any Note Party and its Subsidiaries, (c) any sale, lease, license, transfer or other disposition of property to any Note Party or any Subsidiary; provided, that, if the transferor of such property is a Note Party, (i) the transferee thereof must be a Note Party or (ii) to the extent such transaction constitutes an Investment, such transaction is permitted under Section 8.02, (d) the abandonment or other disposition of IP Rights that are not material and are no longer used or useful in any material respect in the business of Parent and its Subsidiaries, (e) licenses, sublicenses, leases or subleases (other than relating to intellectual property) granted to third parties in the ordinary course of business and not interfering with the Businesses, (f) any Involuntary Disposition, (g) dispositions of cash and Cash Equivalents in the ordinary course of business or otherwise in transactions permitted hereunder, (h) dispositions consisting of the sale, transfer, assignment or other disposition of unpaid and overdue accounts receivable in connection with the collection, compromise or settlement thereof in the ordinary course of business and not as part of a financing transaction, (i) Permitted Licenses, (j) the sale, transfer, issuance or other disposition of a de minimis number of shares of the Equity Interests of a Foreign Subsidiary of a Note Party in order to qualify members of the governing body of such Foreign Subsidiary if required by applicable Law, (k) the sale of any Product by a Note Party or any of its Subsidiaries to any Subsidiary or a Note Party, as applicable, or to end users (through wholesalers or other typical sales channels) or to distributors in the ordinary course of business, (l) any disposition or other transfer of any Product, without the payment or provision of consideration to any Note Party or any of its Subsidiaries for such Product (other than expense reimbursement), reasonably necessary for the conduct of any then on-going clinical trial or other development or regulatory activities associated with such Product, (m) any disposition or other transfer of any Product as promotional support in the ordinary course of business or in consideration of services in the ordinary course of business, (n) to the extent constituting a sale, assignment, conveyance, transfer or other disposition hereunder, any transaction permitted by Section 8.04, Liens permitted by Section 8.01, Investments permitted by Section 8.02 (c), (d), (g), (l) or (p), and Restricted Payments permitted by Section 8.06(a), (b) or (g), (o) the termination of Swap Contracts permitted hereunder, and (p) a disposition of property to the extent that (A) such property is exchanged for credit against the purchase price of similar replacement property or (B) the proceeds (determined on an after-tax basis) of such disposition are applied to the purchase price of such replacement. 
“Disqualified Capital Stock” means any Equity Interest which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof, in whole or in part, prior to the ninety-first (91st) day after the Maturity Date (other than (x) settlements, conversions, redemptions and payments made solely in the form of Qualified Capital Stock and (y) cash in lieu of fractional shares), (b) requires the payment of any cash dividends at any time prior to the ninety-first (91st) day after the Maturity Date (other than the payment of cash in lieu of fractional shares), (c) contains any repurchase obligation at the option of the holder thereof, in whole or in part, which may come into effect prior to payment in full of all Obligations (other than (x) any obligation for repurchases solely made with Qualified Capital Stock and (y) cash in lieu of fractional shares), or (d) is convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests referred to in clause (a), (b) or (c) above, in each case at any time prior to the ninety-first (91st) 

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day after the Maturity Date ; provided, that, any Equity Interests that would not constitute Disqualified Capital Stock but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests are convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem or repurchase such Equity Interests upon the occurrence of a change in control occurring prior to the ninety-first (91st) day after the Maturity Date shall not constitute Disqualified Capital Stock if such Equity Interests provide that the issuer thereof will not redeem or repurchase any such Equity Interests pursuant to such provisions prior to the payment in full of all Obligations (other than contingent indemnification obligations for which no claim has been asserted) under the Note Documents; provided, further, that, if such Equity Interests are issued pursuant to a plan for the benefit of employees of Parent or any Subsidiary or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Capital Stock solely because such employee may deliver such Equity Interests to Parent and its Subsidiaries (or Parent or such Subsidiary withholds such Equity Interests) in satisfaction of any exercise price or tax withholding obligations with respect to such Equity Interests.
“Dollar” and “$” mean lawful money of the United States.
“Domain Names” means all domain names and URLs that are registered and/or owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Domestic Subsidiary” means any Subsidiary that is organized under the laws of any state of the United States or the District of Columbia.
“Drug Application” means (a) New Drug Application (NDA) or an Abbreviated New Drug Application (ANDA) as those terms are defined in section 505 of the FDCA, or (b) a Biologics License Application (BLA) (including a biosimilar application), as that term is defined in section 351 of the PHSA, for any Product, as appropriate, in each case of Parent or any Subsidiary.
“Earn Out Obligations” means, with respect to an Acquisition, all obligations of Parent or any Subsidiary to make earn out or other contingency payments (including purchase price adjustments, non-competition and consulting agreements, or other indemnity obligations) pursuant to the documentation relating to such Acquisition.  For purposes of determining the aggregate consideration paid for an Acquisition at the time of such Acquisition, the amount of any Earn Out Obligations shall be deemed to be the maximum amount of the earn-out payments in respect thereof as specified in the documents relating to such Acquisition, excluding any such payments, the amount of which is not upon achieving a contingency upon which payment is conditioned, a fixed amount or a range of fixed amounts, but is determined based on a percentage of revenue or sales or similar metric (e.g. a royalty).  For purposes of determining the amount of any Earn Out Obligations to be included in the definition of Funded Indebtedness, the amount of Earn Out Obligations shall be deemed to be the aggregate liability in respect thereof, as determined in accordance with GAAP.
“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, Norway, and the United Kingdom (if and to the extent it remains a member of the European Economic Area after it has ceased to be a member state of the European Union).
“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.

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“Eligible Assets” means assets (other than current assets) that are used or useful in any line of business of Parent and its Subsidiaries not prohibited by Section 8.07. 
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 12.06 (subject to such consents, if any, as may be required under Section 12.06).
“English Debenture” means the English law governed debenture dated on or about the date hereof between Norwegian Guarantor and the UK Guarantor, as chargors, and the Collateral Agent creating: (i) a fixed and floating charge over all the present and future assets of the UK Guarantor; and (ii) security over the shares held by Norwegian Guarantor in the UK Guarantor.
“English Security Documents” means (a) the English Debenture; and (b) any other security documents governed by English law as may be executed and delivered by any Note Parties pursuant to the terms of Section 7.14 or otherwise designated as Collateral Documents.
“ENT Field” means the diagnosis, prevention, mitigation and treatment of any disease or condition primarily affecting the ear, nose and/or throat, as promoted to ear, nose and throat specialists (for the avoidance of doubt, including allergy specialists) other than primary care physicians.
“Environmental Laws” means any and all federal, state, local, foreign and other applicable statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of Parent, any other Note Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity Interests”  means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member, membership or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination; provided that Equity Interests shall not include any Permitted Convertible Bond Indebtedness.
“ERISA” means the Employee Retirement Income Security Act of 1974.
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with Parent within the meaning of Section 414(b) or (c) of the Internal Revenue Code (and Sections 414(m) and (o) of the Internal Revenue Code for purposes of provisions relating to Section 412 of the Internal Revenue Code).
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan, (b) the withdrawal of Parent or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, (c) a complete or partial withdrawal by Parent or any 

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ERISA Affiliate from a Multiemployer Plan, (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a termination under Sections 4041 or 4041A of ERISA, (e) the institution by the PBGC of proceedings to terminate a Pension Plan, (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan, (g) the determination that any Pension Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Internal Revenue Code or Sections 303, 304 and 305 of ERISA, or (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon Parent or any ERISA Affiliate.
“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” means each Event of Default set forth in Section 9.01(a) through (o).
“Exchange Act” means the Securities Exchange Act of 1934.
“Excluded Account” means any Deposit Account: (i) used exclusively for trust, payroll, payroll taxes or other employee wage or employee benefit payments to or for the benefit of any Note Party’s employees; (ii) that is a zero balance account (including any such account where payments pursuant to Medicaid, Medicare, TRICARE or other state or federal healthcare payor programs are deposited); (iii) which constitutes cash collateral in respect of a Permitted Lien of the type described in any of Sections 8.01 (e), (f), (p), (r), (u), (v) or (w); or (iv) in which the amount on deposit, together with any other Deposit Account that constitutes an “Excluded Account” in reliance on this clause (iv),does not exceed $100,000 in the aggregate for all such accounts at any time. 
“Excluded Property” means, with respect to any Note Party, including any Person that becomes a Note Party after the Closing Date as contemplated by Section 7.12:
(a)    any owned or leased real or personal property which is located outside of the United States and the jurisdiction where such Note Party is organized unless reasonably requested by the Collateral Agent or Required Purchasers (other than, for the avoidance of doubt, any Equity Interests of a Foreign Subsidiary required to be pledged pursuant to Section 7.14);
(b)    any personal property located in the United States (including motor vehicles) in respect of which perfection of a Lien is not either (x) governed by the Uniform Commercial Code or (y) effected by appropriate evidence of the Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office, unless requested by the Collateral Agent or the Required Purchasers;
(c)    any property which, subject to the terms of Section 8.09, is subject to a Lien of the type described in Section 8.01(i) pursuant to documents which prohibit such Note Party from granting any other Liens in such property;
(d)    (i) any leasehold interest of any Note Party in real property and (ii) any fee owned real property of any Note Party with a fair market value of less than $1,000,000;
(e)    any United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal law; provided, that upon submission and acceptance by the United States Patent and Trademark Office of a statement of use or an amendment to allege use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application shall no longer constitute “Excluded Property” and shall be deemed to be Collateral for all purposes under the Note Documents;

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(f)    any general intangible, permit, lease, license, contract or other instrument of a Note Party if the grant of a security interest therein in the manner contemplated by the Collateral Documents, under the terms thereof or under applicable Law or regulation, is prohibited and would result in the termination thereof or give the other parties thereto the right to terminate, accelerate or otherwise alter such Note Party’s rights, titles and interests therein, thereto and thereunder (including upon the giving of notice or lapse of time or both); provided, that, (x) any such limitation described in this clause (f) on the security interests granted in such general intangible, permit, lease, license, contract or other instrument under the Collateral Documents shall only be applicable hereunder if any such prohibition would not be rendered ineffective pursuant to the Uniform Commercial Code or any other applicable Law or principles of equity, and (y) immediately upon the ineffectiveness, lapse, termination, unenforceability or elimination of any such Law or regulation, prohibition or requirement for consent, approval or waiver, if and to the extent sufficient to permit any such general intangible, permit, lease, license, contract or other instrument to become Collateral, or the obtaining of any such consent, approval or waiver, a security interest therein shall be automatically and simultaneously granted under the applicable Collateral Document and such general intangible, permit, lease, license, contract or other instrument shall no longer constitute “Excluded Property” and shall be deemed to be Collateral for all purposes under the Note Documents;
(g)    any other assets with respect to which the granting of security interests therein would be prohibited by applicable Law or regulation (other than to the extent that any such Law, regulation or prohibition would be rendered ineffective pursuant to the Uniform Commercial Code or any other applicable Law or principles of equity) or would require the consent, approval or waiver of any Governmental Authority (after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code or other applicable Law or principles of equity); provided, that, immediately upon the ineffectiveness, lapse, termination, unenforceability or elimination of any such Law, regulation, prohibition or requirement, if and to the extent sufficient to permit any such assets to become Collateral, or the obtaining of any such consent, approval or waiver, a security interest therein shall be automatically and simultaneously granted under the applicable Collateral Document and such assets shall no longer constitute “Excluded Property” and shall be deemed to be Collateral for all purposes under the Note Documents;
(h)    any real or personal property reasonably identified by Parent to the Collateral Agent as to which, after reasonable and good faith discussion between the Collateral Agent and Parent, the Collateral Agent and Parent reasonably agree in writing that the costs or other consequences (including adverse tax consequences) of obtaining a security interest therein or the perfection thereof are excessive in view of the benefits to be obtained by the Purchasers therefrom;
(i)    Equity Interests in any Person that is not a Subsidiary to the extent the pledge thereof is not permitted by the terms of such Person’s Organization Documents or any agreement governing Indebtedness of such Person, solely if such Person’s business and operations do not relate to XHANCE or the ENT Field;
(j)    any Excluded Account described in clauses (i), (ii) (solely to the extent payments pursuant to Medicaid, Medicare, TRICARE, CHAMPUS, CHAMPVA or other state or federal healthcare payor programs are deposited therein) or (iii) thereof; and
(k)    any treasury stock of Parent that constitutes margin stock (within the meaning of Regulation U issued by the FRB). 
“Excluded Subsidiary” means any Subsidiary that is not a Wholly-Owned Subsidiary of Parent; provided that, in the case of any Subsidiary that is not a Wholly-Owned Subsidiary for which Parent directly or indirectly owns 70% or more of such Subsidiary’s Equity Interests, the Note Parties shall have used commercially reasonable efforts, promptly following the acquisition or formation of such Subsidiary, to cause such Subsidiary to become a Guarantor by obtaining any necessary consents, approvals or waivers from Third Parties for such Subsidiary to become a Guarantor and to the extent any such approvals or waivers could not be obtained, the Note Parties shall 

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have delivered evidence reasonably satisfactory to the Purchasers of the foregoing (it being understood that (x) the failure of the Note Parties to obtain such consents, approvals or waivers after exercising commercially reasonable efforts shall not constitute a Default or Event of Default hereunder and (y) no Note Party shall be required to offer any financial incentive or other material concession in order to obtain such consents, approvals or waivers). 
“Existing Athyrium Credit Facility” means, collectively, the Note Purchase Agreement, dated as of December 29, 2017, among the Issuer, the Norwegian Guarantor, Parent, the UK Guarantor, the purchasers party thereto and Athyrium Opportunities III Acquisition LP, together with each other Note Document (as such term is defined in such Note Purchase Agreement).

“Export and Import Laws” means any applicable law, regulation, order or directive that applies to the import, export, re-export, transfer, disclosure or provision of goods, software, technology or technical assistance including, without limitation, restrictions or controls administered pursuant to the U.S. Export Administration Regulations, 15 C.F.R. Parts 730-774, administered by the U.S. Department of Commerce, Bureau of Industry and Security; U.S. Customs regulations; export and import laws of the UK, export and import control laws of Norway; and similar import and export laws, regulations, orders and directives of other jurisdictions to the extent applicable.  

“Extended Availability Notice” has the meaning set forth in Section 2.01(b)(iv).

“Facilities” means, at any time, a collective reference to the facilities and real properties owned, leased or operated by any Note Party or any Subsidiary.
“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code as of the Closing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations thereunder, official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any intergovernmental agreements entered into thereunder.  
“FDA” means the Food and Drug Administration of the United States of America or any successor entity thereto.
“FDCA” means the Federal Food, Drug and Cosmetic Act, as amended, 21 U.S.C. Section 301 et seq. and all regulations promulgated thereunder.
“First Availability Period” means that period commencing on and including the date that is fifteen (15) days after the Closing Date and ending on the earliest of (i) the date on which no Notes remain outstanding, (ii) the First Delayed Draw Note Closing Date, and (iii) February 15, 2020 (which date shall be extended by up to fifteen (15) days in order to provide sufficient time for closing if Issuer delivers the Notice of Issuance of the First Delayed Draw Notes between February 1, 2020 and February 15, 2020).
“First Delayed Draw Note” and “First Delayed Draw Notes” have the meanings set forth in Section 2.01(b)(i).
“First Delayed Draw Note Closing Date” means (a) before the issuance, sale and purchase of the First Delayed Draw Notes, the date proposed by the Issuer as the First Delayed Draw Note Closing Date in the Notice of Issuance in accordance with the terms hereof, which, for purposes of clarity, shall be subject to the satisfaction of the conditions precedent to the obligation of each Purchaser to purchase the First Delayed Draw Notes set forth in Sections 5.02, 5.03(a) and 5.03(d); and (b) after the issuance, sale and purchase of the First Delayed Draw Notes (if any), the date when such issuance, sale and purchase occurred; provided, that, in no event shall the First Delayed Draw Note Closing Date be earlier than the beginning of the First Availability Period or later than the expiration of the First Availability Period; provided, further, that, notwithstanding the foregoing, the First Delayed Draw Note Closing Date may occur on the Second Delayed Draw Note Closing Date or the Third Delayed Draw Note Closing Date as and to the extent expressly provided in Section 2.01(b)(iv).

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“Foreign Purchaser” has the meaning set forth in Section 3.01.
“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.
“FRB” means the Board of Governors of the Federal Reserve System of the United States.
“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in notes, loans and/or similar extensions of credit in the ordinary course of its activities.
“Funded Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
(a)    all obligations, whether current or long-term, for borrowed money (including the Obligations) and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;
(b)    all purchase money Indebtedness;
(c)    the principal portion of all obligations under conditional sale or other title retention agreements relating to property purchased by such Person or any Subsidiary thereof (other than customary reservations or retentions of title under agreements with suppliers entered into in the ordinary course of business);
(d)    all reimbursement or payment obligations due and payable and arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;
(e)    all obligations in respect of the deferred purchase price of property or services (other than (i) trade accounts payable or other accounts payable in the ordinary course of business and not past due more than 90 days after the date on which such account payable was created or otherwise being contested in good faith, and (ii) any Earn Out Obligations unless such Earn Out Obligations have not been paid after becoming due and payable); 
(f)    the Attributable Indebtedness of Capital Leases, Securitization Transactions and Synthetic Leases;
(g)    all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Disqualified Capital Stock in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends;
(h)    all Funded Indebtedness of others secured by (or for which the holder of such Funded Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from, property owned or acquired by such Person, whether or not the obligations secured thereby have been assumed;
(i)    all Guarantees with respect to Funded Indebtedness of the types specified in clauses (a) through (h) above of another Person; and
(j)    all Funded Indebtedness of the types referred to in clauses (a) through (i) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person is a general partner or joint venturer, except to the extent that Funded Indebtedness is expressly made non-recourse to such Person.

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“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board, consistently applied and as in effect from time to time.
“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, including state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Governmental Licenses” means all applications to and requests for approval from a Governmental Authority to manufacture, test, develop, import, store, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product, including, without limitation, all Drug Applications, and all authorizations issuing from a Governmental Authority based upon or as a result of such applications and requests, of which in each case are owned by Parent or any Subsidiary, acquired by Parent or any Subsidiary via assignment, purchase or otherwise or that Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Governmental Payor Programs” means all governmental third party payor programs in which any Note Party or its Subsidiaries participates, including Medicare, Medicaid, TRICARE or any other federal or state health care programs.
“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.
“Guarantors” means, collectively, the Norwegian Guarantor, Parent and the UK Guarantor, together with each other Person that joins as a Guarantor pursuant to Section 7.12 (and “Guarantor” shall mean, as the context may require, each of them individually), together with their respective successors and permitted assigns.
“Guaranty” means the Guaranty made by the Guarantors in favor of the Collateral Agent and the Purchasers pursuant to Article IV.
“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.

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“HHS” means the United States Department of Health and Human Services and any successor agency thereof.
"Immaterial Subsidiary" means each Subsidiary of Parent that has assets with a value of less than $100,000. 
“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
(a)    all Funded Indebtedness;
(b)    all obligations arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;
(c)    the Swap Termination Value of any Swap Contract;
(d)    all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable or other accounts payable in the ordinary course of business and not past due more than 90 days after the date on which such account payable was created or otherwise being contested in good faith,), including Earn Out Obligations;
(e)    all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (d) above of any other Person; and
(f)    all Indebtedness of the types referred to in clauses (a) through (d) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Person or a Subsidiary thereof is a general partner or joint venturer, unless such Indebtedness is expressly made non-recourse to such Person or such Subsidiary.
For purposes hereof, the amount of any direct obligation arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments shall be the maximum amount available to be drawn thereunder.
For the avoidance of doubt, “Indebtedness” shall not include Permitted Bond Hedge Transactions or Permitted Warrant Transactions.

“Indemnified Taxes” has the meaning set forth in Section 3.01(b).
“Indemnitee” has the meaning set forth in Section 11.04(b).
“Indirect Purchaser” means any Person that is not a U.S. Person and either (1) directly holds equity interests in a Purchaser that is treated as a partnership or disregarded entity for United States federal income tax purposes or (2) directly holds equity interests in a U.S. Person that is treated as a partnership or disregarded entity for U.S. federal income tax purposes that, directly, or indirectly through entities each of which is treated a partnership or a disregarded entity for U.S. federal income tax purposes, holds equity interests in a Purchaser.
“Information” has the meaning set forth in Section 12.07.
“Infringement” and “Infringe” mean the infringement, misappropriation or other violation of know-how, trade secrets, confidential information and/or other IP Rights.
“Initial Note” has the meaning specified in Section 2.01(a).
“Intercompany License Agreement” means that certain License Agreement with respect to Certain Intellectual Property, dated December 31, 2018, between the Norwegian Guarantor, as licensor, and the Issuer, as 

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licensee, as amended pursuant to that certain Amendment to License Agreement, dated January 30, 2019 and as may be further amended or modified from time to time in accordance with the terms thereof.
“Intercompany Loan Agreement” means that certain Intercompany Loan Agreement, dated as of December 31, 2018, between the Norwegian Guarantor, as lender, and the Issuer, as borrower, as may be amended or modified from time to time in accordance with the terms thereof.
“Intercreditor Agreement” has the meaning specified in Section 8.03(r).
“Interest Payment Date” means (a) the 15th day of each March, June, September and December; provided, that, if any such 15th day is not a Business Day, the applicable “Interest Payment Date” shall be the first Business Day following such 15th day, and (b) the Maturity Date. 
“Interest Period” means, (a) initially, the period beginning on (and including) the date on which the Initial Notes or Delayed Draw Notes, as applicable, are issued and purchased hereunder and ending on (and including) the next following Interest Payment Date, and (b) thereafter, the period beginning on (and including) the first day immediately following such Interest Payment Date and ending on the earlier of (and including) (i) the next following Interest Payment Date and (ii) the Maturity Date. 
“Interim Financial Statements” means the unaudited consolidated financial statements of Parent and its Subsidiaries for the fiscal quarter ended June 30, 2019, including balance sheets and statements of income or operations, shareholders’ equity and cash flows. 
“Internal Revenue Code” means the United States Internal Revenue Code of 1986.
“Internal Revenue Service” means the United States Internal Revenue Service.
“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, or (c) an Acquisition.  For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested (which, in the case of any Investment constituting the contribution of an asset or property, shall be based on such Person’s good faith estimate of the fair market value of such asset or property at the time such Investment is made), less the amount of cash and Cash Equivalents or the fair market value (as determined by such Person in good faith) of any other property received, returned or repaid as a result of dispositions, distributions or liquidations of all or a portion of such Investment, without adjustment for subsequent increases or decreases in the value of such Investment or write-ups, write-downs or write-offs with respect thereto.  
“Involuntary Disposition” means any loss of, damage to or destruction of, or any condemnation or other taking for public use of, any property of any Note Party or any of their Subsidiaries.
“IP Rights” means, collectively, all Confidential Information, all Copyrights, all Copyright Licenses, all Domain Names, all Drug Applications, all Governmental Licenses, all Other Intellectual Property, all Other IP Agreements, all Patents, all Patent Licenses, all Proprietary Databases, all Proprietary Software, all Trademarks, all Trademark Licenses, all Trade Secrets, all Websites and all Website Agreements.
“Issuer” is defined in the preamble hereof.
“Joinder Agreement” means a joinder agreement substantially in the form of Exhibit B executed and delivered by a Subsidiary in accordance with the provisions of Section 7.12.

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“Joint Venture” means a joint venture, partnership or other similar arrangement, in corporate, partnership or similar legal form with a Person other than Parent or its Subsidiaries.
“Junior Debt” means (a) any Indebtedness that is contractually subordinated in right of payment to the Obligations, (b) any Indebtedness secured by Liens on any Collateral contractually junior to those created under the Collateral Documents and (c) any unsecured Indebtedness for borrowed money.
“Laws” means, collectively, all applicable international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law, including all Laws applicable to the research, development, manufacturer, production, use, commercialization, marketing, importation, exportation, storage, transport, offer for sale, distribution or sale of the Product, such as the FDCA, the CSA and any foreign equivalents.
“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).
“Make-Whole Amount” means, on any date of determination, as and to the extent applicable, individually, collectively or in any combination, as appropriate:
(g)    with respect to any amount of the Initial Notes that is prepaid or required to be prepaid before the 30th month anniversary of the Closing Date, an amount equal to the sum of all interest that would have accrued on the principal amount of the Initial Notes prepaid or required to be prepaid from the date of prepayment through and including the 30th month anniversary of the Closing Date but for such prepayment or requirement to prepay;
(h)    with respect to any amount of the First Delayed Draw Notes that is prepaid or required to be prepaid before the 30th month anniversary of the First Delayed Draw Note Closing Date, an amount equal to the sum of all interest that would have accrued on the principal amount of the First Delayed Draw Notes prepaid or required to be prepaid from the date of prepayment through and including the 30th month anniversary of the First Delayed Draw Note Closing Date but for such prepayment or requirement to prepay;
(i)    with respect to any amount of the Second Delayed Draw Notes that is prepaid or required to be prepaid before the 30th month anniversary of the Second Delayed Draw Note Closing Date, an amount equal to the sum of all interest that would have accrued on the principal amount of the Second Delayed Draw Notes prepaid or required to be prepaid from the date of prepayment through and including the 30th month anniversary of the Second Delayed Draw Note Closing Date but for such prepayment or requirement to prepay; and
(j)    with respect to any amount of the Third Delayed Draw Notes that is prepaid or required to be prepaid before the 30th month anniversary of the Third Delayed Draw Note Closing Date, an amount equal to the sum of all interest that would have accrued on the principal amount of the Third Delayed Draw Notes prepaid or required to be prepaid from the date of prepayment through and including the 30th month anniversary of the Third Delayed Draw Note Closing Date but for such prepayment or requirement to prepay.
“Market Capitalization” means, as of any date of determination, the product of (a) the number of issued and outstanding shares of common stock of Parent as of such date (exclusive of any shares of common stock issuable 

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upon the exercise of options or warrants or conversion of any convertible securities), multiplied by (b) the volume weighted average price per share for Parent’s shares of common stock for the ten (10) immediately preceding Trading Days on the Current Market.
“Market Withdrawal” means the removal or correction of a distributed product which involves a minor violation that would not be subject to legal action by the FDA or which involves no violation, such as normal stock rotation practices and routine equipment adjustments and repairs, as this term is defined in FDA’s regulations at 21 CFR 7.3(j).
“Material Adverse Effect” means (a) any material adverse change in, or any material adverse effect upon, the business, assets, properties, liabilities (actual or contingent) or financial condition of Parent and its Subsidiaries taken as a whole, (b) any material impairment of the rights and remedies of the Collateral Agent or any Purchaser under any Note Document to which it is a party or any material impairment in the perfection or priority of the Collateral Agent’s security interests in the Collateral, (c) any material impairment of the ability of the Note Parties, taken as a whole, to perform their material obligations under any Note Document, or (d) any material adverse effect upon the legality, validity, binding effect or enforceability against any Note Party of any material provision of any Note Document to which it is a party.
“Material Contracts” has the meaning set forth in Section 6.24(a).
“Material IP Rights” means IP Rights that (a) are material to the operations, assets, business, property or financial condition of Parent and its Subsidiaries taken as a whole or (b) the loss of which could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect.
“Material Product” means (a) XHANCE, and (b) any other Product, which, in the case of this clause (b), is material to the operations, business, property or financial condition of Parent and its Subsidiaries, taken as a whole.
“Maturity Date” means the date that is the 5-year anniversary of the Closing Date.
“Maximum Rate” has the meaning set forth in Section 11.09.
“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.
“Mortgages” means the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Collateral Agent, for the benefit of the Purchasers, a security interest in the freehold interest or fee interest of any Note Party in real property (other than Excluded Property).
“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which Parent or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.
“Multiple Employer Plan” means a Plan which has two or more contributing sponsors (including Parent or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.
“Non-Consenting Purchaser” means any Purchaser that does not approve any consent, waiver or amendment that (a) requires the approval of all Purchasers or all affected Purchasers in accordance with the terms of Section 12.01 and (b) has been approved by the Required Purchasers.
“Norwegian Companies Act” means the Norwegian Private Limited Companies Act of 13 June 1997 no 44 (No. aksjeloven).
“Norwegian Guarantor” is defined in the preamble hereof.

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“Norwegian Security Documents” means (a) a share pledge agreement over the shares in the Norwegian Guarantor granted by Parent and (b) a security agreement granted by the Norwegian Guarantor, pledging certain monetary claims, inventory, operating assets, patents and trade receivables.
“Note” or “Notes” means the Initial Notes and the Delayed Draw Notes, individually or collectively, as appropriate.
“Note Documents” means this Agreement, each Note, the Disclosure Letter, each Joinder Agreement and the Collateral Documents.  For the avoidance of doubt, “Note Documents” shall not include the Warrant Agreement or any warrants issued pursuant thereto.
“Note Parties” means, collectively, the Issuer and each Guarantor.
“Notice of Issuance” means a notice of the Issuer, executed by a Responsible Officer thereof, with respect to the proposed issuance of any Delayed Draw Notes setting forth (i) the proposed Delayed Draw Note Closing Date with respect to such issuance of such Delayed Draw Notes (which date may be no earlier than fifteen (15) days from the date on which such notice is delivered to the Purchasers and the applicable conditions precedent in Sections 5.02 and 5.03 have been satisfied), (ii) the aggregate principal amount of such Delayed Draw Notes proposed to be issued to each Purchaser with a Delayed Draw Note Commitment with respect to such Delayed Draw Notes, and (iii) the aggregate purchase price payable by each Purchaser with such a Delayed Draw Note Commitment in respect of such Delayed Draw Notes to be acquired by each such Purchaser.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Note Party arising under any Note Document or otherwise with respect to any Note, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Note Party or any Subsidiary thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.
“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws of such corporation, (b) with respect to the Norwegian Guarantor, the certificate of registration and articles of association of such company, (c) with respect to the UK Guarantor, the certificate of incorporation, the memorandum of association and the articles of association of such company, (d) with respect to any other limited liability company, the certificate or articles of formation or organization and operating agreement of such company, and (e) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization of such entity, including in each case equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction, and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.
“Other Intellectual Property” means all worldwide intellectual property rights, industrial property rights, proprietary rights and common-law rights, whether registered or unregistered, which are not otherwise included in Confidential Information, Copyrights, Copyright Licenses, Domain Names, Governmental Licenses, Other IP Agreements, Patents, Patent Licenses, Trademarks and Trademark Licenses, Proprietary Databases, Proprietary Software, Websites, Website Agreements and Trade Secrets, including, without limitation, all rights to and under all new and useful algorithms, concepts, data (including all clinical data relating to a Product), databases, designs, discoveries, inventions, know-how, methods, processes, protocols, show-how, software (other than commercially available, off-the-shelf software), specifications for Products, techniques, technology, trade dress and all improvements thereof and thereto, which is owned by Parent or any Subsidiary or which Parent or any Subsidiary 

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is licensed, authorized or otherwise granted rights under or to, and which is used by Parent or any other Person to advertise, develop, manufacture, import, market, promote, offer for sale, sell, use and/or otherwise distribute a Product. 
“Other IP Agreements” means any agreement, whether written or oral, providing for the grant of any right under any Confidential Information, Governmental Licenses, Proprietary Database, Proprietary Software, Trade Secret and/or any other IP Rights, to the extent that the grant of any such right is not otherwise the subject of a Copyright License, Trademark License, Patent License or Website Agreement.

“Parent” is defined in the preamble hereof.
“Participant” has the meaning set forth in Section 12.06(k).
“Patent License” means any agreement, whether written or oral, providing for the grant of any right under any Patent.
“Patents” means all letters patent and patent applications in the United States and all other countries (and all letters patent that issue therefrom) and all reissues, extensions, supplementary protection certificates, renewals, divisions, separations and continuations (including continuations-in-part and continuing prosecution applications) thereof, for the full term thereof, together with the right to claim the priority thereto, which are owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and which is used by Parent or any other Person to advertise, develop, manufacture, import, market, promote, offer for sale, sell, use and/or otherwise distribute a Product.
“PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.
“Pension Act” means the Pension Protection Act of 2006.
“Pension Funding Rules” means the rules of the Internal Revenue Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Pension Plans and set forth in Section 412, 430, 431, 432 and 436 of the Internal Revenue Code and Sections 302, 303, 304 and 305 of ERISA.
“Pension Plan” means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is contributed to by Parent or any ERISA Affiliate and that either is covered by Title IV of ERISA or is subject to minimum funding standards under Section 412 of the Internal Revenue Code.
“Permits” means licenses (including Governmental Licenses), certificates, accreditations, provider numbers or provider authorizations, other authorizations, registrations, permits or consents required in connection with the conduct of Parent’s or any Subsidiary’s Business or to comply with any applicable Laws or regulations, including drug listings and drug establishment registrations under 21 U.S.C. Section 360, registrations issued by DEA under 21 U.S.C. Section 823 (if applicable to any Product), and those issued by state governments for the conduct of Parent’s or any Subsidiary’s Business.
“Permitted Acquisitions” means an Investment consisting of an Acquisition by any Note Party or Wholly-Owned Subsidiary of a Note Party; provided, that: (a) no Default or Event of Default shall have occurred and be continuing or would result from such Acquisition; (b) the property acquired (or the property of the Person acquired) in such Acquisition is used or useful in the same or a related line of business as Parent and its Subsidiaries were engaged in on the Closing Date (or any reasonable extensions or expansions thereof); (c) the Collateral Agent shall have received all items in respect of the Equity Interests or property acquired in such Acquisition as and when required to be delivered by the terms of Section 7.12 and/or Section 7.14; (d) in the case of an Acquisition of the Equity Interests of another Person, the Board of Directors of such other Person shall have duly approved such Acquisition; (e) Parent shall have delivered to the Purchasers pro forma financial statements for Parent and its Subsidiaries after giving effect to such Acquisition for the twelve (12) month period ending as of the most recent fiscal quarter end in 

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a form reasonably satisfactory to the Required Purchasers; (f) the representations and warranties made by the Note Parties in each Note Document shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality or reference to Material Adverse Effect) at and as if made as of the date of such Acquisition (after giving effect thereto) except to the extent any such representation and warranty expressly relates to an earlier date, in which case it shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality or reference to Material Adverse Effect) as of such earlier date; and (g) the aggregate consideration (including cash and non-cash consideration, deferred purchase price and any Earn Out Obligations but excluding consideration paid in the form of Qualified Capital Stock of Parent or from the proceeds of any substantially contemporaneous issuance of Qualified Capital Stock of Parent (to the extent not constituting a Change of Control)) paid by the Note Parties for (x) any individual Acquisition does not exceed an amount equal to, 2.50% (or up to 10% if either (1) the Consolidated EBITDA for the four-fiscal quarter period most recently ended prior to the Permitted Acquisition Disclosure Date was at least $20,000,000, for which Parent shall deliver to the Purchasers on the Permitted Acquisition Disclosure Date a certificate signed by a Responsible Officer of Parent certifying to such fact together with a reasonably detailed calculation of Consolidated EBITDA for such period (the “EBITDA Test Condition”) or (2) with respect to that portion of the aggregate consideration for such Acquisition in excess of 2.50% of Parent’s Market Capitalization (as reasonably determined by Parent in good faith) at the Permitted Acquisition Disclosure Date, the cash used for such Acquisition is from the proceeds of one or more issuances of Qualified Capital Stock of Parent (to the extent not constituting a Change of Control) received within the 18-month period prior to the closing of such Acquisition in an amount not to exceed (x) the aggregate amount of such proceeds minus (y) $35,000,000 (the “Equity Issuance Condition”)) in each case, of Parent’s Market Capitalization (as reasonably determined by Parent in good faith) at the Permitted Acquisition Disclosure Date and (y) all such Acquisitions do not exceed an aggregate amount equal to 7.50% (and if either (1) the EBITDA Test Condition, or (2) with respect to that portion of the aggregate consideration for all such Acquisitions in excess of 7.50% of Parent’s Market Capitalization (as reasonably determined by Parent in good faith) at the Permitted Acquisition Disclosure Date, the Equity Issuance Condition, are met at the time of the relevant Acquisition, 25.00%), in each case, of Parent’s Market Capitalization (as reasonably determined by Parent in good faith) at the Permitted Acquisition Disclosure Date). 
“Permitted Acquisition Disclosure Date” means the date that such Acquisition is first disclosed to the Purchasers (which shall be no earlier than thirty (30) Business Days and no later than five (5) Business Days prior to entering into any definitive acquisition agreement in respect thereof).
“Permitted Bond Hedge Transaction” means any call, call spread or capped call option (or substantively equivalent derivative transaction) relating to the Parent’s common stock (or other securities or property following a fundamental change of Parent or other change of, or adjustment with respect to, the common stock of Parent, in each case to the extent not constituting a Change of Control) purchased or otherwise entered into by Parent in connection with the issuance of any Permitted Convertible Bond Indebtedness; provided, that, the purchase price for such Permitted Bond Hedge Transaction, less the proceeds received by Parent from the sale of any related Permitted Warrant Transaction (or in the case of capped calls, where such proceeds are not received but are reflected in a reduction of the premium), does not result in the incurrence of additional Indebtedness by Parent (other than Indebtedness from the issuance of Permitted Convertible Bond Indebtedness in connection with such Permitted Bond Hedge Transaction).
“Permitted Convertible Bond Indebtedness” means Indebtedness having a feature which entitles the holder thereof to convert or exchange all or a portion of such Indebtedness into Equity Interests of Parent; provided, that (i) such Permitted Convertible Bond Indebtedness shall be unsecured, (ii) no Subsidiary of Parent shall guarantee Permitted Convertible Bond Indebtedness, (iii) Permitted Convertible Bond Indebtedness shall not include any financial maintenance covenants and shall only include covenants and defaults that are customary for public market convertible indebtedness (pursuant to a public offering or an offering under Rule 144A or Regulation S of the Securities Act), as determined by Parent in its good faith judgment, (iv) no Default or Event of Default shall have occurred and be continuing at the time of incurrence of such Permitted Convertible Bond Indebtedness or would result therefrom, (v) such Permitted Convertible Bond Indebtedness does not have a scheduled maturity date earlier than 180 calendar 

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days after the Maturity Date, and (vi) Parent shall have delivered to the Purchasers a certificate of a Responsible Officer of Parent certifying as to the foregoing.
“Permitted Holders” means, collectively, Avista Capital Partners II, LP and its Controlled Investment Affiliates; “Permitted Holder” means any one of them.
“Permitted Licenses” means, collectively, (a) licenses of over-the-counter software that is commercially available to the public, (b) intercompany licenses or grants of rights for development, manufacture, production, commercialization (including commercial sales to end users), marketing, co-promotion, or distribution among the Note Parties, (c) any non-exclusive or exclusive license of (or covenant not to sue with respect to) IP Rights or technology or a grant of rights for development, manufacture, production, commercialization (including commercial sales to end users), marketing, co-promotion, or distribution, in each case existing as of the date hereof, and (d) any non-exclusive and exclusive licenses for the use of (or covenant not to sue with respect to) the IP Rights of Parent or any of its Subsidiaries or a grant of rights for development, manufacture, production, commercialization (including commercial sales to end users), marketing, co-promotion or distribution; provided, that, with respect to each such license described in clause (d) above, (i) no Event of Default has occurred or is continuing at the time of such license, (ii) the license constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment of any intellectual property and the Note Parties shall comply, if applicable, with Section 7.18 with respect to such license, (iii) in the case of any exclusive license, (A) Parent delivers ten (10) days’ prior written notice and a brief summary of the terms of the proposed license to the Purchasers and delivers to the Purchasers copies of the final executed licensing documents in connection with the exclusive license promptly upon the execution and delivery thereof by the parties thereto, all of which shall constitute “Information” as described in Section 12.07 regardless of whether marked confidential, (B) any such license could not result in a legal transfer of title of the licensed property and (C) in the case of any such license relating to the commercialization (including commercial sales to end users), development, manufacture, production, marketing, co-promotion or distribution of XHANCE, such license may be exclusive as to the United States (or any territory therein) but only with respect to a particular market segment or indication which is outside the ENT Field (each such license described in this clause (C), a “Permitted XHANCE Exclusive US License”) (for the avoidance of doubt, licenses of XHANCE may be exclusive, including as to territory outside of the United States, pursuant to clause (d) above to the extent such licenses otherwise meet the requirements of such clause (d) above and the other clauses of this proviso), and (iv) all upfront payments, royalties, milestone payments, sublicense revenues or other proceeds arising from the licensing agreement that are payable to Parent or any of its Subsidiaries are paid to a Deposit Account that is governed by a Deposit Account Control Agreement. 
“Permitted XHANCE Exclusive US License” has the meaning set forth in the definition of “Permitted License”.  
“Permitted Liens” means, at any time, Liens in respect of property of any Note Party or any of its Subsidiaries permitted to exist at such time pursuant to the terms of Section 8.01.
“Permitted Revolving Credit Documents” means each agreement, instrument and document entered into by Parent or any Subsidiary in connection with the Permitted Revolving Credit Facility, as the same may be amended, modified, extended, restated, replaced or supplemented from time to time subject to the terms and provisions of the Intercreditor Agreement entered into by the Collateral Agent in connection therewith.
“Permitted Revolving Credit Facility” means a Revolving Credit Facility permitted under the terms of Section 8.03(r) hereof.
“Permitted Transfers” has the meaning set forth in the definition of “Disposition”. 
“Permitted Warrant Transaction” means any call option, warrant or right to purchase (or substantively equivalent derivative transaction) relating to Parent’s common stock (or other securities or property following a merger event or other change of the common stock of Parent to the extent not constituting a Change of Control) sold 

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by Parent substantially contemporaneously with any purchase by Parent of a related Permitted Bond Hedge Transaction, with a strike price higher than the strike price of the Permitted Bond Hedge Transaction.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“PHSA” means the United States Public Health Service Act, 42 U.S.C. Section 201 et seq., and all regulations promulgated thereunder.
“Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Plan), maintained for employees of Parent or any ERISA Affiliate or any such Plan to which Parent or any ERISA Affiliate is required to contribute on behalf of any of its employees or otherwise has any liability.
“Pre-Default Rate” means an interest rate equal to ten and three-quarters percent (10.75%) per annum.
“Pledge Agreement” means the New York law governed pledge agreement dated as of the Closing Date executed in favor of the Collateral Agent, for the benefit of the Purchasers, by each of the Note Parties, as may be amended or modified from time to time in accordance with the terms hereof.
“Prepayment Premium” means, on any date of determination, as and to the extent applicable, individually, collectively or in any combination, as appropriate: (i) with respect to any prepayment paid or required to be paid before the third anniversary of the Closing Date, two percent (2.00%) of the principal amount of the Notes prepaid or required to be prepaid; (ii) with respect to any prepayment paid or required to be paid on or after the third anniversary, but before the fourth anniversary, in each case of the Closing Date, 1.00% of the principal amount of the Notes prepaid or required to be prepaid; and (iii) with respect to any prepayment paid or required to be prepaid on or after the fourth anniversary of the Closing Date, 0.00% of the principal amount of the Notes prepaid or required to be prepaid.
“Principal Market” means any of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market.
“Product” means (a) XHANCE, and (b) any other prescription drug, medical device or combination product advertised, developed, imported, manufactured, marketed, offered for sale, promoted, sold, tested, used or otherwise distributed by Parent or any Subsidiary in connection with or that embody, in whole or in part, the IP Rights, including those products set forth on Schedule 1.01(b) to the Disclosure Letter (as updated from time to time in accordance with the terms of this Agreement).
“Proprietary Databases” means any material non-public proprietary database that is owned by Parent or any Subsidiary or that Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and that is used by Parent or any other Person to manufacture, develop, import, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product.
“Proprietary Software” means any proprietary software owned, licensed or otherwise used, other than any software that is generally commercially available, off-the-shelf and/or open source including, without limitation, the object code and source code forms of such software and all associated documentation, which is owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and that is used by Parent or any other Person to manufacture, develop, import, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product.
“Purchaser” means each Person signatory hereto as a “Purchaser”, in its capacity as a purchaser under any of the Note Documents and not in any other capacity thereunder, and its successors and assigns.

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“Qualified Capital Stock” of any Person means any Equity Interests of such Person that are not Disqualified Capital Stock.
“Real Property Security Documents” means with respect to the freehold interest or fee interest of any Note Party in any real property (other than Excluded Property) located in the United States (or in the case of any such real property located in Norway or England, as otherwise required pursuant to the terms of the English Security Documents or Norwegian Security Documents, and in the case of any such real property located outside the United States, Norway or England, similar documents as customary or required under the laws of such jurisdiction): 
(a)    a fully executed and notarized Mortgage encumbering the freehold interest or fee interest and/or leasehold interest of such Note Party in such real property (provided, however, that the Collateral Agent’s right to recover under such Mortgage shall be limited to not more than 110% of the fair market value of such real property in order to limit any documentary stamp taxes and intangible taxes due on the recording of the applicable Mortgage);

(b)    if requested by the Collateral Agent in its reasonable discretion, maps or plats of an as-built survey of the sites of such real property certified to the Collateral Agent and the title insurance company issuing the policies referred to in clause (c) of this definition in a manner reasonably satisfactory to each of the Collateral Agent and such title insurance company, dated a date satisfactory to each of the Collateral Agent and such title insurance company by an independent professional licensed land surveyor, which maps or plats and the surveys on which they are based shall be sufficient to delete any standard printed survey exception contained in the applicable title policy and be made in accordance with the Minimum Standard Detail Requirements for Land Title Surveys jointly established and adopted by the American Land Title Association and the National Society of Professional Surveyors, Inc. in 2016;

(c)    ALTA mortgagee title insurance policies issued by a title insurance company acceptable to the Collateral Agent with respect to such real property (to the extent available for a commercially reasonable cost in an amount not to exceed 110% of the fair market value of such real property, assuring the Collateral Agent that the Mortgage covering such real property creates a valid and enforceable first priority mortgage lien on such real property, free and clear of all defects and encumbrances except Permitted Liens, which title insurance policies shall otherwise be in form and substance reasonably satisfactory to the Collateral Agent and shall include such endorsements as are reasonably requested by the Collateral Agent (but not including zoning endorsements; provided, that, in lieu thereof, the Collateral Agent may require either a zoning compliance letter from the applicable municipality in a form reasonably acceptable to the Collateral Agent or a report issued by Planning and Zoning Resources Corp. or another professional firm reasonably acceptable to the Collateral Agent); 

(d)    evidence as to (i) whether such real property is in an area designated by the Federal Emergency Management Agency as having special flood or mud slide hazards (a “Flood Hazard Property”) and (ii) if such real property is a Flood Hazard Property, (A) whether the community in which such real property is located is participating in the National Flood Insurance Program, (B) the applicable Note Party’s written acknowledgment of receipt of written notification from the Collateral Agent (1) as to the fact that such real property is a Flood Hazard Property and (2) as to whether the community in which each such Flood Hazard Property is located is participating in the National Flood Insurance Program and (C) copies of insurance policies or certificates of insurance of Parent and its Subsidiaries evidencing flood insurance reasonably satisfactory to the Collateral Agent and naming the Collateral Agent and its successors and/or assigns as sole loss payee on behalf of the Purchasers; 

(e)    if requested by the Collateral Agent in its reasonable discretion, a Phase I environmental assessment report, as to such real property, in form and substance and from professional firms reasonably acceptable to the Collateral Agent;

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(f)    if requested by the Collateral Agent in its sole discretion, evidence reasonably satisfactory to the Collateral Agent that such real property, and the uses of such real property, are in compliance in all material respects with all applicable zoning laws; and

(g)    if requested by the Collateral Agent in its sole discretion, an opinion of legal counsel to the Note Party granting the Mortgage on such real property, addressed to the Collateral Agent and each Purchaser, in form and substance reasonably acceptable to the Collateral Agent.

“Recall” means, as this term is defined in FDA’s regulations at 21 CFR 7.3(g), the removal or correction of a marketed product that the FDA considers to be in violation of the Laws it administers and against which the agency would initiate legal action, e.g., seizure.  For the avoidance of doubt, Recall does not include a Market Withdrawal.

“Recipient” means any Purchaser and any other recipient of any payment by or on account of any obligation of any Note Party under any Note Document.
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors, sub-advisors and representatives of such Person and of such Person’s Affiliates; provided, however, that with respect to BioPharma Credit PLC in its capacity as the Collateral Agent, BioPharma Credit Investments V (Master) LP shall be deemed not to be a Related Party.
“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the thirty-day notice period has been waived.
“Reporting Date” means the date on which the financial statements required by Section 7.01(a) or (b) are delivered or required to be delivered to Collateral Agent and the Purchasers.
“Required Permit” means a Permit material to the operations, business, property or financial condition of the Parent and its Subsidiaries, taken as a whole, that is (a) issued or required under Laws or regulations applicable to the business of Parent or any Subsidiary and necessary in the manufacturing, testing, developing, importing, exporting, possession, ownership, warehousing, marketing, promoting, sale, labeling, furnishing, distribution or delivery of any Product under Laws or regulations applicable to the business of Parent or any Subsidiary or any Drug Application (including at any point in time, all licenses, approvals and permits issued by the FDA or any other applicable Governmental Authority necessary for the testing, development, manufacture, marketing or sale of any Product by Parent or any Subsidiary as such activities are being conducted by Parent or such Subsidiary with respect to such Product at such time), and (b) issued by any Person from which Parent or any Subsidiary has, as of the Closing Date, received a required accreditation.
“Required Purchasers” means, as of any date, the Purchasers holding at least 51% of the aggregate principal amount of (i) the Notes outstanding on such date, and (ii) all undrawn Delayed Draw Note Commitments outstanding on such date, voting as a single class; provided, that any Notes held by Parent or any of its Subsidiaries shall be excluded; provided, further, that the Notes held by, and Delayed Draw Note Commitments of, any Defaulting Purchaser shall be disregarded in determining Required Purchasers at any time.
“Responsible Officer” means the chief executive officer, president, chief financial officer, chief legal officer or chief operating officer, or vice president of finance of a Note Party and, solely for purposes of the delivery of certificates pursuant to Sections 5.01 or 7.12(b), the secretary or any assistant secretary of a Note Party.  Any document delivered hereunder that is signed by a Responsible Officer of a Note Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Note Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Note Party.
“Restricted Payment” means (a) any dividend or other distribution, direct or indirect, on account of any shares (or equivalent) of any class of Equity Interests of any Note Party or any of its Subsidiaries, now or hereafter 

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outstanding, (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares (or equivalent) of any class of Equity Interests of any Note Party or any of its Subsidiaries, now or hereafter outstanding, and (c) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of Equity Interests of any Note Party or any of its Subsidiaries, now or hereafter outstanding.
“Revolving Credit Facility” has the meaning set forth in Section 8.03(r).
“Revolving Credit Priority Collateral” has the meaning set forth in Section 8.03(r).
“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of McGraw-Hill Financial, Inc., and any successor thereto.
“Safety Notices” has the meaning set forth in Section 6.25.
“Sale and Leaseback Transaction” means, with respect to any Note Party or any Subsidiary, any arrangement, directly or indirectly, with any Person whereby the Note Party or such Subsidiary shall sell or transfer any property used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred.
“Sanction(s)” means any sanction administered or enforced by the United States government (including, without limitation, OFAC), the United Nations Security Council, the European Union, the Kingdom of Norway, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority.
“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
“Second Availability Period” means that period commencing on and including the date that is fifteen (15) days after the First Delayed Draw Note Closing Date and ending on the earliest of (i) the date on which no Notes remain outstanding, (ii) the Second Delayed Draw Note Closing Date, and (iii) August 15, 2020 (which date shall be extended by up to thirty (30) days in order to provide sufficient time for closing if Issuer delivers the Notice of Issuance of the Second Delayed Draw Notes between July 15, 2020 and August 15, 2020).
“Second Delayed Draw Note” and “Second Delayed Draw Notes” have the meanings set forth in Section 2.01(b)(ii).
“Second Delayed Draw Note Closing Date” means (a) before the issuance, sale and purchase of the Second Delayed Draw Notes, the date proposed by the Issuer as the Second Delayed Draw Note Closing Date in the Notice of Issuance in accordance with the terms hereof, which, for purposes of clarity, shall be subject to the satisfaction of the conditions precedent to the obligation of each Purchaser to purchase the Second Delayed Draw Notes set forth in Sections 5.02, 5.03(b) and 5.03(d); and (b) after the issuance, sale and purchase of the Second Delayed Draw Notes (if any), the date when such issuance, sale and purchase occurred; provided, that, in no event shall the Second Delayed Draw Note Closing Date be earlier than the beginning of the Second Availability Period or later than the expiration of the Second Availability Period; provided, further, that, notwithstanding the foregoing, the Second Delayed Draw Note Closing Date may occur on the Third Delayed Draw Note Closing Date as and to the extent expressly provided in Section 2.01(b)(iv).
“Secured Parties” means each Purchaser, each other Indemnitee and each other holder of any Obligation of a Note Party.
“Securities Act” means the Securities Act of 1933.

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“Securitization Transaction” means, with respect to any Person, any financing transaction or series of financing transactions (including factoring arrangements) pursuant to which such Person or any Subsidiary of such Person may sell, convey or otherwise transfer, or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights to payment to a special purpose subsidiary or affiliate of such Person.
“Security Agreement” means the New York law governed security agreement dated as of the Closing Date executed in favor of the Collateral Agent, for the benefit of the Purchasers, by each of the Note Parties, as may be amended or modified from time to time in accordance with the terms hereof.
“Solvent” or “Solvency” means, with respect to any Person as of a particular date, that on such date (a) such Person is able to pay its debts and other liabilities as they become absolute and matured in the ordinary course of business, (b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities become absolute and matured in their ordinary course, (c) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged or is to engage, (d) the fair value of the property of such Person on a going concern basis is greater than the total amount of liabilities of such Person and (e) the present fair salable value of the assets of such Person on a going concern basis is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured in the ordinary course of business.
“Specified Disputes” has the meaning set forth in Section 6.17(h).
“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of Voting Stock is at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Parent.
“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.
“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s) and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Purchaser or any Affiliate of a Purchaser).

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“Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing arrangement whereby the arrangement is considered borrowed money indebtedness for tax purposes but is classified as an operating lease or does not otherwise appear on a balance sheet under GAAP.
“Taxes” has the meaning set forth in Section 3.01(a).
“Third Availability Period” means that period commencing on and including the date that is fifteen (15) days after the Second Delayed Draw Note Closing Date and ending on the earliest of (i) the date on which no Notes remain outstanding, (ii) the Third Delayed Draw Note Closing Date, and (iii) February 15, 2021 (which date shall be extended by up to thirty (30) days in order to provide sufficient time for closing if Issuer delivers the Notice of Issuance of the Third Delayed Draw Notes between January 15, 2021 and February 15, 2021).
“Third Delayed Draw Note” and “Third Delayed Draw Notes” have the meanings set forth in Section 2.01(b)(iii).
“Third Delayed Draw Note Closing Date” means (a) before the issuance, sale and purchase of the Third Delayed Draw Notes, the date proposed by the Issuer as the Third Delayed Draw Note Closing Date in the Notice of Issuance in accordance with the terms hereof, which, for purposes of clarity, shall be subject to the satisfaction of the conditions precedent to the obligation of each Purchaser to purchase the Third Delayed Draw Notes set forth in Sections 5.02, 5.03(c) and 5.03(d); and (b) after the issuance, sale and purchase of the Third Delayed Draw Notes (if any), the date when such issuance, sale and purchase occurred; provided, that, in no event shall the Third Delayed Draw Note Closing Date be earlier than the beginning of the Third Availability Period or later than the expiration of the Third Availability Period.
“Third Party” means any entity other than Parent, any Subsidiary thereof or any Affiliate thereof.
“Threshold Amount” means $2,000,000. 
“Trademark License” means any agreement, written or oral, providing for the grant of any right to use any Trademark.
“Trademarks” means all statutory and common-law trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications to register in connection therewith, under the laws of the United States, any state thereof or any other country or any political subdivision thereof, or otherwise, for the full term and all renewals thereof, which are owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to, and which are used by Parent or any other Person to manufacture, develop, import, market, promote, advertise, offer for sale, sell, use and/or otherwise distribute a Product.
“Trade Secrets” means any data or information that is not commonly known by or available to the public, and which (a) derives economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other Persons who can obtain economic value from its disclosure or use, (b) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy, and (c) which are owned by Parent or any Subsidiary or which Parent or any Subsidiary is licensed, authorized or otherwise granted rights under or to.
“Trading Day” means any day on which the shares of common stock of Parent are traded for at least six (6) hours on the Current Market.
“Treasury Regulations” means the regulations, including temporary regulations, promulgated by the United States Treasury Department under the Internal Revenue Code, as such regulations may be amended from time to time (including the corresponding provisions of any future regulations).

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“UK Guarantor” is defined in the preamble hereof.
“Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “Uniform Commercial Code” or “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof or of the other Note Documents relating to such perfection, effect of perfection or non-perfection or priority.
“United States” and “U.S.” mean the United States of America.
“Upfront Fee” has the meaning set forth in Section 2.10(a).
“U.S. Person” means a “United States Person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code.
“Voting Stock” means, with respect to any Person, Equity Interests issued by such Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even though the right so to vote has been suspended by the happening of such a contingency.
“Warrants” means, collectively, each Common Stock Purchase Warrant issued pursuant to Section 2.10(b) hereof.
“Websites” means all websites that Parent or any Subsidiary shall operate, manage or control through a Domain Name, whether on an exclusive basis or a nonexclusive basis, including, without limitations, all content, elements, data, information, materials, hypertext markup language (HTML), software and code, works of authorship, textual works, visual works, aural works, audiovisual works and functionality embodied in, published or available through each such website and all IP Rights in each of the foregoing.
“Website Agreements” means all agreements between Parent and/or any Subsidiary and any other Person pursuant to which such Person provides any services relating to the hosting, design, operation, management or maintenance of any Website, including without limitation, all agreements with any Person providing website hosting, database management or maintenance or disaster recovery services to Parent and/or any Subsidiary and all agreements with any domain name registrar, as all such agreements may be amended, supplemented or otherwise modified from time to time.
“Wholly-Owned Subsidiary” means any Person 100% of whose Equity Interests are at the time owned by Parent, directly or indirectly through other Persons 100% of whose Equity Interests are at the time owned, directly or indirectly, by Parent.
“Withholding Agent” means any Note Party, and any other Person required by applicable Law to withhold or deduct amounts from a payment made by or on account of any obligation of any Note Party under any Note Document.
“Work” means any work or subject matter that is subject to protection pursuant to Title 17 of the United States Code.
“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.

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“XHANCE” means XHANCE® (fluticasone propionate) nasal spray, 93 mcg.

1.02    Other Interpretive Provisions.
With reference to this Agreement and each other Note Document, unless otherwise specified herein or in such other Note Document:
(a)    The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including the Note Documents and any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, modified, extended, restated, replaced or supplemented from time to time (subject to any restrictions set forth herein or in any other Note Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “hereto”, “herein,” “hereof” and “hereunder,” and words of similar import when used in any Note Document, shall be construed to refer to such Note Document in its entirety and not to any particular provision thereof, (iv) all references in an Note Document to Articles, Sections, Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, Exhibits and Schedules to, the Note Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified, extended, restated, replaced or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all real and personal property and tangible and intangible assets and properties, including cash, securities, accounts, contract rights and IP Rights.
(b)    In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.”
(c)    Section headings herein and in the other Note Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Note Document.

1.03    Accounting Terms.
(a)    Generally.  Except as otherwise specifically prescribed herein, all accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein; provided, however, that, calculations of Attributable Indebtedness under any Synthetic Lease or the implied interest component of any Synthetic Lease shall be made by Parent in accordance with accepted financial practice and consistent with the terms of such Synthetic Lease.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant contained herein, Indebtedness of Parent and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.

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(b)    Changes in GAAP.  If at any time any change in GAAP would affect the computation of any financial requirement set forth in any Note Document, and either Parent or the Required Purchasers shall so request, the Collateral Agent, the Purchasers and Parent shall negotiate in good faith to amend such requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Purchasers); provided, that, until so amended, (i) such requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) Parent shall provide to the Purchasers financial statements and other documents required under this Agreement or as requested hereunder setting forth a reconciliation between calculations of such requirement made before and after giving effect to such change in GAAP.  Notwithstanding any other provision contained in this Agreement, any generally accepted accounting principles requiring leases that were previously accounted for as operating leases prior to the adoption of FASB ASC 842 to be recorded on the balance sheet as a lease liability and the corresponding right of use under FASB ASC 842 shall be disregarded.

1.04    Times of Day.
Unless otherwise specified, all references herein to times of day shall be references to Eastern Time (daylight or standard, as applicable).

1.05    Currency Generally.
For purposes of determining compliance with Article VIII with respect to the amount of any Indebtedness or Investment in a currency other than Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result of changes in rates of currency exchange occurring after the time such Indebtedness or Investment is incurred, made or acquired (so long as such Indebtedness or Investment, at the time incurred, made or acquired, was permitted hereunder).

ARTICLE II 
 
THE NOTES

2.01    Authorization and Issuance of Notes.  
(a)    Initial Notes.  The Issuer has duly authorized the issuance, sale and delivery of its Senior Secured Notes due 2024 in the aggregate principal amount of $80,000,000, to be dated the Closing Date, to mature on the Maturity Date, and to be substantially in the form of Exhibit A-1 hereto.  All such notes originally issued pursuant to this clause (a), or delivered in substitution or exchange for any thereof, being collectively called the “Initial Notes” and individually an “Initial Note”.  Notwithstanding anything to the contrary set forth herein, the Initial Notes will, upon the occurrence of the Closing Date, be immediately separable and transferable in accordance with the terms hereof.
(b)    Delayed Draw Notes.  
(i)    The Issuer has duly authorized the issuance, sale and delivery of its additional Senior Secured Notes due 2024 in the aggregate principal amount of $30,000,000, to be dated the First Delayed Draw Note Closing Date (except as and to the extent expressly provided in clause (iv) below), to mature on the Maturity Date, and to be substantially in the form of Exhibit A-2 hereto (all such notes originally issued pursuant to this clause (b)(i), or delivered in substitution or exchange for any thereof, being collectively called the “First Delayed Draw Notes” and individually a “First Delayed Draw Note”).  Notwithstanding anything to the contrary set forth herein, the First Delayed Draw Notes, upon their issuance, will be immediately separable and transferable in accordance with the terms hereof.

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(ii)    The Issuer has duly authorized the issuance, sale and delivery of its additional Senior Secured Notes due 2024 in the aggregate principal amount of $20,000,000, to be dated the Second Delayed Draw Note Closing Date (except as and to the extent expressly provided in clause (iv) below), to mature on the Maturity Date, and to be substantially in the form of Exhibit A-3 hereto (all such notes originally issued pursuant to this clause (b)(ii), or delivered in substitution or exchange for any thereof, being collectively called the “Second Delayed Draw Notes” and individually a “Second Delayed Draw Note”).  Notwithstanding anything to the contrary set forth herein, the Second Delayed Draw Notes, upon their issuance, will be immediately separable and transferable in accordance with the terms hereof.
(iii)    The Issuer has duly authorized the issuance, sale and delivery of its additional Senior Secured Notes due 2024 in the aggregate principal amount of $20,000,000, to be dated the Third Delayed Draw Note Closing Date, to mature on the Maturity Date, and to be substantially in the form of Exhibit A-4 hereto (all such notes originally issued pursuant to this clause (b)(iii), or delivered in substitution or exchange for any thereof, being collectively called the “Third Delayed Draw Notes” and individually a “Third Delayed Draw Note”).  Notwithstanding anything to the contrary set forth herein, the Third Delayed Draw Notes, upon their issuance, will be immediately separable and transferable in accordance with the terms hereof.
(iv)    Notwithstanding anything in this Agreement to the contrary, in the event the Issuer is unable to issue, sell and deliver the First Delayed Draw Notes and/or the Second Delayed Draw Notes because of the failure to satisfy the conditions precedent to the obligation of each Purchaser to purchase such Delayed Draw Notes set forth in Section 5.03(a) and/or Section 5.03(b), as the case may be, the Issuer, in its sole discretion, may request the issuance of the First Delayed Draw Notes and/or the Second Delayed Draw Notes, as applicable, in the Notice of Issuance (in compliance with Section 2.06) with respect to the issuance of the Second Delayed Draw Notes or the Third Delayed Draw Notes, as the case may be; provided, that the Purchasers shall have the right, but not the obligation, exercisable in their sole discretion, to purchase the entire amount or any lesser amount (including no amount) of such First Delayed Draw Notes or Second Delayed Draw Notes.  If the Purchasers agree, in their sole discretion, to purchase the entire amount or any lesser amount of such First Delayed Draw Notes and/or Second Delayed Draw Notes on the Second Delayed Draw Closing Date and/or the Third Delayed Draw Closing Date, as the case may be, the Required Purchasers shall notify the Issuer and the Collateral Agent of such determination (such notice, an “Extended Availability Notice”) promptly, and in any event not later than fifteen (15) days after the receipt by Purchasers of such Notice of Issuance and upon the issuance, sale and purchase of such First Delayed Draw Notes and/or Second Delayed Draw Notes, as applicable, the aggregate principal amount of such First Delayed Draw Notes and/or Second Delayed Draw Notes shall be as set forth in the applicable Extended Availability Notice and the First Delayed Draw Closing Date and/or the Second Delayed Draw Closing Date, as applicable, shall be the Second Delayed Draw Closing Date or the Third Delayed Draw Closing Date, as the case may be, for all purposes hereunder (including, for purposes of clarity, for purposes of calculating any Make-Whole Amount)].
(c)    Repayment of Notes; Prepayment of Notes.  After repayment or prepayment (in whole or in part) of any Notes, such amount repaid or prepaid (or any portion thereof) may not be re-borrowed.

2.02    Commitments to Purchase Delayed Draw Notes.
(a)    Subject to and upon the terms and conditions set forth herein, each Purchaser severally (and not jointly) agrees on the applicable Delayed Draw Note Closing Date to purchase Delayed Draw Notes (such Delayed Draw Notes to have a purchase price in the aggregate not greater than such Purchaser’s undrawn Delayed Draw Note Commitment with respect to such Delayed Draw Notes at such time) from the Issuer at a purchase price equal to 100% of the aggregate principal amount of the Delayed Draw Notes so 

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purchased, provided that under no circumstances shall the aggregate purchase price of the Delayed Draw Notes required to be purchased by any Purchaser, together with the aggregate purchase price of any Delayed Draw Notes previously purchased by such Purchaser, exceed the amount of such Purchaser’s Delayed Draw Note Commitment with respect to all such Delayed Draw Notes at such time.  Once drawn, no Delayed Draw Note Commitment may be redrawn, whether or not the Delayed Draw Notes related thereto have been repaid or prepaid.  Except as expressly provided in Section 2.01(b)(iv), (i) upon the expiration of the First Availability Period, the Delayed Draw Note Commitments with respect to the First Delayed Draw Notes shall automatically, without action by the Issuer or any Purchaser, be reduced to zero, (ii) upon the expiration of the Second Availability Period, the Delayed Draw Note Commitments with respect to the Second Delayed Draw Notes shall automatically, without action by the Issuer or any Purchaser, be reduced to zero and (iii) upon the expiration of the Third Availability Period, the Delayed Draw Note Commitments with respect to the Third Delayed Draw Notes shall automatically, without action by the Issuer or any Purchaser, be reduced to zero.
(b)    (i) The aggregate principal amount of First Delayed Draw Notes, if any, purchased by the Purchasers hereunder shall be equal to $30,000,000.
(ii)    The aggregate principal amount of Second Delayed Draw Notes, if any, purchased by the Purchasers hereunder shall be equal to $20,000,000.
(iii)    The aggregate principal amount of Third Delayed Draw Notes, if any, purchased by the Purchasers hereunder shall be equal to $20,000,000. 
(c)    All issuances of Delayed Draw Notes under this Agreement shall be made to the Purchasers pro rata on the basis of their Delayed Draw Note Commitments with respect to such Delayed Draw Notes.  It is understood that no Purchaser shall be responsible for any default by any other Purchaser of its obligation to purchase Delayed Draw Notes hereunder and that each Purchaser shall be obligated to purchase the Delayed Draw Notes required to be purchased by it hereunder regardless of the failure of any other Purchaser to fulfill its obligations under this Agreement.

2.03    Issuance and Sale of Securities.
(a)    On the Closing Date.  Subject to the terms and conditions set forth in this Agreement, on the Closing Date the Issuer will issue and sell the Initial Notes to be issued and sold by each of them hereunder to each of the Purchasers, severally and not jointly, and each of the Purchasers, severally and not jointly, shall purchase from the Issuer the Initial Notes to be purchased by each of them, in each case in amounts equal to the respective amounts set forth on Schedule II hereto opposite such Purchaser’s name, and in each case at the purchase prices set forth on Schedule II hereto.
(b)    On any Delayed Draw Note Closing Date.  Subject to the terms and conditions set forth in this Agreement, on each Delayed Draw Note Closing Date, the Issuer shall issue and sell Delayed Draw Notes in the aggregate amount specified in the Notice of Issuance (in compliance with Section 2.06) to each of the Purchasers, severally and not jointly, allocated on a pro rata basis in accordance with their respective Delayed Draw Note Commitments with respect to such Delayed Draw Notes, and each of the Purchasers, severally and not jointly, shall on such date purchase (for an aggregate purchase price not greater than such Purchaser’s undrawn Delayed Draw Note Commitment with respect to such Delayed Draw Notes) such Delayed Draw Notes from the Issuer on the Delayed Draw Note Closing Date specified in the Notice of Issuance, in each case at an aggregate purchase price equal to 100% of the aggregate principal amount of such Delayed Draw Notes, provided that under no circumstances shall the aggregate principal amount of Delayed Draw Notes so purchased by any Purchaser exceed the amount of such Purchaser’s Delayed Draw Note Commitment with respect to such Delayed Draw Notes at such time.

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(c)    The Issuer and Purchasers hereby acknowledge and agree that (i) the issue price (within the meaning of Section 1273(b) of the Internal Revenue Code) of each Note is determined pursuant to Section 1272-1275 of the Code and the Treasury Regulations thereunder and (ii) for United States federal income tax purposes, the aggregate issue price of the Initial Notes issued by the Issuer within the meaning of Section 1273(b) of the Internal Revenue Code, which issue price was determined pursuant to Section 1.1273-2(h)(1) of the Treasury Regulations, is equal to $76,625,000.00 and the aggregate issue price of the Warrants is equal to $2,250,000.00, each determined pursuant to Section 1.1273-2(h)(1) of the Treasury Regulations.  The parties hereto agree to report all income tax matters with respect to the issuance of the Notes consistent with the provisions of this Section 2.03(c) unless otherwise required due to a change in applicable Law.

2.04    Notes.  The Notes issued pursuant hereto shall evidence the principal amounts of all Notes sold hereunder, and the date and principal amount of each purchase and the sale of the Notes to the Purchasers by the Issuer, as well as each payment or prepayment made on account of the principal thereof, and, in each case, the resulting aggregate unpaid principal balance thereof, shall be recorded by each Purchaser on its books; provided, that failure by any Purchaser to make any such recordation shall not affect the obligations of the Issuer hereunder or under any Note.  Each such recordation by a Purchaser shall be conclusive and binding for all purposes in the absence of manifest error.

2.05    The Closing Date; Delayed Draw Note Closing Date.
(a)    Closing Date.  The sale and delivery of the Initial Notes to be issued pursuant to Section 2.01(a) shall take place at the offices of Akin Gump Straus Hauer & Feld LLP, One Bryant Avenue, New York, NY 10036, at 10:00 A.M. New York City time, on the Closing Date (or such other time and place as the parties hereto shall agree).  On the Closing Date, subject to satisfaction of the conditions set forth herein, the Issuer will deliver to each Purchaser an Initial Note or Initial Notes registered in such Purchaser’s name or in the name of its nominee, such Initial Notes to be duly executed and dated the Closing Date, in the aggregate principal amount of the Initial Notes allocated to such Purchaser as shown on Schedule II hereto, such Initial Notes to be in such denominations as such Purchaser may specify by two (2) Business Days’ prior written notice to the Issuer (or, in the absence of such notice, one Initial Note registered in such Purchaser’s name in such aggregate principal amount), against such Purchaser’s delivery to the Issuer of immediately available funds in the amount of such Purchaser’s portion of the aggregate purchase price of the Initial Notes so purchased.
(b)    Delayed Draw Note Closing Date.  The sale and delivery of any Delayed Draw Notes to be issued pursuant to Section 2.01(b) shall take place at the offices of Akin Gump Straus Hauer & Feld LLP, One Bryant Avenue, New York, NY 10036, at 10:00 A.M. New York City time on the Delayed Draw Note Closing Date specified for such issuance in the Notice of Issuance (or such other time and place as the parties hereto shall agree).  On any Delayed Draw Note Closing Date, subject to satisfaction of the conditions set forth herein, the Issuer will deliver to each Purchaser holding an undrawn Delayed Draw Note Commitment with respect to such Delayed Draw Notes, a Delayed Draw Note or Delayed Draw Notes registered in such Purchaser’s name or in the name of its nominee, such Delayed Draw Notes to be duly executed and dated the applicable Delayed Draw Note Closing Date, in an aggregate principal amount equal to the amount of Delayed Draw Notes allocated to such Purchaser on a pro rata basis in accordance with its respective Delayed Draw Note Commitment with respect to such Delayed Draw Notes (which in no event shall exceed the amount of such Purchaser’s Delayed Draw Note Commitment with respect to such Delayed Draw Notes at such time), such Delayed Draw Notes to be in such denominations as such Purchaser may specify by two (2) Business Days’ prior written notice to the Issuer (or, in the absence of such notice, one Delayed Draw Note registered in such Purchaser’s name in such aggregate principal amount), against such Purchaser’s delivery to the Issuer of immediately available funds in an amount equal to the aggregate principal amount of such Delayed Draw Notes so purchased by such Purchaser.

2.06    Notice of Issuance.  

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(a)    If the Issuer has determined in good faith that the conditions precedent to the obligation of each Purchaser to purchase the First Delayed Draw Notes set forth in Sections 5.02(a), 5.02(b) and 5.03(a) have been satisfied, the Issuer shall deliver to the Purchasers an irrevocable Notice of Issuance with respect to the issuance of the First Delayed Draw Notes, which shall be for the entire amount of such Delayed Draw Notes and must be given (a) not earlier than the beginning of the First Availability Period and (b) not later than 11:00 a.m. at least fifteen (15) days in advance of the requested First Delayed Draw Note Closing Date.
(b)    If the Issuer determines, in its sole discretion, to request the issuance of the Second Delayed Draw Notes or Third Delayed Draw Notes, the Issuer shall deliver to the Purchasers an irrevocable Notice of Issuance with respect to such proposed issuance, which shall be for the entire amount of such Delayed Draw Notes and must be given (a) not earlier than the beginning of the Second Availability Period or the Third Availability Period, as applicable, and (b) not later than 11:00 a.m. at least fifteen (15) days in advance of the requested Delayed Draw Note Closing Date; provided, however, that if such Notice of Issuance also includes a request for the issuance of the First Delayed Draw Notes (in addition to the request for the issuance of the Second Delayed Draw Notes) or the issuance of one or both of the First Delayed Draw Notes and the Second Delayed Draw Notes (in addition to the request for the issuance of the Third Delayed Draw Notes), in each case pursuant to Section 2.01(b)(iv), then such Notice of Issuance shall be for the entire amount of such Delayed Draw Notes and must be given (x) not earlier than the beginning of the Second Availability Period or the Third Availability Period, as applicable, and (y) not later than 11:00 a.m. at least thirty (30) days in advance of the requested Delayed Draw Note Closing Date.

2.07    Prepayments.
(a)    Voluntary Prepayments.  Subject to the payment of any Make-Whole Amount and/or Prepayment Premium as required under Section 2.07(d) and any other fees or amounts payable hereunder at such time, the Issuer may, upon notice to the Purchasers, voluntarily prepay the Initial Notes and/or any Delayed Draw Notes, in each case, in whole or in part; provided, that: (i) such notice must be received not later than 11:00 a.m. (Eastern time) three (3) Business Days prior to the date of prepayment; (ii) any such prepayment must be applied (A) first, to the Initial Notes, (B) then, to the First Delayed Draw Notes (if any), (C) then, to the Second Delayed Draw Notes (if any), and (D) then, to the Third Delayed Draw Notes (if any), in that order, and (iii) any such prepayment shall be in a principal amount of $20,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if less, the entire principal amount thereof then outstanding).  Each such notice shall specify the date and amount of such prepayment (which, for purposes of clarity, shall be applied to the Notes in the order described in clause (ii) above).  The Issuer shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein; provided that if such a notice expressly states that it is conditioned upon the effectiveness of other credit facilities or the closing of a specified transaction, such notice may be revoked by the Issuer (by written notice to the Purchasers on or prior to the specified effective date) only if such condition is not satisfied.  Any prepayment pursuant to this Section 2.07(a) shall be accompanied by (x) all accrued interest on the principal amount of the Notes prepaid, (y) any Make-Whole Amount and/or Prepayment Premium required under Section 2.07(d), if and to the extent applicable, in respect of the Notes prepaid and (z) all fees, costs, expenses, indemnities and other amounts due and payable hereunder at the time of prepayment.  Each such prepayment shall be applied (1) first, to all costs, expenses, indemnities and other amounts due and payable hereunder, (2) then, to payment of default interest, if any, (3) then, to payment of any Prepayment Premium required by Section 2.07(d), if and to the extent applicable, (4) then, to payment of any Make-Whole Amount required by Section 2.07(d), if and to the extent applicable, (5) then to payment of accrued interest, and (6) thereafter, to the payment of principal (which may be applied to reduce the quarterly payments of principal on the Notes being repaid pursuant to Section 2.08, in such order as Issuer may direct).

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(b)    [Reserved]. 
(c)    Mandatory Prepayment upon Change of Control.  Upon the occurrence of a Change of Control, the Issuer shall prepay all of the Notes together with all accrued and unpaid interest thereon, plus any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), if and to the extent applicable, plus all other Obligations then due and owing.  In connection with any prepayment pursuant to this Section 2.07(c), the Issuer shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations to the extent such laws and regulations are applicable in connection with such prepayment.
(d)    Make-Whole Amount; Prepayment Premium.  If all or any portion of the Notes is prepaid, or required to be prepaid pursuant to this Section 2.07, Article IX or otherwise, then, in all cases, the Issuer shall pay to the Purchasers, on the date on which such prepayment is prepaid or required to be prepaid, in addition to the other Obligations so prepaid or required to be prepaid, a Make-Whole Amount and/or a Prepayment Premium, in each case as and to the extent applicable.

2.08    Repayment of Notes; Delayed Amortization; Voluntary Termination of Delayed Draw Note Commitments.  
(a)    Subject to delayed amortization provisions provided in Section 2.08(b) and any application of a voluntary or mandatory prepayment pursuant to Section 2.07, the Issuer shall make eight (8) equal quarterly payments of the principal amount of the Notes commencing on the first Interest Payment Date on or following the 39th month anniversary of the Closing Date and continuing on the Interest Payment Date of each successive fiscal quarter thereafter (each such payment date, a “Payment Date”).
(b)    Delayed Amortization.  So long as no Default or Event of Default under any Note Document has occurred and is continuing, the Issuer may elect by written notice to the Collateral Agent and each Purchaser (such notice, a “Delayed Amortization Notice”) to postpone making in its entirety any quarterly amortization payments otherwise due pursuant to clause (a) above until the Maturity Date; provided, that: (A) as of the applicable Payment Date, Consolidated Net Sales for the trailing four-quarter period ended as of the last date of the Fiscal Quarter ending immediately prior to such Payment Date is at least equal to the Amortization Threshold for such trailing four-quarter period; and (B) the Collateral Agent and each Purchaser receives, together with such Delayed Amortization Notice, (1) a certificate signed by a Responsible Officer of Issuer certifying as to such Consolidated Net Sales and (2) evidence of such Consolidated Net Sales in form and substance reasonably satisfactory to the Required Purchasers.
(c)    All unpaid principal amount of the Notes, together with all accrued and unpaid interest thereon and all other outstanding Obligations, are due and payable in full on the Maturity Date.  
(d)    The Notes may be prepaid only in accordance with Section 2.07, except as provided in Article IX.
(e)    The Issuer may, upon written notice to the Purchasers, at any time prior to the end of the Second Availability Period or Third Availability Period, terminate in full the Second Delayed Draw Commitments or the Third Delayed Draw Commitments, respectively; provided, that: any such notice shall be received by the Purchasers not later than 11:00 a.m. one (1) Business Day prior to the date of termination set forth therein; provided, further, that the effectiveness of such notice may be expressly conditioned upon the effectiveness of other credit facilities or the closing of a specified transaction, and such notice may be revoked by the Issuer (by written notice to the Purchasers on or prior to the specified effective date) only if such condition is not satisfied and the applicable Availability Period has not expired.  

2.09    Interest.

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(a)    Pre-Default Rate.  Subject to the provisions of subsection (b) below, during any Interest Period, the Notes shall bear interest during such Interest Period on the outstanding principal amount thereof at a rate per annum at all times equal to the Pre-Default Rate.
(b)    Default Rate.  
(i)    Upon the occurrence of and during the continuance of any Event of Default under Section 9.01(a) (without regard to any applicable grace periods) or Section 9.01(f), during any Interest Period all outstanding Obligations shall thereafter bear interest during such Interest Period at an interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws,
(ii)    upon the request of the Required Purchasers, while any Event of Default exists, the Issuer shall, following such request, pay interest on all outstanding Notes at an interest rate per annum equal to the Default Rate to the fullest extent permitted by applicable Laws, and
(iii)    accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable in cash on demand.  
(c)    Interest Generally.  Interest on the Notes shall be due and payable in cash in arrears on each Interest Payment Date and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

2.10    Upfront Fee; Warrants.
(a)    Upfront Fee.  The Issuer and each Purchaser agrees that on the Closing Date, the Issuer shall pay to each Purchaser its ratable portion of an upfront fee in an aggregate amount equal to $1,125,000.00 (the “Upfront Fee”).  The Issuer agrees that the Upfront Fee shall be (i) paid in Dollars, (ii) fully earned upon the Closing Date, (iii) nonrefundable and (iv) in addition to, and not creditable against, any other fee, cost or expense payable under the Note Documents.  
(b)    Warrants.  Parent and each Purchaser agrees that on the Closing Date, Parent shall issue the Warrants to each of the Purchasers, in each case in form and substance reasonably satisfactory to the Purchasers.

2.11    Computation of Interest.
All computations of interest shall be made on the basis of a 360-day year and actual days elapsed.  Interest shall accrue on the Notes for the day on which the Notes are issued, and shall not accrue on the Notes, or any portion thereof, for the day on which the Notes or such portion is paid.

2.12    Payments Generally.
(a)    General.  All payments to be made by the Issuer shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff.  Subject to Section 9.03, all payments of principal, interest, any applicable Make-Whole Amount, any applicable Prepayment Premium and fees on the Notes and all other Obligations payable by any Note Party under the Note Documents shall be due, without any presentment thereof, directly to the Purchasers, at such office or bank account as may be specified by each Purchaser from time to time by written notice to the Issuer, with the Obligations paid on a pro rata basis (subject to the ultimate sentence of Section 2.07(a)); provided, that, if at the time of any such payment a Purchaser is a Defaulting Purchaser, such Defaulting Purchaser’s pro rata share of such payment shall be made directly to the Collateral Agent.  The Note Parties will make such payments in Dollars, 

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in immediately available funds not later than 2:00 p.m. on the date due, marked for attention as indicated, or in such other manner or to such other office or account as the Purchasers may from time to time direct in writing.  All payments received by the Purchasers after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Issuer shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest.
(b)    Obligations of Purchasers are Several.  The obligations of the Purchasers hereunder to purchase the Notes are several and not joint.  The failure of any Purchaser to purchase the aggregate principal amount of the Initial Notes or Delayed Draw Notes to be purchased by it on any date required hereunder shall not relieve any other Purchaser of its corresponding obligation to do so on such date, and no Purchaser shall be responsible for the failure of any other Purchaser to purchase the aggregate principal amount of the Initial Notes or Delayed Draw Notes to be purchased by it.
(c)    Funding Source.  Nothing herein shall be deemed to obligate any Purchaser to obtain the funds to purchase any Note in any particular place or manner or to constitute a representation by any Purchaser that it has obtained or will obtain the funds to purchase any Note in any particular place or manner.

2.13    No Purchase of Notes.  No Note Party or any of their respective Affiliates may acquire directly or indirectly any of the outstanding Notes, without the prior written consent of the Required Purchasers.

2.14    Sharing of Payments by Purchasers. 
If any Purchaser shall, by exercising any right of setoff or otherwise, obtain payment in respect of any principal of or interest on its portion of any Note or any applicable Make-Whole Amount and/or Prepayment Premium in connection therewith resulting in such Purchaser’s receiving payment of a proportion of the aggregate amount of the Note and accrued interest thereon and any applicable Make-Whole Amount and/or Prepayment Premium in connection therewith, greater than its pro rata share thereof as provided herein, then such Purchaser shall (a) notify the other Purchasers of such fact and (b) purchase for cash at face value, but without recourse, ratably from each of the other Purchasers such amount of the Notes held by each such other Purchaser (or interest therein), so that the benefit of all such payments shall be shared by the Purchasers ratably in accordance with the aggregate amount of principal of, accrued interest on and any Make-Whole Amount and/or Prepayment Premium in connection with, their respective portions of the Notes and other amounts owing them; provided, that:
(i)    if any such purchase is made by any Purchaser, and if such excess payment or part thereof is thereafter recovered from such purchasing Purchaser, the related purchases from the other Purchasers shall be rescinded ratably and the purchase price restored as to the portion of such excess payment so recovered, but without interest; and
(ii)    the provisions of this Section 2.14 shall not be construed to apply to (x) any payment made by or on behalf of the Issuer pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Purchaser) or (y) any payment obtained by a Purchaser as consideration for the assignment of any of its portion of the Notes to any assignee, other than an assignment to Parent or any Subsidiary (as to which the provisions of this Section 2.14 shall apply).

2.15    Defaulting Purchasers.
(a)    Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Purchaser becomes a Defaulting Purchaser, then, until such time as that Purchaser is no longer a Defaulting Purchaser, to the extent permitted by applicable Law:

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(i)    Waivers and Amendment.  The Defaulting Purchaser’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section 12.01.
(ii)    Reallocation of Payments.  Any payment of principal, interest, fees or other amount received for the account of that Defaulting Purchaser (whether voluntary or mandatory, at maturity, pursuant to Article IX or otherwise, and including any amounts made available to the Collateral Agent by that Defaulting Purchaser pursuant to Section 12.08), shall be applied at such time or times as may be determined by the Collateral Agent as follows: first, to the payment of any amounts owing by that Defaulting Purchaser to the Collateral Agent hereunder; second, as the Issuer may request (so long as no Default or Event of Default exists), to the purchase of any Notes in respect of which that Defaulting Purchaser has failed to fund its portion thereof as required by this Agreement, as determined by the Collateral Agent; third, if so determined by the Collateral Agent, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Purchaser to purchase the Notes under this Agreement; fourth, to the payment of any amounts owing to the Purchasers as a result of any judgment of a court of competent jurisdiction obtained by any Purchaser against that Defaulting Purchaser as a result of that Defaulting Purchaser’s breach of its obligations under this Agreement; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Issuer as a result of any judgment of a court of competent jurisdiction obtained by such Issuer against that Defaulting Purchaser as a result of that Defaulting Purchaser’s breach of its obligations under this Agreement; and sixth, to that Defaulting Purchaser or as otherwise directed by a court of competent jurisdiction; provided, that, if (x) such payment is a payment of the principal amount of any Notes in respect of which that Defaulting Purchaser has not fully funded its appropriate share and (y) such Notes were purchased at a time when the conditions set forth in Section 5.02 were satisfied or waived, such payment shall be applied solely to pay the Notes of all non-Defaulting Purchasers on a pro rata basis prior to being applied to the payment of any Notes of that Defaulting Purchaser.  Any payments, prepayments or other amounts paid or payable to a Defaulting Purchaser that are applied (or held) to pay amounts owed by a Defaulting Purchaser pursuant to this Section 2.15(a)(ii) shall be deemed paid to and redirected by that Defaulting Purchaser, and each Purchaser irrevocably consents hereto.
(b)    Defaulting Purchaser Cure.  If a Defaulting Purchaser is no longer a Defaulting Purchaser pursuant to the definition thereof, or the Issuer and the Collateral Agent agree in writing in their sole discretion that a Defaulting Purchaser should no longer be deemed to be a Defaulting Purchaser, the Collateral Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, that Purchaser will cease to be a Defaulting Purchaser; provided, that, no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Issuer while that Purchaser was a Defaulting Purchaser; provided, further, that, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Purchaser to Purchaser will constitute a waiver or release of any claim of any party hereunder arising from that Purchaser having been a Defaulting Purchaser.

ARTICLE III 
 
TAXES 

3.01    Taxes.  
(a)    All payments of principal and interest pursuant to any Note Document and all other amounts payable hereunder shall be made free and clear of and without deduction for any present or future income, excise, stamp, documentary, property or franchise taxes and other taxes, fees, duties, levies, assessments, withholdings or other charges of any nature whatsoever (including interest and penalties thereon) imposed 

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by any Governmental Authority, excluding (x) taxes imposed on or measured by net income imposed by the jurisdiction under which a Recipient is organized or in which its principal office or applicable lending office is located, (y) U.S. federal withholding taxes imposed on amounts payable to or for the account of a Recipient with respect to an applicable interest in any Note or Delayed Draw Note Commitment pursuant to a Law in effect on the date on which such Recipient acquires such interest in the Note or Delayed Draw Note Commitment (unless such acquisition occurs at the request of the Issuer pursuant to Section 10.04), except in each case to the extent that, pursuant to this Section 3.01, amounts with respect to such taxes were payable by such Recipient’s assignor immediately before such Recipient became a party hereto and (z) U.S. federal withholding tax imposed under FATCA (all non-excluded items being called “Taxes”).  If any withholding or deduction of any Taxes from any payment by or on account of any obligation of any Note Party hereunder is required in respect of any Taxes pursuant to any applicable Law, then (i) the applicable Withholding Agent shall be entitled to make such withholding or deduction and shall pay directly to the relevant Governmental Authority the full amount required to be so withheld or deducted, (ii) the applicable Withholding Agent shall promptly forward to the Recipient an official receipt or other documentation satisfactory to the Recipient evidencing such payment to such Governmental Authority and (iii) the sum payable by the applicable Note Party shall be increased by such additional amount or amounts as is necessary to ensure that the net amount actually received by the Recipient will equal the full amount such Recipient would have received had no such withholding or deduction been required.
(b)    The Issuer shall indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Taxes with respect to any Note Document or any payment thereunder, (“Indemnified Taxes”) (including Indemnified Taxes imposed on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment by such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.
(c)    Each Purchaser that is not a U.S. Person that purports to become an assignee of an interest pursuant to Section 12.06 after the Closing Date (each such Purchaser a “Foreign Purchaser”) shall execute and deliver to the Issuer on or prior to the date that such Purchaser becomes a party hereto (and from time to time thereafter upon the reasonable request of the Issuer), one or more (as the Issuer may reasonably request) duly completed and executed copies of Internal Revenue Service Forms W-8ECI, W-8BEN, W-8BEN-E, W-8IMY (as applicable) and other applicable forms, certificates or documents prescribed by the United States Internal Revenue Service or reasonably requested by the Issuer certifying as to such Purchaser’s entitlement to any available exemption from or reduction of withholding or deduction of taxes. Each Purchaser that is a U.S. Person shall execute and deliver to the Issuer on or prior to the date such Purchaser becomes a party hereto (and from time to time thereafter upon the reasonable request of the Issuer), one or more (as the Issuer may reasonably request) duly completed and executed copies of Internal Revenue Service Form W-9 certifying that such Purchaser is not subject to United States backup withholding.  The Issuer shall not be required to pay additional amounts to any Purchaser pursuant to this Section 3.01 with respect to taxes attributable to the failure of such Purchaser to comply with this paragraph.
(d)    Each Purchaser agrees that if any form or certification it previously delivered pursuant to this Section 3.01 expires or becomes obsolete or inaccurate in any respect, it shall promptly update such form or certification or promptly notify the Issuer of its inability to do so.
(e)    If, due to a change in Sections 871(h) or 881(c) of the Internal Revenue Code (or any successor provisions) after the date a Person becomes an Indirect Purchaser under this Agreement, any withholding is required to be made by a Purchaser or any Affiliate thereof to such Indirect Purchaser attributable to payments made by any Note Party hereunder, such Note Party shall pay to such Purchaser such additional amount or amounts as is necessary to ensure that the net amount actually received by any Indirect Purchaser will equal the full amount such Indirect Purchaser would have received had no such withholding or deduction been required; provided that in the event additional amounts are due in respect of 

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an Indirect Purchaser, immediately before such Indirect Purchaser transfers a direct or indirect interest in a Purchaser to a transferee and withholding is required to be made by a Purchaser or any Affiliate to such transferee Indirect Purchaser attributable to payments made by any Note Party hereunder, a Note Party shall be required to pay additional amounts pursuant to this Section in an amount not exceeding the additional amounts payable prior to the transfer by the transferor Indirect Purchaser; provided, further that no such additional amounts shall be payable by a Note Party to the extent such withholding could have been avoided by any Indirect Purchaser and each entity in the chain of ownership between such Indirect Purchaser and the Purchaser providing Internal Revenue Service Forms W-9, W-8ECI, W-8BEN, W-8BEN-E or W-8IMY (as applicable) or any successor forms thereto, to the Purchaser or other entity in the chain of ownership between such Indirect Purchaser and the Purchaser, as applicable.

3.02    Survival.
All of the Note Parties’ obligations under this Article III shall survive any transfer of the Notes, the termination of the Delayed Draw Note Commitments, the repayment, satisfaction or discharge of the Obligations hereunder and the resignation or replacement of the Collateral Agent.

ARTICLE IV 
 
GUARANTY

4.01    The Guaranty.
Each of the Guarantors hereby jointly and severally guarantees to each Purchaser and the Collateral Agent as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations of the Issuer and any other Guarantor in respect of the Notes issued by the Issuer in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof.  The Guarantors hereby further agree that if any of the Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or otherwise) in accordance with the terms of such extension or renewal.
Notwithstanding any provision to the contrary contained herein or in any other of the Note Documents, the obligations of each Guarantor under this Agreement and the other Note Documents shall be limited to an aggregate amount equal to the largest amount that would not render such obligations subject to avoidance under the Debtor Relief Laws or any comparable provisions of any applicable state or federal law.

4.02    Obligations Unconditional.
The obligations of the Guarantors under Section 4.01 are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Note Documents, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Obligations, and, to the fullest extent permitted by applicable law, irrespective of any law or regulation or other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 4.02 that the obligations of the Guarantors hereunder shall be absolute and unconditional under any and all circumstances.  Each Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement or contribution against the Issuer or any other Guarantor for amounts paid under this Article IV until such time as the Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been paid in full and all Delayed Draw Note Commitments have expired or been terminated.  Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional as described above:

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(a)    at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Obligations shall be extended, or such performance or compliance shall be waived;
(b)    any of the acts mentioned in any of the provisions of any of the Note Documents, or any other agreement or instrument referred to in the Note Documents shall be done or omitted;
(c)    the maturity of any of the Obligations shall be accelerated, or any of the Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Note Documents, or any other agreement or instrument referred to in the Note Documents shall be waived or any other guarantee of any of the Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;
(d)    any Lien granted to, or in favor of, the Collateral Agent or any Purchaser as security for any of the Obligations shall fail to attach or be perfected; or
(e)    any of the Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).
With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that the Collateral Agent or any Purchaser exhaust any right, power or remedy or proceed against any Person under any of the Note Documents, or any other agreement or instrument referred to in the Note Documents, or against any other Person under any other guarantee of, or security for, any of the Obligations.

4.03    Reinstatement.
The obligations of the Guarantors under this Article IV shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of any Person in respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and each Guarantor agrees that it will indemnify the Collateral Agent and each Purchaser on demand for all reasonable and documented out-of-pocket costs and expenses (but limited, in the case of legal counsel, to the reasonable and documented out-of-pocket fees, charges and disbursements of one primary counsel for the Collateral Agent and the Purchasers (taken as a whole), and, of a single local counsel to the Collateral Agent and the Purchasers (taken as a whole) in each relevant jurisdiction (and, in the case of an actual or perceived conflict of interest where the party affected by such conflict informs the Issuer of such conflict and thereafter retains its own counsel, of one additional firm of counsel for all such affected parties (taken as a whole))) incurred by the Collateral Agent or such Purchaser in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

4.04    Certain Additional Waivers.
Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the Obligations, except through the exercise of rights of subrogation pursuant to Section 4.02 and through the exercise of rights of contribution pursuant to Section 4.06.

4.05    Remedies.
The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors, on the one hand, and the Collateral Agent and the Purchasers, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 9.02 (and shall be deemed to have become automatically due and payable in the 

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circumstances provided in said Section 9.02) for purposes of Section 4.01 notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by the Guarantors for purposes of Section 4.01.  The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Purchasers may exercise their remedies thereunder in accordance with the terms thereof.

4.06    Rights of Contribution.
The Guarantors agree among themselves that, in connection with payments made hereunder, each Guarantor shall have contribution rights against the other Guarantors as permitted under applicable law.  Such contribution rights shall be subordinate and subject in right of payment to the obligations of such Guarantors under the Note Documents and no Guarantor shall exercise such rights of contribution until all Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been paid in full and all Delayed Draw Note Commitments have expired or been terminated.

4.07    Guarantee of Payment; Continuing Guarantee.
The guarantee in this Article IV is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Obligations whenever arising.

4.08    Limitation of Liability of the Norwegian Guarantor.
The obligations and liabilities of the Norwegian Guarantor under this Agreement shall be limited to the extent necessary to comply with the mandatory provisions of law applicable to it, including sections 8-7 to 8-10 cf. section 1-3 of the Norwegian Companies Act regarding unlawful financial assistance and other restrictions on a Norwegian limited liability company’s ability to grant security in favor of other group companies.  The obligations of the Norwegian Guarantor under this Agreement shall always be interpreted so as to make the Norwegian Guarantor liable to the fullest extent permitted by the Norwegian Companies Act.

ARTICLE V 
 
CONDITIONS PRECEDENT

5.01    Conditions to Effectiveness of Agreement and Purchase of Initial Notes.
This Agreement shall become effective upon, and the obligation of each Purchaser to purchase the Initial Notes to be purchased by it on the Closing Date is subject to, satisfaction of the following conditions precedent:
(a)    Note Documents.  Receipt by the Purchasers of executed counterparts of this Agreement and the other Note Documents, including, for purposes of clarity, the Collateral Documents other than as expressly described in Section 7.20, each properly executed by a Responsible Officer of the signing Note Party, in each case in form and substance satisfactory to the Purchasers.
(b)    Opinions of Counsel.  Receipt by the Collateral Agent and the Purchasers of favorable opinions (i) of legal counsel to the Issuer, and (ii) of legal counsel to the Collateral Agent and the Purchasers with respect to Norwegian law and English law, in each case (x) addressed to the Collateral Agent and the Purchasers, (y) dated as of the Closing Date, and (z) in form and substance reasonably satisfactory to the Collateral Agent and the Purchasers and their counsel.
(c)    Financial Statements.  The Purchasers shall have received the Audited Financial Statements, the Interim Financial Statements and such other reports, statements and due diligence items as any Purchaser shall request.

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(d)    No Material Adverse Change.  There shall not have occurred since December 31, 2018 any event or condition that has had or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.
(e)    Litigation.  There shall not exist any action, suit, investigation, claim, audit or proceeding pending or to the knowledge of any Responsible Officer of any Note Party, threatened, in any court or before an arbitrator or Governmental Authority that could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, and to the knowledge of any Responsible Officer of any Note Party, there is no fact, circumstance or condition which is reasonably expected to form the basis for any such investigation, claim, audit, action or proceeding.
(f)    Organization Documents, Resolutions, Etc.  Receipt by the Purchasers of the following, each of which shall be originals or facsimiles, in form and substance satisfactory to the Purchasers and their legal counsel:
(i)    copies of the Organization Documents of each Note Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by the chief executive officer or a secretary or assistant secretary of such Note Party to be true and correct as of the Closing Date;
(ii)    copies of the Borrowing Resolutions and such other certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Note Party as the Purchasers may reasonably require, evidencing the approval of this Agreement and the other Note Documents to which such Note Party is a party and the transactions contemplated thereby (including the issuance, sale and delivery of the Initial Notes), and the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Note Documents to which such Note Party is a party; and
(iii)    certificates of good standing or equivalent status to the extent available in such jurisdictions certified by the Secretary of State of the equivalent thereof as of a date no earlier than thirty (30) days prior to the Closing Date, and such other documents and certifications as the Purchasers may reasonably require, evidencing that each Note Party is duly organized or formed, and is validly existing, in good standing (or equivalent status) and qualified to engage in business in its jurisdiction of organization or formation.
(g)    Perfection and Priority of Liens.  Receipt by the Purchasers of the following:
(i)    results of searches of Uniform Commercial Code filings in the jurisdiction of formation of each Note Party or where a filing would need to be made in order to perfect the Collateral Agent’s security interest in the Collateral, copies of the financing statements on file in such jurisdictions, and evidence that no Liens exist other than Permitted Liens reasonably satisfactory to the Purchasers;
(ii)    UCC financing statements for each appropriate jurisdiction as is necessary, in the Collateral Agent’s sole discretion, to perfect the Collateral Agent’s first priority security interest in the Collateral, in form and substance reasonably satisfactory to the Collateral Agent;
(iii)    all certificates evidencing any certificated Equity Interests pledged to the Collateral Agent pursuant to the Pledge Agreement, together with duly executed in blank and undated stock powers attached thereto;

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(iv)    results of searches of ownership of, and Liens on, the IP Rights of each Note Party in the appropriate United States governmental offices;
(v)    duly executed notices of grant of security interest in the form required by the Security Agreement as are necessary, in the Collateral Agent’s sole discretion, to perfect the Collateral Agent’s security interest in the IP Rights of the Note Parties.
(vi)    duly executed consent of each of (A) the Norwegian Guarantor to the pledge and potential future assignment of all of its right, title and interest in, to and under the Intercompany License Agreement to the Collateral Agent for the benefit of the Purchasers and the other Secured Parties and (B) the Issuer to the pledge and potential future assignment of all of its right, title and interest in, to and under the Intercompany License Agreement to the Collateral Agent for the benefit of the Purchasers and the other Secured Parties, in each case in form and substance reasonably satisfactory to the Collateral Agent;
(vii)    [Reserved]; 
(viii)    the Norwegian Security Documents shall have been duly executed, and all notices, acknowledgements and registration forms required for the perfection of the first priority security interest thereunder shall have been duly executed and delivered to the Collateral Agent for filing on or immediately following the Closing Date, in form and substance reasonably satisfactory to the Collateral Agent; and
(ix)    such documents or evidence as are required to be delivered on the execution of the English Debenture pursuant to the English Debenture, including all documents required to be delivered pursuant to clause 8.1 (Deposit of title documents) , in form and substance reasonably satisfactory to the Collateral Agent.
(h)    Know-Your-Customer.  Receipt by the Collateral Agent and the Purchasers of all documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Act.
(i)    Evidence of Insurance.  Receipt by the Collateral Agent of copies of certificates of insurance of the Note Parties, evidencing product liability, general liability and casualty insurance meeting the requirements set forth in the Note Documents and which are in full force and effect, and appropriate evidence naming the Collateral Agent as additional insured (in the case of product liability and general liability insurance) or lender loss payee (in the case of property insurance) on behalf of the Purchasers (such evidence to be in form and substance reasonably satisfactory to the Purchasers).
(j)    Closing Certificate.  Receipt by the Purchasers of a certificate signed by a Responsible Officer of Parent certifying, as of the Closing Date, (i) that the conditions specified in Sections 5.01(d), (e), and (l) and Sections 5.02(a) and (b) have been satisfied, (ii) that Parent and its Subsidiaries (after giving effect to the transactions contemplated hereby and the incurrence of Indebtedness related thereto) are Solvent on a consolidated basis, (iii) that any and all Indebtedness under the Existing Athyrium Credit Facility will be repaid in full concurrently with the issuance, sale and delivery of the Initial Notes on the Closing Date and that Parent and its Subsidiaries have no Indebtedness for borrowed money, other than Indebtedness permitted to exist under Section 8.03(b), (iv) that neither Parent nor any Subsidiary has outstanding any Disqualified Capital Stock and (v) as true and complete an attached description of all intercompany Indebtedness of Parent and its Subsidiaries (both before and after giving effect to the application of the proceeds of the Initial Notes).

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(k)    Existing Indebtedness.  Any and all Indebtedness under the Existing Athyrium Credit Facility, shall be repaid in full and any and all Liens and security interests related thereto shall be released and discharged on or prior to the Closing Date, and the Collateral Agent and the Purchasers shall have received (i) a copy of the payoff letter in respect of the Indebtedness outstanding under the Existing Athyrium Credit Facility from Athyrium Opportunities III Acquisition LP, fully executed by the parties thereto, evidencing the repayment in full of such Indebtedness pursuant thereto concurrently with the issuance, sale and delivery of the Initial Notes on the Closing Date, and (ii) evidence of the release and discharge of any and all Liens and security interests related thereto.  
(l)    Governmental and Third Party Approvals.  Parent and its Subsidiaries shall have received all material governmental, shareholder and third party consents and approvals necessary in connection with the transactions contemplated by this Agreement and the other Note Documents, each of which is in full force and effect, and all applicable waiting periods shall have expired without any action being taken by any Person that could reasonably be expected to restrain, prevent or impose any material adverse conditions on Parent or any of its Subsidiaries or such other transactions or that could seek to threaten any of the foregoing, and no law or regulation shall be applicable which could reasonably be expected to have any such effect.
(m)    Corporate Structure and Capitalization.  The capital and ownership structure and the equity holder arrangements of Parent on the Closing Date, on a pro forma basis after giving effect to the transactions contemplated by the Note Documents, shall be reasonably satisfactory to the Purchasers.
(n)    Letter of Direction.  Receipt by the Purchasers of a satisfactory letter of direction containing funds flow information, with respect to the proceeds of the Initial Notes on the Closing Date.
(o)    Fees.  Receipt by the Collateral Agent and the Purchasers of any fees required to be paid on or before the Closing Date.
(p)    Attorney Costs; Due Diligence Expenses.  The Issuer shall have paid all reasonable and documented out-of-pocket fees, charges and disbursements of counsel to the Purchasers and Collateral Agent and their respective Affiliates in connection with the preparation, negotiation, execution and delivery of this Agreement and the other Note Documents dated as of the Closing Date and the issuance and purchase of the Initial Notes, and all reasonable and documented out-of-pocket due diligence expenses of the Collateral Agent and the Purchasers and their respective Affiliates, in each case, incurred prior to the Closing Date, plus such additional amounts of such reasonable and documented out-of-pocket fees, charges and disbursements as shall constitute their reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided, that such estimate shall not thereafter preclude a final settling of accounts between the Issuer, the Collateral Agent and the Purchasers), it being understood and agreed that the Issuer’s obligations under this Section 5.01(p) shall not exceed $250,000.  
(q)    Completion of Due Diligence.  The Purchasers shall have (i) completed their due diligence, in form and scope satisfactory to the Purchasers, on Parent and its Subsidiaries and (ii) received investment committee or similar approval for the transactions contemplated by this Agreement.
(r)    Other.  Receipt by the Purchasers of the Warrants, duly executed by Parent, and the receipt by the Collateral Agent and the Purchasers of such other documents, instruments, agreements and information as reasonably requested by the Collateral Agent or any Purchaser, including, but not limited to, information regarding litigation, tax, accounting, labor, insurance, pension liabilities (actual or contingent), real estate leases, material contracts, debt agreements, property ownership, environmental matters, contingent liabilities and management of Parent and its Subsidiaries; such information may include, if requested by the Collateral Agent, asset appraisal reports and written audits of accounts receivable, inventory, payables, controls and systems.

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Without limiting the generality of the provisions of the last paragraph of Section 10.03, for purposes of determining compliance with the conditions specified in this Section 5.01, each Purchaser that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Purchaser unless the other Purchasers shall have received notice from such Purchaser prior to the proposed Closing Date specifying its objection thereto.

5.02    Conditions to all Purchases of Notes.
The obligation of each Purchaser to purchase any Notes to be purchased by it is subject to the following conditions precedent:
(a)    The representations and warranties of the Issuer and each other Note Party contained in Article VI or any other Note Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality or reference to Material Adverse Effect) on and as of the Closing Date or on and as of the Delayed Draw Note Closing Date, as applicable, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 5.02, the representations and warranties contained in clauses (a) and (b) of Section 6.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01 as of the Closing Date or as of the Delayed Draw Note Closing Date, as applicable.
(b)    No Default shall exist, or would result from such proposed issuance of the Initial Notes or the Delayed Draw Notes, as applicable, or from the application of the proceeds thereof.
(c)    Receipt by the Purchasers of (i) with respect to the purchase of the Initial Notes, the certificate described in Section 5.01(j), and (ii) with respect to the purchase of the Delayed Draw Notes, a certificate signed by a Responsible Officer of Parent certifying, as of the applicable Delayed Draw Note Closing Date, that the conditions specified in Sections 5.02(a) and (b) above have been satisfied.
By issuing and delivering the Notes, the Issuer shall be deemed to represent and warrant that the conditions specified in Sections 5.02(a) and (b) above have been satisfied on and as of the Closing Date or on and as of the Delayed Draw Note Closing Date, as applicable.

5.03    Conditions to Purchase of Delayed Draw Notes.
The obligation of each Purchaser to purchase the Delayed Draw Notes to be purchased by it hereunder is subject to the following conditions precedent (in addition to those in Section 5.02):

(a)    First Delayed Draw Notes.  In the case of the First Delayed Draw Notes, Consolidated Net Sales for the fiscal quarter ended December 31, 2019 shall have been at least $9,000,000, and the Purchasers shall have received on or before the date of delivery of a valid Notice of Issuance pursuant to Section 5.03(d), a certificate signed by a Responsible Officer of Parent certifying as to the Consolidated Net Sales for such fiscal period and the satisfaction of the conditions specified in this Section 5.03(a).  
(b)    Second Delayed Draw Notes.  In the case of the Second Delayed Draw Notes, either (x) Consolidated Net Sales for the fiscal quarter ended March 31, 2020 shall have been at least $11,000,000 or, alternatively, (y) Consolidated Net Sales for the six (6) months ended June 30, 2020 shall have been at least $25,000,000, and the Purchasers shall have received on or before the date of delivery of a valid Notice of Issuance pursuant to Section 5.03(d), a certificate signed by a Responsible Officer of Parent certifying as to the Consolidated Net Sales for such fiscal period and the satisfaction of the conditions specified in this Section 5.03(b).

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(c)    Third Delayed Draw Notes.  In the case of the Third Delayed Draw Notes, either (x) Consolidated Net Sales for the fiscal quarter ended September 30, 2020 shall have been at least $14,500,000 or, alternatively, (y) Consolidated Net Sales for the six (6) months ended December 31, 2020 shall have been at least $31,000,000, and the Purchasers shall have received on or before the date of delivery of a valid Notice of Issuance pursuant to Section 5.03(d), a certificate signed by a Responsible Officer of Parent certifying as to the Consolidated Net Sales for such fiscal period and the satisfaction of the conditions specified in this Section 5.03(c).
(d)    Notice of Issuance; Related Notices.  The Purchasers shall have received a valid Notice of Issuance meeting the requirements of Section 2.06 with respect to the issuance of the Delayed Draw Notes to be effected on the Delayed Draw Note Closing Date applicable thereto.

ARTICLE VI 
 
REPRESENTATIONS AND WARRANTIES
The Note Parties, jointly and severally, represent and warrant to the Collateral Agent and the Purchasers, that, as of the Closing Date after giving effect to the issuance and sale of the Initial Notes and as of each Bringdown Date (both with and without giving effect to the issuance and sale of any Notes issued on such date, if any):

6.01    Existence, Qualification and Power.
Each Note Party and each of its Subsidiaries (a) is duly organized or formed, validly existing and (to the extent applicable under any such laws) in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own, license, operate or lease its assets and carry on its business as currently conducted and (ii) execute, deliver and perform its obligations under the Note Documents to which it is a party, and (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease, license or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

6.02    Authorization; No Contravention.
The execution and delivery by each Note Party of, and the performance by each Note Party of its obligations under, each Note Document to which such Person is party have been duly authorized by all necessary corporate or other organizational action, and do not (a) contravene the terms of any of such Person’s Organization Documents, (b) conflict with in any material respect or result in any material breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any material order, judgment, injunction, writ, decree, determination or award of any Governmental Authority or any arbitral award to which such Person or any of its properties are subject, or (c) violate in any material respect any Law or regulation (including Regulation U or Regulation X issued by the FRB).

6.03    Governmental Authorization; Other Consents.
No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution and delivery by any Note Party of, and the performance by any Note Party of its obligations under, this Agreement or any other Note Document, other than (a) those that have already been obtained and are in full force and effect, (b) filings to perfect the Liens and security interests created by the Collateral Documents and (c) the filing of any applicable notices under securities laws.

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6.04    Binding Effect.
Each Note Document has been duly executed and delivered by each Note Party that is party thereto.  Each Note Document constitutes a legal, valid and binding obligation of each Note Party that is party thereto, enforceable against each such Note Party in accordance with its terms, subject to applicable Debtor Relief Laws or other Laws affecting creditors’ rights generally and subject to general principles of equity.

6.05    Financial Statements; No Material Adverse Effect; Exchange Act Documents.
(a)    The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, (ii) fairly present in all material respects the financial condition of Parent and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (iii) show all material indebtedness and other liabilities, direct or contingent (to the extent required by GAAP), of Parent and its Subsidiaries as of the date thereof, including material liabilities for taxes, material commitments and Indebtedness.
(b)    The Interim Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, (ii) fairly present in all material respects the financial condition of Parent and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments, and (iii) show all material indebtedness and other liabilities, direct or contingent (to the extent required by GAAP), of Parent and its Subsidiaries as of the date thereof, including material liabilities for taxes, material commitments and Indebtedness.
(c)    From the date of the Audited Financial Statements to and including the Closing Date, there has been no Disposition by any Note Party or any Subsidiary, or any Involuntary Disposition, of any material part of the business or property of the Note Parties and their respective Subsidiaries, taken as a whole, and no purchase or other acquisition by any of them of any business or property (including any Equity Interests of any other Person) material to the Note Parties and their respective Subsidiaries taken as a whole, in each case, which is not reflected in the foregoing financial statements or in the notes thereto and has not otherwise been disclosed in writing to the Purchasers on or prior to the Closing Date or publicly filed under applicable securities laws.
(d)    The financial statements delivered pursuant to Section 7.01(a) and (b) have been prepared in accordance with GAAP (except as may otherwise be permitted under Section 7.01(a) or (b), as applicable) and present fairly in all material respects (on the basis disclosed in the footnotes to such financial statements) the consolidated financial condition, results of operations and cash flows of Parent and its Subsidiaries as of the dates thereof and for the periods covered thereby.
(e)    Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

6.06    Litigation.
There are no actions, suits, proceedings, claims, investigations, audits or disputes pending or, to the knowledge of any Responsible Officer of any Note Party, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against any Note Party or any of its Subsidiaries or against any of their properties or revenues (including involving allegations of sexual harassment or misconduct by any officer of Parent or any Subsidiary) that (a) challenge the legality, validity or enforceability of this Agreement or any other Note Document, 

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or the consummation of any of the transactions contemplated hereby or (b) either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

6.07    No Default.
(a)    Neither any Note Party nor any Subsidiary is in default under or with respect to any Contractual Obligation that could reasonably be expected to have a Material Adverse Effect.  
(b)    No Default has occurred and is continuing.

6.08    Ownership of Property; Liens.
(a)    Each Note Party and its Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, free and clear of any and all Liens except Permitted Liens, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(b)    Each Note Party and its Subsidiaries (i) is the legal and beneficial owner of, or has the rights it purports to have, to use, and, except as permitted by Section 8.09, has the power to transfer, each item of personal property upon which it purports to grant a Lien under any Collateral Document, free and clear of any and all Liens except Permitted Liens, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect and (ii)(A) as of the Closing Date, has no Deposit Accounts other than the Deposit Accounts described in the perfection certificates delivered to the Purchasers pursuant to Section 5.01(a), and (B) subject to Section 7.16(b), as of any Bringdown Date, has no Deposit Accounts other than (1) Deposit Accounts that are governed by a Deposit Account Control Agreement and (2) Excluded Accounts.  

6.09    Environmental Compliance.
Except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect:
(a)    Each of the Facilities and all operations at the Facilities are in compliance with all applicable Environmental Laws, and there is no violation of any Environmental Law with respect to the Facilities or the Businesses, and, to the knowledge of any Responsible Officer of any Note Party, there are no conditions relating to the Facilities or the Businesses that could reasonably be expected to give rise to liability under any applicable Environmental Laws.
(b)    None of the Facilities contains, or, to the knowledge of any Responsible Officer of any Note Party, has previously contained, any Hazardous Materials at, on or under the Facilities in amounts or concentrations that constitute or constituted a violation of, or could reasonably be expected to give rise to liability under, Environmental Laws.
(c)    Neither any Note Party nor any Subsidiary has received any written or verbal notice of, or inquiry from any Governmental Authority regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Facilities or the Businesses, nor does any Responsible Officer of any Note Party have knowledge that any such notice is being threatened.
(d)    Hazardous Materials have not been transported or disposed of from the Facilities, or generated, treated, stored or disposed of at, on or under any of the Facilities or any other location, in each case by or at the direction of any Note Party or any Subsidiary in violation of, or in a manner that would be reasonably likely to give rise to liability under, any applicable Environmental Law.

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(e)    No judicial proceeding or governmental or administrative action is pending or, to the knowledge of any Responsible Officer of any Note Party, threatened, under any Environmental Law to which any Note Party or any Subsidiary is or will be named as a party, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to any Note Party, any Subsidiary, the Facilities or the Businesses.
(f)    There has been no release or, to the knowledge of any Responsible Officer of any Note Party, threat of release of Hazardous Materials at or from the Facilities, or arising from or related to the operations (including, without limitation, disposal) of any Note Party or any Subsidiary in connection with the Facilities or otherwise in connection with the Businesses, in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws.

6.10    Insurance.
(a)    The properties of the Note Parties and their Subsidiaries are insured with property and general liability insurance (including products liability insurance) from financially sound and reputable insurance companies that are not Affiliates of such Persons, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Note Party or the applicable Subsidiary operates.  Such insurance coverage of the Note Parties and their Subsidiaries as in effect on the Closing Date is outlined as to carrier, policy number, expiration date, type, coverage amounts and deductibles on Schedule 6.10 to the Disclosure Letter.
(b)    Parent and its Subsidiaries maintain, if available, fully paid flood hazard insurance on all real property that is located in a special flood hazard area and that constitutes Collateral on such terms and in such amounts as required by The National Flood Insurance Reform Act of 1994 or as otherwise required by the Collateral Agent or the Required Purchasers.

6.11    Taxes.
The Note Parties and their Subsidiaries have filed all federal, state and other material tax returns and reports required to be filed, and have paid all federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed tax assessment against any Note Party or any Subsidiary that would, if made, have a Material Adverse Effect.  Neither any Note Party nor any Subsidiary thereof is party to any tax sharing agreement with any Person that is not a Note Party.

6.12    ERISA Compliance.
(a)    Except as could not reasonably be expected to have a Material Adverse Effect, each Plan is in compliance with the applicable provisions of ERISA, the Internal Revenue Code and other federal or state laws. As of the Closing Date, each Plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code has a favorable opinion letter on which it is entitled to rely.  To the knowledge of any Responsible Officer of any of the Note Parties, nothing has occurred that could reasonably be expected to cause the loss of tax-qualified status of any Plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code.
(b)    There are no pending or, to the knowledge of any Responsible Officer of any Note Party, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect.  There has been no prohibited transaction 

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or violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect.
(c)    Except as could not reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event has occurred and neither Parent nor any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan, (ii) Parent and each ERISA Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been applied for or obtained, (iii) as of the most recent valuation date for any Pension Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Internal Revenue Code) is sixty percent (60%) or higher and neither Parent nor any ERISA Affiliate knows of any facts or circumstances that could reasonably be expected to cause the funding target attainment percentage for any such plan to drop below sixty percent (60%) as of the next valuation date, (iv) neither Parent nor any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are unpaid, (v) neither Parent nor any ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA, and (vi) no Pension Plan has been terminated by the PBGC, and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Pension Plan.
(d)    Neither Parent nor any ERISA Affiliate has established or otherwise has any liability with respect to a “welfare plan”, as such term is defined in Section 3(1) of ERISA, that either provides post-employment welfare benefits other than as required by Section 4980B of the Internal Revenue Code (or similar state law) or is a health or life insurance plan that is not fully insured by a third party insurance company.

6.13    Subsidiaries and Capitalization.
Set forth on Schedule 6.13 to the Disclosure Letter is a complete and accurate list as of the Closing Date of each Subsidiary of any Note Party, together with (i) jurisdiction of organization, (ii) number of shares of each class of Equity Interests outstanding, (iii) percentage of outstanding shares of each class owned (directly or indirectly) by any Note Party or any Subsidiary and the certificate numbers(s) for the same (if any), (iv) the name of such Note Party or Subsidiary and (v) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto.  

6.14    Margin Regulations; Investment Company Act.
(a)    No Note Party is engaged and no Note Party will engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose, whether immediately or ultimately, of purchasing or carrying margin stock.  Following the application of the proceeds of each issuance and sale of Notes, not more than 25% of the value of the assets either of Parent only or of Parent and its Subsidiaries on a consolidated basis will be margin stock.  Neither Parent nor any Subsidiary has taken or permitted to be taken any action that might cause any Note Document to violate Regulation T, U or X issued by the FRB.
(b)    No Note Party or any Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.

6.15    Disclosure.
Each Note Party has disclosed or otherwise made available (including on the SEC’s EDGAR system) to the Purchasers for use in connection with the transactions contemplated hereby and the negotiation of this Agreement 

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all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, in each case of the foregoing, either individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  No report, financial statement, certificate or other written information (other than financial projections, estimates and other forward-looking information, and information of a general economic or industry specific nature) furnished by or on behalf of any Note Party or otherwise made available (including on the SEC’s EDGAR system) to any Purchaser for use in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Note Document (in each case, as modified or supplemented by other information so furnished, and when taken as a whole) contains, when furnished, any material misstatement of fact or omits to state any fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, that, with respect to financial projections, estimates, budgets or other forward-looking information, the Note Parties represent only that such information was prepared in good faith based upon assumptions believed by the Note Parties to be reasonable at the time such information was prepared (it being understood that such information is as to future events and is not to be viewed as facts, is subject to significant uncertainties and contingencies, many of which are beyond the control of Parent and its Subsidiaries, that no assurance can be given that any particular projection, estimate or forecast will be realized and that actual results during the period or periods covered by any such projections, estimate, budgets or forecasts may differ significantly from the projected results and such differences may be material).

6.16    Compliance with Laws.
(a)    Each Note Party and each Subsidiary is in compliance with the requirements of all Laws (including Export and Import Laws) and regulations and all judgments, orders, writs, injunctions and decrees applicable to it or to its business or to its properties, except in such instances in which (i) such requirement of Law or regulation or judgment, order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (ii) the failure to comply therewith, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.  
(b)    To the knowledge of any Responsible Officer of any Note Party, neither any Note Party nor any Subsidiary or Related Party is: (x) as of the Closing Date, (i) excluded from any Governmental Payor Program pursuant to 42 U.S.C. § 1320a-7b and related regulations; (ii) “suspended” or “debarred” from selling any products to the U.S. government or its agencies pursuant to the Federal Acquisition Regulation relating to debarment and suspension applicable to federal government agencies generally (42 C.F.R. Subpart 9.4), or other applicable Laws or regulations; (iii) debarred, disqualified, suspended or excluded from participation in Medicare, Medicaid, or any other Governmental Payor Program or is listed on the General Services Administration list of excluded parties; (iv) debarred by the FDA; or (v) a party to any other action or proceeding by any Governmental Authority that would prohibit the applicable Note Party, Subsidiary, or Related Party from distributing or selling a Product or providing any services to any governmental or other purchaser pursuant to any Laws or regulations and (y) as of any Bringdown Date, is debarred, disqualified, suspended, excluded or prohibited in the manner described in clauses (i) through (v) above, except where such status could not reasonably be expected to have a Material Adverse Effect.

6.17    Intellectual Property; Licenses, Etc.
(a)    Schedule 6.17(a) to the Disclosure Letter sets forth a complete and accurate list of the following IP Rights as of the Closing Date: (i) all Copyrights and all Trademarks of any Note Party that are registered, or in respect of which an application for registration has been filed or recorded, with the United States Patent and Trademark Office or the United States Copyright Office or with any other Governmental Authority (or comparable organization or office established in any country or pursuant to an international treaty or similar international agreement for the filing, recordation or registration of interests in intellectual property), together with relevant identifying information with respect to such Copyrights and Trademarks, (ii) all Patents of any Note Party that are issued, or in respect of which an application has been filed or recorded, with the United States Patent and Trademark Office or with any other Governmental Authority (or 

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comparable organization or office established in any country or pursuant to an international treaty or similar international agreement for the filing, recordation or registration of interests in intellectual property), together with relevant identifying information with respect to such Patents, and (iii) each Copyright License, each Patent License and each Trademark License of any Note Party that is, in the case of this clause (iii), material to the Businesses, taken as a whole. 
(b)    All Material IP Rights are valid, subsisting, enforceable and in full force and effect, and have not expired, lapsed or been forfeited, cancelled or abandoned.  Each of Parent and the Subsidiaries have, since taking title to the Material IP Rights, performed all acts and have paid all required annuities, fees, costs, expenses and taxes necessary to maintain the Material IP Rights in full force and effect or have caused others to do the same.  All documents filed or recorded with a patent office or other relevant intellectual property registry for registration, recordation or issuance of Material IP Rights have been duly and properly filed and recorded, except where the failure to do so could not reasonably be expected to affect the validity or enforceability of such Material IP Rights.  Except for rejections issued by a Governmental Authority in the ordinary course of prosecuting Patent or Trademark applications, none of the Material IP Rights are subject to any pending or outstanding injunction, directive, order, judgment, or other disposition of dispute that materially adversely restricts, or when any such pending dispute is concluded would reasonably be expected to materially adversely restrict, the use, transfer, registration, licensing or other exploitation of any such Material IP Rights, or otherwise materially adversely affects the validity, use, right to use, registrability, or enforceability of such Material IP Rights.   Except as otherwise described on Schedule 6.17(b) to the Disclosure Letter or for rejections issued by a Governmental Authority in the ordinary course of prosecuting Patent or Trademark applications, to the knowledge of any Responsible Officer of any Note Party, no action or proceeding is pending that could result in any of the foregoing.  
(c)    Parent or a Subsidiary owns and possesses valid title to, or has a valid license to, all Material IP Rights, free and clear of any and all Liens other than Permitted Liens. To the extent any of the Material IP Rights were authored, developed, conceived or created, in whole or in part, for or on behalf of Parent or a Subsidiary by any Person, then Parent or such Subsidiary, as applicable, has entered into a written agreement with such Person in which such Person has assigned all of its right, title and interest in and to such Material IP Rights to Parent or such Subsidiary, except where the failure to do so could not reasonably be expected to affect the validity, enforceability or ownership by Parent or such Subsidiary of such Material IP Rights.  Each of Parent and each Subsidiary is the sole and exclusive owner of all right, title and interest in and to all such Material IP Rights that are owned by it, subject only to Permitted Liens. 
(d)    As of the Closing Date, except as described in Schedule 6.17(d) to the Disclosure Letter, and except for software that is commercially available to the public, no Note Party is a party to nor is bound by, any inbound license or other similar agreement in respect of Material IP Rights, the breach or termination of which could reasonably be expected to cause a Material Adverse Effect, or that prohibits or otherwise restricts the Note Parties from granting a Lien on and security interest in the applicable Note Party’s interest in such license or agreement or any other property.
(e)    (i) To the knowledge of any Responsible Officer of any Note Party, except as described in Schedule 6.17(e) to the Disclosure Letter, no Third Party is committing an act of Infringement of any Material IP Rights, and (ii) no Note Party has given notice to any Third Party alleging that such Third Party is committing an act of Infringement of any Material IP Rights, except in each case of clauses (i) and (ii) above, as of any Bringdown Date, where such Infringement could not reasonably be expected to have a Material Adverse Effect.
(f)    With respect to each Copyright License, Trademark License and Patent License in respect of Material IP Rights listed on Schedule 6.17(a) to the Disclosure Letter, such agreement (i) is in full force and effect and is binding upon and enforceable against Parent and the Subsidiaries party thereto and, to the knowledge of any Responsible Officer of any Note Party, all other parties thereto in accordance with its 

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terms, (ii) as of the Closing Date, has not been amended or otherwise modified and (iii)(x) is not as of the Closing Date currently subject to any material default or breach by Parent or any Subsidiary thereunder or, to the knowledge of any Responsible Officer of any Note Party, by any other party thereto, and (y) is not as of any Bringdown Date currently subject to any material default or breach by Parent or any Subsidiary thereunder or, to the knowledge of any Responsible Officer of any Note Party, by any other party thereto, where in each case of clauses (x) and (y) above, any such default or breach could reasonably be expected to result in the termination, rescission or non-renewal of such agreement or the loss of the material benefits to or material rights of a Note Party or Subsidiary thereunder.  
(g)    Except as set forth on Schedule 6.17(g) to the Disclosure Letter, no written claim or threat, and no other claim or threat known to any Responsible Officer of a Note Party, has been made by a Third Party against Parent or any Subsidiary alleging that any of the Material IP Rights are invalid or unenforceable or that the conduct or operation of the business of Parent or the Subsidiaries, including the development, manufacture, use, sale, offer for sale, importation or other commercialization of any Product, Infringes (or in the past six (6) years Infringed) on any IP Rights of that Third Party, except as of any Bringdown Date, to the extent such invalidlity, unenforceability or Infringement could not reasonably be expected to have a Material Adverse Effect.   Except as set forth on Schedule 6.17(g) to the Disclosure Letter, the development, manufacture, use, sale, offer for sale, importation or other commercialization of any Product does not (and in the past six (6) years did not), to the knowledge of any Responsible Officer of any Note Party, Infringe any Material IP Rights of any Third Party, except, solely as of any Bringdown Date, where such Infringement could not reasonably be expected to have a Material Adverse Effect.
(h)    Except as set forth on Schedule 6.17(h) to the Disclosure Letter, and except, solely as of any Bringdown Date, where such Specified Dispute could not reasonably be expected to have a Material Adverse Effect, there is no pending, decided or settled opposition, interference proceeding, reissue proceeding, reexamination proceeding, inter partes review proceeding, post-grant review proceeding, covered business method patent review proceeding, cancellation proceeding, injunction, lawsuit, paragraph IV patent certification or lawsuit under the Hatch-Waxman Act, hearing, investigation, complaint, arbitration, mediation, demand, International Trade Commission investigation, decree, or any other dispute, disagreement, or claim, in each case alleged in writing to Parent or any Subsidiary (collectively referred to hereinafter as “Specified Disputes”), nor to the knowledge of a Responsible Officer of any Note Party, has any such Specified Dispute been threatened in writing, in each case challenging the validity, enforceability or ownership of any Material IP Rights. 
(i)    Parent and the Subsidiaries have used commercially reasonable efforts and precautions to protect their interests in, and the value and confidentiality of their respective Confidential Information and Trade Secrets, including any source code for Proprietary Software, except to the extent such failure to maintain or protect could not reasonably be expected to have a Material Adverse Effect.

6.18    Solvency.  (a) The Issuer and the Guarantors are Solvent, on a consolidated basis, and (b) Parent and its Subsidiaries are Solvent, on a consolidated basis.

6.19    Perfection of Security Interests in the Collateral.
The Collateral Documents create valid security interests in, and Liens on, the Collateral purported to be covered thereby, which security interests and Liens will be, upon the timely and proper filings, deliveries, notations and other actions contemplated in the Collateral Documents, perfected security interests and Liens (to the extent that such security interests and Liens can be perfected by such filings, deliveries, notations and other actions), prior to all other Liens other than Permitted Liens.

6.20    Business Locations.

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(a)    Set forth on Schedule 6.20(a) to the Disclosure Letter is a list of all real property that is owned or leased by the Note Parties as of the Closing Date (with (x) the mailing address of such real property, (y) a description of each real property that is Excluded Property and (z) a designation of whether such real property is owned or leased).  
(b)    Set forth on Schedule 6.20(b) to the Disclosure Letter is the taxpayer identification number and organizational identification number of each Note Party as of the Closing Date.  The exact legal name, type of organization and jurisdiction of organization of (i) the Issuer is (x) as set forth on the perfection certificates delivered to the Purchasers pursuant to Section 5.01(a) and on the signature pages hereto or (y) as may otherwise be disclosed by the Issuer to the Collateral Agent in accordance with Section 8.12(c) and (ii) each Guarantor is (x) as set forth on the perfection certificates delivered to the Purchasers pursuant to Section 5.01(a) and on signature pages hereto, (y) as set forth on the signature pages to the Joinder Agreement pursuant to which such Guarantor became a party hereto or (z) as may otherwise be disclosed by the Note Parties to the Collateral Agent in accordance with Section 8.12(c).  
(c)    Except as set forth on Schedule 6.20(c) to the Disclosure Letter, no Note Party has during the five (5) years preceding the Closing Date (i) changed its legal name, (ii) changed its type of organization, jurisdiction of organization or any organizational identification number, or (iii) been party to a merger, amalgamation, consolidation or other change in structure.

6.21    Sanctions Concerns; Anti-Corruption Laws; PATRIOT Act.
(a)    Sanctions Concerns.  No Note Party nor any Subsidiary nor, to the knowledge of any Responsible Officer of any Note Party, any director, officer, employee, agent, Affiliate or representative thereof, is an individual or entity that is, or is owned (at a 50% or greater level individually or in the aggregate) or controlled by any individual or entity that is (i) currently the subject or target of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions authority or (iii) organized or resident in a Designated Jurisdiction.  
(b)    Anti-Corruption Laws.  The Note Parties and their Subsidiaries have conducted their business in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other applicable jurisdictions, and have instituted and maintain policies and procedures designed to promote and achieve compliance with such Laws.
(c)    PATRIOT Act.  To the extent applicable, each Note Party and each Subsidiary is in compliance, in all material respects, with (i) the 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 (ii) the PATRIOT Act. 

6.22    Limited Offering of Notes.
None of the Note Parties nor anyone acting on their behalf has offered or will offer to sell the Notes to, or solicit offers with respect thereto from, or enter into any preliminary conversations or negotiations relating thereto with, any Person other than the Purchasers, so as to require the issuance and sale of the Notes to be registered under the Securities Act or applicable securities laws of any other jurisdiction.  None of the Note Parties nor anyone acting on their behalf has engaged, directly or indirectly, in any form of general solicitation or general advertising with respect to the offering of the Notes (as those terms are used in Regulation D) or otherwise in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act. Assuming the accuracy and completeness 

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of the representations and warranties of the Purchasers set forth in Article VI-A below, the offer and sale of the Notes are exempt from registration under the Securities Act and any applicable securities laws of any other jurisdiction.

6.23    Registration Rights; Issuance Taxes.
(a)    No Issuer is under any requirement to register under the Securities Act, or the Trust Indenture Act of 1939, as amended, any of its presently outstanding securities or any of its securities that may subsequently be issued.
(b)    As of the Closing Date and each Delayed Draw Notes Closing Date, all taxes imposed on the Issuer in connection with the issuance, sale and delivery of the Notes have been or will be fully paid, and all Laws imposing such taxes have been or will be fully satisfied by the Issuer.

6.24    Material Contracts. 
(a)    Except for the Organization Documents and other agreements set forth on Schedule 6.24, as of the Closing Date there are no (i) commercial manufacturing or supply agreements relating to XHANCE or any other Material Product, (ii) agreements constituting clause (b) of the definition of Permitted Licenses or (iii) agreements constituting clauses (c) or (d) of the definition of Permitted Licenses involving XHANCE, in each case of clauses (i) and (ii) above to which Parent or any Subsidiary is a party requiring payment, or under which Parent or any Subsidiary is expected to pay, more than $500,000 in any year (solely for purposes of this representation and as of the Closing Date) and $2,000,000 in any year (for all other purposes hereunder, including reporting obligations and compliance with applicable covenants), or other agreements or instruments to which Parent or any Subsidiary is a party and the breach, nonperformance or cancellation of which, or the failure of which to renew, could reasonably be expected to have a Material Adverse Effect (collectively with the Organization Documents, the “Material Contracts”). 
(b)    After giving effect to the consummation of the transactions contemplated by this Agreement and except, solely as of any Bringdown Date, as could not reasonably be expected to have a Material Adverse Effect, (i) each Material Contract is a valid and binding obligation of Parent or any Subsidiary that is a party thereto, and, to the knowledge of any Responsible Officer of any Note Party, each other party thereto, and is in full force and effect, and (ii) neither Parent or any Subsidiary party thereto, as applicable, nor, to the knowledge of any Responsible Officer or any Note Party, any other party thereto, is in material breach thereof or default thereunder, except where such breach or default (which default has not been cured or waived) could not reasonably be expected to give rise to any cancellation, termination or acceleration right of the applicable counterparty thereto or result in the invalidation thereof.  Neither Parent nor any Subsidiary has received any written notice from any party thereto asserting or, to the knowledge of any Responsible Officer of any Note Party, threatening to assert, circumstances that could reasonably be expected to give rise to any cancellation, termination or invalidation of any Material Contract or the acceleration of Parent’s or any Subsidiary’s (as applicable) obligations thereunder, except, solely as of any Bringdown Date, to the extent such cancellation, termination or invalidation could not reasonably be expected to have a Material Adverse Effect.

6.25    Regulatory Compliance. 
(a)    The Note Parties, jointly and severally, represent and warrant to the Collateral Agent and the Purchasers:
(i)    that (A) Parent and its Subsidiaries have obtained all Required Permits, or have contracted with third parties holding Required Permits to obtain any and all rights, in each case necessary for the conduct of the Businesses or for compliance with all applicable Laws and regulations and (B) all such Required Permits or rights thereto are in full force and effect, except in each case of 

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clauses (A) and (B) above where the failure to do so could not reasonably be expected to result in a Material Adverse Effect;
(ii)    that Parent and its Subsidiaries have not received any written communication or to the knowledge of any Responsible Officer of any Note Party, any other communication, from any Governmental Authority regarding, and, to the knowledge of any Responsible Officer of a Note Party, there are no such notices being contemplated by a Governmental Authority regarding: (A)(1) as of the Closing Date, any adverse change in, limitation or modification of, any Required Permit, or any failure to comply with any Laws or regulations or any term or requirement of any Required Permit, and (2) as of any Bringdown Date, any adverse change in, limitation or modification of, any Required Permit, or any failure to comply with any Laws or regulations or any term or requirement of any Required Permit, to the extent such change, limitation, modification or failure (x) could reasonably be expected to have a material adverse effect on the ability of the Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit XHANCE or any other Material Product or (y) otherwise could reasonably be expected to result in a Material Adverse Effect; or (B)(1) as of the Closing Date, any revocation, withdrawal, suspension, cancellation, or termination of any Required Permit, and (2) as of any Bringdown Date, any revocation, withdrawal, suspension, cancellation, or termination of any Required Permit that could reasonably be expected to result in a Material Adverse Effect;
(iii)    that none of the officers, directors, employees, agents, or Affiliates of Parent or any Subsidiary or, to the knowledge of any Responsible Officer of a Note Party, any other Person involved in the development of (including seeking regulatory approval for) (A) as of the Closing Date, any Product and (B) as of any Bringdown Date, any Material Product, has been debarred pursuant to 21 U.S.C. Section 335a;
(iv)    that none of the officers, directors, employees, agents, or Affiliates of Parent or any Subsidiary or, to the knowledge of any Responsible Officer of a Note Party, any consultant or independent contractor engaged by the Note Parties for services related to the development of (A) as of the Closing Date, a Product and (B) as of any Bringdown Date, a Material Product, has made an untrue statement of material fact or fraudulent statement to the FDA, failed to disclose a material fact required to be disclosed to the FDA, committed an act, or failed to make a statement, in each case that could reasonably be expected to provide a basis for the FDA to invoke its policy respecting “Fraud, Untrue Statements of Material Facts, Bribery, and Illegal Gratuities,” set forth in 56 Fed. Reg. 46191 (September 10, 1991);  
(v)    that all applications, notifications, submissions, information, claims, reports and statistics and other data and conclusions derived therefrom, utilized as the basis for or submitted in connection with any and all requests for a Required Permit from the FDA or other Governmental Authority by or on behalf of Parent or any Subsidiary, their Businesses and Material Products, when submitted to the FDA or other Governmental Authority, were true, complete and correct in all material respects as of the date of submission, and any necessary or required material updates, changes, corrections or modifications to such applications, notifications, submissions, information, claims, reports and statistics and other data and conclusions have been properly and timely submitted to the FDA or other Governmental Authority. The Required Permits issued by the FDA and other Governmental Authorities for the Material Products are, to the knowledge of any Responsible Officer of any Note Party, valid and supported by proper research, design, testing, analysis and disclosure;
(vi)    that all preclinical and clinical trials that have been conducted and/or are being conducted by or on behalf of Parent and its Subsidiaries for the Material Products, including those trials for which results and data have been submitted to any Governmental Authority, including the FDA, are being or have been conducted in compliance in all material respects with applicable 

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protocols, procedures and controls and Laws, including, as applicable, current Good Manufacturing Practices, Good Laboratory Practices and Good Clinical Practices, as those terms are defined by the FDA.  (x) As of the Closing Date, neither Parent nor any Subsidiary has received any written notice from FDA relating to the imposition of a full or partial clinical hold, as that term is defined by FDA, on any such ongoing clinical trial, and (y) as of any Bringdown Date, neither Parent nor any Subsidiary has received any written notice from FDA relating to the imposition of a full or partial clinical hold, as that term is defined by FDA, on any such ongoing clinical trial that could reasonably be expected to result in a Material Adverse Effect;
(vii)    that neither Parent nor any Subsidiary has received any written notice or to the knowledge of any Responsible Officer of any Note Party, any other notice, that any Governmental Authority, including without limitation the FDA, the Office of the Inspector General of HHS or the United States Department of Justice has commenced or to the knowledge of any Responsible Officer of any Note Party, threatened to initiate any action against Parent or any Subsidiary or their respective officers, directors, employees, shareholders, agents or Affiliates, or to the knowledge of any Responsible Officer of a Note Party, their licensees, manufacturers and contractors with respect to the Products, (x) as of the Closing Date, seeking to enjoin the conduct of business at any facility owned or used by any of them (including the Facilities) or for any material civil penalty, injunction, seizure or criminal action, and (y) as of any Bringdown Date, seeking to enjoin the conduct of business at any facility owned or used by any of them (including the Facilities) or for any material civil penalty, injunction, seizure or criminal action that could reasonably be expected to have a Material Adverse Effect;
(viii)    that neither Parent nor any Subsidiary nor, to the knowledge of any Responsible Officer of any Note Party, any applicable third party, has received from the FDA a Warning Letter, Form FDA-483, Untitled Letter, other written correspondence or notice setting forth allegedly objectionable observations or alleged violations of Laws enforced by the FDA, or any comparable correspondence from any state or local authority with regard to any Product or the manufacture, testing, processing, packaging, promotion, sale, distribution, or holding thereof, or any comparable correspondence from any foreign counterpart of the FDA, or any comparable correspondence from any foreign counterpart of any state or local authority, in each case, which remains unresolved, with regard to (A) as of the Closing Date, any Product or the manufacture, testing, processing, packing, promotion, sale, distribution or holding thereof, and (B) as of any Bringdown Date, any Material Product or the manufacture, testing, processing, packing, promotion, sale, distribution or holding thereof, that could reasonably be expected to have a material adverse effect on the ability of the Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit any Material Product or otherwise have a Material Adverse Effect; and
(ix)    that (A) neither Parent nor any Subsidiary has engaged in any Recalls, field notifications or alerts, warnings, “dear doctor” letters, investigator notices, safety alerts or other notice of action, including as a result of any Risk Evaluation and Mitigation Strategy proposed by the FDA, relating to an alleged lack of safety or regulatory compliance of the Material Products issued by Parent or any Subsidiary (“Safety Notices”) (1) as of the Closing Date, solely with respect to XHANCE, other than safety alerts, adverse events, product complaints and other notices received and/or reported by the Company in the ordinary course of business, and field alert reports required to be submitted to the FDA, in each case, that Parent or such Subsidiary does not reasonably believe in good faith to be material, and (2) as of any Bringdown Date, that could reasonably be expected to (x) have a material adverse effect on the ability of the Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit any Material Product or (y) otherwise have a Material Adverse Effect; (B) no Responsible Officer of any Note Party has knowledge of any complaints with respect to (1) as of the Closing Date, the Products and (2) as of any Bringdown Date, the Material Products which, in either case of clauses (B)(1) or (B)(2) above if true, could reasonably be expected to have 

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a Material Adverse Effect; and (C) no Responsible Officer of any Note Party has knowledge of any facts that would be reasonably likely to result in (1) a Safety Notice with respect to (x) as of the Closing Date, the Products and (y) as of any Bringdown Date, the Material Products, (2) a change in the labeling of any of (x) as of the Closing Date, the Products and (y) as of any Bringdown Date, the Material Products, or (3) a termination or suspension of development and testing of any of (x) as of the Closing Date, the Products and (y) as of any Bringdown Date, the Material Products, that in each case of clauses (C)(1)(x), (C)(2)(x) and (C)(3)(x) above, could reasonably be expected to have a material adverse effect on the ability of the Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit such Product, and in each case of clauses (C)(1)(y), (C)(2)(y) and (C)(3)(y) above, could reasonably be expected to have a material adverse effect on the ability of the Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit such Product or have a Material Adverse Effect. 
(b)    With respect to the Products, the Note Parties, jointly and severally, represent and warrant to the Collateral Agent and the Purchasers that:
(i)    all Products are listed on Schedule 1.01(b) to the Disclosure Letter and the Issuer has delivered to the Purchasers on or prior to the Closing Date copies of all Required Permits relating to any Material Products issued or outstanding as of the Closing Date; 
(ii)    no material portion of the Material Products are adulterated or misbranded within the meaning of the FDCA, except for such adulterations or misbrandings that could not reasonably be expected to have (x) a material adverse effect on the ability of Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit such Material Products or (y) have a Material Adverse Effect;
(iii)    each Product is not an article prohibited from introduction into interstate commerce under any provisions of the FDCA or PHSA, except where such introduction of a prohibited Product could not reasonably be expected to have a Material Adverse Effect;
(iv)    with respect to each Material Product, (a) each such Material Product has been tested, manufactured, imported, held, owned, warehoused, promoted, sold, labeled, furnished, distributed and marketed by or on behalf of Parent and its Subsidiaries in accordance with applicable Required Permits and Laws, including current Good Manufacturing Practices, (b) all reports, notices, or other submissions required to be submitted to Governmental Authorities under applicable Law or regulation have been timely submitted, and (c) all records required to be maintained under applicable Law or regulation have been and are being lawfully maintained, except in each case where a failure to do so could not reasonably be expected to have a Material Adverse Effect;
(v)    without limiting the generality of Section 6.25(a)(i) and (ii) above, with respect to any Material Product being developed, tested or manufactured by or on behalf of Parent and its Subsidiaries, Parent and its Subsidiaries and any applicable third parties, have received, and such Material Product shall be the subject of, all Required Permits necessary in connection with the development, testing or manufacture of such Material Product currently being conducted by or on behalf of Parent or such Subsidiary, and, neither Parent nor any Subsidiary, nor to the knowledge of any Responsible Officer of any Note Party, any third party, has received any notice from any applicable Government Authority, specifically including the FDA, (A) that such Government Authority is conducting an investigation or review of Parent’s or its Subsidiaries’ or any applicable third party’s manufacturing facilities and processes for such Material Product that has found deficiencies or violations of Laws or regulations or the Required Permits related to the manufacture of such Material Product, that in each case of clause (A) above, could reasonably be expected to result in a Material Adverse Effect, or (B) that any such Required Permit has been revoked or withdrawn or that any such 

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Governmental Authority has issued an order or recommendation stating that the development, testing or manufacturing of such Material Product by or on behalf of Parent or its Subsidiaries should cease; 
(vi)    without limiting the generality of Section 6.25(a)(i) and (ii) above, with respect to any Material Product marketed, sold or commercialized by or on behalf of Parent or any of its Subsidiaries, Parent and its Subsidiaries, and any applicable third parties have received, and such Material Product is the subject of, all Required Permits necessary in connection with the marketing, sale and commercialization of such Material Product as currently being marketed, sold or commercialized by or on behalf of Parent and its Subsidiaries, and neither Parent nor any Subsidiary nor to the knowledge of any Responsible Officer of any Note Party, any third party, has received any notice from any applicable Governmental Authority, specifically including the FDA, (A) that such Governmental Authority is conducting a non-routine investigation or review of any such Required Permit that, if it finds deficiencies or violations of Laws or regulations or a Required Permit, could reasonably be expected to result in a Material Adverse Effect or (B) that any such Required Permit has been revoked or withdrawn or that any such Governmental Authority has issued any order or recommendation stating that the marketing, sale or commercialization of such Material Product cease or that such Material Product be withdrawn from the marketplace; and
(vii)    neither Parent nor any Subsidiary has experienced any material failures in the commercial manufacturing of any Material Product such that the amount of such Material Product commercially manufactured in accordance with specifications thereof in any two-month period decreased significantly with respect to the quantities of such Material Product produced in the prior two-month period, other than any such failures in the commercial manufacturing of such Material Product as would not reasonably be expected to result in an interruption of the supply of such Material Product.

6.26    Cybersecurity and Data Protection.  Parent and its Subsidiaries have implemented and maintain reasonable and appropriate administrative, physical, and technical controls to protect the confidentiality and integrity of information subject to Data Protection Laws and information, data, and other materials in which Parent or any of its Subsidiaries has IP Rights (including Confidential Information and Trade Secrets).  Parent and its Subsidiaries have implemented a commercially reasonable enterprise-wide privacy and information security program, including policies and procedures for privacy, physical and cybersecurity, disaster recovery, business continuity, and incident response.  Except as could not reasonably be expected to have a Material Adverse Effect, each of Parent and its Subsidiaries is in compliance with the requirements of all (i) applicable Data Protection Laws, (ii) Material Contracts regarding privacy, confidentiality, or the security of customer, consumer, research subject, patient, employee and other personal data, and (iii) its published privacy policies and codes of conduct.  Neither Parent nor any Subsidiary has received any written notice of any claims, investigations, or alleged violations of any applicable Data Protection Law that could reasonably be expected to have a Material Adverse Effect.

6.27    Labor Matters. 
There are no existing or threatened strikes, work stoppages, lockouts or other labor disputes involving Parent or any Subsidiary that singly or in the aggregate could reasonably be expected to have a Material Adverse Effect.  Except as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, hours worked by and payment made to employees of Parent and its Subsidiaries are not in violation of the Fair Labor Standards Act or any other applicable law, rule or regulation dealing with such matters.

6.28    EEA Financial Institution. 
No Note Party or any of their Subsidiaries is an EEA Financial Institution.

6.29    Ranking of Notes.

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The Indebtedness represented by the Notes and the other Obligations under the applicable Note Documents of each Note Party is intended to constitute senior secured Indebtedness, and accordingly is, and shall be, at all times while the Notes and the other Obligations remain outstanding or the Purchasers have any outstanding Delayed Draw Note Commitments hereunder, pari passu or senior in right of payment with all other Indebtedness of such Note Party (if any), except as may be expressly provided under any Intercreditor Agreement entered into by the Collateral Agent in connection with a Permitted Revolving Credit Facility.

6.30    Guaranty by OptiNose UK.
Each Note Party incorporated or existing under the laws of England and Wales has received sufficient corporate benefit in connection with the transactions contemplated by this Agreement and the other Note Documents such that its provision of the guaranty contemplated by this Agreement and none of the security provided by the English Security Documents is a transaction at an undervalue.

6.31    Guaranty by OptiNose AS.
Each Note Party incorporated or existing under the laws of Norway has received sufficient corporate benefit in connection with the transactions contemplated by this Agreement and the other Note Documents such that its provision of the guaranty contemplated by this Agreement and none of the security provided by the Norwegian Security Documents is a transaction at an undervalue.

6.32    Existing Indebtedness.
Immediately following the issuance, sale and delivery of the Initial Notes on the Closing Date, the only existing Indebtedness for borrowed money of each Note Party and its Subsidiaries shall be Indebtedness permitted under Sections 8.03(a), (b), (c), (f) and (q).  As of any Bringdown Date, the only existing Indebtedness for borrowed money of each Note Party and its Subsidiaries shall be Indebtedness permitted under Section 8.03.

ARTICLE VI-A. 
 
REPRESENTATIONS OF THE PURCHASERS.  
Each Purchaser represents and warrants to the Issuer that:
(a)    such Purchaser is an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act and the Notes to be acquired by it pursuant to this Agreement are being acquired for its own account and not with a view to any distribution thereof or with any present intention of offering or selling any of the Notes in a transaction that would violate the Securities Act or the securities laws of any state of the United States or any other applicable jurisdiction;
(b)    such Purchaser has such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Notes and such Purchaser is capable of bearing the economic risks of such investment and acknowledges that the Notes as of the date hereof, have not been registered under the Securities Act or the securities laws of any state or other jurisdiction; and
(c)    each Purchaser acknowledges that the Issuer and, for purposes of the opinions to be delivered to the Collateral Agent and the Purchasers pursuant hereto, counsel to the Issuer and its Affiliates will rely upon the accuracy and truth of the foregoing representations and in this Article VI-A and hereby consents to such reliance.

ARTICLE VII 
 
AFFIRMATIVE COVENANTS
So long as any Purchaser shall have any Delayed Draw Commitment hereunder, or any Note or other Obligation hereunder shall remain unpaid or unsatisfied (other than contingent indemnification obligations for which no claim has been asserted), the Note Parties shall and shall cause each Subsidiary to:

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7.01    Financial Statements.
Deliver to the Collateral Agent and each Purchaser:
(a)    as soon as available, and in any event within ninety-five (95) days after the end of each fiscal year of Parent (or, if earlier, when required to be filed with the SEC), a consolidated balance sheet of Parent and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, changes in shareholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of Ernst & Young LLP or another independent certified public accountant of nationally recognized standing reasonably acceptable to the Required Purchasers, which report and opinion shall be unqualified (except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by Parent’s independent public accountants) and prepared in accordance with generally accepted auditing standards.  For purposes of clarity, a “going concern” statement or explanatory note shall not be a qualification for purposes hereof; and
(b)    as soon as available, and in any event within fifty (50) days after the end of each of the first three fiscal quarters of each fiscal year of Parent (or, if earlier, when required to be filed with the SEC), a consolidated balance sheet of Parent and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations, changes in shareholders’ equity and cash flows for such fiscal quarter and for the portion of Parent’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail and certified by a Responsible Officer of Parent as fairly presenting in all material respects the financial condition, results of operations, shareholders’ equity and cash flows of Parent and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes.

7.02    Certificates; Other Information.
Deliver to the Collateral Agent and each Purchaser:
(a)    concurrently with the delivery of the financial statements referred to in Sections 7.01(a) and (b), a duly completed Compliance Certificate signed by the chief executive officer, chief financial officer, chief operating officer or vice president of finance of Parent, certifying, among other things, compliance with the covenants set forth in Section 8.16 and setting forth calculations of (i) from and after the Closing Date commencing with the delivery of the financial statements referred to in Section 7.01(a) with respect to the fourth fiscal quarter of the fiscal year ended December 31, 2019, Consolidated Net Sales for the fourth fiscal quarter period or the fiscal quarter period, as applicable, covered thereby, and (ii) from and after the Closing Date, Consolidated Liquidity as of the last day of each month covered thereby;
(b)    as soon as practicable, and in any event not later than fifty (50) days after the commencement of each fiscal year of Parent, an annual business plan and budget of Parent and its Subsidiaries for the then current fiscal year containing, among other things, projections (including sales forecasts for XHANCE) for each quarter of such fiscal year;
(c)    promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication (other than ministerial or administrative in nature) sent to the equityholders of any Note Party, and copies of all annual, regular, periodic and special reports and registration statements which a Note Party may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, and not otherwise required to be delivered to the Collateral Agent pursuant hereto;

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(d)    [Reserved];
(e)    promptly after any request by the Collateral Agent or any Purchaser, copies of any detailed audit reports, management letters or recommendations submitted to the Board of Directors (or the audit committee of the Board of Directors) of Parent by independent accountants in connection with the accounts or books of Parent or any Subsidiary, or any audit of any of them;
(f)    promptly after the furnishing thereof, copies of any statement or report (other than ministerial or administrative in nature) furnished to any holder of debt securities of any Note Party or any Subsidiary pursuant to the terms of any indenture, loan or credit or similar agreement with an aggregate principal amount outstanding in excess of the Threshold Amount and not otherwise required to be furnished to the Purchasers pursuant to Section 7.01 or any other clause of this Section 7.02;
(g)    promptly, and in any event within five (5) Business Days after receipt thereof by any Note Party or any Subsidiary thereof, copies of any initial notice or other initial written correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by such agency regarding financial or other operational results of any Note Party or any Subsidiary thereof;
(h)    promptly, such additional information regarding the business, financial or corporate affairs of any Note Party or any Subsidiary, or compliance with the terms of the Note Documents, as the Collateral Agent or any Purchaser may from time to time reasonably request; and
(i)    concurrently with the delivery of the financial statements referred to in Sections 7.01(a) and (b), a certificate of a Responsible Officer of Parent (i) listing (A) all applications with either the United States Copyright Office, the United States Patent and Trademark Office or upon the reasonable request of the Collateral Agent, in each case, such comparable Governmental Authority in Norway, England or in any other jurisdiction by any Note Party, if any, for Copyrights, Patents or Trademarks made since the date of the prior certificate (or, in the case of the first such certificate, the Closing Date), (B) all issuances of registrations or letters with either the United States Copyright Office, the United States Patent and Trademark Office or, upon the reasonable request of the Collateral Agent, in each case, such comparable Governmental Authority in Norway, England or in any other jurisdiction on existing applications by any Note Party for Copyrights, Patents and Trademarks received since the date of the prior certificate (or, in the case of the first such certificate, the Closing Date), and (C) all Trademark Licenses, Copyright Licenses and Patent Licenses in respect of Material IP Rights entered into by any Note Party since the date of the prior certificate (or, in the case of the first such certificate, the Closing Date), and (ii) with respect to any insurance coverage of any Note Party or any Subsidiary that was renewed, replaced or modified during the period covered by such financial statements, such updated information with respect to such insurance coverage as is required to be included on Schedule 6.10 to the Disclosure Letter.
Documents required to be delivered pursuant to Section 7.01(a) or (b) or Section 7.02 may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which Parent posts such documents, or provides a link thereto on Parent’s website on the Internet at the website address listed on Schedule 12.02, or (ii) on which such documents are posted on Parent’s behalf on an Internet or intranet website, if any, to which each Purchaser and the Collateral Agent have access (whether a commercial, third-party website or whether sponsored by the Collateral Agent); provided, that, in each case of clause (i) and (ii) above, Parent shall notify the Collateral Agent and each Purchaser (by facsimile or electronic mail) of the posting of any such documents and if requested by the Collateral Agent, provide to the Collateral Agent by electronic mail electronic versions (i.e., soft copies) of such documents.  The Collateral Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by Parent with any such request for delivery by a Purchaser, and each Purchaser shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

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7.03    Notices.
(a)    Promptly (and in any event, within five (5) Business Days) upon any Responsible Officer of any Note Party obtaining knowledge thereof, notify the Collateral Agent and each Purchaser of the occurrence of any Default, including, for purposes of clarity, (i) any occurrence of the results of any minimum Consolidated Net Sales test conducted pursuant to Section 8.16(a) which indicates that Consolidated Net Sales for the applicable fiscal quarter are below the Net Sales Threshold applicable to such fiscal quarter, and (ii) any occurrence of the results of any minimum Consolidated Liquidity test conducted pursuant to Section 8.16(b) which indicates that Parent and its Subsidiaries that are Note Parties have Consolidated Liquidity as of the applicable date of determination of less than $30,000,000.
(b)    Promptly (and in any event, within five (5) Business Days) upon any Responsible Officer of any Note Party obtaining knowledge thereof, notify the Collateral Agent and each Purchaser of any matter that has resulted or could reasonably be expected to result in a Material Adverse Effect.
(c)    Promptly (and in any event, within ten (10) Business Days) upon any Responsible Officer of any Note Party obtaining knowledge thereof, notify the Collateral Agent and each Purchaser of the occurrence of any ERISA Event.
(d)    Promptly (and in any event, on the next Reporting Date) notify the Collateral Agent and each Purchaser of any material change in accounting policies or financial reporting practices by Parent or any Subsidiary.
(e)    (i) Promptly (and in any event, within five (5) Business Days) notify the Collateral Agent and each Purchaser of any material litigation, arbitration or governmental investigation or proceeding not previously disclosed by Parent which has been instituted or, to the knowledge of any Responsible Officer of any Note Party, is threatened against Parent or any other Note Party or to which any of the properties of any thereof is subject and (ii) promptly (and in any event, on the next Reporting Date) notify the Collateral Agent and each Purchaser of any other litigation, arbitration or governmental investigation or proceeding not previously disclosed by Parent which has been instituted or, to the knowledge of any Responsible Officer of any Note Party, is threatened against Parent or any other Note Party or to which any of the properties of any thereof is subject, which could reasonably be expected to result in losses and/or expenses in excess of the Threshold Amount.
(f)    Promptly (and in any event, on the next Reporting Date), notify the Collateral Agent and each Purchaser after (i) any Note Party enters into a new Material Contract or (ii) an existing Material Contract is materially amended or terminated.
(g)    Promptly (and in any event, within ten (10) Business Days of any Responsible Officer of any Note Party learning thereof) notify the Collateral Agent and each Purchaser of: (i) any Governmental Authority, including but not limited to the FDA, is conducting or has conducted (A) an investigation of any of the Facilities of any Note Party or any Subsidiary thereof and/or manufacturing processes for any Material Product that has found material deficiencies or material violations of Laws or regulations and/or the Required Permits related to such Material Product, or (B) a non-routine investigation or review of any Required Permit (other than routine reviews in the ordinary course of business associated with the renewal of a Required Permit, routine pre-approval inspections and similar FDA or other Governmental Authority visits and which could not reasonably be expected to result in a Material Adverse Effect); (ii) that any Governmental Authority, including the FDA, or any institutional review board or ethics committee has issued an order or recommendation that development, testing, manufacturing, marketing, sale and/or provision of any Material Product should cease, be suspended, or be interrupted; (iii) if a Material Product has been approved for marketing and sale, if (A) any marketing or sales of such Material Product should cease or be interrupted, (B) such Material Product should be withdrawn from the marketplace, or (C) the FDA should provide written 

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notice ordering or recommending any such cessation, interruption, or withdrawal, (iv) any Required Permit has been revoked, withdrawn, suspended, cancelled, materially limited, terminated or materially modified; (v) adverse clinical test results with respect to any Material Product has occurred; (vi) that Parent or any Subsidiary has conducted, including at the request of the FDA, any Recall or other forms of retrieval from any market of any Material Product (other than a Market Withdrawal or retrieval or discrete batches or lots that are not material in amount or quantity and are not made in conjunction with a larger Recall); (vii) any failures in the manufacturing of any Material Product such that the amount of such Material Product successfully manufactured in accordance with specifications thereof and the required payments to be made by or to the applicable Note Party or Subsidiary therefor in any two-month period shall decrease significantly with respect to the quantities of such Material Product and payments produced in the prior two-month period, except for such failures not reasonably expected to have a material adverse effect on Product supply levels; or (viii) any receipt by Parent or any Subsidiary, or to the knowledge of any Responsible Officer of any Note Party, any applicable third party, from the FDA or any state or local authority or any foreign counterpart thereof, of a Warning Letter, Form FDA-483, Untitled Letter, import hold, or any other written correspondence, inquiry or notice setting forth allegedly objectionable observations or alleged violations of Laws with regard to any Material Product or the manufacture, testing, processing, packing, promotion, sale, distribution, importation, or exportation or holding thereof, that in each case, could reasonably be expected to have a material adverse effect on the ability of the Parent and its Subsidiaries, taken as a whole, to develop or commercially exploit such Material Product (each event described in the foregoing clauses (i) through (viii), a “Regulatory Reporting Event”); provided, that, if after the Closing Date, Parent or any Subsidiary wishes to manufacture, sell, develop, test or market any new Product, the Issuer shall promptly (but in any event no later than the next Reporting Date) provide to the Purchasers a copy of an updated Schedule 1.01(b) to the Disclosure Letter and copies of all Required Permits relating to any such new Product that is a Material Product and/or Parent’s or the applicable Subsidiary’s manufacture, sale, development, testing or marketing thereof issued or outstanding as of the date of such notice.
Each notice pursuant to this Section 7.03(a) through (e), and (g) shall be accompanied by a statement of a Responsible Officer of Parent setting forth details of the occurrence referred to therein and stating what action the applicable Note Party has taken and proposes to take with respect thereto.  Each notice pursuant to Section 7.03(a) shall describe with particularity any and all provisions of this Agreement and any other Note Document that have been breached or with which there has been noncompliance.  With respect to any Regulatory Reporting Event, the Note Parties shall provide to the Collateral Agent and the Purchasers such further information (including copies of such documentation) as the Collateral Agent or any Purchaser shall reasonably request with respect to such Regulatory Reporting Event, including copies of any material notice or other correspondence received from or delivered to Parent, any Subsidiary or any third party (including the FDA or other federal, state or local Governmental Authority or any foreign counterpart thereof).

7.04    Payment of Obligations.
Pay and discharge, as the same shall become due and payable, (a) all national, federal and state income and other material tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the applicable Note Party or Subsidiary and (b) all lawful claims which, if unpaid, would by law become a Lien upon its property (other than Permitted Liens).

7.05    Preservation of Existence, Etc.
(a)    Preserve, renew and maintain in full force and effect its legal existence under the Laws of the jurisdiction of its incorporation or organization, except in a transaction permitted by Section 8.04 or Section 8.05.

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(b)    Preserve, renew and maintain in full force and effect its good standing under the Laws of the jurisdiction of its organization, except to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect.
(c)    Take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that the failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(d)    Preserve or renew all of its registered IP Rights or IP Rights in respect of which an application for registration has been filed or recorded with the United States Copyright Office or the United States Patent and Trademark Office, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  

7.06    Maintenance of Properties.
(a)    Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition(ordinary wear and tear and casualty and condemnation events excepted), except where the failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
(b)    Make all necessary repairs thereto and renewals and replacements thereof, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.
(c)    Use the standard of care typical in the industry in the operation and maintenance of its facilities.

7.07    Maintenance of Insurance.
(a)    Maintain with financially sound and reputable insurance companies not Affiliates of Parent, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types and in such amounts as are customarily carried under similar circumstances by such other Persons.
(b)    Without limiting the foregoing, (i) maintain, if available, fully paid flood hazard insurance on all real property that is located in a special flood hazard area and that constitutes Collateral, on such terms and in such amounts as required by The National Flood Insurance Reform Act of 1994 or as otherwise required by the Collateral Agent or (in relation to Collateral or insurance subject to a Lien created pursuant to the English Debenture, maintain insurance in accordance with the English Debenture), (ii) furnish to the Collateral Agent evidence of the renewal (and payment of renewal premiums therefor) of all such policies prior to the expiration or lapse thereof, and (iii) furnish to the Collateral Agent prompt written notice of any redesignation of any such improved real property into or out of a special flood hazard area.  
(c)    Cause the Collateral Agent and its successors and/or assigns to be named as Purchaser’s loss payee, assignee, chargee or mortgagee as its interest may appear, with respect to any such insurance providing property coverage and/or additional insured with respect to any such insurance providing general liability or products liability coverage, and cause each provider of such required insurance to agree, by endorsement upon the policy or policies issued by it, that it will give the Collateral Agent thirty (30) days (or such lesser amount as the Collateral Agent may agree to in its sole discretion) prior written notice before any such policy or policies shall be materially altered or canceled. So long as no Event of Default shall have occurred and be continuing, subject to Section 2.07(b), Parent and its Subsidiaries may retain all or any portion of the proceeds of any insurance of Parent and its Subsidiaries (and the Collateral Agent shall promptly remit to Parent or the applicable Subsidiary any proceeds with respect to such insurance received by the Collateral Agent).

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7.08    Compliance with Laws.
Comply with the requirements of all Laws and regulations and all judgments, orders, writs, injunctions and decrees applicable to it or to its business or properties, except in such instances in which (a) such requirement of Law or regulation or judgment, order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted, or (b) the failure to comply therewith, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

7.09    Books and Records.
(a)    Maintain proper books of record and account, in which full, true and correct entries in conformity in all material respects with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of such Note Party or such Subsidiary, as the case may be.
(b)    Maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over such Note Party or such Subsidiary, as the case may be.

7.10    Inspection Rights.
Permit representatives and independent contractors of the Collateral Agent and each Purchaser to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants (so long as a representative of the Note Parties is provided a reasonable opportunity to participate in any such discussion with accountants), all at the expense of the Issuer and at such reasonable times during normal business hours and as often as may be desired, upon reasonable advance notice to the Issuer; provided, however, the Issuer shall only be required to reimburse the Collateral Agent (but not any Purchaser) for its reasonable out-of-pocket costs and expenses in connection with one (1) such visit and inspection in any fiscal year; provided, further, however, when an Event of Default exists, the Collateral Agent or any Purchaser (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Issuer at any time during normal business hours, as often as desired and without advance notice.  All such visits and examinations pursuant to this Section 7.10 shall comply with Parent’s or such Subsidiary’s policies and protocols for safety for visitors to its facilities, including visits to any manufacturing areas.  Notwithstanding anything to the contrary in this Section 7.10 or any other provision of the Note Documents, none of Parent nor any of its Subsidiaries will be required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any document, information or other matter that (a) constitutes non-financial trade secrets or non-financial proprietary information, (b) in respect of which disclosure to the Collateral Agent or a Purchaser (or its respective representatives or contractors) is prohibited by law or (c) is subject to attorney-client or similar privilege or constitutes attorney work product.

7.11    Use of Proceeds.
Use the proceeds of the Notes (a) solely for the Initial Notes, to repay any and all Indebtedness under the Existing Athyrium Credit Facility, and for other general corporate purposes, and (b) for the Delayed Draw Notes, for general corporate purposes, provided, that, in no event shall the proceeds of the Notes be used in contravention of any Note Document. 

7.12    Additional Subsidiaries. 
Prior to or upon the acquisition or formation of any Subsidiary:
(a)    notify the Purchasers thereof in writing, together with the (i) jurisdiction of organization, (ii) number of shares of each class of Equity Interests outstanding, (iii) number and percentage of outstanding 

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shares of each class owned (directly or indirectly) by Parent or any Subsidiary and (iv) number and effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and all other similar rights with respect thereto;
(b)    if such Subsidiary (other than an Immaterial Subsidiary) is not an Excluded Subsidiary, cause such Person to become a Guarantor by executing and delivering to the Purchasers a Joinder Agreement or such other documents as the Required Purchasers shall reasonably request for such purpose, and deliver to the Collateral Agent documents of the types referred to in Sections 5.01(f) and (g) and if requested by the Required Purchasers, favorable opinions of counsel to such Person (which shall cover, among other things, the legality, validity, binding effect and enforceability of the documentation referred to above, as applicable), all in form, content and scope reasonably satisfactory to the Required Purchasers.

7.13    ERISA Compliance.
Do, and cause each of its ERISA Affiliates to do, each of the following: (a) maintain each Plan, both in form and operation, in compliance in all material respects with the applicable provisions of ERISA, the Internal Revenue Code and other federal or state law, (b) cause each Plan that is intended to be qualified under Section 401(a) of the Internal Revenue Code to maintain such qualification, and (c) make all required contributions to any Plan subject to Section 412, Section 430 or Section 431 of the Internal Revenue Code, in each case of clauses (a) through (c) above except as could not reasonably be expected to have a Material Adverse Effect.

7.14    Pledged Assets.
(a)    Equity Interests.  To secure each Note Party’s Obligations, cause (i) 100% of the issued and outstanding Equity Interests of each Subsidiary to be subject at all times, subject to Section 7.12(b), to a first priority, perfected Lien in favor of the Collateral Agent, for the benefit of the Purchasers, pursuant to the terms and conditions of the Collateral Documents, subject to Permitted Liens and to the extent not constituting Excluded Property, together with opinions of counsel (if requested by the Collateral Agent in connection with the entering into of a Collateral Document in connection with any such pledge) and any filings and deliveries necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory to the Collateral Agent and the Required Purchasers.
(b)    Other Property.  (i) Cause all property (other than Excluded Property) of the Issuer and each Guarantor to be subject at all times to first priority, perfected and, in the case of owned real property, title insured, Liens (provided that, in the case of owned real property located outside of the United States, title insurance shall be required only to the extent consistent with customary practice in the jurisdiction where such real property is located) in favor of the Collateral Agent for the benefit of the Purchasers and the other Secured Parties to secure each Note Party’s Obligations pursuant to (and subject to the limitations, timing requirements and exceptions set forth in) the Collateral Documents or, with respect to any such property acquired subsequent to the Closing Date (with respect to which (x) the Collateral Agent’s Lien does not automatically attach under then-existing Collateral Documents or (y) the then-existing Collateral Documents do not automatically create a Lien in favor of the Collateral Agent for the benefit of the Purchasers and the other Secured Parties), such other additional security documents as the Collateral Agent or Required Purchasers shall reasonably request (subject to Permitted Liens) and, in connection with the foregoing, deliver to the Collateral Agent such other documentation as the Collateral Agent may request including filings and deliveries necessary to perfect such Liens, Organization Documents, resolutions, Real Property Security Documents, and favorable opinions of counsel to such Person (if requested by the Collateral Agent or Required Purchasers in connection with the entering into of a Collateral Document in connection with the granting of any such Lien and security interest), all in form, content and scope reasonably satisfactory to the Collateral Agent and the Required Purchasers (provided that, in the case of owned real property located outside of the United States, real estate title insurance policies and other deliverables specific to such owned real property shall be required only to the extent consistent with customary practice in the jurisdiction where such real 

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property is located).  Notwithstanding anything to the contrary in the Note Documents, the Note Parties shall have sixty (60) days (or such longer period as the Required Purchasers shall agree in their sole discretion) to comply with this Section 7.14(b) with respect to any owned real property acquired after the Closing Date (such period to be measured from the date of acquisition of such real property).

7.15    Compliance with Material Contracts.
Comply with each Material Contract of such Person, except as could not reasonably be expected to have a Material Adverse Effect.  

7.16    Deposit Accounts.
(a)    Prior to or upon the acquisition or establishment of any Deposit Account (other than any Excluded Account) by any Note Party, provide written notice thereof to the Collateral Agent; provided, that the Note Parties shall provide written notice to the Collateral Agent of the acquisition or establishment of any Excluded Account on or before the first Reporting Date to occur after the acquisition or establishment thereof.
(b)    Cause all Deposit Accounts of the Note Parties (other than Excluded Accounts) at all times to be subject to Deposit Account Control Agreements, in each case in form and substance reasonably satisfactory to the Collateral Agent (it being understood that the Note Parties shall have ninety (90) days after the acquisition or establishment of a Deposit Account (or such longer period as the Collateral Agent shall agree in its sole discretion) to comply with this Section 7.16(b) with respect to any such Deposit Account acquired or established after the Closing Date in connection with a Permitted Acquisition or other Investment permitted by Section 8.02 (such period to be measured from the date of acquisition or establishment)). 

7.17    Products and Required Permits.
Without limiting the generality of Section 7.08, in connection with the development, testing, manufacture, marketing or sale of each and any Material Product by Parent or any Subsidiary, Parent or such Subsidiary shall comply in all material respects with all Required Permits, except where such non-compliance could not reasonably be expected to result in (i) the revocation of termination of such Required Permit or (ii) a Material Adverse Effect.

7.18    Consent of Licensors.
Promptly (but in any event no later than the next Reporting Date) after entering into or becoming bound by any license or agreement (other than over-the-counter software that is commercially available to the public) after the date hereof, the failure, breach or termination of which could reasonably be expected to have a Material Adverse Effect, the Note Parties shall (a) provide written notice to the Purchasers of the material terms of such license or agreement, all of which shall constitute “Information” pursuant to Section 12.07, regardless of whether marked confidential, and (b) in good faith take such commercially reasonable actions as the Collateral Agent or Required Purchasers may reasonably request to obtain the consent of, or waiver by, any Person whose consent or waiver is necessary for (i) the applicable Note Party’s interest in such licenses or contract rights to be deemed Collateral and for the Collateral Agent to have a security interest in it that might otherwise be restricted by the terms of the applicable license or agreement, whether now existing or entered into in the future and (ii) the Collateral Agent to have the ability in the event of a liquidation of any of the Collateral to dispose of such Collateral in accordance with the Collateral Agent’s rights and remedies under this Agreement and the other Note Documents, subject to such Collateral remaining subject to such license or other agreement notwithstanding such disposal; provided, that, the failure to obtain any such consent or waiver shall not by itself constitute a Default.

7.19    Anti-Corruption Laws.

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Conduct its business in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions which are applicable to such Person and maintain policies and procedures designed to promote and achieve compliance with such Laws. 

7.20    Post-Closing Deliverables.
Notwithstanding anything to the contrary herein or in the Note Documents (it being understood that to the extent that the existence of any of the following post-closing obligations that is not overdue would otherwise cause any representation, warranty, covenant, default or event of default in this Agreement or any other Note Document to be in breach, the Collateral Agent and the Purchasers hereby waive such breach for the period from the Closing Date until the first date on which such condition is required to be fulfilled (giving effect to any extensions thereof) pursuant to this Section 7.20), the Note Parties shall deliver or cause to be delivered the following items to the Collateral Agent no later than the dates set forth below (or such later date agreed to by the Collateral Agent in its sole discretion), and each such item shall be in form and substance reasonably satisfactory to the Collateral Agent:
(a)    No later than thirty (30) days after the Closing Date, insurance certificates and endorsements as required by and in compliance with Section 7.07;
(b)    No later than ninety (90) days after the Closing Date, Deposit Account Control Agreements as required by and in compliance with Section 7.16(b) for all Deposit Accounts in existence as of the Closing Date; 
(c)    Use all reasonable efforts to deliver Collateral Access Agreements for each applicable property as required by the definition of “Collateral Access Agreement” and otherwise under the Note Documents within ninety (90) days after the Closing Date or such later date as may be determined by the Required Purchasers; and
(d)    No later than thirty (30) days after the Closing Date, receipt by the Collateral Agent of evidence of the termination of the Intercompany Loan Agreement in form and substance reasonably satisfactory to the Required Purchasers.

7.21    Further Assurances.  Promptly upon the reasonable written request of the Collateral Agent, duly execute, acknowledge and/or deliver such further instruments or documents and do such other acts and things that may be necessary or desirable or that the Collateral Agent may reasonably request in order to effectuate or carry out more effectively the purposes of this Agreement and the other Note Documents and to enable the Collateral Agent and the Purchasers to exercise and enforce their respective rights and remedies hereunder and thereunder, including, after the Closing Date and subject to the limitations set forth in the definition of Excluded Property, taking such actions or steps as are reasonably deemed necessary or desirable by the Collateral Agent to maintain, perfect, protect and enforce the Collateral Agent’s security interests in and Liens (subject to Permitted Liens) on, in favor and for the benefit of Purchasers and the other Secured Parties, Collateral securing the Obligations created under the Security Agreement, the Pledge Agreement and the other Collateral Documents, in each case in accordance with the terms thereof.

ARTICLE VIII 
 
NEGATIVE COVENANTS
So long as any Purchaser shall have any Delayed Draw Note Commitment hereunder, any Note or other Obligation hereunder shall remain unpaid or unsatisfied (other than contingent indemnification obligations for which no claim has been asserted), no Note Party shall, nor shall it permit any Subsidiary to, directly or indirectly:

8.01    Liens.

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Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:
(a)    Liens pursuant to any Note Document;
(b)    Liens existing on the date hereof and listed on Schedule 8.01 to the Disclosure Letter;
(c)    Liens (other than Liens imposed under ERISA) for taxes, assessments or governmental charges or levies not yet delinquent or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;
(d)    statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and suppliers and other Liens imposed by law or pursuant to customary reservations or retentions of title arising in the ordinary course of business, provided, that, such Liens secure only amounts (i) not yet due and payable, (ii) if due, not overdue by more than thirty (30) days, or (iii) that if overdue by more than thirty (30) days are being contested in good faith by appropriate proceedings for which adequate reserves determined in accordance with GAAP have been established;
(e)    pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA;
(f)    deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, indemnity and performance bonds and other obligations of a like nature incurred in the ordinary course of business;
(g)    easements, rights-of-way, restrictions and other similar encumbrances affecting real property which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person and Liens disclosed on any Mortgage that are reasonably acceptable to Collateral Agent;
(h)    Liens securing judgments for the payment of money (or appeal or other surety bonds relating to such judgments) not constituting an Event of Default under Section 9.01(h);
(i)    (x) Liens securing Indebtedness permitted under Section 8.03(e)(x); provided, that: (i) such Liens do not at any time encumber any property other than the property financed by such Indebtedness, (ii) the Indebtedness secured thereby does not exceed the cost (negotiated on an arm’s length basis) of the property being acquired on the date of acquisition and (iii) such Liens attach to such property concurrently with or within ninety (90) days after the acquisition thereof and (y) Liens securing Indebtedness permitted under Section 8.03(e)(y) on any assets or property prior to the acquisition thereof and not created in contemplation of or in connection with such acquisition or Investment; provided, that, such Liens do not at any time encumber any assets or property other than the assets or property financed by such Indebtedness and such Liens do not apply to any other assets or property of Parent or any Subsidiary;
(j)    licenses, sublicenses, leases or subleases (other than relating to intellectual property) granted to others in the ordinary course of business not interfering in any material respect with the business of any Note Party or any of its Subsidiaries;
(k)    any interest of title of a lessor under, and Liens arising from UCC financing statements (or equivalent filings, registrations or agreements in foreign jurisdictions) relating to, leases permitted by this Agreement and the filing of UCC financing statements as a precautionary measure with respect thereto;

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(l)    Liens arising in the ordinary course of business by virtue of any contractual, statutory or common law provision relating to banker’s Liens, rights of setoff or similar rights and remedies covering deposit or securities accounts (including funds or other assets credited thereto) or other funds maintained with a depository institution or securities intermediary, in each case incurred in the ordinary course of business;
(m)    Liens of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection; 
(n)    Liens of sellers of goods to Parent and any of its Subsidiaries arising under Article 2 of the Uniform Commercial Code or similar provisions of applicable law in the ordinary course of business, covering only the goods sold and securing only the unpaid purchase price for such goods and related expenses;
(o)    Permitted Licenses; 
(p)    Liens on cash collateral in an aggregate principal amount not to exceed $2,000,000 outstanding at any one time pledged to secure Indebtedness (i) in respect of corporate credit cards, purchase cards or bank card products permitted pursuant to Section 8.03(f) and (ii) of the type permitted by Section 8.03(i);
(q)    Liens in favor of customs and revenue authorities arising as a matter of law, in the ordinary course of business, to secure payment of customs duties in connection with the importation of goods;
(r)    pledges and deposits in the ordinary course of business securing liability to insurance carriers providing property, casualty or liability insurance to Parent or any Subsidiary (including obligations in respect of letters of credit or bank guarantees for the benefit of such insurance carriers);
(s)    rights of first refusal, voting, redemption, transfer or other restrictions (including call provisions and buy-sell provisions) with respect to the Equity Interests of any Joint Venture or other Persons that are not Subsidiaries; 
(t)    any Lien arising under conditional sale, title retention, consignment or similar arrangements for the sale of goods in the ordinary course of business; provided that such Lien attaches only to the goods subject to such sale, title retention, consignment or similar arrangement; 
(u)    to the extent constituting a Lien, cash escrow arrangements securing indemnification obligations associated with a Permitted Acquisition or any other Investment permitted under Section 8.02;
(v)    Liens solely on cash earnest money deposits made by Parent or any of its Subsidiaries in connection with any letter of intent or purchase agreement for a Permitted Acquisition or any other Investment permitted under Section 8.02;
(w)    Liens on cash and Cash Equivalents securing Indebtedness permitted under Section 8.03(h), in an aggregate principal amount not to exceed $6,250,000 outstanding at any one time; 
(x)    Liens securing Indebtedness permitted under Section 8.03(r) hereof; and 
(y)    other Liens securing Indebtedness or other obligations, in an aggregate amount not to exceed $250,000 outstanding at any one time.  

8.02    Investments. 

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Make any Investments, except:
(a)    Investments held by a Note Party or a Subsidiary in the form of cash or Cash Equivalents;
(b)    Investments existing as of the Closing Date and set forth in Schedule 8.02 to the Disclosure Letter;
(c)    (i) Investments in any Person that is a Note Party prior to giving effect to such Investment and (ii) Investments permitted under Section 8.03(c)(iv); 
(d)    Investments by any Subsidiary of Parent that is not a Note Party in any other Subsidiary of Parent that is not a Note Party;
(e)    Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business;
(f)    Permitted Acquisitions and earnest money deposits in connection therewith and Investments acquired as a result of 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 prior to the date of such Permitted Acquisition;
(g)    (i) loans and advances to officers, directors and employees of Parent and/or its Subsidiaries in an aggregate amount not to exceed $1,000,000 at any time outstanding, for travel, entertainment, relocation and analogous ordinary business purposes and (ii) Investments in an aggregate amount not to exceed $1,000,000 consisting of non-cash loans to employees, officers, or directors relating to the purchase of equity securities of Parent or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Parent’s Board of Directors; 
(h)    Investments (including Indebtedness obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;
(i)    Investments consisting of the non-cash portion of the sales consideration received by Parent or any of its Subsidiaries in connection with any Disposition permitted under Section 8.05;
(j)    Investments consisting of security deposits with utilities, landlords and other like Persons made in the ordinary course of business;
(k)    Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business;
(l)    (i) Joint Ventures or strategic alliances consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, and (ii) other Joint Ventures; provided, that any capital contribution or other Investment in any such Joint Ventures by Parent and its Subsidiaries in reliance on this Section 8.02(l) shall be limited to the entering into a Permitted License with such Joint Venture;
(m)    Investments in respect of obligations under Swap Contracts permitted under Section 8.03;
(n)    to the extent constituting Investments, Guarantees of Indebtedness, which Guarantees are expressly permitted under Section 8.03;

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(o)    to the extent constituting Investments, Investments in the form of Permitted Bond Hedge Transactions and Permitted Warrant Transactions, in each case, entered into in connection with Permitted Convertible Bond Indebtedness permitted by Section 8.03(q); and
(p)    other Investments not exceeding $1,500,000 in the aggregate in any fiscal year, provided, that the portion of such amount that is not used by Parent or its Subsidiaries in any fiscal year shall be carried forward and added to the amounts available for Investments in the succeeding fiscal years. 

8.03    Indebtedness.  
Create, incur, assume or suffer to exist any Indebtedness, except:
(a)    Indebtedness under the Note Documents;
(b)    Indebtedness of Parent and its Subsidiaries existing on the Closing Date and described on Schedule 8.03 to the Disclosure Letter;
(c)    (i) intercompany Indebtedness permitted under Section 8.02, (ii) intercompany Indebtedness between Note Parties, (iii) intercompany Indebtedness between Subsidiaries that are not Note Parties and (iv) intercompany Indebtedness owed by Subsidiaries that are not Note Parties to Note Parties in an amount not to exceed $10,000,000 at any time outstanding; 
(d)    obligations (contingent or otherwise) of Parent or any Subsidiary existing or arising under any Swap Contract, provided, that, such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a “market view”;
(e)    (x) purchase money Indebtedness (including obligations in respect of Capital Leases or Synthetic Leases) hereafter incurred by Parent or any of its Subsidiaries to finance the purchase of fixed assets, and renewals, refinancings and extensions thereof, provided, that, (i) the total of all such Indebtedness incurred in reliance on this clause (x) for all such Persons taken together, together with the total of all Indebtedness assumed by Parent and its Subsidiaries in reliance on clause (y) of this Section 8.03(e), shall not exceed an aggregate principal amount of $10,000,000 at any time outstanding, (ii) such Indebtedness when incurred shall not exceed the purchase price of the asset(s) financed, and (iii) no such Indebtedness shall be refinanced for a principal amount in excess of the principal balance outstanding thereon at the time of such refinancing (other than by an amount equal to unpaid interest and premium thereon, and any underwriting discounts, fees, commissions and expenses associated with such refinancing); and (y) purchase money Indebtedness (including obligations in respect of Capital Leases or Synthetic Leases) assumed in connection with a Permitted Acquisition or other Investment permitted by Section 8.02, that was incurred to finance the purchase of fixed assets, and renewals, refinancings and extensions thereof; provided, that, (i) the total of all such Indebtedness assumed in reliance on this clause (y) for all such Persons taken together, together with the total of all Indebtedness incurred by Parent and its Subsidiaries in reliance on clause (x) of this Section 8.03(e), shall not exceed an aggregate principal amount of $10,000,000 at any time outstanding, (ii) no such Indebtedness shall be refinanced for a principal amount in excess of the principal balance outstanding thereon at the time of such refinancing (other than by an amount equal to unpaid interest and premium thereon, and any underwriting discounts, fees, commissions and expenses associated with such refinancing), and (iii) such Indebtedness shall not have been incurred in contemplation of or in connection with such Permitted Acquisition or other Investment; 
(f)    Indebtedness in respect of obligations relating to corporate credit cards, purchase cards or bank card products, not to exceed $2,000,000 in the aggregate at any one time outstanding;

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(g)    Guarantees of Indebtedness otherwise permitted under this Section 8.03;
(h)    Indebtedness with respect to outstanding letters of credit, banker’s acceptances or similar instruments posted in the ordinary course of business, provided, the outstanding principal amount of such Indebtedness shall not exceed $6,250,000 in the aggregate at any time;
(i)    Indebtedness in respect of any agreement providing for treasury, depositary, or cash management services, including in connection with any automated clearing house transfers of funds or any similar transactions, securities settlements, foreign exchange contracts, assumed settlement, netting services, overdraft protections and other cash management, intercompany cash pooling and similar arrangements, in each case in the ordinary course of business;
(j)    advances or deposits in the ordinary course of business from customers, vendors or partners and not constituting Indebtedness for borrowed money; 
(k)    workers’ compensation claims, payment obligations in connection with health, disability or other types of social security benefits, unemployment or other insurance obligations, reclamation and statutory obligations, in each case incurred in the ordinary course of Parent’s or its Subsidiaries’ business;
(l)    Indebtedness and related guarantees incurred solely as a result of endorsing negotiable instruments in the ordinary course of business; 
(m)    Indebtedness constituting Earn Out Obligations or obligations in respect of working capital adjustment requirements under the agreements used to consummate a Permitted Acquisition or other Investment permitted under Section 8.02;
(n)    other unsecured Indebtedness in an aggregate amount not to exceed $2,000,000 at any one time outstanding; 
(o)    Indebtedness in respect of (i) surety and appeal bonds, performance bonds, bid bonds, appeal bonds, completion guarantees and similar obligations incurred in the ordinary course of business and (ii) customary indemnification obligations to purchasers in connection with Dispositions permitted by Section 8.05;
(p)    Indebtedness owed to any Person in respect of the purchase price for property, casualty, liability, or other insurance to any Note Party or to any of their Subsidiaries, or to a premium finance company with respect only to such insurance premiums; 
(q)    Permitted Convertible Bond Indebtedness; provided, that the aggregate principal amount of Indebtedness incurred pursuant to this clause (q) (i) shall not exceed, when multiplied by the per annum cash interest rate applicable to such Indebtedness, $6,750,000 at any time outstanding and (ii) shall not exceed at the time such Indebtedness is incurred an amount equal to Consolidated Net Sales for the trailing twelve-month period ended immediately prior to the date such Indebtedness is incurred multiplied by a factor of 3; and
(r)    Indebtedness of Parent or any other Note Party in the form of a working capital or revolving credit facility with a maximum credit line of no more than the lesser of (x) 20% of Consolidated Net Sales for the trailing twelve-month period ended immediately prior to the closing date of such facility and (y) $50,000,000 (the “Revolving Credit Facility”); provided, that that as of the closing date of such Revolving Credit Facility, Consolidated Net Sales, for the trailing twelve-month period ended immediately prior to such date, are equal to or exceed $75,000,000; provided, further, that such Indebtedness may be secured on a first priority basis by Liens on any Collateral constituting accounts receivable, inventory, cash, and any Deposit Account established and maintained with the lender under such Revolving Credit Facility to hold 

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such cash, supporting obligations and all proceeds of the foregoing and, in the sole discretion of the Collateral Agent, other assets over which an asset-based revolving lender would customarily have a first priority Lien to secure the obligations under such facility, to secure the obligations under such Revolving Credit Facility (collectively, the “Revolving Credit Priority Collateral”), and such Liens may be senior in rank, order of priority and enforcement to the security interests and Liens of the Collateral Agent (in favor and for the benefit of the Purchasers and the other Secured Parties) in the Revolving Credit Priority Collateral to secure the Obligations pursuant to an intercreditor, subordination or other similar agreement among such Note Party, the holder (or agent or representative of the holders) of such Indebtedness and the Collateral Agent, in form and substance reasonably satisfactory to each of such holder, agent or representative and the Collateral Agent (the “Intercreditor Agreement”); provided, finally, that no Subsidiary shall Guarantee, or provide a Lien to secure, the obligations under such Revolving Credit Facility if such Subsidiary is not a Guarantor (and does not pledge its assets in support thereof) in accordance with the terms of the Note Documents.

8.04    Fundamental Changes.
Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person; provided, that, notwithstanding the foregoing provisions of this Section 8.04 but subject to the terms of Sections 7.12 and 7.14, (a) Parent or Issuer may merge or consolidate with any Subsidiary, provided that Parent or Issuer shall be the continuing or surviving entity, (b) any Note Party (other than Parent or Issuer) may merge or consolidate with any other Note Party (other than Parent or Issuer), (c) any Subsidiary that is not a Note Party may be merged or consolidated with or into any Note Party, provided that the continuing or surviving Person shall be such Note Party or concurrently therewith becomes a Note Party, (d) any Subsidiary that is not a Note Party may be merged or consolidated with or into any other Subsidiary that is not a Note Party, (e) any Subsidiary may dissolve, liquidate or wind up its affairs at any time provided that such dissolution, liquidation or winding up could not reasonably be expected to have a Material Adverse Effect and all of its assets and business are transferred to a Note Party or, solely in the case of a Subsidiary that is not a Note Party, another Subsidiary that is not a Note Party prior to or concurrently with such dissolution, liquidation or winding up, and (f) in connection with any Permitted Acquisition or other Investment permitted under Section 8.02, Parent or any Subsidiary of Parent may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it, so long as (i) the Person surviving such merger with any Subsidiary shall be a direct or indirect Wholly-Owned Subsidiary of Parent, (ii) in the case of any such merger to which Parent or the Issuer is a party, Parent or the Issuer, as applicable, is the surviving Person, and (iii) in the case of any such merger to which a Note Party (other than Parent or the Issuer) is a party, the surviving Person is such Note Party or concurrently therewith becomes a Note Party; provided that in the case of clauses (a) through (d) and clause (f) above, no entity organized in any political subdivision of the United States may merge or consolidate with and into, or be merged or consolidated with or into, an entity organized in a jurisdiction other than another political subdivision of the United States. 

8.05    Dispositions.
Make any Disposition (which for the avoidance of doubt shall not include any Permitted Transfer) unless (a) the consideration paid in connection with such Disposition shall be at least 75% cash or Cash Equivalents paid contemporaneously with consummation thereof and shall be in an amount not less than the fair market value (as reasonably determined by Parent in good faith) of the assets disposed of, (b) no Default or Event of Default shall have occurred and be continuing both immediately prior to and after giving effect to such Disposition, (c) such Disposition does not involve the sale or other disposition of a minority equity interest in any Subsidiary, (d) such Disposition does not involve a sale, transfer, license (other than Permitted License) or other disposition of XHANCE or any rights related thereto in the United States or any state or political subdivision thereof, and (e) the aggregate fair market value of all of the assets sold or otherwise disposed of in such Disposition, taken together with the aggregate fair market value of all assets sold or otherwise disposed of by Parent and its Subsidiaries in all Dispositions permitted under this Section 8.05 and occurring during the term of this Agreement, does not exceed $5,000,000. 

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8.06    Restricted Payments.
Declare or make, directly or indirectly, any Restricted Payment, except that:  
(a)    each Subsidiary that is a Note Party may make Restricted Payments to any Note Party, and (ii) each Subsidiary that is not a Note Party may make Restricted Payments to a Note Party and to another Subsidiary that is not a Note Party and pro rata Restricted Payments to minority stockholders of any such Subsidiary;
(b)    Parent and each Subsidiary may declare and make dividend payments or other distributions payable solely in the Qualified Capital Stock of such Person (including in connection with the conversion of Permitted Convertible Bond Indebtedness or Equity Interests of Parent);
(c)    (i) Parent may make cashless repurchases of Equity Interests deemed to occur upon exercise of stock options or warrants of such Equity Interests to represent a portion of the exercise price of such options or warrants and (ii) to the extent constituting a Restricted Payment, Parent may acquire (or withhold) its Equity Interests pursuant to any employee stock option or similar plan in satisfaction of withholding or similar taxes payable by any present or former officer, employee, director or member of management and Parent may make deemed repurchases in connection with the exercise of stock options; 
(d)    Parent may make payments of cash in lieu of fractional shares of Equity Interests arising out of stock dividends, splits or combinations in connection with exercises or conversions of options, warrants and other convertible securities;
(e)    [Reserved];
(f)    Parent and each Subsidiary may make payments in respect of the repurchase of Equity Interests from former officers, directors, employees, consultants or other holders of Equity Interests of Parent and its Subsidiaries in connection with the termination of such Persons’ services or pursuant to stock repurchase plans or agreements, employee stock option agreements, restricted stock agreements, equity incentive plans or other similar agreements or plans, not to exceed an aggregate amount of $1,000,000 in any fiscal year (it being agreed that, to the extent constituting an Investment permitted by Section 8.02(g)(ii), the amount of any Indebtedness of such Persons owing to Parent or any Subsidiary forgiven in connection with such Restricted Payment shall be excluded from any determination pursuant to this clause (f)); provided that the portion of such basket that is not used by Parent or its Subsidiaries in any fiscal year shall be carried-forward and shall increase such basket for succeeding fiscal years; 
(g)    Parent and each Subsidiary may effect the distribution of rights pursuant to any shareholder rights plan or the redemption of such rights for nominal consideration in accordance with the terms of any shareholder rights plan; 
(h)    Parent and each Subsidiary may make any payment of premium to a counterparty under a Permitted Bond Hedge Transaction in accordance with the definition thereof; 
(i)    Parent and each Subsidiary may make payments to redeem or repurchase the Equity Interests held by any minority shareholder in any Joint Venture or Subsidiary that is not a Wholly-Owned Subsidiary, in each case, to the extent such redemption or repurchase constitutes an Investment permitted under Section 8.02(p) and the amount then-available under Section 8.02(p) is equal to or exceeds the amount of such payment; and
(j)    Parent and each Subsidiary may make any payment or delivery in connection with a Permitted Warrant Transaction by (i) delivery of shares of the Parent’s common stock upon net share settlement thereof and any related purchase of such common stock required to be made in connection with 

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such delivery, (ii) set-off or payment of an early termination payment or similar payment thereunder, in each case, in Parent’s common stock upon any early termination thereof or (iii) in the event of cash settlement upon settlement, any payment of a cash settlement or equivalent amount.

8.07    Change in Nature of Business.
Engage in any material line of business substantially different from those lines of business conducted by Parent and its Subsidiaries on the Closing Date or any business reasonably related or incidental thereto or which constitutes a reasonable extension or expansion thereof. 

8.08    Transactions with Affiliates and Insiders.
Enter into or permit to exist any transaction or series of transactions with any officer, director or Affiliate of such Person other than (a) transactions among Note Parties or among Subsidiaries that are not Note Parties, (b) transfers of cash and assets to any Note Party, (c) intercompany transactions expressly permitted by Section 8.02, Section 8.03, Section 8.04, Section 8.05 or Section 8.06, (d) normal and reasonable compensation (including performance, discretionary, retention, relocation, transaction and other special bonuses and payment, severance payments and payments pursuant to employment agreements) and other benefits (including retirement, health, stock option and other benefit plans, life insurance, disability insurance and other equity (or equity-linked) awards) and reimbursement of expenses of officers and directors in the ordinary course of business, (e) except as otherwise specifically limited in this Agreement, other transactions which are entered into in such Person’s business on terms and conditions substantially as favorable to such Person as would be obtainable by it in a comparable arms-length transaction with a Person other than an officer, director or Affiliate, (f) transactions set forth on Schedule 8.08 to the Disclosure Letter and (g) transactions including consideration of less than $10,000.

8.09    Burdensome Agreements.
Enter into, or permit to exist, any Contractual Obligation that encumbers or restricts the ability of any such Person to (i) make Restricted Payments to any Note Party, (ii) pay any Indebtedness or other obligations owed to any Note Party, (iii) make loans or advances to any Note Party, (iv) transfer any of its property to any Note Party, (v) pledge its property pursuant to the Note Documents or any renewals, refinancings, exchanges, refundings or extension thereof, or (vi) act as a Note Party pursuant to the Note Documents or any renewals, refinancings, exchanges, refundings or extension thereof, except (in respect of any of the matters referred to in clauses (i) through (vi) above) for (1) this Agreement and the other Note Documents, (2) any document or instrument governing Indebtedness incurred pursuant to Section 8.03(e), provided, that, any such restriction contained therein relates only to the asset or assets constructed or acquired in connection therewith, (3) any Permitted Lien or any document or instrument governing any Permitted Lien, provided, that, any such restriction contained therein relates only to the asset or assets subject to such Permitted Lien, (4) customary restrictions and conditions contained in any agreement relating to the sale of any property permitted under Section 8.05 pending the consummation of such sale, (5) customary provisions regarding confidentiality or restricting assignment, pledges or transfer of any Permitted License or any agreement entered into in the ordinary course of business, (6) customary provisions in joint venture agreements and other similar agreements applicable to, and agreements evidencing Indebtedness of, Joint Ventures permitted under Section 8.02 and applicable solely to the assets of such Joint Venture and the Equity Interests in such Joint Venture, so long as such provisions and restrictions remain in effect, (7) restrictions or encumbrances in any agreement in effect at the time any Person becomes a Subsidiary that is not a Wholly-Owned Subsidiary, so long as (x) such agreement was not entered into in contemplation of such Person becoming a Subsidiary, (y) such restrictions or encumbrances do not extend beyond such Subsidiary or its assets, and (z) such restrictions or encumbrances only exist for so long as such Subsidiary is not required to become a Note Party pursuant to the terms hereof, (8) restrictions or encumbrances of the type described in clause (iv) above in any agreement evidencing Permitted Convertible Bond Indebtedness that restricts the merger or consolidation of, or the sale of all or substantially all of the assets of, Parent, and (9) the Permitted Revolving Credit Documents entered into in connection with a Revolving Credit Agreement permitted 

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under Section 8.03(r), including the Intercreditor Agreement entered into by the Collateral Agent in connection therewith.

8.10    Use of Proceeds.
Use the proceeds of any Note, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U issued by the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

8.11    Prepayment of Junior Indebtedness, 
Make (or give any notice with respect thereto) any voluntary or optional payment or prepayment or redemption or acquisition for value of (including by way of depositing money or securities with the trustee with respect thereto before due for the purpose of paying when due), refund, refinance or exchange of any Junior Debt of any Note Party or any Subsidiary (other than (a) intercompany Indebtedness of Parent and its Subsidiaries permitted by Section 8.03, (b) unsecured Indebtedness incurred in reliance on Section 8.03(f) or Section 8.03(i), (c) any prepayment, redemption or conversion of any Permitted Convertible Bond Indebtedness that is made or settled in Qualified Capital Stock of Parent or, in respect of any fractional shares to be issued, in cash, (d) any prepayment or redemption of any Permitted Convertible Bond Indebtedness pursuant to an exchange for other Permitted Convertible Bond Indebtedness or with the proceeds from the substantially contemporaneous incurrence of any Permitted Convertible Bond Indebtedness or (e) any prepayment or repayment of any Indebtedness permitted under Section 8.03(r) if and to the extent such prepayment or repayment is permitted under the Intercreditor Agreement entered into by the Collateral Agent in connection with the Permitted Revolving Credit Facility relating thereto) or make any payment in violation of any subordination provision applicable to such Junior Debt.

8.12    Organization Documents; Fiscal Year; Legal Name, Jurisdiction of Formation and Form of Entity.
(a)    Amend, modify or change its Organization Documents in a manner materially adverse to the Purchasers.
(b)    Change its fiscal year without the written consent of the Collateral Agent.
(c)    Without providing ten (10) days prior written notice to the Collateral Agent, change its name, jurisdiction of organization or form of organization.

8.13    Ownership of Subsidiaries.
Notwithstanding any other provisions of this Agreement to the contrary, (a) permit any Person (other than any Note Party or any Wholly-Owned Subsidiary of Parent) to own any Equity Interests of any Subsidiary of any Note Party in existence as of the Closing Date, except to qualify directors where required by applicable law or to satisfy other requirements of applicable law with respect to the ownership of Equity Interests of Foreign Subsidiaries, (b) permit any Note Party or any Subsidiary to issue or have outstanding any shares of Disqualified Capital Stock or (c) create, incur, assume or suffer to exist any Lien on any Equity Interests of any Subsidiary of any Note Party, except for Permitted Liens.

8.14    Sale Leasebacks.
Enter into any Sale and Leaseback Transaction.

8.15    Sanctions; Anti-Corruption Laws.

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(a)    Directly or indirectly, use the proceeds of any Note, or lend, contribute or otherwise make available such proceeds of any Note to any Person, to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at the time of such funding, is the subject of Sanctions such that funding is prohibited by applicable Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transactions hereunder, whether as a Purchaser, Collateral Agent or otherwise) of Sanctions.
(b)    Directly or indirectly, use the proceeds of any Note for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions.

8.16    Financial Covenants.
(a)    Minimum Consolidated Net Sales.  Permit trailing twelve-month Consolidated Net Sales, tested for each fiscal quarter commencing with the fiscal quarter ending December 31, 2019, to fall below the amount under the applicable column titled “Net Sales Threshold (for any fiscal quarter in which the only Notes issued hereunder are the Initial Notes)” or “Net Sales Threshold (for any fiscal quarter in which the Notes issued hereunder include any Delayed Draw Notes)” set forth opposite the period in the table below:

	
							
	

Twelve Month Period Ending
	Net Sales Threshold (for any fiscal quarter in which the only Notes issued hereunder are the Initial Notes)
	Net Sales Threshold (for any fiscal quarter in which the Notes issued hereunder include any Delayed Draw Notes)

	December 31, 2019
	

	$15,000,000
	

	

	$18,000,000
	

	March 31, 2020
	

	$20,000,000
	

	

	$25,000,000
	

	June 30, 2020
	

	$27,000,000
	

	

	$32,000,000
	

	September 30, 2020
	

	$33,000,000
	

	

	$40,000,000
	

	December 31, 2020
	

	$40,000,000
	

	

	$48,000,000
	

	March 31, 2021
	

	$48,000,000
	

	

	$58,000,000
	

	June 30, 2021
	

	$58,000,000
	

	

	$70,000,000
	

	September 30, 2021
	

	$68,000,000
	

	

	$82,000,000
	

	December 31, 2021
	

	$79,000,000
	

	

	$95,000,000
	

	March 31, 2022
	

	$86,750,000
	

	

	$98,750,000
	

	June 30, 2022
	

	$94,500,000
	

	

	$102,500,000
	

	September 30, 2022
	

	$102,250,000
	

	

	$106,250,000
	

	December 31, 2022
	

	$110,000,000
	

	

	$110,000,000
	

	March 31, 2023
	

	$113,750,000
	

	

	$113,750,000
	

	June 30, 2023
	

	$117,500,000
	

	

	$117,500,000
	

	September 30, 2023
	

	$121,250,000
	

	

	$121,250,000
	

	December 31, 2023
	

	$125,000,000
	

	

	$125,000,000
	

(b)    Minimum Consolidated Liquidity.  At any and all times from and after the Closing Date, after giving effect to the transactions contemplated hereunder and the other Note Documents, permit Parent and its Subsidiaries that are Note Parties to have Consolidated Liquidity, tested as of the end of each Business Day, of less than $30,000,000; provided, that solely until the earlier of (i) date that is ninety (90) days after the Closing Date (or such longer period as Collateral Agent shall agree in its sole discretion) and (ii) the date 

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when all required Deposit Account Control Agreements under Section 7.20(b) have been executed and delivered, the Note Parties shall not be required to maintain such amount in Deposit Accounts for which the Collateral Agent has received Deposit Account Control Agreements but may rather maintain such amount in Deposit Accounts in existence as of the Closing Date for which the Collateral Agent has not received a Deposit Account Control Agreement.  For the avoidance of doubt, no Note Party shall be required to maintain a restricted account for purposes of complying with this Section 8.16(b).

ARTICLE IX 
 
EVENTS OF DEFAULT AND REMEDIES

9.01    Events of Default.
Any of the following shall constitute an Event of Default:
(a)    Non-Payment.  The Issuer or any other Note Party fails to pay (i) when and as required to be paid herein, any amount of principal of any Note, or (ii) within three (3) Business Days after the same becomes due, any interest on any Note, or any fee due hereunder, or (iii) within five (5) Business Days after the same becomes due, any other amount payable hereunder or under any other Note Document; or
(b)    Specific Covenants.  Any Note Party fails to perform or observe any term, covenant or agreement contained in any of (i) Section 7.01, 7.02(a), (b), (e), (h) or (i), 7.03(a), 7.05(a) (solely as to any Note Party), 7.10, 7.11, 7.12, 7.14(a), 7.16, 7.20 or Article VIII or (ii) Section 7.02(c), (f), or (g), and such failure specified in this clause (ii) continues for fifteen (15) days after the earlier of the date on which (A) a Responsible Officer of any Note Party becomes aware of such failure and (B) written notice thereof shall have been given to any Note Party by the Collateral Agent or any Purchaser; or 
(c)    Other Defaults.  Any Note Party fails to perform or observe any other covenant or agreement (not specified in clause (a) or (b) above) contained in any Note Document on its part to be performed or observed and such failure continues for thirty (30) days after the earlier of the date on which (i) a Responsible Officer of any Note Party becomes aware of such failure and (ii) written notice thereof shall have been given to any Note Party by the Collateral Agent or any Purchaser; or
(d)    Representations and Warranties.  Any representation, warranty or certification made or deemed made by or on behalf of the Issuer or any other Note Party herein, in any other Note Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or
(e)    Cross-Default.  (i) Any Note Party or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise, and subject to any applicable grace periods) in respect of any Indebtedness (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; provided, that, clause (i)(B) above shall not apply to (x) secured Indebtedness that becomes due as a result of the sale or transfer of the property or assets securing such Indebtedness, if such sale or 

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transfer is permitted hereunder and under the documents governing such Indebtedness and (y) the conversion of Permitted Convertible Bond Indebtedness permitted pursuant to Section 8.11(c) or (ii) there occurs under any Swap Contract (other than a Permitted Bond Hedge Transaction or Permitted Warrant Transaction) an Early Termination Date (as defined in such Swap Contract) resulting from any event of default under such Swap Contract as to which Parent or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) and the Swap Termination Value owed by Parent or such Subsidiary as a result thereof is greater than the Threshold Amount; or
(f)    Insolvency Proceedings, Etc.  Any Note Party or any of its Subsidiaries institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, administrator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, administrator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for sixty calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for sixty calendar days, or an order for relief is entered in any such proceeding; or
(g)    Inability to Pay Debts; Attachment.  (i) Any Note Party or any of its Subsidiaries becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within thirty days after its issue or levy; or
(h)    Judgments.  There is entered against any Note Party or any Subsidiary one or more final judgments, orders or decrees for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer does not dispute or deny coverage) or (ii) any one or more non-monetary final judgments, orders or decrees that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment, order or decree or (B) such judgment, order or decree shall not have been vacated or discharged or stayed or bonded pending appeal within thirty (30) calendar days from entry thereof; or
(i)    ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any Note Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) Parent or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or
(j)    Invalidity of Note Documents.  Any material provision of any Note Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder, ceases to be in full force and effect or ceases to be valid and binding on or enforceable against any Note Party; or any Note Party or any Permitted Holder contests in any manner the validity or enforceability of any Note Document; or any Note Party denies that it has any or further liability or obligation under any Note Document, or purports to revoke, terminate or rescind any Note Document; or any Collateral Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder, ceases to create a valid security interest in any material portion of the Collateral purported to be covered thereby or such security interest shall for any reason other than as expressly permitted hereunder or thereunder cease to be a perfected and first priority security interest in any material portion of the Collateral subject thereto, subject only to Permitted Liens, in each case, other than as a direct result of any action by 

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the Collateral Agent or the Purchasers or failure of the Collateral Agent or the Purchasers to perform an obligation thereof under the Note Documents; or
(k)    Material Adverse Effect.  There occurs any circumstance or circumstances that could reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect; or
(l)    Change of Control.  There occurs any Change of Control; or
(m)    Invalidity of Subordination Provisions.  Any subordination provision in any document or instrument governing Indebtedness that is purported to be subordinated to the Obligations or any subordination provision in any subordination agreement that relates to any Indebtedness that is to be subordinated to the Obligations, or any subordination provision in any guaranty by any Note Party of any such Indebtedness, shall cease to be in full force and effect, or any Person (including the holder of any such Indebtedness) shall contest in any manner the validity, binding nature or enforceability of any such provision; or
(n)    Regulatory Events.  (i) The FDA shall revoke, withdrawal, cancel or terminate marketing approval of XHANCE in the U.S. and such action remains undischarged or unstayed for more than sixty (60) days; or (ii)(1) any Governmental Authority (including the FDA) shall revoke, withdrawal, cancel, terminate, suspend, materially limit or materially modify any Required Permit relating to XHANCE, (2) the marketing of XHANCE is voluntarily suspended by any Note Party or Subsidiary or (3) any Note Party or any Subsidiary shall initiate any recall of XHANCE or any Safety Notice is issued in connection therewith (each of the foregoing clauses (1), (2) and (3), a “Regulatory Event”), and, the occurrence of the Regulatory Event is (x) reasonably expected to prevent the marketing of XHANCE in the U.S. for more than six (6) months or (y) reasonably expected to result in the Note Parties failure to comply with the financial covenants in Section 8.16(a) and, solely if such covenants (or subsection thereof) is in effect immediately prior to such Regulatory Event, Section 8.16(b), during the twelve-month period following such Regulatory Event; or
(o)    Permitted Bond Hedge Transactions and Permitted Warrant Transactions.  There occurs under any Permitted Bond Hedge Transaction or Permitted Warrant Transaction an Early Termination Date (as defined therein) resulting from any event of default thereunder as to which Parent or any Subsidiary is the Defaulting Party (as defined therein) and the net termination value owed by Parent or such Subsidiary as a result thereof is greater than the Threshold Amount, and such termination value is required to be paid in cash and may not be settled by the delivery of common stock of Parent.

9.02    Remedies Upon Event of Default.
If any Event of Default occurs and is continuing, the Required Purchasers may take any or all of the following actions:
(a)    declare the Delayed Draw Note Commitments of each Purchaser to be terminated, whereupon such commitments and obligation shall be terminated;
(b)    declare the unpaid principal amount of all outstanding Notes, all interest accrued and unpaid thereon, any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable with respect thereto and all other amounts owing or payable hereunder or under any other Note Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Note Parties; and
(c)    exercise, or instruct the Collateral Agent to exercise (and the Collateral Agent shall exercise upon such instruction), all rights and remedies available to the Collateral Agent or the Purchasers under the Note Documents;

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provided, however, that upon the occurrence of an Event of Default under Section 9.01(f), the obligation of each Purchaser to purchase Notes shall automatically terminate, the unpaid principal amount of all outstanding Notes and all interest, any Make-Whole Amount and/or Prepayment Premium and other amounts as aforesaid shall automatically and immediately become due and payable, in each case without further act of the Collateral Agent or any Purchaser.
If the Obligations are accelerated for any reason, any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, will also be due and payable as though such Obligations were voluntarily prepaid and, in each case, shall constitute part of the Obligations, in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of each Purchaser’s lost profits as a result thereof.  Any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d) payable pursuant to the preceding sentence shall be presumed to be the liquidated damages sustained by each Purchaser as the result of the early termination and the Issuer agrees that it is reasonable under the circumstances currently existing.  Any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, shall also be payable, in each case, in the event that the Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure or by any other means.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE ISSUER EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING MAKE-WHOLE AMOUNT AND/OR PREPAYMENT PREMIUM IN CONNECTION WITH ANY SUCH ACCELERATION.  The Issuer expressly agrees that (i) any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel, (ii) any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, shall in each case be payable notwithstanding the then prevailing market rates at the time payment is made, (iii) there has been a course of conduct between the Purchasers and the Issuer giving specific consideration in this transaction for such agreement to pay any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, and (iv) the Issuer shall be estopped hereafter from claiming differently than as agreed to in this paragraph.  The Issuer expressly acknowledges that its agreement to pay any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, as herein described, is a material inducement to the Purchasers to purchase the Notes hereunder.  Purchasers agree that in connection with any foreclosure or other exercise of rights under this Agreement or any other Note Document with respect to IP Rights, the rights of the licensees under Permitted Licenses will not be terminated, limited or otherwise adversely affected so long as no default exists under the Permitted License that would permit the licensor to terminate such Permitted License (commonly known as a non-disturbance). 

9.03    Application of Funds.
After the exercise of remedies provided for in Section 9.02 (or after the Notes issued by the Issuer have automatically become immediately due and payable as set forth in the proviso to Section 9.02), any amounts received by any Purchaser or the Collateral Agent on account of the Obligations shall, subject to the provisions of the Intercreditor Agreement entered into by the Collateral Agent in connection with a Permitted Revolving Credit Facility and solely with respect to the exercise of such remedies as a secured creditor in respect of any Revolving Credit Priority Collateral, be applied by the Collateral Agent in the following order:
First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Collateral Agent and amounts payable under Article III or any other provision of this Agreement or any other Note Document) payable to the Collateral Agent in its capacity as such;
Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Purchasers (including fees, charges and disbursements of counsel to the respective Purchasers) arising under the Note Documents and amounts payable under Article 

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III or any other provision of this Agreement or any other Note Document, ratably among them in proportion to the respective amounts described in this clause Second payable to them;
Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on and any applicable Make-Whole Amount and/or Prepayment Premium with respect to the Notes issued by the Issuer, ratably among the Purchasers in proportion to the respective amounts described in this clause Third held by them;
Fourth, to payment of that portion of the Obligations constituting accrued and unpaid principal of the Notes issued by the Issuer, ratably among the Purchasers in proportion to the respective amounts described in this clause Fourth held by them; and
Last, the balance, if any, after all of the Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been indefeasibly paid in full, to the Issuer or as otherwise required by Law.

ARTICLE X
OTHER PROVISIONS 

10.01    Increased Costs, Etc.
The Issuer agrees to reimburse the Purchasers for any increase in the cost to the Purchasers of, or any reduction in the amount of any sum receivable by the Purchasers in respect of, the Purchasers’ Delayed Draw Note Commitments and the purchase or maintaining of the Notes hereunder that may arise in connection with any Change in Law, except for such changes with respect to increased capital costs and taxes which are governed by Section 10.02 and Article III, respectively; provided, that amounts shall only be payable by the Issuer to any Purchaser under this Section 10.01 so long as it is such Purchaser’s general policy or practice to demand compensation of its other borrowers in similar circumstances under comparable provisions of other financing agreements and, upon the request of the Issuer, such Purchaser provides a certificate to such effect (with a copy of such certificate to the Collateral Agent).  The Collateral Agent shall notify the Issuer in writing of the occurrence of any such event, stating the reasons therefor and the additional amount required fully to compensate the Purchasers for such increased cost or reduced amount.  Such additional amounts shall be payable by the Issuer directly to the Purchasers within five days of its receipt of such notice, and such notice shall, in the absence of manifest error, be conclusive and binding on the Issuer; provided that the Issuer shall not be required to compensate the Purchasers pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Purchaser notifies the Issuer of the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.

10.02    Increased Capital Cost.
If any Change in Law affects or would affect the amount of capital required or expected to be maintained by any Purchaser or any Person controlling such Purchaser, and such Purchaser determines (in good faith but in its sole and absolute discretion) that the rate of return on its or such controlling Person’s capital as a consequence of the Delayed Draw Note Commitments or the Notes purchased by it hereunder is reduced to a level below that which such Purchaser or such controlling Person could have achieved but for the occurrence of any such circumstance, then upon notice from time to time by such Purchaser to the Issuer, the Issuer shall within five (5) days following receipt of such notice pay directly to such Purchaser additional amounts sufficient to compensate such Purchaser or such controlling Person for such reduction in rate of return; provided, that amounts shall only be payable by the Issuer to any Purchaser under this Section 10.02 so long as it is such Purchaser’s general policy or practice to demand compensation of its other borrowers in similar circumstances under comparable provisions of other financing agreements and, upon the request of the Issuer, such Purchaser provides a certificate to such effect (with a copy of 

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such certificate to the Collateral Agent); provided, further that the Issuer shall not be required to compensate the Purchasers pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Purchaser notifies the Issuer of the Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.  A statement of such Purchaser as to any such additional amount or amounts shall, in the absence of manifest error, be conclusive and binding on the Issuer.  In determining such amount, such Purchaser may use any method of averaging and attribution that it (in its sole and absolute discretion) shall deem applicable.

10.03    [Reserved]. 

10.04    Mitigation of Obligations; Replacement of Purchasers.
(a)    If any Purchaser requests compensation under Section 10.01 or 10.02, or the Issuer is required to pay any Indemnified Taxes or additional amounts to any Purchaser, or any Governmental Authority for the account of any Purchaser pursuant to Section 3.01, then at the request of the Issuer, such Purchaser shall use commercially reasonable efforts to designate a different lending office for purchasing its Notes hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Purchaser such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01, 10.01 and 10.02, as the case may be, in the future, and (ii) in each case, would not subject such Purchaser to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Purchaser.  The Issuer hereby agrees to pay all reasonable and documented out-of-pocket costs and expenses (including all reasonable and documented out-of-pocket fees, charges and disbursements of counsel) incurred by any Purchaser in connection with any such designation or assignment.
(b)    Replacement of Purchasers.  If any Purchaser requests compensation under Section 10.01 or 10.02, or if the Issuer is required to pay any Indemnified Taxes or additional amounts to any Purchaser or any Governmental Authority for the account of any Purchaser pursuant to Section 3.01, and, in each case, such Purchaser has declined or is unable to designate a different lending office in accordance with Section 10.04(a), the Issuer may replace such Purchaser in accordance with Section 12.13.

ARTICLE XI 
 
COLLATERAL AGENT

11.01    Appointment and Authority.
(a)    Each of the Purchasers hereby irrevocably appoints BioPharma Credit PLC to act on its behalf as the Collateral Agent hereunder and under the other Note Documents and authorizes the Collateral Agent to take such actions on its behalf and to exercise such powers as are delegated to the Collateral Agent by the terms hereof or thereof, and to act as the agent of such Purchaser for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Note Parties to secure any of the Obligations, together with such powers and discretion as are incidental thereto.  Except for the rights of the Issuer under Sections 11.06 and 11.09, the provisions of this Article XI are solely for the benefit of the Collateral Agent and the Purchasers, and neither the Issuer nor any other Note Party shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Note Documents (or any other similar term) with reference to the Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law.  Instead, such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
(b)    In this connection, the Collateral Agent and any co-agents, sub-agents and attorneys-in-fact appointed by the Collateral Agent pursuant to Section 11.05 for purposes of holding or enforcing any Lien 

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on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Collateral Agent), shall be entitled to the benefits of all provisions of this Article XI and Article XII, as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Note Documents) as if set forth in full herein with respect thereto.

11.02    Rights as a Purchaser.
The Person serving as the Collateral Agent hereunder shall have the same rights and powers in its capacity as a Purchaser as any other Purchaser and may exercise the same as though it were not the Collateral Agent and the term “Purchaser” or “Purchasers” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Collateral Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with any Note Party or any Subsidiary or other Affiliate thereof as if such Person were not the Collateral Agent hereunder and without any duty to account therefor to the Purchasers.

11.03    Exculpatory Provisions.
(a)    The Collateral Agent shall not have any duties or obligations except those expressly set forth herein and in the other Note Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Collateral Agent:
(i)    shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing;
(ii)    shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Note Documents to which it is a party that the Collateral Agent is required to exercise as directed in writing by the Required Purchasers (or such other number or percentage of the Purchasers as shall be expressly provided for herein or in the other Note Documents), provided, that, the Collateral Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Collateral Agent to liability or that is contrary to any Note Document or applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law; and
(iii)    shall not, except as expressly set forth herein and in the other Note Documents to which it is a party, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Note Party or any of its Affiliates that is communicated to or obtained by the Person serving as the Collateral Agent or any of its Affiliates in any capacity.
(b)    The Collateral Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Purchasers (or such other number or percentage of the Purchasers as shall be necessary, or as the Collateral Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 12.01 and Section 9.02) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and non-appealable judgment.  The Collateral Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given in writing to the Collateral Agent by the Issuer or a Purchaser.
(c)    The Collateral Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Note Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, 

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agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Note Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Collateral Agent.

11.04    Reliance by Collateral Agent.
The Collateral Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Collateral Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the purchase of any Note, that by its terms must be fulfilled to the satisfaction of a Purchaser, the Collateral Agent may presume that such condition is satisfactory to such Purchaser unless the Collateral Agent shall have received notice to the contrary from such Purchaser prior to the purchase of such Note.  The Collateral Agent may consult with legal counsel (who may be counsel for the Note Parties), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

11.05    Delegation of Duties.
The Collateral Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Note Document by or through any one or more sub-agents appointed by the Collateral Agent.  The Collateral Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article XI shall apply to any such sub-agent and to the Related Parties of the Collateral Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Collateral Agent.  The Collateral Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Collateral Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.

11.06    Resignation of Collateral Agent.
The Collateral Agent may resign as Collateral Agent at any time by giving thirty (30) days advance written notice thereof to the Purchasers and the Issuer and, thereafter, the retiring (or retired) or terminated Collateral Agent shall be discharged from its duties and obligations hereunder.  Upon any such resignation, the Required Purchasers shall have the right, subject to approval of the Issuer so long as no Default under Section 9.01(a) or Event of Default under Section 9.01(f) has occurred and is continuing, to appoint a successor Collateral Agent.  If no successor Collateral Agent shall have been so appointed by the Required Purchasers and approved (so long as no Default under Section 9.01(a) or Event of Default under Section 9.01(f) has occurred and is continuing) by the Issuer or have accepted such appointment within thirty (30) days after the Collateral Agent’s giving of notice of resignation, then the Collateral Agent may, on behalf of the Purchasers, appoint a successor Collateral Agent reasonably acceptable to the Issuer (so long as no Default under Section 9.01(a) or Event of Default under Section 9.01(f) has occurred and is continuing).  Upon the acceptance of any appointment as Collateral Agent hereunder by a successor Collateral Agent, such successor Collateral Agent shall thereupon succeed to and become vested with all rights, powers, privileges and duties of the retiring (or retired) or terminated Collateral Agent.  After any retiring Collateral Agent’s resignation hereunder as Collateral Agent, the provisions of this Agreement shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as Collateral Agent.  If no successor has accepted appointment as Collateral Agent by the date which is thirty (30) days following a retiring Collateral Agent’s notice of resignation or notice of Collateral Agent’s removal, the retiring Collateral Agent’s resignation shall nevertheless thereupon become effective and the Required Purchasers shall perform all of the duties of the Collateral 

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Agent hereunder until such time, if any, as the Required Purchasers appoint a successor agent as provided for above.  In the event that a new Collateral Agent is appointed and such Collateral Agent is not an Affiliate of the holders of a majority in interest of the Notes, then the Issuer shall agree to pay to such Collateral Agent the fees and expenses (such fees to be payable annually in advance) that such Collateral Agent may reasonably request in connection with its appointment and service.

11.07    Non-Reliance on Collateral Agent and Other Purchasers.
Each Purchaser acknowledges that it has, independently and without reliance upon the Collateral Agent or any other Purchaser or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Purchaser also acknowledges that it will, independently and without reliance upon the Collateral Agent or any other Purchaser or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Note Document or any related agreement or any document furnished hereunder or thereunder.

11.08    Collateral Agent May File Proofs of Claim.
In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Note Party, the Collateral Agent (irrespective of whether the principal of any Note shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Collateral Agent shall have made any demand on the Issuer) shall be entitled and empowered, by intervention in such proceeding or otherwise:
(a)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Notes and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Purchasers and the Collateral Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Purchasers and the Collateral Agent and their respective agents and counsel and all other amounts due the Purchasers and the Collateral Agent under Section 12.04) allowed in such judicial proceeding; and
(b)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Purchaser to make such payments to the Collateral Agent and, in the event that the Collateral Agent shall consent to the making of such payments directly to the Purchasers, to pay to the Collateral Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Collateral Agent and its agents and counsel, and any other amounts due the Collateral Agent under Section 12.04.
Nothing contained herein shall be deemed to authorize the Collateral Agent to authorize or consent to or accept or adopt on behalf of any Purchaser any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Purchaser or to authorize the Collateral Agent to vote in respect of the claim of any Purchaser in any such proceeding.

11.09    Collateral and Guaranty Matters.
The Purchasers irrevocably authorize the Collateral Agent and Collateral Agent agrees at the request of the Issuer,
(a)    to release any Lien on any Collateral granted to or held by the Collateral Agent under any Note Document (i) upon payment in full of all Obligations (other than contingent indemnification obligations for which no claim has been asserted) under the Note Documents, (ii) that is sold, transferred or otherwise 

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disposed of to a Person other than a Note Party or Subsidiary as part of or in connection with any sale or other Disposition (including any Involuntary Disposition) permitted hereunder or under any other Note Document, (iii) solely with respect to any Revolving Credit Priority Collateral, as otherwise may be expressly provided in the Intercreditor Agreement entered into by the Collateral Agent in connection with a Permitted Revolving Credit Facility or (iv) subject to Section 12.01, if approved, authorized or ratified in writing by the Required Purchasers;
(b)    to release or subordinate any Lien on any property granted to or held by the Collateral Agent under any Note Document to the holder of any Lien on such property that is permitted by Section 8.01(i); and
(c)    to release any Guarantor from its obligations under the Guaranty (i) if such Person ceases to be a Subsidiary as a result of a transaction permitted under the Note Documents or (ii) upon termination of all unused Delayed Draw Note Commitments and payment in full of all Obligations (other than contingent indemnification obligations for such no claim has been asserted) under the Note Documents.
Upon request by the Collateral Agent at any time, the Required Purchasers will confirm in writing the Collateral Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty, pursuant to this Section 11.09.
The Collateral Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any Note Party in connection therewith, nor shall the Collateral Agent be responsible or liable to the Purchasers for any failure to monitor or maintain any portion of the Collateral.
In connection with any termination, release or subordination pursuant to this Section 11.09, Collateral Agent shall promptly, upon the request of any Note Party, (x) execute and deliver to such Note Party, at such Note Party’s expense, all documents that such Note Party shall reasonably request to evidence such termination, release or subordination, and (y) deliver to the Note Parties, at the expense of the Note Parties, any portion of such Collateral so released in possession of the Collateral Agent.

ARTICLE XII 
 
MISCELLANEOUS

12.01    Amendments, Etc.
No amendment or waiver of any provision of this Agreement or any other Note Document, and no consent to any departure by the Issuer or any other Note Party therefrom, shall be effective unless in writing signed by the Required Purchasers and the Issuer or the applicable Note Party, as the case may be, and acknowledged by the Collateral Agent and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, further, that:
(a)    no such amendment, waiver or consent shall:
(i)    extend or increase the Delayed Draw Note Commitment of a Purchaser (or reinstate any Delayed Draw Note Commitment terminated pursuant to Section 9.02) without the written consent of such Purchaser whose Delayed Draw Note Commitment is being extended or increased (it being understood and agreed that a waiver of any condition precedent set forth in Section 5.02 or 5.03 or of any Default or a mandatory reduction in Delayed Draw Note Commitments is not considered an extension or increase in Delayed Draw Note Commitments of any Purchaser);

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(ii)    postpone any date fixed by this Agreement or any other Note Document for any payment of principal (excluding mandatory prepayments), interest, any applicable Make-Whole Amount and/or Prepayment Premium, fees or other amounts due to the Purchasers (or any of them) or any scheduled or mandatory reduction of the Delayed Draw Note Commitments hereunder or under any other Note Document without the written consent of each Purchaser entitled to receive such payment or whose Delayed Draw Note Commitments are to be reduced;
(iii)    reduce the principal of, the rate of interest specified herein on or the amount of Make-Whole Amount or Prepayment Premium specified herein with respect to any Note, or any fees or other amounts payable hereunder or under any other Note Document without the written consent of each Purchaser entitled to receive such payment of principal, interest, fees or other amounts; provided, however, that, only the consent of the Required Purchasers shall be necessary to amend the definition of “Default Rate” or to waive any obligation of the Issuer to pay interest at the Default Rate;
(iv)    change any provision of this Section 12.01(a) or the definition of “Required Purchasers” without the written consent of each Purchaser directly affected thereby;
(v)    except in connection with a Disposition permitted under Section 8.05, release all or substantially all of the Collateral without the written consent of each Purchaser directly affected thereby, except to the extent the release of any Collateral is permitted pursuant to Section 11.09 (in which case such release may be made by the Collateral Agent);
(vi)    release the Issuer or, except in connection with a merger, amalgamation or consolidation permitted under Section 8.04 or a Disposition permitted under Section 8.05, all or substantially all of the Guarantors without the written consent of each Purchaser directly affected thereby, except to the extent the release of any Guarantor is permitted pursuant to Section 11.10 (in which case such release may be made by the Collateral Agent); 
(b)    unless also signed by the Collateral Agent, no amendment, waiver or consent shall affect the rights or duties of the Collateral Agent under this Agreement or any other Note Document;
(c)    any amendment or waiver pursuant to this Section 12.01 shall apply equally to all holders of the Notes and shall be binding upon them, upon each future holder of the Notes and upon the Note Parties, and shall amend the Notes, in each case whether or not a notation thereof shall have been placed on any such Note.  Any such waiver shall be effective only in the specific instance and for the purpose for which given;
(d)    notwithstanding any other provision contained in this Section 12.01 or elsewhere in this Agreement to the contrary, Notes which at any time are held by the Issuer or by any of its Affiliates shall not be deemed outstanding for purposes of any vote, consent, approval, waiver or other action required or permitted to be taken by the holders of Notes, or by any of them, under the provisions of this Section 12.01 or Section 9.02 of this Agreement, and neither the Issuer nor any of its Affiliates shall be entitled to exercise any right as a Purchaser or holder of Notes with respect to any such vote, consent, approval or waiver or to take or participate in taking any such action at any time; and
(e)    Neither the Issuer nor any of its Affiliates will, directly or indirectly, pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, to any Purchaser as consideration for or as an inducement to the entering into by any Purchaser of any amendment, waiver or consent with respect to any of the terms and provisions of this Agreement or the other Note Documents, unless such remuneration is concurrently offered, on the same terms, ratably to all of holders of Notes which agree to such amendment, waiver or consent.

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provided, however, that, notwithstanding anything to the contrary herein, (i) no Defaulting Purchaser shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Purchasers or each affected Purchaser may be effected with the consent of the applicable Purchasers other than Defaulting Purchasers), except that (x) the undrawn Delayed Draw Note Commitment of any Defaulting Purchaser may not be increased or extended without the consent of such Purchaser and (y) any waiver, amendment or modification requiring the consent of all Purchasers or each affected Purchaser that by its terms affects any Defaulting Purchaser more adversely than other affected Purchasers shall require the consent of such Defaulting Purchaser, (ii) each Purchaser is entitled to vote as such Purchaser sees fit on any bankruptcy reorganization plan that affects the Notes, and each Purchaser acknowledges that the provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent provisions set forth herein and (iii) the Required Purchasers shall determine whether or not to allow the Issuer to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Purchasers.
Notwithstanding anything to the contrary herein, the Collateral Agent and the Issuer may amend or modify this Agreement and any other Note Document to (1) cure any factual or typographical error, omission, defect or inconsistency therein, or (2) grant a new Lien for the benefit of the Purchasers, extend an additional Lien over additional property for the benefit of the Purchasers or join additional Persons as Note Parties.

12.02    Notices and Other Communications; E-mail and Facsimile Copies.
(a)    Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or electronic mail as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, in each case to the address, facsimile number, electronic mail address or telephone number specified for the Issuer, the other Note Parties (as of the Closing Date), and for the Purchasers (as of the Closing Date) and the Collateral Agent, as set forth on Schedule 12.02.
Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).
(b)    Electronic Communications.  Notices and other communications to the Collateral Agent or Purchasers hereunder may be furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Collateral Agent, provided, that, the foregoing shall not apply to notices to any Purchaser pursuant to Article II if such Purchaser has notified the Collateral Agent that it is incapable of receiving notices under such Article by electronic communication.  Each of the Issuer, other Note Parties, the Collateral Agent and the Purchasers may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided, that, approval of such procedures may be limited to particular notices or communications.
Unless the applicable recipient otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement; provided that any notice or communication not so acknowledged shall be deemed received one (1) Business Day following delivery), and (ii) notices or communications posted to an Internet 

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or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided, that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(c)    Change of Address, Etc.  Each of the Issuer, other Note Parties, the Purchasers and the Collateral Agent may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto.  
(d)    Reliance by Collateral Agent and Purchasers.  The Collateral Agent and the Purchasers shall be entitled to rely and act upon any notices purportedly given by or on behalf of any Note Party even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Note Parties shall indemnify the Collateral Agent, each Purchaser and the Related Parties of each of them in accordance with Section 12.04 from any and all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of a Note Party; provided that such indemnity shall not, as to any Person be available to the extent that such losses, costs, expenses or liabilities are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Person.  All telephonic notices to and other telephonic communications with the Collateral Agent may be recorded by the Collateral Agent (subject to contemporaneous notice from the Collateral Agent to such Person that the communication is being or will be recorded), and each of the parties hereto hereby consents to such recording.

12.03    No Waiver; Cumulative Remedies; Enforcement.
No failure by any Purchaser or the Collateral Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Note Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Note Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

12.04    Expenses; Indemnity; and Damage Waiver.
(a)    Costs and Expenses.  The Note Parties shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Collateral Agent, each Purchaser and their respective Affiliates (limited, in the case of legal counsel, to the reasonable and documented out-of-pocket fees, charges and disbursements of one primary counsel for the Collateral Agent and the Purchasers (taken as a whole) and of a single local counsel to the Collateral Agent and the Purchasers (taken as a whole) in each relevant jurisdiction), in connection with (A) the preparation, negotiation, execution and delivery of this Agreement and the other Note Documents and (B) any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) or the administration of this Agreement and the other Note Documents and (ii) all reasonable and documented out-of-pocket expenses incurred by the Collateral Agent or any Purchaser (but limited in the case of legal counsel, to the reasonable and documented out-of-pocket fees, charges and disbursements of one primary counsel for the Collateral Agent and the Purchasers (taken as a whole), and, of a single local counsel to the Collateral Agent and the Purchasers (taken as a whole) in each relevant jurisdiction (and, in the case of an actual or perceived conflict of interest where the party affected by such conflict informs the Issuer of such conflict and thereafter retains its own counsel, of one additional primary firm of counsel for all such affected parties (taken as a 

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whole) and one additional firm of counsel for all such affected parties (taken as a whole) in each relevant jurisdiction), in connection with the enforcement or protection of any of its rights and/or the exercise of any of its remedies under or otherwise arising out of or in connection with (A) this Agreement and the other Note Documents (including with respect to any of the Obligations or any Collateral), including its rights under this Section 12.04, or (B) the Notes made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Notes.  It is understood and agreed that the Note Parties shall not be required to pay costs, fees and expenses incurred by the Collateral Agent, each Purchaser and their respective Affiliates prior to the Closing Date in connection with the preparation, negotiation, execution and delivery of this Agreement, the other Note Documents dated as of the Closing Date, and the issuance and purchase of the Initial Notes in excess of $250,000. 
(b)    Indemnification by the Note Parties.  
(i)    The Note Parties shall indemnify the Collateral Agent (and any sub-agent thereof) and each Purchaser, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (but limited, in the case of legal counsel, to the reasonable and documented out-of-pocket fees, charges and disbursements of one primary counsel for the Indemnitees (taken as a whole), and, of a single local counsel to the Indemnitees (taken as a whole) in each relevant jurisdiction (and, in the case of an actual or perceived conflict of interest where the party affected by such conflict informs the Issuer of such conflict and thereafter retains its own counsel, of one additional primary firm of counsel for all such affected parties (taken as a whole) and one additional firm of counsel for all such affected parties (taken as a whole) in each relevant jurisdiction), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Issuer or any other Note Party) arising out of, in connection with, or as a result of (A) the execution or delivery of this Agreement, any other Note Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Collateral Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Note Documents, (B) any Note or the use or proposed use of the proceeds therefrom, (C) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by a Note Party or any of its Subsidiaries, or any Environmental Liability related in any way to a Note Party or any of its Subsidiaries, or (D) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Issuer or any other Note Party or by any of their respective Affiliates, and regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee; provided, that, such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (1) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from (x) the bad faith, gross negligence, or willful misconduct of such Indemnitee, or (y) a claim brought by any Note Party against an Indemnitee for material breach of such Indemnitee’s obligations hereunder or under any other Note Document, or (2) arise solely from a dispute among the Indemnitees (except (x) when and to the extent that one of the Indemnitees party to such dispute was acting in its capacity or in fulfilling its role as Collateral Agent, or any similar role under this Agreement or any other Note Document or (y) any claims arising out of any act or omission of any of the Note Parties or any of their Affiliates) that does not involve any act or omission of the Note Parties or any of their respective Affiliates.  This Section 12.04(b) shall not apply with respect to (aa) Taxes other than any Taxes that represent liabilities, obligations, losses, damages, penalties, claims, costs, expenses and disbursements arising from any third party claim or any other non-Tax claim or (bb) yield protection matters covered by Sections 10.01 and 10.02, which shall be governed exclusively by Sections 10.01 and 10.02.

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(ii)    Notwithstanding the foregoing in this Section 12.04(b), the Issuer shall not be liable for any settlement of any proceeding effected without the Issuer’s consent (which consent shall not be unreasonably withheld, delayed or conditioned), but if settled with the Issuer’s written consent, or if there is a judgment against an Indemnitee in any such proceeding, the Issuer shall indemnify and hold harmless each Indemnitee to the extent and in the manner set forth above.  The Issuer shall not, without the prior written consent of an Indemnitee (which consent shall not be unreasonably withheld, conditioned or delayed), effect any settlement of any pending or threatened proceeding against such Indemnitee in respect of which indemnity could have been sought hereunder by such Indemnitee unless (A) such settlement includes an unconditional release of such Indemnitee from all liability or claims that are the subject matter of, or arise out of, such proceeding and (B) such settlement does not include any statement as to, or any admission of fault, culpability, wrongdoing or a failure to act by or on behalf of such Indemnitee.
(c)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, none of the Note Parties, the Collateral Agent, any Purchaser, any other party thereto or any Indemnitee shall assert, and each such Person hereby waives, and acknowledges that no other Person shall have, any claim against any other such Person, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Note Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Note or the use of the proceeds thereof; provided, that, the foregoing shall in no event limit the indemnification obligations of the Note Parties under clause (b) above to the extent such special, indirect, consequential or punitive damages are included in any third party claim in connection with which such Indemnitee is otherwise entitled to indemnification hereunder.  No Indemnitee referred to in clause (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Note Documents or the transactions contemplated hereby or thereby, other than any liability arising from the bad faith, gross negligence, or willful misconduct of such Indemnitee as determined by a court of competent jurisdiction by final and nonappealable judgment.
(d)    Payments.  All amounts due under this Section 12.04 shall be payable not later than ten (10) Business Days after demand therefor.
(e)    Survival.  The agreements in this Section 12.04 and the indemnity provisions of Section 12.02(d) shall survive the resignation of the Collateral Agent, the transfer of any Note, the replacement of any Purchaser, the termination of the Delayed Draw Note Commitments and the repayment, satisfaction or discharge of all the other Obligations.

12.05    Marshalling; Payments Set Aside.
None of the Collateral Agent or the Purchasers shall be under any obligation to marshal any assets in favor of any Note Party or any other Person or against or in payment of any or all of the Obligations.  To the extent that any payment by or on behalf of any Note Party is made to the Collateral Agent or any Purchaser, or the Collateral Agent or any Purchaser exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Collateral Agent or such Purchaser in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred.

12.06    Successors and Assigns; Transfers.

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(a)    Successors and Assigns Generally.  The provisions of this Agreement and the other Note Documents shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns permitted hereby; provided, that neither the Issuer nor any other Note Party may assign or otherwise transfer any or all of its rights or obligations hereunder or thereunder without the prior written consent of the Purchasers and, except as otherwise set forth herein, so long as no Default pursuant to Section 9.01(a) or Event of Default pursuant to Section 9.01(f) has occurred and is continuing, no Purchaser may assign or otherwise transfer any of its rights or obligations hereunder or thereunder except with the prior written consent of the Issuer (such consent not to be unreasonably withheld, delayed or conditioned).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, and, to the extent expressly contemplated hereby, the Related Parties of each of the Collateral Agent and the Purchasers) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Transfers by Purchasers.  Each Purchaser shall be entitled to assign or otherwise transfer, with the prior written consent of the Issuer, such consent not to be unreasonably withheld, delayed or conditioned (it being understood that the Issuer’s consent may be delayed pending resolution of the amendments to the Note Documents contemplated by Section 12.06(i)), provided that such consent shall not to be required for any such assignment or transfer (x) to or in favor of any Affiliate of such Purchaser or any Approved Fund (or a limited partner or other investor in an Approved Fund, so long as after giving effect to such assignment or transfer, Funds that are administered or managed by Pharmakon Advisors, LP or an Affiliate of Pharmakon Advisors, LP collectively constitute Required Purchasers) or (y) to or in favor of any other Person that is not a Competitor upon the occurrence and during the continuance of any Default pursuant to Section 9.01(a) or Event of Default pursuant to Section 9.01(f): (i) any or all Notes (or any portion thereof), in each instance in an aggregate principal amount greater than or equal to $1,000,000 thereof (provided, that in the case of such assignment or transfer of Notes to or in favor of any Affiliate of such Purchaser or any Approved Fund (or a limited partner or other investor in an Approved Fund, so long as after giving effect to such assignment or transfer, Funds that are administered or managed by Pharmakon Advisors, LP or an Affiliate of Pharmakon Advisors, LP collectively constitute Required Purchasers), no such minimum shall apply); and (ii) any and all Delayed Draw Note Commitments (or any portion thereof) (with the consent of the Required Purchasers, which such consent shall not be required for such assignment or transfer to or in favor of any Affiliate of such Purchaser or any Approved Fund (or a limited partner or other investor in an Approved Fund, so long as after giving effect to such assignment or transfer, (x) Funds that are administered or managed by Pharmakon Advisors, LP or an Affiliate of Pharmakon Advisors, LP collectively constitute Required Purchasers and (y) the transferring Purchaser remains obligated to fund the amount of its transferred Delayed Draw Note Commitments if the transferee fails to fund such amount when required to do so pursuant to the terms hereof); provided, that in no event shall any equityholder of Parent (other than a Purchaser, its Affiliates or any Approved Fund (or a limited partner or other investor in an Approved Fund, so long as after giving effect to such assignment or other transfer, Funds that are administered or managed by Pharmakon Advisors, LP or an Affiliate of Pharmakon Advisors, LP collectively constitute Required Purchasers)) or any Subsidiary of such equityholder or any of their respective Affiliates purchase or be the recipient of an assignment or other transfer of any Note (or any portion thereof) without the prior written consent of the Required Purchasers; provided, further, that in no event shall a Defaulting Purchaser purchase or be the recipient of an assignment or other transfer of any Note or Delayed Draw Note Commitment (or any portion thereof) while such Purchaser is a Defaulting Purchaser; provided, finally, that, so long as no Event of Default has occurred and is continuing, in no event shall any Competitor, any of its Subsidiaries of any of their respective Affiliates purchase or be the recipient of any such assignment or transfer of any Note or Delayed Draw Note Commitment (or any portion thereof) at any time.  Each assignee or transferee pursuant to this Section 12.06(b) shall provide the Issuer and the Collateral Agent with (i) prompt written notice of any assignment or other transfer that is effected and (ii) concurrently with any such assignment or other transfer, an officer’s certificate from an authorized Person of such assignee or transferee certifying to the matters contemplated by Article VI-A.  All assignments or other transfers pursuant to this Section 12.06(b) shall be 

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made in accordance with all applicable requirements of the Securities Act of 1933 and any applicable securities laws of any U.S. state.
(c)    Transfers by Defaulting Purchasers.  In connection with any assignment or other transfer of any rights and obligations of any Defaulting Purchaser under this Agreement or any other Note Document, no such assignment or other transfer shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to such assignment or transfer shall make such additional payments to the Collateral Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee or transferee of participations or subparticipations, or other compensating actions, including funding, with the prior written consent of the Issuer and the Collateral Agent, the applicable pro rata share of Notes previously issued but not purchased by the Defaulting Purchaser, to each of which the applicable assignee or transferee and assignor or transferor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Purchaser to the Collateral Agent or any Purchaser hereunder (and interest accrued thereon) and (y) purchase (and fund as appropriate) its full pro rata share of all Notes.  Notwithstanding the foregoing, in the event that any assignment or other transfer of rights and obligations of any Defaulting Purchaser hereunder or thereunder shall become effective under applicable Law or regulation without compliance with the provisions of this Section 12.06(c), then the assignee or transferee of such interest shall be deemed to be a Defaulting Purchaser for all purposes of this Agreement until such compliance occurs.
(d)    Transfer in Contravention of this Section Void.  Any attempt to assign or otherwise transfer any Note or Delayed Draw Note Commitment (or portion thereof) not in compliance with this Agreement shall be null and void and neither the Issuer nor any transfer agent shall give any effect in the Issuer’s Note register to such attempted assignment or transfer.
(e)    No Future Liability.  Following the sale of any Note or portion thereof by any Purchasers to any subsequent Purchasers pursuant to the terms hereof, the Purchasers shall not be liable or responsible to the Issuer for any losses, damages or liabilities suffered or incurred by the Issuer, including any losses, damages or liabilities under the Securities Act, arising from or relating to any resale or transfer of any security previously sold by the Purchaser in compliance with this Section 12.06.
(f)    Securities Register.  The Issuer will keep at its principal executive office a register, in which, subject to such reasonable regulations as it may prescribe, but at its expense, and the Issuer will provide for the registration and transfer of Notes.  Whenever any Note shall be surrendered either at the principal executive office of the Issuer (or at the place of payment named in the Note), for transfer or exchange, accompanied, if so required by the Issuer, by a written instrument of transfer in form reasonably satisfactory to the Issuer duly executed by the holder thereof or by such holder’s attorney duly authorized in writing, the Issuer will execute and deliver in exchange therefor a new Note or Notes, in such denominations as may be requested by such holder, of like tenor and in the same aggregate unpaid principal amount as the aggregate unpaid principal amount of the Note or Notes so surrendered.  Any Note issued in exchange for any other Note or upon transfer thereof shall carry the rights to unpaid interest and interest to accrue which were carried by the Note so exchanged or transferred, and neither gain nor loss of interest shall result from any such transfer or exchange.  Any transfer tax or governmental charge relating to such transaction shall be paid by the holder requesting the exchange.  The entries in the register shall be conclusive and binding for all purposes, absent manifest error and the Issuer, the Purchasers and any of their respective agents may treat the Person in whose name any Note is registered as the sole and exclusive record and beneficial holder and owner of such Note for all purposes whatsoever.  This Section 12.06(f) shall be construed so that such obligations are at all times maintained in “registered form” within the meaning of Section 163(f), 871(h)(2) and 881(c)(2) of the Internal Revenue Code and any related regulations (and any other relevant or successor provisions of the Internal Revenue Code or such regulations).

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(g)    Lost, Stolen Damaged or Destroyed Notes. At the request of any holder of any Note, the Issuer will issue and deliver at its expense, in replacement of any Note lost, stolen, damaged or destroyed, upon surrender thereof, if mutilated, a new Note in the same aggregate unpaid principal amount, and otherwise of the same tenor, as the Note so lost, stolen, damaged or destroyed, duly executed by the Issuer.  The Issuer may condition the replacement of a Note reported by the holder thereof as lost, stolen, damaged or destroyed, upon the receipt from such holder of an indemnity and/or security reasonably satisfactory to the Issuer; provided, that if such holder shall be a Purchaser or any affiliate or nominee thereof, such Purchaser’s unsecured agreement of indemnity shall be sufficient for purposes of this Section 12.06(g).
(h)    Transfer of Delayed Draw Note Commitments.  Subject to compliance with the other provisions of this Section 12.06, any transfer of Notes or Delayed Draw Note Commitments shall be effective upon the execution and delivery, by the transferor and the transferee (to the extent required by Section 12.06(b), with the consent of the Issuer and the Required Purchasers), pursuant to an Assignment and Assumption.
(i)    Transfer to Non-BioPharma Affiliates.  Prior to any assignment or other transfer of any Notes or Delayed Draw Note Commitments (or any portion thereof) by a Purchaser to a Person that is not an Affiliate of BioPharma Credit PLC or BioPharma Credit Investments V (Master) LP or an Approved Fund of BioPharma Credit PLC, BioPharma Credit Investments V (Master) LP or Pharmakon Advisors, LP, the Purchasers, the Collateral Agent (or its prospective successor) and the Issuer shall negotiate in good faith to amend the Note Documents to provide for certain customary provisions contained in agreements evidencing secured debt held by multiple lenders or investors that are not Affiliates, including to permit the Issuer to deliver notices and other information hereunder solely to the Collateral Agent, acting on behalf of the Purchasers, and, if the Collateral Agent is also a Purchaser, permit the Collateral Agent to make certain additional determinations and take certain additional actions, including those with respect to Collateral, on behalf of the Purchasers, without their consent, not currently contemplated by the Note Documents to be made or taken by the Collateral Agent.
(j)    Pledges.  Notwithstanding any of the foregoing provisions of this Section 12.06 to the contrary, each Purchaser may at any time pledge this Agreement or any other Note Document or any of its rights, benefits or obligations hereunder or thereunder, including with respect to any Note (or any portion thereof) to any Person that is not a Competitor, a Subsidiary of a Competitor or any Affiliate thereof without the Issuer’s prior written consent; provided, however, that no such pledge shall release such Purchaser from any of its obligations hereunder or substitute any such pledgee for such Purchaser as a party hereto.
(k)    Participations.  Any Purchaser may at any time, without the consent of, or notice to, the Issuer or the Collateral Agent, sell participations to any Person (other than a natural Person, a Defaulting Purchaser or the Issuer or any of the Issuer’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Purchaser’s rights and/or obligations under this Agreement (including all or a portion of its Delayed Draw Note Commitment and/or the Notes held by it); provided, that, (i) such Purchaser’s obligations under this Agreement shall remain unchanged, (ii) such Purchaser shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Issuer, the Collateral Agent and the other Purchasers shall continue to deal solely and directly with such Purchaser in connection with such Purchaser’s rights and obligations under this Agreement and the other Note Documents.
Any agreement or instrument pursuant to which a Purchaser sells such a participation shall provide that such Purchaser shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided, that, such agreement or instrument may provide that such Purchaser will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clauses (i) through (vi) of Section 12.01(a) that affects such Participant.  The Issuer agrees that each Participant shall be entitled to the benefits of Section 3.01 (subject to the requirements and limitations therein (it being understood that the documentation required under Section 3.01(c) shall be 

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delivered to the participating Purchaser)) and Sections 10.01 and 10.02 to the same extent as if it were a Purchaser and had acquired its interest by assignment pursuant to paragraph (b) of this Section 12.06; provided, that, such Participant (A) agrees to be subject to the provisions of Sections 10.04 and 12.13 as if it were an assignee under paragraph (b) of this Section and (B) shall not be entitled to receive any greater payment under Section 3.01, 10.01 or 10.02, with respect to any participation, than the Purchaser from whom it acquired the applicable participation would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Purchaser that sells a participation agrees, at the Issuer’s request and expense, to use reasonable efforts to cooperate with the Issuer to effectuate the provisions of Section 10.04 with respect to any Participant.  To the fullest extent permitted by law, each Participant also shall be entitled to the benefits of Section 12.08 as though it were a Purchaser; provided, that, such Participant agrees to be subject to Section 2.14 as though it were a Purchaser.

12.07    Treatment of Certain Information; Confidentiality.
Each of the Collateral Agent and the Purchasers agrees to maintain the confidentiality of, and not disclose, the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information prior to or upon such disclosure and instructed to keep such Information confidential and the Collateral Agent and Purchasers, as applicable, shall be responsible for any failure by such Related Parties to maintain the confidentiality thereof), (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners), in which case the disclosing party agrees, to the extent permitted by law, rule or regulation and reasonably practicable, to promptly inform the Issuer, except with respect to any audit or examination conducted by bank accountants or any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; provided, that, (x) prior to any disclosure under this clause (c), the Collateral Agent or such Purchaser agrees to endeavor to provide the Issuer with prior notice thereof to the extent that the Collateral Agent or such Purchaser is permitted to provide such prior notice to the Issuer pursuant to the terms of applicable laws and regulations or such subpoena or legal process, as the case may be, and (y) any disclosure under this clause (c) pursuant to subpoena or similar legal process shall be limited solely to that portion of the Information as may be compelled by such subpoena or similar legal process, (d) to any other party hereto, (e) as may be reasonably necessary in connection with the exercise of any remedies hereunder or under any other Note Document or any action or proceeding relating to this Agreement or any other Note Document or the enforcement of rights hereunder or thereunder, (f) subject to a written agreement containing provisions substantially the same as those of this Section, to (i) any assignee or transferee of, or any prospective assignee or transferee of, any of its rights and obligations under this Agreement or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to a Note Party and its obligations, this Agreement or payments hereunder, (g) on a confidential basis to (i) any rating agency in connection with rating the Issuer or its Subsidiaries or the credit facilities provided hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers or other market identifiers with respect to the credit facilities provided hereunder, (h) with the consent of the Issuer, (i) to the members of its investment committee (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential) or (j) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Collateral Agent, any Purchaser or any of their respective Affiliates on a nonconfidential basis from a source other than the Note Parties who is not, to the knowledge of the Collateral Agent or such Purchaser, in breach of any obligation of confidentiality to any Note Party or Subsidiary with respect to such Information.
For purposes of this Section 12.07, “Information” means all information received from a Note Party or any Subsidiary relating to the Note Parties or any Subsidiary or any of their respective businesses, other than any such information that is available to the Collateral Agent or any Purchaser on a nonconfidential basis prior to disclosure 

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by such Note Party or any Subsidiary.  Any Person required to maintain the confidentiality of, and not disclose, Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

12.08    Set-off.
If an Event of Default shall have occurred and be continuing, each Purchaser and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Purchaser or any such Affiliate to or for the credit or the account of the Issuer or any other Note Party against any and all of the obligations of the Issuer or such Note Party now or hereafter existing under this Agreement or any other Note Document to such Purchaser or its Affiliates, irrespective of whether or not such Purchaser or Affiliate shall have made any demand under this Agreement or any other Note Document and although such obligations of the Issuer or such Note Party may be contingent or unmatured or are owed to a branch office or Affiliate of such Purchaser different from the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided, that, in the event that any Defaulting Purchaser shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Collateral Agent for further application in accordance with the provisions of Section 2.15 and, pending such payment, shall be segregated by such Defaulting Purchaser from its other funds and deemed held in trust for the benefit of the Collateral Agent and the Purchasers and (y) the Defaulting Purchaser shall provide promptly to the Collateral Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Purchaser as to which it exercised such right of setoff.  The rights of each Purchaser and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Purchaser or their respective Affiliates may have.  Each Purchaser agrees to notify the Issuer promptly after any such setoff and application, provided, that, the failure to give such notice shall not affect the validity of such setoff and application.

12.09    Interest Rate Limitation.
Notwithstanding anything to the contrary contained in any Note Document, the interest paid or agreed to be paid under the Note Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If any Purchaser shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Notes or, if it exceeds such unpaid principal, refunded to the Issuer.  In determining whether the interest contracted for, charged, or received by the Collateral Agent or a Purchaser exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

12.10    Counterparts; Integration; Effectiveness.
This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Note Documents, the Purchasers or Collateral Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.   Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.

12.11    Survival of Representations and Warranties.

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All representations and warranties made hereunder and in any other Note Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof and shall continue in full force and effect as long as any Note or other Obligation (other than contingent indemnification obligations for which no claim has been asserted) hereunder shall remain unpaid or unsatisfied.  Such representations and warranties have been or will be relied upon by the Collateral Agent and each Purchaser, regardless of any investigation made by the Collateral Agent or any Purchaser or on their behalf and notwithstanding that the Collateral Agent or any Purchaser may have had notice or knowledge of any Default at the time of any purchase of the Notes, and shall continue in full force and effect as long as any Note or any other Obligation (other than contingent indemnification obligations for which no claim has been asserted) hereunder shall remain unpaid or unsatisfied.

12.12    Severability.
If any provision of this Agreement or the other Note Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Note Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Without limiting the foregoing provisions of this Section 12.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Purchasers shall be limited by Debtor Relief Laws, as determined in good faith by the Collateral Agent, then such provisions shall be deemed to be in effect only to the extent not so limited.

12.13    Replacement of Purchasers.
If the Issuer is entitled to replace a Purchaser pursuant to the provisions of Section 10.04, or if any Purchaser is a Defaulting Purchaser or a Non-Consenting Purchaser, then the Issuer may, at its sole expense and effort, upon written notice to such Purchaser and the Collateral Agent, require such Purchaser to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 12.06), all of its interests, rights (other than its existing rights to payments pursuant to Section 3.01, 10.01 and 10.02) and obligations under this Agreement and the related Note Documents to an assignee that shall assume such obligations (which assignee may be another Purchaser, if a Purchaser accepts such assignment), provided, that:
(a)    such Purchaser shall have received payment of an amount equal to one hundred percent (100%) of (x) the outstanding principal of its Notes, accrued interest thereon and all other amounts payable to it hereunder and under the other Note Documents (other than any applicable Make-Whole Amount and/or Prepayment Premium) from the assignee (to the extent of such outstanding principal and accrued interest) or the Issuer (in the case of all other amounts) and (y) other than a Purchaser that is a Defaulting Purchaser pursuant to clause (a), (b) or (c) of the definition thereof, any Make-Whole Amount and/or Prepayment Premium required by Section 2.07(d), as and to the extent applicable, in each case, from the Issuer, as if such assignment was a prepayment of one hundred percent (100%) of the outstanding principal amount of such assignor’s Notes on the effective date of such assignment; and
(b)    such assignment does not conflict with applicable Laws or regulations;
(c)    in the case of any such assignment resulting from a claim for compensation under Section 10.01 or 10.02 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and
(d)    in the case of any such assignment resulting from a Non-Consenting Purchaser’s failure to consent to a proposed change, waiver, discharge or termination with respect to any Note Document, the 

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applicable replacement bank, financial institution or fund consents to the proposed change, waiver, discharge or termination.
Notwithstanding anything to the contrary set forth herein, the failure by any Purchaser replaced pursuant to this Section 12.13 to execute and deliver an Assignment and Assumption shall not impair the validity of the removal of such Purchaser and the mandatory assignment of such Purchaser’s Delayed Draw Commitments and outstanding Notes pursuant to this Section 12.13 shall nevertheless be effective without the execution by such Purchaser of an Assignment and Assumption.
A Purchaser shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Purchaser or otherwise, the circumstances entitling the Issuer to require such assignment and delegation cease to apply. 

12.14    Governing Law; Jurisdiction; Etc.
(a)    GOVERNING LAW.  THIS AGREEMENT AND THE OTHER NOTE DOCUMENTS (EXCEPT, AS TO ANY OTHER NOTE DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT (EXCEPT, AS TO ANY OTHER NOTE DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(b)    SUBMISSION TO JURISDICTION.  THE ISSUER AND EACH OTHER NOTE PARTY IRREVOCABLY AND UNCONDITIONALLY AGREE THAT THEY WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE COLLATERAL AGENT, ANY PURCHASER OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY OTHER FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK AND ANY UNITED STATES DISTRICT COURT IN THE STATE OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF LOCATED IN NEW YORK COUNTY, NEW YORK, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER NOTE DOCUMENT SHALL AFFECT ANY RIGHT THAT THE COLLATERAL AGENT OR ANY PURCHASER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT AGAINST THE ISSUER OR ANY OTHER NOTE PARTY OR THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY JURISDICTION.
(c)    WAIVER OF VENUE.  EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT IN ANY COURT REFERRED TO IN 

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PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(d)    SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.  THE NORWEGIAN GUARANTOR, THE UK GUARANTOR AND EACH OTHER NOTE PARTY NOT ORGANIZED IN THE UNITED STATES HEREBY IRREVOCABLY APPOINTS THE ISSUER AS ITS AUTHORIZED AGENT UPON WHICH PROCESS MAY BE SERVED IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT, AND AGREES THAT SERVICE OF PROCESS UPON SUCH AGENT, AND WRITTEN NOTICE OF SAID SERVICE TO THE ISSUER, BY THE PERSON SERVING THE SAME TO THE ADDRESS PROVIDED IN SCHEDULE 12.02, SHALL CONSTITUTE EFFECTIVE SERVICE OF PROCESS ON THE NORWEGIAN GUARANTOR, THE UK GUARANTOR OR SUCH OTHER APPLICABLE NOTE PARTY IN ANY SUCH ACTION OR PROCEEDING. 

12.15    Waiver of Right to Trial by Jury.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER NOTE DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

12.16    Judgment Currency.
(a)    If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures in the relevant jurisdiction the first currency could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given.
(b)    The obligations of any Note Party in respect of any sum due to any party hereto or any holder of the Obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction 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 the Applicable Creditor in the Agreement Currency, each Note Party agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss.  The obligations of the Note Parties contained in this Section 12.16 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.

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12.17    Electronic Execution of Assignments and Certain Other Documents.
The words “execute,” “execution,” “signed,” “signature” and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures, the electronic matching of terms and contract formations on electronic platforms approved by the Purchasers, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

12.18    USA PATRIOT Act.
Each Purchaser that is subject to the Act (as hereinafter defined) and the Collateral Agent (for itself and not on behalf of any Purchaser) hereby notifies the Issuer and the other Note Parties that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies each Note Party, which information includes the name and address of each Note Party and other information that will allow such Purchaser or the Collateral Agent, as applicable, to identify each Note Party in accordance with the Act.  The Issuer and other Note Parties agree to, promptly following a request by the Collateral Agent or any Purchaser, provide all such other documentation and information that the Collateral Agent or such Purchaser requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

12.19    No Advisory or Fiduciary Relationship.
In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Note Document), the Issuer acknowledges and agrees, and acknowledge its Affiliates’ understanding, that: (a)(i) the arranging and other services regarding this Agreement provided by the Collateral Agent and the Purchasers are arm’s-length commercial transactions between the Issuer and its Affiliates, on the one hand, and the Collateral Agent and the Purchasers on the other hand, (ii) the Issuer has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (iii) the Issuer is capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby and by the other Note Documents; (b)(i) the Collateral Agent and each Purchaser is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not and will not be acting as an advisor, agent or fiduciary, for the Issuer or any of its Affiliates or any other Person and (ii) neither the Collateral Agent nor any Purchaser has any obligation to the Issuer or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Note Documents; and (c) the Collateral Agent and the Purchasers and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Issuer and its Affiliates, and neither the Collateral Agent nor any Purchaser has any obligation to disclose any of such interests to the Issuer or its Affiliates.  To the fullest extent permitted by law, the Issuer hereby waives and releases, any claims that they may have against the Collateral Agent or any Purchaser with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

12.20    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.
Notwithstanding anything to the contrary in any Note Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Purchaser that is an EEA Financial Institution arising under any Note 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 Purchaser that is 

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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 Note 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.

12.21    Intercreditor Agreement.
The Collateral Agent is hereby authorized to enter into an Intercreditor Agreement in connection with a Permitted Revolving Credit Facility and otherwise consistent with the terms of this Agreement and the other Note Documents, and each Purchaser agrees to be bound by the terms thereof and directs the Collateral Agent to enter into such Intercreditor Agreement on behalf of such Purchaser in connection with such Permitted Revolving Credit Facility and agrees that the Collateral Agent may take such actions on its behalf as is contemplated by the terms of such Intercreditor Agreement.  In addition, each Purchaser and the Collateral Agent acknowledge and agree that (a) the exercise of any rights and remedies of the Collateral Agent and the Purchasers hereunder and under the other Note Documents as a secured creditor solely in respect of any Revolving Credit Priority Collateral shall be subject to such Intercreditor Agreement and (b) in the event of any conflict between the provisions of such Intercreditor Agreement and the provisions of this Agreement or the other Note Documents, the provisions of such Intercreditor Agreement shall govern.  
[SIGNATURE PAGES FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.
		
	ISSUER:
	OPTINOSE US, INC.,

a Delaware corporation
By:                    
Name:
Title:
        

		
	GUARANTORS: 
	OPTINOSE AS,

a Norwegian private limited liability company
By:                    
Name:
Title:

OPTINOSE, INC.,
a Delaware corporation
By:                    
Name:
Title:
OPTINOSE UK LIMITED,
a limited liability company organized under the laws of England and Wales
By:                     , on behalf of OptiNose UK Limited
Name:
Title:

[Signature Page to Note Purchase Agreement]
  

		
	COLLATERAL AGENT:
	BIOPHARMA CREDIT PLC,

a public limited company incorporated under the laws of England and Wales

By_________________________________________ 
Name:   
Title:  

[Signature Page to Note Purchase Agreement]
  

		
	PURCHASERS:
	BIOPHARMA CREDIT PLC,

a public limited company incorporated under the laws of England and Wales

By_________________________________________ 
Name:   
Title:  

BIOPHARMA CREDIT INVESTMENTS V (MASTER) LP,
a Cayman Islands exempted limited partnership
By: PHARMAKON ADVISORS, LP, its Investment Manager

By______________________________________
Name:  Pedro Gonzalez de Cosio
Title:  CEO and Managing Member

[Signature Page to Note Purchase Agreement]

EXHIBIT A-1

INITIAL SENIOR SECURED NOTE

THIS SENIOR SECURED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT.

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE GOVERNED BY THE TERMS AND CONDITIONS SET FORTH IN THAT CERTAIN NOTE PURCHASE AGREEMENT (THE “NOTE PURCHASE AGREEMENT”), DATED AS OF SEPTEMBER 12, 2019, AMONG OPTINOSE US, INC., DELAWARE CORPORATION, AS ISSUER, OPTINOSE AS, A NORWEGIAN PRIVATE LIMITED LIABILITY COMPANY, OPTINOSE, INC., A DELAWARE CORPORATION, OPTINOSE UK LIMITED, A LIMITED LIABILITY COMPANY FORMED UNDER THE LAWS OF ENGLAND AND WALES, THE OTHER GUARANTORS (AS DEFINED IN THE NOTE PURCHASE AGREEMENT) FROM TIME TO TIME PARTY THERETO, THE PURCHASERS SET FORTH IN THE NOTE PURCHASE AGREEMENT (EACH A “PURCHASER” AND, COLLECTIVELY, THE “PURCHASERS”) AND BIOPHARMA CREDIT PLC, A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES, AS COLLATERAL AGENT; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE NOTE PURCHASE AGREEMENT.  UNLESS OTHERWISE INDICATED, CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASCRIBED TO SUCH TERMS IN THE NOTE PURCHASE AGREEMENT.

OPTINOSE US, INC.

Senior Secured Note Due 2024
(a “Note”)

No. [N-1][N-2]     Yardley, PA
                      September 12, 2019

OptiNose US, Inc., a Delaware corporation, (together with its successors, the “Issuer”), for value received, hereby promises to pay to
[BIOPHARMA CREDIT PLC][BIOPHARMA CREDIT INVESTMENTS V (MASTER) LP]
or its registered assigns
in accordance with the below
the principal amount of
[FORTY-FOUR MILLION DOLLARS AND ZERO CENTS][THIRTY-SIX MILLION DOLLARS AND ZERO CENTS]
[$44,000,000.00][$36,000,000.00]

and to pay interest during any Interest Period from and after the Closing Date until paid in full at the rate per annum equal to 10.75% (the “Pre-Default Rate”) for such Interest Period, computed on the basis of a 360-day year and actual days elapsed. 

This Note shall at all times (a) upon the occurrence and during the continuation of any Event of Default under Section 9.01(a) (without regard to any grace period) or Section 9.01(f) of the Note Purchase Agreement or (b) if requested by the Required Purchasers while any Event of Default exists, bear interest at an interest rate equal to the Pre-Default Rate for such Interest Period plus 3.00% (the “Default Rate”), to the fullest extent permitted by applicable Laws. 

Interest (including interest at the Default Rate) shall be payable on this Note quarterly in arrears on the 15th day of each March, June, September and December of each year (each, an “Interest Payment Date”), and at maturity (whether through the occurrence of the Maturity Date, by acceleration, mandatory prepayment or otherwise) to the Purchaser holding this Note on such date, and shall be paid in cash in accordance with Section 2.09 of the Note Purchase Agreement. 
Prepayment Premiums and/or Make-Whole Amounts shall be due upon any repayment or prepayment of this Note, as applicable, pursuant to Section 2.07 of the Note Purchase Agreement.    
Payments of the principal amount hereof, interest hereon, Prepayment Premium and/or Make-Whole Amount (if and to the extent applicable) and all other amounts payable hereunder or under the Note Documents shall be made in Dollars, in immediately available funds not later than 2:00 p.m. on the date due, marked for attention as indicated, or in such other manner or to such other account in any bank as the Purchaser holding this Note may from time to time direct in writing.  All payments received by the Purchaser holding this Note after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Issuer shall come due 

2

on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest.
This Note is one of the Initial Notes, in the aggregate original principal amount of $80,000,000, issued by the Issuer pursuant to the Note Purchase Agreement, and this Note and the holder hereof are entitled, equally and ratably, with the holders of all other Notes outstanding under the Note Purchase Agreement, to all the benefits provided for thereby or referred to therein, to which Note Purchase Agreement reference is hereby made for a statement thereof.  
The obligations of the Issuer under this Note are guaranteed pursuant to the terms and provisions of Article IV of the Note Purchase Agreement, and the Collateral Documents executed in favor of the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties (as such term is defined in the Collateral Documents), to the extent described therein, by each of the applicable Note Parties and the other parties thereto. 
This Note is subject to optional prepayment and mandatory prepayment prior to the Maturity Date, at the times, on the terms and conditions and in the amounts set forth in Section 2.07 of the Note Purchase Agreement. 
Upon the occurrence and during the continuation of any one or more of the Events of Default specified in the Note Purchase Agreement, all amounts then remaining unpaid on this Note may be declared to be or may automatically become immediately due and payable as provided in the Note Purchase Agreement.
This Note is registered on the books of the Issuer and, subject to the Note Purchase Agreement, is transferable only by surrender thereof at the principal executive office of the Issuer and accompanied by, if required by the Issuer, a written instrument of transfer reasonably satisfactory to the Issuer, duly executed by the registered holder of this Note or its attorney duly authorized in writing.  Payment of or on account of principal, Prepayment Premium and/or Make-Whole Amount, if and to the extent applicable, and interest on this Note shall be made only to or upon the order in writing of the registered holder. 
*     *     *

3

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
OptiNose US, Inc.

By:                    
Name:
Title: 
 

[Signature Page to Initial Note – [BPCR] [BioPharma V]]

EXHIBIT A-2

FIRST DELAYED DRAW SENIOR SECURED NOTE

THIS SENIOR SECURED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT.

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE GOVERNED BY THE TERMS AND CONDITIONS SET FORTH IN THAT CERTAIN NOTE PURCHASE AGREEMENT (THE “NOTE PURCHASE AGREEMENT”), DATED AS OF SEPTEMBER 12, 2019, AMONG OPTINOSE US, INC., DELAWARE CORPORATION, AS ISSUER, OPTINOSE AS, A NORWEGIAN PRIVATE LIMITED LIABILITY COMPANY, OPTINOSE, INC., A DELAWARE CORPORATION, OPTINOSE UK LIMITED, A LIMITED LIABILITY COMPANY FORMED UNDER THE LAWS OF ENGLAND AND WALES, THE OTHER GUARANTORS (AS DEFINED IN THE NOTE PURCHASE AGREEMENT) FROM TIME TO TIME PARTY THERETO, THE PURCHASERS SET FORTH IN THE NOTE PURCHASE AGREEMENT (EACH A “PURCHASER” AND, COLLECTIVELY, THE “PURCHASERS”) AND BIOPHARMA CREDIT PLC, A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES, AS COLLATERAL AGENT; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE NOTE PURCHASE AGREEMENT.  UNLESS OTHERWISE INDICATED, CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASCRIBED TO SUCH TERMS IN THE NOTE PURCHASE AGREEMENT.

OPTINOSE US, INC.

Senior Secured Note Due 2024
(a “Note”)

No. [   ]     Yardley, PA
                      ______________, 20__

OptiNose US, Inc., a Delaware corporation, (together with its successors, the “Issuer”), for value received, hereby promises to pay to
[BIOPHARMA CREDIT PLC][BIOPHARMA CREDIT INVESTMENTS V (MASTER) LP]
or its registered assigns
in accordance with the below
the principal amount of
[SIXTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS AND ZERO CENTS][THIRTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS AND ZERO CENTS]
[$16,500,000.00][$13,500,000.00]

and to pay interest during any Interest Period from and after the First Delayed Draw Note Closing Date until paid in full at the rate per annum equal to 10.75% (the “Pre-Default Rate”) for such Interest Period, computed on the basis of a 360-day year and actual days elapsed. 

This Note shall at all times (a) upon the occurrence and during the continuation of any Event of Default under Section 9.01(a) (without regard to any grace period) or Section 9.01(f) of the Note Purchase Agreement or (b) if requested by the Required Purchasers while any Event of Default exists, bear interest at an interest rate equal to the Pre-Default Rate for such Interest Period plus 3.00% (the “Default Rate”), to the fullest extent permitted by applicable Laws.

Interest (including interest at the Default Rate) shall be payable on this Note quarterly in arrears on the 15th day of each March, June, September and December of each year (each, an “Interest Payment Date”), and at maturity (whether through the occurrence of the Maturity Date, by acceleration, mandatory prepayment or otherwise) to the Purchaser holding this Note on such date, and shall be paid in cash in accordance with Section 2.09 of the Note Purchase Agreement. 
Prepayment Premiums and/or Make-Whole Amounts shall be due upon any repayment or prepayment of this Note, as applicable, pursuant to Section 2.07 of the Note Purchase Agreement.
Payments of the principal amount hereof, interest hereon, Prepayment Premium and/or Make-Whole Amount (if and to the extent applicable) and all other amounts payable hereunder or under the Note Documents shall be made in Dollars, in immediately available funds not later than 2:00 p.m. on the date due, marked for attention as indicated, or in such other manner or to such other account in any bank as the Purchaser holding this Note may from time to time direct in writing.  All payments received by the Purchaser holding this Note after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Issuer shall come due 

2

on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest.
This Note is one of the First Delayed Draw Notes, in the aggregate original principal amount of $30,000,000, issued by the Issuer pursuant to the Note Purchase Agreement, and this Note and the holder hereof are entitled, equally and ratably, with the holders of all other Notes outstanding under the Note Purchase Agreement, to all the benefits provided for thereby or referred to therein, to which Note Purchase Agreement reference is hereby made for a statement thereof.  
The obligations of the Issuer under this Note are guaranteed pursuant to the terms and provisions of Article IV of the Note Purchase Agreement, and the Collateral Documents executed in favor of the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties (as such term is defined in the Collateral Documents), to the extent described therein, by each of the applicable Note Parties and the other parties thereto. 
This Note is subject to optional prepayment and mandatory prepayment prior to the Maturity Date, at the times, on the terms and conditions and in the amounts set forth in Section 2.07 of the Note Purchase Agreement. 
Upon the occurrence and during the continuation of any one or more of the Events of Default specified in the Note Purchase Agreement, all amounts then remaining unpaid on this Note may be declared to be or may automatically become immediately due and payable as provided in the Note Purchase Agreement.
This Note is registered on the books of the Issuer and, subject to the Note Purchase Agreement, is transferable only by surrender thereof at the principal executive office of the Issuer and accompanied by, if required by the Issuer, a written instrument of transfer reasonably satisfactory to the Issuer, duly executed by the registered holder of this Note or its attorney duly authorized in writing.  Payment of or on account of principal, Prepayment Premium and/or Make-Whole Amount, if and to the extent applicable, and interest on this Note shall be made only to or upon the order in writing of the registered holder. 
*     *     *

3

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
OptiNose US, Inc.

By:                    
Name:
Title: 
 

EXHIBIT A-3

SECOND DELAYED DRAW SENIOR SECURED NOTE

THIS SENIOR SECURED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT.

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE GOVERNED BY THE TERMS AND CONDITIONS SET FORTH IN THAT CERTAIN NOTE PURCHASE AGREEMENT (THE “NOTE PURCHASE AGREEMENT”), DATED AS OF SEPTEMBER 12, 2019, AMONG OPTINOSE US, INC., DELAWARE CORPORATION, AS ISSUER, OPTINOSE AS, A NORWEGIAN PRIVATE LIMITED LIABILITY COMPANY, OPTINOSE, INC., A DELAWARE CORPORATION, OPTINOSE UK LIMITED, A LIMITED LIABILITY COMPANY FORMED UNDER THE LAWS OF ENGLAND AND WALES, THE OTHER GUARANTORS (AS DEFINED IN THE NOTE PURCHASE AGREEMENT) FROM TIME TO TIME PARTY THERETO, THE PURCHASERS SET FORTH IN THE NOTE PURCHASE AGREEMENT (EACH A “PURCHASER” AND, COLLECTIVELY, THE “PURCHASERS”) AND BIOPHARMA CREDIT PLC, A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES, AS COLLATERAL AGENT; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE NOTE PURCHASE AGREEMENT.  UNLESS OTHERWISE INDICATED, CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASCRIBED TO SUCH TERMS IN THE NOTE PURCHASE AGREEMENT.

OPTINOSE US, INC.

Senior Secured Note Due 2024
(a “Note”)

No. [   ]     Yardley, PA
                      ______________, 20__

OptiNose US, Inc., a Delaware corporation, (together with its successors, the “Issuer”), for value received, hereby promises to pay to
[BIOPHARMA CREDIT PLC][BIOPHARMA CREDIT INVESTMENTS V (MASTER) LP]
or its registered assigns
in accordance with the below
the principal amount of
[ELEVEN MILLION DOLLARS AND ZERO CENTS][NINE MILLION DOLLARS AND ZERO CENTS]
[$11,000,000.00][$9,000,000.00]

and to pay interest during any Interest Period from and after the Second Delayed Draw Note Closing Date until paid in full at the rate per annum equal to 10.75% (the “Pre-Default Rate”) for such Interest Period, computed on the basis of a 360-day year and actual days elapsed. 

This Note shall at all times (a) upon the occurrence and during the continuation of any Event of Default under Section 9.01(a) (without regard to any grace period) or Section 9.01(f) of the Note Purchase Agreement or (b) if requested by the Required Purchasers while any Event of Default exists, bear interest at an interest rate equal to the Pre-Default Rate for such Interest Period plus 3.00% (the “Default Rate”), to the fullest extent permitted by applicable Laws.

Interest (including interest at the Default Rate) shall be payable on this Note quarterly in arrears on the 15th day of each March, June, September and December of each year (each, an “Interest Payment Date”), and at maturity (whether through the occurrence of the Maturity Date, by acceleration, mandatory prepayment or otherwise) to the Purchaser holding this Note on such date, and shall be paid in cash in accordance with Section 2.09 of the Note Purchase Agreement. 
Prepayment Premiums and/or Make-Whole Amounts shall be due upon any repayment or prepayment of this Note, as applicable, pursuant to Section 2.07 of the Note Purchase Agreement.
Payments of the principal amount hereof, interest hereon, Prepayment Premium and/or Make-Whole Amount (if and to the extent applicable) and all other amounts payable hereunder or under the Note Documents shall be made in Dollars, in immediately available funds not later than 2:00 p.m. on the date due, marked for attention as indicated, or in such other manner or to such other account in any bank as the Purchaser holding this Note may from time to time direct in writing.  All payments received by the Purchaser holding this Note after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Issuer shall come due 

2

on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest.
This Note is one of the Second Delayed Draw Notes, in the aggregate original principal amount of $20,000,000, issued by the Issuer pursuant to the Note Purchase Agreement, and this Note and the holder hereof are entitled, equally and ratably, with the holders of all other Notes outstanding under the Note Purchase Agreement, to all the benefits provided for thereby or referred to therein, to which Note Purchase Agreement reference is hereby made for a statement thereof.  
The obligations of the Issuer under this Note are guaranteed pursuant to the terms and provisions of Article IV of the Note Purchase Agreement, and the Collateral Documents executed in favor of the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties (as such term is defined in the Collateral Documents), to the extent described therein, by each of the applicable Note Parties and the other parties thereto. 
This Note is subject to optional prepayment and mandatory prepayment prior to the Maturity Date, at the times, on the terms and conditions and in the amounts set forth in Section 2.07 of the Note Purchase Agreement. 
Upon the occurrence and during the continuation of any one or more of the Events of Default specified in the Note Purchase Agreement, all amounts then remaining unpaid on this Note may be declared to be or may automatically become immediately due and payable as provided in the Note Purchase Agreement.
This Note is registered on the books of the Issuer and, subject to the Note Purchase Agreement, is transferable only by surrender thereof at the principal executive office of the Issuer and accompanied by, if required by the Issuer, a written instrument of transfer reasonably satisfactory to the Issuer, duly executed by the registered holder of this Note or its attorney duly authorized in writing.  Payment of or on account of principal, Prepayment Premium and/or Make-Whole Amount, if and to the extent applicable, and interest on this Note shall be made only to or upon the order in writing of the registered holder. 
*     *     *

3

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
OptiNose US, Inc.

By:                    
Name:
Title: 
 

[Signature Page to Second Delayed Draw Note – [BPCR][BioPharma V]]

EXHIBIT A-4

THIRD DELAYED DRAW SENIOR SECURED NOTE

THIS SENIOR SECURED NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR AN EXEMPTION FROM REGISTRATION, UNDER SAID ACT.

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE GOVERNED BY THE TERMS AND CONDITIONS SET FORTH IN THAT CERTAIN NOTE PURCHASE AGREEMENT (THE “NOTE PURCHASE AGREEMENT”), DATED AS OF SEPTEMBER 12, 2019, AMONG OPTINOSE US, INC., DELAWARE CORPORATION, AS ISSUER, OPTINOSE AS, A NORWEGIAN PRIVATE LIMITED LIABILITY COMPANY, OPTINOSE, INC., A DELAWARE CORPORATION, OPTINOSE UK LIMITED, A LIMITED LIABILITY COMPANY FORMED UNDER THE LAWS OF ENGLAND AND WALES, THE OTHER GUARANTORS (AS DEFINED IN THE NOTE PURCHASE AGREEMENT) FROM TIME TO TIME PARTY THERETO, THE PURCHASERS SET FORTH IN THE NOTE PURCHASE AGREEMENT (EACH A “PURCHASER” AND, COLLECTIVELY, THE “PURCHASERS”) AND BIOPHARMA CREDIT PLC, A PUBLIC LIMITED COMPANY INCORPORATED UNDER THE LAWS OF ENGLAND AND WALES, AS COLLATERAL AGENT; AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF THE NOTE PURCHASE AGREEMENT.  UNLESS OTHERWISE INDICATED, CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASCRIBED TO SUCH TERMS IN THE NOTE PURCHASE AGREEMENT.

OPTINOSE US, INC.

Senior Secured Note Due 2024
(a “Note”)

No. [   ]     Yardley, PA
                      ______________, 20__

OptiNose US, Inc., a Delaware corporation, (together with its successors, the “Issuer”), for value received, hereby promises to pay to
[BIOPHARMA CREDIT PLC][BIOPHARMA CREDIT INVESTMENTS V (MASTER) LP]
or its registered assigns
in accordance with the below
the principal amount of
[ELEVEN MILLION DOLLARS AND ZERO CENTS][NINE MILLION DOLLARS AND ZERO CENTS]
[$11,000,000.00][$9,000,000.00]

and to pay interest during any Interest Period from and after the Third Delayed Draw Note Closing Date until paid in full at the rate per annum equal to 10.75% (the “Pre-Default Rate”) for such Interest Period, computed on the basis of a 360-day year and actual days elapsed. 

This Note shall at all times (a) upon the occurrence and during the continuation of any Event of Default under Section 9.01(a) (without regard to any grace period) or Section 9.01(f) of the Note Purchase Agreement or (b) if requested by the Required Purchasers while any Event of Default exists, bear interest at an interest rate equal to the Pre-Default Rate for such Interest Period plus 3.00% (the “Default Rate”), to the fullest extent permitted by applicable Laws. 
Interest (including interest at the Default Rate) shall be payable on this Note quarterly in arrears on the 15th day of each March, June, September and December of each year (each, an “Interest Payment Date”), and at maturity (whether through the occurrence of the Maturity Date, by acceleration, mandatory prepayment or otherwise) to the Purchaser holding this Note on such date, and shall be paid in cash in accordance with Section 2.09 of the Note Purchase Agreement. 
Prepayment Premiums and/or Make-Whole Amounts shall be due upon any repayment or prepayment of this Note, as applicable, pursuant to Section 2.07 of the Note Purchase Agreement.
Payments of the principal amount hereof, interest hereon, Prepayment Premium and/or Make-Whole Amount (if and to the extent applicable) and all other amounts payable hereunder or under the Note Documents shall be made in Dollars, in immediately available funds not later than 2:00 p.m. on the date due, marked for attention as indicated, or in such other manner or to such other account in any bank as the Purchaser holding this Note may from time to time direct in writing.  All payments received by the Purchaser holding this Note after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Issuer shall come due 

2

on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest.
This Note is one of the Third Delayed Draw Notes, in the aggregate original principal amount of $20,000,000, issued by the Issuer pursuant to the Note Purchase Agreement, and this Note and the holder hereof are entitled, equally and ratably, with the holders of all other Notes outstanding under the Note Purchase Agreement, to all the benefits provided for thereby or referred to therein, to which Note Purchase Agreement reference is hereby made for a statement thereof.  
The obligations of the Issuer under this Note are guaranteed pursuant to the terms and provisions of Article IV of the Note Purchase Agreement, and the Collateral Documents executed in favor of the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties (as such term is defined in the Collateral Documents), to the extent described therein, by each of the applicable Note Parties and the other parties thereto. 
This Note is subject to optional prepayment and mandatory prepayment prior to the Maturity Date, at the times, on the terms and conditions and in the amounts set forth in Section 2.07 of the Note Purchase Agreement. 
Upon the occurrence and during the continuation of any one or more of the Events of Default specified in the Note Purchase Agreement, all amounts then remaining unpaid on this Note may be declared to be or may automatically become immediately due and payable as provided in the Note Purchase Agreement.
This Note is registered on the books of the Issuer and, subject to the Note Purchase Agreement, is transferable only by surrender thereof at the principal executive office of the Issuer and accompanied by, if required by the Issuer, a written instrument of transfer reasonably satisfactory to the Issuer, duly executed by the registered holder of this Note or its attorney duly authorized in writing.  Payment of or on account of principal, Prepayment Premium and/or Make-Whole Amount, if and to the extent applicable, and interest on this Note shall be made only to or upon the order in writing of the registered holder. 
*     *     *

3

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
OptiNose US, Inc.

By:                    
Name:
Title: 
 

[Signature Page to Third Delayed Draw Note – [BPCR][BioPharma V]]

EXHIBIT B

FORM OF JOINDER AGREEMENT
THIS JOINDER AGREEMENT (this “Agreement”) dated as of ____________, 20__ is by and between _________________, a _______________ (the “New Subsidiary”), and BIOPHARMA CREDIT PLC, in its capacity as Collateral Agent under that certain Note Purchase Agreement, dated as of September 12, 2019 (as may be amended, modified, restated, supplemented or extended from time to time, the “Note Purchase Agreement”), among OPTINOSE US, INC., a Delaware corporation (the “Issuer”), OPTINOSE AS, a Norwegian private limited liability company (the “Norwegian Guarantor”), OPTINOSE, INC., a Delaware corporation (the “Parent”), OPTINOSE UK LIMITED, a limited liability company formed under the laws of England and Wales (the “UK Guarantor”), the other Guarantors from time to time party thereto, the Purchasers from time to time party thereto and BIOPHARMA CREDIT PLC, a public limited company incorporated under the laws of England and Wales, as Collateral Agent.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Note Purchase Agreement. 
The Note Parties are required by Section 7.12 of the Note Purchase Agreement to cause the New Subsidiary to become a “Guarantor” thereunder.  Accordingly, the New Subsidiary hereby agrees as follows with the Collateral Agent, for the benefit of the Collateral Agent, the Purchasers and the other Secured Parties (as such term is defined in the Security Agreement):
1.    The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a party to the Note Purchase Agreement and a “Guarantor” for all purposes of the Note Purchase Agreement, and shall have all of the obligations of a Guarantor thereunder as if it had executed the Note Purchase Agreement.  The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions applicable to the Guarantor contained in the Note Purchase Agreement.  Without limiting the generality of the foregoing terms of this paragraph 1, the New Subsidiary hereby, jointly and severally together with the other Guarantors, guarantees to each Purchaser, the Collateral Agent and each other holder of the Obligations, as provided in Article IV of the Note Purchase Agreement, the prompt payment of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof.
2.    The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a party to the Security Agreement and a “Grantor” for all purposes of the Security Agreement and shall have all the obligations of a Grantor thereunder as if it had executed the Security Agreement.  The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Security Agreement.  Without limiting the generality of the foregoing terms of this paragraph 2, the New Subsidiary hereby grants to the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties (as defined in the Security Agreement), a continuing security interest in any and all right, title and interest of the New Subsidiary in and to the Collateral of the New Subsidiary to secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Obligations.
3.    The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the New Subsidiary will be deemed to be a party to the Pledge Agreement and a “Pledgor” for all purposes of the Pledge Agreement, and shall have all the obligations of a thereunder as 

if it had executed the Pledge Agreement.  The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Pledge Agreement.  Without limiting the generality of the foregoing terms of this paragraph 3, the New Subsidiary hereby grants, pledges and assigns to the Collateral Agent, for the benefit of the Purchasers and the other Secured Parties (as defined in the Pledge Agreement), a continuing security interest in any and all right, title and interest of the New Subsidiary in and to the Equity Interests, if any, identified on Schedule 6 hereto, to the extent constituting Pledged Collateral, and all other Pledged Collateral (as defined in the Pledge Agreement) of the New Subsidiary to secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Obligations.
4.    The New Subsidiary hereby represents and warrants to the Collateral Agent and the Purchasers that, as of the date hereof, the following statements are true and correct:
(a)    The New Subsidiary’s exact legal name, type of organization and jurisdiction of organization are as set forth on the signature pages hereto.
(b)    The New Subsidiary’s taxpayer identification number and organization number are set forth on Schedule 1 attached hereto.
(c)    Other than as set forth on Schedule 2 attached hereto, the New Subsidiary has not changed its legal name, changed its type of organization, changed its jurisdiction of organization, or been party to a merger, consolidation or other change in structure in the five (5) years preceding the date hereof.
(d)    Schedule 3 attached hereto includes: (a) all of the Patents, Trademarks and Copyrights registered or pending registration with the United States Copyright Office and the United States Patent and Trademark Office or with any other Governmental Authority (or comparable organization or office established in any country or pursuant to an international treaty or similar international agreement for the filing, recordation or registration of interests in intellectual property), together with relevant identifying information with respect thereto, owned by the New Subsidiary; (b) all other Material IP Rights of the New Subsidiary, together with relevant identifying information with respect thereto; and (c) each Copyright License, each Patent License and each Trademark License of any Note Party that is, in the case of this clause (c), material to the Businesses, taken as a whole.
(e)    Schedule 4 attached hereto includes all Commercial Tort Claims (as defined in the Security Agreement) before any Governmental Authority with a value in excess of $100,000 by or in favor of the New Subsidiary.
(f)    Schedule 5 attached hereto lists all real property that is owned or leased by the New Subsidiary as of the date hereof (with the mailing address thereof, a description of each real property that is Excluded Property (if any) and a designation of whether such real property is owned or leased).
(g)    Schedule 6 attached hereto lists each Subsidiary of the New Subsidiary, including (i) jurisdiction of formation, (ii) number of shares of each class of Equity Interests outstanding, (iii) the certificate number(s) of the certificates evidencing such Equity Interests and number and percentage of outstanding shares of each class owned by the New Subsidiary (directly or indirectly) of such Equity Interests and (iv) number and effect, if exercised, of all outstanding 

options, warrants, rights of conversion or purchase and all other similar rights with respect thereto.
5.    Schedule 7 attached hereto includes the mailing address, facsimile number and electronic mail address of the New Subsidiary for purposes of all notices and other communications, which the New Subsidiary may from time to time update by notifying the Collateral Agent in writing.
6.    The New Subsidiary hereby waives acceptance by the Collateral Agent and the Purchasers of the guaranty by the New Subsidiary under Article IV of the Note Purchase Agreement upon the execution of this Agreement by the New Subsidiary.
7.    This Agreement may be executed in multiple counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original but all of which when taken together shall constitute one contract.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.
8.    THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
[Signature Page Follows]

IN WITNESS WHEREOF, the New Subsidiary has caused this Joinder Agreement to be duly executed by its authorized officer, and the Collateral Agent, for the benefit of itself and the Purchasers, has caused the same to be accepted by its authorized officer, as of the day and year first above written.
[NEW SUBSIDIARY]

By: ___________________________
Name:
Title:

Acknowledged and accepted:

BIOPHARMA CREDIT PLC,
as Collateral Agent

By_________________________________________
 
Name:  
 
Title:  

[Signature Page to Joinder Agreement]

Schedule 1

Taxpayer Identification Number; Organizational Number

Schedule 2

Changes in Legal Name or Jurisdiction of Formation;
Mergers, Consolidations and other Changes in Structure

Schedule 3

IP Rights

Schedule 4

Commercial Tort Claims

Schedule 5

Real Property

Schedule 6

Equity Interests

Schedule 7

Addresses for Notices

EXHIBIT C

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

	2.
	Assignee:
	___________________________ [and is an Affiliate of [identify Purchaser]]

	3.
	Issuer(s):
	OptiNose US, Inc., a Delaware corporation

	4.
	Note Purchase Agreement:
	Note Purchase Agreement, dated as of September 12, 2019 (as may be amended, modified, restated, supplemented or extended from time to time, the “Note Purchase Agreement”), among OptiNose US, Inc., a Delaware corporation (the “Issuer”), the Guarantors from time to time party thereto, the Purchasers from time to time party thereto and the Collateral Agent.

	5.
	Assigned Interest:
	 

1

	
				
	Aggregate Principal Amount of Notes for all Purchasers
	Amount of 
Notes Assigned
	Percentage Assigned of
Notes
	Issuer

	 
	 
	 
	 

	 
	 
	 
	 

	
			
	Aggregate Amount of
Delayed Draw Note Commitment for all Purchasers
	Amount of 
Delayed Draw Note Commitment Assigned
	Percentage Assigned of
Delayed Draw Note Commitment

	 
	 
	 

	
			
	6.
	Trade Date:
	___________________________

	7.
	Effective Date:
	___________________________

The terms set forth in this Assignment and Assumption Agreement are hereby agreed to:
	
		
	ASSIGNOR:
	[NAME OF ASSIGNOR]

	 
	By: ____________________________
Name:
Title:

	ASSIGNEE:
	[NAME OF ASSIGNEE]

	 
	By: ____________________________
Name:
Title:

2

Consented to:

BIOPHARMA CREDIT PLC,
as Collateral Agent

By_________________________________________
 
Name:  
 
Title:  

3

[Consented to:]4 
OPTINOSE
OPTINOSE US, INC., 
a Delaware corporation
By:                    
Name:
Title:

 4To be added only if the consent of the Issuer is required by the terms of the Note Purchase Agreement.

4

Annex 1 to Assignment and Assumption Agreement

STANDARD TERMS AND CONDITIONS

1.    Representations and Warranties.
1.1.    Assignor.  The Assignor: (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption Agreement and to consummate the transactions contemplated hereby and (iv) it is [not] a Defaulting Purchaser; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Note Purchase Agreement or any other Note Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Note Documents or any collateral thereunder, (iii) the financial condition of the Issuers, any of their Subsidiaries or Affiliates or any other Person obligated in respect of any Note Document or (iv) the performance or observance by the Issuers, any of their Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Note Document.
1.2.    Assignee.  The Assignee: (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption Agreement and to consummate the transactions contemplated hereby and to become a Purchaser under the Note Purchase Agreement, (ii) it meets the requirements to be an assignee under Section 12.06(b) of the Note Purchase Agreement (subject to such consents, if any as may be required under Section 12.06(b) of the Note Purchase Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Note Purchase Agreement as a Purchaser thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Purchaser thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, and acknowledges that the Notes have not been registered under the Securities Act or the securities laws of any state or other jurisdiction, (v) each of the representations and warranties set out in Article VI-A of the Note Purchase Agreement are true and correct in respect of the Assignee, (vi) it has received a copy of the Note Purchase Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 7.01 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption Agreement and to purchase the Assigned Interest, and (vii) it has, independently and without reliance upon the Collateral Agent or any other Purchaser and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption Agreement and to purchase the Assigned Interest; and (b) agrees that (i) it will, independently and without reliance on the Collateral Agent, the Assignor or any other Purchaser, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Note Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Note Documents are required to be performed by it as a Purchaser.
2.    General Provisions.  This Assignment and Assumption Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption Agreement may be executed in any number of counterparts (and by different parties 

5

hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption Agreement.  This Assignment and Assumption Agreement shall be governed by, and construed in accordance with, the law of the State of New York.

6thirdamendmenttosecondar

                                                                EXECUTION VERSION     THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT                                                  This THIRD AMENDMENT TO SECOND        AMENDED AND RESTATED CREDIT   AGREEMENT (this “Amendment”) is dated as of September 9, 2019, by and among UBIQUITI INC., a   Delaware corporation, formerly known as Ubiquiti Networks, Inc. (the “Borrower”), UBIQUITI   INTERNATIONAL HOLDING COMPANY LIMITED, an exempted company incorporated under the   laws of the Cayman Islands (in its capacity as a Borrower under the Existing Credit Agreement and to   acknowledge being released from its obligations under the Credit Agreement and other Loan Documents  as of and after the Third Amendment Effective Date (as defined below) pursuant to Section 4, the “Released   Cayman Borrower”), certain Subsidiaries of the Borrower party hereto (the “Guarantors”), each of the   Existing Lenders referred to below, each lender identified on the signature pages hereto as a “New Lender”   (collectively, the “New Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as   administrative agent and collateral agent for the Lenders (in such capacity, the “Administrative Agent” or   the “Collateral Agent”, respectively).                                  Statement of Purpose          The Borrower, the Released Cayman Borrower, the Lenders party thereto (the “Existing Lenders”   and, together with the New Lenders, the “Lenders”) and the Administrative Agent are parties to that certain   Second Amended and Restated Credit Agreement dated as of January 17, 2018 (as amended, restated,   supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit   Agreement”, and as amended by this Amendment, the “Credit Agreement”), pursuant to which the Lenders   have extended a term loan to the Borrower and a revolving credit facility to the Borrower and to the   Released Cayman Borrower.  As of the date hereof, the Released Cayman Borrower will no longer be a   party to the Credit Agreement.          The Borrower has requested, and subject to the terms and conditions set forth herein, the   Administrative Agent and the Lenders have agreed, to refinance the existing Term Loans, increase the   Revolving Credit Commitments and amend the Existing Credit Agreement as specifically set forth herein.          NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which   are hereby acknowledged, the parties hereto hereby agree as follows:          1.    Capitalized Terms.  All capitalized undefined terms used in this Amendment (including,   without limitation, in the introductory paragraph and the Statement of Purpose hereto) shall have the   meanings assigned thereto in the Credit Agreement.            2.    Consent; Additional Revolving Credit Commitments; Term Loan Repayment.                        (a)   Subject to the terms and conditions set forth herein, each of the Existing Lenders         and each of the New Lenders hereby consent to the amendments set forth herein, including any         modification to the Revolving Credit Commitments and repayment of the existing Term Loans with         the Third Amendment Term Loans, as set forth herein.                (b)   Subject to the terms and conditions set forth herein, each Revolving Credit Lender        party hereto severally agrees that its Revolving Credit Commitment, as of the Third Amendment        Effective Date, is the principal amount set forth opposite such Revolving Credit Lender’s name on        Schedule 1.1(a), as amended pursuant to this Amendment.                (c)   The parties hereto agree that (i) the Administrative Agent shall reallocate the        Revolving Credit Loans and other Revolving Credit Exposure in accordance with the updated     119798822_4  

 

       Revolving Credit Commitment Percentages as of the Third Amendment Effective Date and the         Revolving Credit Lenders agree to make all payments and adjustments necessary to effect such         reallocation, and (ii) the existing Term Loans outstanding on the Third Amendment Effective Date         shall be repaid using the proceeds of the Third Amendment Term Loans.  The Lenders party hereto         agree to waive (x) any notice of prepayment required under the Existing Credit Agreement         (including under Section 2.4(c) of the Credit Agreement) in connection with the repayment of         outstanding Term Loans on the Third Amendment Effective Date and (y) any costs required to be         paid pursuant to Section 4.9 of the Credit Agreement in connection with such reallocation of         Revolving Credit Commitments and refinancing of existing Term Loans.          3.    Amendments to Existing Credit Agreement.  Subject to and in accordance with the terms   and conditions set forth herein, the parties hereto agree that the Existing Credit Agreement is amended as   follows:               (a)   the body of the Existing Credit Agreement is hereby amended to delete the stricken        text (indicated textually in the same manner as the following example: stricken text) and to add the         double-underlined text (indicated textually in the same manner as the following example: double-        underlined text) as set forth in the Credit Agreement attached hereto as Annex A.                (b)   the Exhibits to the Existing Credit Agreement are hereby amended and restated        such that, after giving effect to all such amendments, the Exhibits to the Credit Agreement shall        read in their entirety as set forth on Annex B attached hereto.                (c)   Schedule 1.1(a) to the Existing Credit Agreement is hereby amended such that,         after giving effect to all such amendments, it shall read in its entirety as set forth on Annex C         attached hereto.                (d)   the body of the Amended and Restated US Subsidiary Guaranty Agreement, dated        as of the same date as the Existing Credit Agreement, executed by the Guarantors party thereto in        favor of the Administrative Agent for the benefit of the Secured Parties, is hereby amended such        that, after giving effect to all such amendments, it shall read in its entirety as set forth on Annex D         attached hereto.                (e)   the body of the Second Amended and Restated US Collateral Agreement, dated as        of the same date as the Existing Credit Agreement, executed by the Credit Parties party thereto in         favor of the Administrative Agent for the benefit of the Secured Parties, is hereby amended such         that, after giving effect to all such amendments, it shall read in its entirety as set forth on Annex E         attached hereto.          4.    Release of Liens and Obligations of Released Cayman Borrower and Foreign Subsidiaries.    The Lenders and the Collateral Agent agree, on the Third Amendment Effective Date and after giving effect  to this Amendment:                (a)   The Released Cayman Borrower is hereby released and discharged from its        obligations as a “Borrower” under the Existing Credit Agreement and each other Loan Document,        and shall no longer be a borrower under the Credit Agreement;                (b)   Ubiquiti Networks International Limited, a company formed under the laws of the        Hong Kong Special Administrative Region of the People’s Republic of China, Ubiquiti Cayman        Limited, an exempted company incorporated under the laws of the Cayman Islands, and Ubiquiti        Global Energy Limited, an exempted company incorporated under the laws of the Cayman Islands        (collectively, the “Existing Foreign Guarantors” and together with the Released Cayman Borrower,                                          2     

 

      the “Existing Foreign Credit Parties”), are hereby released and discharged from their obligations,        liabilities and undertakings as a “Guarantor” under the Existing Credit Agreement and each other        Loan Document, and shall no longer be a guarantor under the Credit Agreement; and               (c)   all Liens, encumbrances, pledges and security interests granted by an Existing       Foreign Credit Party in such Person’s assets shall be released and terminated, including any security       interests granted by an Existing Foreign Credit Party pursuant to the Loan Documents set forth on       Schedule I hereto (the “Terminated Foreign Credit Party Loan Documents”), and the Collateral        Agent hereby reassigns and retransfers to each applicable Existing Foreign Credit Party all rights,        interest and title of the Collateral Agent in and to the assets subject to the Terminated Foreign       Credit Party Loan Documents.           The Lenders and the Administrative Agent agree that the Administrative Agent, at the request and        expense of the Borrower or other Credit Party, shall execute and deliver without recourse,        representation or warranty all releases or other documents as are reasonably necessary or        appropriate for the release of the Liens created under the Terminated Foreign Credit Party Loan        Documents and deliver such other release documents and take such actions as are necessary or        reasonably requested by the Borrower or such other Credit Party to evidence the termination and        release of the Liens and security interests securing the Existing Foreign Credit Parties obligations        under the Existing Credit Agreement and the Terminated Foreign Credit Party Loan Documents.         5.    New Lender Joinder.  By its execution of this Amendment, each New Lender hereby  acknowledges, agrees and confirms that, on and after the Third Amendment Effective Date:               (a)   it will be deemed to be a party to the Credit Agreement as a “Lender” and a “Term       Loan Lender” and/or “Revolving Credit Lender”, as applicable, for all purposes of the Credit       Agreement and the other Loan Documents, and shall have all of the obligations of, and shall be        entitled to the benefits of, a Lender and a Term Loan Lender and/or Revolving Credit Lender, as        applicable, under the Credit Agreement as if it had executed the Credit Agreement;               (b)   it has received a copy of the Credit Agreement, copies of the most recent financial       statements delivered pursuant to Section 7.1 thereof and such other documents and information as        it deems appropriate, independently and without reliance upon the Administrative Agent, the        Arrangers, any other Lender or any of their respective Affiliates, to make its own credit analysis        and decision to enter into this Amendment and become a Lender and a Term Loan Lender and/or        Revolving Credit Lender, as applicable, under the Credit Agreement; and               (c)   it will provide any additional documentation (including, without limitation, any       Assignment and Assumption to be executed in connection with this Amendment) to evidence it       status as a Lender and a Term Loan Lender and/or Revolving Credit Lender, as applicable, as of        the Third Amendment Effective Date or as required to be delivered by it pursuant to the terms of        the Credit Agreement.         6.    Conditions to Effectiveness.  The effectiveness of this Amendment shall be subject to the  satisfaction of each of the following conditions precedent (the date on which such conditions have been  satisfied, the “Third Amendment Effective Date”):               (a)   the Administrative Agent’s receipt of the following, each properly executed by a        Responsible Officer of the signing Credit Party and each in form and substance reasonably        satisfactory to the Administrative Agent:                                          3    

 

                  (i)   this Amendment, duly executed by each of the Credit Parties, the       Administrative Agent, each Existing Lender agreeing to increase its Revolving Credit Commitment       hereunder or extend a Third Amendment Term Loan on the date hereof, each New Lender and the       other Lenders;                     (ii) with respect to a New Lender, a Revolving Credit Note and/or a Term        Loan Note executed by the Borrower in favor of each New Lender that has requested a Revolving        Credit Note and/or a Term Loan Note;                     (iii) a certificate of a Responsible Officer of each Credit Party certifying that        (A) the articles or certificate of incorporation or formation (or equivalent), as applicable, of such        Credit Party have not been amended since the date of the last delivered certificate, or if they have        been amended, attached thereto are true, correct and complete copies of the same, certified as of a        recent date by the appropriate Governmental Authority in its jurisdiction of incorporation,        organization or formation (or equivalent), as applicable, (B) the bylaws or other governing        document of such Credit Party have not been amended since the date of the last delivered certificate,        or if they have been amended, attached thereto are true, correct and complete copies of the same,        (C) attached thereto is a true, correct and complete copy of resolutions duly adopted by the board        of directors (or other governing body) of such Credit Party authorizing and approving the        transactions contemplated hereunder and the execution, delivery and performance of this        Amendment and the Credit Agreement as amended by this Amendment and (D) attached thereto is        a true, correct and complete copy of such certificates of good standing from the applicable secretary        of state of the state of incorporation, organization or formation (or equivalent), as applicable, of        such Credit Party; and                     (iv)  legal opinions from counsel to the Credit Parties with respect to the Loan        Documents as amended, modified and reaffirmed by this Amendment.               (b)   no Default or Event of Default shall have occurred and be continuing immediately        prior to or after giving effect to this Amendment;               (c)   (i) the Administrative Agent and the Lenders shall have received all documentation        and other information requested by the Administrative Agent or any Lender or required by        regulatory authorities in order for the Administrative Agent and the Lenders to comply with        requirements of any Anti-Money Laundering Laws, including the PATRIOT Act and any        applicable “know your customer” rules and regulations, and (ii) the Borrower shall have delivered        to the Administrative Agent, and directly to any Lender requesting the same, a Beneficial        Ownership Certification in relation to it (or a certification that such Borrower qualifies for an        express exclusion from the “legal entity customer” definition under the Beneficial Ownership        Regulations); and               (d)   the Borrowers shall have paid all fees and expenses as separately agreed to in        connection with this Amendment, including without limitation, (i) those set forth in the        Engagement Letter dated as of August 6, 2019, between the Borrower and Wells Fargo Securities,        LLC and (ii) all reasonable fees, charges and disbursements of counsel to the Administrative Agent        (directly to such counsel if requested by the Administrative Agent).         For purposes of determining compliance with the conditions specified in this Section 6, each Lender  that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be  satisfied with, each document or other matter required thereunder to be consented to or approved by or                                          4    

 

 acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such   Lender prior to the Third Amendment Effective Date specifying its objection thereto.          7.    Limited Effect.  Except as expressly provided herein, the Credit Agreement and the other   Loan Documents shall remain unmodified and in full force and effect.  This Amendment shall not be   deemed (a) to be a waiver of, or consent to, or a modification or amendment of, any other term or condition   of the Credit Agreement or any other Loan Document other than as expressly set forth herein, (b) to   prejudice any right or rights which the Administrative Agent or the Lenders may now have or may have in   the future under or in connection with the Credit Agreement or the other Loan Documents or any of the   instruments or agreements referred to therein, as the same may be amended, restated, supplemented or   modified from time to time, or (c) to be a commitment or any other undertaking or expression of any   willingness to engage in any further discussion with the Borrower, any of its Subsidiaries or any other   Person with respect to any other waiver, amendment, modification or any other change to the Credit   Agreement or the Loan Documents or any rights or remedies arising in favor of the Lenders or the   Administrative Agent, or any of them, under or with respect to any such documents.  References in the   Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein”,   “hereof” or other words of like import) and in any Loan Document to the “Credit Agreement” shall be   deemed to be references to the Credit Agreement as modified hereby.                    8.    Representations and Warranties.  The Borrower and each Guarantor represents and   warrants that (a) it has the corporate or other equivalent power and authority to make, deliver and perform  this Amendment, (b) it has taken all necessary corporate or other equivalent action to authorize the   execution, delivery and performance of this Amendment, (c) this Amendment has been duly executed and   delivered on behalf of such Person, (d) this Amendment constitutes a legal, valid and binding obligation of   such Person, enforceable against it in accordance with its terms, except as enforceability may be limited by   applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement   of creditors’ rights generally and by general equitable principles (whether enforcement is sought by   proceedings in equity or at law), (e) each of the representations and warranties made by such Credit Party   in or pursuant to the Loan Documents is true and correct in all material respects (except to the extent that   such representation and warranty is subject to a materiality or Material Adverse Effect qualifier, in which   case it shall be true and correct in all respects), in each case on and as of the date hereof as if made on and   as of the date hereof, except to the extent that such representations and warranties relate to an earlier date,   in which case such representations and warranties are true and correct in all material respects as of such   earlier date and (f) after giving effect to this Amendment, no Default or Event of Default has occurred and   is continuing as of the date hereof or would result after giving effect to this Amendment and the transactions   contemplated hereby.            9.    Acknowledgement and Reaffirmation.  By their execution hereof, the Borrower and each   Guarantor hereby expressly (a) consents to this Amendment, (b) acknowledges that the covenants,   representations, warranties and other obligations set forth in the Credit Agreement, the Notes and the other   Loan Documents to which the Borrower or such Guarantor is a party remain in full force and effect (it being   understood and agreed that to the extent any such covenants, representations, warranties or other obligations   are expressly modified herein, such covenants, representations, warranties or obligations shall continue in   full force and effect as expressly modified herein) and (c) ratifies and reaffirms any guarantee and grant of   security interests and Liens on any of their respective Collateral pursuant to any Loan Document as security   for or otherwise guaranteeing the Obligations under or with respect to the Loan Documents and confirm   and agree that such security interests and Liens are in all respects continuing and in full force and effect   and shall continue to secure all of the Obligations under the Loan Documents (after giving effect to this   Amendment).                                             5     

 

       10.   Costs, Expenses and Taxes.  The Borrower agrees to pay all reasonable and documented   out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution,   delivery and administration of this Amendment and the other instruments and documents to be delivered   hereunder, including, without limitation, the reasonable and documented fees and out-of-pocket expenses   of counsel for the Administrative Agent.                  11.   Execution in Counterparts.  This Amendment may be executed by one or more of the   parties hereto in any number of separate counterparts and all of said counterparts taken together shall be   deemed to constitute one and the same instrument.  Delivery of an executed signature page of this   Amendment by facsimile, telecopy, pdf or other electronic transmission shall be effective as delivery of a   manually executed counterpart hereof.            12.   Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF   THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN   ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO  THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF.          13.   Entire Agreement.  This Amendment is the entire agreement, and supersedes any prior   agreements and contemporaneous oral agreements, of the parties concerning its subject matter.  This  Amendment is a Loan Document and is subject to the terms and conditions of the Credit Agreement.          14.   Successors and Assigns.  This Amendment shall be binding on and inure to the benefit of   the parties and their heirs, beneficiaries, successors and permitted assigns.                  [Remainder of page intentionally left blank; signature pages follow]                                           6     

 

           IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed under  seal by their duly authorized officers, all as of the day and year first written above.                                         Borrower:                                                                              UBIQUITI INC., as the Borrower                                        By:   /s/ Kevin Radigan                                       Name: Kevin Radigan                                      Title:  Chief Accounting Officer                                        Released Cayman Borrower:                                        UBIQUITI INTERNATIONAL HOLDING                                       COMPANY LIMITED                                        By:  /s/ Kevin Radigan                                       Name: Kevin Radigan                                       Title: Authorized Signatory                                        Guarantors:                                                                              UBIQUITI ENERGY, LLC, as Guarantor                                                                                                                     By:   /s/ Kevin Radigan                                       Name: Kevin Radigan                                      Title:  Chief Accounting Officer                                        UBIQUITI LABS, LLC, as Guarantor                                                                                                                     By:   /s/ Kevin Radigan                                       Name: Kevin Radigan                                      Title:  Chief Accounting Officer                                                                               Ubiquiti Inc.                  Third Amendment to Second Amended and Restated Credit Agreement                                    Signature Page  

 

                                     Administrative Agent, Collateral Agent and Lenders:                                     WELLS FARGO BANK, NATIONAL ASSOCIATION,                      as Administrative Agent, Collateral Agent and Lender                        By: /s/ Lacy Houstoun                       Name: Lacy Houstoun                      Title:  Managing Director                                                                                       Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                        FIFTH THIRD BANK, as Lender                          By: /s/ Marisa Lake                         Name: Marisa Lake                         Title:  Officer                         Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                       Signature Page  

 

                                     HSBC BANK USA, NATIONAL ASSOCIATION, as                       Lender                        By: /s/ Radmila Stolle                       Name: Radmila Stolle                       Title:  Vice President, HSBC                                               Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     PNC BANK, NATIONAL ASSOCIATION, as Lender                        By: /s/ Cheryl L. Sekelsky                       Name: Cheryl L. Sekelsky                       Title:  Vice President                       Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     MUFG UNION BANK, N.A., as Lender                        By: /s/ Matthew Antioco                       Name: Matthew Antioco                       Title: Director                       Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     U.S. BANK NATIONAL ASSOCIATION, as Lender                        By: /s/ Matt S. Scullin                       Name: Matt S. Scullin                      Title: Senior Vice President                         Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     TD BANK, N.A., as Lender                        By: /s/ Emily Chott                       Name: Emily Chott                       Title: Senior Vice President                       Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     BRANCH BANKING AND TRUST COMPANY, as                       Lender                        By: /s/ Sharona Yen                       Name: Sharona Yen                      Title: Assistant Vice President                                  Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                        CITY NATIONAL BANK, as Lender                          By: /s/ Kevin Wallace                         Name: Kevin Wallace                         Title: SVP                                                   Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                       Signature Page  

 

                                     CHANG HWA COMMERCIAL BANK, LTD., NEW                       YORK BRANCH, as Lender                        By: /s/ Jerry C.S. Liu                       Name: Jerry C.S. Liu                       Title: VP & GM                                                                 Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     MEGA INTERNATIONAL COMMERCIAL BANK CO.,                       LTD., NEW YORK BRANCH, as Lender                        By: /s/ Pi Kai Liu                       Name: Pi Kai Liu                       Title: Assistant Vice President                                                                 Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     MANUFACTURERS BANK, as Lender                        By: /s/ Charles Jou                       Name: Charles Jou                       Title: Senior Vice President                                                      Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                                     TAIWAN COOPERATIVE BANK LTD., ACTING                       THROUGH ITS NEW YORK BRANCH, as Lender                        By: /s/ Li Hua Huang                       Name: Li Hua Huang                      Title: SVP & General Manager                                                                       Ubiquiti Inc.  Third Amendment to Second Amended and Restated Credit Agreement                    Signature Page  

 

                       Annex A   Amended Credit Agreement                     See attached.                                                                                                  

 

                                                                Conformed Copy:Annex A        Firstto Third Amendment to Second A&RAmended and Restated Credit Agreement (June 29, 2018)                            Second Amendment to Second A&R Credit Agreement (March 15, 2019)                                                       Published CUSIP Number: 90291HAA9                                                       Revolver CUSIP Number: 90291HAC5                                                     Term Loan CUSIP Number: 90291HAB7                                   $900,000,0001,200,000,000                SECOND AMENDED AND RESTATED CREDIT AGREEMENT                                 dated as of January 17, 2018,                                      by and among                               UBIQUITI NETWORKS, INC.,                                            and                UBIQUITI INTERNATIONAL HOLDING COMPANY LIMITED,                                   as BorrowersBorrower,                                 the Lenders referred to herein,                                        as Lenders,                     WELLS FARGO BANK, NATIONAL ASSOCIATION,                                  as Administrative Agent,                             Swingline Lender and Issuing Lender,                            WELLS FARGO SECURITIES, LLC,                      HSBC BANK USA, NATIONAL ASSOCIATION,                          PNC BANK, NATIONAL ASSOCIATION                                           and                                  FIFTH THIRD BANK,                         as Joint Lead Arrangers and Joint Bookrunners,                                            and                           U.S. BANK NATIONAL ASSOCIATION,                          PNC BANK, NATIONAL ASSOCIATION,                                           and                               MUFG UNION BANK, N.A.,                                  as Documentation Agents   103755581_3119311063_5 

 

                                TABLE OF CONTENTS                                                                                   Page  ARTICLE I    DEFINITIONS                                                             1       SECTION 1.1      Definitions                                                   1       SECTION 1.2      Other Definitions and Provisions                           2830       SECTION 1.3      Accounting Terms                                           2931       SECTION 1.4      UCC Terms                                                  2931       SECTION 1.5      Rounding                                                   2931       SECTION 1.6      References to Agreement and Laws                           2931       SECTION 1.7      Times of Day                                               3032       SECTION 1.8      Letter of Credit Amounts                                   3032       SECTION 1.9      Guarantees and Non-Recourse Indebtedness                   3032       SECTION 1.10     Covenant Compliance Generally                              3032       SECTION 1.11     Rates                                                      3032       SECTION 1.12     Limited Condition Acquisitions                               32       SECTION 1.13     Divisions                                                    34 ARTICLE II   CREDIT FACILITIES                                                    3034       SECTION 2.1      Revolving Credit Loans                                     3034       SECTION 2.2      Swingline Loans                                            3134       SECTION 2.3      Procedure for Advances of Revolving Credit Loans and Swingline                        Loans                                                      3236       SECTION 2.4      Repayment and Prepayment of Revolving Credit and Swingline                        Loans                                                      3336       SECTION 2.5      Permanent Reduction of the Revolving Credit Commitment     3437       SECTION 2.6      Termination of Revolving Credit Facility                   3438       SECTION 2.7      Increase in Revolving Credit Commitments; Incremental Loans 3438       SECTION 2.8      InitialThird Amendment Term Loan                           3640       SECTION 2.9      Procedure for Advance of Term Loans                        3740       SECTION 2.10     Repayment of Term Loans                                    3741       SECTION 2.11     Prepayments of Term Loans                                  3841 ARTICLE III  LETTER OF CREDIT FACILITY                                            4043       SECTION 3.1      L/C Facility                                               4043       SECTION 3.2      Procedure for Issuance of Letters of Credit                4044       SECTION 3.3      Commissions and Other Charges                              4144       SECTION 3.4      L/C Participations                                         4144                                              i 103755581_3 119311063_5 

 

                                TABLE OF CONTENTS                                       (continued)                                                                                  Page        SECTION 3.5      Reimbursement Obligation of the Parent Borrower            4245       SECTION 3.6      Obligations Absolute                                       4346       SECTION 3.7      Effect of Letter of Credit Application                     4346 ARTICLE IV   GENERAL LOAN PROVISIONS                                              4346       SECTION 4.1      Interest                                                   4346       SECTION 4.2      Notice and Manner of Conversion or Continuation of Loans   4447       SECTION 4.3      Fees                                                       4548       SECTION 4.4      Manner of Payment                                          4548       SECTION 4.5      Evidence of Indebtedness                                   4649       SECTION 4.6      Sharing of Payments by Lenders                             4649       SECTION 4.7      Administrative Agent’s Clawback                            4750       SECTION 4.8      Changed Circumstances                                      4851       SECTION 4.9      Indemnity                                                  4952       SECTION 4.10     Increased Costs                                            5053       SECTION 4.11     Taxes                                                      5154       SECTION 4.12     Mitigation Obligations; Replacement of Lenders             5558       SECTION 4.13     Cash Collateral                                            5659       SECTION 4.14     Defaulting Lenders                                         5659 ARTICLE V    CONDITIONS OF CLOSING AND BORROWING                                  5962       SECTION 5.1      Conditions to Closing and Initial Extensions of Credit     5962       SECTION 5.2      Conditions to All Extensions of Credit                     6265 ARTICLE VI   REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES                 6366       SECTION 6.1      Organization; Power; Qualification                         6366       SECTION 6.2      Ownership                                                  6366       SECTION 6.3      Authorization; Enforceability                              6366       SECTION 6.4      Compliance of Agreement, Loan Documents and Borrowing with                        Laws, Etc                                                  6366       SECTION 6.5      Compliance with Law; Governmental Approvals                6467       SECTION 6.6      Tax Returns and Payments                                   6467       SECTION 6.7      Intellectual Property Matters                              6467       SECTION 6.8      Environmental Matters                                      6568       SECTION 6.9      Employee Benefit Matters                                   6669       SECTION 6.10     Margin Stock                                               6770                                            ii 103755581_3 119311063_5 

 

                                TABLE OF CONTENTS                                       (continued)                                                                                  Page        SECTION 6.11     Government Regulation                                      6770       SECTION 6.12     Material Contracts                                         6770       SECTION 6.13     Employee Relations                                         6770       SECTION 6.14     Financial Statements                                       6770       SECTION 6.15     No Material Adverse Change                                 6871       SECTION 6.16     Solvency                                                   6871       SECTION 6.17     Title to Properties                                        6871       SECTION 6.18     Litigation                                                 6871       SECTION 6.19     Anti-Corruption Laws and Sanctions                         6871       SECTION 6.20     Absence of Defaults                                        6871       SECTION 6.21     Disclosure                                                 6871 ARTICLE VII AFFIRMATIVE COVENANTS                                                 6972       SECTION 7.1      Financial Statements and Budgets                           6972       SECTION 7.2      Certificates; Other Reports                                7073       SECTION 7.3      Notice of Other Matters                                    7174       SECTION 7.4      Preservation of Corporate Existence and Related Matters    7275       SECTION 7.5      Maintenance of Property and Licenses                       7275       SECTION 7.6      Insurance                                                  7275       SECTION 7.7      Accounting Methods and Financial Records                   7375       SECTION 7.8      Payment of Taxes                                           7376       SECTION 7.9      Compliance with Laws and Approvals                         7376       SECTION 7.10     Environmental Laws                                         7376       SECTION 7.11     Compliance with ERISA                                      7376       SECTION 7.12     Compliance with Material Contracts                         7476       SECTION 7.13     Visits and Inspections                                     7477       SECTION 7.14     Additional Subsidiaries                                    7477       SECTION 7.15     Use of Proceeds                                            7578       SECTION 7.16     Further Assurances                                         7678       SECTION 7.17     Anti-Corruption Laws and Sanctions76; Beneficial Ownership Regulation; Anti-Money Laund ARTICLE VIII NEGATIVE COVENANTS                                                   7679       SECTION 8.1      Indebtedness                                               7679       SECTION 8.2      Liens                                                      7881                                            iii 103755581_3 119311063_5 

 

                                TABLE OF CONTENTS                                       (continued)                                                                                  Page        SECTION 8.3      Investments                                                7983       SECTION 8.4      Fundamental Changes                                        8185       SECTION 8.5      Asset Dispositions                                         8285       SECTION 8.6      Restricted Payments                                        8387       SECTION 8.7      Transactions with Affiliates                               8487       SECTION 8.8      Accounting Changes; Organizational Documents               8488       SECTION 8.9      Payments and Modifications of SubordinatedJunior Indebtedness 8488       SECTION 8.10     No Further Negative Pledges; Restrictive Agreements        8588       SECTION 8.11     Nature of Business                                         8589       SECTION 8.12     Capital Expenditures                             86[Reserved] 89       SECTION 8.13     Financial Covenants                                        8689       SECTION 8.14     Disposal of Subsidiary Interests                           8690 ARTICLE IX   DEFAULT AND REMEDIES                                                 8690       SECTION 9.1      Events of Default                                          8690       SECTION 9.2      Remedies                                                   8892       SECTION 9.3      Rights and Remedies Cumulative; Non-Waiver; etc            8993       SECTION 9.4      Crediting of Payments and Proceeds                         8993       SECTION 9.5      Administrative Agent May File Proofs of Claim              9094       SECTION 9.6      Credit Bidding                                             9194 ARTICLE X    THE ADMINISTRATIVE AGENT                                             9195       SECTION 10.1     Appointment and Authority                                  9195       SECTION 10.2     Rights as a Lender                                         9295       SECTION 10.3     Exculpatory Provisions                                     9296       SECTION 10.4     Reliance by the Administrative Agent                       9397       SECTION 10.5     Delegation of Duties                                       9397       SECTION 10.6     Resignation of Administrative Agent                        9397       SECTION 10.7     Non-Reliance on Administrative Agent and Other Lenders     9598       SECTION 10.8     No Other Duties, etc                                       9598       SECTION 10.9     Collateral and Guaranty Matters                            9599       SECTION 10.10    Secured Hedge Agreements and Secured Cash Management                        Agreements                                                96100 ARTICLE XI   MISCELLANEOUS                                                       96100       SECTION 11.1     Notices                                                   96100                                            iv 103755581_3 119311063_5 

 

                                TABLE OF CONTENTS                                       (continued)                                                                                  Page        SECTION 11.2     Amendments, Waivers and Consents                          99102       SECTION 11.3     Expenses; Indemnity                                      101104       SECTION 11.4     Right of Setoff                                          103106       SECTION 11.5     Governing Law; Jurisdiction, Etc                         103107       SECTION 11.6     Waiver of Jury Trial                                     104108       SECTION 11.7     Reversal of Payments                                     104108       SECTION 11.8     Injunctive Relief                                        105108       SECTION 11.9     Successors and Assigns; Participations                   105108       SECTION 11.10    Treatment of Certain Information; Confidentiality        108112       SECTION 11.11    Performance of Duties                                    109113       SECTION 11.12    All Powers Coupled with Interest                         109113       SECTION 11.13    Survival                                                 110113       SECTION 11.14    Titles and Captions                                      110114       SECTION 11.15    Severability of Provisions                               110114       SECTION 11.16    Counterparts; Integration; Effectiveness; Electronic Execution 110114       SECTION 11.17    Term of Agreement                                        111114       SECTION 11.18    USA PATRIOT Act 111; Anti-Money Laundering Laws             114       SECTION 11.19    Independent Effect of Covenants                          111115       SECTION 11.20    No Advisory or Fiduciary Responsibility                  111115       SECTION 11.21    Borrower Agent                                 112[Reserved] 116       SECTION 11.22    Nature of Obligations                                    112116       SECTION 11.23    Judgment Currency                                        112116       SECTION 11.24    Inconsistencies with Other Documents                     113116       SECTION 11.25    Amendment and Restatement; No Novation                   113116       SECTION 11.26    Acknowledgement and Consent to Bail-In of EEA Financial                        Institutions                                             113116       SECTION 11.27    Certain ERISA Matters                                    114117       SECTION 11.28    Acknowledgement Regarding Any Supported QFCs                118                                               v 103755581_3 119311063_5 

 

   EXHIBITS Exhibit A-1        -  Form of US Revolving Credit Note Exhibit A-2        -  Form of Cayman Revolving CreditSwingline Note Exhibit A-3        -  Form of SwinglineTerm Loan Note Exhibit A-4           -  Form of Term Loan Note Exhibit B          -  Form of Notice of Borrowing Exhibit C          -  Form of Notice of Account Designation Exhibit D          -  Form of Notice of Prepayment Exhibit E          -  Form of Notice of Conversion/Continuation Exhibit F          -  Form of Officer’s Compliance Certificate Exhibit G          -  Form of Assignment and Assumption Exhibit H-1        -  Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Lenders) Exhibit H-2        -  Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Participants) Exhibit H-3        -  Form of U.S. Tax Compliance Certificate (Foreign Participant Partnerships) Exhibit H-4        -  Form of U.S. Tax Compliance Certificate (Foreign Lender Partnerships)  SCHEDULES Schedule 1.1       -  Existing Letters of Credit Schedule 1.1(a)    -  InitialThird Amendment Term Loans, Revolving Credit Commitments and                       Revolving Credit Commitment Percentages Schedule 6.1       -  Jurisdictions of Organization and Qualification Schedule 6.2       -  Subsidiaries and Capitalization Schedule 6.6       -  Tax Matters Schedule 6.12      -  Material Contracts Schedule 6.13      -  Labor and Collective Bargaining Agreements Schedule 6.17      -  Real Property Schedule 6.18      -  Litigation Schedule 8.1       -  Existing Indebtedness Schedule 8.2       -  Existing Liens Schedule 8.3       -  Existing Loans, Advances and Investments Schedule 8.7       -  Transactions with Affiliates                                              vi 103755581_3 119311063_5 

 

         This SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of January 17, 2018, is by and between UBIQUITI NETWORKS, INC., a Delaware corporation (the “Parent Borrower”)  and  UBIQUITI  INTERNATIONAL  HOLDING  COMPANY  LIMITED, an exempted  company  incorporated under the laws of the Cayman Islands (the “Cayman Borrower”), as Borrowers, , formerly  known as  Ubiquiti  Networks, Inc., as  Borrower (the “Borrower”), the  lenders  who  are  party  to  this Agreement and the lenders who may become a party to this Agreement pursuant to the terms hereof, as Lenders, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Lenders.                                 STATEMENT OF PURPOSE        The  BorrowersBorrower,  Ubiquiti  International  Holding  Company  Limited, an exempted  company  incorporated  under the laws of the Cayman  Islands (“Ubiquiti Cayman”),  the  lenders  party thereto  and  the  Administrative  Agent  have  entered  into  that  certain  Amended  and  Restated  Credit Agreement, dated as of March 3, 2015 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”).        The Borrowers haveBorrower has requested, and subject to the terms and conditions set forth in this Agreement, the Administrative Agent and the Lenders have agreed to amend and restate the Existing Credit Agreement and extend certain credit facilities to the BorrowersBorrower.        NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, such parties hereby agree as follows:                                        ARTICLE I                                      DEFINITIONS         SECTION 1.1     Definitions.  The following terms when used in this Agreement shall have the meanings assigned to them below:         “Administrative Agent” means Wells Fargo, in its capacity as Administrative Agent hereunder, and any successor thereto appointed pursuant to Section 10.6.        “Administrative  Agent’s  Office”  means  the  office  of  the  Administrative  Agent  specified  in  or determined in accordance with the provisions of Section 11.1(c).        “Administrative Questionnaire” means an administrative questionnaire in a form supplied by the Administrative Agent.         “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.         “Agent Parties” has the meaning assigned thereto in Section 11.1(e).        “Agreement” means this Credit Agreement.        “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the BorrowersBorrower or their  respectiveits  Subsidiaries  from  time  to  time  concerning  or  relating  to bribery or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.   103755581_3119311063_5 

 

         “Anti-Money  Laundering Laws”  means any and all  laws,  statutes,  regulations or  obligatory  government orders, decrees, ordinances or rules applicable to the Borrower or its Subsidiaries related to  terrorism financing, money laundering, any predicate crime to money laundering or any financial record  keeping,  including any  applicable  provision of the  PATRIOT Act and The  Currency and  Foreign  Transactions  Reporting Act  (also  known as the “Bank  Secrecy Act,” 31  U.S.C. §§  5311-5330 and 12  U.S.C. §§ 1818(s), 1820(b) and 1951-1959).        “Applicable Law”  means  all  applicable  provisions  of  constitutions,  laws,  statutes,  ordinances, rules,  treaties,  regulations,  permits,  licenses,  approvals,  interpretations  and  orders  of  courts  or Governmental Authorities and all orders and decrees of all courts and arbitrators.         “Applicable Margin” means the corresponding percentages per annum as set forth below based on the Consolidated Total Leverage Ratio:        Pricing                                Commitment                Consolidated Total Leverage Ratio           LIBOR +    Base Rate +        Level                                    Fee          I     Less than 1.00 to 1.00          0.20%         1.50%       0.50%          II    Greater than or equal to 1.00 to 0.25%        1.75%       0.75%                1.00, but less than 1.50 to 1.00         III    Greater than or equal to 1.50 to 0.30%        2.00%       1.00%                1.00, but less than 2.00 to 1.00         IV     Greater than or equal to 2.00 to 1.00 0.35%   2.25%       1.25%  The  Applicable  Margin  shall  be  determined  and  adjusted  quarterly  on  the  date  five  (5)  Business  Days after  the  day  on  which  the Parent Borrower  provides  an  Officer’s  Compliance  Certificate  pursuant to Section 7.2(a)  for  the  most  recently  ended  fiscal  quarter  of  the Parent Borrower  (each  such  date,  a “Calculation Date”); provided that (a) the Applicable Margin shall be based on Pricing Level III until the first  Calculation  Date  occurring  after  the  Closing  Date  and,  thereafter  the  Pricing  Level  shall  be determined by reference to the Consolidated Total Leverage Ratio as of the last day of the most recently ended  fiscal  quarter  of  the Parent Borrower  preceding  the  applicable  Calculation  Date,  and  (b)  if the Borrower Agent fails  to  provide  an  Officer’s  Compliance  Certificate  when  due  as  required  by  Section  7.2(a)  for  the  most  recently  ended  fiscal  quarter  of  the Parent Borrower  preceding  the  applicable Calculation Date, the Applicable Margin from the date on which such Officer’s Compliance Certificate was required to have been delivered shall be based on Pricing Level IV until such time as such Officer’s Compliance Certificate is delivered, at which time the Pricing Level shall be determined by reference to the Consolidated Total Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Parent Borrower preceding such Calculation Date.  The applicable Pricing Level shall be effective from one  Calculation  Date  until  the  next  Calculation  Date.   Any  adjustment  in  the  Pricing  Level  shall  be applicable to all Extensions of Credit then existing or subsequently made or issued.  Notwithstanding  the  foregoing,  in  the  event  that  any  financial statement  or  Officer’s  Compliance Certificate delivered pursuant to Section 7.1 or 7.2(a) is shown to be inaccurate (regardless of whether (i) this Agreement is in effect, (ii) any Revolving Credit Commitments are in effect, or (iii) any Extension of Credit  is  outstanding  when  such  inaccuracy  is  discovered  or  such  financial  statement  or  Officer’s Compliance  Certificate  was  delivered),  and  such  inaccuracy,  if corrected,  would  have  led  to  the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (A) the Borrower Agent shall promptly deliver to the Administrative Agent a corrected Officer’s Compliance Certificate for such Applicable Period, (B) the Applicable Margin for such Applicable Period shall be determined as if the Consolidated Total Leverage Ratio in the corrected Officer’s Compliance Certificate were applicable for such Applicable Period, and (C) eachthe  Borrower  shall,  within  two  (2)  Business  Days  of  demand  thereof  by  the  Administrative                                              2 103755581_3 119311063_5 

 

   Agent, pay to the Administrative Agent the accrued additional interest and fees owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by the Administrative Agent in accordance with Section 4.4.  Nothing in this paragraph shall limit the rights of the Administrative Agent and Lenders with respect to Sections 4.1(b) and 9.2 nor any of their other rights under  this  Agreement  or  any  other  Loan  Document.  EachThe  Borrower’s  obligations  under  this paragraph shall survive the termination of the Revolving Credit Commitments and the repayment of all other Obligations hereunder.         “Arrangers” means Wells Fargo Securities, LLC, HSBC Bank USA, National Association, PNC  Bank, National Association and Fifth Third Bank, each in its capacity as a joint lead arranger and joint bookrunner.         “Asset Disposition” means the sale, transfer, license, lease or other disposition of any Property (including any division, merger or disposition of Equity Interests and any sale-leaseback) by any Credit Party  or  any  Subsidiary  thereof,  and  any  issuance  of  Equity  Interests  by  any  Subsidiary  of  the Parent  Borrower to any Person that is not a Credit Party or any Subsidiary thereof.         “Assignment and  Assumption”  means  an  assignment  and  assumption  entered  into  by  a  Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.9), and accepted by the Administrative Agent, in substantially the form attached as Exhibit G or any other form approved by the Administrative Agent.         “Attributable  Indebtedness”  means,  on  any  date  of  determination,  (a)  in  respect  of  any capital  leaseCapital  Lease  Obligations  of  any  Person,  the  capitalized  amount  thereof  that  would  appear  on  a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease, the capitalized amount or principal amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital leaseCapital Lease Obligations.        “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.        “Base Rate” means, at any time, the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) LIBOR Rate for an Interest Period of one month plus 1%; each change in the Base Rate shall take effect simultaneously with the corresponding change or changes in the Prime Rate, the Federal Funds Rate or LIBOR (provided that clause (c) shall not be applicable during any period in which LIBOR is unavailable or unascertainable).         “Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate as provided in Section 4.1(a).         “Benchmark  Replacement” means the sum of: (a) the  alternate  benchmark rate (which may  include Term SOFR) that has been selected by the Administrative Agent and the 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 LIBOR for U.S.                                               3 103755581_3 119311063_5 

 

   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 will be deemed to be zero for the purposes of this Agreement.        “Benchmark Replacement Adjustment” means, with respect to any replacement of LIBOR 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 the Administrative Agent and the Borrower giving due consideration to  (a) any  selection or  recommendation of a  spread  adjustment, or  method for  calculating or determining  such  spread  adjustment, for the  replacement of LIBOR  with the  applicable  Unadjusted  Benchmark  Replacement by the  Relevant  Governmental  Body or (b) 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 LIBOR with the applicable Unadjusted Benchmark Replacement for  U.S. 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 the  Administrative  Agent  decides may be  appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the  administration  thereof by the  Administrative  Agent in a  manner  substantially  consistent  with market  practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is  not  administratively  feasible or if the  Administrative  Agent  determines that no market  practice for the  administration of the  Benchmark  Replacement  exists, in such other  manner of  administration as the  Administrative  Agent  decides is  reasonably  necessary in  connection  with the  administration of this  Agreement).         “Benchmark Replacement Date” means the earlier to occur of the following events with respect  to LIBOR:        (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 LIBOR permanently or indefinitely ceases to provide LIBOR; and         (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 LIBOR:        (a)    a public statement or publication of information by or on behalf of the administrator of  LIBOR announcing that such administrator has ceased or will cease to provide LIBOR, permanently or  indefinitely;  provided that, at the  time of such  statement or  publication, there is no  successor  administrator that will continue to provide LIBOR;         (b)    a  public  statement or  publication of  information by the  regulatory  supervisor for the  administrator of LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over  the administrator for LIBOR, a resolution authority with jurisdiction over the administrator for LIBOR or  a  court or an  entity  with  similar  insolvency or  resolution  authority  over the  administrator for LIBOR,  which states that the administrator of LIBOR has ceased or will cease to provide LIBOR permanently or                                               4 103755581_3 119311063_5 

 

   indefinitely;  provided that, at the  time of such  statement or  publication, there is no  successor  administrator that will continue to provide LIBOR; or         (c)    a  public  statement or  publication of  information by the  regulatory  supervisor for the  administrator of LIBOR announcing that LIBOR 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 the  Administrative  Agent or the  Required  Lenders, as  applicable, by  notice to the  Borrower, the  Administrative 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 LIBOR and solely to the extent that LIBOR  has  not  been  replaced  with a  Benchmark  Replacement, the period (a)  beginning at the  time that such  Benchmark  Replacement Date has  occurred if, at such  time, no  Benchmark  Replacement has  replaced  LIBOR for all  purposes  hereunder in  accordance with Section 4.8(c) and (b) ending at the time that a  Benchmark Replacement has replaced LIBOR for all purposes hereunder pursuant to Section 4.8(c).        “Beneficial  Ownership  Certification”  means  a  certification  regarding  beneficial  ownership  as required by the Beneficial Ownership Regulation.        “Beneficial Ownership Regulation” means 31 CFR § 1010.230.        “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.         “Borrower Agent” has the meaning assigned thereto in Section 11.21.the introductory paragraph  to this Agreement.        “Borrower Materials” has the meaning assigned thereto in Section 7.2.        “Borrowers” means, collectively, the Parent Borrower and the Cayman Borrower.        “Business Day” means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or legal holiday on which banks in San Francisco, California, Charlotte, North  Carolina, the Cayman  Islands  and  New  York,  New  York,  are  open  for  the  conduct  of  their commercial banking business and (b) with respect to all notices and determinations in connection with, and payments of principal and interest on, any LIBOR Rate Loan, or any Base Rate Loan as to which the interest rate is determined by reference to LIBOR, any day that is a Business Day described in clause (a) and that is also a London Banking Day.         “Calculation Date” has the meaning assigned thereto in the definition of Applicable Margin.         “Capital  Expenditures”  means,  with  respect  to  the Parent Borrower  and  its  Subsidiaries  on  a Consolidated basis, for any period, (a) the additions to property, plant and equipment and other capital expenditures  that  are  (or  would  be)  set forth in a consolidatedConsolidated statement of cash flows of                                             5 103755581_3 119311063_5 

 

   such Person for such period prepared in accordance with GAAP and (b) Capital Lease Obligations during such period, but excluding expenditures for the restoration, repair or replacement of any fixed or capital asset which was destroyed or damaged, in whole or in part, to the extent financed by the proceeds of an insurance policy maintained by such Person.         “Capital  Lease  Obligations”  of  any  Person means, subject to Section 1.3(b), the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases or finance leases on a balance sheet of such Person under GAAP, and the  amount  of  such  obligations  shall  be  the  capitalized  amount thereof  determined  in  accordance  with GAAP.         “Cash Collateralize” means, to pledge and deposit with, or deliver to the Administrative Agent, or directly to the Issuing Lender, for the benefit of one or more of the Issuing Lender, the Swingline Lender or the Lenders, as collateral for L/C Obligations or obligations of the Lenders to fund participations in respect of L/C Obligations or Swingline Loans, cash or deposit account balances or, if the Administrative Agent and the applicable Issuing Lender and the Swingline Lender shall agree, in their sole discretion, other  credit  support,  in  each  case  pursuant  to  documentation  in  form  and  substance  satisfactory  to  the Administrative  Agent,  the  Issuing  Lender  and  the  Swingline  Lender,  as  applicable.   “Cash  Collateral” shall  have  a  meaning  which  correlates  to  the  foregoing  and  shall  include  the  proceeds  of  such  cash collateral and other credit support.         “Cash  Equivalents”  means,  collectively,  (a)  marketable  direct  obligations  issued or unconditionally  guaranteed  by  the  United  States  or  any  agency  thereof  maturing  within  one  hundred twenty (120) days from the date of acquisition thereof, (b) commercial paper maturing no more than one hundred  twenty  (120)  days  from  the  date  of  creation  thereof  and  currently  having  the  highest  rating obtainable from either Standard & Poor’s Financial Services LLC or Moody’s Investors Service, Inc., (c) certificates of deposit maturing no more than one hundred twenty (120) days from the date of creation thereof  issued  by  commercial  banks  incorporated  under  the  laws of  the  United  States,  each  having combined capital, surplus and undivided profits of not less than $500,000,000 and having a rating of “A” or better by a nationally recognized rating agency; provided that the aggregate amount invested in such certificates of deposit shall not at any time exceed $5,000,000 for any one such certificate of deposit and $10,000,000 for any one such bank, (d) time deposits maturing no more than thirty (30) days from the date of creation thereof with commercial banks or savings banks or savings and loan associations each having membership either in the FDIC or the deposits of which are insured by the FDIC and in amounts not  exceeding  the  maximum  amounts  of  insurance  thereunder,  (e) solely  in  the  case  of  any  Foreign Subsidiary, investments, instruments or securities equivalent to those referred to in clauses (a) through (d) of  this  definition  denominated  in  any  foreign  currency  that  is the  local  currency  of  such  Foreign Subsidiary  or  (f)  any  other  investments  (whether  short  term  or long  term)  approved  by  the  Parent Borrower’s  board  of  directors  (or  a  committee  thereof)  as  part of  its  cash  investment  policy  with  the consent (such consent not to be unreasonably withheld) of the Administrative Agent.         “Cash  Management  Agreement”  means  any  agreement  to  provide  cash  management  services, including treasury, depository, overdraft, credit or debit card (including non-card electronic payables and purchasing cards), electronic funds transfer and other cash management arrangements.         “Cash  Management Bank”  means  any  Person  that,  (a)  at  the  time  it  enters  into  a  Cash Management  Agreement  with  a  Credit  Party or any of  its  Subsidiaries,  is  a  Lender,  an  Affiliate  of  a Lender, the Administrative Agent or an Affiliate of the Administrative Agent, or (b) at the time it (or its Affiliate) becomes a Lender or the Administrative Agent (including on the Closing Date), is a party to a                                              6 103755581_3 119311063_5 

 

   Cash Management Agreement with a Credit Party or any of its Subsidiaries, in each case in its capacity as a party to such Cash Management Agreement.         “Cayman  Borrower” has the  meaning  assigned thereto in the  introductory  paragraph to this  Agreement.        “Cayman Obligations” means, in each case, whether now in existence or hereafter arising: (a) the  principal of and  interest on  (including  interest  accruing after the  filing of any  bankruptcy or  similar  petition) the Loans made to the Cayman Borrower under the Credit Facility and (b) all other fees and  commissions  (including  attorneys’  fees),  charges,  indebtedness,  loans,  liabilities,  financial  accommodations, obligations, covenants and duties owing by the Foreign Credit Parties and each of their  respective Subsidiaries to the Lenders, the Issuing Lender or the Administrative Agent, in each case under  any Loan Document, with respect to any Loan or Letter of Credit of every kind, nature and description,  direct or  indirect,  absolute or  contingent,  due or to  become  due,  contractual or  tortious,  liquidated or  unliquidated, and whether or not evidenced by any note and including interest and fees that accrue after  the commencement by or against any Foreign Credit Party or any Subsidiary thereof of any proceeding  under any Debtor  Relief  Laws, naming such  Person as the debtor in such  proceeding,  regardless of  whether such interest and fees are allowed claims in such proceeding.        “Cayman  Subsidiary  Guaranty”  means the Third  Amended and  Restated Cayman  Subsidiary  Guaranty  Agreement  dated as of the First  Amendment  Effective  Date,  executed by  Ubiquiti Cayman,  Ubiquiti Global, and certain other Subsidiaries of the Cayman Borrower from time to time party thereto in  favor of the Administrative Agent, for the ratable benefit of the Secured Parties.        “Change in Control” means the occurrence of one or more of the following events or series of events:         (a)   the Controlling Shareholder shall cease to own, beneficially and of record, either directly or indirectly, Equity Interests in the Parent Borrower representing more than 50% of the combined voting power  of  all  of  Equity  Interests  entitled  to  vote  for  members  of  the  board  of  directors  or  equivalent governing body of the Parent Borrower on a fully-diluted basis (and taking into account all such Equity Interests  that  the  Controlling  Shareholder  has  the  right  to  acquire,  whether  such  right  is  exercisable immediately or only after the passage of time); or        (b)    the Parent Borrower  shall  fail  to  control  and  directly  own  100%  of  each  class  of outstanding Equity Interests of the Cayman Borrower; or(c) the Cayman  Borrower shall fail to  control and  directly own  100% of  each  class of  outstanding  Equity  Interests of  Ubiquiti  Hong  Kong,  Ubiquiti Cayman and Ubiquiti Global.Ubiquiti Cayman.        “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental  Authority  or  (c)  the  making  or  issuance  of  any  request,  rule,  guideline  or  directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein 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 or in  implementation thereof and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International  Settlements,  the  Basel  Committee  on  Banking  Supervision  (or  any  successor  or  similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, implemented or issued.                                              7 103755581_3 119311063_5 

 

         “Closing Date” means the date of this Agreement.        “Code”  means  the  Internal  Revenue  Code  of  1986,  and  the  rules  and  regulations  promulgated thereunder.        “Collateral” means the collateral security for the Secured Obligations pledged or granted pursuant to the Security Documents.        “Collateral  Agreement” means the  Second  Amended and  Restated US  Collateral  Agreement  dated as of the Closing Date executed by the Credit Parties in favor of the Administrative Agent, for the  ratable benefit of the Secured Parties.        “Commitment Fee” has the meaning assigned thereto in Section 4.3(a).        “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.).         “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.         “Consolidated”  means,  when  used  with  reference to  financial  statements  or  financial  statement items  of  any  Person,  such  statements  or  items  on  a  consolidated  basis  in  accordance  with  applicable principles of consolidation under GAAP.        “Consolidated EBITDA”  means,  for  any  period,  the  sum  of  the  following  determined  on a Consolidated basis, without duplication, for the Parent Borrower and its Subsidiaries in accordance with GAAP:  (a)  Consolidated  Net  Income  for  such  period  plus  (b)  the  sum  of  the  following,  without duplication, to the extent deducted in determining Consolidated Net Income for such period: (i) income and franchise taxes, (ii) Consolidated Interest Expense, (iii) amortization, depreciation and other non-cash charges (except to the extent that such non-cash charges are reserved for cash charges to be taken in the future), (iv) extraordinary losses (excluding extraordinary losses from discontinued operations) and (v) non-cash compensation charges, including any such charges arising from stock options, restricted stock grants or other equity-incentive programs less (c) the sum of the following, without duplication, to the extent  included  in  determining  Consolidated  Net  Income  for  such period: (i) interest income, (ii) any extraordinary gains and (iii) non-cash gains or non-cash items increasing Consolidated Net Income.  For purposes of this Agreement, Consolidated EBITDA shall be adjusted on a Pro Forma Basis.        “Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a)  Consolidated EBITDA for the period of four (4)  consecutive  fiscal  quarters  ending on or immediately  prior to such date to (b)  Consolidated  Interest  Expense for the period of  four (4)  consecutive  fiscal  quarters ending on or immediately prior to such date.        “Consolidated Interest Expense” means, for any period, the sum of the following determined on a Consolidated basis, without duplication, for the Parent Borrower and its Subsidiaries in accordance with GAAP,  interest  expense  (including,  without  limitation,  interest  expense  attributable  to  Capital  Lease Obligations and all net payment obligations pursuant to Hedge Agreements) for such period.         “Consolidated Net  Income”  means,  for  any  period,  the  net  income  (or  loss)  of  the Parent  Borrower and its Subsidiaries for such period, determined on a Consolidated basis, without duplication, in accordance with GAAP; provided, that in calculating Consolidated Net Income of the Parent Borrower and  its  Subsidiaries  for  any  period,  there  shall  be  excluded  (a)  the  net  income  (or  loss) of any Person (other than a Subsidiary which shall be subject to clause (c) below), in which the Parent Borrower or any of its Subsidiaries has a joint interest with a third party, except to the extent such net income is actually                                             8 103755581_3 119311063_5 

 

   paid in cash to the Parent Borrower or any of its Subsidiaries by dividend or other distribution during such period, (b) the net income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of  the Parent Borrower  or  any  of  its  Subsidiaries  or  is  merged  into  or  consolidated  with  the Parent  Borrower or any of its Subsidiaries or that Person’s assets are acquired by the Parent Borrower or any of its Subsidiaries except to the extent included pursuant to the foregoing clause (a), (c) the net income (if positive),  of  any  Subsidiary  to  the  extent  that  the  declaration  or  payment  of  dividends  or  similar distributions by such Subsidiary to the Parent Borrower or any of its Subsidiaries of such net income is not at the time permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary and (d) any gain or loss from Asset Dispositions during such period.         “Consolidated  Secured  Indebtedness”  means, as of any date of  determination, the  aggregate  principal amount of all Consolidated Total Indebtedness that is secured by a Lien on any assets of the  Borrower or any of its Subsidiaries.        “Consolidated Secured Leverage Ratio” means, as of any date of determination, the ratio of (a)  the Consolidated Secured Indebtedness on such date to (b) Consolidated EBITDA for the period of four  (4) consecutive fiscal quarters ending on or immediately prior to such date.        “Consolidated Total  Indebtedness”  means,  as  of  any  date  of  determination  with  respect  to  the Parent Borrower  and  its  Subsidiaries  on  a  Consolidated  basis  without  duplication,  the  sum  of  all Indebtedness  of  the Parent Borrower  and  its  Subsidiaries  (excluding  all  letters  of  credit that  are  fully cash-collateralized; provided that the deduction for all such cash-collateralized letters of credit shall not exceed $10,000,000 in the aggregate at any time).        “Consolidated Total  Leverage  Ratio”  means,  as  of  any  date  of  determination,  the  ratio  of  (a) Consolidated  Total  Indebtedness  on  such  date  to  (b)  Consolidated  EBITDA  for  the  period  of  four  (4) consecutive fiscal quarters ending on or immediately prior to such date.        “Continuing Directors” means the directors of the Parent Borrower on the Closing Date and each  other director of the Parent Borrower, if, in each case, such other director’s nomination for election to the  board of directors (or equivalent governing body) of the Parent Borrower is recommended by at least 51%  of the then Continuing Directors.        “Control”  means  the  possession,  directly  or  indirectly,  of  the  power  to  direct  or  cause  the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.        “Controlling Shareholder” means, collectively, Robert J. Pera, his estate, spouse, siblings, heirs and lineal descendants, any trust for the benefit of the foregoing and any successor-in-interest to any of the foregoing.        “Credit Facility” means, collectively, the Revolving Credit Facility, the Term Loan Facility, the Swingline Facility and the L/C Facility.         “Credit  Parties”  means,  collectively,  the US Credit  PartiesBorrower  and  the Foreign Credit  PartiesGuarantors.        “Debt Issuance” means the issuance of any Indebtedness for borrowed money by any Credit Party or any of its Subsidiaries.                                              9 103755581_3 119311063_5 

 

         “Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation,  conservatorship,  bankruptcy,  assignment  for  the  benefit  of  creditors,  moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect (including, without limitation, Part V of the  Companies Law  (Revised) of the Cayman  Islands and the  Companies  Winding Up Rules  2008 (as  amended) of the Cayman Islands).        “Default” means any of the events specified in Section 9.1 which with the passage of time, the giving of notice or any other condition, would constitute an Event of Default.        “Defaulting Lender” means, subject to Section 4.14(b), any Lender that (a) has failed to (i) fund all or any portion of the Revolving Credit Loans, any Term Loan, participations in L/C Obligations or participations in Swingline Loans required to be funded by it hereunder within two (2) Business Days of the date such Loans or participations were required to be funded hereunder unless such Lender notifies the  Administrative  Agent  and  the  Borrower Agent 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, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuing Lender, the Swingline Lender or any other  Lender  any  other  amount  required  to  be  paid  by  it  hereunder  (including  in  respect  of  its participation in Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due, (b)  has  notified  the  Borrower  Agent,  the  Administrative  Agent,  the  Issuing  Lender  or  the  Swingline Lender 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, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower Agent, to confirm in writing  to  the  Administrative  Agent  and  the  Borrower  Agent  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 the Administrative Agent and the Borrower  Agent),  or  (d)  has,  or  has  a  direct  or  indirect  parent  company  that has, (i) become the subject of a proceeding  under  any  Debtor  Relief  Law,  (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  FDIC  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 the Administrative 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 (subject to Section 4.14(b)) upon delivery of written notice of such determination to the Borrower Agent, the Issuing Lender, the Swingline Lender and each Lender.         “Disqualified Equity Interests” means any Equity Interests that, by their terms (or by the terms of any security or other Equity Interest into which they are convertible or for which they are exchangeable) or upon the happening of any event or condition, (a)  mature 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                                            10 103755581_3 119311063_5 

 

   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  Revolving  Credit Commitments),  (b)  are  redeemable  at  the  option  of  the  holder  thereof  (other  than  solely  for  Qualified Equity Interests) (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  Revolving  Credit  Commitments),  in  whole  or  in  part,  (c) provide  for  the  scheduled  payment  of dividends  in  cash  (other  than  the  scheduled  payment  of  dividends  on  common  stock  following  the declaration of such dividends) 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  91  days  after  the  latest  Revolving  Credit  Maturity  Date  or  Term  Loan  Maturity  Date,  as applicable, at such time; provided that if such Equity Interests are issued pursuant to a plan for the benefit of the Parent Borrower or its Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by  the Parent Borrower  or  its  Subsidiaries  in  order  to  satisfy  applicable  statutory  or  regulatory obligations.         “Dollars”  or  “$”  means,  unless  otherwise  qualified,  dollars  in  lawful  currency  of  the  United States.         “Domestic  Subsidiary”  means  any  Subsidiary  organized  under  the  laws  of  any  political subdivision of the United States.        “Early Opt-in Election” means the occurrence of:         (a)    (i) a  determination by the  Administrative  Agent or  (ii) a  notification by the  Required  Lenders to the  Administrative  Agent  (with a  copy to the  Borrower) that the  Required  Lenders have  determined that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that  include language similar to that contained in Section 4.8(c) are being executed or amended, as applicable,  to incorporate or adopt a new benchmark interest rate to replace LIBOR, and         (b)    (i) the election by the Administrative Agent or (ii) the election by the Required Lenders  to  declare that an Early Opt-in  Election has  occurred and the  provision, as  applicable, by the  Administrative  Agent of  written  notice of such  election to the  Borrower and the  Lenders or by the  Required Lenders of written notice of such election to the Administrative Agent.        “EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.         “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  credit  institution  or investment  firm  established  in  any  EEA Member Country.                                             11 103755581_3 119311063_5 

 

         “Eligible  Assignee”  means  any  Person  that  meets  the  requirements  to  be  an  assignee  under Section  11.9(b)(iii),  (v)  and  (vi)  (subject  to  such  consents,  if  any,  as  may  be  required  under  Section  11.9(b)(iii)).         “Employee  Benefit Plan”  means  (a)  any  employee  benefit  plan  within  the  meaning  of  Section 3(3) of ERISA that is maintained for employees of any Credit Party or any ERISA Affiliate or (b) any Pension  Plan  or  Multiemployer  Plan  that  has  at  any  time  within the  preceding  seven  (7)  years  been maintained,  funded  or  administered  for  the  employees  of  any  Credit  Party  or  any  current  or  former ERISA Affiliate.        “Environmental Claims” means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, accusations, allegations, notices of noncompliance or violation, investigations (other than internal reports prepared by any Person in the ordinary course of business and not in response to any third party action or request of any kind) or proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any approval given, under any such Environmental Law, including, without limitation, any and all claims by Governmental Authorities for enforcement, cleanup, removal, response, remedial or other actions or damages,  contribution,  indemnification,  cost  recovery,  compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to public health or the environment.         “Environmental Laws”  means  any  and  all  federal,  foreign,  state,  provincial  and  local  laws, statutes, ordinances, codes, rules, standards and regulations, permits, licenses, approvals, interpretations and  orders  of  courts  or  Governmental  Authorities,  relating  to  the  protection  of  public  health  or  the environment,  including,  but  not  limited  to,  requirements  pertaining  to  the  manufacture,  processing, distribution,  use,  treatment,  storage,  disposal,  transportation,  handling,  reporting,  licensing,  permitting, investigation or remediation of Hazardous Materials.        “Equity  Interests”  means  (a)  in  the  case  of  a  corporation,  capital  stock,  (b)  in  the  case  of  an association  or  business  entity,  any  and  all  shares,  interests, participations,  rights  or  other  equivalents (however designated) of capital stock, (c) in the case of an exempted company incorporated under the laws of the Cayman Islands, shares, (d) in the case of a partnership, partnership interests (whether general or limited), (e) in the case of a limited liability company, membership interests, (f) any other interest or participation  that  confers  on  a  Person  the  right  to  receive  a  share  of  the  profits  and  losses  of,  or distributions of assets of, the issuing Person and (g) any and all warrants, rights or options to purchase any of the foregoing.         “Equity Issuance” means (a) any issuance by any Credit Party or any Subsidiary thereof of shares of its Equity Interests to any Person that is not a Credit Party (including, without limitation, in connection with the exercise of options or warrants or the conversion of any debt securities to equity) and (b) any capital contribution from any Person that is not a Credit Party into any Credit Party or any Subsidiary thereof.   The  term  “Equity  Issuance”  shall  not  include  (A)  any Asset  Disposition  or  (B)  any  Debt Issuance.        “ERISA”  means  the  Employee  Retirement  Income  Security  Act  of  1974,  and  the  rules  and regulations thereunder.         “ERISA  Affiliate”  means  any  Person  who  together  with  any  Credit  Party  or  any  of  its Subsidiaries is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.                                              12 103755581_3 119311063_5 

 

         “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor thereto), as in effect from time to time.         “Eurodollar Reserve Percentage” means, for any day, the percentage which is in effect for such day  as  prescribed  by  the  Board  of  Governors  of  the  Federal  Reserve  System  (or  any  successor)  for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency  reserves)  in  respect  of  eurocurrency  liabilities  or  any  similar  category  of  liabilities  for  a member bank of the Federal Reserve System in New York City.        “Event of  Default”  means  any  of  the  events  specified  in  Section 9.1;  provided that any requirement for passage of time, giving of notice, or any other condition, has been satisfied.        “Exchange Act” means the Securities Exchange Act of 1934.         “Excluded Swap Obligation” means, with respect to any Credit Party, any Swap Obligation if, and to the extent that, all or a portion of the liability of such Credit Party for or the guarantee of such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Swap Obligation (or any liability or guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation  or  order  of  the  Commodity  Futures  Trading  Commission  (or  the  application  or  official interpretation  of  any  thereof)  by  virtue  of  such  Credit  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  liability  for  or  the  guarantee  of  such  Credit  Party or the grant of such security interest becomes  effective  with  respect  to  such  Swap  Obligation  (such  determination  being  made  after  giving effect  to  any  applicable  keepwell,  support  or  other  agreement  for  the  benefit  of  the  applicable  Credit Party).   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  guarantee  or  security  interest  is  or  becomes  illegal  for  the  reasons  identified  in  the  immediately preceding sentence of this definition.        “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, United States federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Revolving Credit Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Revolving Credit Commitment (other than pursuant to an assignment request by the BorrowersBorrower under Section 4.12(b)) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 4.11, amounts  with  respect  to  such  Taxes were  payable  either  to  such Lender's  assignor  immediately  before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable to such Recipient’s failure to comply with Section 4.11(g) and (d) any United States federal withholding Taxes imposed under FATCA.         “Existing Credit Agreement” has the meaning assigned thereto in the Statement of Purpose.         “Existing  Letters of Credit”  means  those  letters  of  credit  existing  on  the  Closing  Date  and identified on Schedule 1.1.                                              13 103755581_3 119311063_5 

 

         “Extensions of Credit” means, as to any Lender at any time, (a) an amount equal to the sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then outstanding, (iii) such Lender’s Revolving Credit Commitment Percentage of the Swingline Loans then outstanding and (iv) the aggregate principal amount of the Term Loans made by such Lender then outstanding or (b) the making of any Loan or participation in any Letter of Credit by such Lender, as the context requires.        “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply  with),  any  current  or  future  regulations  or  official  interpretations  thereof  and  any  agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection  with  the  implementation  of  Sections  1471  and  1474  of  the  Code,  and any applicable laws, regulations and guidance notes implementing the obligations imposed by Sections 1471 through 1474 of the Code into the domestic legislative framework of the Cayman Islands.         “FDIC” means the Federal Deposit Insurance Corporation.         “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that if such rate is not so published for any day which is a Business Day, such rate shall be determined based on the average of the quotation for such day on such transactions received by the Administrative Agent from  three  federal  funds  brokers  of  recognized  standing  selected  by  the  Administrative  Agent. Notwithstanding  the  foregoing,  if  the  Federal  Funds  Rate  shall be  less  than  zero,  such  rate  shall  be deemed to be zero for purposes of this Agreement.         “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.        “First Amendment Effective Date” means June 29, 2018.         “Fiscal Year” means the fiscal year of the Parent Borrower and its Subsidiaries ending on June 30.         “Foreign  Collateral  Agreement”  means the  Second  Amended and  Restated  Foreign  Collateral  Agreement dated as of the date hereof executed by the Foreign Credit Parties (other than Ubiquiti Hong  Kong) in favor of the Administrative Agent, for the ratable benefit of the Secured Parties.        “Foreign Credit Parties” means, collectively, (a) the Cayman Borrower, (b) Ubiquiti Hong Kong,  (c) Ubiquiti Cayman and (d) Ubiquiti Global.        “Foreign  Lender”  means (a)  with  respect to the  Parent  Borrower, a Lender that is not a U.S. Person, and (b) with respect to the Cayman Borrower, a Lender that is resident or organized under the  laws of a  jurisdiction other than that in which the Cayman  Borrower is a  resident for tax  purposes.“Foreign  Secured  Obligations”  means,  collectively, (a) the Cayman  Obligations and (b) all  existing or future payment and other obligations owing by any Foreign Credit Party under (i) any Secured  Hedge Agreement (other than any Excluded Swap Obligation) and (ii) any Secured Cash Management  Agreement.  For the avoidance of doubt, Foreign Secured Obligations shall exclude any Obligations of  the US Credit Parties.        “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.                                             14 103755581_3 119311063_5 

 

         “Foreign Subsidiary Holdco” means a Domestic Subsidiary whose assets substantially consist of Equity Interests in Foreign Subsidiaries.        “Fronting  Exposure”  means,  at  any  time  there  is  a  Defaulting  Lender,  (a)  with  respect  to  the Issuing Lender, such Defaulting Lender’s Revolving Credit Commitment Percentage of the outstanding L/C  Obligations  with  respect  to  Letters  of  Credit  issued  by  the  Issuing  Lender,  other  than  such  L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof and (b) with respect to the Swingline Lender,  such  Defaulting  Lender’s  Revolving  Credit  Commitment  Percentage  of  outstanding  Swingline Loans other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.        “GAAP”  means,  at  any  time,  generally  accepted  accounting  principles in  the  United  States  of America as in effect at such time, applied in accordance with the consistency requirements thereof.         “Governmental Approvals” means all authorizations, consents, approvals, permits, licenses and exemptions of, and all registrations and filings with or issued by, any Governmental Authorities.         “Governmental Authority” means the government of the United States or any other nation, or of any  political  subdivision  thereof,  whether  state  or  local,  and any  agency,  authority,  instrumentality, regulatory  body,  court,  central  bank  or  other  entity  exercising  executive,  legislative,  judicial,  taxing, regulatory  or  administrative  powers  or  functions  of  or  pertaining  to  government  (including  any supra-national bodies such as the European Union or the European Central Bank).         “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or  supply  funds  for  the  purchase  of)  any  security  for  the  payment  thereof,  (b)  to  purchase  or  lease property,  securities  or  services  for  the  purpose  of  assuring  the  owner  of  such  Indebtedness  or  other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, (d) as an applicant or issuer in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation or (e) for the purpose of assuming in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (whether in whole or in part).         “Guarantors” means, collectively, (a) the US Guarantors, (b) Ubiquiti Hong Kong, (c) Ubiquiti  Cayman, and (d) Ubiquiti Global. Ubiquiti Energy, LLC, a Delaware limited liability company, Ubiquiti  Labs, LLC, a Delaware limited liability company and each other direct and indirect Domestic Subsidiary  of the Borrower which become a party to the Subsidiary Guaranty Agreement pursuant to Section 7.14  (other than (a) Immaterial  Domestic  Subsidiaries, (b) a  direct or  indirect  Domestic  Subsidiary of a  Foreign Subsidiary or Foreign Subsidiary Holdco or (c) a Foreign Subsidiary Holdco).        “Guaranty  Agreements”  means  (a)  the  Ubiquiti  Hong  Kong  Guaranty, (b) the US  Subsidiary Guaranty  Agreement, (c) the Cayman  Subsidiary  Guaranty and  (db)  any  other  unconditional  guaranty agreement executed by any other Guarantor for the benefit of the Secured Parties.         “Hazardous  Materials”  means  all  pollutants,  contaminants  and  other  materials,  substances  and wastes which are hazardous, toxic, caustic, harmful or dangerous to human health or the environment,                                             15 103755581_3 119311063_5 

 

   including  petroleum  and  petroleum  products  and  byproducts,  radioactive  materials,  asbestos, polychlorinated biphenyls and all materials, substances and wastes which are classified or regulated as “hazardous,” “toxic” or similar descriptions under any Environmental Law.        “Hedge Agreement” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions,  forward  rate  transactions,  commodity  swaps,  commodity  options,  forward  commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward  bond  or  forward  bond  price  or  forward  bond  index transactions, interest rate options, forward foreign  exchange  transactions,  cap  transactions,  floor  transactions,  collar  transactions,  currency  swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement.         “Hedge Bank” means any Person that, (a) at the time it enters into a Hedge Agreement with a Credit Party or any of its Subsidiaries permitted under Article VIII, is a Lender, an Affiliate of a Lender, the Administrative Agent or an Affiliate of the Administrative Agent or (b) at the time it (or its Affiliate) becomes a Lender or the Administrative Agent (including on the Closing Date), is a party to a Hedge Agreement with a Credit Party or any of its Subsidiaries, in each case in its capacity as a party to such Hedge Agreement.         “Hedge  Termination Value”  means,  in  respect  of  any  one  or  more  Hedge  Agreements,  after taking  into  account  the  effect  of  any  legally  enforceable  netting  agreement  relating  to  such  Hedge Agreements,  (a)  for  any  date  on  or  after  the  date  such  Hedge  Agreements  have  been  closed  out  and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Hedge Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Hedge Agreements (which may include a Lender or any Affiliate of a Lender).         “Hong Kong” means the Hong Kong Special Administrative Region of the People’s Republic of  China.Immaterial  Domestic  Subsidiary”  means any Domestic  Subsidiary that (a)  together  with  its  Subsidiaries, (i) has  assets  representing no more than 2.5% of the  Consolidated total  assets of the  Borrower and its Domestic Subsidiaries or (ii) generates no more than 2.5% of the Consolidated revenues  of the Borrower and its Domestic Subsidiaries (excluding each direct or indirect Domestic Subsidiary of a  Foreign  Subsidiary and  each  Foreign  Subsidiary Holdco), in each case, as reflected in the most recent  financial  statements  delivered  pursuant to  Sections 7.1(a) or (b), as  applicable, and (b) has  been  designated as an “Immaterial Domestic  Subsidiary” by the  Borrower in the  manner  provided below;  provided that, (x) if,  upon the  delivery of the most  recent  financial  statements  delivered  pursuant to  Sections 7.1(a) or (b), as applicable, (A) the total assets of the Immaterial Domestic Subsidiaries, taken as  a whole, as of the last day of the Borrower’s most recently ended fiscal quarter shall be greater than 5% of  the Consolidated total assets of the Borrower and its Domestic Subsidiaries or (B) the total revenue of the  Immaterial  Domestic  Subsidiaries,  taken as a  whole, as of the end of the most  recently  ended  four  consecutive  fiscal  quarter period shall be  greater than 5% of the  Consolidated total  revenues of the  Borrower and  its  Domestic  Subsidiaries for such  period, then the  Borrower shall  designate  Immaterial  Domestic  Subsidiaries as  Guarantors and take such  actions as may be  necessary,  including  causing an  Immaterial Domestic Subsidiary to grant security interests pursuant to Section 7.14(a), until Immaterial  Domestic Subsidiaries comprise less than the percentages of Consolidated total assets or total revenue in                                              16 103755581_3 119311063_5 

 

   the  preceding  clauses (A) and (B), and (y)  notwithstanding the  foregoing,  Ubiquiti Energy,  LLC, a  Delaware limited liability company, and Ubiquiti Labs, LLC, a Delaware limited liability company, shall  be deemed not to be Immaterial Domestic Subsidiaries hereunder.  The Borrower may from time to time  designate any Domestic Subsidiary (including a newly-created or newly-acquired Domestic Subsidiary)  as an  Immaterial  Domestic  Subsidiary by  delivering to the  Administrative  Agent a  certificate of a  Responsible Officer making such designation and confirming that (x) such Domestic Subsidiary meets the  requirements set forth in this definition and (y) immediately after giving effect to such designation, no  Event of Default shall have occurred and be continuing.        “Immaterial Foreign Subsidiaries” means all Foreign Subsidiaries that are not Material Foreign Subsidiaries.         “Increase Effective Date” has the meaning assigned thereto in Section 2.7(c).         “Incremental Amendment” has the meaning assigned thereto in Section 2.7(fg).        “Incremental  Facilities  Limit”  means, with  respect to any  proposed  incurrence of  additional  Indebtedness under Section 2.7, an amount equal to the sum of         (a)    an amount (the “Fixed Incremental Amount”) equal to the sum of (i) $400,000,000, plus  (ii) the aggregate principal amount of any voluntary prepayments of Incremental Term Loans, plus (iii)  the  aggregate  amount of all  optional prepayments of  Revolving Credit  Loans  (solely to the extent  accompanied by a permanent optional reduction in the Revolving Credit Commitment); provided that, in  each case of clauses (b)(ii) and (iii), such amounts shall only be added under this clause (b) to the extent  such prepayments are  not  funded  with the  proceeds of  Indebtedness that, in  accordance  with  GAAP,  constitute (or when incurred, constituted) a long-term liability, less (iv) the total aggregate initial principal  amount (as of the date of incurrence thereof) of all Incremental Increases, in each case previously incurred  under the Fixed Incremental Amount, plus        (b)    an amount of additional Indebtedness (the “Ratio Incremental Amount”) that would not  cause the  Consolidated  Secured  Leverage  Ratio as of the most  recently  ended  fiscal  quarter of the  Borrower for which  financial  statements have  been  delivered  pursuant to  Section 7.1(a) or (b), as  applicable, prior to the  incurrence of such  additional  Indebtedness (or in the  case of any  additional  Indebtedness, the  proceeds of which  will  finance a  substantially  concurrent  Limited  Condition  Acquisition, the LCA Test Date) to exceed 2.25 to 1.00 (calculated on a Pro Forma Basis after giving  effect to the  incurrence of such  additional  Indebtedness and any  Limited  Condition  Acquisition to be  consummated using the  proceeds of such  additional  Indebtedness and  assuming that any  proposed  Revolving Credit Facility Increase is fully drawn at such time and giving effect to the use of proceeds  thereof).        The  Borrower may  elect to use any  component of the  Incremental  Facilities  Amount, in any  order, in its sole discretion, and if there is capacity under the Ratio Incremental Amount at any time that  an  Incremental Term Loan or  Revolving  Commitment  Increase is  incurred and the  Borrower  does  not  otherwise make an election, the Borrower will be deemed to have elected the Ratio Incremental Amount.        “Incremental Increases” has the meaning assigned thereto in Section 2.7(a).        “Incremental Lender” has the meaning assigned thereto in Section 2.7(b).         “Incremental Term Loan” has the meaning assigned thereto in Section 2.7(a).                                             17 103755581_3 119311063_5 

 

         “Indebtedness” means, with respect to any Person at any date and without duplication, the sum of the following:               (a)    all  liabilities,  obligations  and  indebtedness  for  borrowed  money  including,  but        not limited to, obligations evidenced by bonds, debentures, notes or other similar instruments of       any such Person;               (b)    all obligations to pay the deferred purchase price of property or services of any        such Person (including, without limitation, all obligations under earn-out or similar agreements),        except (i) trade payables arising in the ordinary course of business not more than ninety (90) days        past due, or that are currently being contested in good faith by appropriate proceedings and with        respect to which reserves in conformity with GAAP have been provided for on the books of such        Person and (ii) intercompany charges, payments and/or obligations among the Credit Parties and        Subsidiaries for support services, manufacturing services, licenses, intellectual property, research        and development services, logistics services, distribution, procurement and other similar services        consistent with past practices, in each case incurred in the ordinary course of business;               (c)    the  Attributable  Indebtedness  of  such  Person  with  respect  to  such  Person’s       Capital  Lease  Obligations  and  Synthetic  Leases  (regardless  of  whether  accounted  for  as       indebtedness under GAAP);               (d)    all  obligations  of  such  Person  under  conditional  sale  or  other title  retention       agreements  relating  to  property  purchased  by  such  Person  to  the  extent  of  the  value  of  such       property (other than customary reservations or retentions of title under agreements with suppliers       entered into in the ordinary course of business);               (e)    all Indebtedness of any other Person secured by a Lien on any asset owned or        being purchased by such Person (including Indebtedness arising under conditional sales or other        title  retention  agreements  except  trade  payables  arising  in  the  ordinary  course  of  business),        whether  or  not  such  Indebtedness  shall  have  been  assumed  by  such  Person  or  is  limited  in        recourse;               (f)    all obligations, contingent or otherwise, of any such Person relative to the face        amount  of  letters  of  credit,  whether  or  not  drawn,  including,  without  limitation,  any        Reimbursement Obligation, and banker’s acceptances issued for the account of any such Person;               (g)    all obligations of any such Person in respect of Disqualified Equity Interests;               (h)    all net obligations of such Person under any Hedge Agreements; provided, in no        event  shall  obligations  under  any  Hedge  Agreement  be  deemed  “Indebtedness”  for  any        calculation  of  the  Consolidated  Total  Leverage  Ratio  unless  such  obligations  relate  to  a        transaction which has been terminated; and               (i)    all Guarantees of any such Person with respect to any of the foregoing.         For  all  purposes  hereof,  the  Indebtedness  of  any  Person  shall  include  the  Indebtedness  of  any partnership  or  joint  venture  (other  than  a  joint  venture  that  is  itself  a  corporation  or  limited  liability company)  in  which  such  Person  is  a  general  partner  or  a  joint  venturer,  unless  such  Indebtedness  is expressly  made  non-recourse  to  such  Person.   The  amount  of  any net  obligation  under  any  Hedge Agreement on any date shall be deemed to be the Hedge Termination Value thereof as of such date.                                             18 103755581_3 119311063_5 

 

         “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 Credit Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.        “Indemnitee” has the meaning assigned thereto Section 11.3(b).         “Information” has the meaning assigned thereto in Section 11.10.        “Initial Term Loan”  means the term loan  made, or to be  made, to the  Parent  Borrower by the  Term Loan Lenders pursuant to Section 2.8.  The aggregate principal amount of the Initial Term Loan on  the Closing Date shall be $500,000,000 and the principal amount of the Initial Term Loan amount of each  Term Loan Lender as of the Closing Date is set forth opposite the name of such Term Loan Lender on  Schedule 1.1(a).        “Insurance and  Condemnation  Event”  means  the  receipt  by  any  Credit  Party or any of  its  Subsidiaries  of  any  cash  insurance  proceeds  or  condemnation  award  payable  by  reason  of  theft,  loss, physical destruction or damage, taking or similar event with respect to any of their respective Property.         “Intellectual Property” shall have the meaning specified in the US Collateral Agreement.        “Interest Period” means, as to each LIBOR Rate Loan, the period commencing on the date such LIBOR Rate Loan is disbursed or converted to or continued as a LIBOR Rate Loan and ending on the date one (1), two (2), three (3), or six (6) months thereafter, in each case as selected by the Borrower  Agent, on  behalf of  itself or the Cayman  Borrower,  in  its  Notice  of  Borrowing  or  Notice  of Conversion/Continuation and subject to availability; provided that:               (a)    the Interest Period shall commence on the date of advance of or conversion to       any  LIBOR  Rate  Loan  and,  in  the  case  of  immediately  successive Interest  Periods,  each       successive  Interest  Period  shall  commence  on  the  date  on  which the  immediately  preceding       Interest Period expires;               (b)    if any Interest Period would otherwise expire on a day that is not a Business Day,       such  Interest  Period  shall  expire  on  the  next  succeeding  Business  Day;  provided  that  if  any        Interest Period with respect to a LIBOR Rate Loan would otherwise expire on a day that is not a        Business  Day  but  is  a  day  of  the  month  after  which  no  further  Business  Day  occurs  in  such        month, such Interest Period shall expire on the immediately preceding Business Day;               (c)    any Interest Period with respect to a LIBOR Rate Loan 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) shall end on the last Business Day of        the relevant calendar month at the end of such Interest Period;               (d)    no Interest Period shall extend beyond the Revolving Credit Maturity Date or the        Term  Loan  Maturity  Date,  as  applicable,  and  Interest  Periods  shall  be  selected  by  the        BorrowersBorrower so as to permit the BorrowersBorrower to make mandatory reductions of the       Revolving Credit Commitment pursuant to Section 2.5(b) and the quarterly principal installment        payments pursuant to Section 2.10 without payment of any amounts pursuant to Section 4.9; and               (e)    there shall be no more than ten (10) Interest Periods in effect at any time.        “Investment” has the meaning assigned thereto in Section 8.3.                                             19 103755581_3 119311063_5 

 

         “IRS” means the United States Internal Revenue Service.        “ISP98” means the International Standby Practices (1998 Revision, effective January 1, 1999), International Chamber of Commerce Publication No. 590.590 (or such later version thereof as may be in  effect at the applicable time).        “Issuing Lender” means Wells Fargo, in its capacity as issuer of any Letters of Credit hereunder, or any successor thereto.         “Junior  Indebtedness”  means,  with  respect to the  Borrower and  its  Subsidiaries, any (a)  Subordinated Indebtedness, (b) Indebtedness secured by Liens that are junior to the Liens securing the  Secured  Obligations, and (c)  unsecured  Indebtedness  (other than  intercompany  Indebtedness)  with an  aggregate outstanding principal amount in excess of the Threshold Amount.        “L/C Commitment” means the lesser of (a) $10,000,00025,000,000 and (b) the Revolving Credit Commitment.         “L/C Facility” means the letter of credit facility established pursuant to Article III.         “L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit which have not then been reimbursed pursuant to Section 3.5.        “L/C Participants” means the collective reference to all the Revolving Credit Lenders other than the Issuing Lender.         “LCA Test Date” has the meaning assigned thereto in Section 1.12(a).        “Lender” means each Person executing this Agreement as a Lender on the Closing Date and any other Person that shall have become a party to this Agreement as a Lender pursuant to an Assignment and Assumption or pursuant to Section 2.7, other than any Person that ceases to be a party hereto as a Lender pursuant to an Assignment and Assumption.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender.        “Lending Office” means, with respect to any Lender, the office of such Lender maintaining such Lender’s Extensions of Credit.        “Letter of Credit Application” means an application, in the form specified by the Issuing Lender from time to time, requesting the Issuing Lender to issue a Letter of Credit.         “Letters of Credit” means the collective reference to standby letters of credit issued pursuant to Section 3.1 and the Existing Letters of Credit.        “Leverage Ratio Increase” has the meaning assigned thereto in Section 8.13(a).        “LIBOR” means, subject to the implementation of a Benchmark Replacement Rate in accordance with Section 4.8(c),         (a)   for any interest rate calculation with respect to a LIBOR Rate Loan, the rate of interest  per annum determined on the basis of the rate for deposits in Dollars for a period equal to the applicable  Interest  Period  as  published  by  the  ICE  Benchmark  Administration  Limited,  a  United  Kingdom  company, or a comparable or successor quoting service approved by the Administrative Agent consistent                                            20 103755581_3 119311063_5 

 

    with market practice, at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to  the  first  day  of  the  applicable  Interest  Period.   If,  for  any  reason,  such  rate  is  not  so  published,  then  “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the rate per  annum at which deposits in Dollars would be offered by first class banks in the London interbank market  to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) London Banking Days  prior to the first day of the applicable Interest Period for a period equal to such Interest Period, and         (b)   for any interest rate calculation with respect to a Base Rate Loan, the rate of interest per  annum  determined  on  the  basis  of  the  rate  for  deposits  in  Dollars  for  an  Interest  Period  equal  to  one  month  (commencing  on  the  date  of determination  of  such  interest  rate)  as  published  by  the  ICE  Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting  service approved by the Administrative Agent consistent with market practice, at approximately 11:00  a.m.  (London  time)  on  such  date  of  determination,  or,  if  such  date  is  not  a  Business  Day,  then  the  immediately preceding Business Day.  If, for any reason, such rate is not so published, then “LIBOR” for  such Base Rate Loan shall be determined by the Administrative Agent to be the arithmetic average of the  rate  per  annum  at  which  deposits  in  Dollars  would  be  offered  by  first  class  banks  in  the  London  interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on such date of  determination for a period equal to one month commencing on such date of determination.        Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest error.        Notwithstanding the foregoing, (x) in no event shall LIBOR (including, without limitation, any Benchmark Replacement Rate with respect thereto) be less than 0% and (y) unless otherwise specified in any  amendment  to  this  Agreement  entered  into  in  accordance  with  Section 4.8(c),  in  the  event  that  a Benchmark Replacement Rate with respect to LIBOR is implemented then all references herein to LIBOR shall be deemed references to such Benchmark Replacement Rate.        “LIBOR Rate” means a rate per annum determined by the Administrative Agent pursuant to the following formula:                 LIBOR Rate =                        LIBOR                                         1.00-Eurodollar Reserve Percentage        “LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR Rate as provided in Section 4.1(a).         “Lien” means, with respect to any asset, any mortgage, leasehold mortgage, lien, pledge, charge, security interest, hypothecation or encumbrance of any kind in respect of such asset.  For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, Capital Lease Obligation or other title retention agreement relating to such asset.        “Liquidity” means, as of any date of determination, the sum of (a) all Unrestricted cash and Cash  Equivalents of the Credit Parties and (b) the principal amount that the Borrowers are permitted to draw  under the  Revolving Credit  Facility  (not to  exceed  $50,000,000) on such  date.  For  purposes  hereof,  “Unrestricted” means that such cash and Cash Equivalents (i) do not appear or would not be required to  appear as “restricted” on the financial statements of the Parent Borrower or any such Subsidiary (unless  related to the Loan Documents or the Liens created thereunder), (ii) are not subject to a Lien (other than  Liens permitted under Section 8.2(a) or (j)) in favor of any Person other than the Administrative Agent  under the Loan  Documents,  (iii) are  not  prohibited  from being  used by the  Parent  Borrower and  its                                              21 103755581_3 119311063_5 

 

   Subsidiaries for the payment of the  Obligations and (iv) are  not being held as  cash  collateral for any  Indebtedness or other obligations (other than cash and Cash Equivalents constituting Collateral for the  Obligations) or to  Cash  Collateralize  outstanding  letters of credit  under the terms of this  Agreement.Limited Condition Acquisition” means any Acquisition that is permitted hereunder and is not  conditioned on the availability of, or on obtaining, third-party financing.        “Loan  Documents”  means,  collectively,  this  Agreement,  each  Note,  the  Letter  of Credit Applications, the Security Documents, the Guaranty Agreements and each other document, instrument, certificate  and  agreement  executed  and  delivered  by  the  Credit Parties  or  any  of  their  respective Subsidiaries in favor of or provided to the Administrative Agent or any Secured Party in connection with this  Agreement  or  otherwise  referred  to  herein  or  contemplated hereby  (excluding  any  Secured  Hedge Agreement and any Secured Cash Management Agreement).         “Loans” means the collective reference to the Revolving Credit Loans, the Term Loans and the Swingline Loans, and “Loan” means any of such Loans.         “London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank Eurodollar market.        “Material Adverse Effect” means, with respect to the Parent Borrower and its Subsidiaries, (a) a material adverse change in, or a material adverse effect on, the operations, business, assets, properties, liabilities (actual or contingent) or financial condition of the Parent Borrower and its Subsidiaries, taken as a whole, (b) a material impairment of the ability of any Credit Party to perform its obligations under the Loan Documents to which it is a party, (c) a material adverse effect on the rights and remedies of the Administrative Agent or the Lenders under any Loan Document or (d) a material adverse effect on the legality,  validity,  binding  effect  or  enforceability  against  any  Credit  Party  of  any  Loan  Document  to which it is a party.         “Material Contract” means (a) any contract or agreement, written or oral, of any Credit Party or any of its Subsidiaries involving monetary liability of or to any such Person in an amount in excess of $25,000,00050,000,000 per annum or (b) any other contract or agreement, written or oral, of any Credit Party or any of its Subsidiaries, the breach, non-performance, cancellation or failure to renew of which could reasonably be expected to have a Material Adverse Effect; provided that any contract or agreement solely among the Credit Parties and the Subsidiaries shall not be a “Material Contract” hereunder.         “Material First-Tier Foreign Subsidiary” means any Material Foreign Subsidiary that is directly owned by a US Credit Party.        “Material Foreign Subsidiary” means (a) theUbiquiti Cayman Borrower, (b) Ubiquiti Hong Kong, (c) Ubiquiti Cayman Limited, (d) Ubiquiti Global, and (e) any Foreign Subsidiary or Foreign Subsidiary Holdco  with  assets  or  revenues  that  exceed  5%  of  the  Consolidated  assets  or  revenues  of  the Parent  Borrower and its Subsidiaries, determined as of the end of the most recent Fiscal Year for which financial statements  have  been  delivered  and  recalculated  at  the  end  of  each  Fiscal  Year  thereafter, and  (f) any  Foreign  Subsidiary  required to be  designated as a  Material  Foreign  Subsidiary  pursuant to Section  7.14(d).  On the Closing.  On the Third Amendment Effective Date, Foreign Subsidiaries organized in IndiaBrazil, Canada, China (PRC), Czech Republic, India, Japan, Latvia, Lithuania, Mexico, Netherlands,  Poland, China, Latvia, Canada, Czech RepublicRussia, and Ukraine do not meet the requirement set forth above and are not Material Foreign Subsidiaries.         “Minimum Collateral Amount” means, at any time, (a) with respect to Cash Collateral consisting of cash or deposit account balances, an amount equal to 105103% of the sum of (i) the Fronting Exposure                                             22 103755581_3 119311063_5 

 

   of the Issuing Lender with respect to Letters of Credit issued and outstanding at such time and (ii) the Fronting Exposure of the Swingline Lender with respect to all Swingline Loans outstanding at such time and (b) otherwise, an amount reasonably determined by the Administrative Agent and the Issuing Lender that is entitled to Cash Collateral hereunder at such time in their sole discretion.         “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Credit Party or any ERISA Affiliate is making, or is accruing an obligation to make, or has accrued an obligation to make contributions within the preceding seven (7) years.        “Net Cash Proceeds” means, as applicable, (a) with respect to any Asset Disposition or Insurance and  Condemnation  Event,  the  gross  proceeds  received  by  any  Credit  Party  or  any  of  its  Subsidiaries therefrom (including any cash, Cash Equivalents, deferred payment pursuant to, or by monetization of, a note receivable or otherwise, as and when received) less the sum of (i) in the case of an Asset Disposition, all income taxes and other taxes assessed by, or reasonably estimated to be payable to, a Governmental Authority  as  a  result  of  such  transaction  (provided  that  if  such  estimated  taxes  exceed  the  amount  of actual taxes required to be paid in cash in respect of such Asset Disposition, the amount of such excess shall  constitute  Net  Cash  Proceeds),  (ii)  all  reasonable  out-of-pocket  fees  and  expenses  incurred  in connection with such transaction or event, (iii) the principal amount of, premium, if any, and interest on any Indebtedness secured by a Lien on the asset (or a portion thereof) disposed of, which Indebtedness is required  to  be  repaid  in  connection  with  such  transaction  or event, and (b) with respect to any Equity Issuance or Debt Issuance, the gross cash proceeds received by any Credit Party or any of its Subsidiaries therefrom less (i) all reasonable out-of-pocket legal, underwriting and other fees and expenses incurred in connection therewith and (ii) all income taxes and other taxes assessed by, or reasonably estimated to be payable to, a Governmental Authority as a result of such transaction.         “Non-Consenting  Lender”  means  any  Lender  that  does  not  approve  any  consent,  waiver, amendment,  modification  or  termination  that  (i)  requires  the  approval  of  all  Lenders  or  all  affected Lenders in accordance with the terms of Section 11.2 and (ii) has been approved by the Required Lenders.        “Non-Credit Party” means any Subsidiary of the Parent Borrower that is not a Credit Party.        “Non-Credit Party Investment Amount” means, at any time, an amount at such time equal to (a)  the greater of (i) $50,000,000 and (ii) 10% of Consolidated EBITDA as of the end of the most recently  ended four consecutive fiscal quarter period for which financial statements have been provided pursuant  to Section 7.1(a) or (b), as applicable (determined at the time of the applicable Investment), minus (b) the  aggregate outstanding  amount of  Investments made  pursuant to  Section  8.3(a)(vi) prior to the date of  determination,  minus (c) the  aggregate outstanding  amount of  Investments made  pursuant to  Section  8.3(g)(ii) prior to the date of determination.        “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.        “Notes” means the collective reference to the Revolving Credit Notes, the Swingline Note and the Term Loan Notes.        “Notice of Account Designation” has the meaning assigned thereto in Section 2.3(b).         “Notice of Borrowing” has the meaning assigned thereto in Section 2.3(a).         “Notice of Conversion/Continuation” has the meaning assigned thereto in Section 4.2.         “Notice of Prepayment” has the meaning assigned thereto in Section 2.4(c).                                            23 103755581_3 119311063_5 

 

         “Obligations” means, collectively, the US Obligations and the Cayman Obligations.in each case,  whether  now in  existence or  hereafter  arising: (a) the principal of and  interest on  (including  interest  accruing after the filing of any bankruptcy or similar petition) the Loans made to the Borrower under the  Credit Facility and (b) all other fees and commissions (including attorneys’ fees), charges, indebtedness,  loans, liabilities, financial accommodations, obligations, covenants and duties owing by the Credit Parties  to the Lenders, the Issuing Lender or the Administrative Agent, in each case under any Loan Document,  with  respect to any Loan or  Letter of Credit of every  kind, nature and  description,  direct or  indirect,  absolute or  contingent,  due or to  become  due,  contractual or  tortious,  liquidated or  unliquidated, and  whether or not evidenced by any note and including interest and fees that accrue after the commencement  by or against any Credit Party of any proceeding under any Debtor Relief Laws, naming such Person as  the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such  proceeding.        “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.        “Officer’s  Compliance  Certificate”  means  a  certificate  of  the  chief  financial  officer,  the  chief accounting officer or the controller of the Parent Borrower substantially in the form attached as Exhibit F.        “Operating Lease” means, as to any Person as determined in accordance with GAAP, any lease of Property (whether real, personal or mixed) by such Person as lessee which is not a capital lease.        “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections  arising  from  such  Recipient  having  executed,  delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).        “Other Taxes” means all present or future stamp, court, documentary, intangible, recording, filing or  similar  Taxes  that  arise  from  any  payment  made  under,  from  the  execution,  delivery,  performance, enforcement  or  registration  of,  from  the  receipt  or  perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 4.12).         “Parent  Borrower” has the  meaning  assigned thereto in the  introductory  paragraph to this  Agreement.        “Participant” has the meaning assigned thereto in Section 11.9(d).         “Participant Register” has the meaning assigned thereto in Section 11.9(d).         “PATRIOT Act”  means  the  USA  PATRIOT  Act  (Title  III  of  Pub.  L.  107-56  (signed  into  law October 26, 2001)).        “PBGC” means the Pension Benefit Guaranty Corporation 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 of ERISA or Section 412 of the Code and which (a) is maintained, funded or administered for the employees of any Credit Party or any ERISA Affiliate or (b) has at any time within the preceding seven (7) years been maintained, funded or administered for the employees of any Credit Party or any current or former ERISA Affiliates.                                             24 103755581_3 119311063_5 

 

         “Permitted Acquisition” means any acquisition by the Parent Borrower or any Subsidiary in the form of the acquisition of all or substantially all of the assets, business or a line of business, or at least a majority  of  the  outstanding  Equity  Interests  which  have  the  ordinary  voting  power  for  the  election  of directors of the board of directors (or equivalent governing body) (whether through purchase, merger or otherwise), of any other Person if each such acquisition meets all of the following requirements, which in  the case of a Limited Condition Acquisition shall be subject to Section 1.12:         (a)   such acquisition shall be completed on a non-hostile basis;         (b)   the Person or business to be acquired shall be in a line of business permitted pursuant to  Section 8.11;         (c)   if  such  transaction  is  a  merger  or  consolidation  involving athe  Borrower, suchthe  Borrower shall be the surviving Person;         (d)   if such transaction is a merger or consolidation involving a Guarantor, a Guarantor (or a  Person that will become a Guarantor upon such merger or consolidation) shall be the surviving Person;         (e)   no later than ten (10) Business Days prior to the proposed closing date of such acquisition  (or  such  shorter  period  as  may  be  agreed  to  by  the  Administrative  Agent),  the Parent Borrower  shall  have delivered to the Administrative Agent an Officer’s Compliance Certificate for the most recent fiscal  quarter  end  preceding  such  acquisition  for  which  financial  statements  are  available  demonstrating,  in  form and substance reasonably satisfactory to the Administrative Agent, that the Parent Borrower is in  compliance on a Pro Forma Basis (as of the date of the acquisition and after giving effect thereto and any  Indebtedness  incurred  in  connection  therewith)  with (i) Section  8.13(b) and  (ii) a  Consolidated Total   Leverage Ratio no greater than 3.00 to 1.00the financial covenants in Section 8.13, giving effect to any   Leverage Ratio Increase then in effect pursuant to Section 8.13(a);         (f)   no later than ten (10) Business Days after the proposed closing date of such acquisition  the Parent Borrower (or such longer period as may be agreed to by the Administrative Agent), to the  extent requested by the Administrative Agent, the Borrower shall have delivered to the Administrative  Agent  promptly  upon  the  finalization  thereof  copies  of  substantially  final  documentation  delivered  in  connection therewith; and         (g)   no  Default or Event of Default shall have occurred and be continuing both before and  after giving effect to such acquisition; and(h) the Administrative Agent and the Required Lenders shall   have  provided their  written  consent prior to the  consummation of such  acquisition if the  aggregate   amount of the purchase price, including, but not limited to, any assumed debt, earn-outs (valued at the   maximum amount payable thereunder), deferred payments, or Equity Interests of a Borrower, to be paid   in cash on a singular basis in connection with such acquisition (or series of related acquisitions), together   with all other acquisitions consummated during the term of this Agreement (excluding any portion of the   acquisitions paid from any Equity Issuance) exceeds in the aggregate (x) $100,000,000 minus (y) the   aggregate amount of Investments made pursuant to Section 8.3(m) during the term of this Agreement.        “Permitted Liens” means the Liens permitted pursuant to Section 8.2.         “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.        “Platform” has the meaning assigned thereto in Section 7.2.                                             25 103755581_3 119311063_5 

 

         “Prime Rate” means, at any time, the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate.  Each change in the Prime Rate shall be effective as of the  opening  of  business  on  the  day  such  change  in  such  prime  rate  occurs.   The  parties  hereto acknowledge that the rate announced publicly by the Administrative Agent as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks.        “Pro Forma  Basis”  means,  for  purposes  of  calculating  Consolidated  EBITDA  for  any  period during which one or more Specified Transactions occurs, that such Specified Transaction (and all other Specified  Transactions  that  have  been  consummated  during  the  applicable  period)  shall  be  deemed  to have  occurred  as  of  the  first  day  of  the  applicable  period  of  measurement  (a)  excluding  all  income statement items (whether positive or negative) attributable to the Property or Person that are subject to any  such  Specified  Disposition  made  during  such  period,  (b)  including  all  income  statement  items (whether  positive  or  negative)  attributable  to  the  Property  or Person  acquired  pursuant  to  any  such Permitted Acquisition (provided that such income statement items to be included are reflected in financial statements  or  other  financial  data  reasonably  acceptable  to  the  Administrative  Agent  and  based  upon reasonable assumptions and calculations which are expected to have a continuous impact) and (c) without duplication  of  any  other  adjustments  already  included  in  clause  (b)  above  or  in  the  calculation  of Consolidated EBITDA for such period, after giving effect to the pro forma adjustments with respect to such transaction; provided that in each case any such pro forma adjustments (i) are reasonably expected to be realized within twelve (12) months of such transaction as set forth in reasonable detail on a certificate of  a  Responsible  Officer  of  the Parent Borrower  delivered  to  the  Administrative  Agent  and  (ii)  are calculated on a basis consistent with GAAP and Regulation S-X of the Exchange Act of 1934 (including with respect to pro forma adjustments for public company costs in connection with the Acquisition of any public company) and (iii) represent less than 10% of Consolidated EBITDA (determined without giving effect to this clause (iii)).  For purposes of this definition, “Specified Disposition” means any disposition of all or substantially all of the assets or Equity Interests of any Subsidiary of the Parent Borrower or any division,  business  unit,  product  line  or  line  of  business  and  “Specified  Transaction”  means  (x)  any Specified Disposition and, (y) any Permitted Acquisition and (z) any other Acquisition made pursuant to  Section 8.3(m).        “Property”  means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, including, without limitation, Equity Interests.         “PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.         “Public Lenders” has the meaning assigned thereto in Section 7.2.        “Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity Interests.         “Recipient” means (a) the Administrative Agent, (b) any Lender and (c) the Issuing Lender, as applicable.         “Register” has the meaning assigned thereto in Section 11.9(c).        “Reimbursement  Obligation”  means  the  obligation  of  the Parent Borrower  to  reimburse  the Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit.        “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, advisors and representatives of such Person and of such Person’s Affiliates.                                             26 103755581_3 119311063_5 

 

         “Replacement Rate” has the meaning assigned thereto in Section 4.8(c).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.        “Required Lenders” means, at any date, any combination of two or more Lenders having Total Credit Exposures representing more than fifty percent (50%) of the Total Credit Exposures of all Lenders or, if the Revolving Credit Commitments have been terminated, any combination of two or more Lenders holding more than fifty percent (50%) of the Revolving Credit Exposure and outstanding Term Loans at such  time.   The  Total  Credit  Exposure  of  any  Defaulting  Lender shall  be  disregarded  in  determining Required Lenders at any time.        “Required Revolving Credit Lenders” means, at any date, any combination of Revolving Credit Lenders  holding  more  than  fifty  percent  (50%)  of  the  sum  of  the  aggregate  amount  of  the  Revolving Credit  Commitment  or,  if  the  Revolving  Credit  Commitment  has been terminated, any combination of Revolving Credit Lenders holding more than fifty percent (50%) of the aggregate Extensions of Credit under the Revolving Credit Facility; provided that the Revolving Credit Commitment of, and the portion of the Extensions of Credit under the Revolving Credit Facility, as applicable, held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Credit Lenders.        “Responsible  Officer”  means,  as  to  any  Person,  the  chief  executive  officer,  president,  chief financial  officer,  chief  accounting  officer,  director,  controller,  vice  president,  treasurer  or  assistant treasurer  of  such  Person  or  any  other  officer  of  such  Person  designated  in  writing  by  the applicable  Borrower and reasonably acceptable to the Administrative Agent.  Any document delivered hereunder or under any other Loan Document that is signed by a Responsible Officer of a Person shall be conclusively presumed  to  have  been  authorized  by  all  necessary  corporate,  limited  liability  company,  partnership and/or  other  action  on  the  part  of  such  Person  and  such  Responsible  Officer  shall  be  conclusively presumed to have acted on behalf of such Person.         “Restricted Payment” has the meaning assigned thereto in Section 8.6.         “Revolving Credit Commitment” means (a) as to any Revolving Credit Lender, the obligation of such Revolving Credit Lender to make Revolving Credit Loans to, and to purchase participations in L/C Obligations and Swingline Loans for the account of, the applicable Borrower hereunder in an aggregate principal  amount  at  any  time  outstanding  not  to  exceed  the  amount  set  forth  opposite  such  Revolving Credit Lender’s name on the Register, as such amount may be modified at any time or from time to time pursuant to the terms hereof (including, without limitation, Section 2.7 and the Third Amendment) and (b)  as  to  all  Revolving  Credit  Lenders,  the  aggregate  commitment  of  all  Revolving  Credit  Lenders  to make Revolving Credit Loans, as such amount may be modified at any time or from time to time pursuant to the terms hereof.  The aggregate Revolving Credit Commitment of all the Revolving Credit Lenders on the ClosingThird Amendment Effective Date shall be $400,000,000.700,000,000.  The initial Revolving Credit Commitment of each Revolving Credit Lender on the ClosingThird Amendment Effective Date is set forth opposite the name of such Revolving Credit Lender on Schedule 1.1(a).         “Revolving Credit Commitment Percentage” means, with respect to any Revolving Credit Lender at  any  time,  the  percentage  of  the  total  Revolving  Credit  Commitments  of  all  the  Revolving  Credit Lenders represented by such Revolving Credit Lender’s Revolving Credit Commitment.  If the Revolving Credit Commitments have terminated or expired, the Revolving Credit Commitment Percentages shall be determined based upon the Revolving Credit Commitments most recently in effect, giving effect to any assignments.  The initial Revolving Credit Commitment Percentage of each Revolving Credit Lender on                                             27 103755581_3 119311063_5 

 

   the ClosingThird  Amendment  Effective  Date  is  set  forth  opposite  the  name  of  such  Revolving  Credit Lender on Schedule 1.1(a).        “Revolving Credit  Exposure”  means,  as  to  any  Revolving  Credit  Lender  at  any  time,  the aggregate principal amount at such time of its outstanding Revolving Credit Loans and such Revolving Credit Lender’s participation in L/C Obligations and Swingline Loans at such time.         “Revolving Credit Facility” means the revolving credit facility established pursuant to Article II (including any increase in such revolving credit facility established pursuant to Section 2.7 or the Third  Amendment).        “Revolving Credit Facility Increase” has the meaning assigned thereto in Section 2.7(a).        “Revolving Credit Lender” means a Lender with a Revolving Credit Commitment.        “Revolving Credit Loan” means any revolving loan made to the BorrowersBorrower pursuant to Section 2.1, including any Revolving Credit Facility Increases, and all such revolving loans collectively as the context requires.         “Revolving Credit Maturity Date” means the earliest to occur of (a) January 17, 2023, (b) the date of termination of the entire Revolving Credit Commitment by the BorrowersBorrower pursuant to Section  2.5, orand (c) the date of termination of the Revolving Credit Commitment pursuant to Section 9.2(a).        “Revolving Credit Note” means a promissory note made by the BorrowersBorrower in favor of a Revolving Credit Lender evidencing the Revolving Credit Loans made by such Revolving Credit Lender, (i) for the  Parent  Borrower, substantially  in  the  form  attached  as  Exhibit A-1 and  (ii) for the Cayman  Borrower, substantially in the form attached as Exhibit A-2, and, in each case,including any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.         “Revolving Credit Outstandings” means the sum of (a) with respect to Revolving Credit Loans and Swingline Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Revolving Credit Loans and Swingline Loans, as the case may be, occurring on such date; plus (b) with respect to any L/C Obligations on any date, the aggregate outstanding amount thereof on such date after giving effect to the issuance of or drawing under any Letters of Credit occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements of outstanding unpaid drawings under any Letters of Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date.        “Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced  from  time  to  time  by  the  U.S.  government  (including  those  administered  by  OFAC),  the European Union, Her Majesty’s Treasury, the United Nations Security Council or other relevant sanctions authority.        “Sanctioned Country” means at any time, a country, region or territory which is itself the subject or target of any Sanctions (including, without limitationas of the Third Amendment Effective Date, Cuba, Iran, North Korea, Sudan, Syria and the Crimea region).        “Sanctioned  Person”  means,  at  any  time,  (a)  any  Person  listed  in  any  Sanctions-related  list  of designated  Persons  maintained  by  OFAC,  the  U.S.  Department  of  State,  the  United  Nations  Security Council,  the  European  Union,  Her  Majesty’s  Treasury,  or  other  relevant  sanctions  authority,  (b)  any Person operating, organized or resident in a Sanctioned Country or, (c) any Person owned or controlled                                            28 103755581_3 119311063_5 

 

   by any such Person or Persons described in clauses (a) and (b), or (d) any Person otherwise a target of  Sanctions, including vessels and aircraft, that are designated under any Sanctions program.        “SEC”  means  the  Securities  and  Exchange  Commission,  or  any  Governmental  Authority succeeding to any of its principal functions.        “Secured Cash Management Agreement” means any Cash Management Agreement between or among any Credit Party or any of its Subsidiaries and any Cash Management Bank.        “Secured Hedge Agreement” means any Hedge Agreement between or among any Credit Party or  any of its Subsidiaries and any Hedge Bank.        “Secured  Obligations”  means,  collectively,  (a)  the  Obligations  and  (b)  all  existing  or  future payment and other obligations owing by any Credit Party under (i) any Secured Hedge Agreement (other than an Excluded Swap Obligation) and (ii) any Secured Cash Management Agreement; provided that the “Secured  Obligations”  of  a  Credit  Party  shall  exclude  any  Excluded  Swap  Obligations  with  respect  to such Credit Party.        “Secured Parties” means, collectively, the Administrative Agent, the Lenders, the Issuing Lender, the  Swingline  Lender,  the  Hedge  Banks,  the  Cash  Management  Banks,  each  co-agent  or  sub-agent appointed by the Administrative Agent from time to time pursuant to Section 10.5, any other holder from time  to  time  of  any  of  any  Secured  Obligations  and,  in  each  case,  their  respective  successors  and permitted assigns.         “Security  Documents”  means  the  collective  reference  to  the US Collateral  Agreement, the  Foreign  Collateral  Agreement, the  Ubiquiti  Hong  Kong Share  Mortgage, the  Ubiquiti  International  Cayman Share Charge, the  Ubiquiti  Cayman  Share  Charge, the  Ubiquiti  Global Share Charge, the  Ubiquiti Hong Kong Charge over Accounts and each other agreement or writing pursuant to which any Credit  Party  pledges  or  grants  a  security  interest  in  any  Property  or  assets  securing  any  Secured Obligations or Foreign Secured Obligations, as applicable.        “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” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including  contingent  liabilities,  of  such  Person,  (b)  the  present  fair  salable  value  of  the  assets  of  such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it  will,  incur  debts  or  liabilities  beyond  such  Person’s  ability  to  pay  such  debts  and  liabilities  as  they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities, contingent obligations and other commitments as they mature  in  the  ordinary  course  of  business.   The  amount  of  contingent  liabilities  at  any  time  shall  be computed  as  the  amount  that,  in  the  light  of  all  the  facts  and circumstances  existing  at  such  time, represents the amount that can reasonably be expected to become an actual or matured liability.        “Subordinated Indebtedness” means the collective reference to any Indebtedness incurred by the Parent Borrower  or  any  of  its  Subsidiaries  that  is  subordinated  in  right  and  time  of  payment  to  the Obligations on terms and conditions reasonably satisfactory to the Administrative Agent.                                             29 103755581_3 119311063_5 

 

         “Subsidiary” means as to any Person, any corporation, partnership, limited liability company or other entity of which more than fifty percent (50%) of the outstanding Equity Interests having ordinary voting  power  to  elect  a  majority  of  the  board  of  directors  (or equivalent  governing  body)  or  other managers of such corporation, partnership, limited liability company or other entity is at the time owned by  (directly  or  indirectly)  or  the  management  is  otherwise  controlled  by  (directly  or  indirectly)  such Person  (irrespective  of  whether,  at  the  time,  Equity  Interests of  any  other  class  or  classes  of  such corporation, partnership, limited liability company or other entity shall have or might have voting power by reason of the happening of any contingency).  Unless otherwise qualified, references to “Subsidiary” or “Subsidiaries” herein shall refer to those of the Parent Borrower.        “Subsidiary  Guaranty  Agreement”  means that  certain Amended and  Restated US  Subsidiary  Guaranty Agreement of even date herewith executed by the Borrower and the Guarantors in favor of the  Administrative Agent, for the benefit of the Secured Parties.        “Swap  Obligation”  means,  with  respect  to  any  Credit  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.         “Swingline  Commitment”  means  the  lesser  of  (a)  $25,000,000  and  (b)  the  Revolving  Credit Commitment.         “Swingline Facility” means the swingline facility established pursuant to Section 2.2.         “Swingline  Lender”  means  Wells  Fargo,  in  its  capacity  as  swingline  lender  hereunder  or  any successor thereto.        “Swingline Loan”  means  any  swingline  loan  made by  the  Swingline  Lender  to  the Parent  Borrower pursuant to Section 2.2, and all such swingline loans collectively as the context requires.         “Swingline Note”  means  a  promissory  note  made  by  the Parent Borrower  in  favor  of  the Swingline  Lender  evidencing  the  Swingline  Loans  made  by  the  Swingline  Lender,  substantially in the form  attached  as  Exhibit A-3,2,  and  any  substitutes  therefor,  and  any  replacements,  restatements, renewals or extension thereof, in whole or in part.         “Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or  similar  off-balance  sheet  financing  product  where  such  transaction  is  considered  borrowed  money indebtedness for tax purposes but is classified as an Operating Lease in accordance with GAAP.        “Taxes”  means  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions,  withholdings (including  backup  withholding),  assessments,  fees  or  other  charges  imposed  by  any  Governmental Authority, including any interest, additions to tax or penalties applicable thereto.        “Term Loan Facility” means the term loan facility established pursuant to Article II (including any Incremental Term Loans established pursuant to Section 2.7).        “Term Loan Lender” means any Lender holding outstanding Term Loans.        “Term Loan Maturity Date” means (a) with regard to the InitialThird Amendment Term Loans, the first to occur of (i) January 17, 2023, and (ii) the date of acceleration of the Obligations pursuant to Section 9.2(a)  and  (b)  with  regard  to  any  Incremental  Term  Loan,  the  earlier of (i) the maturity date thereof as determined by the applicable Lenders pursuant to Section 2.7(f) and (ii) the acceleration of the Obligations pursuant to Section 9.2(a).                                            30 103755581_3 119311063_5 

 

         “Term Loan Note” means a promissory note made by the Parent Borrower in favor of a Term Loan Lender evidencing the portion of the Term Loans made by such Term Loan Lender, substantially in the  form  attached  as  Exhibit A-4,3,  and  any  substitutes  therefor,  and  any  replacements,  restatements, renewals or extension thereof, in whole or in part.         “Term Loans” means the InitialThird Amendment Term Loans and any Incremental Term Loan, and “Term Loan” means any of such Term Loans.         “Term SOFR” means the  forward-looking term rate  based on SOFR that has  been  selected or  recommended by the Relevant Governmental Body.        “Termination Event” means the occurrence of any of the following which, individually or in the aggregate, has resulted or could reasonably be expected to result in liability of the BorrowersBorrower in an aggregate amount in excess of the Threshold Amount: (a) a “Reportable Event” described in Section 4043 of ERISA for which the thirty (30) day notice requirement has not been waived by the PBGC, or (b) the withdrawal of any Credit Party or any 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  or  a  cessation  of operations that is treated as such a withdrawal under Section 4062(e) of ERISA, or (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, or (d) the institution of proceedings to terminate, or the appointment of a trustee with  respect  to,  any  Pension  Plan  by  the  PBGC,  or  (e)  any  other  event  or  condition  which  would constitute grounds under Section 4042(a) of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan, or (f) the imposition of a Lien pursuant to Section 430(k) of the Code or Section  303  of  ERISA,  or  (g)  the  determination  that  any  Pension  Plan  or  Multiemployer  Plan  is considered an at-risk plan or plan in endangered or critical status with the meaning of Sections 430, 431 or 432 of the Code or Sections 303, 304 or 305 of ERISA or (h) the partial or complete withdrawal of any Credit Party or any ERISA Affiliate from a Multiemployer Plan if withdrawal liability is asserted by such plan, or (i) any event or condition which results in the reorganization or insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (j) any event or condition which results in the termination of a Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a Multiemployer Plan under Section 4042 of ERISA, or (k) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Credit Party or any ERISA Affiliate.         “Third  Amendment”  means the Third  Amendment to this  Agreement,  dated as of the Third  Amendment Effective Date, by and among the Borrower, Ubiquiti Cayman, the Guarantors, the Lenders  and the Administrative Agent.        “Third Amendment Effective Date” means September 9, 2019.        “Third Amendment Term Loan” means the term loan made, or to be made, to the Borrower by the  Term Loan Lenders pursuant to Section 2.8.  The aggregate principal amount of the Third Amendment  Term Loan on the Third Amendment Effective Date shall be $500,000,000 and the principal amount of  the Third  Amendment Term Loan  amount of  each Term Loan  Lender as of the Third  Amendment  Effective Date is set forth opposite the name of such Term Loan Lender on Schedule 1.1(a).        “Threshold Amount” means $25,000,000.        “Total Credit  Exposure”  means,  as  to  any  Lender  at  any  time,  the  unused  Revolving  Credit Commitments, Revolving Credit Exposure and outstanding Term Loans of such Lender at such time.                                             31 103755581_3 119311063_5 

 

         “Transactions” means, collectively, (a) the refinancing of all Indebtedness outstanding under the Existing Credit Agreement, (b) the initial Extensions of Credit and (c) the payment of costs and expenses incurred in connection with the foregoing.         “Ubiquiti Cayman” means Ubiquiti Cayman Limited, an exempted company incorporated under  the laws of the Cayman Islands.        “Ubiquiti Cayman Share Charge”  means the  equitable charge  over shares  dated as of May 5,  2014,  pursuant to which the  Administrative  Agent, for the  benefit of the  Secured  Parties, is granted a  security  interest (or the  equivalent  under Cayman  Islands law) in  one-hundred  percent  (100%) of the  Equity Interests of Ubiquiti Cayman.” has the meaning assigned thereto in the introductory paragraph to  this Agreement.        “Ubiquiti GlobalCayman Limited” means Ubiquiti Global EnergyCayman Limited, an exempted company incorporated under the laws of the Cayman Islands.         “Ubiquiti  Global Share Charge”  means the  equitable charge  over shares  dated as of  June  29,  2018,  pursuant to which the  Administrative  Agent, for the  benefit of the  Secured  Parties, is granted a  security  interest (or the  equivalent  under Cayman  Islands law) in  one-hundred  percent  (100%) of the  Equity  Interests of  Ubiquiti  Global. “Ubiquiti  Global”  means  Ubiquiti  Global Energy  Limited, an  exempted company incorporated under the laws of the Cayman Islands.        “Ubiquiti Hong Kong” means Ubiquiti Networks International Limited, a company formed under the laws of the Hong Kong Special Administrative Region of the People’s Republic of China.        “Ubiquiti Hong Kong Guaranty” means the unconditional guarantee and indemnity governed by  the laws of  Hong  Kong  dated as of May 5,  2014  executed by  Ubiquiti  Hong  Kong in  favor of the  Administrative Agent, for the ratable benefit of the Secured Parties.        “Ubiquiti Hong Kong Share Mortgage” means the share mortgage governed by the laws of Hong  Kong dated as of May 5, 2014 executed by the Cayman Borrower in favor of the Administrative Agent,  pursuant to which the Administrative Agent, for the benefit of the Secured Parties, is granted a security  interest (or the equivalent under Hong Kong law) in one-hundred percent (100%) of the Equity Interests  of Ubiquiti Hong Kong.        “Ubiquiti  Hong  Kong Charge  over  Accounts”  means the charge  over  accounts and  securities  governed by the laws of Hong Kong dated as of May 5, 2014 executed by Ubiquiti Hong Kong in favor  of the Administrative Agent pursuant to which the Administrative Agent, for the benefit of the Secured  Parties, is granted a security interest (or the equivalent under Hong Kong law) in all deposit accounts,  securities accounts and similar accounts and all cash and cash equivalents held therein.        “Ubiquiti International Cayman Share Charge” means the equitable charge over shares dated as of May  5,  2014,  pursuant  to  which  the  Administrative  Agent,  for  the  benefit  of  the  Secured  Parties,  is granted a security interest (or the equivalent under Cayman Islands law) in sixty-five percent (65%) of the Equity Interests of theUbiquiti Cayman Borrower.        “UCC” means the Uniform Commercial Code as in effect in the State of New York.        “United States” means the United States of AmericaUnadjusted Benchmark Replacement” means  the Benchmark Replacement excluding the Benchmark Replacement Adjustment.                                             32 103755581_3 119311063_5 

 

         “US Collateral Agreement” means the Second Amended and Restated US Collateral Agreement  dated as of the date hereof executed by the US Credit Parties in favor of the Administrative Agent, for the  ratable benefit of the Secured Parties.        “US Credit Parties” means the Parent Borrower and the US Guarantors.        “US Guarantors” all direct and indirect Domestic Subsidiaries of the Parent Borrower in existence  on the Closing Date or which  become a party to the US  Subsidiary  Guaranty  Agreement  pursuant to  Section 7.14  (other than (a) a  direct or  indirect  Domestic  Subsidiary of a  Foreign  Subsidiary or (b) a  Foreign Subsidiary Holdco).        “US  Obligations”  means, in  each  case, whether  now in  existence or  hereafter  arising: (a) the  principal of and  interest on  (including  interest  accruing after the  filing of any  bankruptcy or  similar  petition) the  Loans made to the  Parent  Borrower  under the Credit  Facility and (b) all other  fees and  commissions  (including  attorneys’  fees),  charges,  indebtedness,  loans,  liabilities,  financial  accommodations,  obligations,  covenants and  duties owing by the US Credit  Parties and  each of their  respective Subsidiaries to the Lenders, the Issuing Lender or the Administrative Agent, in each case under  any Loan Document, with respect to any Loan or Letter of Credit of every kind, nature and description,  direct or  indirect,  absolute or  contingent,  due or to  become  due,  contractual or  tortious,  liquidated or  unliquidated, and whether or not evidenced by any note and including interest and fees that accrue after  the commencement by or against any US Credit Party or any Subsidiary thereof of any proceeding under  any Debtor Relief Laws, naming such Person as the debtor in such proceeding, regardless of whether such  interest and fees are allowed claims in such proceeding.        “US Subsidiary Guaranty Agreement” means that certain Amended and Restated US Subsidiary  Guaranty  Agreement of even date  herewith  executed by certain  Domestic  Subsidiaries of the  Parent  Borrower in  favor of the  Administrative  Agent, for the  benefit of the  Secured  Parties.United  States”  means the United States of America.        “U.S.  Person”  means  any  Person  that  is  a  “United  States  person”  as  defined in  Section 7701(a)(30) of the Code.         “U.S. Tax Compliance Certificate” has the meaning assigned thereto in Section 4.11(g).        “Wells Fargo” means Wells Fargo Bank, National Association, a national banking association.         “Wholly-Owned”  means,  with  respect  to  a  Subsidiary,  that  all  of  the  Equity  Interests  of  such Subsidiary are, directly or indirectly, owned or controlled by the Parent Borrower and/or one or more of its  Wholly-Owned  Subsidiaries  (except  for  directors’  qualifying  shares  or  other  shares  required  by Applicable  Law  to  be  owned  by  a  Person  other  than  the Parent Borrower  and/or  one  or  more  of  its Wholly-Owned Subsidiaries).         “Withholding  Agent”  means  the Parent  Borrower, Cayman Borrower  and  the  Administrative Agent.         “Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation  for  the  applicable  EEA  Member  Country,  which  write-down  and  conversion  powers  are described in the EU Bail-In Legislation Schedule.         SECTION 1.2     Other  Definitions and  Provisions.   With  reference  to  this  Agreement  and each other Loan Document, unless otherwise specified herein or in such other Loan Document: (a) the                                            33 103755581_3 119311063_5 

 

   definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (c) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (d) the word “will” shall be construed to have the same meaning and effect as the  word  “shall”,  (e)  any  reference  herein  to  any  Person  shall be  construed  to  include  such  Person’s successors and assigns, (f) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and  Sections  of,  and  Exhibits  and  Schedules  to,  this  Agreement,  (h)  the  words  “asset”  and  “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (i) the term “documents” includes  any  and  all  instruments,  documents,  agreements,  certificates,  notices,  reports,  financial statements  and  other  writings,  however  evidenced,  whether  in  physical  or  electronic  form,  (j)  in  the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including” and (k) section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.         SECTION 1.3     Accounting Terms.         (a)   All accounting terms not specifically or completely defined herein shall be construed in  conformity  with,  and  all  financial  data  (including  financial  ratios  and  other  financial  calculations)  required to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP, applied  on  a  consistent  basis,  as  in  effect  from  time  to  time  and  in  a manner  consistent  with  that  used  in  preparing  the  audited  financial  statements  required  by Section 7.1(a), except as otherwise specifically  prescribed  herein.   Notwithstanding  the  foregoing,  for  purposes  of  determining  compliance  with  any  covenant  (including  the  computation  of  any  financial covenant) contained herein, Indebtedness of the  Parent Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal  amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall  be disregarded.         (b)   If at any time any change in GAAP would affect the computation of any financial ratio or  requirement set forth in any Loan Document, and the Borrower Agent or the Required Lenders shall so  request, the Administrative Agent, the Lenders and the Borrower Agent shall negotiate in good faith to  amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP  (subject  to  the  approval  of  the  Required  Lenders);  provided  that,  until  so  amended,  (i)  such  ratio  or  requirement shall continue to be computed in accordance with GAAP prior to such change therein, (ii)  the Parent Borrower shall provide to the Administrative Agent and the Lenders financial statements and  other  documents  required  under  this  Agreement  or  as  reasonably requested  hereunder  setting  forth  a  reconciliation between calculations of such ratio or requirement made before and after giving effect to  such change in GAAP, and (iii) any lease that was classified or accounted for as an operating lease as of  (and any similar lease entered into after) the Closing Date in accordance with GAAP shall be classified  or accounted for as an operating lease and not a capital lease, even though, as a result of a change in  GAAP or the Parent Borrower’s implementation of Financial Accounting Board Accounting Standards  Codification 842, such lease would be classified and accounted for as a capital lease under GAAP.         SECTION 1.4     UCC Terms.  Terms defined in the UCC in effect on the Closing Date and not otherwise defined herein shall, unless the context otherwise indicates, have the meanings provided by those definitions.  Subject to the foregoing, the term “UCC” refers, as of any date of determination, to the UCC then in effect.                                             34 103755581_3 119311063_5 

 

         SECTION 1.5      Rounding.   Any  financial  ratios  required  to  be  maintained  pursuant  to  this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio or percentage is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).         SECTION 1.6     References to  Agreement and Laws.   Unless  otherwise  expressly  provided herein,  (a)  any  definition  or  reference  to  formation  documents,  governing  documents,  agreements (including  the  Loan  Documents)  and  other  contractual  documents or  instruments  shall  be  deemed  to include  all  subsequent  amendments,  restatements,  extensions,  supplements  and  other  modifications thereto,  but  only  to  the  extent  that  such  amendments,  restatements,  extensions,  supplements  and  other modifications are not expressly prohibited by any Loan Document; and (b) any definition or reference to any Applicable Law, including, without limitation, the Code, the Commodity Exchange Act, ERISA, the Exchange Act, the PATRIOT Act, the Securities Act of 1933, the UCC, the Investment Company Act of 1940, the Interstate Commerce Act, the Trading with the Enemy Act of the United States or any of the foreign assets control regulations of the United States Treasury Department, shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Applicable Law.         SECTION 1.7     Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Pacific time (daylight or standard, as applicable).        SECTION 1.8      Letter of Credit Amounts.  Unless otherwise specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit or the Letter of Credit Application therefor (at the time specified therefor in such applicable Letter of Credit or Letter of Credit Application and as such amount may be reduced by (a) any permanent reduction of such Letter of Credit or (b) any amount which is drawn, reimbursed and no longer available under such Letter of Credit).         SECTION 1.9     Guarantees and Non-Recourse Indebtedness.  Unless otherwise specified, (i) the amount of any Guarantee 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 Guarantee 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.        SECTION 1.10     Covenant  Compliance  Generally.   For purposes of determining compliance under Sections 8.1, 8.2, 8.3, 8.5, 8.6 and 8.12,8.6, any amount in a currency other than Dollars will be converted to Dollars in a manner consistent with that used in calculating Consolidated Net Income in the most recent annual financial statements of the Parent Borrower and its Subsidiaries delivered pursuant to Section 7.1(a).   Notwithstanding  the  foregoing,  for  purposes  of  determining  compliance  with  Sections  8.1,  8.2, 8.3 and 8.12,8.3,  with  respect  to  any  amount  of  Indebtedness, or  Investment or  Capital  Expenditure in a currency other than Dollars, no breach of any basket contained in such sections shall be deemed to have occurred solely as a result of changes in rates of exchange occurring after the time such Indebtedness, or Investment or Capital Expenditure is incurred; provided that for the avoidance of doubt, the  foregoing  provisions  of  this  Section 1.10  shall  otherwise  apply  to  such  Sections,  including  with respect to determining whether any Indebtedness or Investment may be incurred at any time under such Sections.                                             35 103755581_3 119311063_5 

 

          SECTION 1.11    Rates.  The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related  to  the  rates  in  the  definition  of  “LIBOR” or  with  respect to any rate that is an  alternative or  replacement for or  successor to any such rate  (including,  without  limitation, any  Benchmark  Replacement) or the  effect of any of the  foregoing, or of any  Benchmark  Replacement  Conforming  Changes.        SECTION 1.12     Limited Condition Acquisitions.  In the event that the Borrower notifies the  Administrative Agent in writing that any proposed Acquisition is a Limited Condition Acquisition and  that the  Borrower wishes to  test the  conditions to such Limited  Condition  Acquisition and any  Indebtedness (other than Revolving Credit Loans) that is to be used to finance such Limited Condition  Acquisition and the  related  transaction costs and  expenses  associated  with such  Limited  Condition  Acquisition in accordance with this Section 1.12, then, so long as agreed to by the lenders providing such  Indebtedness, the following provisions shall apply:         (a)   any  condition to the  consummation of such  Limited  Condition  Acquisition or the   incurrence of such Indebtedness that requires that no Default or Event of Default shall have occurred and   be continuing at the time of such Limited Condition Acquisition or the incurrence of such Indebtedness,   shall be satisfied if (i) no Default or Event of Default shall have occurred and be continuing at the time   of the execution of the definitive purchase agreement, merger agreement or other acquisition agreement   governing such Limited Condition Acquisition (the “LCA Test Date”) and (ii) no Event of Default under   any of Section 9.1(a), 9.1(b), 9.1(i) or 9.1(j) shall have occurred and be continuing both immediately   before and  immediately after the  consummation of such  Limited  Condition  Acquisition and the   incurrence of such Indebtedness;         (b)   any  condition to the  consummation of such  Limited  Condition  Acquisition or the   incurrence of such Indebtedness that the representations and warranties in this Agreement and the other   Loan  Documents shall be true and  correct at the  time of  consummation of such  Limited  Condition   Acquisition or the incurrence of such Indebtedness shall be deemed satisfied if (i) all representations and   warranties in this Agreement and the other Loan Documents are true and correct in all material respects   (except for any  representation and  warranty that is  qualified by  materiality or  reference to  Material   Adverse Effect, which such representation and warranty shall be true and correct in all respects) as of the   LCA Test Date, or if such representation speaks as of an earlier date, as of such earlier date and (ii) as of   the date of consummation of such Limited Condition Acquisition, (A) the representations and warranties   under the relevant definitive agreement governing such Limited Condition Acquisition as are material to   the  lenders  providing such  Indebtedness shall be true and  correct,  but  only to the extent that the   Borrower or its applicable Subsidiary has the right to terminate its obligations under such agreement or   otherwise  decline to close such  Limited  Condition  Acquisition as a  result of a  breach of such   representations and  warranties or the  failure of  those  representations and  warranties to be true and   correct and (B)  certain of the  representations and  warranties in this  Agreement and the other Loan   Documents which are customary for  similar “funds  certain”  financings and  required by the  lenders   providing such  Indebtedness shall be true and  correct in all  material  respects  (except for any   representation and  warranty that is  qualified by  materiality or  reference to  Material  Adverse  Effect,   which such representation and warranty shall be true and correct in all respects);         (c)   any  financial  ratio  test or  condition to be  tested in  connection  with such  Limited   Condition Acquisition and the availability of such Indebtedness will be tested as of the LCA Test Date,   in each case, after giving effect to the relevant Limited Condition Acquisition and related incurrence of   Indebtedness, on a pro forma basis where applicable, and, for the avoidance of doubt, (i) such ratios and   baskets shall not be tested at the time of consummation of such Limited Condition Acquisition and (ii) if   any of such ratios are exceeded or conditions are not met following the LCA Test Date, but prior to the                                              36 103755581_3 119311063_5 

 

    closing of such  Limited  Condition  Acquisition, as a  result of  fluctuations in such  ratio or  amount   (including due to fluctuations in Consolidated EBITDA of the Borrower or the Person subject to such   Limited Condition Acquisition), at or prior to the consummation of the relevant transaction or action,   such ratios will not be deemed to have been exceeded and such conditions will not be deemed unmet as a   result of such fluctuations solely for purposes of determining whether the relevant transaction or action   is permitted to be consummated or taken;         (d)   except as provided in the next sentence, in connection with any subsequent calculation of   any ratio or basket on or following the relevant LCA Test Date and prior to the earlier of the date on   which such Limited Condition Acquisition is consummated and the date that the definitive agreement for   such  Limited  Condition  Acquisition is terminated or  expires  without  consummation of such  Limited   Condition Acquisition, any such ratio or basket shall be calculated (i) on a pro forma basis assuming   such  Limited  Condition  Acquisition and other  transactions in  connection  therewith  (including the   incurrence or  assumption of  Indebtedness) have  been  consummated and  (ii)  assuming such  Limited   Condition  Acquisition and other  transactions in  connection  therewith  (including the  incurrence or   assumption of  Indebtedness) have  not  been  consummated.   Notwithstanding the  foregoing, any   calculation of a ratio in connection with determining the Applicable Margin and determining whether or   not the Borrower is in compliance with the financial covenants set forth in Section 8.13 shall, in each   case be  calculated  assuming such  Limited  Condition Acquisition and other transactions in connection   therewith (including the incurrence or assumption of Indebtedness) have not been consummated.        The foregoing provisions shall apply with similar effect during the pendency of multiple Limited   Condition Acquisitions such that each of the possible scenarios is separately tested.        SECTION 1.13     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.                                        ARTICLE II                                   CREDIT FACILITIES        SECTION 2.1      Revolving Credit  Loans.   Subject  to  the  terms  and  conditions  of  this Agreement and the other Loan Documents, and in reliance upon the representations and warranties set forth in this Agreement and the other Loan Documents, each Revolving Credit Lender severally agrees to make Revolving Credit Loans to the Cayman Borrower and/or the Parent Borrower in Dollars from time to time from the Closing Date to, but not including, the Revolving Credit Maturity Date as requested by the Borrower Agent in accordance with the terms of Section 2.3; provided, that (a) the Revolving Credit Outstandings shall not exceed the Revolving Credit Commitment of all the Revolving Credit Lenders and (b)  the  Revolving  Credit  Exposure  of  any  Revolving  Credit  Lender  shall  not  at  any  time  exceed  such Revolving Credit Lender’s Revolving Credit Commitment.  Each Revolving Credit Loan by a Revolving Credit Lender shall be in a principal amount equal to such Revolving Credit Lender’s Revolving Credit Commitment Percentage of the aggregate principal amount of Revolving Credit Loans requested on such occasion.  Subject to the terms and conditions hereof, the Cayman Borrower and the Parent Borrower may borrow, repay and reborrow Revolving Credit Loans hereunder until the Revolving Credit Maturity Date.                                              37 103755581_3 119311063_5 

 

          SECTION 2.2     Swingline Loans.         (a)   Availability.  Subject to the terms and conditions of this Agreement and the other Loan  Documents,  including,  without  limitation,  Section 5.2(d)  of  this  Agreement,  and  in  reliance  upon  the  representations and warranties set forth in this Agreement and the other Loan Documents, the Swingline  Lender may, in its sole discretion, make Swingline Loans to the Parent Borrower in Dollars from time to  time from the Closing Date to, but not including, the Revolving Credit Maturity Date; provided, that (a)  after  giving  effect  to  any  amount  requested,  the  Revolving  Credit  Outstandings  shall  not  exceed  the  Revolving  Credit  Commitment  and  (b)  the  aggregate  principal  amount  of  all  outstanding  Swingline  Loans (after giving effect to any amount requested) shall not exceed the Swingline Commitment.         (b)   Refunding.               (i)    Swingline Loans shall be refunded by the Revolving Credit Lenders on demand       by  the  Swingline  Lender.   Such  refundings  shall  be  made  by  the Revolving  Credit  Lenders  in       accordance with their respective Revolving Credit Commitment Percentages and shall thereafter       be reflected as Revolving Credit Loans of the Revolving Credit Lenders on the books and records       of the Administrative Agent.  Each Revolving Credit Lender shall fund its respective Revolving       Credit Commitment Percentage of Revolving Credit Loans as required to repay Swingline Loans       outstanding to the Swingline Lender upon demand by the Swingline Lender but in no event later       than 1:00 p.m. on the next succeeding Business Day after such demand is made.  No Revolving       Credit Lender’s obligation to fund its respective Revolving Credit Commitment Percentage of a       Swingline  Loan  shall  be  affected  by  any  other  Revolving  Credit Lender’s  failure  to  fund  its       Revolving Credit Commitment Percentage of a Swingline Loan, nor shall any Revolving Credit       Lender’s Revolving Credit Commitment Percentage be increased as a result of any such failure of       any  other  Revolving  Credit  Lender  to  fund  its  Revolving  Credit Commitment  Percentage  of  a       Swingline Loan.               (ii)   The Parent Borrower shall pay to the Swingline Lender on demand the amount of       such Swingline Loans to the extent amounts received from the Revolving Credit Lenders are not        sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded.        In  addition,  the Parent Borrower  hereby  authorizes  the  Administrative  Agent  to  charge  any       account  maintained  by  the Parent Borrower  with  the  Swingline  Lender  (up  to  the  amount       available  therein)  in  order  to  immediately  pay  the  Swingline  Lender  the  amount  of  such       Swingline  Loans  to  the  extent  amounts  received  from  the  Revolving  Credit  Lenders  are  not       sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded.       If  any  portion  of  any  such  amount  paid  to  the  Swingline  Lender shall  be  recovered  by  or  on       behalf of the Parent Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of       the  amount  so  recovered  shall  be  ratably  shared  among  all  the  Revolving  Credit  Lenders  in       accordance with their respective Revolving Credit Commitment Percentages (unless the amounts       so recovered by or on behalf of the Parent Borrower pertain to a Swingline Loan extended after       the occurrence and during the continuance of an Event of Default of which the Administrative       Agent has received notice in the manner required pursuant to Section 10.3 and which such Event        of Default has not been waived by the Required Lenders or the Lenders, as applicable).               (iii)  Each  Revolving  Credit  Lender  acknowledges  and  agrees  that  its  obligation  to       refund  Swingline  Loans  in  accordance  with  the  terms  of  this  Section  is  absolute  and       unconditional  and  shall  not  be  affected  by  any  circumstance  whatsoever,  including,  without       limitation,  non-satisfaction  of  the  conditions  set  forth  in  Article V.   Further,  each  Revolving       Credit  Lender  agrees  and  acknowledges  that  if  prior  to  the  refunding  of  any  outstanding       Swingline Loans pursuant to this Section, one of the events described in Section 9.1(i) or (j) shall                                             38 103755581_3 119311063_5 

 

         have occurred, each Revolving Credit Lender will, on the date the applicable Revolving Credit       Loan would have been made, purchase an undivided participating interest in the Swingline Loan       to  be  refunded  in  an  amount  equal  to  its  Revolving  Credit  Commitment  Percentage  of  the       aggregate  amount  of  such  Swingline  Loan.   Each  Revolving  Credit  Lender  will  immediately       transfer to the Swingline Lender, in immediately available funds, the amount of its participation       and upon receipt thereof the Swingline Lender will deliver to such Lender a certificate evidencing       such participation dated the date of receipt of such funds and for such amount.  Whenever, at any       time after the Swingline Lender has received from any Revolving Credit Lender such Revolving       Credit  Lender’s  participating  interest  in  a  Swingline  Loan,  the  Swingline  Lender  receives  any       payment  on  account  thereof,  the  Swingline  Lender  will  distribute  to  such  Revolving  Credit       Lender  its  participating  interest  in  such  amount  (appropriately  adjusted,  in  the  case  of  interest        payments, to reflect the period of time during which such Revolving Credit Lender’s participating        interest was outstanding and funded).         (c)   Defaulting  Lenders.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  this  Section 2.2  shall  be  subject  to  the  terms  and  conditions  of  Section 4.13  and  Section   4.14.         SECTION 2.3     Procedure for Advances of Revolving Credit Loans and Swingline Loans.         (a)   Requests for  Borrowing.  The Borrower  Agent, on  behalf of  itself or the Cayman   Borrower, shall give the Administrative Agent irrevocable prior written notice substantially in the form  of Exhibit B (a “Notice of Borrowing”) not later than 11:00 a.m. (i) on the same Business Day as each  Base Rate Loan and each Swingline Loan and (ii) at least three (3) Business Days before each LIBOR  Rate  Loan,  of  its  intention  to  borrow,  specifying  (A)  the  date of  such  borrowing,  which  shall  be  a  Business Day, (B) the amount of such borrowing, which shall be, (x) with respect to Base Rate Loans  (other  than  Swingline  Loans)  in  an  aggregate  principal  amount  of  $3,000,000  or  a  whole  multiple  of  $1,000,000 in excess thereof, (y) with respect to LIBOR Rate Loans in an aggregate principal amount of  $5,000,000 or a whole multiple of $1,000,000 in excess thereof and (z) with respect to Swingline Loans  in an aggregate principal amount of $500,000 or a whole multiple of $100,000 in excess thereof, (C)  whether such Loan is to be a Revolving Credit Loan or Swingline Loan, (D) in the case of a Revolving  Credit Loan whether the Loans are to be LIBOR Rate Loans or Base Rate Loans, (E) whether such Loan   will be made to the Parent Borrower or the Cayman Borrower and (F and (E) in the case of a LIBOR  Rate Loan, the duration of the Interest Period applicable thereto.  If the Borrower Agent fails to specify a  type of Loan in a Notice of Borrowing, then the applicable Loans shall be made as Base Rate Loans.  If  the Borrower Agent requests a Borrowing of LIBOR Rate Loans in any such Notice of Borrowing, but  fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  A  Notice of Borrowing received after 11:00 a.m. shall be deemed received on the next Business Day.  The  Administrative Agent shall promptly notify the Revolving Credit Lenders of each Notice of Borrowing.         (b)   Disbursement of Revolving Credit and Swingline Loans.  Not later than 1:00 p.m. on the  proposed borrowing date, (i) each Revolving Credit Lender will make available to the Administrative  Agent,  for  the  account  of  the Parent  Borrower or the Cayman Borrower,  at  the  office  of  the  Administrative  Agent  in  funds  immediately  available  to  the  Administrative  Agent,  such  Revolving  Credit Lender’s Revolving Credit Commitment Percentage of the Revolving Credit Loans to be made on  such borrowing date and (ii) the Swingline Lender will make available to the Administrative Agent, for  the  account  of  the Parent Borrower,  at  the  office  of  the  Administrative  Agent  in  funds  immediately  available  to  the  Administrative Agent,  the  Swingline  Loans  to  be  made  on  such  borrowing  date.  EachThe Borrower hereby irrevocably authorizes the Administrative Agent to disburse the proceeds of  each borrowing requested pursuant to this Section in immediately available funds by crediting or wiring  such  proceeds  to  the deposit account of the Parent Borrower or the Cayman Borrower, as applicable,                                             39 103755581_3 119311063_5 

 

    identified in the most recent notice substantially in the form attached as Exhibit C (a “Notice of Account   Designation”)  delivered  by  the  Borrower  Agent  to  the  Administrative  Agent  or  as  may  be  otherwise  agreed upon by the Borrower Agent, on behalf of itself or the Cayman Borrower, and the Administrative  Agent from time to time.  Subject to Section 4.7 hereof, the Administrative Agent shall not be obligated  to disburse the portion of the proceeds of any Revolving Credit Loan requested pursuant to this Section  to the extent that any Revolving Credit Lender has not made available to the Administrative Agent its  Revolving Credit Commitment Percentage of such Loan.  Revolving Credit Loans to be made for the  purpose of refunding Swingline Loans shall be made by the Revolving Credit Lenders as provided in  Section 2.2(b).         SECTION 2.4     Repayment and Prepayment of Revolving Credit and Swingline Loans.         (a)   Repayment on  Termination Date.  (i) EachThe  Borrower  hereby  agrees  to  repay  the  outstanding  principal  amount  of  all  Revolving  Credit  Loans  made to suchthe  Borrower  in  full  on  the  Revolving Credit Maturity Date, and (ii) the Parent Borrower agrees to repay the outstanding principal  amount of all Swingline Loans in accordance with Section 2.2(b) (but, in any event, no later than the  Revolving Credit Maturity Date), together, in each case, with all accrued but unpaid interest thereon.         (b)   Mandatory Prepayments.  If at any time the Revolving Credit Outstandings exceed the  Revolving Credit Commitment, the Parent Borrower and Cayman Borrower, as applicable, agreeagrees  to repay promptly upon notice from the Administrative Agent, by payment to the Administrative Agent  for the account of the Revolving Credit Lenders, Revolving Credit Outstandings in an amount equal to  such excess with each such repayment applied first, if such repayment is made by the Parent Borrower,  to the principal amount of outstanding Swingline Loans, second to the principal amount of outstanding  Revolving  Credit  Loans  and  third,  with  respect  to  any  Letters  of  Credit  then  outstanding,  if  such  repayment is made by the Parent Borrower, a payment of Cash Collateral into a Cash Collateral account  opened by the Administrative Agent, for the benefit of the Revolving Credit Lenders, in an amount equal  to such excess (such Cash Collateral to be applied in accordance with Section 9.2(b)).         (c)   Optional Prepayments.  The Parent Borrower and the Cayman Borrower may at any time  and from time to time prepay Revolving Credit Loans and Swingline Loans, in whole or in part, without  premium  or  penalty  (other  than  pursuant  to  Section 4.9),  with  irrevocable  prior  written  notice  to  the  Administrative Agent substantially in the form attached as Exhibit D (a “Notice of Prepayment”) given  not later than 11:00 a.m. (i) on the same Business Day as each Base Rate Loan and each Swingline Loan  and (ii) at least three (3) Business Days before each LIBOR Rate Loan, specifying the date and amount  of prepayment and whether the prepayment is of LIBOR Rate Loans, Base Rate Loans, Swingline Loans  or a combination thereof, and, if of a combination thereof, the amount allocable to each.  Upon receipt of  such notice, the Administrative Agent shall promptly notify each Revolving Credit Lender.  If any such  notice is given, the amount specified in such notice shall be due and payable on the date set forth in such  notice.   Partial  prepayments  shall  be  in  an  aggregate  amount  of  $3,000,000  or  a  whole  multiple  of  $1,000,000 in excess thereof with respect to Base Rate Loans (other than Swingline Loans), $5,000,000  or a whole multiple of $1,000,000 in excess thereof with respect to LIBOR Rate Loans and $500,000 or  a  whole  multiple  of  $100,000  in  excess  thereof  with  respect  to Swingline  Loans.   A  Notice  of  Prepayment received after 11:00 a.m. shall be deemed received on the next Business Day.  Each such  repayment  shall  be  accompanied  by  any  amount  required  to  be  paid  pursuant  to  Section 4.9  hereof.  Notwithstanding the foregoing, any Notice of Prepayment delivered in connection with any refinancing  of all of the Credit Facility or other transaction, may be, if expressly so stated to be, contingent upon the  consummation of such refinancing or other transaction and may be revoked by the BorrowersBorrower  in the event such refinancing is not consummated (provided that the failure of such contingency shall not  relieve the BorrowersBorrower from their respectiveits obligations in respect thereof under Section 4.9).                                             40 103755581_3 119311063_5 

 

          (d)   Limitation on Prepayment of LIBOR Rate  Loans.  The BorrowersBorrower may not  prepay any LIBOR Rate Loan on any day other than on the last day of the Interest Period applicable  thereto unless such prepayment is accompanied by any amount required to be paid pursuant to Section   4.9 hereof.         SECTION 2.5     Permanent Reduction of the Revolving Credit Commitment.         (a)   Voluntary Reduction.  The BorrowersBorrower shall have the right at any time and from  time to time, upon at least five (5) Business Days prior irrevocable written notice to the Administrative  Agent, to permanently reduce, without premium or penalty, (i) the entire Revolving Credit Commitment  at  any  time  or  (ii)  portions  of  the  Revolving  Credit  Commitment,  from  time  to  time,  in  an  aggregate  principal amount not less than $3,000,000 or any whole multiple of $1,000,000 in excess thereof.  Any  reduction of the Revolving Credit Commitment shall be applied to the Revolving Credit Commitment of  each  Revolving  Credit  Lender  according  to  its  Revolving  Credit Commitment  Percentage.   All  Commitment  Fees  accrued  until  the  effective  date  of  any  termination  of  the  Revolving  Credit  Commitment shall be paid on the effective date of such termination.  Notwithstanding the foregoing, any  notice to reduce the Revolving Credit Commitment delivered in connection with any refinancing of all of  the Revolving Credit Facility or other transaction, may be, if expressly so stated to be, contingent upon  the  consummation  of  such  refinancing  or  other  transaction  and  may  be  revoked  by  the  BorrowersBorrower in the event such refinancing is not consummated (provided that the failure of such  contingency  shall  not  relieve  the BorrowersBorrower  from their  respectiveits  obligations  in  respect  thereof under Section 4.9).         (b)   Corresponding Payment.   Each  permanent  reduction  permitted  pursuant  to  this  Section  shall be accompanied by a payment of principal sufficient to reduce the aggregate outstanding Revolving  Credit Loans, Swingline Loans and L/C Obligations, as applicable, after such reduction to the Revolving  Credit  Commitment  as  so  reduced,  and  if  the  aggregate  amount  of  all  outstanding  Letters  of  Credit  exceeds the Revolving Credit Commitment as so reduced, the applicable Borrower shall be required to  deposit Cash Collateral in a Cash Collateral account opened by the Administrative Agent in an amount  equal to such excess.  Such Cash Collateral shall be applied in accordance with Section 9.2(b).  Any  reduction  of  the  Revolving  Credit  Commitment  to  zero  shall  be  accompanied  by  payment  of  all  outstanding Revolving Credit Loans and Swingline Loans (and furnishing of Cash Collateral satisfactory  to the Administrative Agent for all L/C Obligations) and shall result in the termination of the Revolving  Credit Commitment and the Swingline Commitment and the Revolving Credit Facility.  If the reduction  of the Revolving Credit Commitment requires the repayment of any LIBOR Rate Loan, such repayment  shall be accompanied by any amount required to be paid pursuant to Section 4.9 hereof.        SECTION 2.6      Termination of Revolving Credit Facility.  The Revolving Credit Facility and the Revolving Credit Commitments shall terminate on the Revolving Credit Maturity Date.         SECTION 2.7     Increase in Revolving Credit Commitments; Incremental Loans.         (a)   Request for  Increase.   At  any  time  after  the ClosingThird  Amendment  Effective  Date,  upon written notice to the Administrative Agent, the Borrower Agent may from time to time request (i)  one or more incremental term loans (each, an “Incremental Term Loan”) or (ii) one or more increases in  the Revolving Credit Commitments (each, a “Revolving Credit Facility Increase” and all such Revolving  Credit Facility Increases, together with the initial principal amount of the Incremental Term Loans, the  “Incremental  Increases”);  provided  that  (A)  the  aggregate  principal  amount  for  all  such  Incremental  Increases shall not exceed $300,000,000the Incremental Facilities Limit and (B) any such request for an  increase  shall  be  in  a  minimum  amount  of  $10,000,000 (or such  lesser  amount  agreed to by the                                              41 103755581_3 119311063_5 

 

    Administrative Agent) or, if less, the remaining amount permitted pursuant to the foregoing clause (A)of   the Incremental Facilities Limit.         (b)   Incremental Lenders.  Each notice from the Borrower Agent pursuant to this Section shall  set  forth  the  requested  amount  and  proposed  terms  of  the  relevant  Incremental  Increase.  Incremental  Increases  may  be  provided  by  any  existing  Lender  or  by  any  other  Persons  (each,  an  “Incremental   Lender”);  provided  that  the  Administrative  Agent,  the  Issuing  Lender  and  the  Swingline  Lender,  as  applicable, shall have consented (such consent not to be unreasonably withheld, conditioned or delayed)  to such Incremental Lender’s providing such Incremental Increase to the extent any such consent would  be  required  under  Section  11.9(b)  for  an  assignment  of  Loans  or  Revolving  Credit  Commitments,  as  applicable,  to  such  Incremental  Lender.   At  the  time  of  sending  such  notice,  the  Borrower  Agent (in  consultation with the Administrative Agent) shall specify the time period within which each Incremental  Lender is requested to respond, which shall in no event be less than ten (10) Business Days from the date  of delivery of such notice to the proposed Incremental Lenders.  Each proposed Incremental Lender may  elect or decline, in its sole discretion, and shall notify the Administrative Agent within such time period  whether it agrees, to provide an Incremental Increase and, if so, whether by an amount equal to, greater  than or less than requested.  Any Person not responding within such time period shall be deemed to have  declined to provide an Incremental Increase.         (c)   Increase  Effective Date and  Allocations.   The  Administrative  Agent  and  the  Borrower   Agent shall determine the effective date (the “Increase Effective Date”) and the final allocation of such  Incremental Increase (limited in the case of the Incremental Lenders to their own respective allocations  thereof).   The  Administrative  Agent  shall  promptly  notify  the  Borrower  Agent  and  the  Incremental  Lenders of the final allocation of such Incremental Increases and the Increase Effective Date.         (d)   Conditions to  Effectiveness of  Increase.   Any  Incremental  Increase  shall  become  effective  as  of  such  Increase  Effective  Date, provided that and shall be  subject to the  following   conditions  precedent, which in the  case of an  Incremental Term Loan  incurred solely to  finance a   substantially concurrent Limited Condition Acquisition, shall be subject to Section 1.12:               (i)    no  Default  or  Event  of  Default  shall  exist  on  such  Increase  Effective  Date       immediately prior to or after giving effect to (A) such Incremental Increase or (B) the making of       any Extensions of Credit pursuant thereto; and               (ii)   the Parent Borrower is in pro forma compliance with the financial covenants set       forth  in  Section 8.13  based  on  the  financial  statements  most  recently  delivered  pursuant  to       Section 7.1 after giving effect to such Incremental Increase (assuming that the entire applicable        Incremental Term Loan and/or Revolving Credit Facility Increase is fully funded on the effective        date thereof); and               (iii)  the Administrative Agent shall have received from the Borrower any customary        legal opinions or other documents (including a resolutions duly adopted by the board of directors        (or equivalent governing body) of each Credit Party), in connection with such Incremental Term        Loan or Revolving Credit Facility Increase.         (e)   Terms of Revolving Credit Facility Increases.               (i)    Revolving  Credit  Loans  made  with  respect  to  the  Revolving  Credit  Facility       Increase  shall  mature  on  the  Revolving  Credit  Maturity  Date  and  shall  be  subject  to  the  same       terms and conditions as the other Revolving Credit Loans;                                             42 103755581_3 119311063_5 

 

                (ii)   the  outstanding  Revolving  Credit  Loans  and  Revolving  Credit  Commitment       Percentages of Swingline Loans and L/C Obligations will be reallocated by the Administrative       Agent on the applicable Increase Effective Date among the Revolving Credit Lenders (including       the Incremental Lenders providing such Revolving Credit Facility Increase) in accordance with       their  revised  Revolving  Credit  Commitment  Percentages  (and  the Revolving  Credit  Lenders       (including the Incremental Lenders providing such Revolving Credit Facility Increase) agree to       make  all  payments  and  adjustments  necessary  to  effect  such  reallocation  and  the       BorrowersBorrower  shall  pay  any  and  all  costs  required  pursuant  to  Section 4.9  in  connection       with such reallocation as if such reallocation were a repayment);               (iii)  the  terms  and  conditions  applicable  to  such  Revolving  Credit  Facility  Increase       shall, except to the extent otherwise provided in this Section 2.7, be identical to the terms and       conditions applicable to the Revolving Credit Facility;               (iv)   each  Revolving  Credit  Facility  Increase  shall  constitute US Obligations or        Cayman  Obligations, as  applicable, of  the applicable Borrower  and  shall  be  secured  and       guaranteed with the other Extensions of Credit on a pari passu basis; and               (v)    any  Incremental  Lender  with  a  Revolving  Credit  Facility  Increase  shall  be        entitled to the same voting rights as the existing Revolving Credit Lenders under the Revolving        Credit  Facility  and  any  Extensions  of  Credit  made  in  connection  with  each  Revolving  Credit        Facility Increase shall receive proceeds of prepayments on the same basis as the other Revolving        Credit Loans made hereunder.         (f)   Terms of Incremental Term Loans.               (i)    the  maturity  date  and  principal  amortization  for  each  Incremental  Term  Loan        shall  be  determined  by  the  applicable  Incremental  Lenders  and  the  Borrower  Agent  on  the       applicable Increase Effective Date; provided that no Incremental Term Loan will have a shorter       weighted  average  life  to  maturity  than  the  remaining  weighted  average  life  to  maturity  of  the       InitialThird Amendment Term Loan or a maturity date earlier than the Term Loan Maturity Date;               (ii)   the Applicable Margin and pricing grid, if applicable, for each Incremental Term       Loan shall be determined by the applicable Incremental Lenders and the Borrower Agent on the       applicable  Increase  Effective  Date  and  shall  be  reasonably  acceptable  to  the  Administrative       Agent;               (iii)  except as provided in this Section 2.7, all other terms and conditions applicable        to any Incremental Term Loan shall be consistent with the terms and conditions applicable to the        InitialThird Amendment Term Loan; and               (iv)   each  Incremental  Term  Loan  shall  constitute US Obligations or Cayman        Obligations, as applicable, of the applicable Borrower and shall be secured and guaranteed with       the other Extensions of Credit on a pari passu basis.         (g)   Incremental Amendment.  Each such Incremental Increase shall be effected pursuant to  an  amendment  (an  “Incremental  Amendment”)  to  this  Agreement  and,  as  appropriate,  the  other  Loan  Documents,  executed  by  the BorrowersBorrower,  the  Administrative  Agent  and  the  applicable  Incremental  Lenders,  which  Incremental  Amendment  may,  without  the  consent  of  any  other  Lenders,  effect  such  amendments  to  this  Agreement  and  the  other  Loan  Documents  as  may  be  necessary  or                                             43 103755581_3 119311063_5 

 

    appropriate,  in  the  reasonable  opinion  of  the  Administrative  Agent,  to  effect  the  provisions  of  this  Section 2.7.        SECTION 2.8      InitialThird Amendment Term Loan.  Subject to the terms and conditions of this Agreement and the other Loan Documents, and in reliance upon the representations and warranties set forth in this Agreement and the other Loan Documents, each Term Loan Lender severally agrees to make the InitialThird Amendment Term Loan to the Parent Borrower on the ClosingThird Amendment  Effective Date in a principal amount equal to the amount of such Lender’s InitialThird Amendment Term Loan commitment as set forth on Schedule 1.1(a).  Any obligation of the Term Loan Lenders to fund the InitialThird Amendment Term Loan shall terminate upon funding of the InitialThird Amendment Term Loan on the ClosingThird Amendment Effective Date.        SECTION 2.9      Procedure for Advance of Term Loans.         (a)   InitialThird Amendment Term Loan.  The Parent Borrower shall give the Administrative  Agent an irrevocable Notice of Borrowing prior to 11:00 a.m. on the ClosingThird Amendment Effective  Date requesting that the Term Loan Lenders make the InitialThird Amendment Term Loan as a Base  Rate  Loan  on  such  date  (provided  that  the Parent Borrower  may  request,  no  later  than threeone (31)  Business DaysDay prior to the ClosingThird Amendment Effective Date, that the Term Loan Lenders  make  the InitialThird  Amendment  Term  Loan  as  a  LIBOR  Rate  Loan if the  Parent  Borrower has   delivered to the  Administrative  Agent a  letter in form and  substance  reasonably  satisfactory to the   Administrative Agent indemnifying the Lenders in the manner set forth in, subject to Section 4.9 of this  Agreement).  Upon receipt of such Notice of Borrowing from the Parent Borrower, the Administrative  Agent  shall  promptly  notify  each  Term  Loan  Lender  thereof.   Not  later  than  1:00  p.m.  on  the  ClosingThird  Amendment  Effective  Date,  each  Term  Loan  Lender  will  make  available  to  the  Administrative Agent for the account of the Parent Borrower, at the Administrative Agent’s Office in  immediately  available  funds,  the  amount  of  such InitialThird  Amendment  Term  Loan  to  be  made  by  such Term Loan Lender on the ClosingThird Amendment Effective Date.  The Parent Borrower hereby  irrevocably authorizes the Administrative Agent to disburse the proceeds of the InitialThird Amendment  Term  Loan  in  immediately  available  funds  by  wire  transfer  to  such  Person  or  Persons  as  may  be  designated by the Parent Borrower in writing.           (b) Incremental Term Loans.  Any Incremental Term Loans shall be borrowed pursuant to,   and in accordance with Section 2.7.         SECTION 2.10    Repayment of Term Loans.         (a)   InitialThird  Amendment Term Loan.  The  Parent  Borrower  shall  repay  the  aggregate  outstanding  principal  amount  of  the InitialThird  Amendment  Term  Loan  in  consecutive  quarterly  installments equal to $6,250,000.00 on the last Business Day of each of March, June, September and  December, commencing March 31, 2018 as set forth below,September 30, 2019, except as the amounts  of individual installments may be adjusted pursuant to Section 2.11 hereof:                                                   PRINCIPAL                          PAYMENT DATE           INSTALLMENT                                                      ($)                           March 31, 2018          $6,250,000                           June 30, 2018           $6,250,000                         September 30, 2018        $6,250,000                         December 31, 2018         $6,250,000                           March 31, 2019          $6,250,000                                            44 103755581_3 119311063_5 

 

                             June 30, 2019           $6,250,000                         September 30, 2019        $6,250,000                         December 31, 2019         $6,250,000                           March 31, 2020          $9,375,000                           June 30, 2020           $9,375,000                         September 30, 2020        $9,375,000                         December 31, 2020         $9,375,000                           March 31, 2021         $12,500,000                           June 30, 2021          $12,500,000                         September 30, 2021       $12,500,000                         December 31, 2021        $12,500,000                           March 31, 2022         $12,500,000                           June 30, 2022          $12,500,000                         September 30, 2022       $12,500,000                         December 31, 2022        $12,500,000                           Maturity Date      Remaining Outstanding                                                 Principal Amount  .  If not sooner paid, the InitialThird Amendment Term Loan shall be paid in full, together with accrued interest thereon, on the Term Loan Maturity Date.         (b)   Incremental Term  Loans.  The Parent Borrower  shall  repay  the  aggregate  outstanding  principal  amount  of  any  Incremental  Term  Loan  as  determined  pursuant  to,  and  in  accordance  with,  Section 2.7.         SECTION 2.11    Prepayments of Term Loans.         (a)   Optional Prepayments.  The Parent Borrower shall have the right at any time and from  time to time, without premium or penalty, to prepay the Term Loans, in whole or in part, upon delivery  to the Administrative Agent of a Notice of Prepayment not later than 11:00 a.m. (i) on the same Business  Day as each Base Rate Loan and (ii) at least three (3) Business Days before each LIBOR Rate Loan,  specifying the date and amount of repayment, whether the repayment is of LIBOR Rate Loans or Base  Rate  Loans  or  a  combination  thereof,  and  if a combination thereof, the amount allocable to each and  whether the repayment is of the InitialThird Amendment Term Loan, an Incremental Term Loan or a  combination  thereof,  and  if  a  combination  thereof,  the  amount  allocable  to  each.   Each  partial  prepayment  of  the  Term  Loans  hereunder  shall  be  in  an  aggregate  principal  amount  of  at  least  $3,000,000  or  a  whole  multiple  of  $1,000,000  in  excess  thereof with  respect  to  Base  Rate  Loans,  $5,000,000 or any whole multiple of $1,000,000 in excess thereof with respect to LIBOR Rate Loans  and  shall  be  applied,  on  a  pro  rata  basis,  to  the  outstanding  principal  installments  of  the InitialThird   Amendment  Term  Loan  and,  if  applicable,  any  Incremental  Term  Loans  as  directed  by  the Parent   Borrower.  Each repayment shall be accompanied by any amount required to be paid pursuant to Section   4.9.  A Notice of Prepayment received after 11:00 a.m. shall be deemed received on the next Business  Day.  The Administrative Agent shall promptly notify the applicable Term Loan Lenders of each Notice  of Prepayment.         (b)   Mandatory Prepayments.               (i)    Debt  Issuances.  The Parent Borrower  shall  make  mandatory  principal       prepayments of the Term Loans in the manner set forth in clause (v) below in an amount equal to        one  hundred  percent  (100%)  of  the  aggregate  Net  Cash  Proceeds  from  any  Debt  Issuance  not                                             45 103755581_3 119311063_5 

 

         otherwise  permitted  pursuant  to  Section 8.1.   Such  prepayment  shall  be  made  within  three  (3)       Business Days after the date of receipt of the Net Cash Proceeds of any such Debt Issuance.               (ii)   Equity  Issuances.  The Parent Borrower  shall  make  mandatory  principal       prepayments of the Term Loans in the manner set forth in clause (v) below in an amount equal to        fifty-percent (50%) of the aggregate Net Cash Proceeds from any Equity Issuance other than the        exercise price on stock options issued as part of employee compensation; provided, that so long       as no Event of Default has occurred and is continuing, no prepayments shall be required from the       Net  Cash  Proceeds  from  Equity  Issuances  among  the  Credit  Parties  and  their  Subsidiaries,       including Equity Issuances the proceeds of which are used to finance a Permitted Acquisition.       Such prepayment shall be made within three (3) Business Days after the date of receipt of the Net       Cash Proceeds of any such Equity Issuance.               (iii)  Asset  Dispositions and  Insurance and  Condemnation  Events.  The Parent        Borrower shall make mandatory principal prepayments of the Term Loans in the manner set forth       in clause (v) below in amounts equal to one hundred percent (100%) of the aggregate Net Cash        Proceeds from (A) any Asset Disposition (other than any Asset Disposition permitted pursuant to        clauses  (a)  through  (lq)  of  Section 8.5)  made  by  a US  Credit  Party  or  (B)  any  Insurance  and       Condemnation Event of a US Credit Party, to the extent that the aggregate amount of such Net       Cash Proceeds, in the case of each of clauses (A) and (B), respectively, exceed $5,000,000 during       any Fiscal Year.  Such prepayments shall be made within three (3) Business Days after the date of       receipt of the Net Cash Proceeds; provided that, so long as no Event of Default has occurred and       is continuing, no prepayment shall be required under this Section 2.11(b)(iii) with respect to such       portion  of  such  Net  Cash  Proceeds  that  the Parent Borrower  shall  have  given  prompt  written       notice to the Administrative Agent of its intent to reinvest in accordance with Section 2.11(b)(iv).               (iv)   Reinvestment  Option.   With  respect  to  any  Net  Cash  Proceeds  realized  or        received with respect to any Asset Disposition or any Insurance and Condemnation Event by any        Credit Party of any Subsidiary thereof (in each case, only to the extent contemplated pursuant to        Section 2.11(b)(iii)), at the option of the Parent Borrower, the Credit Parties or their Subsidiaries       may  reinvest  all  or  any  portion  of  such  Net  Cash  Proceeds  in  assets  used  or  useful  for  the       business of the Credit Parties and their Subsidiaries within twelve (12) months following receipt       of such Net Cash Proceeds (or, if a commitment for such reinvestment has been made within such       twelve  (12)  month  period,  within 90  days  after  the  end  of  such twelve  (12)  month  period);       provided that if any Net Cash Proceeds are no longer intended to be or cannot be so reinvested at        any  time  after  delivery  of  a  notice  of  reinvestment  election,  an  amount  equal  to  any  such  Net        Cash Proceeds shall be applied within three (3) Business Days after the applicable Credit Party       reasonably determines that such Net Cash Proceeds are no longer intended to be or cannot be so       reinvested to the prepayment of the Term Loans as set forth in this Section 2.11(b);.  Pending the       final  application  of  any  such  Net  Cash  Proceeds,  the  applicable  Credit  Party  may  invest  an       amount equal to such Net Cash Proceeds in any manner that is not prohibited by this Agreement.               (v)    Notice;  Manner of Payment.   Upon  the  occurrence  of  any  event  triggering  the        prepayment requirement under clauses (i) through and including (iv) above, the Parent Borrower       shall promptly deliver a Notice of Prepayment to the Administrative Agent and upon receipt of       such notice, the Administrative Agent shall promptly so notify the Lenders.  Each prepayment of       the Loans under this Section shall be applied ratably between the InitialThird Amendment Term       Loans  and  any  Incremental  Term  Loans  which  such  prepayment  to  be  applied  to  reduce  the       remaining scheduled principal installments of the InitialThird Amendment Term Loans and any       Incremental Term Loans (including the bullet payment due at maturity) on a pro rata basis.                                             46 103755581_3 119311063_5 

 

                (vi)   Prepayment of LIBOR Rate Loans.  Each prepayment shall be accompanied by       any amount required to be paid pursuant to Section 4.9; provided that, so long as no Event of        Default  shall  have  occurred  and  be  continuing,  if  any  prepayment  of  LIBOR  Rate  Loans  is        required to be made under this Section 2.11(b) prior to the last day of the Interest Period therefor,       in lieu of making any payment pursuant to this Section 2.11(b) in respect of any such LIBOR        Rate Loan prior to the last day of the Interest Period therefor, the Parent Borrower may, in its sole       discretion, deposit an amount sufficient to make any such prepayment otherwise required to be       made  thereunder  together  with  accrued  interest  to  the  last  day of  such  Interest  Period  into  an       account held at, and subject to the sole control of, the Administrative Agent until the last day of       such  Interest  Period,  at  which time  the  Administrative  Agent  shall  be  authorized  (without  any       further action by or notice to or from the Parent Borrower or any other Credit Party) to apply such       amount to the prepayment of such Term Loans in accordance with this Section 2.11(b).  Upon the       occurrence and during the continuance of any Event of Default, the Administrative Agent shall       also be authorized (without any further action by or notice to or from the Parent Borrower or any       other Credit Party) to apply such amount to the prepayment of the outstanding Term Loans in       accordance with the relevant provisions of this Section 2.11(b).               (vii)  No  Reborrowings.   Amounts  prepaid  under  the  Term  Loan  pursuant  to  this        Section may not be reborrowed.                                        ARTICLE III                              LETTER OF CREDIT FACILITY         SECTION 3.1     L/C Facility.         (a)   Availability.  Subject to the terms and conditions hereof, the Issuing Lender, in reliance  on  the  agreements  of  the  other  Revolving  Credit  Lenders  set  forth  in  Section 3.4(a),  agrees  to  issue  standby Letters of Credit in an aggregate amount not to exceed its L/C Commitment for the account of  the Parent Borrower (which may support the obligations of any Subsidiary of the Parent Borrower) on  any Business Day from the Closing Date to, but not including, the thirtieth (30th) Business Day prior to  the Revolving Credit Maturity Date in such form as may be approved from time to time by the Issuing  Lender; provided, that the Issuing Lender shall have no obligation to issue any Letter of Credit if, after  giving effect to such issuance, (a) the L/C Obligations would exceed the L/C Commitment or (b) the  Revolving Credit Outstandings would exceed the Revolving Credit Commitment.  Each Letter of Credit  shall (i) be denominated in Dollars in a minimum amount of $100,000 (or such lesser amount as agreed  to by the Issuing Lender), (ii) be a standby letter of credit issued to support the obligations of the Parent   Borrower or any of its Subsidiaries, contingent or otherwise, incurred in the ordinary course of business  and (iii) expire on a date no more than twelve (12) months after the date of issuance or last renewal of  such Letter of Credit subject to automatic renewal for additional one (1) year periods pursuant to the  terms  of  the  Letter  of  Credit  Application  or  other  documentation  acceptable  to  the  applicable  Issuing  Lender),  which  date  shall  be  no  later  than  the  fifth  (5th)  Business  Day  prior  to  the  Revolving  Credit  Maturity Date and (iv) be subject to the ISP98,, as set forth in the Letter of Credit Application or as  determined by the Issuing Lender and, to the extent not inconsistent therewith, the laws of the State of  New York.  The Issuing Lender shall not at any time be obligated to issue any Letter of Credit hereunder  if  (A)  any  order,  judgment  or  decree  of  any  Governmental  Authority  or  arbitrator  shall  by  its  terms  purport to enjoin or restrain the Issuing Lender from issuing such Letter of Credit, or any Applicable  Law applicable to the Issuing Lender or any request or directive (whether or not having the force of law)  from any Governmental Authority with jurisdiction over the Issuing Lender shall prohibit, or request that  the  Issuing  Lender  refrain  from,  the  issuance  of  letters  of  credit  generally  or  such Letter of Credit in  particular  or  shall  impose  upon  the  Issuing  Lender  with  respect  to  letters  of  credit  generally  or  such  Letter  of  Credit  in  particular  any  restriction  or  reserve  or  capital  requirement  (for  which  the  Issuing                                             47 103755581_3 119311063_5 

 

    Lender is not otherwise compensated) not in effect on the Closing Date, or any unreimbursed loss, cost  or expense that was not applicable, in effect as of the Closing Date and that the Issuing Lender in good  faith deems material to it, (B) the conditions set forth in Section 5.2  are  not  satisfied,  or  (C)  the  beneficiary of such Letter of Credit is a Sanctioned Person.  References herein to “issue” and derivations  thereof with respect to Letters of Credit shall also include extensions or modifications of any outstanding  Letters of Credit, unless the context otherwise requires.  As of the Closing Date, each of the Existing  Letters of Credit shall constitute, for all purposes of this Agreement and the other Loan Documents, a  Letter of Credit issued and outstanding hereunder.         (b)   Defaulting  Lenders.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement, Article III shall be subject to the terms and conditions of Section 4.13 and Section 4.14.        SECTION 3.2      Procedure for Issuance of Letters of Credit.  The Parent Borrower may from time to time request that the Issuing Lender issue a Letter of Credit by delivering to the Issuing Lender at the Administrative Agent’s Office a Letter of Credit Application therefor, completed to the satisfaction of the Issuing Lender, and such other certificates, documents and other papers and information as the Issuing Lender may request.  Upon receipt of any Letter of Credit Application, the Issuing Lender shall process such  Letter  of  Credit  Application  and  the  certificates,  documents  and  other  papers  and  information delivered to it in connection therewith in accordance with its customary procedures and shall, subject to Section 3.1 and Article V, promptly issue the Letter of Credit requested thereby (but in no event shall the Issuing  Lender  be  required  to  issue  any  Letter  of  Credit  earlier  than  three  (3)  Business  Days  after  its receipt of the Letter of Credit Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof  or  as  otherwise  may  be  agreed  by  the  Issuing  Lender  and the Parent Borrower.   The  Issuing Lender shall promptly furnish to the Borrower Agent a copy of such Letter of Credit and shall promptly notify each Revolving Credit Lender of the issuance and upon request by any Revolving Credit Lender, furnish to such Lender a copy of such Letter of Credit and the amount of such Revolving Credit Lender’s participation therein.         SECTION 3.3     Commissions and Other Charges.         (a)   Letter of Credit  Commissions.  Subject to Section  4.14(a)(iii)(B),  the Parent Borrower  shall  pay  to  the  Administrative  Agent,  for  the  account  of  the  applicable  Issuing  Lender  and  the  L/C  Participants, a letter of credit commission with respect to each Letter of Credit in the amount equal to the  daily amount available to be drawn under such standby Letters of Credit times the Applicable Margin  with respect to Revolving Credit Loans that are LIBOR Rate Loans (determined on a per annum basis).  Such commission shall be payable quarterly in arrears on the last Business Day of each calendar quarter,  on  the  Revolving  Credit  Maturity  Date  and  thereafter  on  demand of  the  Administrative  Agent.   The  Administrative Agent shall, promptly following its receipt thereof, distribute to the Issuing Lender and  the  L/C  Participants  all  commissions  received  pursuant  to  this Section 3.3  in  accordance  with  their  respective Revolving Credit Commitment Percentages.         (b)   Issuance Fee.  In addition to the foregoing commission, the Parent Borrower shall pay  directly to the Issuing Lender, for its own account, an issuance fee with respect to each Letter of Credit  at a rate equal to 0.125% per annum, computed on the daily amount available to be drawn under such  Letter of Credit.  Such issuance fee shall be payable quarterly in arrears on the last Business Day of each  calendar quarter commencing with the first such date to occur after the issuance of a Letter of Credit, on  a the Revolving Credit Maturity Date and thereafter on demand of the Issuing Lender.  For the avoidance  of doubt, such issuance fee shall be applicable to and paid upon each of the Existing Letters of Credit.                                              48 103755581_3 119311063_5 

 

          (c)   Other Costs.   In  addition  to  the  foregoing  fees  and  commissions,  the Parent Borrower  shall  pay  or  reimburse  the  Issuing  Lender  for  such  normal  and  customary  fees,  costs,  charges  and  expenses as are incurred or charged by the Issuing Lender in issuing, effecting payment under, amending  or otherwise administering any Letter of Credit.        SECTION 3.4      L/C Participations.         (a)   The Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant,  and, to induce the Issuing Lender to issue Letters of Credit hereunder, each L/C Participant irrevocably  agrees to accept and purchase and hereby accepts and purchases from the Issuing Lender, on the terms  and conditions hereinafter stated, for such L/C Participant’s own account and risk an undivided interest  equal  to  such  L/C  Participant’s  Revolving  Credit  Commitment  Percentage  in  the  Issuing  Lender’s  obligations and rights under and in respect of each Letter of Credit issued hereunder and the amount of  each draft paid by the Issuing Lender thereunder.  Each L/C Participant unconditionally and irrevocably  agrees with the Issuing Lender that, if a draft is paid under any Letter of Credit for which the Issuing  Lender is not reimbursed in full by the Parent Borrower through a Revolving Credit Loan or otherwise in  accordance with the terms of this Agreement, such L/C Participant shall pay to the Issuing Lender upon  demand  at  the  Issuing  Lender’s  address  for  notices  specified  herein  an  amount  equal  to  such  L/C  Participant’s Revolving Credit Commitment Percentage of the amount of such draft, or any part thereof,  which is not so reimbursed.         (b)   Upon becoming aware of any amount required to be paid by any L/C Participant to the  Issuing Lender pursuant to Section 3.4(a) in respect of any unreimbursed portion of any payment made  by the Issuing Lender under any Letter of Credit, the Issuing Lender shall notify each L/C Participant of  the  amount  and  due  date  of  such  required  payment  and  such  L/C  Participant  shall  pay  to  the  Issuing  Lender  the  amount  specified  on  the  applicable  due  date.   If  any  such  amount  is  paid  to  the  Issuing  Lender  after  the  date  such  payment  is  due,  such  L/C  Participant  shall  pay  to  the  Issuing  Lender  on  demand, in addition to such amount, the product of (i) such amount, times (ii) the daily average Federal  Funds Rate as determined by the Administrative Agent during the period from and including the date  such payment is due to the date on which such payment is immediately available to the Issuing Lender,  times (iii) a fraction the numerator of which is the number of days that elapse during such period and the  denominator of which is 360.  A certificate of the Issuing Lender with respect to any amounts owing  under this Section shall be conclusive in the absence of manifest error.  With respect to payment to the  Issuing Lender of the unreimbursed amounts described in this Section, if the L/C Participants receive  notice that any such payment is due (A) prior to 1:00 p.m. on any Business Day, such payment shall be  due that Business Day, and (B) after 1:00 p.m. on any Business Day, such payment shall be due on the  following Business Day.         (c)   Whenever, at any time after the Issuing Lender has made payment under any Letter of  Credit and has received from any L/C Participant its Revolving Credit Commitment Percentage of such  payment in accordance with this Section, the Issuing Lender receives any payment related to such Letter  of  Credit  (whether  directly  from  the Parent Borrower  or  otherwise),  or  any  payment  of  interest  on  account  thereof,  the  Issuing  Lender  will  distribute  to  such  L/C  Participant  its  pro rata  share  thereof;  provided, that in the event that any such payment received by the Issuing Lender shall be required to be  returned  by  the  Issuing  Lender,  such  L/C  Participant  shall  return  to  the  Issuing  Lender  the  portion  thereof previously distributed by the Issuing Lender to it.        SECTION 3.5      Reimbursement  Obligation of the Parent Borrower.   In  the  event  of  any drawing under any Letter of Credit, the Parent Borrower agrees to reimburse (either with the proceeds of a Revolving Credit Loan as provided for in this Section or with funds from other sources), in same day funds, the Issuing Lender on each date on which the Issuing Lender notifies the Parent Borrower of the                                             49 103755581_3 119311063_5 

 

   date and amount of a draft paid under any Letter of Credit for the amount of (a) such draft so paid and (b) any  amounts  referred  to  in  Section 3.3(c)  incurred  by  the  Issuing  Lender  in  connection  with  such payment.   Unless  the Parent Borrower  shall  immediately  notify  the  Issuing  Lender  that  the Parent  Borrower  intends  to  reimburse  the  Issuing  Lender  for  such  drawing  from  other  sources  or  funds,  the Parent Borrower shall be deemed to have timely given a Notice of Borrowing to the Administrative Agent requesting that the Revolving Credit Lenders make a Revolving Credit Loan as a Base Rate Loan on such date in the amount of (i) such draft so paid and (ii) any amounts referred to in Section 3.3(c) incurred by the  Issuing  Lender  in  connection  with  such  payment,  and  the  Revolving  Credit  Lenders  shall  make  a Revolving Credit Loan as a Base Rate Loan in such amount, the proceeds of which shall be applied to reimburse the Issuing Lender for the amount of the related drawing and such fees and expenses.  Each Revolving Credit Lender acknowledges and agrees that its obligation to fund a Revolving Credit Loan in accordance with this Section to reimburse the Issuing Lender for any draft paid under a Letter of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation,  non-satisfaction  of  the  conditions  set  forth  in  Section 2.3(a)  or  Article V.   If  the Parent  Borrower has elected to pay the amount of such drawing with funds from other sources and shall fail to reimburse  the  Issuing  Lender  as  provided  above,  the  unreimbursed  amount  of such drawing shall bear interest at the rate which would be payable on any outstanding Base Rate Loans which were then overdue from the date such amounts become payable (whether at stated maturity, by acceleration or otherwise) until payment in full.        SECTION 3.6      Obligations Absolute.  The Parent Borrower’s obligations under this Article  III  (including,  without  limitation,  the  Reimbursement  Obligation) shall  be  absolute  and  unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Parent Borrower may have or have had against the Issuing Lender or any beneficiary of a Letter of Credit or any other Person.  The Parent Borrower  also  agrees  that  the  Issuing  Lender  and  the  L/C Participants  shall  not  be  responsible  for,  and  the Parent Borrower’s  Reimbursement  Obligation  under Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Parent Borrower and any beneficiary of any Letter of Credit or  any  other  party  to  which  such  Letter  of  Credit  may  be  transferred  or  any  claims  whatsoever  of  the Parent Borrower  against  any  beneficiary  of  such  Letter  of  Credit  or  any  such  transferee.   The  Issuing Lender  shall  not  be  liable  for  any  error,  omission,  interruption  or  delay  in  transmission,  dispatch  or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for  errors  or  omissions  caused  by  the  Issuing  Lender’s  gross  negligence  or  willful  misconduct,  as determined by a court of competent jurisdiction by final non-appealable judgment.  The Parent Borrower agrees that any action taken or omitted by the Issuing Lender under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct or a breach in bad faith of its obligations under the Loan Documents, in each case as determined by a court  of  competent  jurisdiction  by  final  non-appealable  judgment,  shall  be  binding  on  the Parent  Borrower and shall not result in any liability of the Issuing Lender or any L/C Participant to the Parent  Borrower.  The responsibility of the Issuing Lender to the Parent Borrower in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment substantially conforms to the requirements under such Letter of Credit.        SECTION 3.7      Effect of Letter of Credit Application.  To the extent that any provision of any Letter of Credit Application related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article III shall apply.                                              50 103755581_3 119311063_5 

 

                                         ARTICLE IV                              GENERAL LOAN PROVISIONS         SECTION 4.1     Interest.         (a)   Interest Rate  Options.   Subject  to  the  provisions  of  this  Section,  at  the  election  of  the  BorrowersBorrower, (i) Revolving Credit Loans and the Term Loans shall bear interest at (A) the Base  Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin (provided that the  LIBOR  Rate  shall  not  be  available  until  three  (3)  Business  Days  after  the  Closing  Date  unless  the  Borrower  Agent, on  behalf of  itself and the Cayman  Borrower,  has  delivered  to  the  Administrative  Agent a letter in form and substance reasonably satisfactory to the Administrative Agent indemnifying  the Lenders in the manner set forth in Section 4.9 of this Agreement) and (ii) any Swingline Loan shall  bear interest at the Base Rate plus the Applicable Margin.  The BorrowersBorrower shall select the rate  of interest and Interest Period, if any, applicable to any Loan at the time a Notice of Borrowing is given  or at the time a Notice of Conversion/Continuation is given pursuant to Section 4.2.         (b)   Default Rate.  Subject to Section 9.3, (i) immediately upon the occurrence and during the  continuance  of  an  Event  of  Default  under  Section 9.1(a),  (b),  (i)  or  (j),  or  (ii)  at  the  election  of  the  Required  Lenders  (or  the  Administrative  Agent  at  the  direction of  the  Required  Lenders),  upon  the  occurrence and during the continuance of any other Event of Default, (A) the BorrowersBorrower shall  no longer have the option to request LIBOR Rate Loans, Swingline Loans or Letters of Credit, (B) all  outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two percent (2%) in excess of  the rate (including the Applicable Margin) then applicable to LIBOR Rate Loans until the end of the  applicable  Interest  Period  and  thereafter  at  a  rate  equal  to  two  percent  (2%)  in  excess  of  the  rate  (including  the  Applicable  Margin)  then  applicable to Base Rate Loans, (C) all outstanding Base Rate  Loans,  Swingline  Loans  and  other  Obligations  arising  hereunder or  under  any  other  Loan  Document  shall  bear  interest  at  a  rate  per  annum  equal  to  two  percent  (2%)  in  excess  of  the  rate  (including  the  Applicable Margin) then applicable to Base Rate Loans or such other Obligations arising hereunder or  under any other Loan Document and (D) all accrued and unpaid interest shall be due and payable on  demand of the Administrative Agent.  Interest shall continue to accrue on the Obligations after the filing  by or against eitherthe Borrower of any petition seeking any relief in bankruptcy or under any Debtor  Relief Law.         (c)   Interest Payment and Computation.  Interest on each Base Rate Loan shall be due and  payable in arrears on the last Business Day of each calendar quarter commencing March 31, 2018; and  interest  on  each  LIBOR  Rate  Loan  shall  be  due  and  payable  on  the  last  day  of  each  Interest  Period  applicable thereto, and if such Interest Period extends over three (3) months, at the end of each three (3)  month interval during such Interest Period.  All computations of interest for Base Rate Loans when the  Base Rate is determined by the Prime Rate shall be made on the basis of a year of 365 or 366 days, as  the case may be, and actual days elapsed.  All other computations of fees and interest provided hereunder  shall  be  made  on  the  basis  of  a  360-day  year  and  actual  days  elapsed  (which  results  in  more  fees  or  interest, as applicable, being paid than if computed on the basis of a 365/366-day year).         (d)   Maximum Rate.   In  no  contingency  or  event  whatsoever  shall  the  aggregate  of all  amounts  deemed  interest  under  this  Agreement  charged  or  collected  pursuant  to  the  terms  of  this  Agreement exceed the highest rate permissible under any Applicable Law which a court of competent  jurisdiction  shall,  in  a  final  determination,  deem  applicable  hereto.   In  the  event  that  such  a  court  determines  that  the  Lenders  have  charged  or  received  interest  hereunder  in  excess  of  the  highest  applicable  rate,  the  rate  in  effect  hereunder  shall  automatically  be  reduced  to  the  maximum  rate  permitted by Applicable Law and the Lenders shall at the Administrative Agent’s option (i) promptly  refund to the applicable Borrower any interest received by the Lenders in excess of the maximum lawful                                             51 103755581_3 119311063_5 

 

    rate or (ii) apply such excess to the principal balance of the Obligations.  It is the intent hereof that the  BorrowersBorrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender  receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that  which may be paid by the applicable Borrower under Applicable Law.        SECTION 4.2      Notice and Manner of Conversion or Continuation of Loans.  Provided that no Default or Event of Default has occurred and is then continuing, the Borrower Agent, on behalf of  itself and the Cayman  Borrower,  shall  have  the  option  to  (a)  convert  at  any  time  following  the third Business Day after the Closing Date all or any portion of any outstanding Base Rate Loans (other than Swingline  Loans)  in  a  principal  amount  equal  to  $5,000,000  or  any  whole  multiple  of  $1,000,000  in excess thereof into one or more LIBOR Rate Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of its outstanding LIBOR Rate Loans in a principal amount equal to $3,000,000 or a whole multiple of $1,000,000 in excess thereof into Base Rate Loans (other than Swingline Loans) or (ii) continue such LIBOR Rate Loans as LIBOR Rate Loans.  Whenever eitherthe Borrower desires to convert  or  continue  Loans  as provided  above,  the  Borrower  Agent, on  behalf of  itself or the Cayman  Borrower,  shall  give  the  Administrative  Agent  irrevocable  prior  written notice  in  the  form  attached  as Exhibit E  (a  “Notice of  Conversion/Continuation”)  not  later  than  11:00  a.m.  three  (3)  Business  Days before the day on which a proposed conversion or continuation of such Loan is to be effective specifying (A) the Loans to be converted or continued, and, in the case of any LIBOR Rate Loan to be converted or continued,  the  last  day  of  the  Interest  Period  therefor,  (B)  the  effective  date  of  such  conversion  or continuation (which shall be a Business Day), (C) the principal amount of such Loans to be converted or continued, and (D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan. If the Borrower Agent fails to give a timely Notice of Conversion/Continuation prior to the end of the Interest Period for any LIBOR Rate Loan, then the applicable LIBOR Rate Loan shall be converted to a Base Rate Loan.  Any such automatic conversion to a Base Rate Loan shall be effective as of the last day of the Interest Period then in effect with respect to the applicable LIBOR Rate Loan.  If the Borrower  Agent requests a conversion to, or continuation of, LIBOR Rate Loans, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  Notwithstanding anything to the contrary herein, a Swingline Loan may not be converted to a LIBOR Rate Loan.  The Administrative Agent shall promptly notify the affected Lenders of such Notice of Conversion/Continuation.         SECTION 4.3     Fees.         (a)   Commitment Fee.  Commencing on the Closing Date, subject to Section 4.14(a)(iii)(A),  the BorrowersBorrower shall pay to the Administrative Agent, for the account of the Revolving Credit  Lenders, a non-refundable commitment fee (the “Commitment Fee”) at a rate per annum equal to the  Applicable  Margin  on  the  average  daily  unused  portion  of  the  Revolving  Credit  Commitment  of  the  Revolving  Credit  Lenders  (other than  the  Defaulting  Lenders,  if  any);  provided,  that  the  amount  of  outstanding Swingline Loans shall not be considered usage of the Revolving Credit Commitment, and  outstanding  L/C  Obligations  shall  be  considered  usage  of  the  Revolving  Credit  Commitment,  for  the  purpose of calculating the Commitment Fee.  The Commitment Fee shall be payable in arrears on the last  Business Day of each calendar quarter during the term of this Agreement commencing March 31, 2018  and ending on the date upon which all Obligations (other than contingent indemnification obligations not  then due) arising under the Revolving Credit Facility shall have been indefeasibly and irrevocably paid  and satisfied in full, all Letters of Credit have been terminated or expired (or been Cash Collateralized or  other arrangements with respect thereto have been made that are satisfactory to the Issuing Lender) and  the Revolving Credit Commitment has been terminated.  The Commitment Fee shall be distributed by  the Administrative Agent to the Revolving Credit Lenders (other than any Defaulting Lender) pro rata in  accordance with such Revolving Credit Lenders’ respective Revolving Credit Commitment Percentages.                                              52 103755581_3 119311063_5 

 

          (b)   Other  Fees.  The BorrowersBorrower  shall  pay  to  Wells  Fargo  Securities,  LLC,  the  Administrative  Agent  and  the  Lenders,  for  their  own  respective accounts,  fees  as  shall  have  been  separately agreed upon in writing in the amounts and at the times so specified.        SECTION 4.4      Manner of Payment.  Each payment by the BorrowersBorrower on account of the principal of or interest on the Loans or of any fee, commission or other amounts (including the Reimbursement  Obligation)  payable  to  the  Lenders  under  this  Agreement  shall  be  made  not  later  than 1:00  p.m.  on  the  date  specified  for  payment  under  this  Agreement  to  the  Administrative  Agent  at  the Administrative  Agent’s  Office  for  the  account  of  the  Lenders  entitled  to  such  payment  in  Dollars,  in immediately available funds and shall be made without any setoff, counterclaim or deduction whatsoever. Any payment received after such time but before 2:00 p.m. on such day shall be deemed a payment on such date for the purposes of Section 9.1, but for all other purposes shall be deemed to have been made on the next succeeding Business Day.  Any payment received after 2:00 p.m. shall be deemed to have been made on the next succeeding Business Day for all purposes.  Upon receipt by the Administrative Agent of each  such  payment,  the  Administrative  Agent  shall  distribute  to  each  such  Lender  at  its  address  for notices  set  forth  herein  its  pro  rata  share  in  respect  of  the  relevant  Credit  Facility  (or  other  applicable share  as  provided  herein)  of such payment and shall wire advice of the amount of such credit to each Lender.   Each  payment  to  the  Administrative  Agent  on  account  of  the  principal  of  or  interest  on  the Swingline Loans or of any fee, commission or other amounts payable to the Swingline Lender shall be made in like manner, but for the account of the Swingline Lender.  Each payment to the Administrative Agent of the Issuing Lender’s fees or L/C Participants’ commissions shall be made in like manner, but for the  account  of  the  Issuing  Lender  or  the  L/C  Participants,  as  the  case  may  be.   Each  payment  to  the Administrative Agent of Administrative Agent’s fees or expenses shall be made for the account of the Administrative Agent and any amount payable to any Lender under Sections 4.9, 4.10, 4.11 or 11.3 shall be paid to the Administrative Agent for the account of the applicable Lender.  Subject to the definition of Interest Period, if any payment under this Agreement shall be specified to be made upon a day which is not  a  Business  Day,  it  shall  be  made  on  the  next  succeeding  day  which  is  a  Business  Day  and  such extension  of  time  shall  in  such  case  be  included  in  computing  any  interest  if  payable  along  with  such payment.   Notwithstanding  the  foregoing,  if  there  exists  a  Defaulting  Lender  each  payment  by  the BorrowersBorrower  to  such  Defaulting  Lender  hereunder  shall  be  applied  in  accordance  with  Section  4.14(a)(ii).         SECTION 4.5     Evidence of Indebtedness.         (a)   Extensions of Credit.   The  Extensions  of  Credit  made  by  each  Lender  and  the  Issuing  Lender shall be evidenced by one or more accounts or records maintained by such Lender or the Issuing  Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records  maintained  by  the  Administrative  Agent  and  each  Lender  or  the  Issuing  Lender  shall  be  conclusive  absent  manifest  error  of  the  amount  of  the  Extensions  of  Credit  made  by  the  Lenders  or  the  Issuing  Lender to the BorrowersBorrower and the interest and payments thereon.  Any failure to so record or any  error in doing so shall not, however, limit or otherwise affect the obligation of the BorrowersBorrower  hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between  the accounts and records maintained by any Lender or the Issuing Lender and the accounts and records  of the Administrative Agent in respect of such matters, the accounts and records of the Administrative  Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the  Administrative  Agent,  the BorrowersBorrower  shall  execute  and  deliver  to  such  Lender  (through  the  Administrative Agent) a Revolving Credit Note, Term Loan Note and/or Swingline Note, as applicable,  which shall evidence such Lender’s Revolving Credit Loans, Term Loan Note and/or Swingline Loans,  as applicable, in addition to such accounts or records.  Each Lender may attach schedules to its Notes  and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto.                                             53 103755581_3 119311063_5 

 

          (b)   Participations.  In addition to the accounts and records referred to in subsection (a), each  Revolving  Credit  Lender  and  the  Administrative  Agent  shall  maintain  in  accordance  with  its  usual  practice  accounts  or  records  evidencing  the  purchases  and  sales  by  such  Revolving  Credit  Lender  of  participations  in  Letters  of  Credit  and  Swingline  Loans.   In  the  event  of  any  conflict  between  the  accounts  and  records  maintained  by  the  Administrative  Agent  and  the  accounts  and  records  of  any  Revolving  Credit  Lender  in  respect  of  such  matters,  the  accounts  and  records  of  the  Administrative  Agent shall control in the absence of manifest error.        SECTION 4.6      Sharing of Payments by  Lenders.   If  any  Lender  shall,  by  exercising  any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any  of  its  Loans  or  other  obligations  hereunder  resulting  in  such  Lender’s  receiving  payment  of  a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations (other than pursuant to Sections 4.9, 4.10, 4.11 or 11.3) greater than its pro rata share thereof as provided herein,  then  the  Lender  receiving  such  greater  proportion  shall  (a)  notify  the  Administrative  Agent  of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them; provided that:               (i)    if  any  such  participations  are  purchased  and  all  or  any  portion  of  the  payment        giving  rise  thereto  is  recovered,  such  participations  shall  be rescinded  and  the  purchase  price        restored to the extent of such recovery, without interest, and               (ii)   the  provisions  of  this  paragraph  shall  not  be  construed  to  apply to (A) any        payment made by the BorrowersBorrower pursuant to and in accordance with the express terms       of this Agreement (including the application of funds arising from the existence of a Defaulting       Lender), (B) the application of Cash Collateral provided for in Section 4.13 or (C) any payment       obtained by a Lender as consideration for the assignment of or sale of a participation in any of its       Loans or participations in Swingline Loans and Letters of Credit to any assignee or participant,       other  than  to  the Parent Borrower  or  any  of  its  Subsidiaries  or  Affiliates  (as  to  which the       provisions of this paragraph shall apply).  Each  Credit  Party  consents  to  the  foregoing  and  agrees,  to  the extent  it  may  effectively  do  so  under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Credit Party in the amount of such participation.         SECTION 4.7     Administrative Agent’s Clawback.         (a)   Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative  Agent shall have received notice from a Lender (i) in the case of Base Rate Loans, not later than 12:00  noon  on  the  date  of  any  proposed  borrowing  and  (ii)  otherwise, prior  to  the  proposed  date  of  any  borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of  such borrowing, the Administrative Agent may assume that such Lender has made such share available  on  such  date  in  accordance  with  Sections 2.3(b)  and  2.9  and  may,  in reliance upon such assumption,  make available to the BorrowersBorrower a corresponding amount.  In such event, if a Lender has not in  fact  made  its  share  of  the  applicable  borrowing  available  to  the  Administrative  Agent,  then  the  applicable  Lender  and  the BorrowersBorrower  severally  agree  to  pay  to  the  Administrative  Agent  forthwith on demand such corresponding amount with interest thereon, for each day from and including  the date such amount is made available to the BorrowersBorrower to but excluding the date of payment  to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of                                             54 103755581_3 119311063_5 

 

    the daily average Federal Funds Rate and a rate determined by the Administrative Agent in accordance  with banking industry rules on interbank compensation and (B) in the case of a payment to be made by  the BorrowersBorrower, the interest rate applicable to Base Rate Loans.  If the BorrowersBorrower and  such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period,  the  Administrative  Agent  shall  promptly  remit  to  the BorrowersBorrower  the  amount  of such interest  paid  by  the BorrowersBorrower  for  such  period.   If  such  Lender pays  its  share  of  the  applicable  borrowing  to  the  Administrative  Agent,  then  the  amount  so  paid shall  constitute  such  Lender’s  Loan  included in such borrowing.  Any payment by eitherthe Borrower shall be without prejudice to any claim  suchthe  Borrower  may  have  against  a  Lender  that  shall  have  failed  to  make  such  payment  to  the  Administrative Agent.         (b)   Payments by the BorrowersBorrower;  Presumptions by  Administrative  Agent.  Unless  the Administrative Agent shall have received notice from the Borrower Agent prior to the date on which  any payment is due to the Administrative Agent for the account of the Lenders, the Issuing Lender or the  Swingline  Lender  hereunder  that  the BorrowersBorrower  will  not  make  such  payment,  the  Administrative Agent may assume that the Borrowers haveBorrower has made such payment on such  date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders, the  Issuing  Lender  or  the  Swingline  Lender,  as  the  case  may  be,  the  amount  due.   In  such  event,  if  the  Borrowers haveBorrower has  not  in  fact  made  such  payment,  then  each  of  the  Lenders,  the  Issuing  Lender  or  the  Swingline  Lender,  as  the  case  maybe,  severally  agrees  to  repay  to  the  Administrative  Agent forthwith on demand the amount so distributed to such Lender, Issuing Lender or the Swingline  Lender, with interest thereon, for each day from and including the date such amount is distributed to it to  but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate  and  a  rate  determined  by  the  Administrative  Agent  in  accordance  with  banking  industry  rules  on  interbank compensation.         (c)   Nature of Obligations of Lenders Regarding Extensions of Credit.  The obligations of the  Lenders under this Agreement to make the Loans and issue or participate in Letters of Credit are several  and are not joint or joint and several.  The failure of any Lender to make available its pro rata share of  any Loan requested by eitherthe Borrower shall not relieve it or any other Lender of its obligation, if  any, hereunder to make its pro rata share of such Loan available on the borrowing date, but no Lender  shall be responsible for the failure of any other Lender to make its pro rata share of such Loan available  on the borrowing date.         SECTION 4.8     Changed Circumstances.         (a)   Circumstances Affecting LIBOR Rate Availability.  Unless and until a Replacement Rate   is  implemented in  accordance  withSubject to  clause  (c)  below,  in  connection  with  any  request  for  a  LIBOR  Rate  Loan  or  a  conversion to  or  continuation  thereof  or  otherwise,  if  for  any  reason  (i)  the  Administrative  Agent  shall  determine  (which  determination  shall  be  conclusive  and  binding  absent  manifest error) that Dollar deposits are not being offered to banks in the London interbank Eurodollar  market for the applicable amount and Interest Period of such Loan, (ii) the Administrative Agent shall  determine (which determination shall be conclusive and binding absent manifest error) that reasonable  and  adequate  means  do  not  exist  for  the  ascertaining  the  LIBOR Rate  for  such  Interest  Period  with  respect  to  a  proposed  LIBOR  Rate  Loan  or  (iii)  the  Required  Lenders  shall  determine  (which  determination  shall  be  conclusive  and  binding  absent  manifest  error)  that  the  LIBOR  Rate  does  not  adequately and fairly reflect the cost to such Lenders of making or maintaining such Loans during such  Interest Period, then the Administrative Agent shall promptly give notice thereof to the Borrower Agent.  Thereafter,  until  the  Administrative  Agent  notifies  the  Borrower  Agent  that  such  circumstances  no  longer  exist,  the  obligation  of  the  Lenders  to  make  LIBOR  Rate Loans  and  the  right  of eitherthe  Borrower to convert any Loan to or continue any Loan as a LIBOR Rate Loan shall be suspended, and                                             55 103755581_3 119311063_5 

 

    eachthe  Borrower  shall  either  (A)  repay  in  full  (or  cause  to  be  repaid  in  full)  the  then  outstanding  principal  amount  of  each  such  LIBOR  Rate  Loan  together  with  accrued  interest  thereon  (subject  to  Section 4.1(d)), on the last day of the then current Interest Period applicable to such LIBOR Rate Loan;  or  (B)  convert  the  then  outstanding  principal  amount  of each such LIBOR Rate Loan to a Base Rate  Loan as of the last day of such Interest Period.         (b)   Laws Affecting LIBOR Rate Availability.  If, after the date hereof, the introduction of, or  any change in, any Applicable Law or any change in the interpretation or administration thereof by any  Governmental  Authority,  central  bank  or  comparable  agency  charged  with  the  interpretation  or  administration thereof, or compliance by any of the Lenders (or any of their respective Lending Offices)  with  any  request  or  directive  (whether  or  not  having  the  force of  law)  of  any  such  Governmental  Authority,  central  bank  or  comparable  agency,  shall  make  it  unlawful  or  impossible  for  any  of  the  Lenders  (or  any  of  their  respective  Lending  Offices)  to  honor  its  obligations  hereunder  to  make  or  maintain any LIBOR Rate Loan, such Lender shall promptly give notice thereof to the Administrative  Agent  and  the  Administrative  Agent  shall  promptly  give  notice  to  the  Borrower  Agent  and  the  other  Lenders.  Thereafter, until the Administrative Agent notifies the Borrower Agent that such circumstances  no  longer  exist,  (i)  the  obligations  of  the  Lenders  to  make  LIBOR  Rate  Loans,  and  the  right  of  the  BorrowersBorrower to convert any Loan to a LIBOR Rate Loan or continue any Loan as a LIBOR Rate  Loan shall be suspended and thereafter the BorrowersBorrower may select only Base Rate Loans and (ii)  if any of the Lenders may not lawfully continue to maintain a LIBOR Rate Loan to the end of the then  current Interest Period applicable thereto, the applicable Loan shall immediately be converted to a Base  Rate Loan for the remainder of such Interest Period.         (c)   Alternative Rate of Interest.  Notwithstanding anything to the contrary in Section 4.8(a)   above, if the  Administrative  Agent has made the  determination  (such  determination to be  conclusive   absent manifest error) that (i) the circumstances described in Section 4.8(a)(i) or (a)(ii) have arisen and   that such circumstances are unlikely to be temporary, (ii) any applicable interest rate specified herein is   no longer a widely recognized benchmark rate for newly originated loans in the U.S. syndicated loan   market in the  applicable  currency or  (iii) the  applicable  supervisor or  administrator (if any) of any   applicable interest rate specified herein or any Governmental Authority having, or purporting to have,   jurisdiction over the Administrative Agent has made a public statement identifying a specific date after   which any applicable interest rate specified herein shall no longer be used for determining interest rates   for loans in the U.S. syndicated loan market in the applicable currency, then the Administrative Agent   may, to the extent practicable (with the Borrower’s consent, and as determined by the Administrative   Agent to be generally in accordance with similar situations in other transactions in which it is serving as   administrative  agent or  otherwise  consistent  with market  practice  generally),  establish a  replacement   interest rate (the “Replacement Rate”), in which case, the Replacement Rate shall, subject to the next two   sentences, replace such applicable interest rate for all purposes under the Loan Documents unless and   until (A) an event described in Section 4.8(a)(i), (a)(ii), (c)(i), (c)(ii) or (c)(iii) occurs with respect to the   Replacement Rate or (B) the Administrative Agent (or the Required Lenders through the Administrative   Agent) notifies the Borrower that the Replacement Rate does not adequately and fairly reflect the cost to   the  Lenders of  funding the  Loans  bearing  interest at the  Replacement  Rate.  In  connection  with the   establishment and application of the Replacement Rate, this Agreement and the other Loan Documents   shall be  amended solely  with the  consent of the  Administrative  Agent and the  Borrower, as may be   necessary or  appropriate, in the  opinion of the  Administrative  Agent, to  effect the  provisions of this   Section 4.8(c).   Notwithstanding  anything to the  contrary in this  Agreement or the other Loan   Documents  (including,  without  limitation, Section  11.2), such  amendment shall  become  effective   without any further action or consent of any other party to this Agreement so long as the Administrative   Agent shall not have received, within five (5) Business Days of the delivery of such amendment to the   Lenders, written notices from such Lenders that in the aggregate constitute Required Lenders, with each   such  notice  stating that such  Lender  objects to such  amendment (which such  notice shall  note  with                                             56 103755581_3 119311063_5 

 

    specificity the particular provisions of the amendment to which such Lender objects).  To the extent the   Replacement Rate is  approved by the  Administrative  Agent in  connection  with this clause (c), the   Replacement Rate shall be applied in a manner consistent with market practice; provided that, in each   case, to the extent such market  practice is not  administratively  feasible for the  Administrative  Agent,   such Replacement Rate shall be applied as otherwise reasonably determined by the Administrative Agent   (it being  understood that any such  modification by the  Administrative  Agent shall  not  require the   consent of, or consultation with, any of the Lenders).Effect of Benchmark Transition Event.               (i)    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, the  Administrative  Agent and the  Borrower may amend this        Agreement to  replace LIBOR  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 the Administrative Agent has posted such proposed amendment to all Lenders        and the  Borrower so long as the  Administrative 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 the  Administrative  Agent  written        notice that such  Required  Lenders  accept such  amendment. No  replacement of LIBOR  with a        Benchmark  Replacement  pursuant to this  Section 4.8(c)  will  occur prior to the  applicable        Benchmark Transition Start Date.               (ii)   Benchmark  Replacement  Conforming  Changes. In  connection  with the        implementation of a  Benchmark  Replacement, the  Administrative  Agent  will have the  right to        make  Benchmark  Replacement  Conforming  Changes  from  time to  time  and,  notwithstanding        anything to the contrary herein or in any other Loan Document, any amendments implementing        such  Benchmark  Replacement  Conforming  Changes  will  become  effective  without any further        action or consent of any other party to this Agreement.               (iii)  Notices; Standards for Decisions and Determinations.  The Administrative Agent        will  promptly  notify the  Borrower and the  Lenders of (A) 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, (B) the  implementation of any        Benchmark  Replacement, (C) the  effectiveness of any  Benchmark  Replacement  Conforming        Changes and (D) the  commencement or  conclusion of any  Benchmark  Unavailability  Period.         Any  determination,  decision or  election that may be made by the  Administrative  Agent or        Lenders pursuant to this Section 4.8(c), 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 4.8(c).               (iv)   Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the        commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for        a LIBOR Rate Loan of,  conversion to or  continuation of LIBOR Rate  Loans to be  made,        converted or  continued  during any  Benchmark  Unavailability Period  and,  failing that, the        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        the Base Rate based upon LIBOR will not be used in any determination of the Base Rate.                                              57 103755581_3 119311063_5 

 

         SECTION 4.9      Indemnity.  The Borrowers, jointly and severally (subject to the limitations  of Section 11.22), hereby indemnifyBorrower hereby indemnifies each of the Lenders against any loss or expense (including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain a LIBOR Rate Loan or from fees payable to terminate the deposits from which such funds were obtained) which may arise or be attributable to each Lender’s obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any Loan (a) as a consequence of any failure by eitherthe Borrower to make any payment when due of any amount due hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of athe Borrower to borrow or continue a LIBOR Rate Loan or convert  to  a  LIBOR  Rate  Loan  on  a  date  specified  therefor  in  a Notice  of  Borrowing  or  Notice  of Conversion/Continuation or (c) due to any payment, prepayment or conversion of any LIBOR Rate Loan on a date other than the last day of the Interest Period therefor.  The amount of such loss or expense shall be determined, in the applicable Lender’s sole discretion, based upon the assumption that such Lender funded its LIBOR Rate Loans in the London interbank market and using any reasonable attribution or averaging  methods  which  such  Lender  deems  appropriate  and  practical.   A  certificate  of  such  Lender setting  forth  the  basis  for  determining  such  amount  or  amounts necessary  to  compensate  such  Lender shall be forwarded to the Borrower Agent through the Administrative Agent and shall be conclusively presumed to be correct save for manifest error.         SECTION 4.10    Increased Costs.         (a)   Increased Costs Generally.  If any Change in Law shall:               (i)    impose,  modify  or  deem  applicable  any  reserve,  special  deposit,  compulsory       loan, insurance charge or similar requirement against assets of, deposits with or for the account       of,  or  advances,  loans  or  other  credit  extended  or  participated  in  by,  any  Lender  (except  any       reserve requirement reflected in the LIBOR Rate) or any Issuing Lender;               (ii)   subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes       described  in  clauses  (b)  through  (d)  of  the  definition  of  Excluded  Taxes  and  (C)  Connection       Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or       its deposits, reserves, other liabilities or capital attributable thereto; or               (iii)  impose on any Lender or the Issuing Lender or the London interbank market any       other  condition,  cost  or  expense  (other  than  Taxes)  affecting  this  Agreement  or  LIBOR  Rate       Loans made by such Lender or any Letter of Credit or participation therein;  and the result of any of the foregoing shall be to increase the cost to such Lender, the Issuing Lender or such other Recipient of making, converting to, continuing or maintaining any Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender, the Issuing Lender or such other  Recipient  of  participating  in,  issuing  or  maintaining  any  Letter  of  Credit  (or  of  maintaining  its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or  receivable  by  such  Lender,  the  Issuing  Lender  or  other  Recipient  hereunder  (whether  of  principal, interest  or  any  other  amount)  then,  upon  written  request  of  such  Lender,  the  Issuing  Lender  or  other Recipient, the BorrowersBorrower shall promptly pay to any such Lender, the Issuing Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, such Issuing  Lender  or  other  Recipient,  as  the  case  may  be,  for  such  additional  costs  incurred  or  reduction suffered.         (b)   Capital Requirements.  If any Lender or the Issuing Lender determines that any Change  in  Law  affecting  such  Lender  or  the  Issuing  Lender  or  any  Lending  Office  of  such  Lender  or  such  Lender’s or the Issuing Lender’s holding company, if any, regarding capital or liquidity requirements,                                             58 103755581_3 119311063_5 

 

    has  or  would  have  the  effect  of  reducing  the  rate  of  return  on such  Lender’s  or  the  Issuing  Lender’s  capital  or  on  the  capital  of  such  Lender’s  or  the  Issuing  Lender’s  holding  company,  if  any,  as  a  consequence of this Agreement, the Revolving Credit Commitment of such Lender or the Loans made  by,  or  participations  in  Letters  of  Credit  or  Swingline  Loans  held  by,  such  Lender,  or  the  Letters  of  Credit issued by the Issuing Lender, to a level below that which such Lender or the Issuing Lender or  such  Lender’s  or  the  Issuing  Lender’s  holding  company  could  have  achieved  but  for  such  Change  in  Law (taking into consideration such Lender’s or the Issuing Lender’s policies and the policies of such  Lender’s or the Issuing Lender’s holding company with respect to capital adequacy or liquidity), then  from time to time upon written request of such Lender or the Issuing Lender the BorrowersBorrower  shall promptly pay to such Lender or the Issuing Lender, as the case may be, such additional amount or  amounts as will compensate such Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s  holding company for any such reduction suffered.         (c)   Certificates for  Reimbursement.   A  certificate  of  a  Lender,  the  Issuing  Lender  or  such  other Recipient setting forth the amount or amounts necessary to compensate such Lender or the Issuing  Lender,  such  other  Recipient  or  any  of  their  respective  holding  companies,  as  the  case  may  be,  as  specified in paragraph (a) or (b) of this Section and delivered to the Borrower Agent, shall be conclusive  absent manifest error.  The BorrowersBorrower shall pay such Lender, the Issuing Lender or such other  Recipient, as the case may be, the amount shown as due on any such certificate within ten (10) days after  receipt thereof.         (d)   Delay in Requests.  Failure or delay on the part of any Lender, the Issuing Lender or such  other Recipient to demand compensation pursuant to this Section shall not constitute a waiver of such  Lender’s, the Issuing Lender’s or such other Recipient’s right to demand such compensation; provided  that the BorrowersBorrower shall not be required to compensate any Lender, the Issuing Lender or any  other Recipient pursuant to this Section for any increased costs incurred or reductions suffered more than  six (6) months prior to the date that such Lender, the Issuing Lender or such other Recipient, as the case  may  be,  notifies  the  Borrower  Agent  of  the  Change  in  Law  giving  rise  to  such  increased  costs  or  reductions,  and  of  such  Lender’s,  the  Issuing  Lender’s  or  such other  Recipient’s  intention  to  claim  compensation therefor (except that if the Change in Law giving rise to such increased costs or reductions  is  retroactive,  then  the  six-month  period  referred  to  above  shall  be  extended  to  include  the  period  of  retroactive effect thereof).        SECTION 4.11     Taxes.         (a)   Defined Terms.  For purposes of this Section 4.11, the term “Lender” includes the Issuing  Lender and the term “Applicable Law” includes FATCA.         (b)   Payments Free of Taxes.  Any and all payments by or on account of any obligation of any  Credit Party under any Loan Document shall be made without deduction or withholding for any Taxes,  except  as  required  by  Applicable  Law.   If  any  Applicable  Law  (as  determined  in  the  good  faith  discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from  any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to  make such deduction or withholding and shall timely pay the full amount deducted or withheld to the  relevant Governmental Authority in accordance with Applicable Law and, if such Tax is an Indemnified  Tax, then the sum payable by the applicable Credit Party shall be increased as necessary so that, after  such deduction or withholding has been made (including such deductions and withholdings applicable to  additional sums payable under this Section), the applicable Recipient receives an amount equal to the  sum it would have received had no such deduction or withholding been made.                                              59 103755581_3 119311063_5 

 

          (c)   Payment of Other Taxes by the Credit Parties.  The Credit Parties shall timely pay to the  relevant  Governmental  Authority  in  accordance  with  Applicable  Law,  or  at  the  option  of  the  Administrative Agent timely reimburse it for the payment of, any Other Taxes.         (d)   Indemnification by the Credit  Parties.   The  Credit  Parties  shall  jointly  and  severally  indemnify each Recipient (subject to the limitations of Section 11.22), within ten (10) days after demand  therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted  on or attributable to amounts payable under this Section) payable or paid by such Recipient or required  to  be  withheld  or  deducted  from  a  payment  to  such  Recipient  and  any  reasonable  expenses  arising  therefrom  or  with  respect  thereto,  whether  or  not  such  Indemnified  Taxes  were  correctly  or  legally  imposed  or  asserted  by  the  relevant  Governmental  Authority.   A certificate  as  to  the  amount  of  such  payment or liability delivered to the Borrower Agent by a Lender (with a copy to the Administrative  Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive  absent manifest error.         (e)   Indemnification by the  Lenders.   Each  Lender  and  each  Issuing  Lender  shall  severally  indemnify the Administrative Agent and the Credit Parties (with respect to clauses (ii) and (iii) below),  within ten (10) Business Days after written demand therefor, for (i) any Indemnified Taxes attributable  to  such  Lender  (but  only  to  the  extent  that  any  Credit  Party  has  not  already  indemnified  the  Administrative  Agent  for  such  Indemnified  Taxes  and  without  limiting  the  obligation  of  the  Credit  Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of  Section  11.9(d)  relating  to  the  maintenance  of  a  Participant  Register  and  (iii)  any  Excluded  Taxes  attributable to such Lender, in each case, that are payable or paid by the Administrative Agent or any  Credit Party, as the case may be, in connection with any Loan Document, and any reasonable expenses  arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or  asserted  by  the  relevant  Governmental  Authority.   A  certificate  as  to  the  amount  of  such  payment  or  liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to setoff and apply any and all amounts at any  time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent  to  the  Lender  from  any  other  source  against  any  amount  due  to  the  Administrative  Agent  under  this  paragraph (e).  The agreements in this paragraph (e) shall survive the resignation and/or replacement of  the Administrative Agent.         (f)   Evidence of Payments.  As soon as practicable after any payment of Taxes by any Credit  Party to a Governmental Authority pursuant to this Section 4.11, such Credit Party shall deliver to the  Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority  evidencing  such  payment,  a  copy  of  the  return  reporting  such  payment  or  other  evidence  of  such  payment reasonably satisfactory to the Administrative Agent.         (g)   Status of Lenders.               (i)    Any Lender that is entitled to an exemption from or reduction of withholding Tax       with respect to payments made under any Loan Document shall deliver to the Borrower Agent       and  the  Administrative  Agent,  at  the  time  or  times  reasonably  requested  by  the       BorrowersBorrower  or  the  Administrative  Agent,  such  properly  completed  and  executed       documentation reasonably requested by the BorrowersBorrower or the Administrative Agent as       will permit such payments to be made without withholding or at a reduced rate of withholding.       In addition, any Lender, if reasonably requested by the BorrowersBorrower or the Administrative       Agent,  shall  deliver  such  other  documentation  prescribed  by  Applicable  Law  or  reasonably       requested  by  the BorrowersBorrower  or  the  Administrative  Agent  as  will  enable  the       BorrowersBorrower  or  the  Administrative  Agent  to  determine  whether  or  not  such  Lender  is                                             60 103755581_3 119311063_5 

 

         subject to backup withholding or information reporting requirements.  Notwithstanding anything       to the contrary in the preceding two sentences, the completion, execution and submission of such       documentation  (other  than  such  documentation  set  forth  in  Section  4.11(g)(ii)(A),  (ii)(B) and        (ii)(D)  below)  shall  not  be  required  if  in  the  Lender’s  reasonable  judgment  such  completion,        execution or submission would subject such Lender to any material unreimbursed cost or expense        or would materially prejudice the legal or commercial position of such Lender.               (ii)   Without limiting the generality of the foregoing:                      (A)    (i) Any Lender that is a U.S. Person shall deliver to the Borrower Agent              and the Administrative Agent on or prior to the date on which such Lender becomes a              Lender  under  this  Agreement  (and  from  time  to  time  thereafter  upon  the  reasonable              request of the Borrower Agent or the Administrative Agent), executed originals or copies              of  IRS  Form  W-9  certifying  that  such  Lender  is  exempt  from  United  States  federal              backup  withholding  tax  and  (ii)  if  the  Administrative  Agent  is a  U.S.  Person,  it  shall              deliver to the Borrower Agent on or prior to the date on which the Administrative Agent              becomes  the  Administrative  Agent  under  this  Agreement  (and  from  time  to  time              thereafter  upon  the  reasonable  request  of  the  Borrower  Agent)  an  executed  original  or              copy of IRS Form W-9 certifying that the Administrative Agent is exempt from United              States federal backup withholding tax;                      (B)    any  Foreign  Lender  shall,  to  the  extent  it  is  legally  entitled to  do  so,              deliver to the Borrower Agent and the Administrative Agent (in such number of copies as              shall be requested by the recipient) on or prior to the date on which such Foreign Lender              becomes  a  Lender  under  this  Agreement  (and  from  time  to  time  thereafter  upon  the              reasonable request of the Borrower Agent or the Administrative Agent), whichever of the              following is applicable:                             (1)   in  the  case  of  a  Foreign  Lender  claiming  the  benefits  of  an                     income tax treaty to which the United States is a party (x) with  respect  to                     payments of interest under any Loan Document, executed originals or copies of                     IRS  Form  W-8BEN-E  (or  any  successor  form),  as  applicable,  establishing  an                     exemption from, or reduction of, United States federal withholding Tax pursuant                     to  the  “interest”  article  of  such  tax  treaty  and  (y)  with  respect  to  any  other                     applicable payments under any Loan Document, IRS Form W-8BEN-E (or any                     successor form), establishing an exemption from, or reduction of, United States                     federal  withholding  Tax  pursuant  to  the  “business  profits”  or  “other  income”                     article of such tax treaty;                             (2)   executed originals or copies of IRS Form W-8ECI;                             (3)   in  the  case  of  a  Foreign  Lender  claiming  the  benefits  of  the                     exemption  for  portfolio  interest  under  Section  881(c)  of  the  Code,  (x)  a                     certificate substantially in the form of Exhibit H-1 to the effect that such Foreign                     Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a                     “10  percent  shareholder”  of eitherthe  Borrower  within  the  meaning  of  Section                     881(c)(3)(B)  of  the  Code,  or  a  “controlled  foreign  corporation”  described  in                     Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y)                     executed originals or copies of IRS Form W-8BEN-E (or any successor form),;                     or                                             61 103755581_3 119311063_5 

 

                             (4)    to  the  extent  a  Foreign  Lender  is  not  the  beneficial  owner,                     executed originals or copies of IRS Form W-8IMY, accompanied by IRS Form                     W-8ECI, IRS Form W-8BEN-E (or any successor form), a U.S. Tax Compliance                     Certificate  substantially  in  the  form  of  Exhibit H-2  or  Exhibit H-3,  IRS  Form                     W-9,  and/or  other  certification  documents  from  each  beneficial owner,  as                     applicable; provided that if the Foreign Lender is a partnership and one or more                     direct  or  indirect  partners  of  such  Foreign  Lender  are  claiming  the  portfolio                     interest  exemption,  such  Foreign  Lender  may  provide  a  U.S.  Tax Compliance                     Certificate substantially in the form of Exhibit H-4 on behalf of each such direct                     and indirect partner;                      (C)    any  Foreign  Lender  shall,  to  the  extent  it  is  legally  entitled to  do  so,              deliver to the Borrower Agent and the Administrative Agent (in such number of copies as              shall be requested by the recipient) on or prior to the date on which such Foreign Lender              becomes  a  Lender  under  this  Agreement  (and  from  time  to  time  thereafter  upon  the              reasonable  request  of  the  Borrower  Agent  or  the  Administrative  Agent),  executed              originals  or  copies  of  any  other  form  prescribed  by  Applicable Law  as  a  basis  for              claiming exemption from or a reduction in United States federal withholding Tax, or if              applicable,  any  foreign  withholding  Tax,  duly  completed,  together with such              supplementary  documentation  as  may  be  prescribed  by  Applicable Law  to  permit  the              BorrowersBorrower  or  the  Administrative  Agent  to  determine  the  withholding  or              deduction required to be made; and                      (D)    if  a  payment  made  to  a  Lender  under  any  Loan  Document  would  be              subject  to  United  States  federal  withholding  Tax  imposed  by  FATCA  if  such  Lender              were to fail to comply with the applicable reporting requirements of FATCA (including              those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender              shall deliver to the Borrower Agent and the Administrative Agent at the time or times              prescribed  by  law  and  at  such  time  or  times  reasonably  requested  by  the              BorrowersBorrower  or  the  Administrative  Agent  such  documentation  prescribed  by              Applicable  Law  (including  as  prescribed by Section 1471(b)(3)(C)(i) of the Code) and              such  additional  documentation  reasonably  requested  by  the BorrowersBorrower or the              Administrative  Agent  as  may  be  necessary  for  the BorrowersBorrower  and  the              Administrative Agent to comply with their obligations under FATCA and to determine              that  such  Lender  has  complied  with  such  Lender’s  obligations  under  FATCA  or  to              determine the amount to deduct and withhold from such payment.  Solely for purposes of              this clause (D), “FATCA” shall include any amendments made to FATCA after the date              of this Agreement.        Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete  or  inaccurate  in  any  respect,  it  shall  update  such  form  or  certification  or  promptly  notify  the Borrower Agent and the Administrative Agent in writing of its legal inability to do so.         (h)   Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in  good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this  Section 4.11 (including by the payment of additional amounts pursuant to this Section 4.11), it shall pay  to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments  made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket  expenses (including Taxes) of such indemnified party and without interest (other than any interest paid  by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon  the  request  of  such  indemnified  party,  shall  repay  to  such  indemnified  party  the  amount  paid  over                                             62 103755581_3 119311063_5 

 

    pursuant  to  this  paragraph (h)  (plus  any  penalties,  interest  or  other  charges  imposed  by  the relevant  Governmental Authority) in the event that such indemnified party is required to repay such refund to  such  Governmental  Authority.   Notwithstanding  anything  to  the  contrary  in  this  paragraph (h),  in  no  event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this  paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax  position than the indemnified party would have been in if the Tax subject to indemnification and giving  rise  to  such  refund  had  not  been  deducted,  withheld  or  otherwise  imposed  and  the  indemnification  payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not  be construed to require any indemnified party to make available its Tax returns (or any other information  relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.         (i)   Survival.  Each party’s obligations under this Section 4.11 shall survive the resignation or  replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender,  the termination of the Revolving Credit Commitments and the repayment, satisfaction or discharge of all  obligations under any Loan Document.        SECTION 4.12     Mitigation Obligations; Replacement of Lenders.         (a)   Designation of a Different Lending Office.  If any Lender requests compensation under  Section 4.10, or requires eitherthe Borrower to pay any Indemnified Taxes or additional amounts to any  Lender  or  any  Governmental  Authority  for  the  account  of  any  Lender  pursuant  to  Section 4.11,  then  such  Lender  shall,  at  the  request  of  the BorrowersBorrower,  use  reasonable  efforts  to  designate  a  different  Lending  Office  for  funding  or  booking  its  Loans  hereunder  or  to  assign  its  rights  and  obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender,  such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 4.10  or  Section 4.11,  as  the  case  may  be,  in  the  future  and  (ii)  would  not  subject such  Lender  to  any  unreimbursed  cost  or  expense  and  would  not  otherwise  be  disadvantageous  to  such  Lender.   The  BorrowersBorrower hereby agreeagrees to pay all reasonable costs and expenses incurred by any Lender  in connection with any such designation or assignment.         (b)   Replacement of Lenders.  If any Lender requests compensation under Section 4.10, or if  the Borrowers areBorrower is  required  to  pay  any  Indemnified  Taxes  or  additional  amounts  to any  Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.11, and, in  each case, such Lender has declined or is unable to designate a different Lending Office in accordance  with  Section  4.12(a),  or  if  any  Lender  is  a  Defaulting  Lender  or  a  Non-Consenting  Lender,  then  the  BorrowersBorrower  may,  at theirits  sole  expense  and  effort,  upon  notice  to  such  Lender  and  the  Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with  and subject to the restrictions contained in, and consents required by, Section 11.9), all of its interests,  rights  (other  than  its  existing  rights  to  payments  pursuant  to Section 4.10  or  Section 4.11)  and  obligations  under  this  Agreement and  the  related  Loan  Documents  to  an  Eligible  Assignee  that  shall  assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment);  provided that:               (i)    the BorrowersBorrower  shall  have  paid  to  the  Administrative  Agent  the       assignment fee (if any) specified in Section 11.9;               (ii)   such Lender shall have received payment of an amount equal to the outstanding        principal  of  its  Loans  and  participations  in  Letters  of  Credit,  accrued  interest  thereon,  accrued       fees  and  all  other  amounts  payable  to  it  hereunder  and  under  the  other  Loan  Documents       (including any amounts under Section 4.9) from the assignee (to the extent of such outstanding                                             63 103755581_3 119311063_5 

 

         principal  and  accrued  interest  and  fees)  or  the BorrowersBorrower  (in  the  case  of  all  other       amounts);               (iii)  in the case of any such assignment resulting from a claim for compensation under       Section 4.10  or  payments  required  to  be  made  pursuant  to  Section 4.11,  such  assignment  will       result in a reduction in such compensation or payments thereafter;               (iv)   such assignment does not conflict with Applicable Law; and               (v)    in  the  case  of  any  assignment  resulting  from  a  Lender  becoming a        Non-Consenting  Lender,  the  applicable  assignee  shall  have  consented  to  the  applicable        amendment, waiver or consent.         A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result  of  a  waiver  by  such  Lender  or  otherwise,  the  circumstances  entitling  the BorrowersBorrower to require such assignment and delegation cease to apply.         (c)   Selection of a Lending Office.  Subject to Section 4.12(a), each Lender may make any  Loan to athe Borrower through any Lending Office; provided that the exercise of this option shall not  affect  the  obligations  of suchthe  Borrower  to  repay  the  Loan  in accordance  with  the  terms  of  this  Agreement or otherwise alter the rights of the parties hereto.         SECTION 4.13    Cash  Collateral.   At  any  time  that  there  shall  exist  a  Defaulting  Lender, within one Business Day following the written request of the Administrative Agent, the Issuing Lender or the  Swingline  Lender,  the BorrowersBorrower  shall  Cash  Collateralize  the  Fronting  Exposure  of  the Issuing  Lender  and/or  the  Swingline  Lender,  as  applicable,  with  respect  to  such  Defaulting  Lender (determined  after  giving  effect  to  Section  4.14(a)(iv)  and  any  Cash  Collateral  provided  by  such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.         (a)   Grant of Security Interest.  The BorrowersBorrower, and to the extent provided by any  Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of  the Issuing Lender and the Swingline Lender, and agrees to maintain, a first priority security interest in  all  such  Cash  Collateral  as  security  for  the  Defaulting  Lender’s  obligation  to  fund  participations  in  respect of L/C Obligations and Swingline Loans, to be applied pursuant to subsection (b) below.  If at  any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any  Person  other  than  the  Administrative  Agent,  the  Issuing  Lender and  the  Swingline  Lender  as  herein  provided (other than pursuant to Section 8.2(j)), or that the total amount of such Cash Collateral is less  than  the  Minimum  Collateral  Amount,  the BorrowersBorrower  will,  promptly  upon  demand  by  the  Administrative  Agent,  pay  or  provide  to  the  Administrative  Agent  additional  Cash  Collateral  in  an  amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the  Defaulting Lender).         (b)   Application.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  Cash  Collateral  provided  under  this  Section 4.13  or  Section 4.14  in  respect  of  Letters  of  Credit  and  Swingline  Loans  shall  be  applied  to  the  satisfaction  of  the  Defaulting  Lender’s  obligation  to  fund  participations  in  respect  of  L/C  Obligations  and  Swingline  Loans  (including,  as  to  Cash  Collateral  provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral  was so provided, prior to any other application of such property as may otherwise be provided for herein.         (c)   Termination of  Requirement.   Cash  Collateral  (or  the  appropriate  portion  thereof)  provided  to  reduce  the  Fronting  Exposure  of  the  Issuing  Lender and/or  the  Swingline  Lender,  as                                             64 103755581_3 119311063_5 

 

    applicable,  shall  no  longer  be  required  to  be  held  as  Cash  Collateral  pursuant  to  this  Section 4.13  following  (i)  the  elimination  of  the  applicable  Fronting  Exposure  (including  by  the  termination  of  Defaulting  Lender  status  of  the  applicable  Lender),  or  (ii)  the  determination  by  the  Administrative  Agent, the Issuing Lender and the Swingline Lender that there exists excess Cash Collateral; provided  that, subject to Section 4.14, the Person providing Cash Collateral, the Issuing Lender and the Swingline  Lender may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or  other obligations; and provided further that to the extent that such Cash Collateral was provided by the  BorrowersBorrower, such Cash Collateral shall remain subject to the security interest granted pursuant  to the Loan Documents.        SECTION 4.14     Defaulting Lenders.         (a)   Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in  this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no  longer a Defaulting Lender, to the extent permitted by Applicable Law:               (i)    Waivers and  Amendments.   Such  Defaulting  Lender’s  right  to  approve  or        disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted        as set forth in the definition of Required Lenders and Section 11.2.               (ii)   Defaulting  Lender  Waterfall.  Any  payment  of  principal,  interest,  fees  or  other       amounts  received  by  the  Administrative  Agent  for  the  account  of  such  Defaulting  Lender       (whether voluntary or mandatory, at maturity, pursuant to Article IX or otherwise) or received by       the Administrative Agent from a Defaulting Lender pursuant to Section 11.4 shall be applied at       such  time  or  times  as  may  be  determined  by  the Administrative Agent as follows: first, to the        payment  of  any  amounts  owing  by  such  Defaulting  Lender  to  the  Administrative  Agent        hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting        Lender to the Issuing Lender or the Swingline Lender hereunder; third, to Cash Collateralize the       Fronting  Exposure  of  the  Issuing Lender  and  the  Swingline  Lender  with  respect  to  such        Defaulting  Lender  in  accordance  with  Section 4.13; fourth,  as  the BorrowersBorrower may       request (so long as no Default or Event of Default exists), to the funding of any Loan or funded       participation in respect of which such Defaulting Lender has failed to fund its portion thereof as       required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by       the  Administrative  Agent  and  the BorrowersBorrower,  to  be  held  in  a  deposit  account  and       released  pro rata  in  order  to  (A)  satisfy  such Defaulting  Lender’s  potential  future  funding       obligations with respect to Loans and funded participations under this Agreement and (B) Cash       Collateralize  the  Issuing  Lender’s  future  Fronting  Exposure  with  respect  to  such  Defaulting       Lender with respect to future Letters of Credit issued under this Agreement, in accordance with       Section 4.13; sixth, to the payment of any amounts owing to the Lenders, the Issuing Lender or        the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by        any  Lender,  the  Issuing  Lender  or  the  Swingline  Lender  against such  Defaulting  Lender  as  a        result  of  such  Defaulting  Lender’s  breach  of  its  obligations  under  this  Agreement; seventh,  so        long as no Default or Event of Default exists, to the payment of any amounts owing to eitherthe       Borrower as a result of any judgment of a court of competent jurisdiction obtained by suchthe       Borrower  against  such  Defaulting  Lender  as  a  result  of  such  Defaulting  Lender's  breach  of  its       obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed        by  a  court  of  competent  jurisdiction;  provided  that  if  (1)  such  payment  is  a  payment  of  the       principal amount of any Loans or funded participations in Letters of Credit or Swingline Loans in       respect of which such Defaulting Lender has not fully funded its appropriate share, and (2) such       Loans were made or the related Letters of Credit or Swingline Loans were issued at a time when       the conditions set forth in Section 5.2 were satisfied or waived, such payment shall be applied                                             65 103755581_3 119311063_5 

 

         solely  to  pay  the  Loans  of,  and funded  participations  in  Letters  of  Credit  or  Swingline  Loans        owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of        any  Loans  of,  or  funded  participations  in  Letters  of  Credit  or Swingline  Loans  owed  to,  such        Defaulting Lender until such time as all Loans and funded and unfunded participations in L/C        Obligations  and  Swingline  Loans  are  held  by  the  Lenders  pro rata  in  accordance  with  the       Revolving  Credit  Commitments  under  the  applicable  Revolving  Credit  Facility  without  giving       effect to Section 4.14(a)(iv).  Any payments, prepayments or other amounts paid or payable to a       Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to       post Cash Collateral pursuant to this Section 4.14(a)(ii) shall be deemed paid to and redirected by       such Defaulting Lender, and each Lender irrevocably consents hereto.               (iii)  Certain Fees.                      (A)    No Defaulting Lender shall be entitled to receive any Commitment Fee              for  any  period  during  which  that  Lender  is  a  Defaulting  Lender (and  the              BorrowersBorrower shall not be required to pay any such fee that otherwise would have              been required to have been paid to that Defaulting Lender).                      (B)    Each  Defaulting  Lender  shall  be  entitled  to  receive  letter  of  credit              commissions  pursuant  to  Section 3.3  for  any  period  during  which  that  Lender  is  a              Defaulting  Lender  only  to  the  extent  allocable  to  its  Revolving  Credit  Commitment              Percentage  of  the  stated  amount  of  Letters  of  Credit  for  which it  has  provided  Cash              Collateral pursuant to Section 4.13.                      (C)    With respect to any Commitment Fee or letter of credit commission not              required  to  be  paid  to  any  Defaulting  Lender  pursuant  to  clause (A)  or  (B)  above,  the              BorrowersBorrower shall (1) pay to each Non-Defaulting Lender that portion of any such              fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s              participation  in  L/C  Obligations  or  Swingline  Loans  that  has  been  reallocated  to  such              Non-Defaulting Lender pursuant to clause (iv) below, (2) pay to the Issuing Lender and              Swingline Lender, as applicable, the amount of any such fee otherwise payable to such              Defaulting Lender to the extent allocable to the Issuing Lender’s or Swingline Lender’s              Fronting  Exposure  to  such  Defaulting  Lender,  and  (3)  not  be  required  to  pay  the              remaining amount of any such fee.               (iv)   Reallocation of Participations to Reduce Fronting Exposure.  All or any part of       such  Defaulting  Lender’s  participation  in  L/C  Obligations  and  Swingline  Loans  shall  be       reallocated  among  the  Non-Defaulting  Lenders  in  accordance  with  their  respective  Revolving       Credit  Commitment  Percentages  (calculated  without  regard  to  such  Defaulting  Lender’s       Revolving Credit Commitment) but only to the extent that (x) the conditions set forth in Section        5.2 are  satisfied at the  time of such  reallocation  (and,  unless the  Borrower  Agent shall have        otherwise notified the Administrative Agent at such time, the Borrowers shall be deemed to have        represented and  warranted that such  conditions are  satisfied at such  time), and (y) such       reallocation  does  not  cause  the  aggregate  Revolving  Credit  Exposure  of  any  Non-Defaulting       Lender  to  exceed  such  Non-Defaulting  Lender’s  Revolving  Credit Commitment.   Subject  to       Section 11.26, 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.                                              66 103755581_3 119311063_5 

 

                (v)    Cash Collateral, Repayment of Swingline Loans.  If the reallocation described in        clause (iv) above cannot, or can only partially, be effected, the BorrowersBorrower shall, without       prejudice to any right or remedy available to it hereunder or under law, (x) first, repay Swingline        Loans  in  an  amount  equal  to  the  Swingline  Lender’s  Fronting  Exposure  and  (y)  second,  Cash        Collateralize the Issuing Lender’s Fronting Exposure in accordance with the procedures set forth        in Section 4.13.         (b)   Defaulting  Lender Cure.   If  the BorrowersBorrower,  the  Administrative  Agent,  the  Issuing  Lender  and  the  Swingline  Lender  agree  in  writing  that  a  Lender  is  no  longer  a  Defaulting  Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date  specified in such notice and subject to any conditions set forth therein (which may include arrangements  with  respect  to  any  Cash  Collateral),  such  Lender  will,  to  the extent  applicable,  purchase  at  par  that  portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent  may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of  Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the Revolving Credit  Commitments  and  outstanding  Term  Loans  (without  giving  effect  to  Section  4.14(a)(iv)),  whereupon  such  Lender  will  cease  to  be  a  Defaulting  Lender;  provided  that  no  adjustments  will  be  made  retroactively with respect to fees accrued or payments made by or on behalf of the BorrowersBorrower  while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise  expressly  agreed  by  the  affected  parties, no change hereunder from Defaulting Lender to Lender will  constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been  a Defaulting Lender.                                        ARTICLE V                       CONDITIONS OF CLOSING AND BORROWING        SECTION 5.1      Conditions to Closing and Initial Extensions of Credit.  The obligation of the Lenders to close this Agreement and to make the initial Loans or issue or participate in the initial Letter of Credit, if any, is subject to the satisfaction of each of the following conditions:         (a)   Executed Loan Documents.  This Agreement, a Revolving Credit Note in favor of each  Revolving Credit Lender requesting a Revolving Credit Note, a Term Loan Note in favor of each Term  Loan Lender requesting a Term Loan Note, a Swingline Note in favor of the Swingline Lender (in each  case,  if  requested  thereby),  the  Security  Documents  and  the  Guaranty  Agreements,  together  with  any  other  applicable  Loan  Documents,  shall  have  been  duly  authorized,  executed  and  delivered  to  the  Administrative Agent by the parties thereto, shall be in full force and effect and no Default or Event of  Default shall exist hereunder or thereunder.         (b)   Closing  Certificates; Etc.   The  Administrative  Agent  shall  have  received  each  of  the  following in form and substance reasonably satisfactory to the Administrative Agent:               (i)    Officer’s  Certificate.   A  certificate  from  a  Responsible  Officer  of  the Parent        Borrower in form and substance reasonably satisfactory to the Administrative Agent.               (ii)   Certificate of  Secretary of  each Credit Party.   A  certificate  of  a  Responsible       Officer of each Credit Party certifying as to the incumbency and genuineness of the signature of       each officer of such Credit Party executing any applicable Loan Documents to which it is a party       and  certifying  that  attached  thereto  is  a  true,  correct  and  complete  copy  of  (A)  the  articles  or       certificate of incorporation or formation (or equivalent), as applicable, of such Credit Party and       all amendments thereto, certified as of a recent date by the appropriate Governmental Authority       in its jurisdiction of incorporation, organization or formation (or equivalent), as applicable, (B)                                             67 103755581_3 119311063_5 

 

         the bylaws or other governing document of such Credit Party as in effect on the Closing Date, (C)       resolutions duly adopted by the board of directors (or other governing body) of such Credit Party       authorizing and approving the transactions contemplated hereunder and the execution, delivery       and performance of this Agreement and any other applicable Loan Documents to which it is a       party, and (D) each certificate required to be delivered pursuant to Section 5.1(b)(iii).               (iii)  Certificates of  Good  Standing.   To  the  extent  applicable,  certificates  as  of  a       recent  date  of  the  good  standing  of  each  Credit  Party  under  the  laws  of  its  jurisdiction  of       incorporation, organization or formation (or equivalent), as applicable.               (iv)   Opinions of Counsel.  Opinions of counsel to the Credit Parties addressed to the       Administrative  Agent  and  the  Lenders  with  respect  to  the  Credit  Parties,  the  applicable  Loan       Documents and such other matters as the Administrative Agent shall reasonably request.         (c)   Personal Property Collateral.               (i)    Filings and Recordings.  The Administrative Agent shall have received all filings       and recordations that are necessary to perfect the security interests of the Administrative Agent,       on  behalf  of  the  Secured  Parties,  in  the  Collateral,  to  the  extent  such  security  interests  can  be       perfected  by  filing  or  recordation,  and  the  Administrative  Agent  shall  have  received  evidence       reasonably satisfactory to the Administrative Agent that upon such filings and recordations such       security interests constitute valid and perfected first priority Liens thereon (subject to Permitted       Liens).               (ii)   Pledged  Collateral.   To  the  extent  required  by  the  Security  Documents,  the        Administrative  Agent  shall  have  received  (A)  original  stock  certificates  or  other  certificates        evidencing the certificated Equity Interests pledged pursuant to the Security Documents, together        with an undated stock power for each such certificate duly executed in blank by the registered        owner thereof and (B) each original promissory note pledged pursuant to the Security Documents        together with an undated allonge for each such promissory note duly executed in blank by the        holder thereof.               (iii)  Register of  Mortgages and Charges.   The  Administrative  Agent  shall  have        received a true, correct and complete copy of the register of mortgages and charges for each of        the Cayman  Borrower and  Ubiquiti  Cayman  which  shall  include  details  of  all  Security       Documents entered into by each of the Cayman Borrower and Ubiquiti Cayman.               (iv)   Lien Search.  The Administrative Agent shall have received the results of a Lien        search (including a search as to judgments, bankruptcy and tax matters), in form and substance        reasonably satisfactory thereto, made against the Credit Parties under the Uniform Commercial        Code  (or  applicable  judicial  docket)  as  in  effect  in  each  jurisdiction  in  which  filings  or        recordations under the Uniform Commercial Code should be made to evidence or perfect security        interests in all assets of such Credit Party, indicating among other things that the assets of each        such Credit Party are free and clear of any Lien (except for Permitted Liens).               (v)    Property and Liability Insurance.  The Administrative Agent shall have received,       in each case in form and substance reasonably satisfactory to the Administrative Agent, evidence       of property, business interruption and liability insurance covering each Credit Party, evidence of       payment of all insurance premiums for the current policy year of each policy (with appropriate       endorsements naming the Administrative Agent as lender’s loss payee on all policies for property                                             68 103755581_3 119311063_5 

 

         hazard insurance and as additional insured on all policies for liability insurance), and if requested       by the Administrative Agent, copies of such insurance policies.               (vi)   Other Collateral Documentation.  The Administrative Agent shall have received       any  documents  reasonably  requested  thereby  or  as  required  by  the  terms  of  the  Security       Documents to evidence its security interest in the Collateral (including, without limitation, any       landlord waivers or collateral access agreements).         (d)   Consents; Defaults.               (i)    Governmental and Third Party Approvals.  The Credit Parties shall have received        all  material  governmental,  shareholder  and  third  party  consents  and  approvals  necessary  in        connection  with  the  Transactions  and  any  other  transaction  contemplated  in  any  other  Loan        Document.               (ii)   No  Material  Litigation.   The  absence  of  any  action,  suit,  investigation  or        proceeding  pending  or,  to  the  knowledge  of  the Parent  Borrower or the Cayman Borrower,       threatened in writing in any court or before any arbitrator or governmental authority that could       reasonably be expected to have a Material Adverse Effect.         (e)   Financial Matters.               (i)    Financial  Statements.   The  Administrative  Agent  shall  have  received  (A)  the       audited Consolidated and consolidating balance sheet of the Parent Borrower and its Subsidiaries       as of June 30, 2015, June 30, 2016 and June 30, 2017, and the related audited Consolidated and       consolidating statements of income and retained earnings and cash flows for the Fiscal Years then       ended and (B) unaudited Consolidated and consolidating balance sheet of the Parent Borrower       and  its  Subsidiaries  as  of  September  30,  2017  and  related  unaudited  Consolidated  and        consolidating interim statements of income and retained earnings.               (ii)   Financial Projections.  The Administrative Agent shall have received pro forma        Consolidated financial statements for the Parent Borrower and its Subsidiaries, and projections       prepared by management of the Parent Borrower, of balance sheets, income statements and cash       flow statements on a quarterly basis for the first year following the Closing Date and on an annual       basis for each year thereafter during the term of the Credit Facility.               (iii)  Financial  Condition/Solvency  Certificate.   The Parent Borrower  shall  have       delivered  to  the  Administrative  Agent  a  certificate,  in  form  and  substance  satisfactory  to  the       Administrative Agent, and certified as accurate by the chief financial officer or chief accounting       officer of the Parent Borrower (not in his individual capacity), that (A) after giving effect to the       Transactions, (x) the Parent Borrower and its Subsidiaries, taken as a whole, are Solvent and (y)       the  Credit  Parties,  taken  as  a  whole,  are  Solvent  and  (B)  the  financial  projections  previously       delivered  to  the  Administrative  Agent  represent  the  good  faith estimates  (utilizing  reasonable       assumptions)  of  the  financial  condition  and  operations  of  the Parent Borrower  and  its       Subsidiaries.               (iv)   Closing Leverage Ratio/Liquidity.  The Administrative Agent will be reasonably       satisfied  that (A) the  Consolidated  Total  Leverage  Ratio  as  of  the  most  recently  ended  fiscal       quarter prior to the Closing Date for which financial statements are available (calculated on a pro       forma basis after giving effect to the Transactions) will not exceed 3.25 to 1.00 and (B) the Credit                                              69 103755581_3 119311063_5 

 

         Parties have  Liquidity of at  least  $250,000,000 on the Closing  Date, after  giving  effect to the        Transactions.1.00.               (v)    Payment at Closing.  The BorrowersBorrower  shall  have  paid  or  made       arrangements  to  pay  contemporaneously  with  closing  (A)  to  the  Administrative  Agent,  the       Arrangers and the Lenders the fees set forth or referenced in Section 4.3 and any other accrued       and  unpaid  fees  or  commissions  due  hereunder,  (B)  all  fees,  charges  and  disbursements  of       counsel to the Administrative Agent (directly to such counsel if requested by the Administrative       Agent) and (C) to any other Person such amount as may be due thereto in connection with the       transactions contemplated hereby, including all taxes, fees and other charges in connection with       the execution, delivery, recording, filing and registration of any of the Loan Documents.         (f)   Miscellaneous.               (i)    Notice of Account Designation.  The Administrative Agent shall have received a        Notice of Account Designation specifying the account or accounts to which the proceeds of any        Loans made on or after the Closing Date are to be disbursed.               (ii)   Existing Credit  Agreement.   The  Indebtedness  outstanding  under  the  Existing       Credit Agreement shall have been refinanced, or shall be refinanced substantially simultaneously       with the initial Extensions of Credit.               (iii)  PATRIOT Act, etc.  EachThe Borrower and each of the Guarantors shall have       provided to the Administrative Agent and the Lenders the documentation and other information       requested by the Administrative Agent in order to comply with requirements of the PATRIOT       Act, applicable “know your customer” and anti-money laundering rules and regulations at least       ten (10) Business Days prior to the Closing Date.               (iv)   Other  Documents.   All  opinions,  certificates  and  other  instruments  and  all       proceedings  in  connection  with  the  transactions  contemplated  by  this  Agreement  shall  be       satisfactory in form and substance to the Administrative Agent.  The Administrative Agent shall       have  received  copies  of  all  other  documents,  certificates  and  instruments  reasonably  requested       thereby, with respect to the transactions contemplated by this Agreement.  Without limiting the generality of the provisions of the last paragraph of Section 10.3, for purposes of determining compliance with the conditions specified in this Section 5.1, the Administrative Agent and each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.        SECTION 5.2      Conditions to All  Extensions of Credit.  TheSubject to  Section 2.7 and  Section 1.12 solely with respect to any Incremental Term Loan incurred solely to finance a substantially  concurrent  Limited  Condition  Acquisition and the  related  transaction costs and  expenses  associated  therewith, the obligations of the Lenders to make or participate in any Extensions of Credit (including the initial Extension of Credit) and/or the Issuing Lender to issue or extend any Letter of Credit are subject to the  satisfaction  of  the  following  conditions  precedent  on  the  relevant  borrowing,  continuation, conversion, issuance or extension date:         (a)   Continuation of  Representations and  Warranties.   The  representations  and  warranties  contained  in  this  Agreement  and  the  other  Loan  Documents  shall be  true  and  correct  in  all  material                                             70 103755581_3 119311063_5 

 

    respects,  except  for  any  representation  and  warranty  that  is  qualified  by  materiality  or  reference  to  Material Adverse Effect, which such representation and warranty shall be true and correct in all respects,  on and as of such borrowing, issuance or extension date with the same effect as if made on and as of  such date (except for any such representation and warranty that by its terms is made only as of an earlier  date, which representation and warranty shall remain true and correct in all material respects as of such  earlier date, except for any representation and warranty that is qualified by materiality or reference to  Material Adverse Effect, which such representation and warranty shall be true and correct in all respects  as of such earlier date).         (b)   No  Existing  Default.   No  Default  or  Event  of  Default  shall  have  occurred  and  be  continuing (i) on the borrowing date with respect to such Loan or after giving effect to the Loans to be  made on such date or (ii) on the issuance or extension date with respect to such Letter of Credit or after  giving effect to the issuance or extension of such Letter of Credit on such date.         (c)   Notices.  The Administrative Agent shall have received a Notice of Borrowing or a Letter  of Credit Application, as applicable, from the Borrower Agent in accordance with Section 2.3(a), 3.2 or   2.9, as applicable.         (d)   New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting Lender,  (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it  will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) the Issuing Lender  shall not be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it  will have no Fronting Exposure after giving effect thereto.                                        ARTICLE VI             REPRESENTATIONS AND WARRANTIES OF THE CREDIT PARTIES         To induce the Administrative Agent and Lenders to enter into this Agreement and to induce the Lenders  to  make  Extensions  of  Credit,  the  Credit  Parties  hereby  represent  and  warrant  to  the Administrative Agent and the Lenders, which representations and warranties shall be deemed made on the Closing Date and as otherwise set forth in Section 5.2, that:        SECTION 6.1      Organization; Power; Qualification.  Each Credit Party and each Subsidiary thereof (other than Immaterial Foreign Subsidiaries) (a) is duly organized or incorporated, validly existing and  in  good  standing  (or  in  the  case  of  any  Foreign  Subsidiary,  the  equivalent  status,  if  any,  in  the applicable foreign jurisdiction), under the laws of the jurisdiction of its incorporation or formation, (b) has the  power  and  authority  to  own  its  Properties  and  to  carry  on  its  business  as  now  being  and  hereafter proposed to be conducted and (c) is duly qualified and authorized to do business in each jurisdiction in which  the  character  of  its  Properties  or  the  nature  of  its  business  requires  such  qualification  and authorization (to the extent applicable in the case of Foreign Subsidiaries) except in jurisdictions where the failure to be so qualified or in good standing could not reasonably be expected to result in a Material Adverse Effect.  The jurisdictions in which each Credit Party and each Subsidiary thereof are organized and qualified to do business as of the Closing Date are described on Schedule 6.1.  No Credit Party nor any Subsidiary thereof is an EEA Financial Institution.        SECTION 6.2      Ownership.  Each Subsidiary of each Credit Party as of the Closing Date is listed on Schedule 6.2.  As of the Closing Date, the capitalization of each Credit Party (other than the Parent Borrower)  and  its  Subsidiaries  consists  of  the  number  of  shares,  authorized,  issued  and outstanding,  of  such  classes  and  series,  with  or  without  par  value,  described  on  Schedule 6.2.   All outstanding shares have been duly authorized and validly issued and, to the extent applicable, are fully paid  and  non-assessable  and  not  subject  to  any  preemptive  or  similar  rights,  except  as  described  in                                             71 103755581_3 119311063_5 

 

   Schedule 6.2.  The shareholders or other owners, as applicable, of each Credit Party (other than the Parent  Borrower)  and  its  Subsidiaries  which  are  not  traded  on  a  public  exchange  and  the  number  of  shares owned by each as of the Closing Date are described on Schedule 6.2.  As of the Closing Date, there are no outstanding stock purchase warrants, subscriptions, options, securities, instruments or other rights of any type  or  nature  whatsoever,  which  are  convertible  into,  exchangeable  for  or  otherwise  provide  for  or require  the  issuance  of  Equity  Interests  of  any  Credit  Party  (other  than  the Parent Borrower)  or  any Subsidiary thereof, except as described on Schedule 6.2.        SECTION 6.3      Authorization;  Enforceability.   Each  Credit  Party  has  the  right,  power  and authority and has taken all necessary corporate and other action to authorize the execution, delivery and performance of this Agreement and each of the other Loan Documents to which it is a party in accordance with  their  respective  terms.   This  Agreement  and  each  of  the  other  Loan  Documents  have  been  duly executed and delivered by the duly authorized officers of each Credit Party that is a party thereto, and each such document constitutes the legal, valid and binding obligation of each Credit Party that is a party thereto,  enforceable  in  accordance  with  its  terms,  except  as  such  enforceability  may  be  limited  by bankruptcy, insolvency, reorganization, moratorium or similar state or federal Debtor Relief Laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies.        SECTION 6.4      Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The execution, delivery and performance by each Credit Party of the Loan Documents to which each such Person is a party, in accordance with their respective terms, the Extensions of Credit hereunder and the transactions contemplated hereby or thereby do not, (a) require any Governmental Approval or violate any  Applicable  Law  relating  to  any  Credit  Party  or  any  Subsidiary  thereof where the failure to obtain such Governmental Approval or such violation could reasonably be expected to have a Material Adverse Effect, (b) conflict with, result in a breach of or constitute a default under the articles of incorporation, bylaws or other organizational documents of any Credit Party, (c) conflict with, result in a breach of or constitute a default under any indenture, agreement or other instrument to which such Person is a party or by  which  any  of  its  properties  may  be  bound  or  any  Governmental  Approval  relating  to  such  Person, which could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (d) result in or require the creation or imposition of any Lien upon or with respect to any property now owned  or  hereafter  acquired  by  such  Person  other  than  Permitted  Liens  or  (e)  require  any  consent  or authorization of, filing with, or other act in respect of, an arbitrator or Governmental Authority and no consent of any other Person is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement other than (i) consents, authorizations, filings or other acts or consents that have been obtained or made and that are still in force and effect, (ii) consents, authorizations, filings or  other  acts  or  consents  for  which  the  failure  to  obtain  or  make  could  not,  individually  or  in  the aggregate, reasonably be expected to have a Material Adverse Effect and (iii) consents or filings under the UCC or other security filings as applicable in foreign jurisdictions.         SECTION 6.5     Compliance  with Law;  Governmental  Approvals.   Each  Credit  Party  and each Subsidiary thereof (other than Immaterial Foreign Subsidiaries) (a) has all Governmental Approvals required by any Applicable Law for it to conduct its business, each of which is in full force and effect (b) is  in  compliance  with  each  Governmental  Approval  applicable  to it  and  in  compliance  with  all  other Applicable  Laws  relating  to  it  or  any  of  its  respective  Properties  and  (c)  has  timely  filed  all  material reports,  documents  and  other  materials  required  to  be  filed  by it  under  all  Applicable  Laws  with  any Governmental Authority and has retained all material records and documents required to be retained by it under Applicable Law except in each case (a), (b) or (c) where the failure to have, comply or file could not reasonably be expected to have a Material Adverse Effect.                                              72 103755581_3 119311063_5 

 

         SECTION 6.6      Tax Returns and Payments.  Each Credit Party and each Subsidiary thereof (other than Immaterial Foreign Subsidiaries) has duly filed or caused to be filed all federal and state and any other material tax returns required by Applicable Law to be filed, and all taxes shown to be due on such tax returns have been timely paid (other than any amount the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided for on the books of the relevant Credit Party or Subsidiary).  Such tax returns accurately  reflect  in  all  material  respects  all  liability  for  taxes  of  any  Credit  Party  or  any  Subsidiary thereof (other than Immaterial Foreign Subsidiaries) for the periods covered thereby.  As of the Closing Date, except as set forth on Schedule 6.6, there is no ongoing audit or examination or, to its knowledge, other investigation by any Governmental Authority of any material tax liability of any Credit Party or any Subsidiary  thereof  (other  than  Immaterial  Foreign  Subsidiaries).   No  Governmental  Authority  has asserted any Lien or other claim against any Credit Party or any Subsidiary thereof (other than Immaterial Foreign  Subsidiaries)  with  respect  to material unpaid taxes which has not been discharged or resolved (other than (a) any amount the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided for on the books  of  the  relevant  Credit  Party  or  Subsidiary  and  (b)  Permitted  Liens).   The  charges,  accruals  and reserves on the books of each Credit Party and each Subsidiary thereof (other than Immaterial Foreign Subsidiaries)  in  respect  of  U.S.  federal,  state,  local  and  other  taxes  for  all  Fiscal  Years  and  portions thereof since the organization of any such Credit Party or Subsidiary thereof are in the judgment of the BorrowersBorrower adequate, and the Borrowers doBorrower does not anticipate any additional material taxes or assessments for any of such years.        SECTION 6.7      Intellectual Property Matters.  Each Credit Party and each Subsidiary thereof (other  than  Immaterial  Foreign  Subsidiaries)  owns  or  possesses rights  to  use  all  franchises,  licenses, copyrights,  copyright  applications,  patents,  patent  rights  or  licenses,  patent  applications,  trademarks, trademark rights, service mark, service mark rights, trade names, trade name rights, copyrights and other rights with respect to the foregoing, in each case which are material and reasonably necessary to conduct its business.  No event has occurred which permits, or after notice or lapse of time or both would permit, the revocation or termination of any such rights which are material and reasonably necessary to conduct its  business.   To  their  knowledge,  no  Credit  Party  nor  any  Subsidiary  thereof  (other  than  Immaterial Foreign Subsidiaries) is liable to any Person for infringement under Applicable Law with respect to any such rights as a result of its business operations where such liability could reasonably be expected to have a Material Adverse Effect.        SECTION 6.8      Environmental Matters.         (a)   The  properties  owned,  leased  or  operated  by  each  Credit  Party  and  each  Subsidiary  thereof  (other  than  Immaterial  Foreign  Subsidiaries)  now  or  in the  past  do  not  contain,  and  to  their  knowledge have not previously contained, any Hazardous Materials in amounts or concentrations which  constitute  or  constituted  a  violation  of  applicable  Environmental  Laws  which  could  reasonably  be  expected, individually or in the aggregate, to have a Material Adverse Effect;         (b)   To its knowledge, each Credit Party and each Subsidiary thereof (other than Immaterial  Foreign Subsidiaries) and such properties and all operations conducted in connection therewith are in  compliance,  and  have  been  in  compliance,  with  all  applicable  Environmental  Laws,  and  there  is  no  contamination  at,  under  or  about  such  properties  or  such  operations  which  could  interfere  with  the  continued  operation  of  such  properties  or  impair  the  fair  saleable  value  thereof  except  for  non-compliance or violations which could not reasonably be expected, individually or in the aggregate,  to have a Material Adverse Effect;                                              73 103755581_3 119311063_5 

 

          (c)   No Credit Party nor any Subsidiary thereof (other than Immaterial Foreign Subsidiaries)  has  received  any  notice  of  violation,  alleged  violation,  non-compliance,  liability  or  potential  liability  regarding environmental matters, Hazardous Materials, or compliance with Environmental Laws that, if  adversely determined, could reasonably be expected, individually or in the aggregate, to have a Material  Adverse  Effect,  nor  does  any  Credit  Party  or  any  Subsidiary  thereof  (other  than  Immaterial  Foreign  Subsidiaries) have actual knowledge that any such notice will be received or is being threatened;         (d)   Except as would not reasonably be expected, individually or in the aggregate, to have a  Material Adverse Effect, to its knowledge, Hazardous Materials have not been transported or disposed of  to or from the properties owned, leased or operated by any Credit Party or any Subsidiary thereof (other  than Immaterial Foreign Subsidiaries) in violation of, or in a manner or to a location which could give  rise to liability under, Environmental Laws, nor have any Hazardous Materials been generated, treated,  stored or disposed of at, on or under any of such properties in violation of, or in a manner that could give  rise to liability under, any applicable Environmental Laws;         (e)   No judicial proceedings or governmental or administrative action is pending, or, to the  knowledge of eitherthe Borrower, threatened, under any Environmental Law to which any Credit Party  or  any  Subsidiary  thereof  (other  than  Immaterial  Foreign  Subsidiaries)  is  or  will  be  named  as  a  potentially  responsible  party,  nor  are  there  any  consent  decrees  or  other  decrees,  consent  orders,  administrative orders or other orders, or other administrative or judicial requirements outstanding under  any applicable Environmental Law with respect to any Credit Party, any Subsidiary thereof (other than  Immaterial  Foreign  Subsidiaries),  with  respect  to  any  real  property owned, leased or operated by any  Credit  Party  or  any  Subsidiary  thereof  (other  than  Immaterial  Foreign  Subsidiaries)  or  operations  conducted in connection therewith that could reasonably be expected, individually or in the aggregate, to  have a Material Adverse Effect; and         (f)   There has been no release, or to its knowledge, threat of release, of Hazardous Materials  at  or  from  properties  owned,  leased  or  operated  by  any  Credit  Party  or  any  Subsidiary  (other  than  Immaterial Foreign Subsidiaries), now or in the past, in violation of or in amounts or in a manner that  could  give  rise  to  liability  under  applicable  Environmental  Laws  that  could  reasonably  be  expected,  individually or in the aggregate, to have a Material Adverse Effect.        SECTION 6.9      Employee Benefit Matters.         (a)   Each  Credit  Party  and  each  ERISA  Affiliate  is  in  compliance  with  all  applicable  provisions of ERISA, the Code and the regulations and published interpretations thereunder with respect  to all Employee Benefit Plans except for any required amendments for which the remedial amendment  period as defined in Section 401(b) of the Code has not yet expired and except where a failure to so  comply  could  not  reasonably  be  expected  to  have  a  Material  Adverse  Effect.   Except  as  would  not  reasonably be expected to have a Material Adverse Effect, each Employee Benefit Plan that is intended  to be qualified under Section 401(a) of the Code has been determined by the IRS to be so qualified, and  each  trust  related  to  such  plan  has  been  determined  to  be  exempt  under  Section  501(a)  of  the  Code  except  for  such  plans  that  have  not  yet  received  determination letters  but  for  which  the  remedial  amendment period for submitting a determination letter has not yet expired or plans covered by an IRS  opinion or advisory letter.  No liability has been incurred by any Credit Party or any ERISA Affiliate  which remains unsatisfied for any taxes or penalties assessed with respect to any Employee Benefit Plan  or any Multiemployer Plan except for a liability that could not reasonably be expected to have a Material  Adverse Effect;         (b)   As of the Closing Date, no Pension Plan has been terminated, nor has any Pension Plan  become subject to funding based benefit restrictions under Section 436 of the Code, nor has any funding                                             74 103755581_3 119311063_5 

 

    waiver from the IRS been received or requested with respect to any Pension Plan, nor has any Credit  Party or any ERISA Affiliate failed to make any contributions or to pay any amounts due and owing as  required by Sections 412 or 430 of the Code, Section 302 of ERISA or the terms of any Pension Plan on  or prior to the due dates of such contributions under Sections 412 or 430 of the Code or Section 302 of  ERISA, nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of  ERISA with respect to any Pension Plan;         (c)   Except where the failure of any of the following representations to be correct could not  reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, no Credit  Party  nor  any  ERISA  Affiliate  has:  (i)  engaged  in  a  nonexempt  prohibited  transaction  described  in  Section 406 of the ERISA or Section 4975 of the Code, (ii) incurred any liability to the PBGC which  remains outstanding other than the payment of premiums and there are no premium payments which are  due and unpaid, (iii) failed to make a required contribution or payment to a Multiemployer Plan, or (iv)  failed to make a required installment or other required payment under Sections 412 or 430 of the Code;         (d)   No  Termination  Event  has  occurred  or  is  reasonably  expected  to occur  that  would  reasonably be expected to have a Material Adverse Effect;         (e)   Except where the failure of any of the following representations to be correct could not  reasonably  be  expected,  individually  or  in  the  aggregate,  to  have  a  Material  Adverse  Effect,  no  proceeding,  claim  (other  than  a  benefits  claim  in  the  ordinary course  of  business),  lawsuit  and/or  investigation  is  existing  or, to  its  knowledge,  threatened  concerning  or  involving  (i)  any  employee  welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by any  Credit Party or any ERISA Affiliate, (ii) any Pension Plan or (iii) any Multiemployer Plan.         (f)   No  Credit  Party  nor  any  Subsidiary  thereof  is  a  party  to  any  contract,  agreement  or  arrangement  that  could,  solely  as  a  result  of  the  delivery  of  this  Agreement  or  the  consummation  of  transactions contemplated hereby, result in the payment of any “excess parachute payment” within the  meaning of Section 280G of the Code.         SECTION 6.10    Margin Stock.   No  Credit  Party  nor  any  Subsidiary  thereof  is  engaged principally or as one of its important activities in the business of  “purchasing” or “carrying” any “margin stock”  (as  each  such  term  is  defined  or  used,  directly  or  indirectly,  in  Regulation  U  of  the  Board  of Governors of the Federal Reserve System) or extending credit for such purpose.  No part of the proceeds of any of the Loans or Letters of Credit will be used for, or extended as credit for, purchasing or carrying margin stock or for any purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X of such Board of Governors.  Following the application of the proceeds of each Extension  of  Credit,  not  more  than  twenty-five  percent  (25%)  of  the  value  of  the  assets  (either  of  the BorrowersBorrower only or of the Parent Borrower and its Subsidiaries on a Consolidated basis) subject to the provisions of Section 8.2 or Section 8.5 or subject to any restriction contained in any agreement or instrument  between  the BorrowersBorrower  and  any  Lender  or  any  Affiliate  of  any  Lender relating to Indebtedness in excess of the Threshold Amount will be “margin stock”.        SECTION 6.11     Government Regulation.  No Credit Party nor any Subsidiary thereof is an “investment  company”  or  a  company  “controlled”  by  an  “investment  company”  (as  each  such  term  is defined or used in the Investment Company Act of 1940) and no Credit Party nor any Subsidiary thereof is, or after giving effect to any Extension of Credit will be, subject to regulation under any Applicable Law which limits its ability to incur or consummate the transactions contemplated hereby.         SECTION 6.12    Material Contracts.  Schedule 6.12 sets forth a complete and accurate list of all Material Contracts of each Credit Party and each Subsidiary thereof (other than Immaterial Foreign                                             75 103755581_3 119311063_5 

 

   Subsidiaries) in effect as of the Closing Date.  Other than as set forth in Schedule 6.12, as of the Closing Date,  each  such  Material  Contract  is,  and  after  giving  effect  to  the  consummation  of  the  transactions contemplated  by  the  Loan  Documents  will  be,  in  full  force  and  effect  in  accordance  with  the  terms thereof.   As  of  the  Closing  Date,  no  Credit  Party  nor  any  Subsidiary  thereof  (other  than  Immaterial Foreign Subsidiaries) (nor, to its knowledge, any other party thereto) is in breach of or in default under any Material Contract in any material respect.        SECTION 6.13     Employee  Relations.   As  of  the  Closing  Date,  no  Credit  Party  or  any Subsidiary  thereof  is  party  to  any  collective  bargaining  agreement,  nor  has  any  labor  union  been recognized  as  the  representative  of  its  employees  except  as  set  forth  on  Schedule 6.13.  NeitherThe Borrower knowsdoes not know of any pending, threatened (in writing) strikes, work stoppage or other collective labor disputes involving its employees or those of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.         SECTION 6.14    Financial  Statements.   The  audited  and  unaudited  financial  statements delivered pursuant to Section 5.1(e)(i) are complete and correct in all material respects and fairly present on  a  Consolidated  and  consolidating  basis  the  assets,  liabilities  and  financial  position  of  the Parent  Borrower and its Subsidiaries as at such dates, and the results of the operations and changes of financial position for the periods then ended in all material respects (other than customary year-end adjustments for unaudited  financial  statements  and  the  absence  of  footnotes  from  unaudited  financial  statements).   All such  financial  statements,  including  the  related  schedules  and notes  thereto,  have  been  prepared  in accordance  with  GAAP.   Such  financial  statements  show  all  material  Indebtedness  and  other  material liabilities,  direct  or  contingent,  of  the Parent Borrower  and  its  Subsidiaries  as  of  the  date  thereof, including  material  liabilities  for  taxes,  material  commitments,  and  Indebtedness,  in  each  case,  to  the extent required to be disclosed under GAAP.  The projections delivered pursuant to Section 5.1(e)(ii) and were  prepared  in  good  faith  on  the  basis  of  the  assumptions  stated  therein,  which  assumptions  were believed to be reasonable in light of then existing conditions except that such financial projections and statements shall be subject to normal year end closing and audit adjustments (it being recognized by the Lenders  that  projections  are  not  to  be  viewed  as  facts  and  that  the  actual  results  during  the  period  or periods covered by such projections may vary from such projections).        SECTION 6.15     No  Material  Adverse  Change.   Since  June  30,  2017,  there  has  been  no material adverse change in the properties, business, operations, or condition (financial or otherwise) of the Parent Borrower and its Subsidiaries, taken as a whole, and no event has occurred or condition arisen, either  individually  or  in  the  aggregate,  that  could  reasonably be  expected  to  have  a  Material  Adverse Effect.        SECTION 6.16     Solvency.  (a) The Parent Borrower and its Subsidiaries, taken as a whole, and (b) the Credit Parties, taken as a whole, are Solvent.        SECTION 6.17     Title to  Properties.   As  of  the  Closing  Date,  the  real  property  listed  on Schedule 6.17 constitutes all of the real property that is owned, leased or subleased or used by any Credit Party or any of its Subsidiaries (other than Immaterial Foreign Subsidiaries).  Each Credit Party and each Subsidiary  thereof  (other  than  Immaterial  Foreign  Subsidiaries)  has  such  title  to,  or  valid  leasehold interests in, the real property owned or leased by it as is necessary to the conduct of its business and valid and legal title to all of its personal property and assets, except those which have been disposed of by the Credit Parties and their Subsidiaries subsequent to such date which dispositions have been in the ordinary course of business or as otherwise permitted hereunder and except where the failure to have such title or leasehold interests could not reasonably be expected to have a Material Adverse Effect.                                              76 103755581_3 119311063_5 

 

          SECTION 6.18    Litigation.  Except for matters existing on the Closing Date and set forth on Schedule 6.18,  there  are  no  actions,  suits  or  proceedings  pending  nor,  to  its  knowledge,  threatened  in writing against or in any other way relating adversely to or affecting any Credit Party or any Subsidiary thereof or any of their respective properties in any court or before any arbitrator of any kind or before or by any Governmental Authority that could reasonably be expected to have a Material Adverse Effect.        SECTION 6.19     Anti-Corruption Laws and Sanctions.  None of (a) the BorrowersBorrower, any  Subsidiary  or  to  the  knowledge  of eitherthe  Borrower  or  such  Subsidiary  any  of  their  respective directors, officers, employees or affiliates, or (b) to the knowledge of eitherthe Borrower, any agent or representative of eitherthe Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby is a Sanctioned Person or the subject or target of any Sanctions.        SECTION 6.20     Absence of Defaults.  No Default or an Event of Default has occurred and is continuing.        SECTION 6.21     Disclosure.  The Parent Borrower  and/or  its  Subsidiaries  have  disclosed  to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which any Credit Party and any Subsidiary thereof (other than Immaterial Foreign Subsidiaries) are subject, and all other matters known to them, that, in each case, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  No financial statement, material report, material certificate or other material information furnished (whether in writing or orally) by or on behalf of any Credit Party or any Subsidiary thereof to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished), taken together as a whole, and together with the Borrower’s filings with the SEC, contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial information, pro forma financial information, estimated financial information and other projected or estimated information, such information was prepared in good faith based upon assumptions believed to be reasonable at the time (it  being  recognized  by  the  Lenders  that  projections  are  not  to  be  viewed  as  facts  and  that  the  actual results  during  the  period  or  periods  covered  by  such  projections  may  vary  from  such  projections); provided further that with respect to information relating to the Borrowers’Borrower’s industry generally and trade data which relates to a Person that is not athe Borrower or a Subsidiary thereof, the Borrowers  represent and  warrantBorrower  represents and  warrants  only  that  such  information  is  believed  by  it  in good faith to be accurate in all material respects.  As of the Third Amendment Effective Date, all of the  information included in each Beneficial Ownership Certification is true and correct.                                       ARTICLE VII                               AFFIRMATIVE COVENANTS        Until all of the Obligations (other than contingent indemnification obligations not then due) have been paid and satisfied in full in cash, all Letters of Credit have been terminated or expired (or been Cash Collateralized  or  other  arrangements  with  respect  thereto  have been  made  that  are  satisfactory  to  the Issuing Lender) and the Revolving Credit Commitments terminated, each Credit Party will, and will cause each of its Subsidiaries (other than Immaterial Foreign Subsidiaries) to:         SECTION 7.1     Financial Statements and Budgets.  Deliver to the Administrative Agent, in form and detail satisfactory to the Administrative Agent (which shall promptly make such information available to the Lenders in accordance with its customary practice):                                             77 103755581_3 119311063_5 

 

          (a)   Annual Financial Statements.  As soon as practicable and in any event within 90 days (or,  if later, on the date of any required public filing thereof (after giving effect to any extensions for filing  under Rule 12b-25 promulgated under the Exchange Act), but not to exceed 105 days) after the end of  each Fiscal Year (commencing with the Fiscal Year ended June 30, 2018), an audited Consolidated and  consolidating balance sheet of the Parent Borrower and its Subsidiaries as of the close of such Fiscal  Year and audited Consolidated and consolidating statements of income, retained earnings and cash flows  including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding  figures as of the end of and for the preceding Fiscal Year and prepared in accordance with GAAP and, if  applicable, containing disclosure of the effect on the financial position or results of operations of any  change in the application of accounting principles and practices during the year.  Such annual financial  statements  shall  be  audited  by  an  independent  certified public accounting firm of recognized national  standing reasonably acceptable to the Administrative Agent, and accompanied by a report and opinion  thereon  by  such  certified  public  accountants  prepared  in  accordance  with  generally  accepted  auditing  standards  that  is  not  subject  to  any  “going  concern”  or  similar  qualification  or  exception  or  any  qualification as to the scope of such audit or with respect to accounting principles followed by the Parent   Borrower or any of its Subsidiaries not in accordance with GAAP.         (b)   Quarterly Financial Statements.  As soon as practicable and in any event within 45 days  (or, if later, on the date of any required public filing thereof (after giving effect to any extensions for  filing under Rule 12b-25 promulgated under the Exchange Act), but not to exceed 50 days) after the end  of the first three fiscal quarters of each Fiscal Year (commencing with the fiscal quarter ended March 31,  2018),  an  unaudited  Consolidated  and  consolidating  balance  sheet  of  the Parent Borrower  and  its  Subsidiaries  as  of  the  close  of  such  fiscal  quarter  and  unaudited  Consolidated  and  consolidating  statements of income, retained earnings and cash flows and a report containing management’s discussion  and analysis of such financial statements for the fiscal quarter then ended and that portion of the Fiscal  Year then ended (to the extent such information is provided in the applicable quarterly report filed by the  Parent Borrower with the SEC under the Exchange Act), including the notes thereto, all in reasonable  detail  setting  forth  in  comparative  form  the  corresponding  figures  as  of  the  end  of  and  for  the  corresponding period in the preceding Fiscal Year and prepared by the Parent Borrower in accordance  with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of  operations of any change in the application of accounting principles and practices during the period, and  certified by the chief financial officer of the Parent Borrower to present fairly in all material respects the  financial condition of the Parent Borrower and its Subsidiaries on a Consolidated and consolidating basis  as of their respective dates and the results of operations of the Parent Borrower and its Subsidiaries for  the respective periods then ended, subject to normal year-end adjustments and the absence of footnotes.         (c)   Annual  Business Plan and  Budget.  As  soon as  practicable and in any  event  within   forty-five  (45) days after the end of  each  Fiscal  YearAt  each  time  financial  statements are  delivered   pursuant to Section 7.1(a), a business plan and operating and capital budget of the Parent Borrower and  its Subsidiaries for the ensuing fiscal year, such plan to include, on an annual basis, the following: an  annual operating and capital budget, a projected income statement, statement of cash flows and balance  sheet, calculations demonstrating projected compliance with the financial covenants set forth in Section   8.13 and a report containing a reasonable disclosure of the key assumptions and drivers with respect to  such  budget,  accompanied  by  a  certificate  from  a  Responsible  Officer  of  the Parent Borrower  to  the  effect that such budget contains good faith estimates (utilizing assumptions believed to be reasonable at  the time of delivery of such budget) of the financial condition and operations of the Parent Borrower and  its Subsidiaries for such period.        SECTION 7.2      Certificates; Other  Reports.   Deliver  to  the  Administrative  Agent  (which shall promptly make such information available to the Lenders in accordance with its customary practice):                                             78 103755581_3 119311063_5 

 

          (a)   at each time financial statements are delivered pursuant to Sections 7.1(a) or (b), a duly  completed Officer’s Compliance Certificate signed by the chief executive officer, chief financial officer,  chief  accounting  officer,  treasurer  or  controller  of  the Parent Borrower  and  a  report  containing  management’s discussion and analysis of such financial statements;         (b)   promptly  after  the  same  are  available,  copies  of  each  annual  report,  proxy  or  financial  statement or other report or communication sent to the stockholders of the Parent Borrower, and copies  of all annual, regular, periodic and special reports and registration statements which the Parent Borrower  may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, or with any  national securities exchange, and in any case not otherwise required to be delivered to the Administrative  Agent pursuant hereto;         (c)   at each time financial statements are delivered pursuant to Section 7.1(a), a listing of (i)   all Foreign Subsidiaries that are not Material Foreign Subsidiaries and calculations showing compliance  with  the  definition  of  Material  Foreign  Subsidiary  and Section  7.14(d)(ii) all  Immaterial Domestic   Subsidiaries and  calculations  showing  compliance  with the  definition of  Immaterial  Domestic   Subsidiary;         (d)   promptly,  and  in  any  event  within  five  (5)  Business  Days  after receipt  thereof  by  any  Credit Party or any Subsidiary thereof, copies of each material notice or other material correspondence  received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any  investigation or possible investigation by such agency regarding financial or other operational results of  the Parent Borrower or any Subsidiary thereof;         (e)   promptly upon the request thereof, such other information and documentation required by  bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and   regulationsAnti-Money  Laundering Laws  (including,  without  limitation,  the  PATRIOT  Act),  as  from  time to time reasonably requested by the Administrative Agent or any Lender; and         (f)   such other information regarding the operations, business affairs and financial condition  of  the Parent Borrower  or  any  Subsidiary  thereof  as  the  Administrative  Agent or  any  Lender  may  reasonably request.  Documents required to be delivered pursuant to Section 7.1(a) or (b) or Section 7.2(b) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Parent Borrower posts such documents, or provides a link thereto on the Parent Borrower’s website on the Internet at the website  address  listed  in  Section  11.1;  or  (ii)  on  which  such  documents  are  posted  on  the Parent  Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent  have  access  (whether  a  commercial,  third-party  website  or  whether  sponsored  by  the Administrative  Agent).   Notwithstanding  anything  contained  herein,  in  every  instance  the Parent  Borrower shall be required to provide paper copies of the Officer’s Compliance Certificates required by Section 7.2  to  the  Administrative  Agent.   Except  for  such  Officer’s  Compliance  Certificates,  the Administrative  Agent  shall  have  no  obligation  to  request  the  delivery  or  to  maintain  copies  of  the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Parent Borrower  with  any  such  request  for  delivery,  and  each  Lender  shall  be  solely  responsible  for requesting delivery to it or maintaining its copies of such documents.  The BorrowersBorrower hereby acknowledgeacknowledges that (a) the Administrative Agent and/or the Arrangers  will  make  available  to  the  Lenders  and  the  Issuing  Lender  materials  and/or  information provided by or on behalf of the Parent Borrower and its Subsidiaries hereunder (collectively, “Borrower                                              79 103755581_3 119311063_5 

 

   Materials”) by posting the Borrower Materials on Debt Domain, IntraLinks, SyndTrak Online or another similar electronic system (the “Platform”) and (b) 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 Parent  Borrower or its securities) (each, a “Public Lender”).  The BorrowersBorrower hereby agreeagrees that so long as the Parent Borrower is the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a private offering or is actively contemplating issuing any such securities it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, means that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the BorrowersBorrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the Issuing Lender and the Lenders to treat such Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to the Parent Borrower or its securities for purposes of United States Federal and  state  securities  laws  (provided,  however,  that  to  the  extent  such  Borrower  Materials  constitute Information,  they  shall  be  treated  as  set  forth  in  Section  11.10);  (y)  all  Borrower  Materials  marked “PUBLIC”  are  permitted  to  be  made  available  through  a  portion  of  the  Platform  designated  “Public Investor;”  and  (z)  the  Administrative  Agent  and  the  Arrangers  shall  be  entitled  to  treat  any  Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”        SECTION 7.3      Notice of Other Matters.  Promptly (but in no event later than ten (10) days after any Responsible Officer of any Credit Party obtains knowledge thereof) notify the Administrative Agent in writing of (which shall promptly make such information available to the Lenders in accordance with its customary practice):         (a)   the occurrence of any Default or Event of Default;         (b)   any event that results in, or could reasonably be expected to result in, a Material Adverse  Effect; and         (c)   (i)  any  letter  from  the  IRS  stating  that  an  Employee  Benefit  Plan  of  a  Credit  Party  is  disqualified under Section 401(a) of the Code (along with a copy thereof), (ii) all notices received by any  Credit Party or any ERISA Affiliate of the PBGC’s intent to terminate any Pension Plan or to have a  trustee appointed to administer any Pension Plan, (iii) all notices received by any Credit Party or any  ERISA Affiliate from a Multiemployer Plan sponsor concerning the imposition or amount of withdrawal  liability pursuant to Section 4202 of ERISA and (iv) eitherthe Borrower obtaining knowledge that any  Credit Party or any ERISA Affiliate has filed or intends to file a notice of intent to terminate any Pension  Plan under a distress termination within the meaning of Section 4041(c) of ERISA; provided that in the  case of clause (i) through (iv), notice shall only be required if the subject of the notice would reasonably  be expected to have a Material Adverse Effect.        Each notice pursuant to Section 7.3 shall be accompanied by a statement of a Responsible Officer of the Parent Borrower or the Cayman Borrower setting forth details of the occurrence referred to therein and stating what action the Parent Borrower or the Cayman Borrower has taken and proposes to take with respect  thereto.   Each  notice  pursuant  to  Section 7.3(a)  shall  describe  with  particularity  any  and  all provisions of this Agreement and any other Loan Document that have been breached.         SECTION 7.4     Preservation of  Corporate  Existence and  Related  Matters.   Except  as permitted by Section 8.4, preserve and maintain its separate corporate existence and all rights, franchises, licenses  and  privileges  necessary  to  the  conduct  of  its  business,  and  qualify  and  remain  qualified  as  a                                             80 103755581_3 119311063_5 

 

   foreign corporation or other entity and authorized to do business in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Effect.         SECTION 7.5     Maintenance of Property and Licenses.         (a)   In addition to the requirements of any of the Security Documents, protect and preserve all  Properties necessary in and material to its business, including copyrights, patents, trade names, service  marks  and  trademarks;  maintain  in  good  working  order  and  condition,  ordinary  wear  and  tear  and  permitted dispositions excepted, all buildings, equipment and other tangible real and personal property;  and  from  time  to  time  make  or  cause  to  be  made  all  repairs,  renewals  and  replacements  thereof  and  additions to such Property necessary for the conduct of its business, so that the business carried on in  connection therewith may be conducted in a commercially reasonable manner, in each case except as  such action or inaction would not reasonably be expected to result in a Material Adverse Effect.         (b)   Maintain, in full force and effect in all material respects, each and every license, permit,  certification,  qualification,  approval  or  franchise  issued  by  any  Governmental  Authority  (each  a  “License”)  required  for  each  of  them  to  conduct  their  respective  businesses  as  presently  conducted,  except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.         SECTION 7.6     Insurance.   Maintain  insurance  with  financially  sound  and  reputable insurance companies against at least such risks and in at least such amounts as are customarily maintained by  similar  businesses  and  as  may  be  required  by  Applicable  Law and  as  are  required  by  any  Security Documents  (including,  without  limitation,  hazard  and  business  interruption  insurance).   All  such insurance shall, (a) provide that no cancellation shall be effective until at least 30 days after receipt by the Administrative Agent of written notice thereof (or 10 days’ in the case of cancellation for non-payment of premiums) and (b) name the Administrative Agent as an additional insured party or lender’s loss payee, as applicable.  On the Closing Date and from time to time thereafter, deliver to the Administrative Agent upon its request (but no more frequently than annually unless an Event of Default has occurred and is continuing) information in reasonable detail as to the insurance then in effect, stating the names of the insurance companies, the amounts and rates of the insurance, the dates of the expiration thereof and the properties and risks covered thereby.         SECTION 7.7     Accounting  Methods and  Financial  Records.   Maintain  a  system  of accounting, and keep proper books, records and accounts (which shall be true and complete in all material respects) as may be required or as may be necessary to permit the preparation of financial statements in accordance  with  GAAP  and  in  compliance  in  all  material  respects  with  the  regulations  of  any Governmental Authority having jurisdiction over it or any of its Properties.        SECTION 7.8      Payment of  Taxes.   Pay  and  perform  all  taxes,  assessments  and  other governmental  charges  that  may  be  levied  or  assessed  upon  it  or any  of  its  Property  that  are  due  and payable if the failure to so pay would result in a lien on Collateral in excess of $5,000,00010,000,000 having  priority  to  the  lien  of  Administrative  Agent;  provided  that  the BorrowersBorrower  or  such Subsidiary may contest any item in good faith so long as adequate reserves are maintained with respect thereto in accordance with GAAP.        SECTION 7.9      Compliance with Laws and Approvals.  Observe and remain in compliance with all Applicable Laws and maintain in full force and effect all Governmental Approvals, in each case applicable  to  the  conduct  of  its  business  except  where  the  failure  to  do  so  could  not  reasonably  be expected to have a Material Adverse Effect.                                              81 103755581_3 119311063_5 

 

          SECTION 7.10    Environmental Laws.  In addition to and without limiting the generality of Section 7.9, except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (a) comply with, and ensure such compliance by all tenants and subtenants with all applicable Environmental Laws and obtain and comply with and maintain, and  ensure  that  all  tenants  and subtenants,  if  any,  obtain  and comply  with  and  maintain,  any  and  all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws, (b) conduct  and  complete  all  investigations,  studies,  sampling  and testing,  and  all  remedial,  removal  and other  actions  required  under  Environmental  Laws,  and  promptly  comply  with  all  lawful  orders  and directives of any Governmental Authority regarding Environmental Laws, and (c) defend, indemnify and hold  harmless  the  Administrative  Agent  and  the  Lenders,  and  their  respective  parents,  Subsidiaries, Affiliates,  employees,  agents,  officers  and  directors,  from  and  against  any  claims,  demands,  penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any way relating to the presence of Hazardous Materials, or the  violation  of,  non-compliance  with  or  liability  under  any  Environmental  Laws  applicable  to  the operations of the BorrowersBorrower or any such Subsidiary, or any orders, requirements or demands of Governmental  Authorities  related  thereto,  including,  without  limitation,  reasonable  attorney’s  and consultant’s  fees,  investigation  and  laboratory  fees,  response costs, court costs and litigation expenses, except  to  the  extent  that  any  of  the  foregoing  directly  result from  the  gross  negligence  or  willful misconduct  of  the  party  seeking  indemnification  therefor,  as  determined  by  a  court  of  competent jurisdiction by final non-appealable judgment.        SECTION 7.11     Compliance with ERISA.  In addition to and without limiting the generality of  Section 7.9,  (a)  except  where  the  failure  to  so  comply  could  not,  individually  or  in  the  aggregate, reasonably  be  expected  to  have  a  Material  Adverse  Effect,  (i)  comply  with  applicable  provisions  of ERISA,  the  Code  and  the  regulations  and  published  interpretations  thereunder  with  respect  to  all Employee Benefit Plans, (ii) not take any action or fail to take action the result of which could reasonably be expected to result in a liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any prohibited transaction that could result in any civil penalty under ERISA or tax under the Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code and  (b)  furnish  to  the  Administrative  Agent  upon  the  Administrative  Agent’s  request  such  additional information  about  any  Employee  Benefit  Plan  as  may  be  reasonably  requested  by  the  Administrative Agent.        SECTION 7.12     Compliance  with  Material Contracts.  Comply in all material respects with each Material Contract; provided, that the BorrowersBorrower or any such Subsidiary may contest the terms and conditions of any such Material Contract in good faith through applicable proceedings so long as adequate reserves are maintained in accordance with GAAP.         SECTION 7.13    Visits and Inspections.  Permit representatives of the Administrative Agent or any  Lender,  from  time  to  time  upon  prior  reasonable  notice  and at  such  times  during  normal  business hours, all at the expense of the BorrowersBorrower, to visit and inspect its properties; inspect, audit and make extracts from its books, records and files, including, but not limited to, management letters prepared by independent accountants; and discuss with its principal officers, and its independent accountants, its business, assets, liabilities, financial condition, results of operations and business prospects; provided that excluding  any  such  visits  and  inspections  during  the  continuation  of  an  Event  of  Default,  the Administrative Agent shall not exercise such rights more often than one (1) time during any calendar year at the Borrowers’Borrower’s expense (and no Lender may exercise any such right independently of the Administrative Agent); provided further that upon the occurrence and during the continuance of an Event of Default, the Administrative Agent or any Lender may do any of the foregoing at the expense of the BorrowersBorrower at any time without advance notice.                                            82 103755581_3 119311063_5 

 

         SECTION 7.14     Additional Subsidiaries.         (a)   Additional Domestic Subsidiaries.  Promptly after the creation or acquisition (including   by division) of any Domestic Subsidiary (and, in any event, within thirty (30) days after such creation or  acquisition, as such time period may be extended by the Administrative Agent in its sole discretion) (x)  deliver to the Administrative Agent such original certificated Equity Interests or other certificates and  stock or other transfer powers evidencing the Equity Interests of such Domestic Subsidiary and (y) cause  such  Domestic  Subsidiary  to (i) become a US Guarantor by delivering to the Administrative Agent a  duly  executed  supplement  to  the US  Subsidiary  Guaranty  Agreement  or  such  other  document  as  the  Administrative  Agent  shall  deem  appropriate  for  such  purpose,  (ii)  grant  a  security  interest  in  all  Collateral  (subject  to  the  exceptions  specified  in  the  applicable  Security  Documents)  owned  by  such  Domestic  Subsidiary  by  delivering  to  the  Administrative  Agent  a  duly  executed  supplement  to  each  applicable  Security  Document  or  such  other  document  as  the  Administrative  Agent  shall  deem  appropriate  for  such  purpose  and  comply  with  the  terms  of  each applicable  Security  Document,  (iii)  deliver to the Administrative Agent such opinions, documents and certificates referred to in Section 5.1  as may be reasonably requested by the Administrative Agent, (iv)  deliver to the Administrative Agent  such updated Schedules to the Loan Documents as requested by the Administrative Agent with respect to  such Domestic Subsidiary, and (v) deliver to the Administrative Agent such other documents as may be  reasonably  requested  by  the  Administrative  Agent  in  connection with  the  actions  under  this  Section   7.14(a),  all  in  form,  content  and scope reasonably satisfactory to the Administrative Agent; provided,  however, that this Section 7.14(a) shall only apply to a Domestic Subsidiary that would qualify as a US  Guarantor.         (b)   Additional Material Foreign Subsidiaries.  NotifyIn each case, subject to the limitation set   forth in clause (d) below, notify the Administrative Agent promptly after any Person becomes a Material   First-Tier  Foreign  Subsidiary of any Credit Party  (other than  Ubiquiti  Hong  Kong),  and  promptly  thereafter (and, in any event, within forty five (45) days after such notification, as such time period may  be extended by the Administrative Agent in its sole discretion), cause (i) the applicable Credit Party to  deliver to the Administrative Agent Security Documents pledging one sixty-five percent (65%) of the   Equity Interests of the total outstanding Equity Interests of such Material First-Tier Foreign Subsidiary   that are entitled to vote and one-hundred percent (100%) of the total outstanding Equity Interests of such  Material First-Tier Foreign  Subsidiary that are not  entitled to  vote  and  a  consent  thereto  executed  by  such  Material First-Tier Foreign  Subsidiary  (including,  without  limitation,  if  applicable,  original  certificated Equity Interests (or the equivalent thereof pursuant to the Applicable Laws and practices of  any  relevant  foreign  jurisdiction)  evidencing  the  Equity  Interests  of  such  Material First-Tier Foreign  Subsidiary, together with an appropriate undated stock or other transfer power for each certificate duly  executed in blank by the registered owner thereof), (ii) such Material First-Tier Foreign Subsidiary to  deliver  to  the  Administrative  Agent  such  opinions,  documents  and  certificates  substantially  similar  to  those referred to in Section 5.1 as may be reasonably requested by the Administrative Agent and, (iii)  such  Material First-Tier Foreign  Subsidiary  to  deliver  to  the  Administrative  Agent  such updated  Schedules to the Loan Documents as requested by the Administrative Agent with regard to such Material  First-Tier Foreign  Subsidiary  and  (iv)  such Material  First-Tier  Foreign Subsidiary  to  deliver  to  the  Administrative  Agent  such  other  documents  as  may  be  reasonably requested  by  the  Administrative  Agent  in  connection  with  the  foregoing,  all  in  form,  content  and  scope  reasonably  satisfactory  to  the  Administrative Agent; provided, however, that if the pledge pursuant to this Section 7.14(b) is to provide   security for a US Obligation, (x) then only Equity Interests in a Material First-Tier Foreign Subsidiary   shall be pledged and (y) the pledge pursuant to this Section 7.14(b) shall be limited to sixty five percent   (65%) of the Equity Interests of the total outstanding Equity Interests of such Material First-Tier Foreign   Subsidiary that are  entitled to  vote and  one  hundred  percent  (100%) of the total  outstanding  Equity   Interests of such Material First-Tier Foreign Subsidiary that are not entitled to vote.                                             83 103755581_3 119311063_5 

 

          (c)   Merger Subsidiaries.  Notwithstanding the foregoing, to the extent any new Subsidiary is  created  solely  for  the  purpose  of  consummating  a  merger  transaction  pursuant  to  a  Permitted  Acquisition, and such new Subsidiary at no time holds any assets or liabilities other than any merger  consideration  contributed  to  it substantially  contemporaneously  with  the  closing  of  such  merger  transaction, such new Subsidiary shall not be required to take the actions set forth in Section 7.14(a) or  (b), as applicable, until the consummation of such Permitted Acquisition (at which time, the surviving  entity of the respective merger transaction shall be required to so comply with Section 7.14(a) or (b), as  applicable,  within  thirty  (30)  days  of  the  consummation  of  such  Permitted  Acquisition,  as  such  time  period may be extended by the Administrative Agent in its sole discretion).         (d)   Material Foreign Subsidiaries.  If at any time the aggregate amount of assets or revenues   of all Foreign Subsidiaries that are not Material Foreign Subsidiaries, determined as of the end of the   most  recent  Fiscal  Year for which  financial  statements have  been  delivered,  exceed  15% of the   Consolidated assets or revenues of the Parent Borrower and its Subsidiaries as of such date, the Parent   Borrower shall  designate  additional  Foreign  Subsidiaries as  Material  Foreign  Subsidiaries in order to   satisfy such  15%  limit and  thereafter  comply  with the  requirements of Section  7.14(b)  with  respect   thereto.         (d)   (e) Exclusions. The provisions of this Section 7.14 shall not apply to assets as to which  the Administrative Agent and the Parent Borrower shall reasonably determine that the costs and burdens  of obtaining a security interest therein or perfection thereof outweigh the value of the security afforded  thereby.        SECTION 7.15     Use of Proceeds.  The BorrowersBorrower shall use the proceeds of (a) the Third  Amendment Term Loans  (ai)  to  refinance the  Indebtednessall  existing Term  Loans  outstanding under the Existing Creditthis Agreement, (b on the Third Amendment Effective Date and (ii) to pay fees, commissions and expenses in connection with the Transactions, (c) to repurchase Equity Interests of any  Credit Party or to make dividends to the holders of shares of any Equity Interests of any Credit Party and  (d)execution of the Third Amendment and transactions entered into in connection therewith, and (b) the  Revolving Credit Loans for working capital and general corporate purposes of the Parent Borrower and its Subsidiaries.  NoThe Borrower will not request any Extension of Credit, and nothe Borrower shall not  directly or, to suchthe Borrower’s knowledge, indirectly use, and shall ensure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not directly or, to suchthe Borrower’s or such Subsidiary’s knowledge, indirectly use, the proceeds of any Extension of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto.        SECTION 7.16     Further  Assurances.   Execute  any  and  all  further  documents,  financing statements,  agreements  and  instruments,  and  take  all  such  further  actions  (including  the  filing  and recording  of  financing  statements  and  other  documents), which may be required under any Applicable Law, or which the Administrative Agent or the Required Lenders may reasonably request, to effectuate the transactions contemplated by the Loan Documents or to grant, preserve, protect or perfect the Liens created or intended to be created by the Security Documents or the validity or priority of any such Lien, all  at  the  expense  of  the  Credit  Parties.   The BorrowersBorrower also agreeagrees  to  provide  to  the Administrative  Agent,  from  time  to  time  upon  the  reasonable  request  by  the  Administrative  Agent, evidence reasonably satisfactory to the Administrative Agent as to the perfection and priority of the Liens created or intended to be created by the Security Documents.                                             84 103755581_3 119311063_5 

 

         SECTION 7.17     Anti-Corruption Laws and Sanctions.  The Borrowers; Beneficial Ownership  Regulation; Anti-Money Laundering Laws.  The Borrower will (a) maintain in effect and enforce policies and  procedures  designed  to  ensure  compliance  by  the Borrowers, their  respectiveBorrower,  its Subsidiaries  and  their  respective  directors,  officers,  employees  and  agents  with  Anti-Corruption  Laws,  Anti-Money  Laundering Laws  and  applicable  Sanctions,  (b)  notify  the  Administrative  Agent and  each Lender that previously received a Beneficial Ownership Certification (or a certification that the Borrower  qualifies for an express exclusion to the “legal entity customer” definition under the Beneficial Ownership  Regulation)  of  any  change  in  the  information  provided  in  the  Beneficial  Ownership  Certification  that would result in a change to the list of beneficial owners identified therein (or, if applicable, the Borrower  ceasing to fall  within an  express  exclusion to the  definition of “legal  entity customer”  under the  Beneficial  Ownership  Regulation)  and  (c)  promptly  upon  the  reasonable  request  of  the  Administrative Agent  or  any  Lender,  provide  the  Administrative  Agent  or  such  Lender,  as  the  case  may  be,  any information or documentation requested by it for purposes of complying with the Beneficial Ownership Regulation.                                       ARTICLE VIII                                 NEGATIVE COVENANTS         Until all of the Obligations (other than contingent, indemnification obligations not then due) have been paid and satisfied in full in cash, all Letters of Credit have been terminated or expired (or been Cash Collateralized  or  other  arrangements  with  respect  thereto  have been  made  that  are  satisfactory  to  the Issuing Lender) and the Revolving Credit Commitments terminated, the Credit Parties will not, and will not permit any of their respective Subsidiaries to:         SECTION 8.1     Indebtedness.   Create,  incur,  assume  or  suffer  to  exist  any  Indebtedness except:         (a)   the Obligations;         (b)   Indebtedness  and  obligations  owing  under  Hedge  Agreements  entered into in order to  manage  existing  or  anticipated  interest  rate,  exchange  rate  or commodity  price  risks  and  not  for  speculative purposes;         (c)   Indebtedness  existing  on  the  Closing  Date  and  listed  on  Schedule 8.1,  and  any  refinancings, refundings, renewals or extensions thereof; provided that (i) the principal amount of such  Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by  an  amount  equal  to  a  reasonable  premium  or  other  reasonable  amount  paid,  and  fees  and  expenses  reasonably  incurred,  in  connection  with  such  refinancing  and  by  an  amount  equal  to  any  existing  commitments  unutilized  thereunder,  (ii)  the  final  maturity  date  and  weighted  average  life  of  such  refinancing, refunding, renewal or extension shall not be prior to or shorter than that applicable to the  Indebtedness  immediately  prior  to  such  refinancing,  refunding, renewal  or  extension  and  (iii)  any  refinancing,  refunding,  renewal  or  extension  of  any  Subordinated  Indebtedness  shall  be  (A)  on  subordination terms at least as favorable to the Lenders and (B) not materially more restrictive on the  Parent Borrower  and  its  Subsidiaries  than  the  Subordinated  Indebtedness  being  refinanced,  refunded,  renewed or extended;         (d)   Attributable  Indebtedness  with  respect  to  Capital  Lease  Obligations,  Synthetic  Leases  and purchase money Indebtedness in an aggregate amount not to exceed $75,000,000150,000,000 at any  time outstanding;                                              85 103755581_3 119311063_5 

 

          (e)   Guarantees  with  respect  to  Indebtedness  permitted  pursuant  to  this  Section  other  than  subsections  (f)  and  (j);  provided  that  any  Guarantees  with  respect  to  Subordinated  Indebtedness  permitted  pursuant  to  subsection (h)  shall  be  subordinated  in  right  and  time  of  payment  to  the  Obligations on the same terms and conditions as such Subordinated Indebtedness;         (f)   unsecured intercompany Indebtedness:               (i)    owed by any Credit Party to another Credit Party;               (ii)   owed  by  any  Credit  Party  to  any  Non-Credit  Party  (provided  that  such        Indebtedness shall be subordinated to the Obligations in a manner reasonably satisfactory to the        Administrative Agent);               (iii)  owed by any Non-Credit Party to any other Non-Credit Party; and               (iv)   owed  by  any  Non-Credit  Party  to  any  Credit  Party  to  the  extent permitted        pursuant to Section 8.3(a)(vi);         (g)   Indebtedness arising from the honoring by a bank or other financial institution of a check,  draft or other similar instrument drawn against insufficient funds in the ordinary course of business;         (h)   Subordinated  Indebtedness;  provided,  that  in  the  case  of  each  incurrence  of  such  Subordinated Indebtedness, (i) no Default or Event of Default shall have occurred and be continuing or  would be caused by the incurrence of such Subordinated Indebtedness and (ii) the Administrative Agent  shall have received satisfactory written evidence that the Parent Borrower would be in compliance with  the financial covenants set forth in Section 8.13 on a pro forma basis after giving effect to the issuance of  any such Subordinated Indebtedness;         (i)   Indebtedness under performance bonds, surety bonds, release, appeal and similar bonds,  statutory  obligations  or  with  respect  to  workers’  compensation claims,  in  each  case  incurred  in  the  ordinary course of business, and reimbursement obligations in respect of any of the foregoing;         (j)   Indebtedness (i) of a Person or Indebtedness attaching to assets of a Person that, in either  case, becomes a Subsidiary of a Credit Party or Indebtedness attaching to assets that are acquired by a  Credit Party, in each case after the Closing Date as the result of a Permitted Acquisition (or Indebtedness  assumed by such Person pursuant to a Permitted Acquisition as a result of a merger or consolidation to  effectuate  a  Permitted  Acquisition),  in  an  aggregate  principal amount,  when  added  to  the  aggregate  principal amounts of Indebtedness incurred pursuant to subclause (ii) below, not to exceed at any time  $15,000,00050,000,000;  provided  that  such  Indebtedness  existed  at  the  time  such  Person  became  a  Subsidiary or at the time such assets were acquired and, in each case, was not created in anticipation  thereof,  or  (ii)  owed  to  the  seller  of  any  property  acquired  pursuant  to  a  Permitted  Acquisition  in  an  aggregate  principal  amount,  when  added  to  the  aggregate  principal  amounts  of  Indebtedness  incurred  pursuant to subclause (i) above, not to exceed $15,000,00050,000,000 at any one time outstanding;         (k)   contingent liabilities in respect of any indemnification obligation, adjustment of purchase  price, non-compete, or similar obligation incurred in connection with the consummation of one or more  Permitted Acquisitions;         (l)   Indebtedness  incurred  in  the  ordinary  course  of  business  in  respect  of  (i)  Cash  Management  Agreements  with  a  Cash  Management  Bank  and  (ii)  other  credit  cards,  credit  card  processing  services,  debit  cards,  stored  value  cards,  commercial  cards  (including  so-called  “purchase                                             86 103755581_3 119311063_5 

 

    cards”, “procurement cards” or “p-cards”), or cash management services of any Foreign Subsidiaries in  an aggregate principal amount not to exceed $20,000,00040,000,000 at any time outstanding;         (m)   Indebtedness of Foreign Subsidiaries in an aggregate outstanding principal amount not to   exceed $50,000,000;         (n)   unsecured Indebtedness of the Borrower or any Subsidiary so long as, in each case, (i) no   Default or Event of Default shall have occurred and be continuing or would result after giving effect to   the incurrence of such Indebtedness, (ii) the Borrower is in compliance on a pro forma basis with the   financial covenants set forth in Section 8.13 as of the end of the most recently ended fiscal quarter for   which  financial  statements have  been  provided  pursuant to Section 7.1(a) or (b), as  applicable, after   giving effect to the incurrence of such Indebtedness, (iii) the final maturity date and weighted average   life to maturity of such Indebtedness shall not be prior to or shorter than the remaining weighted average   life to  maturity of the Third Amendment Term Loan or a maturity date earlier than the earlier of the   Term Loan Maturity Date and the Revolving Credit Maturity Date, and (iv) the terms and conditions of   such  Indebtedness  (including any  financial  covenants) are  not  materially more  restrictive,  taken as a   whole, than the terms of the Credit Facilities hereunder, except to the extent (A) such terms are added to   the Loan Documents for the benefit of the Lenders pursuant to an amendment hereto or thereto subject   solely to the reasonable satisfaction of the Administrative Agent or (B) otherwise reasonably acceptable   to the Administrative Agent; and         (o)   (m) Indebtedness  not  otherwise  permitted  pursuant  to  this  Section  in  an  aggregate  principal amount not to exceed $25,000,00050,000,000 at any time outstanding.         SECTION 8.2     Liens.  Create, incur, assume or suffer to exist, any Lien on or with respect to any of its Property, whether now owned or hereafter acquired, except:         (a)   Liens  created  pursuant  to  the  Loan  Documents  (including,  without  limitation,  Liens  in  favor  of  the  Swingline  Lender  and/or  the  Issuing  Lender,  as  applicable,  on  Cash  Collateral  granted  pursuant to the Loan Documents);         (b)   Liens  in  existence  on  the  Closing  Date  and  described  on  Schedule 8.2,  and  the  replacement,  renewal  or  extension  thereof  (including  Liens  incurred,  assumed  or  suffered  to  exist  in  connection with any refinancing, refunding, renewal or extension of Indebtedness pursuant to Section   8.1(c)  (solely  to  the  extent  that  such  Liens  were  in  existence  on  the  Closing  Date  and  described  on  Schedule 8.2)); provided that the scope of any such Lien shall not be increased, or otherwise expanded,  to cover any additional property or type of asset, as applicable, beyond that in existence on the Closing  Date, except for products and proceeds of the foregoing;         (c)   Liens  for  taxes,  assessments  and  other  governmental  charges  or levies  (excluding  any  Lien imposed pursuant to any of the provisions of ERISA or Environmental Laws) (i) not yet due or as  to which the period of grace (not to exceed thirty (30) days), if any, related thereto has not expired or (ii)  which  are  being  contested  in  good  faith  and  by  appropriate  proceedings  if  adequate  reserves  are  maintained to the extent required by GAAP or applicable local accounting standards;         (d)   the  claims  of  materialmen,  mechanics,  carriers, warehousemen, processors or landlords  for  labor,  materials,  supplies  or  rentals  incurred  in  the  ordinary  course  of  business,  which  (i)  are  not  overdue for a period of more than thirty (30) days, or if more than thirty (30) days overdue, no action has  been taken to enforce such Liens and such Liens are being contested in good faith and by appropriate  proceedings  if  adequate  reserves are  maintained  to  the  extent  required  by  GAAP  or  applicable  local                                             87 103755581_3 119311063_5 

 

    accounting standards and (ii) do not, individually or in the aggregate, materially impair the use thereof in  the operation of the business of the Parent Borrower or any of its Subsidiaries;         (e)   deposits  or  pledges  made  in  the  ordinary  course  of  business  in connection  with,  or  to  secure payment of, obligations under workers’ compensation, unemployment insurance and other types  of social security or similar legislation, or to secure the performance of bids, trade contracts and leases  (other than Indebtedness), statutory obligations, surety bonds (other than bonds related to judgments or  litigation), performance bonds and other obligations of a like nature incurred in the ordinary course of  business, in each case, so long as no foreclosure sale or similar proceeding has been commenced with  respect to any portion of the Collateral on account thereof;         (f)   encumbrances in the nature of zoning restrictions, easements and rights or restrictions of  record on the use of real property, which in the aggregate are not substantial in amount and which do  not, in any case, detract from the value of such property or impair the use thereof in the ordinary conduct  of business;         (g)   Liens arising from the filing of precautionary UCC financing statements (or similar Liens  in foreign jurisdictions) relating solely to personal property leased pursuant to operating leases entered  into in the ordinary course of business of the BorrowersBorrower and theirits Subsidiaries;         (h)   Liens securing Indebtedness permitted under Section 8.1(d); provided that (i) such Liens  shall be created concurrently with or within 90 days after the acquisition, repair, improvement or lease,  as applicable, of the related Property, (ii) such Liens do not at any time encumber any property other  than the Property financed by such Indebtedness and the proceeds thereof and (iii) the principal amount  of Indebtedness secured by any such Lien shall at no time exceed one hundred percent (100%) of the  price for the purchase, repair improvement or lease amount (as applicable) of such Property;         (i)   Liens securing judgments for the payment of money not constituting an Event of Default  under Section 9.1(m) or securing appeal or other surety bonds relating to such judgments;         (j)   (i)  Liens  of  a  collecting  bank  arising  in  the  ordinary  course  of  business  under  Section  4-210 of the Uniform Commercial Code in effect in the relevant jurisdiction or similar law of a foreign  jurisdiction  and  (ii)  Liens  of any  depositary  bank  in  connection  with  statutory,  common  law  and  contractual  rights  of  set-off  and  recoupment  with  respect  to  any  deposit  account  of  the  BorrowersBorrower or any Subsidiary thereof;         (k)   (i) contractual or statutory Liens of landlords to the extent relating to the property and  assets  relating  to  any  lease  agreements  with  such  landlord,  and  (ii)  contractual  Liens  of  suppliers  (including sellers of goods) or customers granted in the ordinary course of business to the extent limited  to the property or assets relating to such contract;         (l)   any  interest  or  title  of  a  licensor,  sublicensor,  lessor  or  sublessor  with  respect  to  any  assets under any license or lease agreement which do not (i) interfere in any material respect with the  business of the Parent Borrower or its Subsidiaries or materially detract from the value of the relevant  assets of the Parent Borrower or its Subsidiaries or (ii) secure any Indebtedness;         (m)   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;                                              88 103755581_3 119311063_5 

 

          (n)   Liens solely on any cash earnest money deposits made by athe Borrower or any of its  Subsidiaries in connection with any letter of intent or purchase agreement with respect to a Permitted  Acquisition;         (o)   Liens  securing  Indebtedness  permitted  under  Section 8.1(j);  provided  that  (i)  any  such  Lien existed at the time such Person became a Subsidiary or at the time such assets were acquired and, in  each case, was not created in anticipation thereof and (ii) any such Lien secures only those obligations  which it secures on the date that such Person becomes a Subsidiary or the date of such merger or the date  of such acquisition;         (p)   Liens on assets of Foreign Subsidiaries securing Indebtedness of such Foreign Subsidiary   permitted  under  Section 8.1(m), so  long as such Liens to  not extend to, or  encumber,  assets that   constitute Collateral or the Equity Interests of the Borrower or any of the Subsidiaries; and         (q)   (p) Liens not otherwise permitted hereunder on assets other than the Collateral securing  Indebtedness  or  other  obligations  in  the  aggregate  principal  amount  not  to  exceed  $25,000,00050,000,000 at any time outstanding.  Notwithstanding  the  foregoing,  in  no  event  shall  this  Section  permit  any  Liens  on  (x)  any  Intellectual Property (other than agreements among the Parent Borrower, Ubiquiti Hong Kong and Ubiquiti Cayman  Limited, existing on the Closing Date and agreements among the Ubiquiti Cayman Borrower and Ubiquiti Global existing on the First Amendment Effective Date, in each case as such agreements are amended from time to time in accordance with their terms; provided such amendments are not materially adverse to the  Lenders’  interests)  and  (y)  cash  and  Cash  Equivalents  (other  than  Liens  permitted  under  Section  8.2(a), 8.2(j), 8.2(n) or 8.2(jp)) of the Parent Borrower or any Subsidiary.         SECTION 8.3     Investments.   Purchase,  own,  invest  in  or  otherwise  acquire  (in  one transaction  or  a  series  of  transactions), by  division or  otherwise,  directly  or  indirectly,  any  Equity Interests,  interests  in  any  partnership  or  joint  venture  (including,  without  limitation,  the  creation  or capitalization of any Subsidiary), evidence of Indebtedness or other obligation or security, substantially all  or  a  portion  of  the  business  or  assets  of  any  other  Person or  any  other  investment  or  interest whatsoever in any other Person, or make or permit to exist, directly or indirectly, any loans, advances or extensions of credit to, or any investment in cash or by delivery of Property in, any Person (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business, and (b) any evidence of Indebtedness or other obligation in the nature of accounts receivable of the Parent Borrower and/or its Subsidiaries entered into in the ordinary course of business) (all the foregoing, “Investments”) except:         (a)   (i)    Investments existing on the Closing Date in Subsidiaries existing on the Closing       Date;               (ii)   Investments existing on the Closing Date (other than Investments in Subsidiaries        existing on the Closing Date) and described on Schedule 8.3;               (iii)  Investments made after the Closing Date by any Credit Party in any other Credit       Party;               (iv)   Investments made after the Closing Date by any Non-Credit Party in any other       Non-Credit Party; and                                              89 103755581_3 119311063_5 

 

                (v)    Investments made after the Closing Date by any Non-Credit Party in any Credit       Party;               (vi)   Investments made after the Closing Date (other than Intellectual Property) by any       Credit  Party  in  any  Non-Credit  Party  in  an  aggregate  amount  at any  time  outstanding  not  to       exceed (A) $15,000,000 less (B) the amount of outstanding Investments made pursuant to Section        8.3(g)(ii)the Non-Credit Party Investment Amount; and               (vii)  Investments  made  after  the  Closing  Date  by  any  Credit  Party  in  any  newly       formed Non-Credit Party which is required by law to maintain a minimum net capital requirement       or as may be otherwise required by applicable law or constituting an initial capitalization of such       Non-Credit  Party,  in  each  case  not  to  exceed  $250,000500,000  per  Non-Credit  Party  and       $5,000,00010,000,000 in the aggregate during the term of this Agreement;         (b)   Investments in cash and Cash Equivalents;         (c)   Investments consisting of Capital Expenditures permitted by this Agreement;         (d)   deposits made in the ordinary course of business to secure the performance of leases or  other obligations as permitted by Section 8.2;         (e)   Hedge Agreements permitted pursuant to Section 8.1;         (f)   purchases of assets or services in the ordinary course of business;         (g)   Investments in the form of:               (i)    Permitted Acquisitions to the extent that any Person or Property acquired in such        acquisition becomes a part of eitherthe Borrower or a Guarantor or becomes a Guarantor in the       manner contemplated by Section 7.14; and               (ii)   Permitted Acquisitions to the extent that any Person or Property acquired in such        acquisition does not become a Guarantor or a part of a Guarantor or either BorrowerCredit Party       in  an  aggregate  amount  at  any  time  outstanding  not  to  exceed (A)  $15,000,000 less (B) the        amount of outstanding Investments made pursuant to Section 8.3(a)(vi) for such Fiscal Yearthe        Non-Credit Party Investment Amount;         (h)   Investments in the form of Restricted Payments permitted pursuant to Section 8.6;         (i)   Guarantees permitted pursuant to Section 8.1;         (j)   Investments (including debt obligations) received in connection with the bankruptcy or  reorganization  of  customers  or suppliers  and  in  settlement  of  delinquent  obligations  of,  and  other  disputes with, customers or suppliers;         (k)   Investments  consisting  of  notes  receivable  of,  or  prepaid  royalties  and  other  credit  extensions, to customers and suppliers, in the ordinary course of business; provided that this paragraph   (k) shall not apply to Investments of the BorrowersBorrower in any Subsidiary;         (l)   Investments not otherwise permitted pursuant to this Section in an aggregate amount not  to  exceed  $500,0005,000,000  at  any  time;  provided  that,  immediately  before  and  immediately  after                                             90 103755581_3 119311063_5 

 

    giving pro forma effect to any such Investments, no Default or Event of Default shall have occurred and  be continuing; and         (m)   Investments consisting of purchases of minority Equity Interests in Persons that are not   and will not become Affiliates of the Parent Borrower or any of its Subsidiaries (and any Investments   made by Credit  Partiesadditional  Investments  (other than (x)  Intellectual  Property and (y) any   Investment by a Credit Party in a  Non-Credit Parties the  proceeds of which are  used to  fund such   purchases of minority Equity Interests) in an aggregate amount during the term of this Agreement not to   exceed (x)  $100,000,000 minus (y) the  aggregate  amount of  Permitted  Acquisitions made  during the   term of this Agreement (based on the aggregate amount of the purchase price, including, but not limited   to, any  assumed debt,  earn-outs (valued at the maximum  amount  payable  thereunder),  deferred   payments, or  Equity  Interests of a  Borrower, to be paid in  cash in  connection  with such  Permitted   Acquisitions, but excluding any portion of such Permitted Acquisitions paid from any Equity Issuance);   provided thatParty) so long as, in each case, (i) no Default or Event of Default shall have occurred and  beis  continuing both before and after  giving  effect to such  Investment,  (ii) the  Person or  business in   which such Investment is made shall be in a line of business permitted pursuant to Section 8.11, and (iii)   the  Parent  Borrower is in  compliance on a Pro Forma  Basis  (for the most  recent  fiscal  quarter end   preceding such Investment for which financial statements are available andor would result therefrom and   (ii) after giving effect thereto and any Indebtedness incurred in connection therewith) with (A) Section   8.13(b) and (B) a on a pro forma basis, the Consolidated Total Leverage Ratio nois not greater than 3.00  to 1.00.  For purposes of determining the amount of any Investment outstanding for purposes of this Section 8.3  (other than  under clause  (m)),8.3,  such  amount  shall  be  deemed  to  be  the  amount  of  such  Investment when made, purchased or acquired (without adjustment for subsequent increases or decreases in the value of such Investment) less any amount realized in respect of such Investment upon the sale, collection or return of capital (not to exceed the original amount invested).        SECTION 8.4      Fundamental  Changes.   Merge,  consolidate  or  enter  into  any  similar combination with (including by division), or enter into any Asset Disposition of all or substantially all of its assets (whether in a single transaction or a series of transactions) with, any other Person or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution) except:         (a)   (i)  any  Wholly-Owned  Subsidiary  of  the Parent Borrower  (other than the Cayman   Borrower) may be merged, amalgamated or consolidated with or into the Parent Borrower (provided that  the Parent Borrower shall be the continuing or surviving entity) or (ii) any Wholly-Owned Subsidiary of  the Cayman Borrower may be merged, amalgamated or consolidated with or into the Cayman Borrower   or any Guarantor (provided that (x) in the case of a merger, amalgamation or consolidation involving the   Cayman Borrower, the Cayman Borrower shall be the continuing or surviving entity and (y) in the case  of a merger, amalgamation or consolidation involving a Guarantor, the Guarantor shall be the continuing  or surviving entity);         (b)   any Non-Credit Party may be merged, amalgamated or consolidated with or into, or be  liquidated into, any other Non-Credit Party;         (c)   any Subsidiary (other than the Cayman Borrower) may dispose of all or substantially all  of its assets (upon voluntary liquidation, dissolution, winding up, division or otherwise) to the Parent   Borrower or any Guarantor; provided that, with respect to any such disposition by any Non-Credit Party,  the consideration for such disposition shall not exceed the fair value of such assets;                                              91 103755581_3 119311063_5 

 

          (d)   any Non-Credit Party may dispose of all or substantially all of its assets, upon voluntary  liquidation, dissolution, winding up, division or otherwise, to any other Non-Credit Party;         (e)   any Wholly-Owned Subsidiary of the Parent Borrower may merge with or into the Person  such  Wholly-Owned  Subsidiary  was  formed  to  acquire  in  connection  with  any  acquisition  permitted  hereunder;  provided  that  in  the  case  of  any  merger  involving  a  Wholly-Owned  Subsidiary  that  is  a  Guarantor, (i) a Guarantor shall be the continuing or surviving entity or (ii) simultaneously with such  transaction,  the  continuing  or  surviving  entity  shall  become  a Guarantor  and  the BorrowersBorrower  shall comply with Section 7.14 in connection therewith; and         (f)   any Person may merge into the Parent Borrower or any of its Wholly-Owned Subsidiaries  in  connection  with  a  Permitted  Acquisition;  provided  that  (i)  in  the  case  of  a  merger  involving athe  Borrower or a Guarantor, the continuing or surviving Person shall be athe Borrower or such Guarantor  and (ii) the continuing or surviving Person shall be the Borrower or a Wholly-Owned Subsidiary of the  Parent Borrower.  Notwithstanding the foregoing, at all times during the term of this Agreement, (i) Ubiquiti Hong Kong,  Ubiquiti Cayman and Ubiquiti Global shall remain directly owned Subsidiaries of the Cayman Borrower  and (ii) the Cayman BorrowerCayman shall remain a directly owned Subsidiary of the Parent Borrower.        SECTION 8.5      Asset Dispositions.  Make any Asset Disposition except:         (a)   the sale of obsolete, worn-out or surplus assets, or other assets no longer used or usable in  the business of the Parent Borrower or any of its Subsidiaries;         (b)   licenses and sublicenses of intellectual property rights in the ordinary course of business  not interfering, individually or in the aggregate, in any material respect with the conduct of the business  of the Parent Borrower and its Subsidiaries;         (c)   leases,  subleases,  licenses  or  sublicenses  of  real  or  personal property  granted  by  the  Parent Borrower  or  any  of  its  Subsidiaries  to  others  in the ordinary course of business not detracting  from the value of such real or personal property or interfering in any material respect with the business  of the Parent Borrower or any of its Subsidiaries;         (d)   Asset Dispositions in connection with transactions permitted by Section 8.4;         (e)   the sale of inventory in the ordinary course of business;         (f)   the  transfer  of  assets  to eitherthe  Borrower  or  any  Guarantor  pursuant  to  any  other  transaction permitted pursuant to Section 8.4;         (g)   the  write-off,  discount,  sale  or  other  Asset  Disposition  of  defaulted  or  past-due  receivables and similar obligations in the ordinary course of business and not undertaken as part of an  accounts receivable financing transaction;         (h)   the Asset Disposition of any Hedge Agreement;         (i)   Asset Dispositions of Investments in cash and Cash Equivalents;         (j)   the transfer by any Credit Party of its assets to any other Credit Party;                                             92 103755581_3 119311063_5 

 

          (k)   the  transfer  by  any  Credit  Party  of  its  assets  (other  than  Intellectual  Property)  to  any  Non-Credit Party as an Investment in accordance with Section 8.3(a)(vi);         (l)   the transfer by any Non-Credit Party of its assets to any Credit Party (provided that in  connection with any new transfer, such Credit Party shall not pay more than an amount equal to the fair  market value of such assets as determined in good faith at the time of such transfer);         (m)   the transfer by any Non-Credit Party of its assets to any other Non-Credit Party;         (n)   any involuntary loss, damage or destruction of property;         (o)   any  involuntary  condemnation,  seizure  or  taking,  by  exercise  of  the  power  of  eminent  domain or otherwise, or confiscation or requisition of use of property;         (p)   (i) the lapse of registered patents, trademarks, copyrights and other intellectual property  rights  of anythe  Borrower  and  any  of  its  Subsidiaries  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)), such lapse is not materially adverse to the interests of the Lenders;         (q)   Asset  Dispositions of  non-core  assets  not  otherwise  useful in the  business of the   Borrower and its Subsidiaries acquired in connection with a Permitted Acquisition or other Investment   permitted hereunder consummated after the Third Amendment Effective Date, so long as, in each case,   (i) no Default or Event of Default shall have occurred and is continuing or would result therefrom and   (ii) after giving effect thereto on a pro forma basis, the Consolidated Total Leverage Ratio is not greater   than 2.50 to 1.00; and         (r)   (q) Asset Dispositions not otherwise permitted pursuant to this Section; provided that (i)  at the time of such Asset Disposition, no Default or Event of Default shall exist or would result from  such Asset Disposition, (ii) such Asset Disposition is made for fair market value and the consideration  received shall be no less than 75% in cash, (iii) the aggregate fair market value of all property disposed  of  in  reliance  on  this  clause (q) shall  not  exceed  $15,000,000  during any  Fiscal  Year and (iv) the   aggregate fair market value of any Intellectual Property disposed of in reliance on this clause (q) shall   not exceed $5,000,000 during any Fiscal Yearr) shall not exceed (A) 5% of Consolidated EBITDA as of   the end of the most recently ended four consecutive fiscal quarter period for which financial statements   have  been  provided  pursuant to  Section 7.1(a) or (b), as  applicable, in any  Fiscal  Year, plus (B)   $50,000,000 during the term of this Agreement.        SECTION 8.6      Restricted Payments.  Declare or pay any dividend on, or make any payment or  other  distribution  on  account  of,  or  purchase,  redeem,  retire  or  otherwise  acquire  (directly  or indirectly),  or  set  apart  assets  for  a  sinking  or  other  analogous  fund  for  the  purchase,  redemption, retirement  or  other  acquisition  of,  any  class  of  Equity  Interests  of  any  Credit  Party  or  any  Subsidiary thereof,  or  make  any  distribution  of  cash,  property  or  assets  to  the  holders  of  shares  of  any  Equity Interests of any Credit Party or any Subsidiary thereof (all of the foregoing, the “Restricted Payments”) provided that:         (a)   so long as no Default or Event of Default has occurred and is continuing or would result  therefrom, the Parent Borrower  or  any  of  its  Subsidiaries  may  pay  dividends  in  shares of its own  Qualified Equity Interests;         (b)   any  Subsidiary  of  the Parent Borrower  may  make  Restricted  Payments  to  any  Credit  Party;                                             93 103755581_3 119311063_5 

 

          (c)   any Non-Credit Party may make Restricted Payments to any other Non-Credit Party (and,  if applicable, to other holders of its outstanding Equity Interests on a ratable basis);         (d)   Restricted  Payments  pursuant  to  and  in  accordance  with  stock  option  plans  or  other  benefit  plans  for  directors,  management,  employees  or  consultants  of  the Parent Borrower  and  its  Subsidiaries in an aggregate amount not to exceed $5,000,00010,000,000 in any Fiscal Year; and         (e)   the BorrowersBorrower shall be permitted to make Restricted Payments; provided that (i)  no Default or Event of Default has occurred and is continuing or would result therefrom, and (ii) the pro  forma Consolidated Total Leverage Ratio based on the most recent financial statements that have been  delivered pursuant to Section 7.1(a) or (b) or, from the period from the Closing Date until such financial   statements are required to be delivered, the financial statements delivered to the Administrative Agent   prior to the Closing Date for the period ending September 30, 2017,, as applicable, calculated on a pro  forma basis after giving effect to such Restricted Payment, does not exceed 3.00 to 1.00.         SECTION 8.7     Transactions with Affiliates.  Directly or indirectly enter into any transaction, including,  without  limitation,  any  purchase,  sale,  lease  or  exchange  of  Property,  the  rendering  of  any service or the payment of any management, advisory or similar fees, with (a) any officer, director, holder of any Equity Interests in, or other Affiliate of, the Parent Borrower or any of its Subsidiaries or (b) any Affiliate of any such officer, director or holder, other than:               (i)    transactions permitted by Sections 8.1, 8.3, 8.4, 8.5, and 8.6;               (ii)   transactions existing on the Closing Date and described on Schedule 8.7;               (iii)  transactions (x) among Credit Parties and (y) among Non-Credit Parties;               (iv)   other transactions in the ordinary course of business on terms at least as favorable        as could be obtained by it in arm’s-length transaction with an unrelated third party, as determined        in  good  faith  by eitherthe  Borrower  and,  if  such  transaction  involves  over       $15,000,000,20,000,000,  the  board  of  directors  (or  equivalent  governing  body)  of  the Parent        Borrower;               (v)    employment  and  severance  arrangements  (including  equity  incentive  plans  and       employee benefit plans and arrangements) and indemnification agreements or arrangements with       their respective directors, officers and employees in the ordinary course of business;               (vi)   payment of customary fees and reasonable out of pocket costs to, and indemnities       for the benefit of, directors, officers and employees of the Parent Borrower and its Subsidiaries in       the  ordinary  course  of  business  to  the  extent  attributable  to  the  ownership  or  operation  of  the       Parent Borrower and its Subsidiaries; and               (vii)  transfer  pricing  arrangements  among  the  Credit  Parties  and  their  Subsidiaries        entered into in the ordinary course of business and consistent with past practices.         SECTION 8.8     Accounting Changes; Organizational Documents.         (a)   Change its Fiscal Year end, or make (without the consent of the Administrative Agent)  any material change in its accounting treatment and reporting practices, except as required by GAAP or  applicable local accounting standards or to change the Fiscal Year end of a Subsidiary to conform its  fiscal year to that of the Parent Borrower.                                             94 103755581_3 119311063_5 

 

          (b)   Amend,  modify  or  change  its  articles  of  incorporation  (or  corporate  charter  or  other  similar organizational documents) or amend, modify or change its bylaws (or other similar documents)  in any manner materially adverse to the rights or interests of the Lenders.        SECTION 8.9      Payments and Modifications of SubordinatedJunior Indebtedness.         (a)   Amend, modify, waive or supplement (or permit the modification, amendment, waiver or  supplement of) any of the terms or provisions of any SubordinatedJunior Indebtedness in any respect  which  would  materially  and  adversely  affect  the  rights  or  interests  of  the  Administrative  Agent  and  Lenders hereunder.         (b)   Cancel,  forgive,  make  any  payment  or  prepayment  on,  or  redeem  or  acquire  for  value  (including, without limitation, (x) by way of depositing with any trustee with respect thereto money or  securities  before  due  for  the  purpose  of  paying  when  due  and  (y)  at  the  maturity  thereof)  any  SubordinatedJunior Indebtedness, except:               (i)    refinancings,  refundings,  renewals,  extensions  or  exchange  of  any       SubordinatedJunior Indebtedness permitted by Section 8.1 and, with respect to any Subordinated        Indebtedness, by any subordination provisions applicable thereto;               (ii)   payments and prepayments of any SubordinatedJunior Indebtedness made solely       with the proceeds of Qualified Equity Interests not otherwise required to prepay Loans pursuant       to Section 2.11(b)(ii); and               (iii)  the  payment  of  interest,  expenses  and  indemnities  in  respect  of       SubordinatedJunior Indebtedness (other than, with respect to any Subordinated Indebtedness, any       such payments prohibited by any subordination provisions applicable thereto).; and               (iv)   payments and prepayments of any  Junior  Indebtedness;  provided that (i) no        Default or Event of Default has occurred and is continuing or would result therefrom, and (ii) the        pro forma Consolidated Total Leverage Ratio based on the most recent financial statements that        have been delivered pursuant to Section 7.1(a) or (b), as applicable, calculated on a pro forma        basis after giving effect to such payment or prepayment, does not exceed 3.00 to 1.00.        SECTION 8.10     No Further Negative Pledges; Restrictive Agreements.         (a)   Enter into, assume or be subject to any agreement prohibiting or otherwise restricting the  creation  or  assumption  of  any  Lien  upon  its  properties  or  assets,  whether  now  owned  or  hereafter  acquired, or requiring the grant of any security for such obligation if security is given for some other  obligation,  except  (i)  pursuant  to  this  Agreement  and  the  other Loan Documents, (ii) pursuant to any  document or instrument governing Indebtedness incurred pursuant to Section 8.1(d) (provided that any  such  restriction  contained  therein  relates  only  to  the  asset  or  assets  financed  thereby),  (iii)  customary  restrictions contained in the organizational documents of any Non-Credit Party as of the Closing Date  and (iv) customary restrictions in connection with any Permitted Lien or any document or instrument  governing any Permitted Lien (provided that any such restriction contained therein relates only to the  asset or assets subject to such Permitted Lien).         (b)   Create  or  otherwise  cause  or  suffer  to  exist  or  become  effective  any  consensual  encumbrance  or  restriction  on  the  ability  of  any  Credit  Party  or  any  Subsidiary  thereof  to  (i)  pay  dividends or other distributions with respect to its Equity Interests to any Credit Party or (ii) act as a  Credit Party pursuant to the Loan Documents or any renewals, refinancings, exchanges, refundings or                                             95 103755581_3 119311063_5 

 

    extension thereof, except in each case for such encumbrances or restrictions existing under or by reason  of  (A)  this  Agreement  and  the  other  Loan  Documents,  (B)  Applicable  Law,  (C)  any  document  or  instrument  governing  Indebtedness  incurred  pursuant  to  Section 8.1(d)  (provided  that  any  such  restriction contained therein relates only to the asset or assets acquired in connection therewith), (D) any  Permitted Lien or any document or instrument governing any Permitted Lien (provided that any such  restriction  contained  therein  relates  only  to  the  asset  or  assets  subject  to  such  Permitted  Lien),  (E)  obligations that are binding on a Subsidiary at the time such Subsidiary first becomes a Subsidiary of  eitherthe  Borrower,  so  long  as  such  obligations  are  not  entered  into  in contemplation  of  such  Person  becoming  a  Subsidiary,  (F)  customary  restrictions  contained  in an  agreement  related  to  the  sale  of  Property  (to  the  extent  such  sale  is  permitted  pursuant  to  Section 8.5)  that  limit  the  transfer  of  such  Property pending the consummation of such sale, (G) customary restrictions in leases, subleases, licenses  and  sublicenses  or  asset  sale  agreements  otherwise  permitted  by  this  Agreement  so  long  as  such  restrictions relate only to the assets subject thereto and (H) customary provisions restricting assignment  of any agreement entered into in the ordinary course of business.         SECTION 8.11    Nature of  Business.   Engage  in  any  business  other  than  the  business conducted  by  the Parent Borrower  and  its  Subsidiaries  as  of  the  Closing  Date  and  business  activities reasonably related or ancillary thereto or that are reasonable extensions thereof.        SECTION 8.12     Capital  Expenditures.  Permit the  aggregate  amount of all  Capital  Expenditures in any  Fiscal  Year to  exceed  $75,000,000; provided that the Credit  Parties and their  Subsidiaries may make additional Capital Expenditures in each such Fiscal Year in an aggregate amount  not to exceed $25,000,000 if (i) the Consolidated Total Leverage Ratio based on the most recent financial  statements provided pursuant to Section 7.1(a) or (b), as applicable, calculated on a pro forma basis after  giving effect to such Capital Expenditures, does not exceed 3.00 to 1.00 and (ii) no Default or Event of  Default exists or would result therefrom[Reserved].        SECTION 8.13     Financial Covenants.         (a)   Consolidated Total Leverage Ratio.  As of the last day of any fiscal quarter, permit the  Consolidated Total Leverage Ratio to be greater than 3.25 to 1.00.  Notwithstanding the foregoing, in   connection with any Permitted Acquisition having aggregate cash consideration (including cash, Cash   Equivalents and other deferred payment obligations) in excess of $200,000,000, the Borrower may, at its   election, in  connection  with such  Permitted  Acquisition and  upon prior  written  notice to the   Administrative Agent, increase the required Consolidated Total Leverage Ratio pursuant to this Section   8.13(a) to 3.75 to  1.00, which such  increase shall be  applicable (i)  with  respect to a  Permitted   Acquisition that is not a Limited Condition Acquisition, for the fiscal quarter in which such Permitted   Acquisition is consummated and the three (3) consecutive quarterly test periods thereafter or (ii) with   respect to a Permitted Acquisition that is a Limited Condition Acquisition, for purposes of determining   compliance on a pro forma basis with this Section 8.13(a) on the LCA Test Date, for the fiscal quarter in   which such  Permitted  Acquisition is  consummated and for the three (3)  consecutive  quarterly  test   periods after which such  Permitted  Acquisition is  consummated  (each, a “Leverage  Ratio  Increase”);   provided that (x) such increase shall apply solely with respect to compliance with this Section 8.13(a)   and any  determination of the  Consolidated Total  Leverage  Ratio for  purposes of the  definition of   Permitted  Acquisition and any  incurrence  test  with  respect to any  Indebtedness  used to  finance a   Permitted Acquisition and shall not apply to any other incurrence test set forth in this Agreement and (y)   there shall be at least two (2) full fiscal quarters following the cessation of each such Leverage Ratio   Increase during which no Leverage Ratio Increase shall then be in effect.                                              96 103755581_3 119311063_5 

 

          (b)   Minimum Liquidity.  AtConsolidated Interest Coverage Ratio.  As of the last day of any  timefiscal  quarter,  permit Liquiditythe  Consolidated  Interest  Coverage  Ratio  to  be  less  than  $250,000,000.3.50 to 1.00.        SECTION 8.14     Disposal of  Subsidiary  Interests.   Permit  any  Domestic  Subsidiary  to  be  a non-Wholly-Owned  Subsidiary  except  as  a  result  of  or  in  connection  with  a  dissolution,  merger, amalgamation, consolidation or disposition permitted by Section 8.4 or 8.5.                                        ARTICLE IX                                DEFAULT AND REMEDIES         SECTION 9.1     Events of  Default.   Each  of  the  following  shall  constitute  an  Event  of Default:         (a)   Default in Payment of Principal of  Loans and  Reimbursement  Obligations.  EitherThe  Borrower shall default in any payment of principal on any Loan or Reimbursement Obligation when and  as due (whether at maturity, by reason of acceleration or otherwise).         (b)   Other Payment Default.  EitherThe Borrower shall default in the payment when and as  due  (whether  at  maturity,  by  reason  of  acceleration  or  otherwise)  of  interest  on  any  Loan  or  Reimbursement Obligation or the payment of any other Obligation, and such default shall continue for a  period of three (3) Business Days.         (c)   Misrepresentation.  Any representation, warranty, certification or statement of fact made  or deemed made by or on behalf of any Credit Party or any Subsidiary thereof in this Agreement, in any  other Loan Document, or in any document delivered in connection herewith or therewith that is subject  to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in any respect  when made or deemed made or any representation, warranty, certification or statement of fact made or  deemed made by or on behalf of any Credit Party or any Subsidiary thereof in this Agreement, any other  Loan Document, or in any document delivered in connection herewith or therewith that is not subject to  materiality  or  Material  Adverse  Effect  qualifications,  shall  be  incorrect  or  misleading  in  any  material  respect when made or deemed made.         (d)   Default in  Performance of  Certain  Covenants.   Any  Credit  Party  or  any  Subsidiary  thereof  shall  default  in  the  performance  or  observance  of  any  covenant  or  agreement  contained  in  Sections 7.1, 7.2 (a) or (c), 7.3(a), 7.4, 7.14, 7.15 or 7.17 or Article VIII.         (e)   Default in  Performance of Other  Covenants and  Conditions.   Any  Credit  Party  or  any  Subsidiary thereof shall default in the performance or observance of any term, covenant, condition or  agreement contained in this Agreement (other than as specifically provided for in this Section) or any  other Loan Document and such default shall continue for a period of thirty (30) days after the earlier of  (i)  the  Administrative  Agent’s delivery  of  written  notice  thereof  to  the  Borrower  Agent and (ii) a  Responsible Officer of any Credit Party having obtained knowledge thereof.         (f)   Indebtedness Cross-Default.  Any Credit Party or any Subsidiary thereof shall (i) default  in  the  payment  of  any  Indebtedness  (other  than  the  Loans  or  any  Reimbursement  Obligation)  the  aggregate principal amount (including undrawn committed or available amounts), or with respect to any  Hedge Agreement, the Hedge Termination Value, of which is in excess of the Threshold Amount beyond  the period of grace if any, provided in the instrument or agreement under which such Indebtedness was  created, or (ii) default in the observance or performance of any other agreement or condition relating to  any  Indebtedness  (other  than  the  Loans  or  any  Reimbursement  Obligation)  the  aggregate  principal                                             97 103755581_3 119311063_5 

 

    amount (including undrawn committed or available amounts), or with respect to any Hedge Agreement,  the  Hedge  Termination  Value,  of  which  is  in  excess  of  the  Threshold  Amount  or  contained  in  any  instrument  or  agreement  evidencing,  securing  or  relating  thereto  or  any  other  event  shall  occur  or  condition exist, the effect of which default or other event or condition is to cause, or to permit the holder  or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, with  the giving of notice and/or lapse of time, if required, any such Indebtedness to become due prior to its  stated maturity (any applicable grace period having expired).         (g)   Attachment.  If any material portion of the Parent Borrower’s, the Cayman Borrower’s or   Ubiquiti Hong Kong’s assets isare attached, seized, subjected to a writ or distress warrant, or is levied  upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and  such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded  within  thirty  (30)  days  or  in  any  event  not  less  than  five  (5) Business  Days  prior  to  the  date  of  any  proposed sale thereunder, or if the Parent Borrower, the Cayman Borrower or Ubiquiti Hong Kong is  enjoined,  restrained,  or  in  any  way  prevented  by  court  order  from  continuing  to  conduct  all  or  any  substantial part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance  upon any substantial portion of the Parent Borrower’s, the Cayman Borrower’s or Ubiquiti Hong Kong’s  assets,  or  if  a  notice  of  lien,  levy,  or  assessment  is  filed  of  record  with  respect  to  any  of  the Parent   Borrower’s  material  assets  by  the  United  States  Government,  or any  department,  agency,  or  instrumentality thereof, or by any state, county, municipal or governmental agency, and the same is not  paid within thirty (30) days after the Parent Borrower, the Cayman Borrower or Ubiquiti Hong Kong  receives notice thereof, provided that none of the foregoing shall constitute an Event of Default where  such action or event is stayed or an adequate bond has been posted pending a good faith contest by the  Parent Borrower, the Cayman  Borrower or  Ubiquiti  Hong  Kong, as  applicable  (provided  that  no  Extensions of Credit will be required to be made during such cure period).         (h)   Change in Control.  Any Change in Control shall occur.         (i)   Voluntary  Bankruptcy  Proceeding.   Any Credit Party or any Subsidiary (other than an   Immaterial  Foreign  Subsidiary)  thereof  shall  (i)  commence  a  voluntary  case  under  any  Debtor  Relief  Laws, (ii) file a petition seeking to take advantage of any Debtor Relief Laws, (iii) consent to or fail to  contest in a timely and appropriate manner any petition filed against it in an involuntary case under any  Debtor Relief Laws, (iv) apply for or consent to, or fail to contest in a timely and appropriate manner,  the appointment of, or the taking of possession by, a receiver, custodian, trustee, or liquidator of itself or  of a substantial part of its property, domestic or foreign, (v) admit in writing its inability to pay its debts  as they become due, (vi) make a general assignment for the benefit of creditors, or (vii) circulate written  resolutions of the shareholders, convene a meeting of shareholders or take any corporate action, in each  case, for the purpose of authorizing any of the foregoing.         (j)   Involuntary  Bankruptcy  Proceeding.   A  case  or  other  proceeding  shall  be  commenced  against any Credit Party or any Subsidiary (other than an Immaterial Foreign Subsidiary) thereof in any  court of competent jurisdiction seeking (i) relief under any Debtor Relief Laws, or (ii) the appointment  of a trustee, receiver, custodian, liquidator or the like for any Credit Party or any Subsidiary thereof or  for all or any substantial part of their respective assets, domestic or foreign, and such case or proceeding  shall continue without dismissal or stay for a period of sixty (60) consecutive days, or an order granting  the relief requested in such case or proceeding (including, but not limited to, an order for relief under  such federal bankruptcy laws) shall be entered.         (k)   Failure of Agreements.  Any provision of this Agreement or any provision of any other  Loan Document shall for any reason cease to be valid and binding on any Credit Party or any Subsidiary   thereof party thereto or any such  Personsuch Credit Party  shall  so  state  in  writing,  or  any  Loan                                             98 103755581_3 119311063_5 

 

    Document  shall  for  any  reason  cease  to  create  a  valid  and  perfected  first  priority  Lien  (subject  to  Permitted Liens) on, or security interest in, any of the Collateral purported to be covered thereby with a  fair market value in excess of $2,500,000, in each case other than in accordance with the express terms  hereof or thereof.         (l)   ERISA Events.  The occurrence of any of the following events that would reasonably be  expected to have a Material Adverse Effect: (i) any Credit Party or any ERISA Affiliate fails to make  full payment when due of all amounts which, under the provisions of any Pension Plan or Sections 412  or 430 of the Code, any Credit Party or any ERISA Affiliate is required to pay as contributions thereto,  or (ii) a Termination Event.         (m)   Judgment.  A judgment or order for the payment of money which causes the aggregate  amount of all such judgments or orders (net of any amounts paid or fully covered by independent third  party insurance as to which the relevant insurance company does not dispute coverage) to exceed the  Threshold Amount shall be entered against any Credit Party or any Subsidiary thereof by any court and  such judgment or order shall continue without having been discharged, vacated or stayed for a period of  thirty (30) consecutive days after the entry thereof.        SECTION 9.2      Remedies.  Upon the occurrence of an Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower Agent:         (a)   Acceleration;  Termination of Credit  Facility.   Terminate  the  Revolving  Credit  Commitment and declare the principal of and interest on the Loans and the Reimbursement Obligations  at  the  time  outstanding,  and  all  other  amounts  owed  to  the  Lenders  and  to  the  Administrative  Agent  under  this  Agreement  or  any  of  the  other  Loan  Documents  (including,  without  limitation,  all  L/C  Obligations,  whether  or  not  the  beneficiaries  of  the  then  outstanding  Letters  of  Credit  shall  have  presented or shall be entitled to present the documents required thereunder) and all other Obligations, to  be forthwith due and payable, whereupon the same shall immediately become due and payable without  presentment,  demand,  protest  or  other  notice  of  any  kind,  all  of  which  are  expressly  waived  by  each  Credit Party, anything in this Agreement or the other Loan Documents to the contrary notwithstanding,  and  terminate  the  Credit  Facility  and  any  right  of  the BorrowersBorrower  to  request  borrowings  or  Letters  of  Credit  thereunder;  provided,  that  upon  the  occurrence  of  an  Event  of  Default  specified  in  Section 9.1(i)  or  (j),  the  Credit  Facility  shall  be  automatically  terminated  and  all  Obligations  shall  automatically become due and payable without presentment, demand, protest or other notice of any kind,  all of which are expressly waived by each Credit Party, anything in this Agreement or in any other Loan  Document to the contrary notwithstanding.         (b)   Letters of Credit.  With respect to all Letters of Credit with respect to which presentment  for honor shall not have occurred at the time of an acceleration pursuant to the preceding paragraph, the  Parent Borrower shall at such time deposit in a Cash Collateral account opened by the Administrative  Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit.  Amounts  held  in  such  Cash  Collateral  account  shall  be  applied  by  the  Administrative  Agent  to  the  payment  of  drafts  drawn  under  such  Letters  of  Credit,  and  the  unused  portion  thereof  after  all  such  Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay the other  Secured Obligations on a pro rata basis.  After all such Letters of Credit shall have expired or been fully  drawn upon, the Reimbursement Obligation shall have been satisfied and all other Secured Obligations  shall have been paid in full, the balance, if any, in such Cash Collateral account shall be returned to the  Parent Borrower.                                              99 103755581_3 119311063_5 

 

          (c)   General Remedies.  Exercise on behalf of the Secured Parties all of its other rights and  remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy all of  the Secured Obligations.        SECTION 9.3      Rights and Remedies Cumulative; Non-Waiver; etc.         (a)   The enumeration of the rights and remedies of the Administrative Agent and the Lenders  set forth in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent  and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all  of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or  under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or  otherwise.  No delay or failure to take action on the part of the Administrative Agent or any Lender in  exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial  exercise  of  any  such  right,  power  or  privilege  preclude  any  other  or  further  exercise  thereof  or  the  exercise  of  any  other  right,  power  or  privilege  or  shall  be  construed  to  be  a  waiver  of  any  Event  of  Default.   No  course  of  dealing  between  the BorrowersBorrower,  the  Administrative  Agent  and  the  Lenders or their respective agents or employees shall be effective to change, modify or discharge any  provision of this Agreement or any of the other Loan Documents or to constitute a waiver of any Event  of Default.         (b)   Notwithstanding  anything  to  the  contrary  contained  herein  or  in any other Loan  Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents  against the Credit Parties or any of them shall be vested exclusively in, and all actions and proceedings  at  law  in  connection  with  such  enforcement  shall  be  instituted and  maintained  exclusively  by,  the  Administrative Agent in accordance with Section 9.2 for the benefit of all the Lenders and the Issuing  Lender; provided that the foregoing shall not prohibit (a) the Administrative Agent from exercising on  its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative  Agent) hereunder and under the other Loan Documents, (b) the Issuing Lender or the Swingline Lender  from  exercising  the  rights  and  remedies  that  inure  to  its  benefit  (solely  in  its  capacity  as  the  Issuing  Lender or Swingline Lender, as the case may be) hereunder and under the other Loan Documents, (c)  any Lender from exercising setoff rights in accordance with Section 11.4 (subject to the terms of Section   4.6), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf  during  the  pendency  of  a  proceeding  relative  to  any  Credit  Party  under  any  Debtor  Relief  Law;  and  provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and  under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed  to the Administrative Agent pursuant to Section 9.2 and (ii) in addition to the matters set forth in clauses   (b), (c) and (d) of the preceding proviso and subject to Section 4.6, any Lender may, with the consent of  the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required  Lenders.         SECTION 9.4     Crediting of Payments and Proceeds.  In the event that the Obligations have been accelerated pursuant to Section 9.2 or the Administrative Agent or any Lender has exercised any remedy set forth in this Agreement or any other Loan Document, all payments received on account of the Secured  Obligations  and  all  net proceeds  from  the  enforcement  of  the  Secured  Obligations  shall  be applied by the Administrative Agent as follows:         First,  to  payment  of  that  portion  of  the  Secured  Obligations  constituting  fees,  indemnities, expenses and other amounts, including attorney fees, payable to the Administrative Agent in its capacity as  such,  the  Issuing  Lender  in  its  capacity  as  such  and  the  Swingline  Lender  in  its  capacity  as  such, ratably among the Administrative Agent, the Issuing Lender and Swingline Lender in proportion to the respective amounts described in this clause First payable to them;                                            100 103755581_3 119311063_5 

 

         Second,  to  payment  of  that  portion  of  the  Secured  Obligations  constituting  fees  (other than  Commitment Fees and Letter of Credit fees payable to the Revolving Credit Lenders), indemnities and other  amounts  (other  than  principal  and  interest)  payable  to  the  Lenders  under  the  Loan  Documents, including attorney fees, ratably among the Lenders in proportion to the respective amounts described in this clause Second payable to them;         Third,  to  payment  of  that  portion  of  the  Secured  Obligations  constituting  accrued  and  unpaid Commitment Fees and Letter of Credit fees payable to the Revolving Credit Lenders and interest on the Loans  and  Reimbursement  Obligations,  ratably  among  the  Lenders in  proportion  to  the  respective amounts described in this clause Third payable to them;        Fourth, to payment of that portion of the Secured Obligations constituting unpaid principal of the Loans,  Reimbursement  Obligations  and  payment  obligations  then  owing  under  Secured  Hedge Agreements and Secured Cash Management Agreements, ratably among the Lenders, the Issuing Lender, the Hedge Banks and the Cash Management Banks in proportion to the respective amounts described in this clause Fourth payable to them;        Fifth, to the Administrative Agent for the account of the Issuing Lender, to Cash Collateralize any L/C Obligations then outstanding; and         Last, the balance, if any, after all of the Secured Obligations have been indefeasibly paid in full, to the BorrowersBorrower or as otherwise required by Applicable Law.        Notwithstanding  the  foregoing,  Secured  Obligations  arising  under  Secured  Cash  Management Agreements and Secured Hedge Agreements shall be excluded from the application described above if the Administrative  Agent  has  not  received  written  notice  thereof,  together  with  such  supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge  Bank,  as  the  case  may  be.   Each  Cash  Management  Bank  or  Hedge  Bank  not  a  party  to  this Agreement  that  has  given  the  notice  contemplated  by  the  preceding  sentence  shall,  by  such  notice,  be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article X for itself and its Affiliates as if a “Lender” party hereto.         SECTION 9.5     Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative  Agent  shall  have  made  any  demand  on  the BorrowersBorrower)  shall  be  entitled  and empowered (but not obligated) by intervention in such proceeding or otherwise:         (a)   to file and prove a claim for the whole amount of the principal and interest owing and  unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and  to file such other documents as may be necessary or advisable in order to have the claims of the Lenders,  the Issuing Lender and the Administrative Agent (including any claim for the reasonable compensation,  expenses, disbursements and advances of the Lenders, the Issuing Lender and the Administrative Agent  and their respective agents and counsel and all other amounts due the Lenders, the Issuing Lender and  the Administrative Agent under Sections 3.3, 4.3 and 11.3) allowed in such judicial proceeding; and         (b)   to collect and receive any monies or other property payable or deliverable on any such  claims and to distribute the same;                                             101 103755581_3 119311063_5 

 

   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Lender, to pay to the Administrative Agent any amount  due  for  the  reasonable  compensation,  expenses,  disbursements  and  advances  of  the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 3.3, 4.3 and 11.3.        SECTION 9.6      Credit Bidding.         (a)   The  Administrative  Agent,  on  behalf  of  itself  and  the  Secured  Parties,  shall  have  the  right, exercisable at the discretion of the Required Lenders, to credit bid and purchase for the benefit of  the  Administrative  Agent  and  the  Secured  Parties  all  or  any  portion  of  Collateral  at  any  sale  thereof  conducted by the Administrative Agent under the provisions of the UCC, including pursuant to Sections  9-610  or  9-620  of  the  UCC,  at  any  sale  thereof  conducted  under the  provisions  of  the  United  States  Bankruptcy Code, including Section 363 thereof, or a sale under a plan of reorganization, or at any other  sale or foreclosure conducted by the Administrative Agent (whether by judicial action or otherwise) in  accordance with Applicable Law.         (b)   Each Lender hereby agrees, on behalf of itself and each of its Affiliates that is a Secured  Party,  that,  except  as  otherwise  provided  in  any  Loan  Document or  with  the  written  consent  of  the  Administrative  Agent  and  the  Required  Lenders,  it  will  not  take  any  enforcement  action,  accelerate  obligations under any of the Loan Documents, or exercise any right that it might otherwise have under  Applicable Law to credit bid at foreclosure sales, UCC sales or other similar dispositions of Collateral.                                        ARTICLE X                              THE ADMINISTRATIVE AGENT        SECTION 10.1     Appointment and Authority.         (a)   Each of the Lenders and the Issuing Lender hereby irrevocably appoints Wells Fargo to  act  on  its  behalf  as  the  Administrative  Agent  hereunder  and  under  the  other  Loan  Documents  and  authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are  delegated  to  the  Administrative  Agent  by  the  terms  hereof  or  thereof,  together  with  such  actions  and  powers  as  are  reasonably  incidental  thereto.   Except  as  provided  in  Sections  10.6  and  10.9,  the  provisions  of  this  Article  are  solely  for  the  benefit  of  the  Administrative  Agent,  the  Lenders  and  the  Issuing  Lender,  and  neither  the Parent Borrower  nor  any  Subsidiary  thereof  shall  have  rights  as  a  third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term  “agent”  herein  or  in  any  other  Loan  Documents  (or  any  other  similar  term)  with  reference  to  the  Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations  arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market  custom,  and  is  intended  to  create  or  reflect  only  an  administrative  relationship  between  contracting  parties.         (b)   The  Administrative  Agent  shall  also  act  as  the  “collateral  agent”  under  the  Loan  Documents,  and  each  of  the  Lenders  (including  in  its  capacity  as  a  potential  Hedge  Bank  or  Cash  Management  Bank)  and  the  Issuing  Lender  hereby  irrevocably  appoints  and  authorizes  the  Administrative  Agent  to  act  as  the  agent  of  such  Lender  and  the  Issuing  Lender  for  purposes  of  acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Credit Parties to  secure  any  of  the  Secured  Obligations,  together  with  such  powers  and  discretion  as  are  reasonably  incidental thereto (including, without limitation, to enter into additional Loan Documents or supplements                                            102 103755581_3 119311063_5 

 

    to existing Loan Documents on behalf of the Secured Parties).  In this connection, the Administrative  Agent,  as  “collateral  agent”  and  any  co-agents,  sub-agents  and attorneys-in-fact  appointed  by  the  Administrative Agent pursuant to this Article X for purposes of holding or enforcing any Lien on the  Collateral (or any portion thereof) granted under the Security Documents, or for exercising any rights  and remedies thereunder at the direction of the Administrative Agent, shall be entitled to the benefits of  all provisions of Articles X and XI (including Section 11.3, as though such co-agents, sub-agents and  attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with  respect thereto.        SECTION 10.2     Rights as a  Lender.   The  Person  serving  as  the  Administrative  Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory  capacity  for  and  generally  engage  in  any  kind  of  business  with eitherthe  Borrower  or  any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.        SECTION 10.3     Exculpatory Provisions.         (a)   The Administrative Agent shall not have any duties or obligations except those expressly  set  forth  herein  and  in  the  other  Loan  Documents,  and  its  duties  hereunder  and  thereunder  shall  be  administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent:               (i)    shall  not  be  subject  to  any  fiduciary  or  other  implied  duties, regardless  of        whether a Default or Event of Default has occurred and is continuing;               (ii)   shall  not  have  any  duty  to  take  any  discretionary  action  or  exercise  any        discretionary powers, except discretionary rights and powers expressly contemplated hereby or        by the other Loan Documents that the Administrative Agent is required to exercise as directed in        writing by the Required Lenders (or such other number or percentage of the Lenders as shall be        expressly provided for herein or in the other Loan Documents), provided that the Administrative        Agent shall not be required to take any action that, in its opinion or the opinion of its counsel,        may expose the Administrative Agent to liability or that is contrary to any Loan Document or        Applicable Law, including for the avoidance of doubt any action that may be in violation of the        automatic  stay  under  any  Debtor  Relief  Law  or  that  may  effect  a  forfeiture,  modification  or        termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and               (iii)  shall not, except as expressly set forth herein and in the other Loan Documents,        have  any  duty  to  disclose,  and  shall  not  be  liable  for  the  failure  to  disclose,  any  information        relating  to  the Parent Borrower  or  any  of  its respective Subsidiaries  or  Affiliates  that  is       communicated  to  or  obtained  by  the  Person  serving  as  the  Administrative  Agent  or  any  of  its       Affiliates in any capacity.         (b)   The Administrative Agent shall not be liable for any action taken or not taken by it (i)  with the consent or at the request of the Required Lenders (or such other number or percentage of the  Lenders  as  shall  be  necessary,  or  as  the  Administrative  Agent  shall  believe  in  good  faith  shall  be  necessary, under the circumstances as provided in Section 11.2 and Section 9.2) or (ii) in the absence of  its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by  final nonappealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any                                            103 103755581_3 119311063_5 

 

    Default or Event of Default unless and until notice describing such Default or Event of Default is given  to the Administrative Agent by the Borrower Agent, a Lender or the Issuing Lender.         (c)   The Administrative Agent shall not be responsible for or have any duty to ascertain or  inquire into (i) any statement, warranty or representation made in or in connection with this Agreement  or  any  other  Loan  Document,  (ii)  the  contents  of  any  certificate,  report  or  other  document  delivered  hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of  any  of  the  covenants,  agreements  or  other  terms  or  conditions  set  forth  herein  or  therein  or  the  occurrence  of  any  Default  or  Event  of  Default,  (iv)  the  validity,  enforceability,  effectiveness  or  genuineness  of  this  Agreement,  any  other  Loan  Document  or  any  other  agreement,  instrument  or  document or (v) the satisfaction of any condition set forth in Article V or elsewhere herein, other than to  confirm receipt of items expressly required to be delivered to the Administrative Agent.        SECTION 10.4     Reliance by the  Administrative  Agent.   The  Administrative  Agent  shall  be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or  otherwise  authenticated  by  the  proper  Person.   The  Administrative  Agent  also  may  rely  upon  any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and  shall  not  incur  any  liability  for  relying  thereon.   In  determining  compliance  with  any  condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or the Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the BorrowersBorrower), independent accountants and  other  experts  selected  by  it,  and  shall  not  be  liable  for  any  action  taken  or  not  taken  by  it  in accordance with the advice of any such counsel, accountants or experts.        SECTION 10.5     Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective  activities  in  connection  with  the  syndication  of  the  Credit  Facility  as  well  as  activities  as Administrative  Agent.   The  Administrative  Agent  shall  not  be  responsible  for  the  negligence  or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.        SECTION 10.6     Resignation of Administrative Agent.         (a)   The Administrative Agent may at any time give notice of its resignation to the Lenders,  the  Issuing  Lender  and  the  Borrower  Agent.   Upon  receipt  of  any  such  notice  of  resignation,  the  Required Lenders shall have the right, subject to the consent of the Parent Borrower (provided no Event  of Default has occurred and is continuing at the time of such resignation), to appoint a successor, which  shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the  United States.  If no such successor shall have been so appointed by the Required Lenders and shall have  accepted  such  appointment  within  30  days  after  the  retiring  Administrative  Agent  gives  notice  of  its  resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective                                             104 103755581_3 119311063_5 

 

    Date”),  then  the  retiring  Administrative  Agent  may  (but  shall  not  be  obligated  to),  on  behalf  of  the  Lenders and the Issuing Lender, appoint a successor Administrative Agent meeting the qualifications set  forth above.  Whether or not a successor has been appointed, such resignation shall become effective in  accordance with such notice on the Resignation Effective Date.         (b)   If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause  (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by  notice in writing to the Borrower Agent and such Person, remove such Person as Administrative Agent  and, in consultation with the BorrowersBorrower, appoint a successor. If no such successor shall have  been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or  such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such  removal  shall  nonetheless  become  effective  in accordance with such notice on the Removal Effective  Date.         (c)   With  effect  from  the  Resignation  Effective  Date  or  the  Removal Effective  Date  (as  applicable),  (1)  the  retiring  or  removed  Administrative  Agent  shall  be  discharged  from  its  duties  and  obligations  hereunder  and  under  the  other  Loan  Documents  (except  that  in  the  case  of  any  collateral  security held by the Administrative Agent on behalf of the Lenders or the Issuing Lender under any of  the Loan Documents, the retiring or removed Administrative Agent shall continue to hold such collateral  security  until  such  time  as  a  successor  Administrative  Agent  is  appointed)  and  (2)  except  for  any  indemnity  payments  owed  to  the  retiring  or  removed  Administrative  Agent,  all  payments,  communications  and  determinations  provided  to  be  made  by,  to  or  through  the  Administrative  Agent  shall instead be made by or to each Lender and the Issuing Lender directly, until such time, if any, as the  Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance  of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and  become  vested  with  all  of  the  rights,  powers,  privileges  and  duties  of  the  retiring  or  removed  Administrative  Agent  (other  than  any  rights  to  indemnity  payments  owed  to  the  retiring  or  removed  Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of  its  duties  and  obligations  hereunder  or  under  the  other  Loan  Documents.   The  fees  payable  by  the  BorrowersBorrower  to  a  successor  Administrative  Agent  shall  be  the  same  as  those  payable  to  its  predecessor  unless  otherwise  agreed  between  the BorrowersBorrower  and  such  successor.   After  the  retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan  Documents, the provisions of this Article and Section 11.3 shall continue in effect for the benefit of such  retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect  of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative  Agent was acting as Administrative Agent or related to its duties as Administrative Agent that are carried   out following its retirement or removal.         (d)   Any resignation by, or removal of, Wells Fargo as Administrative Agent pursuant to this  Section  shall  also  constitute  its  resignation  as  the  Issuing  Lender  and  Swingline  Lender.   Upon  the  acceptance of a successor’s appointment as Administrative Agent hereunder, (ai) such successor shall  succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing  Lender, if in its sole discretion it elects to, and Swingline Lender, (bii) the retiring Issuing Lender and  Swingline  Lender  shall  be  discharged  from  all  of  their  respective duties and obligations hereunder or  under the other Loan Documents, and (ciii) the successor Issuing Lender, if in its sole discretion it elects  to, shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of  such  succession  or  make  other arrangementarrangements  satisfactory  to  the  retiring  Issuing Lender to  effectively assume the obligations of the retiring Issuing Lender with respect to such Letters of Credit.        SECTION 10.7     Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the Issuing Lender acknowledges that it has, independently and without reliance upon the Administrative                                            105 103755581_3 119311063_5 

 

   Agent or any other Lender or any of their Related Parties and based on such documents and information as  it  has  deemed  appropriate,  made  its  own  credit  analysis  and decision  to  enter  into  this  Agreement. Each Lender and the Issuing Lender also acknowledges that it will, independently and without reliance upon  the  Administrative  Agent  or  any  other  Lender or any of their Related Parties and based on such documents  and  information  as  it  shall  from  time  to  time  deem  appropriate,  continue  to  make  its  own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.         SECTION 10.8    No Other Duties, etc.  Anything herein to the contrary notwithstanding, none of the syndication agents, documentation agents, co-agents, arrangers or bookrunners listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan  Documents,  except  in  its capacity,  as  applicable,  as  the  Administrative  Agent,  a  Lender  or  the Issuing Lender hereunder.         SECTION 10.9    Collateral and Guaranty Matters.         (a)   Each  of  the  Lenders  (including  in  its  or  any  of  its  Affiliate’s  capacities  as  a  potential  Hedge Bank or Cash Management Bank) irrevocably authorize the Administrative Agent, at its option  and in its discretion:               (i)    to  release  any  Lien  on  any  Collateral  granted  to  or  held by the Administrative       Agent,  for  the  ratable  benefit  of  the  Secured  Parties,  under  any  Loan  Document  (A)  upon  the       termination of the Revolving Credit Commitment and payment in full of all Secured Obligations       (other  than  (1)  contingent  indemnification  obligations  and  (2) obligations  and  liabilities  under       Secured Cash Management Agreements or Secured Hedge Agreements as to which arrangements       satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made) and       the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other       arrangements  satisfactory  to  the  Administrative  Agent  and  the  Issuing  Lender  shall  have  been       made), (B) that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of       or in connection with any sale or other disposition permitted under the Loan Documents, or (C) if       approved, authorized or ratified in writing in accordance with Section 11.2;               (ii)   to  subordinate  any  Lien  on  any  Collateral  granted  to  or  held  by the       Administrative  Agent  under  any  Loan  Document  to  the  holder  of  any  Lien  permitted  under       Section 8.2(h); and               (iii)  to release any Guarantor from its obligations under any Loan Documents if such       Person ceases to be a Subsidiary as a result of a transaction permitted under the Loan Documents.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative  Agent’s  authority  to  release  or  subordinate  its interest  in  particular  types  or  items  of property, or to release any Guarantor from its obligations under a Guaranty Agreement pursuant to this Section  10.9.   In  each  case  as  specified  in  this  Section  10.9,  the  Administrative  Agent  will,  at  the BorrowersBorrower’s expense, execute and deliver to the applicable Credit Party such documents as such Credit  Party  may  reasonably  request  to  evidence  the  release  of such  item  of  Collateral  from  the assignment and security interest granted under the Security Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations under any Guaranty Agreement, in each case in accordance with the terms of the Loan Documents and this Section 10.9.  In the case of any such sale, transfer  or  disposal  of  any  property  constituting  Collateral  in  a  transaction  constituting  an  Asset Disposition  permitted pursuant to Section 8.5, the Liens created by any of the Security Documents on such property shall be automatically released without need for further action by any person.                                            106 103755581_3 119311063_5 

 

   Notwithstanding the foregoing, the parties hereto acknowledge and agree (a) in circumstances where the Administrative Agent reasonably determines that the cost or effort of obtaining or perfecting a security interest  in  any  asset  that  constitutes  Collateral  is  excessive in  relation  to  the  benefit  afforded  to  the Secured Parties thereby, the Administrative Agent may exclude such Collateral from the creation and/or perfection  requirements  set  forth  in  this  Agreement  and  the  other  Loan  Documents  and  (b)  the Administrative  Agent  may  grant  extensions  of  time  for  the  creation  and/or  perfection  of  Liens  in  a particular  property  where  it  determines  that  such  creation  and/or  perfection  cannot  be  accomplished without undue effort and/or expense by the time or times at which it would otherwise be required by this Agreement or any other Loan Document.         (b)   The  Administrative  Agent  shall  not  be  responsible  for  or  have  a  duty  to  ascertain  or  inquire  into  any  representation  or  warranty  regarding  the  existence,  value  or  collectability  of  the  Collateral,  the  existence,  priority  or  perfection  of  the  Administrative  Agent’s  Lien  thereon,  or  any  certificate prepared by any Credit Party in connection therewith, nor shall the Administrative Agent be  responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral.         SECTION 10.10   Secured Hedge Agreements and Secured Cash Management Agreements.  No Cash  Management  Bank  or  Hedge  Bank  that  obtains  the  benefits  of  Section 9.4  or  any  Collateral  by virtue of the provisions hereof or of any Security Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as  a  Lender  and,  in  such  case,  only  to  the  extent  expressly  provided  in  the  Loan  Documents. Notwithstanding any other provision of this Article X to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to,  Secured  Cash  Management  Agreements  and  Secured  Hedge  Agreements  unless  the  Administrative Agent  has  received  written  notice  of  such  Secured  Cash Management Agreements and Secured Hedge Agreements, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.                                        ARTICLE XI                                    MISCELLANEOUS        SECTION 11.1     Notices.         (a)   Notices  Generally.   Except  in  the  case  of  notices  and  other  communications  expressly  permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other  communications  provided  for  herein  shall  be  in  writing  and  shall  be  delivered  by  hand  or  overnight  courier service, mailed by certified or registered mail or sent by (i) with respect to eitherthe Borrower,  e-mail, or (ii) with respect to the Administrative Agent, facsimile, as follows:                                             107 103755581_3 119311063_5 

 

                             If to eitherthe Borrower:                            Ubiquiti Networks, Inc.                           685 Third Avenue, 27th Floor                           New York, New York 10017                           Attention of: Kevin Radigan, Chief Accounting Officer and Hartley                           Nisenbaum, Executive Vice President                           Telephone No.: (646) 343-9451                           Facsimile No.: (408) 904-7556                           E-mail: kevin.radigan@ubnt.com; hartley@ubnt.com                            With copies to:                            DLA Piper LLP (US)                           1251 Avenue of the Americas, 27th Floor                           New York, New York 10020-1104                           Attention of: Shmuel Klahr                           Telephone No.: (212) 335-4721                           Facsimile No.: (212) 884-8721                           E-mail: shmuel.klahr@dlapiper.com                            If to Wells Fargo as Administrative Agent, Swingline Lender or Issuing                           Lender:                            Wells Fargo Bank, National Association                           MAC D1109-019                           1525 West W.T. Harris Blvd.                           Charlotte, NC  28262                           Attention of:  Syndication Agency Services                           Telephone No.:  (704) 590-2706                           Facsimile No.:  (844) 879-5899                            With copies to:                            Wells Fargo Bank, National Association                           121 South Market, 2nd550 California Street, Floor 14                           San JoseFrancisco, California 9511394104                           Attention of: Natasha FathereeLacy Houstoun                           Telephone No.: (408) 288-2513                           Facsimile No.: (877) 887-3053415) 834-4877                           E-mail: natasha.fathereelacy.a.houstoun@wellsfargo.com                            If to any Lender:                            To the address set forth on the Register  Notices  sent  by  hand  or  overnight  courier  service,  or  mailed  by  certified  or  registered  mail,  shall  be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have  been  given  at  the  opening  of  business  on  the  next business dayBusiness Day for the recipient).                                            108 103755581_3 119311063_5 

 

   Notices delivered through electronic communications to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).         (b)   Electronic Communications.  Notices and other communications to the Lenders and the  Issuing Lender hereunder may be delivered or furnished by electronic communication (including e-mail  and  Internet  or  intranet  websites)  pursuant  to  procedures  approved  by  the  Administrative  Agent,  provided that the foregoing shall not apply to notices to any Lender or the Issuing Lender pursuant to  Article II  or  Article  III  if  such  Lender  or  the  Issuing  Lender,  as  applicable,  has  notified  the  Administrative  Agent  that  is  incapable  of  receiving  notices  under  such  Article  by  electronic  communication.  The Administrative Agent or the Borrower Agent may, in its discretion, agree to accept  notices and other communications to it hereunder by electronic communications pursuant to procedures  approved  by  it,  provided  that  approval  of  such  procedures  may  be  limited  to  particular notices  or  communications.   Unless  the  Administrative  Agent  otherwise  prescribes,  (i)  notices  and  other  communications  sent  to  an  e-mail  address  shall  be  deemed  received  upon  the  sender’s  receipt  of  an  acknowledgement  from  the  intended  recipient  (such  as  by  the  “return  receipt  requested”  function,  as  available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to  an  Internet  or  intranet  website  shall  be  deemed  received  upon  the  deemed  receipt  by  the  intended  recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or  communication is available and identifying the website address therefor; provided that, for both clauses   (i) and (ii) above, if such notice, email or other communication is not sent during the normal business  hours of the recipient, such notice, email or other communication shall be deemed to have been sent at  the opening of business on the next business dayBusiness Day for the recipient.         (c)   Administrative  Agent’s  Office.   The  Administrative  Agent  hereby  designates  its  office  located at the address set forth above, or any subsequent office which shall have been specified for such  purpose  by  written  notice  to  the  Borrower  Agent  and  Lenders,  as  the  Administrative  Agent’s  Office  referred  to  herein,  to  which  payments  due  are  to  be  made  and  at  which  Loans  will  be  disbursed  and  Letters of Credit requested.         (d)   Change of Address, Etc.  Any party hereto may change its address or facsimile number  for notices and other communications hereunder by notice to the other parties hereto.         (e)   Platform.               (i)    Each  Credit  Party  agrees  that  the  Administrative  Agent  may,  but  shall  not  be       obligated to, make the Borrower Materials available to the Issuing Lender and the other Lenders       by posting the Borrower Materials on the Platform.               (ii)   The  Platform  is  provided  “as  is”  and  “as  available.”   The  Agent  Parties  (as       defined  below)  do  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 Borrower       Materials.  No warranty of any kind, express, implied or statutory, including, without limitation,       any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party       rights or freedom from viruses or other code defects, is made by any Agent Party in connection       with the Borrower Materials or the Platform.  In no event shall the Administrative Agent or any       of its Related Parties (collectively, the “Agent Parties”) have any liability to any Credit Party, any       Lender or any other Person or entity for losses, claims, damages, liabilities or expenses of any       kind  (whether  in  tort,  contract  or  otherwise)  arising  out  of  any  Credit  Party’s  or  the       Administrative Agent’s transmission of communications through the Internet (including, without       limitation,  the  Platform),  except  to  the  extent  that  such  losses,  claims,  damages,  liabilities  or       expenses  are  determined  by  a  court  of  competent  jurisdiction  by  final  and  nonappealable                                            109 103755581_3 119311063_5 

 

         judgment to have resulted from the gross negligence or willful misconduct of such Agent Party;       provided that in no event shall any Agent Party have any liability to any Credit Party, any Lender,        the Issuing Lender or any other Person for indirect, special, incidental, consequential or punitive        damages, losses or expenses (as opposed to actual damages, losses or expenses).         (f)   Private Side Designation.  Each Public Lender agrees to cause at least one individual at or  on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar  designation on the content declaration screen of the Platform in order to enable such Public Lender or its  delegate,  in  accordance  with  such  Public  Lender’s  compliance  procedures  and  Applicable  Law,  including  United  States  Federal  and  state  securities  Applicable  Laws,  to  make  reference  to  Borrower  Materials that are not made available through the “Public Side Information” portion of the Platform and  that  may  contain  material  non-public  information  with  respect  to  the BorrowersBorrower or theirits  securities for purposes of United States Federal or state securities Applicable Laws.         SECTION 11.2    Amendments, Waivers and  Consents.   Except  as  set  forth  below  or  as specifically  provided  in  any  Loan  Document,  any  term,  covenant,  agreement  or  condition  of  this Agreement  or  any  of  the  other  Loan  Documents  may  be  amended  or waived  by  the  Lenders,  and any consent given by the Lenders, if, but only if, such amendment, waiver or consent is in writing signed by the  Required  Lenders  (or  by  the  Administrative  Agent  with  the  consent  of  the  Required  Lenders)  and delivered  to  the  Administrative  Agent  and,  in  the  case  of  an  amendment,  signed  by  the BorrowersBorrower; provided, that no amendment, waiver or consent shall:         (a)   increase  the  Revolving  Credit  Commitment  of  any  Lender  (or  reinstate  any  Revolving  Credit Commitment terminated pursuant to Section 9.2) or the amount of Loans of any Lender, in any  case, without the written consent of such Lender;         (b)   waive, extend or postpone any date fixed by this Agreement or any other Loan Document  for  any  payment  of  principal,  interest,  fees  or  other  amounts  due  to  the  Lenders  (or  any  of  them)  hereunder or under any other Loan Document without the written consent of each Lender directly and  adversely affected thereby (it being understood that a waiver of a mandatory prepayment under Section   2.11(b) shall only require the consent of the Required Lenders);         (c)   reduce  the  principal  of,  or  the  rate  of  interest  specified  herein  on,  any  Loan  or  Reimbursement Obligation, or (subject to clauses (iv) and (v) of the proviso set forth in the paragraph  below)  any  fees  or  other  amounts  payable  hereunder  or  under  any  other  Loan  Document without  the  written consent of each Lender directly and adversely affected thereby; provided that only the consent of  the Required Lenders shall be necessary (i) to waive any obligation of the BorrowersBorrower to pay  interest at the rate set forth in Section 4.1(b) during the continuance of an Event of Default or (ii) to  amend any financial covenant hereunder (or any defined term used therein) even if the effect of such  amendment would be to reduce the rate of interest on any Loan or L/C Obligation or to reduce any fee  payable hereunder;         (d)   change Section 4.6 or Section 9.4 in a manner that would alter the pro rata sharing of  payments or order of application required thereby without the written consent of each Lender directly  and adversely affected thereby;         (e)   except as otherwise permitted by this Section 11.2 change any provision of this Section  or  reduce  the  percentages  specified  in  the  definitions  of  “Required  Lenders”,  “Required  Revolving  Credit Lenders” or any other provision hereof specifying the number or percentage of Lenders required  to  amend,  waive  or  otherwise  modify  any  rights  hereunder  or  make  any  determination  or  grant  any  consent hereunder, without the written consent of each Lender directly affected thereby;                                            110 103755581_3 119311063_5 

 

          (f)   consent to the assignment or transfer by any Credit Party of such Credit Party’s rights and  obligations under any Loan Document to which it is a party (except as permitted pursuant to Section   8.4), in each case, without the written consent of each Lender;         (g)   release any Guarantor from its Guaranty Agreement (other than as authorized in Section   10.9), without the written consent of each Lender;         (h)   release all or substantially all of the Collateral or release any Security Document (other  than  as  authorized  in  Section  10.9  or  as  otherwise  specifically  permitted  or  contemplated  in  this  Agreement or the applicable Security Document) without the written consent of each Lender;         (i)   change  Section  2.11(b)(v)  in  a  manner  that  would  alter  the  order  of  application  of  amounts  prepaid  pursuant  thereto  without  the  written  consent  of  each  Lender  directly  and  adversely  affected thereby; or         (j)   without  the  prior  written  consent  of  the  Required  Revolving  Credit  Lenders,  amend,  modify or waive Section 5.2 if the effect of such amendment, modification or waiver is to require the  Revolving Credit Lenders to make Revolving Credit Loans when such Revolving Credit Lenders would  not otherwise be required to do so;  provided further,  that  (i)  no  amendment,  waiver  or  consent  shall,  unless  in  writing  and  signed  by  the Issuing Lender in addition to the Lenders required above, affect the rights or duties of the Issuing Lender under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender  in  addition  to  the  Lenders  required  above,  affect  the  rights  or  duties  of  the  Swingline  Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative  Agent  in  addition to  the  Lenders  required  above,  affect  the  rights  or  duties  of  the Administrative Agent under this Agreement or any other Loan Document or modify Section 11.27, (iv) the Administrative Agent and the BorrowersBorrower shall be permitted to amend any provision of the Loan Documents (and such amendment shall become effective without any further action or consent of any  other  party  to  any  Loan  Document)  if  the  Administrative  Agent  and  the BorrowersBorrower shall have jointly identified an obvious error or any error, ambiguity, defect, inconsistency or omission of a technical or immaterial nature in any such provision and (v) the Administrative Agent may, without the consent  of  any  Lender,  enter  into  amendments  or  modifications  to  this  Agreement  or  any  of  the  other Loan  Documents  or  to  enter  into  additional  Loan  Documents  as  the  Administrative  Agent  reasonably deems  appropriate  in  order  to  implement  any Benchmark Replacement Rateor any  Benchmark  Replacement Conforming Changes or otherwise effectuate the terms of Section 4.8(c) in accordance with the terms of Section 4.8(c).  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Revolving Credit Commitment of such Lender may not be increased or extended without the consent of such Lender.  Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably authorizes the Administrative Agent on its behalf, and without further consent of any Lender (but with the consent of the Parent Borrower  and  the  Administrative  Agent),  to  (x)  amend  and  restate  this  Agreement  if,  upon giving  effect  to  such  amendment  and  restatement,  such  Lender  shall  no  longer  be  a  party  to  this Agreement (as so amended and restated), the Revolving Credit Commitments of such Lender shall have terminated, such Lender shall have no other commitment or obligation hereunder and shall have been paid in full all principal, interest and other amounts owing to it or accrued for its account under this Agreement and  (y)  enter  into  amendments  or  modifications  to  this  Agreement  (including,  without  limitation, amendments to this Section 11.2) or any of the other Loan Documents or to enter into additional Loan                                            111 103755581_3 119311063_5 

 

   Documents as the Administrative Agent reasonably deems appropriate in order to effectuate the terms of Section 2.7 (including, without limitation, as applicable, (1) to permit the Incremental Term Loans and the Revolving Credit Facility Increase to share ratably in the benefits of this Agreement and the other Loan Documents and (2) to include the Incremental Term Loans and the outstanding Revolving Credit Facility Increase, as applicable, or outstanding Incremental Term Loans and outstanding Revolving Credit Facility  Increase,  as  applicable,  in  any  determination  of  (i)  Required  Lenders  or  Required  Revolving Credit Lenders or (ii) similar required lender terms applicable thereto); provided that no amendment or modification shall result in any increase in the amount of any Lender’s Revolving Credit Commitment or the  amount  of  such  Lender’s  Loans  or  any  increase  in  any  Lender’s  Revolving  Credit  Commitment Percentage, in each case, without the written consent of such affected Lender.         SECTION 11.3    Expenses; Indemnity.         (a)   Costs and  Expenses.  EachThe  Borrower  and  each  other  Credit  Party,  jointly  and  severally (subject to the limitations of Section 11.22), shall pay (i) all reasonable out of pocket expenses  incurred  by  the  Administrative  Agent,  the  Arrangers  and  their  respective  Affiliates  (including  the  reasonable fees, charges and disbursements of counsel, which shall be limited to the reasonable fees and  expenses  of  McGuireWoods  LLP  and  one  local  counsel  in  each  applicable  foreign  jurisdiction)  in  connection with the syndication of the Credit Facility, the preparation, negotiation, execution, delivery  and administration of this Agreement and the other Loan Documents or any amendments, modifications  or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or  thereby shall be consummated), (ii) all reasonable out of pocket expenses incurred by the Issuing Lender  in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand  for payment thereunder and (iii) all out of pocket expenses incurred by the Administrative Agent, any  Lender  or  the  Issuing  Lender  (including  the  fees,  charges  and  disbursements  of  any  counsel  for  the  Administrative  Agent,  any  Lender  or  the  Issuing  Lender),  in  connection  with  the  enforcement  or  protection of its rights (A) in connection with this Agreement and the other Loan Documents, including  its  rights  under  this  Section,  or  (B)  in  connection  with  the  Loans  made  or  Letters  of  Credit  issued  hereunder,  including  all  such  out  of  pocket  expenses  incurred  during  any  workout,  restructuring  or  negotiations in respect of such Loans or Letters of Credit.         (b)   Indemnification by the BorrowersBorrower.  EachThe  Borrower  and  each  other  Credit  Party,  jointly  and  severally  (subject to the  limitations of Section  11.22),  shall  indemnify  the  Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Lender, and each Related  Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold  each Indemnitee harmless from, and shall pay or reimburse any such Indemnitee for, any and all losses,  claims  (including,  without  limitation,  any  Environmental  Claims),  penalties,  damages,  liabilities  and  related  expenses  (including  the  reasonable  fees,  charges  and  disbursements  of  any  counsel  for  any  Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including  eitherthe Borrower or any other Credit Party), other than such Indemnitee and its Related Parties, arising  out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other  Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the  parties  hereto  of  their  respective  obligations  hereunder  or  thereunder  or  the  consummation  of  the  transactions  contemplated  hereby  or  thereby  (including,  without  limitation,  the  Transactions),  (ii)  any  Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by  the Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in  connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any  actual or alleged presence or release of Hazardous Materials on or from any property owned or operated  by any Credit Party or any Subsidiary thereof, or any Environmental Claim related in any way to any  Credit  Party  or  any  Subsidiary,  (iv)  any  actual  or  prospective claim,  litigation,  investigation  or  proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether                                           112 103755581_3 119311063_5 

 

    brought by a third party or by any Credit Party or any Subsidiary thereof, and regardless of whether any  Indemnitee  is  a  party  thereto,  or  (v)  any  claim  (including,  without  limitation,  any  Environmental  Claims), investigation, litigation or other proceeding (whether or not the Administrative Agent or any  Lender  is  a  party  thereto)  and  the  prosecution  and  defense  thereof,  arising  out  of  or  in  any  way  connected with the Loans, this Agreement, any other Loan Document, or any documents contemplated  by or referred to herein or therein or the transactions contemplated hereby or thereby, including without  limitation, reasonable attorneys and consultant’s fees, provided that such indemnity shall not, as to any  Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses  are  determined  by  a  court  of  competent  jurisdiction  by  final  and  nonappealable  judgment  to  have  resulted from (i) such Indemnitee’s gross negligence or willful misconduct, (ii) the material breach in  bad faith by such Indemnitee of its express obligations under the Loan Documents pursuant to a claim  initiated by the BorrowersBorrower or (iii) any dispute solely among Indemnitees (not arising as a result  of any act or omission by eitherthe Borrower or any of its Subsidiaries or Affiliates) other than claims  against Wells Fargo in its capacity as Administrative Agent or the Arrangers in their capacities as such  under the Loan Documents.  This Section 11.3(b) shall not apply with respect to Taxes other than any  Indemnified Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.         (c)   Reimbursement by  Lenders.   To  the  extent  that  the  Borrower  for  any  reason  fails  to  indefeasibly  pay  any  amount  required  under  clause (a)  or  (b)  of  this  Section  to  be  paid  by  it  to  the  Administrative  Agent  (or  any  sub-agent  thereof),  the  Issuing  Lender,  the  Swingline  Lender  or  any  Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent  (or any such sub-agent), the Issuing Lender, the Swingline Lender or such Related Party, as the case may  be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or  indemnity payment is sought based on each Lender’s share of the Total Credit Exposure at such time, or  if the Total Credit Exposure has been reduced to zero, then based on such Lender’s share of the Total  Credit Exposure immediately prior to such reduction) of such unpaid amount (including any such unpaid  amount  in  respect  of  a  claim  asserted  by  such  Lender);  provided  that  with  respect  to  such  unpaid  amounts  owed  to  the  Issuing  Lender  or  the  Swingline  Lender  solely  in  its  capacity  as  such,  only  the  Revolving  Credit  Lenders  shall  be  required  to  pay  such  unpaid  amounts,  such  payment  to  be  made  severally  among  them  based  on  such  Revolving  Credit  Lenders’  Revolving  Credit  Commitment  Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is  sought or, if the Revolving Credit Commitment has been reduced to zero as of such time, determined  immediately prior to such reduction); provided, further, that the unreimbursed expense or indemnified  loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against  the  Administrative  Agent  (or  any such  sub-agent),  the  Issuing  Lender  or  the  Swingline  Lender  in  its  capacity  as  such,  or  against  any  Related  Party  of  any  of  the  foregoing  acting  for  the  Administrative  Agent  (or  any  such  sub-agent),  the  Issuing  Lender  or  the  Swingline  Lender  in  connection  with  such  capacity.  The obligations of the Lenders under this clause (c) are subject to the provisions of Section   4.7.         (d)   Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable  Law, eachthe  Borrower  and  each  other  Credit  Party  shall  not  assert,  and  hereby  waives,  any  claim  against  any  Indemnitee,  on  any  theory  of  liability,  for  special,  indirect,  consequential  or  punitive  damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this  Agreement,  any  other  Loan  Document  or  any  agreement  or  instrument  contemplated  hereby,  the  transactions  contemplated  hereby  or  thereby,  any  Loan  or  Letter  of  Credit  or  the  use  of  the  proceeds  thereof.  No Indemnitee referred to in clause (b) above shall be liable for any damages arising from the  use  by  unintended  recipients  of  any  information  or  other  materials  distributed  by  it  through  telecommunications,  electronic  or  other  information  transmission  systems  in  connection  with  this  Agreement or the other Loan Documents or the transactions contemplated hereby or thereby except to  the  extent  that  such  losses,  claims,  damages,  liabilities  or  expenses  are  determined  by  a  court  of                                           113 103755581_3 119311063_5 

 

    competent  jurisdiction  by  a  final  and  non-appealable  judgment  to  have  resulted  from  the  gross  negligence or willful misconduct of such Indemnitee.         (e)   Payments.  All amounts due under this Section shall be payable promptly after demand  therefor.         (f)   Survival.  Each party’s obligations under this Section shall survive the termination of the  Loan Documents and payment of the obligations hereunder.         SECTION 11.4    Right of Setoff.   If  an  Event  of  Default  shall  have  occurred  and  be continuing, each Lender, the Issuing Lender, the Swingline Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to  setoff  and  apply  any  and  all deposits  (general  or  special,  time  or  demand,  provisional  or  final,  in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Lender, the Swingline Lender or any such Affiliate to or for the credit or the account of the BorrowersBorrower or any other Credit Party against any and all of the obligations of the BorrowersBorrower  or  such  Credit  Party  now  or  hereafter  existing  under  this  Agreement  or  any  other Loan Document to such Lender, the Issuing Lender or the Swingline Lender or any of their respective Affiliates, irrespective of whether or not such Lender, the Issuing Lender, the Swingline Lender or any such  Affiliate  shall  have  made  any  demand  under  this  Agreement or  any  other  Loan  Document  and although  such  obligations  of  the BorrowersBorrower  or  such  Credit  Party  may  be  contingent  or unmatured or are owed to a branch or office of such Lender, the Issuing Lender, the Swingline Lender or such  Affiliate  different  from  the  branch,  office  or  Affiliate  holding  such  deposit  or  obligated  on  such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x)  all  amounts  so  setoff  shall  be  paid  over  immediately  to  the  Administrative  Agent  for  further application  in  accordance  with  the  provisions  of  Section 9.4  and,  pending  such  payment,  shall  be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Lender, the Swingline Lender and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each Lender, the Issuing Lender, the Swingline Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Lender, the Swingline Lender or their respective Affiliates may have.  Each Lender, the Issuing Lender and  the  Swingline  Lender  agree  to  notify  the  Borrower  Agent  and  the  Administrative  Agent  promptly after  any  such  setoff  and  application;  provided  that  the  failure  to  give  such  notice  shall  not  affect  the validity of such setoff and application.        SECTION 11.5     Governing Law; Jurisdiction, Etc.         (a)   Governing Law.   THIS  AGREEMENT  AND  THE  OTHER  LOAN  DOCUMENTS  AND  ANY  CLAIM,  CONTROVERSY,  DISPUTE  OR  CAUSE  OF  ACTION  (WHETHER IN  CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING  TO  THIS  AGREEMENT  OR  ANY  OTHER  LOAN  DOCUMENT  (EXCEPT,  AS  TO  ANY  OTHER  LOAN  DOCUMENT,  AS  EXPRESSLY  SET  FORTH  THEREIN)  AND  THE  TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY,  AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK,  WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD REQUIRE THE  APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.         (b)   Submission to Jurisdiction.  EachThe Borrower and each other Credit Party irrevocably  and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or                                            114 103755581_3 119311063_5 

 

    description,  whether  in  law  or  equity,  whether  in  contract  or  in  tort  or  otherwise,  against  the  Administrative Agent, any Lender, the Issuing Lender, the Swingline Lender, or any Related Party of the  foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating  hereto  or  thereto,  in  any  forum  other  than  the  courts  of  the  State  of  New  York  sitting  in  New  York  County, and of the United States District Court of the Southern District of New York, and any appellate  court  from  any  thereof,  and  each  of  the  parties  hereto  irrevocably  and  unconditionally  submits to the  jurisdiction  of  such  courts  and  agrees  that  all  claims  in  respect  of  any  such  action,  litigation  or  proceeding may be heard and determined in such New York State court or, to the fullest extent permitted  by Applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any  such action, litigation 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 in any other  Loan Document shall affect any right that the Administrative Agent, any Lender, the Issuing Lender or  the Swingline Lender may otherwise have to bring any action or proceeding relating to this Agreement  or any other Loan Document against eitherthe Borrower or any other Credit Party or its properties in the  courts of any jurisdiction.         (c)   Waiver of  Venue.  EachThe  Borrower  and  each  other  Credit  Party  irrevocably  and  unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now  or  hereafter  have  to  the laying of venue of any action or proceeding arising out of or relating to this  Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each  of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the  defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.         (d)   Service of Process.  Each party hereto irrevocably consents to service of process in the  manner provided for notices in Section 11.1.  Nothing in this Agreement will affect the right of any party  hereto to serve process in any other manner permitted by Applicable Law.         SECTION 11.6    Waiver of Jury Trial.  EACH  PARTY  HERETO  HEREBY IRREVOCABLY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY  OTHER  LOAN  DOCUMENT  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY OR  THEREBY  (WHETHER  BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER  THEORY). EACH  PARTY  HERETO  (i)  CERTIFIES  THAT  NO  REPRESENTATIVE,  AGENT  OR ATTORNEY  OF  ANY  OTHER  PERSON  HAS  REPRESENTED,  EXPRESSLY  OR OTHERWISE,  THAT  SUCH  OTHER  PERSON  WOULD  NOT,  IN  THE  EVENT  OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (ii) ACKNOWLEDGES THAT  IT  AND  THE  OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.         SECTION 11.7    Reversal of Payments.  To the extent any Credit Party makes a payment or payments  to  the  Administrative  Agent  for  the  ratable  benefit  of  any  of  the  Secured  Parties  or  to  any Secured  Party  directly  or  the  Administrative  Agent  or  any  Secured  Party  receives  any  payment  or proceeds of the Collateral or any Secured Party exercises its right of setoff, which payments or proceeds (including any proceeds of such setoff) or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under  any  Debtor  Relief  Law,  other  Applicable  Law  or  equitable cause,  then,  to  the  extent  of  such payment  or  proceeds  repaid,  the  Secured  Obligations  or  part  thereof  intended  to  be  satisfied  shall  be revived and continued in full force and effect as if such payment or proceeds had not been received by the Administrative  Agent,  and  each  Lender  and  the  Issuing  Lender  severally  agrees  to  pay  to  the                                            115 103755581_3 119311063_5 

 

   Administrative  Agent  upon  demand  its  applicable  ratable  share  (without  duplication  of  any  amount  so recovered from or repaid by the Administrative Agent) plus interest thereon at a per annum rate equal to the  Federal  Funds  Rate  from  the  date  of  such  demand  to  the  date  such  payment  is  made  to  the Administrative Agent.        SECTION 11.8     Injunctive Relief.  The Borrowers recognizeBorrower recognizes that, in the event eitherthe Borrower fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Lenders. Therefore, eachthe Borrower agrees that the Lenders, at the Lenders’ option, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.        SECTION 11.9     Successors and Assigns; Participations.         (a)   Successors and Assigns Generally.  The provisions of this Agreement shall be binding  upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted  hereby, except that neither the Borrower nor any other Credit Party may assign or otherwise transfer any  of its rights or obligations hereunder without the prior written consent of the Administrative Agent and  each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder  except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of  participation in accordance with the provisions of paragraph (d) of this Section or (iii) by way of pledge  or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any  other  attempted  assignment  or  transfer  by  any  party  hereto  shall  be  null  and  void).   Nothing  in  this  Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties  hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in  paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of  each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or  by reason of this Agreement.         (b)   Assignments by Lenders.  Any Lender may at any time assign to one or more assignees  all  or  a  portion  of  its  rights and  obligations  under  this  Agreement  (including  all  or  a  portion  of  its  Revolving Credit Commitment and the Loans at the time owing to it); provided that, in each case with  respect to any Credit Facility, any such assignment shall be subject to the following conditions:               (i)    Minimum Amounts.                      (A)   in  the  case  of  an  assignment  of  the  entire  remaining  amount  of the              assigning Lender’s Revolving Credit Commitment and/or the Loans at the time owing to              it  (in  each  case  with  respect  to  any  Credit  Facility),  no  minimum  amount  need  be              assigned; and                      (B)   in  any  case  not  described  in  paragraph  (b)(i)(A)  of  this  Section,  the              aggregate  amount  of  the  Loans  and  the  Revolving  Credit  Commitment or, if the              applicable Revolving Credit Commitment is not then in effect, the principal outstanding              balance  of  the  Loans  of  the  assigning  Lender  subject  to  each  such  assignment              (determined  as  of  the  date  the  Assignment  and  Assumption  with  respect  to  such              assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the              Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000 or,              if  less,  then  the  remaining  amount  of  the  assigning  Lender’s  Revolving  Credit              Commitment and/or Loans, unless each of the Administrative Agent and, so long as no              Event  of  Default  has  occurred  and  is  continuing,  the BorrowersBorrower  otherwise              consentconsents  (each  such  consent  not  to  be  unreasonably  withheld  or  delayed);                                            116 103755581_3 119311063_5 

 

                provided that the BorrowersBorrower shall be deemed to have given its consent ten (10)              Business Days after the date written notice thereof has been delivered by the assigning              Lender (through the Administrative Agent) unless such consent is expressly refused by              the Borrower Agent prior to such tenth (10th) Business Day;               (ii)   Proportionate Amounts.  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        with respect to the Loan or the Revolving Credit Commitment assigned;               (iii)  Required Consents.  No consent shall be required for any assignment except to        the extent required by paragraph (b)(i)(B) of this Section and, in addition:                      (A)   the consent of the Borrower Agent (such consent not to be unreasonably              withheld or delayed) shall be required unless (x) an Event of Default has occurred and is              continuing at the time of such assignment or (y) such assignment is to a Lender or an              Affiliate  of  a  Lender;  provided, that the Borrower  Agent  shall  be  deemed  to  have              consented to any such assignment unless it shall object thereto by written notice to the              Administrative Agent within ten (10) Business Days after having received notice thereof;                      (B)    the  consent  of  the  Administrative  Agent  (such  consent  not  to  be              unreasonably withheld or delayed) shall be required for assignments if such assignment is              to a Person that is not a Lender or an Affiliate of such Lender; and                      (C)    the  consents  of  the  Issuing  Lender  and  the  Swingline  Lender (such               consents  not to be  unreasonably  withheld or  delayed) shall  be  required  for  any              assignment in respect of the Revolving Credit Facility.               (iv)   Assignment and Assumption.  The parties to each assignment shall execute and        deliver to the Administrative Agent an Assignment and Assumption, together with a processing        and recordation fee of $3,500 for each assignment; provided that the Administrative Agent may,       in  its  sole  discretion,  elect  to  waive  such  processing  and  recordation  fee  in  the  case  of  any       assignment.   The  assignee,  if  it  is  not  a  Lender,  shall  deliver  to  the  Administrative  Agent  an       Administrative  Questionnaire.   Upon the  Borrower’s  request after the  effectiveness of any        Assignment and Assumption, the Administrative Agent shall promptly deliver to the Borrower an        updated  schedule of the  Loans and  Revolving Credit  Commitments of  each  Lender  under this        Agreement.               (v)    No  Assignment to  Certain  Persons.   No  such  assignment  shall  be  made  to  (A)       eitherthe Borrower or any of their respectiveits Subsidiaries or Affiliates or (B) any Defaulting       Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would       constitute any of the foregoing Persons described in this clause (B).               (vi)   No  Assignment to  Natural  Persons.   No  such  assignment  shall  be  made  to  a       natural Person (or a holding company, investment vehicle or trust for, or owned and operated for       the primary benefit of, a natural Person).               (vii)  Certain Additional Payments.  In connection with any assignment of rights and       obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and       until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall       make such additional payments to the Administrative Agent in an aggregate amount sufficient,       upon  distribution  thereof  as  appropriate  (which  may  be  outright  payment,  purchases  by  the                                            117 103755581_3 119311063_5 

 

         assignee of participations or sub-participations, or other compensating actions, including funding,       with  the  consent  of  the  Borrower  Agent  and  the  Administrative  Agent,  the  applicable  pro rata       share of Loans previously requested, but not funded by, the Defaulting Lender, to each of which       the applicable assignee and assignor hereby irrevocably consent), to (A) pay and satisfy in full all       payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing       Lender, the Swingline Lender and each other Lender hereunder (and interest accrued thereon),       and (B) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in       Letters  of  Credit  and  Swingline Loans  in  accordance  with  its  Revolving  Credit  Commitment       Percentage.   Notwithstanding  the  foregoing,  in  the  event  that  any  assignment  of  rights  and       obligations  of  any  Defaulting  Lender  hereunder  shall  become  effective  under  Applicable  Law        without compliance with the provisions of this paragraph, then the assignee of such interest shall        be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance        occurs.  Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section,  from  and  after  the  effective  date  specified  in  each  Assignment  and  Assumption,  the  assignee thereunder  shall  be  a  party  to  this  Agreement  and,  to  the  extent  of  the  interest  assigned  by  such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning  Lender  thereunder  shall,  to  the  extent  of  the  interest  assigned  by  such  Assignment  and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption  covering  all  of  the  assigning  Lender’s  rights  and  obligations  under  this  Agreement,  such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 4.8, 4.9, 4.10, 4.11 and 11.3 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section (other than a purported assignment to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person) or the Parent Borrower or any of the Parent Borrower’s Subsidiaries or Affiliates, which shall be null and void.).         (c)   Register.   The  Administrative  Agent,  acting  solely  for  this  purpose  as a  non-fiduciary  agent of the BorrowersBorrower, shall maintain at one of its offices in Charlotte, North Carolina, a copy  of each Assignment and Assumption and each Incremental Amendment delivered to it and a register for  the recordation of the names and addresses of the Lenders, and the Revolving Credit Commitment of,  and principal amounts of (and stated interest on) the Loans owing to, each Lender pursuant to the terms  hereof  from  time  to  time  (the  “Register”).   The  entries  in  the  Register  shall  be  conclusive,  absent  manifest error, and the BorrowersBorrower, the Administrative Agent and the Lenders shall treat each  Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all  purposes of this Agreement.  The Register, any Assignment and Assumption, and any Administrative  Questionnaire shall be available for inspection by the BorrowersBorrower at any reasonable time and  from time to time upon reasonable prior notice by the Borrower Agent.  The Register shall be available  for inspection by any Lender (but only to the extent of entries in the Register that are applicable to such  Lender), at any reasonable time and from time to time upon reasonable prior notice.         (d)   Participations.   Any  Lender  may  at  any  time,  without  the  consent  of,  or  notice  to,  the  BorrowersBorrower or the Administrative Agent, sell participations to any Person (other than a natural  Person or the BorrowersBorrower or any of the Borrowers’Borrower’s Subsidiaries or Affiliates) (each,  a  “Participant”)  in  all  or  a  portion  of  such Lender’s  rights  and/or  obligations  under  this  Agreement                                           118 103755581_3 119311063_5 

 

    (including all or a portion of its Revolving Credit Commitment and/or the Loans owing to it); provided  that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall  remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the  BorrowersBorrower, the Administrative Agent, the Issuing Lender, the Swingline Lender and the other  Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s  rights  and  obligations  under  this  Agreement.   For  the  avoidance  of  doubt,  each  Lender  shall  be  responsible for the indemnity under Section 11.3(c) with respect to any payments made by such Lender  to its Participant(s).  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver or modification described in Section 11.2(b), (c), (d) or (e) that directly and adversely affects such Participant.  The Borrowers agreeBorrower agrees that each Participant shall be entitled to the benefits of Sections 4.9,  4.10  and  4.11  (subject  to  the  requirements  and  limitations  therein,  including  the requirements under Section 4.11(g) (it being understood that the documentation required under Section  4.11(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired  its  interest  by  assignment  pursuant  to  paragraph (b)  of  this  Section;  provided  that  such Participant  (A)  agrees  to  be  subject  to  the  provisions  of  Section 4.12  as  if  it  were  an  assignee  under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections  4.10 or 4.11, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that  occurs  after  the  Participant  acquired  the  applicable  participation.   Each  Lender  that  sells  a participation agrees, at the Borrower Agent’s request and expense, to use reasonable efforts to cooperate with  the BorrowersBorrower  to  effectuate  the  provisions  of  Section  4.12(b)  with  respect  to  any Participant.   To  the  extent  permitted  by  law,  each  Participant also  shall  be  entitled  to  the  benefits  of Section 11.4 as though it were a Lender; provided that such Participant agrees to be subject to Section 4.6 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the BorrowersBorrower, maintain a register on which it enters the name and address of each Participant and the  principal  amounts  of  (and  stated  interest  on)  each  Participant’s  interest  in  the  Loans  or  other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any  obligation  to  disclose  all  or  any  portion  of  the  Participant  Register  (including  the  identity  of  any Participant  or  any  information  relating  to  a  Participant’s  interest  in  any  commitments,  loans,  letters  of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant  Register  shall  be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this  Agreement  notwithstanding  any  notice  to  the  contrary.   For  the  avoidance  of  doubt,  the Administrative  Agent  (in  its  capacity  as  Administrative  Agent) shall  have  no  responsibility  for maintaining a Participant Register.         (e)   Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or  any portion of its rights under this Agreement to secure obligations of such Lender, including without  limitation any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no  such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute  any such pledgee or assignee for such Lender as a party hereto.                                            119 103755581_3 119311063_5 

 

          (f)   Cashless  Settlement.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement, any Lender may exchange, continue or rollover all or a portion of its Loans in connection  with any refinancing, extension, loan modification or similar transaction permitted by the terms of this  Agreement,  pursuant  to  a  cashless  settlement  mechanism  approved by the Parent Borrower,  the  Administrative Agent and such Lender.         SECTION 11.10   Treatment of  Certain  Information;  Confidentiality.  Each of the Administrative  Agent,  the  Lenders  and  the  Issuing  Lender  agree to  maintain  the  confidentiality  of  the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and  its  Related  Parties  (it  being  understood  that  the  Persons  to  whom  such  disclosure  is  made  will  be informed  of  the  confidential  nature  of  such  Information  and  instructed  to  keep  such  Information confidential), (b) to the extent required or requested by, or required to be disclosed to, any regulatory or similar authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory  authority,  such  as  the  National  Association  of Insurance  Commissioners),  (c)  as  to  the extent  required  by  Applicable  Laws  or  regulations  or  in  any  legal,  judicial,  administrative  or  other compulsory proceeding, (d) to any other party hereto (subject to the applicable provisions of Section 7.2), (e)  in  connection  with  the  exercise  of  any  remedies  under  this Agreement,  under  any  other  Loan Document  or  under  any  Secured  Hedge  Agreement  or  Secured  Cash  Management  Agreement,  or  any action  or  proceeding  relating  to  this  Agreement,  any  other  Loan  Document  or  any  Secured  Hedge Agreement  or  Secured  Cash  Management  Agreement,  or  the  enforcement  of  rights  hereunder  or thereunder,  (f)  subject  to  an  agreement  containing  provisions  substantially  the  same  as  those  of  this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the BorrowersBorrower and their obligations, this Agreement or payments hereunder, (g) on a confidential basis  to  (i)  any  rating  agency  in  connection  with  rating  the Parent Borrower  or  its  Subsidiaries  or  the Credit Facility or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and  monitoring  of  CUSIP  numbers  with  respect  to  the  Credit  Facility,  (h)  with  the  consent  of  the BorrowersBorrower, (i) with the consent of the BorrowersBorrower, not to be unreasonably withheld, to Gold Sheets and other similar bank trade publications, such information to consist solely of deal terms and  other  information  customarily  found  in  such  publications,  (j)  to  the  extent  such  Information  (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, any Lender, the Issuing Lender or any of their respective Affiliates from a third party that is not, to such Person’s knowledge, subject to confidentiality obligations to eitherthe Borrower, (k)  to  governmental  regulatory  authorities  in  connection  with  any  regulatory  examination  of  the Administrative Agent or any Lender or in accordance with the Administrative Agent’s or any Lender’s regulatory  compliance  policy  if  the  Administrative  Agent  or  such  Lender  deems  necessary  for  the mitigation of claims by those authorities against the Administrative Agent or such Lender or any of its subsidiaries  or  affiliates,  or  (l)  for  purposes  of  establishing  a  “due  diligence”  defense,  provided  that, unless  specifically  prohibited  by  Applicable  Law  or  court  order,  each  Lender  shall  notify  the Parent  Borrower  of  any  request  by  any  Governmental  Authority  or  representative  thereof  (other  than  such request  in  connection  with  any  examination  of  the  financial  condition  or  other  routine  examination  of such Lender by such Governmental Authority) for disclosure of any such non-public information prior to disclosure  of  such  information.   For  purposes  of  this  Section, “Information”  means  all  information received from any Credit Party or any Subsidiary thereof relating to any Credit Party or any Subsidiary thereof  or  any  of  their  respective  businesses,  other  than  any  such  information  that  is  available  to  the Administrative Agent, any Lender or any Issuing Lender on a non-confidential basis prior to disclosure by any Credit Party or any Subsidiary thereof; provided that, in the case of information received from a Credit Party or any Subsidiary thereof after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person                                           120 103755581_3 119311063_5 

 

   has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.         SECTION 11.11   Performance of  Duties.   Each  of  the  Credit  Party’s  obligations  under  this Agreement and each of the other Loan Documents shall be performed by such Credit Party at its sole cost and expense.         SECTION 11.12   All Powers  Coupled  with  Interest.   All  powers  of  attorney  and  other authorizations  granted  to  the  Lenders,  the  Administrative  Agent  and  any  Persons  designated  by  the Administrative  Agent  or  any Lender pursuant to any provisions of this Agreement or any of the other Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of the Obligations remain unpaid or unsatisfied, any of the Revolving Credit Commitments remain in effect or the Credit Facility has not been terminated.         SECTION 11.13   Survival.         (a)   All  representations  and  warranties  set  forth  in  Article VI  and  all  representations  and  warranties contained in any certificate, or any of the Loan Documents (including, but not limited to, any  such representation or warranty made in or in connection with any amendment thereto) shall constitute  representations  and  warranties  made  under  this  Agreement.   All representations  and  warranties  made  under  this  Agreement  shall  survive  the  Closing  Date  and  shall  not  be  waived  by  the  execution  and  delivery  of  this  Agreement, any investigation made by or on behalf of the Lenders or any borrowing  hereunder.         (b)   Notwithstanding  any  termination  of  this  Agreement,  the  indemnities  to  which  the  Administrative Agent and the Lenders are entitled under the provisions of this Article XI and any other  provision of this Agreement and the other Loan Documents shall continue in full force and effect and  shall protect the Administrative Agent and the Lenders against events arising after such termination as  well as before.        SECTION 11.14    Titles and Captions.  Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement.        SECTION 11.15    Severability of  Provisions.   Any  provision  of  this  Agreement  or  any  other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.  In the event that any provision is held to be so prohibited or unenforceable  in  any  jurisdiction,  the  Administrative  Agent,  the  Lenders  and  the BorrowersBorrower shall  negotiate  in  good  faith  to  amend  such  provision  to  preserve  the  original  intent  thereof  in  such jurisdiction (subject to the approval of the Required Lenders).         SECTION 11.16   Counterparts; Integration; Effectiveness; Electronic Execution.         (a)   Counterparts;  Integration;  Effectiveness.   This  Agreement  may  be  executed  in  counterparts (and by different parties hereto in different counterparts), each of which shall constitute an  original, but all of which when taken together shall constitute a single contract.  This Agreement and the  other  Loan  Documents,  and  any  separate  letter  agreements  with  respect  to  fees  payable  to  the  Administrative  Agent,  the  Issuing  Lender,  the  Swingline  Lender and/or  the  Arrangers,  constitute  the  entire contract among the parties relating to the subject matter hereof and supersede any and all previous                                            121 103755581_3 119311063_5 

 

    agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided  in  Section 5.1,  this  Agreement  shall  become  effective  when  it  shall  have  been  executed  by  the  Administrative Agent and when the Administrative Agent shall have received counterparts hereof that,  when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed  counterpart  of  a  signature  page  of  this  Agreement  by  facsimile or  in  electronic  (i.e.,  “pdf”  or  “tif”)  format shall be effective as delivery of a manually executed counterpart of this Agreement.         (b)   Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and  words of like import in any Assignment and Assumption shall be deemed to include electronic signatures  or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or  enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the  case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic  Signatures  in  Global  and  National  Commerce  Act,  the  New  York  State  Electronic  Signatures  and  Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.        SECTION 11.17    Term of Agreement.  This Agreement shall remain in effect from the Closing Date through and including the date upon which all Obligations (other than contingent indemnification obligations  not  then  due)  arising  hereunder  or  under  any  other Loan  Document  shall  have  been indefeasibly  and  irrevocably  paid  and  satisfied  in  full,  all  Letters  of  Credit  have  been  terminated  or expired (or been Cash Collateralized or other arrangements with respect thereto have been made that are satisfactory to the Issuing Lender) or otherwise satisfied in a manner acceptable to the Issuing Lender and the Revolving Credit Commitment has been terminated.  No termination of this Agreement shall affect the  rights  and  obligations  of  the  parties  hereto  arising  prior to  such  termination  or  in  respect  of  any provision of this Agreement which survives such termination.        SECTION 11.18    USA  PATRIOT Act;  Anti-Money  Laundering Laws.   The  Administrative Agent and each Lender hereby notifies the BorrowersBorrower that pursuant to the requirements of the PATRIOT Act or any other Anti-Money Laundering Laws, each of them is required to obtain, verify and record information that identifies each Credit Party, which information includes the name and address of each  Credit  Party  and  other  information  that  will  allow  such  Lender  to  identify  each  Credit  Party  in accordance with the PATRIOT Act or such Anti-Money Laundering Laws.        SECTION 11.19    Independent  Effect of  Covenants.  The BorrowersBorrower  expressly acknowledgeacknowledges and agreeagrees that each covenant contained in Articles VII or VIII hereof shall  be  given  independent  effect.   Accordingly,  the BorrowersBorrower  shall  not  engage  in  any transaction  or  other  act  otherwise  permitted  under  any  covenant  contained  in  Articles VII  or  VIII,  if before or after giving effect to such transaction or act, the BorrowersBorrower shall or would be in breach of any other covenant contained in Articles VII or VIII.         SECTION 11.20   No Advisory or Fiduciary Responsibility.         (a)   In connection with all aspects of each transaction contemplated hereby, each Credit Party  acknowledges and agrees, and acknowledges its Affiliates’ understanding, that (i) the facilities provided  for  hereunder  and  any  related  arranging  or  other  services  in  connection  therewith  (including  in  connection with any amendment, waiver or other modification hereof or of any other Loan Document)  are an arm’s-length commercial transaction between the BorrowersBorrower and theirits Affiliates, on  the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, and the  Borrowers areBorrower is  capable  of  evaluating  and  understanding  and  understands  and  accepts  the  terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents  (including any amendment, waiver or other modification hereof or thereof), (ii) in connection with the  process leading to such transaction, each of the Administrative Agent, the Arrangers and the Lenders is                                            122 103755581_3 119311063_5 

 

    and  has  been  acting  solely  as  a  principal  and  is  not  the  financial  advisor,  agent  or  fiduciary,  for  the  BorrowersBorrower or any of theirits  Affiliates,  stockholders,  creditors  or  employees  or  any  other  Person, (iii) none of the Administrative Agent, the Arrangers or the Lenders has assumed or will assume  an advisory, agency or fiduciary responsibility in favor of the BorrowersBorrower with respect to any of  the  transactions  contemplated  hereby  or  the  process  leading  thereto,  including  with  respect  to  any  amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether  any Arranger or Lender has advised or is currently advising the BorrowersBorrower or any of theirits  Affiliates on other matters) and none of the Administrative Agent, the Arrangers or the Lenders has any  obligation  to  the BorrowersBorrower or any of theirits  Affiliates  with  respect  to  the  financing  transactions  contemplated  hereby  except  those  obligations  expressly  set  forth  herein  and  in  the  other  Loan Documents, (iv) the Arrangers and the Lenders and their respective Affiliates may be engaged in a  broad range of transactions that involve interests that differ from, and may conflict with, those of the  BorrowersBorrower and theirits Affiliates, and none of the Administrative Agent, the Arrangers or the  Lenders  has  any  obligation  to  disclose  any  of  such  interests  by  virtue  of  any  advisory,  agency  or  fiduciary  relationship  and  (v)  the  Administrative  Agent,  the  Arrangers  and  the  Lenders  have  not  provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the  transactions contemplated hereby (including any amendment, waiver or other modification hereof or of  any other Loan Document) and the Credit Parties have consulted their own legal, accounting, regulatory  and tax advisors to the extent they have deemed appropriate.         (b)   Each  Credit  Party  acknowledges  and  agrees  that  each  Lender,  the  Arrangers  and  any  Affiliate thereof may lend money to, invest in, and generally engage in any kind of business with, any of   the BorrowersBorrower, any Affiliate thereof or any other person or entity that may do business with or  own securities of any of the foregoing, all as if such Lender, Arranger or Affiliate thereof were not a  Lender or Arranger or an Affiliate thereof (or an agent or any other person with any similar role under  the Credit Facilities) and without any duty to account therefor to any other Lender, the Arrangers, the  BorrowersBorrower  or  any  Affiliate  of  the  foregoing.   Each  Lender,  the  Arrangers  and  any  Affiliate  thereof may accept fees and other consideration from the BorrowersBorrower or any Affiliate thereof for  services in connection with this Agreement, the Credit Facilities or otherwise without having to account  for  the  same  to  any  other  Lender,  the  Arrangers,  the BorrowersBorrower  or  any  Affiliate  of  the  foregoing.        SECTION 11.21    Borrower  Agent.  The Cayman  Borrower  hereby  designates the  Parent  Borrower as its representative and agent (in such capacity, the “Borrower Agent”) for all purposes under  the Loan  Documents,  including  requests for  Loans and  Letters of  Credit,  designation of  interest  rates,  delivery or receipt of communications, preparation and delivery of financial reports, receipt and payment  of  Obligations,  requests for waivers,  amendments or other  accommodations,  actions  under the Loan  Documents  (including in  respect of  compliance  with  covenants), and all other  dealings  with the  Administrative Agent, the Issuing Lender, the Swingline Lender or any Lender.  Borrower Agent hereby  accepts such appointment.  The Administrative Agent and Lenders shall be entitled to rely upon, and shall  be  fully  protected in relying  upon, any  notice or  communication  (including any  Notice of  Borrowing)  delivered by Borrower Agent on behalf of the Cayman Borrower.  The Administrative Agent and Lenders  may give any notice or communication with the Cayman Borrower to Borrower Agent on behalf of the  Cayman Borrower.  Each of the Administrative Agent, Issuing Lender, Swingline Lender and Lenders  shall have the right, in their discretion, to deal exclusively with Borrower Agent for any or all purposes  under the Loan  Documents.  The Cayman  Borrower  agrees that any  notice,  election,  communication,  representation, agreement or undertaking made on its behalf by Borrower Agent shall be binding upon  and enforceable against it[Reserved].        SECTION 11.22    Nature of  Obligations.   Notwithstanding  anything  to  contrary  contained  in the Loan Documents, (a) the US Credit Parties shall be jointly and severally liable for all Obligations and                                            123 103755581_3 119311063_5 

 

   (b) the Foreign Credit Parties shall be jointly and severally liable for all Cayman Obligations, but in no  event shall any  Foreign Credit Party have any  obligation  with  respect to the US.  As of the Third  Amendment Effective Date, the Cayman Borrower (as defined in this Agreement immediately prior to the  effectiveness of the Third Amendment) has been released as a Borrower under this Agreement and all  Foreign Credit Parties (as defined in this Agreement immediately prior to the effectiveness of the Third  Amendment) have been released as parties to this Agreement and from any further obligations hereunder.   For the avoidance of doubt, as of the Third Amendment Effective Date, no Foreign Subsidiary and no  Foreign  Subsidiary  Holdco shall be  liable for any  Obligations.   In  the  event  of  any  conflict  or inconsistency between this Section 11.22 and any other provision of any Loan Document, this Section  11.22 shall control.        SECTION 11.23    Judgment Currency.  Each Credit Party’s obligation hereunder and under the other Loan Documents to make payments in Dollars shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than Dollars, except to the extent that such tender or recovery results in the effective receipt by the Administrative Agent, the Issuing  Lender  or  the  respective  Lender  of  the  full  amount  of  Dollars  expressed  to  be  payable  to  the Administrative  Agent,  the  Issuing  Lender  or  such  Lender  under  this  Agreement  or  the  other  Loan Documents.  If, for the purpose of obtaining or enforcing judgment against any Credit Party in any court or in any jurisdiction, it becomes necessary to convert into or from any currency other than Dollars (such other currency being hereinafter referred to as the “Judgment Currency”), an amount due in Dollars, the conversion  shall  be  made,  at  the  rate  of  exchange  quoted  by  the  Administrative  Agent  (or,  if  the Administrative  Agent  does not quote a rate of exchange on such currency, by a known dealer in such currency designated by the Administrative Agent), determined, in each case, as of the Business Day on which the judgment is given.  If the amount of Dollars so purchased is less than the sum originally due to the  Administrative  Agent,  the  Issuing  Lender  or  any  Lender  from the Borrowers,  eachBorrower, the Borrower agrees, jointly and severally, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent, the Issuing Lender or such Lender, as the case may be, against such  loss.   If  the  amount  of  Dollars  so  purchased  is  greater  than  the  sum  originally  due  to  the Administrative Agent, the Issuing Lender or any Lender, the Administrative Agent, the Issuing Lender or such Lender, as the case may be, agrees to return the amount of any excess to the BorrowersBorrower (or to any other Person who may be entitled thereto under Applicable Law).  For purposes of determining any rate of exchange for this Section 11.22,11.23, such amounts shall include any premium and costs payable in connection with the purchase of Dollars.        SECTION 11.24    Inconsistencies  with Other  Documents.   In  the  event  there  is  a  conflict  or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall control; provided that any provision of the Security Documents which imposes additional burdens on the Parent Borrower or any of its Subsidiaries or further restricts the rights of the Parent Borrower or any of its Subsidiaries or gives the Administrative Agent or Lenders additional rights shall not be deemed to be in conflict or inconsistent with this Agreement and shall be given full force and effect.         SECTION 11.25   Amendment and Restatement; No Novation.  This Agreement constitutes an amendment and restatement of the Existing Credit Agreement, effective from and after the Closing Date. The execution and delivery of this Agreement shall not constitute a novation of any indebtedness or other obligations owing to the Lenders or the Administrative Agent under the Existing Credit Agreement based on facts or events occurring or existing prior to the execution and delivery of this Agreement.  On the Closing  Date,  the  credit  facilities  described  in  the  Existing  Credit  Agreement,  shall  be  amended, supplemented, modified and restated in their entirety by the facilities described herein, and all loans and other obligations of the Borrower outstanding as of such date under the Existing Credit Agreement, shall be deemed to be loans and obligations outstanding under the corresponding facilities described herein, without any further action by any Person, except that the Administrative Agent shall make such transfers                                           124 103755581_3 119311063_5 

 

   of funds as are necessary in order that the outstanding balance of such Loans, together with any Loans funded  on  the  Closing  Date,  reflect  the  respective  Revolving  Credit  Commitment  of  the  Lenders hereunder and the Borrowers agreeBorrower agrees to pay any amounts required pursuant to Section 4.9 in connection with such transfers as if all Loans under the Existing Credit Agreement were repaid on the Closing Date, to the extent not waived by the applicable Lenders.        SECTION 11.26    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.        SECTION 11.27    Certain ERISA Matters.         (a)   Each  Lender  (x)  represents  and  warrants,  as  of  the  date  such  Person  became  a  Lender  party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date  such  Person  ceases  being  a  Lender  party  hereto,  for  the  benefit  of,  the  Administrative  Agent,  each  Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the  Parent Borrower or any other Credit Party, that at least one of the following is and will be true:               (i)    such  Lender  is  not  using  “plan  assets”  (within  the  meaning  of 29 CFR §        2510.3-101, as modified by Section 3(42) of ERISA or otherwise) of one or more Benefit Plans       in connection with respect to such Lender’s entrance into, participation in, administration of and        performance of the Loans, the Letters of Credit or the Revolving Credit Commitments;               (ii)   the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a       class exemption for certain transactions determined by independent qualified professional asset       managers), PTE 95-60 (a class exemption for certain transactions involving insurance company       general  accounts),  PTE  90-1  (a  class  exemption  for  certain  transactions  involving  insurance       company  pooled  separate  accounts),  PTE  91-38  (a  class  exemption  for  certain  transactions       involving  bank  collective  investment  funds)  or  PTE  96-23  (a  class  exemption  for  certain       transactions determined by in-house asset managers), is applicable with respect to such Lender’s                                            125 103755581_3 119311063_5 

 

         entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of       Credit, the Revolving Credit Commitments and this Agreement;               (iii)  (A)  such  Lender  is  an  investment  fund  managed  by  a  “Qualified  Professional       Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional       Asset Manager made the investment decision on behalf of such Lender to enter into, participate       in, administer and perform the Loans, the Letters of Credit, the Revolving Credit Commitments       and this Agreement, (C) the entrance into, participation in, administration of and performance of       the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement satisfies       the  requirements  of  sub-sections  (b)  through  (g)  of  Part  I  of  PTE  84-14  and  (D)  to  the  best       knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied       with respect to such Lender’s entrance into, participation in, administration of and performance of       the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement; or               (iv)   such  other  representation,  warranty  and  covenant  as  may  be  agreed  in  writing       between the Administrative Agent, in its sole discretion, and such Lender.         (b)   In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true  with  respect  to  a  Lender  or such(2) a  Lender  has not provided  another  representation,  warranty  and  covenant as provided in accordance with sub-clause (iv) in the immediately preceding clause (a), such  Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to,  and  (y)  covenants,  from  the  date  such  Person  became  a  Lender  party  hereto  to  the  date  such  Person  ceases being a Lender party hereto, for the benefit of, the Administrative Agent, each Arranger and their  respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Parent Borrower or  any other Credit Party, that:(i)   none  of  the  Administrative  Agent,  any  Arranger nor any ofand their  respective Affiliates is a fiduciary with respect to the assets of such Lender involved in such Lender’s   entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the   Revolving Credit  Commitments and this  Agreement  (including  in  connection  with  the  reservation  or  exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any  documents related to hereto or thereto);               (ii)   the Person making the investment decision on behalf of such Lender with respect        to the entrance into, participation in, administration of and performance of the Loans, the Letters        of  Credit, the  Revolving Credit  Commitments and this  Agreement is  independent  (within the        meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a        broker-dealer or other person that holds, or has under management or control, total assets of at        least $50 million, in each case as described in 29 CFR § 2510.3-21(c)(1)(i)(A)-(E),               (iii)  the Person making the investment decision on behalf of such Lender with respect        to the entrance into, participation in, administration of and performance of the Loans, the Letters        of  Credit, the  Revolving Credit  Commitments and this  Agreement is  capable of  evaluating        investment risks  independently,  both in  general and  with  regard to  particular  transactions and        investment strategies (including in respect of the Secured Obligations);               (iv)   the Person making the investment decision on behalf of such Lender with respect        to the entrance into, participation in, administration of and performance of the Loans, the Letters        of Credit, the Revolving Credit Commitments and this Agreement is a fiduciary under ERISA or        the  Code, or  both,  with  respect to the  Loans, the  Letters of  Credit, the  Revolving Credit        Commitments and this  Agreement and is  responsible for  exercising  independent  judgment in        evaluating the transactions hereunder, and(v) no fee or other  compensation is being paid        directly to the Administrative Agent, each Arranger or their respective Affiliates for investment                                             126 103755581_3 119311063_5 

 

         advice (as  opposed to other  services) in  connection  with the  Loans, the  Letters of  Credit, the        Revolving Credit Commitments or this Agreement.         (c)   The Administrative Agent and each Arranger hereby informs the Lenders that each such   Person is  not  undertaking to  provide  impartial  investment  advice, or to give  advice in a  fiduciary   capacity, in connection with the transactions contemplated hereby, and that such Person has a financial   interest in the  transactions  contemplated  hereby in that such  Person or an  Affiliate  thereof (i) may   receive interest or other payments with respect to the Loans, the Letters of Credit, the Revolving Credit   Commitments and this  Agreement,  (ii) may  recognize a gain if it  extended the  Loans, the  Letters of   Credit or the  Revolving Credit  Commitments for an  amount  less than the  amount being paid for an   interest in the Loans, the Letters of Credit or the Revolving Credit Commitments by such Lender or (iii)   may receive fees or other payments in connection with the transactions contemplated hereby, the Loan   Documents or  otherwise,  including  structuring  fees,  commitment  fees,  arrangement  fees,  facility  fees,   upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees,   utilization  fees,  minimum  usage  fees,  letter of credit  fees,  fronting  fees,  deal-away or  alternate   transaction  fees,  amendment  fees,  processing  fees, term  out premiums,  banker’s  acceptance  fees,   breakage or other early termination fees or fees similar to the foregoing.        SECTION 11.28    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 FDIC 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):         (a)   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.         (b)   As used in this Section 11.28, the following terms have the following meanings:               “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and        interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.                                            127 103755581_3 119311063_5 

 

               “Covered Entity” means any of the following:               (i)    a “covered entity” as that term is defined in, and interpreted in accordance with,                      12 C.F.R. § 252.82(b);               (ii)   a “covered bank” as that term is defined in, and interpreted in accordance with,                      12 C.F.R. § 47.3(b); or               (iii)  a “covered FSI” as that term is defined in, and interpreted in accordance with, 12                      C.F.R. § 382.2(b).               “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.               “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).                               [Signature pages to followOmitted]                                             128 103755581_3 119311063_5 

 

                                                                    Annex B       Exhibits to Credit Agreement  (as amended by the Third Amendment)                             See attached                                                                        

 

                                                                          EXHIBIT A-1                    to  Second Amended and Restated Credit Agreement          dated as of January 17, 2018               by and among                Ubiquiti Inc.,                as Borrower,           the lenders party thereto,                as Lenders,                   and     Wells Fargo Bank, National Association,            as Administrative Agent                                               FORM OF US REVOLVING CREDIT NOTE                                                

 

                                                                                                             US REVOLVING CREDIT NOTE                                                                   __________, 20___               FOR VALUE RECEIVED, the undersigned, UBIQUITI INC., a Delaware corporation (the   “Borrower”), promises to pay to _______________ (the “Lender”), at the place and times provided in the   Credit Agreement referred to below, the principal sum of the unpaid principal amount of all Revolving   Credit Loans made by the Lender from time to time pursuant to that certain Second Amended and Restated   Credit Agreement, dated as of January 17, 2018 (as may be amended, restated, supplemented or otherwise  modified from time to time, the “Credit Agreement”), by and among the Borrower, the Lenders party thereto   and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized terms used herein and   not defined herein shall have the meanings assigned thereto in the Credit Agreement.          The unpaid principal amount of this US Revolving Credit Note from time to time outstanding is  payable as provided in the Credit Agreement and shall bear interest as provided in Section 4.1 of the Credit   Agreement.  All payments of principal and interest on this US Revolving Credit Note shall be payable in   Dollars in immediately available funds as provided in the Credit Agreement.          This US Revolving Credit Note is entitled to the benefits of, and evidences Obligations incurred  under, the Credit Agreement, to which reference is made for a description of the security for this US  Revolving Credit Note and for a statement of the terms and conditions on which the Borrower is permitted  and required to make prepayments and repayments of principal of the Obligations evidenced by this US  Revolving Credit Note and on which such Obligations may be declared to be immediately due and payable.         THIS US REVOLVING CREDIT NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN  ACCORDANCE WITH,    THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO   CONFLICT OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS   OF ANY OTHER JURISDICTION.          The Indebtedness evidenced by this US Revolving Credit Note is senior in right of payment to all   Subordinated Indebtedness referred to in the Credit Agreement.          The Borrower hereby waives all requirements as to diligence, presentment, demand of payment,   protest and (except as required by the Credit Agreement) notice of any kind with respect to this US   Revolving Credit Note.            This US Revolving Credit Note is one of the Notes referred to in the Credit Agreement and may be   prepaid in whole or in part subject to the terms and conditions provided therein.                  [Remainder of page intentionally left blank; signature page follows]         

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this US Revolving Credit Note as of the  day and year first above written.                                         UBIQUITI INC.                                                                                                                        By:                                                                         Name:                                                                       Title:                                                                  

 

                                                                          EXHIBIT A-2                    to  Second Amended and Restated Credit Agreement          dated as of January 17, 2018               by and among                Ubiquiti Inc.,                as Borrower,           the lenders party thereto,                as Lenders,                   and     Wells Fargo Bank, National Association,            as Administrative Agent                                                      FORM OF SWINGLINE NOTE                                                                  

 

                                                                                                                  SWINGLINE NOTE                                                                   __________, 20___               FOR VALUE RECEIVED, the undersigned, UBIQUITI INC., a Delaware corporation (the   “Borrower”), promises to pay to WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”),   at the place and times provided in the Credit Agreement referred to below, the principal sum of the unpaid   principal amount of all Swingline Loans made by the Lender from time to time pursuant to that certain   Second Amended and Restated Credit Agreement, dated as of January 17, 2018 (as may be amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among   the Borrower, the Lenders party thereto and Wells Fargo Bank, National Association, as Administrative   Agent.  Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in   the Credit Agreement.          The unpaid principal amount of this Swingline Note from time to time outstanding is payable as  provided in the Credit Agreement and shall bear interest as provided in Section 4.1 of the Credit Agreement.    Swingline Loans refunded as Revolving Credit Loans in accordance with Section 2.2(b) of the Credit   Agreement shall be payable by the Borrower as Revolving Credit Loans pursuant to the Revolving Credit   Notes, and shall not be payable under this Swingline Note as Swingline Loans.  All payments of principal   and interest on this Swingline Note shall be payable in Dollars in immediately available funds as provided   in the Credit Agreement.          This Swingline Note is entitled to the benefits of, and evidences Obligations incurred under, the  Credit Agreement, to which reference is made for a description of the security for this Swingline Note and  for a statement of the terms and conditions on which the Borrower is permitted and required to make  prepayments and repayments of principal of the Obligations evidenced by this Swingline Note and on which  such Obligations may be declared to be immediately due and payable.          THIS SWINGLINE NOTE SHALL BE GOVERNED BY, AND            CONSTRUED IN  ACCORDANCE WITH,    THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO   CONFLICT OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS   OF ANY OTHER JURISDICTION.          The Indebtedness evidenced by this Swingline Note is senior in right of payment to all Subordinated   Indebtedness referred to in the Credit Agreement.          The Borrower hereby waives all requirements as to diligence, presentment, demand of payment,   protest and (except as required by the Credit Agreement) notice of any kind with respect to this Swingline   Note.          This Swingline Note is one of the Notes referred to in the Credit Agreement and may be prepaid in   whole or in part subject to the terms and conditions provided therein.                            [Remainder of page intentionally left blank; signature page follows]      

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this Swingline Note as of the day and  year first above written.                                         UBIQUITI INC.                                                                                                                        By:                                                                         Name:                                                                       Title:                                              

 

                                                                          EXHIBIT A-3                    to  Second Amended and Restated Credit Agreement          dated as of January 17, 2018               by and among                Ubiquiti Inc.,                as Borrower,           the lenders party thereto,                as Lenders,                   and     Wells Fargo Bank, National Association,            as Administrative Agent                                                     FORM OF TERM LOAN NOTE                                         

 

                                                                                                                  TERM LOAN NOTE                                                                   __________, 20___               FOR VALUE RECEIVED, the undersigned, UBIQUITI INC., a Delaware corporation (the   “Borrower”), promises to pay to _______________ (the “Lender”), at the place and times provided in the   Credit Agreement referred to below, the principal sum of the unpaid principal amount of all Term Loans   made by the Lender pursuant to that certain Second Amended and Restated Credit Agreement, dated as of   January 17, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time, the   “Credit Agreement”), by and among the Borrower, the Lenders party thereto and Wells Fargo Bank,   National Association, as Administrative Agent.  Capitalized terms used herein and not defined herein shall   have the meanings assigned thereto in the Credit Agreement.          The unpaid principal amount of this Term Loan Note from time to time outstanding is payable as  provided in the Credit Agreement and shall bear interest as provided in Section 4.1 of the Credit Agreement.    All payments of principal and interest on this Term Loan Note shall be payable in Dollars in immediately   available funds as provided in the Credit Agreement.          This Term Loan Note is entitled to the benefits of, and evidences Obligations incurred under, the  Credit Agreement, to which reference is made for a description of the security for this Term Loan Note and  for a statement of the terms and conditions on which the Borrower is permitted and required to make  prepayments and repayments of principal of the Obligations evidenced by this Term Loan Note and on  which such Obligations may be declared to be immediately due and payable.          THIS TERM LOAN NOTE SHALL BE GOVERNED BY, AND            CONSTRUED IN   ACCORDANCE WITH,   THE  LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO   CONFLICT OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS   OF ANY OTHER JURISDICTION.          The Indebtedness evidenced by this Term Loan Note is senior in right of payment to all   Subordinated Indebtedness referred to in the Credit Agreement.          The Borrower hereby waives all requirements as to diligence, presentment, demand of payment,   protest and (except as required by the Credit Agreement) notice of any kind with respect to this Term Loan   Note.          This Term Loan Note is one of the Notes referred to in the Credit Agreement and may be prepaid   in whole or in part subject to the terms and conditions provided therein.                            [Remainder of page intentionally left blank; signature page follows]      

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this Term Loan Note as of the day and  year first above written.                                         UBIQUITI INC.                                                                                                                        By:                                                                         Name:                                                                       Title:                                                 

 

                                                                                          EXHIBIT B                    to  Second Amended and Restated Credit Agreement          dated as of January 17, 2018               by and among                Ubiquiti Inc.,                as Borrower,           the lenders party thereto,                as Lenders,                   and     Wells Fargo Bank, National Association,            as Administrative Agent                                                   FORM OF NOTICE OF BORROWING                                                   

 

                                                                                                               NOTICE OF BORROWING                                Dated as of: _____________      Wells Fargo Bank, National Association,     as Administrative Agent   MAC D 1109-019   1525 West W.T. Harris Blvd.   Charlotte, North Carolina 28262   Attention:  Syndication Agency Services         Ladies and Gentlemen:            This irrevocable Notice of Borrowing is delivered to you pursuant to Section [2.3][2.7][2.9] of the   Second Amended and Restated Credit Agreement, dated as of January 17, 2018 (as may be amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among   Ubiquiti Inc., a Delaware corporation (the “Borrower”), the Lenders party thereto and Wells Fargo Bank,   National Association, as Administrative Agent.  Capitalized terms used herein and not defined herein shall   have the meanings assigned thereto in the Credit Agreement.          1.    The Borrower hereby requests that the Lenders make [a Revolving Credit Loan][a  Swingline Loan][the Third Amendment Term Loan][an Incremental Term Loan] to the Borrower in the  aggregate principal amount of $___________.  (Complete with an amount in accordance with Section 2.3, 2.7 or 2.9 of   the Credit Agreement, as applicable.)          2.    The Borrower hereby requests that such Loan be made on the following Business Day:  _____________________.  (Complete with a Business Day in accordance with Section 2.3 of the Credit Agreement for   Revolving Credit Loans or Swingline Loans, Section 2.9(a) of the Credit Agreement for the Third Amendment Term Loan or   Section 2.7 for any Incremental Term Loans).          3.    The Borrower hereby requests that such Loan bear interest at the following interest rate,  plus the Applicable Margin, as set forth below:                                                 Interest Period2   Component                                    (LIBOR   of Loan1     Interest Rate                   Rate only)                 [Base Rate or LIBOR Rate]3                  4.    The aggregate principal amount of all Loans and L/C Obligations outstanding as of the date   hereof (including the Loan(s) requested herein) does not exceed the maximum amount permitted to be   outstanding pursuant to the terms of the Credit Agreement.                                                       1 Complete with the Dollar amount of that portion of the overall Loan requested that is to bear interest at the selected   interest rate and/or Interest Period (e.g., for a $20,000,000 loan, $5,000,000 may be requested at Base Rate, $8,000,000   may be requested at LIBOR with an interest period of three months and $7,000,000 may be requested at LIBOR with   an interest period of one month).   2 Can be one (1), two (2), three (3), or six (6) months.   3 Complete with (i) the Base Rate or the LIBOR Rate for Revolving Credit Loans, the Third Amendment Term Loan  or any Incremental Term Loan or (ii) the Base Rate for Swingline Loans.      

 

                                                                                       5.    All of the conditions applicable to the Loan requested herein as set forth in Section 5.2 of  the Credit Agreement have been satisfied as of the date hereof and will remain satisfied to the date of such  Loan.                                [Signature Page Follows]     

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this Notice of Borrowing as of the day  and year first written above.                                         UBIQUITI INC., as Borrower                                                                                                                         By:                                                                         Name:                                                                       Title:                                           

 

                                                                               EXHIBIT C                      to    Second Amended and Restated Credit Agreement            dated as of January 17, 2018                 by and among                  Ubiquiti Inc.,                  as Borrower,             the lenders party thereto,                  as Lenders,                     and       Wells Fargo Bank, National Association,              as Administrative Agent                                               FORM OF NOTICE OF ACCOUNT DESIGNATION                                                  

 

                                                                                                          NOTICE OF ACCOUNT DESIGNATION                                     Dated as of: _________      Wells Fargo Bank, National Association,     as Administrative Agent  MAC D 1109-019  1525 West W.T. Harris Blvd.  Charlotte, North Carolina 28262  Attention:  Syndication Agency Services    Ladies and Gentlemen:           This Notice of Account Designation is delivered to you pursuant to Section 2.3(b) of the Second   Amended and Restated Credit Agreement, dated as of January 17, 2018 (as may be amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Ubiquiti   Inc., a Delaware corporation (the “Borrower”), the Lenders party thereto and Wells Fargo Bank, National   Association, as Administrative Agent.  Capitalized terms used herein and not defined herein shall have the   meanings assigned thereto in the Credit Agreement.          1.    The Administrative Agent is hereby authorized to disburse all Loan proceeds payable to  the Borrower into the following account of the Borrower:                            ____________________________                           Bank Name: ____________                           ABA Routing Number: _________                           Account Number: _____________          2.     This authorization shall remain in effect until revoked or until a subsequent Notice of  Account Designation is provided to the Administrative Agent.                                 [Signature Page Follows]       

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this Notice of Account Designation as of  the day and year first written above.                                         UBIQUITI INC., as Borrower                                                                                                                        By:                                                                         Name:                                                                       Title:                                                                                     

 

                                                                           EXHIBIT D                    to  Second Amended and Restated Credit Agreement          dated as of January 17, 2018               by and among                Ubiquiti Inc.,                as Borrower,           the lenders party thereto,                as Lenders,                   and     Wells Fargo Bank, National Association,            as Administrative Agent                                   FORM OF NOTICE OF PREPAYMENT                                                                                

 

                                                                                                              NOTICE OF PREPAYMENT                                   Dated as of: _____________      Wells Fargo Bank, National Association,     as Administrative Agent  MAC D 1109-019  1525 West W.T. Harris Blvd.  Charlotte, North Carolina 28262  Attention:  Syndication Agency Services    Ladies and Gentlemen:                  This Notice of Prepayment is delivered to you pursuant to Section [2.4(c)][2.11(a)][2.11(b)(v)] of   the Second Amended and Restated Credit Agreement, dated as of January 17, 2018 (as may be amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among   Ubiquiti Inc., a Delaware corporation (the “Borrower”), the Lenders party thereto and Wells Fargo Bank,   National Association, as Administrative Agent.  Capitalized terms used herein and not defined herein shall   have the meanings assigned thereto in the Credit Agreement.          1.    The Borrower hereby provides notice to the Administrative Agent that it shall repay the  following [Base Rate Loans] and/or [LIBOR Rate Loans]: _______________. (Complete with amount(s) in   accordance with Section 2.4 or 2.11 of the Credit Agreement.)          2.    The Loan(s) to be prepaid consist of: [check each applicable box]                     a Swingline Loan                     a Revolving Credit Loan                     the Third Amendment Term Loan                     an Incremental Term Loan          3.    The Borrower shall repay the above-referenced Loan(s) on the following Business Day:   _______________.  (Complete with a date no earlier than (i) the same Business Day as of the date of this Notice of Prepayment   with respect to any Swingline Loan or Base Rate Loan and (ii) three (3) Business Days subsequent to date of this Notice of   Prepayment with respect to any LIBOR Rate Loan.)                                  [Signature Page Follows]       

 

                                                                                       IN WITNESS WHEREOF, the undersigned has executed this Notice of Prepayment as of the day  and year first written above.                                        UBIQUITI INC., as Borrower                                                                                                                      By:                                                                        Name:                                                                      Title:                                        

 

                                                                                   EXHIBIT E                        to      Second Amended and Restated Credit Agreement              dated as of January 17, 2018                   by and among                    Ubiquiti Inc.,                    as Borrower,               the lenders party thereto,                    as Lenders,                       and         Wells Fargo Bank, National Association,                as Administrative Agent                                               FORM OF NOTICE OF CONVERSION/CONTINUATION                                                                                

 

                                                                                                       NOTICE OF CONVERSION/CONTINUATION                                   Dated as of: _____________      Wells Fargo Bank, National Association,     as Administrative Agent  MAC D 1109-019  1525 West W.T. Harris Blvd.  Charlotte, North Carolina 28262  Attention:  Syndication Agency Services    Ladies and Gentlemen:           This irrevocable Notice of Conversion/Continuation (this “Notice”) is delivered to you pursuant to   Section 4.2 of the Second Amended and Restated Credit Agreement, dated as of January 17, 2018 (as may   be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by   and among Ubiquiti Inc., a Delaware corporation (the “Borrower”), the Lenders party thereto and Wells   Fargo Bank, National Association, as Administrative Agent.  Capitalized terms used herein and not defined  herein shall have the meanings assigned thereto in the Credit Agreement.          1.    The Loan to which this Notice relates is [a Revolving Credit Loan] [the Third Amendment   Term Loan] [an Incremental Term Loan] of the Borrower.          2.    This Notice is submitted for the purpose of:  (Check one and complete applicable   information in accordance with the Credit Agreement.)               Converting all or a portion of a Base Rate Loan into a LIBOR Rate Loan                  Outstanding principal balance:                $______________               Principal amount to be converted:              $______________               Requested effective date of conversion:        _______________               Requested new Interest Period:                 _______________                 Converting all or a portion of a LIBOR Rate Loan into a Base Rate Loan                  Outstanding principal balance:                $______________               Principal amount to be converted:              $______________               Last day of the current Interest Period:       _______________               Requested effective date of conversion:        _______________                                  

 

                                                                                              Continuing all or a portion of a LIBOR Rate Loan as a LIBOR Rate Loan                  Outstanding principal balance:                $______________               Principal amount to be continued:              $______________               Last day of the current Interest Period:       _______________               Requested effective date of continuation:      _______________               Requested new Interest Period:                 _______________         3.    The aggregate principal amount of all Loans and L/C Obligations outstanding as of the date  hereof does not exceed the maximum amount permitted to be outstanding pursuant to the terms of the Credit  Agreement.         4.    All of the conditions applicable to the conversion or continuation of a Loan requested  herein as set forth in the Credit Agreement have been satisfied or waived as of the date hereof and will  remain satisfied or waived to the date of such conversion or continuation.                                 [Signature Page Follows]       

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this Notice of Conversion/Continuation  as of the day and year first written above.                                         UBIQUITI INC., as Borrower                                                                                                                        By:                                                                         Name:                                                                       Title:                                           

 

                                                                                 EXHIBIT F                       to     Second Amended and Restated Credit Agreement             dated as of January 17, 2018                  by and among                   Ubiquiti Inc.,                   as Borrower,              the lenders party thereto,                   as Lenders,                      and        Wells Fargo Bank, National Association,               as Administrative Agent                                               FORM OF OFFICER’S COMPLIANCE CERTIFICATE                                   

 

                                                                                                         OFFICER’S COMPLIANCE CERTIFICATE                                Dated as of: _____________            The undersigned, not individually, but solely on behalf of, and in his capacity as the [___________]  of Ubiquiti Inc., a Delaware corporation (the “Borrower”), hereby certifies to the Administrative Agent and   the Lenders, each as defined in the Credit Agreement referred to below, as follows, as of the date hereof:          1.    This certificate is delivered to you pursuant to Section 7.2(a) of the Second Amended and   Restated Credit Agreement, dated as of January 17, 2018 (as may be amended, restated, supplemented or  otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the Lenders   party thereto and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized terms   used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.          2.    I have reviewed the financial statements of the Borrower and its Subsidiaries dated as of  _______________ and for the _______________ period[s] then ended and such statements fairly present  in all material respects the financial condition of the Borrower and its Subsidiaries as of the dates indicated  and the results of their operations and cash flows for the period[s] indicated.          3.    I have reviewed the terms of the Credit Agreement, and the related Loan Documents and  have made, or caused to be made under my supervision, a review in reasonable detail of the transactions  and the condition of the Borrower and its Subsidiaries during the accounting period covered by the financial  statements referred to in Paragraph 2 above.  Such review has not disclosed the existence of any condition   or event that constitutes a Default or an Event of Default, nor do I have any knowledge of the existence of   any such condition or event as at the date of this certificate [except, if such condition or event existed or   exists, describe the nature and period of existence thereof and what action the Borrower and/or its   applicable Subsidiaries has taken, is taking and proposes to take with respect thereto].          4.    As of the date of this certificate, the calculations determining the Consolidated Total  Leverage Ratio, the Consolidated Interest Coverage Ratio and the Applicable Margin are set forth on  Schedules 1 and 2 (in each case, as of the “Statement Date” set forth therein), the Borrower and its   Subsidiaries are in compliance with the financial covenants contained in Section 8.13 of the Credit   Agreement as of the Statement Date reflected in such schedules.          5.    Attached as Schedule 3 hereto is a list of all Immaterial Domestic Subsidiaries and   calculations showing compliance with the definition of Immaterial Domestic Subsidiary.          6.    [Attached as Schedule 4 hereto is a list of all Foreign Subsidiaries that are not Material   Foreign Subsidiaries as of the date of this certificate and calculations showing compliance with the   definition of Material Foreign Subsidiary.]1                                 [Signature Page Follows]                                                               1 Include only with Compliance Certificate accompanying audited financial statements delivered pursuant to Section   7.1(a) of the Credit Agreement.      

 

                                                                                         IN WITNESS WHEREOF, the undersigned has executed this Officer’s Compliance Certificate as  of the day and year first written above.                                   UBIQUITI INC.                                                                                                  By:                                                                   Name:                                                                 Title:                                                                               

 

                                                                                                                   Schedule 1                                        to                            Officer’s Compliance Certificate               For the Quarter/Year ended ______________________ (the “Statement Date”)    A.    Section 8.13(a) - Maximum Consolidated Total Leverage Ratio and Applicable Margin          (I)   Consolidated Total Indebtedness as of the Statement Date: $__________          (II)  Consolidated EBITDA for the period of four (4) consecutive              fiscal quarters ending on or immediately prior to the Statement              Date (see Schedule 2):                          $__________          (III) Line A.(I) divided by Line A.(II) :               ____ to 1.00          (IV) Maximum permitted Consolidated Total Leverage Ratio as set              forth in Section 8.13(a) of the Credit Agreement:  [3.25 to 1.00] 1          (V)   In Compliance?                                       Yes/No          (VI)  Applicable Margin:                              Pricing Level __      B.  Section 8.13(b) – Minimum Consolidated Interest Coverage Ratio          (I)   Consolidated EBITDA for the period of four (4) consecutive              fiscal quarters ending on or immediately prior to the Statement              Date (see Schedule 2):                          $__________          (II)  Consolidated Interest Expense for the period of four (4)               consecutive fiscal quarters ending on or immediately prior              to the Statement Date:                          $__________          (III) Line B.(I) divided by Line B.(II) :               ____ to 1.00          (IV) Minimum permitted Consolidated Interest Coverage Ratio as set              forth in Section 8.13(b) of the Credit Agreement:     3.50 to 1.00          (V)   In Compliance?                                        Yes/No                                                    1 Subject to the Leverage Ratio Increase as defined in Section 8.13(a) of the Credit Agreement.     

 

                                                                                                                                                                            Schedule 2                                                             to                                                 Officer’s Compliance Certificate                                                         Quarter 1       Quarter 2      Quarter 3      Quarter 4        Total      Consolidated EBITDA                          ended           ended          ended          ended       (Quarters 1-4)                                                  __/__/__        __/__/__       __/__/__       __/__/__  (1) Consolidated Net Income for such period                                                                (2) The following amounts,  without duplication, to                                                            the extent deducted in determining Consolidated      Net Income for such period:      (a) income and franchise taxes                                                                             (b) Consolidated Interest Expense                                                                          (c) amortization                                                                                           (d) depreciation                                                                                           (e) other non-cash charges (except to the extent                                                               that such non-cash charges are reserved for          cash charges to be taken in the future)       (f) extraordinary losses (excluding extraordinary                                                              losses from discontinued operations)       (g) non-cash compensation charges, including                                                                   any such charges arising from stock options,          restricted stock grants or other equity-         incentive programs   (3) Line (2)(a) plus Line (2)(b) plus Line (2)(c) plus                                                         Line (2)(d) plus Line (2)(e) plus Line (2)(f) plus      Line (2)(g)  (4) The following amounts, without duplication, to                                                             the extent included in determining Consolidated      Net Income for such period:      (a) interest income                                                                                              

 

                                                                                                                                                                                                             Quarter 1           Quarter 2           Quarter 3         Quarter 4            Total        Consolidated EBITDA                                    ended               ended              ended              ended          (Quarters 1-4)                                                              __/__/__            __/__/__           __/__/__           __/__/__        (b)  any extraordinary gains                                                                                                          (c)    non-cash gains or non-cash items increasing                                                                                         Consolidated Net Income   (5)   Line (4)(a) plus Line (4)(b) plus Line (4)(c)                                                                                   (6)   [Pro Forma Basis Adjustments to Consolidated                                                                                          EBITDA, if applicable1]  (7)   Totals (Line (1) plus Line (3) less Line (5) plus or                                                                                  minus, as applicable, Line (6))                                                            1   “Pro Forma Basis” means, for purposes of calculating Consolidated EBITDA for any period during which one or more Specified Transactions occurs, that such Specified Transaction (and  all other Specified Transactions that have been consummated during the applicable period) shall be deemed to have occurred as of the first day of the applicable period of measurement      (a) excluding all income statement items (whether positive or negative) attributable to the Property or Person that are subject to any such Specified Disposition made during such period;      (b) including all income statement items (whether positive or negative) attributable to the Property or Person acquired pursuant to any such Permitted Acquisition (provided that such income  statement items to be included are reflected in financial statements or other financial data reasonably acceptable to the Administrative Agent and based upon reasonable assumptions and  calculations which are expected to have a continuous impact); and      (c) without duplication of any other adjustments already included in clause (b) above or in the calculation of Consolidated EBITDA for such period, after giving effect to the pro forma  adjustments with respect to such transaction;       provided that in each case any such pro forma adjustments:          (i) are reasonably expected to be realized within twelve (12) months of such transaction as set forth in reasonable detail on a certificate of a Responsible Officer of the Borrower      delivered to the Administrative Agent and           (ii) are calculated on a basis consistent with GAAP and Regulation S-X of the Exchange Act of 1934 (including with respect to pro forma adjustments for public company costs in      connection with the Acquisition of any public company) and           (iii) represent less than 10% of Consolidated EBITDA (determined without giving effect to this clause (iii)).      “Specified Disposition” means any disposition of all or substantially all of the assets or Equity Interests of any Subsidiary of the Borrower or any division, business unit, product line or  line of business.      “Specified Transaction” means (x) any Specified Disposition, (y) any Permitted Acquisition and (z) any other Acquisition made pursuant to Section 8.3(m) of the Credit Agreement.             

 

                                                                                                                                                                    Schedule 3                                                      to                                         Officer’s Compliance Certificate                                                                                            List of Immaterial Domestic Subsidiaries                                                                                                                                                Consolidated                                    Consolidated Assets                                                           % of                           Revenue of        % of                                    of Borrower and its                 Revenue of  Subsidiary      Assets of Subsidiary                 Consolidated                    Borrower and its  Consolidated                                         Domestic                       Subsidiary                                                          Assets                           Domestic        Revenue                                       Subsidiaries                                      Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

 

                                                                                                                                                                    Schedule 4                                                      to                                         Officer’s Compliance Certificate                                                                                            List of Non-Material Foreign Subsidiaries                                                                                                                                                Consolidated                                    Consolidated Assets    % of                                             % of                                                                        Revenue of        Revenue of  Subsidiary      Assets of Subsidiary of Borrower and its Consolidated                                  Consolidated                                                                        Subsidiary     Borrower and its                                       Subsidiaries       Assets                                           Revenue                                                                                         Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

 

                                                                           EXHIBIT G                    to  Second Amended and Restated Credit Agreement          dated as of January 17, 2018               by and among                Ubiquiti Inc.,                as Borrower,           the lenders party thereto,                as Lenders,                   and     Wells Fargo Bank, National Association,            as Administrative Agent                                               FORM OF ASSIGNMENT AND ASSUMPTION                                                                 

 

                                                                                                           ASSIGNMENT AND ASSUMPTION          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective   Date set forth below and is entered into by and between [INSERT NAME OF ASSIGNOR] (the “Assignor”)   and the parties identified on the Schedules hereto and [the] [each]1 Assignee identified on the Schedules  hereto as “Assignee” or as “Assignees” (collectively, the “Assignees” and each, an “Assignee”).  [It is   understood and agreed that the rights and obligations of the Assignees2 hereunder are several and not joint.]3    Capitalized terms used but not defined herein shall have the meanings given to them in the Second Amended   and Restated Credit Agreement identified below (as may be amended, restated, supplemented or otherwise  modified from time to time, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged   by [the] [each] Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are   hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption   as if set forth herein in full.          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the [Assignee]  [respective Assignees], and [the] [each] Assignee hereby irrevocably purchases and assumes from the  Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement,  as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s  rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or  instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified  below of all of such outstanding rights and obligations of the Assignor under the respective facilities  identified below (including without limitation any letters of credit, guarantees, and swingline loans included  in such facilities) and (ii) to the extent permitted to be assigned under Applicable Law, all claims, suits,  causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether  known or unknown, arising under or in connection with the Credit Agreement, any other documents or  instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or  related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims,  statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned  pursuant to clause (i) above (the rights and obligations sold and assigned to [the] [any] Assignee pursuant  to clauses (i) and (ii) above being referred to herein collectively as, [the] [an] “Assigned Interest”).  Each   such sale and assignment is without recourse to the Assignor and, except as expressly provided in this   Assignment and Assumption, without representation or warranty by the Assignor.    1.    Assignor:               [INSERT NAME OF ASSIGNOR]      2.    Assignee(s):           See Schedules attached hereto      3.    Borrower:               Ubiquiti Inc.       4.    Administrative Agent:   Wells Fargo Bank, National Association, as the administrative                                 agent under the Credit Agreement      5.    Credit Agreement:       The Second Amended and Restated Credit Agreement, dated as of                                 January 17, 2018, by and among Ubiquiti Inc., a Delaware                                 corporation, as Borrower, the Lenders party thereto and Wells                                                    1  For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single   Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the second bracketed   language.   2  Select as appropriate.   3  Include bracketed language if there are multiple Assignees.      

 

                                                                                                               Fargo Bank, National Association, as Administrative Agent (as                                amended, restated, supplemented or otherwise modified)    6.     Assigned Interest:     See Schedules attached hereto    [7.   Trade Date:             ______________]4                                                    [Remainder of Page Intentionally Left Blank]                                                       4  To be completed if the Assignor and the Assignees intend that the minimum assignment amount is to be determined  as of the Trade Date.     

 

                                                                                   Effective Date:   _____________ ___, 2____ [TO BE INSERTED BY THE ADMINISTRATIVE AGENT  AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE  REGISTER THEREFOR]   The terms set forth in this Assignment and Assumption are hereby agreed to:                                         ASSIGNOR                                        [NAME OF ASSIGNOR]                                                                                                                                                                By:                                                                         Name:                                        Title:                                                                                                                        ASSIGNEES                                                                                See Schedules attached hereto          

 

                                                                                   [Consented to and]5  Accepted:    WELLS FARGO BANK, NATIONAL ASSOCIATION,  as Administrative Agent, Issuing Lender and Swingline Lender      By:_________________________________  Name:  Title:      [Consented to:]6    UBIQUITI INC.,  as Borrower       By:________________________________  Name:  Title:                                                                5  To be added only if the consent of the Administrative Agent and/or the Swingline Lender and Issuing Lender is   required by the terms of the Credit Agreement.  May also use a Master Consent.   6  To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.  May also use a   Master Consent.      

 

                                                                                                                               SCHEDULE 1                                To Assignment and Assumption   By its execution of this Schedule, the Assignee identified on the signature block below agrees to the terms  set forth in the attached Assignment and Assumption.   Assigned Interests:     Facility Assigned1   Aggregate        Amount of         Percentage    CUSIP Number                       Amount of        Commitment/       Assigned of                      Commitment/      Loans Assigned3    Commitment/                       Loans for all                        Loans 4                        Lenders2                    $                 $                        %                            $                 $                        %                            $                 $                        %                                                          [NAME OF ASSIGNEE]5                                          [and is an Affiliate of [identify Lender]6]                                                                                    By:______________________________                                             Title:                                                          1  Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned  under this Agreement (e.g. “Revolving Credit Commitment”).  2  Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the  Trade Date and the Effective Date.  3  Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the  Trade Date and the Effective Date.  4  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.  5  Add additional signature blocks, as needed.  6  Select as appropriate.     

 

                                                                                                                      ANNEX 1                              to Assignment and Assumption                        STANDARD TERMS AND CONDITIONS FOR                           ASSIGNMENT AND ASSUMPTION          1.    Representations and Warranties.                  1.1   Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and   beneficial owner of [the] [the relevant] Assigned Interest, (ii) [the] [such] Assigned Interest is free and clear  of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all  action necessary, to execute and deliver this Assignment and Assumption and to consummate the  transactions contemplated hereby and (iv) it is [not] a Defaulting Lender; and (b) assumes no responsibility  with respect to (i) any statements, warranties or representations made in or in connection with the Credit  Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,  sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the  Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan  Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or  any other Person of any of their respective obligations under any Loan Document.                1.2.  Assignee[s].  [The] [Each] Assignee (a) represents and warrants that (i) it has full   power and authority, and has taken all action necessary, to execute and deliver this Assignment and   Assumption and to consummate the transactions contemplated hereby and to become a Lender under the   Credit Agreement, (ii) it meets the requirements of an Eligible Assignee under the Credit Agreement   (subject to such consents, if any, as may be required under Section 11.9(b)(iii) of the Credit Agreement),   (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a   Lender thereunder and, to the extent of [the] [the relevant] Assigned Interest, shall have the obligations of   a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented   by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire   [the] [such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of   the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most   recent financial statements delivered pursuant to Section 7.1 thereof, as applicable, and such other   documents and information as it deems appropriate to make its own credit analysis and decision to enter   into this Assignment and Assumption and to purchase [the] [such] Assigned Interest, (vi) it has,  independently and without reliance upon the Administrative Agent or any other Lender and based on such  documents and information as it has deemed appropriate, made its own credit analysis and decision to enter  into this Assignment and Assumption and to purchase [the] [such] Assigned Interest, and (vii) if it is a  Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered  by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the] [such] Assignee;  and (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, [the] [any]  Assignor or any other Lender, and based on such documents and information as it shall deem appropriate  at the time, continue to make its own credit decisions in taking or not taking action under the Loan  Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms  of the Loan Documents are required to be performed by it as a Lender.          2.    Payments.  From and after the Effective Date, the Administrative Agent shall make all   payments in respect of [the] [each] Assigned Interest (including payments of principal, interest, fees and  other amounts) to [the] [the relevant] Assignor for amounts which have accrued to but excluding the  Effective Date and to [the] [the relevant] Assignee for amounts which have accrued from and after the  Effective Date.       

 

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

 

                                                                              EXHIBIT H-1                      to    Second Amended and Restated Credit Agreement            dated as of January 17, 2018                 by and among                  Ubiquiti Inc.,                  as Borrower,             the lenders party thereto,                  as Lenders,                     and       Wells Fargo Bank, National Association,              as Administrative Agent                                               FORM OF U.S. TAX COMPLIANCE CERTIFICATE      (NON-PARTNERSHIP FOREIGN LENDERS)                   

 

                                                                                                         U.S. TAX COMPLIANCE CERTIFICATE         (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)                                                    Reference is hereby made to the Second Amended and Restated Credit Agreement, dated as of  January 17, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time,   the “Credit Agreement”), by and among Ubiquiti Inc., a Delaware corporation, (the “Borrower”), the   Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized   terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.          Pursuant to the provisions of Section 4.11 of the Credit Agreement, the undersigned hereby certifies   that (a) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such   Loan(s)) in respect of which it is providing this certificate, (b) it is not a bank within the meaning of Section   881(c)(3)(A) of the Code, (c) it is not a ten percent (10%) shareholder of the Borrower within the meaning   of Section 881(c)(3)(B) of the Code and (d) it is not a controlled foreign corporation related to the Borrower   as described in Section 881(c)(3)(C) of the Code.          The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its  non-U.S. Person status on IRS Form W-8BEN-E (or any successor form).  By executing this certificate, the  undersigned agrees that (a) if the information provided on this certificate changes, the undersigned shall  promptly so inform the Borrower and the Administrative Agent and (b) the undersigned shall have at all  times furnished the Borrower and the Administrative Agent with a properly completed and currently  effective certificate in either the calendar year in which each payment is to be made to the undersigned, or  in either of the two (2) calendar years preceding such payments.     [NAME OF LENDER]     By:                                             Name:         Title:      Date: ________ __, 20__              

 

                                                                              EXHIBIT H-2                      to    Second Amended and Restated Credit Agreement            dated as of January 17, 2018                 by and among                  Ubiquiti Inc.,                  as Borrower,             the lenders party thereto,                  as Lenders,                     and       Wells Fargo Bank, National Association,              as Administrative Agent                                               FORM OF U.S. TAX COMPLIANCE CERTIFICATE    (NON-PARTNERSHIP FOREIGN PARTICIPANTS)                   

 

                                                                                                         U.S. TAX COMPLIANCE CERTIFICATE        (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)                                                    Reference is hereby made to the Second Amended and Restated Credit Agreement, dated as of  January 17, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time,  the “Credit Agreement”), by and among Ubiquiti Inc., a Delaware corporation (the “Borrower”), the   Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized   terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.          Pursuant to the provisions of Section 4.11 of the Credit Agreement, the undersigned hereby certifies   that (a) it is the sole record and beneficial owner of the participation in respect of which it is providing this   certificate, (b) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (c) it is not a ten   percent (10%) shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (d)   it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the   Code.          The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person   status on IRS Form W-8BEN-E (or any successor form).  By executing this certificate, the undersigned  agrees that (a) if the information provided on this certificate changes, the undersigned shall promptly so  inform such Lender in writing and (b) the undersigned shall have at all times furnished such Lender with a  properly completed and currently effective certificate in either the calendar year in which each payment is  to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.                    [NAME OF PARTICIPANT]     By:                                             Name:         Title:      Date: ________ __, 20__                

 

                                                                              EXHIBIT H-3                      to    Second Amended and Restated Credit Agreement            dated as of January 17, 2018                 by and among                  Ubiquiti Inc.,                  as Borrower,             the lenders party thereto,                  as Lenders,                     and       Wells Fargo Bank, National Association,              as Administrative Agent                                               FORM OF U.S. TAX COMPLIANCE CERTIFICATE      (FOREIGN PARTICIPANT PARTNERSHIPS)                                  

 

                                                                                                         U.S. TAX COMPLIANCE CERTIFICATE         (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)                                                    Reference is hereby made to the Second Amended and Restated Credit Agreement, dated as of  January 17, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time,  the “Credit Agreement”), by and among Ubiquiti Inc., a Delaware corporation, (the “Borrower”), the   Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized   terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.          Pursuant to the provisions of Section 4.11 of the Credit Agreement, the undersigned hereby certifies   that (a) it is the sole record owner of the participation in respect of which it is providing this certificate, (b)   its direct or indirect partners/members are the sole beneficial owners of such participation, (c) with respect   such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank   extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business   within the meaning of Section 881(c)(3)(A) of the Code, (d) none of its direct or indirect partners/members   is a ten percent (10%) shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code   and (e) none of its direct or indirect partners/members is a controlled foreign corporation related to the   Borrower as described in Section 881(c)(3)(C) of the Code.          The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by  one of the following forms from each of its partners/members that is claiming the portfolio interest  exemption: (a) an IRS Form W-8BEN-E (or any successor form), or (b) an IRS Form W-8IMY  accompanied by an IRS Form W-8BEN-E (or any successor form), from each of such partner’s/member’s  beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the  undersigned agrees that (i) if the information provided on this certificate changes, the undersigned shall  promptly so inform such Lender and (ii) the undersigned shall have at all times furnished such Lender with  a properly completed and currently effective certificate in either the calendar year in which each payment  is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.                   [NAME OF PARTICIPANT]     By:                                             Name:         Title:      Date: ________ __, 20__       

 

                                                                              EXHIBIT H-4                      to    Second Amended and Restated Credit Agreement            dated as of January 17, 2018                 by and among                  Ubiquiti Inc.,                  as Borrower,             the lenders party thereto,                  as Lenders,                     and       Wells Fargo Bank, National Association,              as Administrative Agent                                FORM OF U.S. TAX COMPLIANCE CERTIFICATE        (FOREIGN LENDER PARTNERSHIPS)                   

 

                                                                                                         U.S. TAX COMPLIANCE CERTIFICATE           (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)                                                    Reference is hereby made to the Second Amended and Restated Credit Agreement, dated as of  January 17, 2018 (as may be amended, restated, supplemented or otherwise modified from time to time,  the “Credit Agreement”), by and among Ubiquiti Inc., a Delaware corporation, (the “Borrower”), the   Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent.  Capitalized   terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement.          Pursuant to the provisions of Section 4.11 of the Credit Agreement, the undersigned hereby certifies   that (a) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect   of which it is providing this certificate, (b) its direct or indirect partners/members are the sole beneficial   owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (c) with respect to the extension   of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any   of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered  into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,  (d) none of its direct or indirect partners/members is a ten percent (10%) shareholder of the Borrower within   the meaning of Section 881(c)(3)(B) of the Code and (e) none of its direct or indirect partners/members is   a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.          The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W- 8IMY accompanied by one of the following forms from each of its partners/members that is claiming the  portfolio interest exemption: (a) an IRS Form W-8BEN-E (or any successor form), or (b) an IRS Form W- 8IMY accompanied by an IRS Form W-8BEN-E (or any successor form), from each of such  partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this  certificate, the undersigned agrees that (i) if the information provided on this certificate changes, the  undersigned shall promptly so inform the Borrower and the Administrative Agent and (ii) the undersigned  shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and  currently effective certificate in either the calendar year in which each payment is to be made to the  undersigned, or in either of the two (2) calendar years preceding such payments.                  [NAME OF LENDER]     By:                                             Name:         Title:      Date: ________ __, 20__

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