Document:

Exhibit 4.3

 

EXECUTION VERSION

 

 

PURCHASE CONTRACT AGREEMENT

 

Dated as of June 21, 2016

 

Between

 

DYNEGY INC.

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

 

as Purchase Contract Agent

 

and as Trustee under the Indenture referred to herein

 

 

 

TABLE OF CONTENTS

 

	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I   DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
    	
1
    
	
 
    	
 
    
	
Section 1.01.   Definitions
    	
1
    
	
Section 1.02.   Compliance Certificates and Opinions
    	
11
    
	
Section 1.03.   Form of Documents Delivered
    	
11
    
	
Section 1.04. Acts   of Holders; Record Dates
    	
12
    
	
Section 1.05.   Notices
    	
13
    
	
Section 1.06.   Effect of Headings and Table of Contents
    	
13
    
	
Section 1.07.   Successors and Assigns
    	
13
    
	
Section 1.08.   Separability Clause
    	
13
    
	
Section 1.09.   Benefits of Agreement
    	
14
    
	
Section 1.10.   Governing Law
    	
14
    
	
Section 1.11.   Conflicts with Indenture
    	
14
    
	
Section 1.12.   Legal Holidays
    	
14
    
	
Section 1.13.   Counterparts
    	
14
    
	
Section 1.14.   Inspection of Agreement
    	
14
    
	
Section 1.15.   Waiver of Jury Trial
    	
14
    
	
Section 1.16.   Force Majeure
    	
14
    
	
Section 1.17.   Calculations
    	
15
    
	
Section 1.18. UCC
    	
15
    
	
 
    	
 
    
	
ARTICLE II UNIT   AND PURCHASE CONTRACT FORMS
    	
15
    
	
 
    	
 
    
	
Section 2.01.   Forms of Units and Purchase Contracts Generally
    	
15
    
	
Section 2.02.   Form of Certificate of Authentication
    	
16
    
	
Section 2.03.   Global Securities; Separation of Units
    	
16
    
	
Section 2.04.   Recreation of Units
    	
17
    
	
 
    	
 
    
	
ARTICLE III THE   UNITS AND PURCHASE CONTRACTS
    	
17
    
	
 
    	
 
    
	
Section 3.01.   Amount and Denominations
    	
17
    
	
Section 3.02.   Rights and Obligations Evidenced by the Equity-Linked Securities
    	
17
    
	
Section 3.03.   Execution, Authentication, Delivery and Dating
    	
18
    
	
Section 3.04.   Temporary Equity-Linked Securities
    	
18
    
	
Section 3.05.   Registration; Registration of Transfer and Exchange
    	
19
    
	
Section 3.06.   Book-Entry Interests
    	
20
    
	
Section 3.07.   Notices to Holders
    	
20
    
	
Section 3.08.   Appointment of Successor Depositary
    	
20
    
	
Section 3.09.   Definitive Securities
    	
20
    
	
Section 3.10.   Mutilated, Destroyed, Lost and Stolen Securities
    	
21
    
	
Section 3.11.   Persons Deemed Owners
    	
22
    
	
Section 3.12.   Cancellation
    	
23
    
	
 
    	
 
    
	
ARTICLE IV   SETTLEMENT OF THE PURCHASE CONTRACTS
    	
23
    
	
 
    	
 
    
	
Section 4.01.   Settlement Amount
    	
23
    
	
Section 4.02.   Representations and Agreements of Holders and Beneficial Owners
    	
24
    
	
Section 4.03.   Delivery Upon Settlement of the Purchase Contracts
    	
24
    
	
Section 4.04.   Early Settlement
    	
26
    
	
Section 4.05. No   Fractional Shares
    	
27
    
	
Section 4.06.   Acceleration of the Mandatory Settlement Date
    	
27
    
	
Section 4.07.   Early Mandatory Settlement at the Company’s election
    	
27
    
	
Section 4.08. Acquisition   Termination Redemption
    	
28
    

 

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ARTICLE V   ADJUSTMENTS
    	
30
    
	
 
    	
 
    
	
Section 5.01.   Adjustments to the Fixed Settlement Rates
    	
30
    
	
Section 5.02.   Early Settlement Upon a Fundamental Change
    	
40
    
	
Section 5.03.   Adjustments of Prices
    	
42
    
	
Section 5.04. Tax   Withholding
    	
42
    
	
 
    	
 
    
	
ARTICLE VI   REMEDIES
    	
42
    
	
 
    	
 
    
	
Section 6.01.   Unconditional Right of Holders to Receive Shares of Common Stock
    	
42
    
	
Section 6.02.   Limitation on Proceedings
    	
42
    
	
Section 6.03. Restoration   of Rights and Remedies
    	
42
    
	
Section 6.04.   Rights and Remedies Cumulative
    	
43
    
	
Section 6.05.   Delay or Omission Not Waiver
    	
43
    
	
Section 6.06.   Undertaking for Costs
    	
43
    
	
Section 6.07.   Waiver of Stay or Execution Laws
    	
43
    
	
Section 6.08.   Control by Majority
    	
43
    
	
 
    	
 
    
	
ARTICLE VII THE   PURCHASE CONTRACT AGENT AND TRUSTEE
    	
44
    
	
 
    	
 
    
	
Section 7.01.   Certain Duties and Responsibilities
    	
44
    
	
Section 7.02.   Notice of Default
    	
44
    
	
Section 7.03.   Certain Rights of the Purchase Contract Agent
    	
45
    
	
Section 7.04. Not Responsible   for Recitals
    	
46
    
	
Section 7.05.   May Hold Units and Purchase Contracts
    	
46
    
	
Section 7.06.   Money Held in Custody
    	
47
    
	
Section 7.07.   Compensation, Reimbursement and Indemnification
    	
47
    
	
Section 7.08.   Corporate Purchase Contract Agent Required; Eligibility
    	
47
    
	
Section 7.09.   Resignation and Removal; Appointment of Successor
    	
47
    
	
Section 7.10.   Acceptance of Appointment by Successor
    	
48
    
	
Section 7.11.   Merger; Conversion; Consolidation or Succession to Business
    	
49
    
	
Section 7.12.   Preservation of Information; Communications to Holders
    	
49
    
	
Section 7.13. No   Other Obligations of Purchase Contract Agent or Trustee
    	
49
    
	
Section 7.14. Tax   Compliance
    	
50
    
	
 
    	
 
    
	
ARTICLE VIII   SUPPLEMENTAL AGREEMENTS
    	
50
    
	
 
    	
 
    
	
Section 8.01.   Supplemental Agreements Without Consent of Holders
    	
50
    
	
Section 8.02.   Supplemental Agreements With Consent of Holders
    	
50
    
	
Section 8.03.   Execution of Supplemental Agreements
    	
51
    
	
Section 8.04.   Effect of Supplemental Agreements
    	
51
    
	
Section 8.05.   Reference to Supplemental Agreements
    	
51
    
	
Section 8.06. Notice   of Supplemental Agreements
    	
52
    
	
 
    	
 
    
	
ARTICLE IX   CONSOLIDATION, MERGER, SALE OR CONVEYANCE
    	
52
    
	
 
    	
 
    
	
Section 9.01.   Covenant Not to Consolidate or Merge, Convey, Transfer or Lease Property   Except Under Certain Conditions
    	
52
    
	
Section 9.02.   Rights and Duties of Successor Entity
    	
52
    
	
Section 9.03.   Officer’s Certificate and Opinion of Counsel Given to Purchase Contract Agent
    	
53
    
	
 
    	
 
    
	
ARTICLE X   COVENANTS OF THE COMPANY
    	
53
    
	
 
    	
 
    
	
Section 10.01.   Performance Under Purchase Contracts
    	
53
    
	
Section 10.02.   Maintenance of Office or Agency
    	
53
    

 

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Section 10.03.   Annual Statement
    	
53
    
	
Section 10.04.   Existence
    	
54
    
	
Section 10.05.   Company to Reserve Common Stock
    	
54
    
	
Section 10.06.   Covenants as to Common Stock
    	
54
    

 

EXHIBITS

 

	
EXHIBIT A -   Form of Unit
    	
A-1
    
	
 
    	
 
    
	
EXHIBIT B -   Form of Purchase Contract
    	
B-1
    

 

iii

 

PURCHASE CONTRACT AGREEMENT, dated as of June 21, 2016, between Dynegy Inc., a Delaware corporation (the “Company”), and Wilmington Trust, National Association, a national banking association, acting as Purchase Contract Agent (as defined herein) and attorney-in-fact for the Holders (as defined herein) of Purchase Contracts (as defined herein) from time to time and as Trustee (as defined herein).

 

RECITALS OF THE COMPANY

 

The Company has duly authorized the execution and delivery of this Purchase Contract Agreement and the Units (as defined herein) and Purchase Contracts issuable hereunder.

 

All things necessary to make the Units and Purchase Contracts, when such are executed by the Company and authenticated on behalf of the Holders and delivered by the Purchase Contract Agent, as provided in this Purchase Contract Agreement, the valid obligations of the Company and to constitute this Purchase Contract Agreement a valid agreement of the Company, in accordance with its terms, have been done. For and in consideration of the premises and the purchase of the Units (including the constituent parts thereof) by the Holders thereof, it is mutually agreed as follows:

 

ARTICLE I
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.   Definitions

 

For all purposes of this Purchase Contract Agreement, except as otherwise expressly provided or unless the context otherwise requires:

 

(a)           the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular, and nouns and pronouns of the masculine gender include the feminine and neuter genders;

 

(b)           all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States;

 

(c)           the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Purchase Contract Agreement as a whole and not to any particular Article, Section, Exhibit or other subdivision;

 

(d)           “or” is not exclusive; and

 

(e)           the following terms have the meanings given to them in this Section 1.01(e):

 

“Acceleration Date” has the meaning set forth in Section 4.06.

 

“Acquisition Agreement” means that certain acquisition agreement, dated as of February 24, 2016, among Atlas Power Finance, LLC, a newly formed Delaware limited liability company, which is a wholly owned subsidiary of Atlas Power, LLC, 65% indirectly owned by the Company and 35% owned by an affiliated investment fund of ECP, entered into with GDF SUEZ Energy North America, Inc. and International Power, S.A., an indirect subsidiary of ENGIE S.A., as amended or supplemented.

 

“Acquisition Redemption Notice” has the meaning set forth in Section 4.08(a).

 

“Acquisition Redemption Rate” has the meaning set forth in Section 4.08(d).

 

“Acquisition Redemption Settlement Date” means, with respect to any Acquisition Termination Redemption: (i) if (x) the Acquisition Termination Stock Price is greater than the Reference Price and (y) the Company elects to pay cash in lieu of any or all shares of Common Stock that would otherwise be included in the Redemption Amount, the third Business Day following the last Trading Day of the 20 consecutive Trading Day

 

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period used to determine the Redemption Market Value; or (ii) otherwise, the Scheduled Acquisition Redemption Settlement Date specified in the Acquisition Redemption Notice.

 

“Acquisition Termination Redemption” has the meaning set forth in Section 4.08(a).

 

“Acquisition Termination Stock Price” means the average of the Closing Prices of the Common Stock over the 20 consecutive Trading Day Period ending on, and including, the date the Company provides the Acquisition Redemption Notice.

 

“Act” has the meaning, with respect to any Holder, set forth in Section 1.04(a).

 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Applicable Procedures” means, with respect to any matter at any time, the policies and procedures of a Depositary, if any, that are applicable to such matter at such time.

 

“Applicants” has the meaning set forth in Section 7.12(b).

 

“Averaging Period” has the meaning specified in Section 5.01(a)(v).

 

“Bankruptcy Event” means the occurrence of one or more of the following events:

 

(i) a decree or order by a court having jurisdiction in the premises shall have been entered adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization of the Company under any Bankruptcy Law and if such decree or order shall have been entered more than 60 days prior to the last VWAP Trading Day of the Observation Period, such decree or order shall have continued undischarged and unstayed for a period of 60 days;

 

(ii) a decree or order by a court having jurisdiction in the premises for the appointment of a receiver or liquidator or trustee or assignee (or other similar official) in bankruptcy or insolvency of the Company or of all or substantially all of its property, or for the winding up or liquidation of its affairs, shall have been entered and if such decree or order shall have been entered more than 60 days prior to the last VWAP Trading Day of the Observation Period, such decree or order shall have continued undischarged and unstayed for a period of 60 days; or

 

(iii) the Company shall institute proceedings to be adjudicated a voluntary bankrupt, or shall consent to the filing of a bankruptcy proceeding against it, or shall file a petition or answer or consent seeking reorganization under any Bankruptcy Law, or shall consent to the filing of any such petition, or shall consent to the appointment of a receiver or liquidator or trustee or assignee (or other similar official) in bankruptcy or insolvency of it or of its property, or shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due.

 

“Bankruptcy Law” means title 11 of the United States Code, as amended, or any similar foreign, federal or state law for the relief of debtors.

 

“Base Indenture” means the indenture, dated as of June 21, 2016, between the Company and the Trustee (including any provisions of the TIA that are deemed incorporated therein).

 

“Beneficial Owner” means, with respect to a Book-Entry Interest, a Person who is the beneficial owner of such Book-Entry Interest as reflected on the books of the Depositary or on the books of a Person maintaining an account with the Depositary (directly as a Depositary Participant or as an indirect participant, in each case in accordance with the rules of the Depositary).

 

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“Board of Directors” means the board of directors of the Company.

 

“Board Resolution” means a copy of a resolution or resolutions certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification and delivered to the Purchase Contract Agent.

 

“Book-Entry Interest” means a beneficial interest in a Global Security, registered in the name of a Depositary or a nominee thereof, ownership and transfers of which shall be maintained and made through book entries by such Depositary as described in Section 3.06.

 

“Business Day” means any day other than a Saturday, Sunday or a day on which the Federal Reserve Bank of New York is authorized or required by law or executive order to close or be closed.

 

“Capital Stock” means

 

(i) in the case of a corporation, corporate stock;

 

(ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

 

(iii) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and

 

(iv) 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, but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.

 

“Clearing Agency” means an organization registered as a “Clearing Agency” pursuant to Section 17A of the Exchange Act.

 

“Close of Business” means 5:00 p.m., New York City time.

 

“Closing Price” with respect to the Common Stock, means on any Trading Day, the closing sale price per share of the Common Stock (or if no closing sale price is reported, the average of the last bid and last ask prices or, if more than one in either case, the average of the average last bid and the average last ask prices) on that Trading Day as reported in composite transactions for the principal U.S. national or regional securities exchange on which the Common Stock is traded.  If the Common Stock is not listed for trading on a U.S. national or regional securities exchange on the relevant Trading Day, the “Closing Price” will be the last quoted bid price for the Common Stock in the over the counter market on the relevant date as reported by OTC Markets Group Inc. or a similar organization.  If the Common Stock is not so quoted, the “Closing Price” will be the average of the midpoint of the last bid and last ask prices for the Common Stock on the relevant Trading Day from each of at least three nationally recognized independent investment banking firms selected by the Company for this purpose, which may include one or more of the Underwriters. Any such determination will be conclusive absent manifest error.

 

“Code” means the Internal Revenue Code of 1986 (title 26 of the United States Code), as amended from time to time.

 

“Common Equity” of any Person means Capital Stock of such Person that is generally entitled (a) to vote in the election of directors of such Person or (b) if such Person is not a corporation, to vote or otherwise participate in the selection of governing body, parties, managers or others that will conduct the management or policies of such Person.

 

“Common Stock” means the common stock, par value $0.01 per share, of the Company, subject to Section 5.01(e).

 

3

 

“Company” means the Person named as the “Company” in the first paragraph of this Purchase Contract Agreement until a successor shall have become such pursuant to the applicable provision of this Purchase Contract Agreement, and thereafter “Company” shall mean such successor.

 

“Component Note” means a Note, in global form and attached to a Global Unit, that (i) shall evidence the number of Notes specified therein that are components of the Units evidenced by such Global Unit, (ii) shall be registered on the Security Register for the Notes in the name of the Purchase Contract Agent, as attorney-in-fact of holder(s) of the Units of which such Notes form a part, and (iii) shall be held by the Purchase Contract Agent as attorney-in-fact of such holder(s), together with such Global Unit, as custodian of such Global Unit for the Depositary.

 

“Component Purchase Contract” means a Purchase Contract, in global form and attached to a Global Unit, that (i) shall evidence the number of Purchase Contracts specified therein that are components of the Units evidenced by such Global Unit, (ii) shall be registered on the Security Register in the name of the Purchase Contract Agent, as attorney-in-fact of holder(s) of the Units of which such Purchase Contract forms a part, and (iii) shall be held by the Purchase Contract Agent as attorney-in-fact of such holder(s), together with such Global Unit, as custodian of such Global Unit for the Depositary.

 

“Corporate Trust Office” means the principal corporate trust office of the Purchase Contract Agent at which, at any particular time, its corporate trust business shall be administered, which office at the date hereof is located at Wilmington Trust, National Association, Attn: Corporate Trust Officer, 15950 N. Dallas Parkway, Suite 550, Dallas, Texas 75248.

 

“Daily Settlement Amount” has the meaning set forth in Section 4.01.

 

“Daily VWAP” means, for any Trading Day, the per share volume weighted average price as displayed under the heading “Bloomberg VWAP” on the Bloomberg page “DYN<equity> AQR” (or its equivalent successor if such page is not available) in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such Trading Day (or if such volume weighted average price is unavailable, the market value of one share of Common Stock on such Trading Day determined, using a volume weighted average method, by a nationally recognized independent investment banking firm retained for this purpose by the Company, which may include the Underwriters). The “Daily VWAP” will be determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours.

 

“Definitive Equity-Linked Security” means an Equity-Linked Security in definitive form.

 

“Definitive Security” means any Security in definitive form.

 

“Depositary” means a Clearing Agency that is acting as a depositary for the Equity-Linked Securities and in whose name, or in the name of a nominee of that organization, shall be registered one or more Global Securities and which shall undertake to effect book-entry transfers of the Equity-Linked Securities as contemplated by Section 3.06, Section 3.07, Section 3.08 and Section 3.09.

 

“Depositary Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time the Depositary effects book-entry transfers of securities deposited with the Depositary.

 

“Determination Date” means each of (i) in the case of a settlement of Purchase Contracts on the Mandatory Settlement Date the last VWAP Trading Day of Observation Period, (ii) any Early Settlement Exercise Date, (iii) any Fundamental Change Early Settlement Date, (iv) any Acceleration Date and (v) any Early Mandatory Relevant Date.

 

“DTC” means The Depository Trust Company.

 

“DWAC System” has the meaning set forth in Section 2.03(a).

 

4

 

“Early Mandatory Relevant Date” has the meaning set forth in Section 4.07(a).

 

“Early Mandatory Settlement” has the meaning set forth in Section 4.07(a).

 

“Early Mandatory Settlement Date” has the meaning set forth in Section 4.07(a).

 

“Early Mandatory Settlement Notice” has the meaning set forth in Section 4.07(b).

 

“Early Mandatory Settlement Notice Date” has the meaning set forth in Section 4.07(a).

 

“Early Mandatory Settlement Rate” has the meaning set forth in Section 4.07(a).

 

“Early Mandatory Settlement Right” has the meaning set forth in Section 4.07(a).

 

“Early Settlement” has the meaning set forth in Section 4.04(a).

 

“Early Settlement Exercise Date” has the meaning set forth in Section 4.04(b).

 

“Early Settlement Notice” has the meaning set forth in Section 4.04(b).

 

“Early Settlement Rate” for each Purchase Contract means the Minimum Settlement Rate in effect immediately prior to Close of Business on the Early Settlement Exercise Date, unless the Holder elects to settle such Purchase Contract in connection with a Fundamental Change, in which case such Holder shall receive upon settlement of such Purchase Contract a number of shares of Common Stock (or, if applicable, Reference Property) based on the Fundamental Change Early Settlement Rate in effect immediately prior to Close of Business on the Early Settlement Exercise Date.

 

“Effective Date” has the meaning set forth in Section 5.02(c).

 

“Equity-Linked Security” means a Unit or a Purchase Contract, as applicable.

 

“Ex-Dividend Date” means, with respect to any issuance, dividend or distribution on shares of the Common Stock, the first date on which shares of Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such issuance, dividend or distribution.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any statute successor thereto, in each case as amended from time to time, together with the rules and regulations promulgated thereunder.

 

“Expiration Date” has the meaning set forth in Section 1.04(e).

 

“Fair Market Value” means the fair market value as determined in good faith by the Board of Directors, or a committee thereof, whose determination shall be conclusive and set forth in a Board Resolution.

 

“First Supplemental Indenture” means the first supplemental indenture, dated as of June 21, 2016, between the Company and the Trustee, pursuant to which the Notes will be issued.

 

“Fixed Settlement Rate” means either the Maximum Settlement Rate or the Minimum Settlement Rate, or both, as applicable.

 

“Fundamental Change” shall be deemed to occur at the time after the Issue Date when any of the following occurs:

 

(i) a “person” or “group” (as those terms are used in Section 13(d) of the Exchange Act, other than the Company, any of its Subsidiaries, any employee benefit plan of the Company’s or any of its Subsidiaries and any Person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of such plan) becomes the

 

5

 

“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of more than 50% of the Company’s Capital Stock that is at the time entitled to vote in the election of the Company’s Board of Directors;

 

(ii) the consummation of (A) any recapitalization, reclassification or change of Common Stock (other than changes resulting from a subdivision or combination) as a result of which the Common Stock would be converted into, or exchanged for, stock, other securities, other property or assets; (B) any share exchange, consolidation, or merger of the Company pursuant to which the Common Stock will be converted into, or exchanged for, cash, securities or other property; or (C) any sale, lease or other transfer in one transaction or a series of related transactions, of all or substantially all of the property and assets of the Company and its Subsidiaries, taken as a whole, to any person other than one of the Company’s Subsidiaries; provided, however, that a transaction described in clause (B) in which the holders of all classes of the Company’s Common Equity immediately prior to such transaction own, directly or indirectly, more than 50% of all classes of Common Equity of the continuing or surviving corporation or transferee or the parent thereof immediately after such transaction in substantially the same proportions as such ownership immediately prior to such transaction shall not be a Fundamental Change pursuant to this clause (ii); or

 

(iii) the Common Stock (or other common stock deliverable upon settlement of a Holder’s Purchase Contract) ceases to be listed on any of the NYSE, the NASDAQ Global Market or the NASDAQ Global Select Market (or their respective successors).

 

Notwithstanding the foregoing, a transaction or series of related transactions described in clause (ii) above shall not constitute a Fundamental Change if at least 90.0% of the consideration received or to be received by the holders of the Common Stock (excluding cash payments for fractional shares and cash payments made pursuant to dissenters’ appraisal rights) in connection with such transaction or transactions consists of shares of common stock that are listed or quoted on the NYSE, the NASDAQ Global Market or the NASDAQ Global Select Market (or any of their respective successors), or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions and as a result of such transaction or transactions, such consideration will constitute Reference Property pursuant to Section 5.01(e). In addition, a transaction or event that constitutes a Fundamental Change under both clauses (i) and clause (ii) above will be deemed to constitute a Fundamental Change solely under clause (ii).

 

“Fundamental Change Early Settlement Date” has the meaning set forth in Section 5.02(a).

 

“Fundamental Change Early Settlement Period” has the meaning set forth in Section 5.02(a)

 

“Fundamental Change Early Settlement Rate” has the meaning set forth in Section 5.02(c).

 

“Fundamental Change Early Settlement Right” has the meaning set forth in Section 5.02(a).

 

“Global Note” means a Note, as defined in the Indenture, in global form that (i) shall evidence the number of Separate Notes specified therein, (ii) shall be registered on the security register for the Notes in the name of the Depositary or its nominee, and (iii) shall be held by the Trustee as custodian for the Depositary.

 

“Global Purchase Contract” means a Purchase Contract in global form that (i) shall evidence the number of Separate Purchase Contracts specified therein, (ii) shall be registered on the Security Register in the name of the Depositary or its nominee and (iii) shall be held by the Purchase Contract Agent as custodian for the Depositary.

 

“Global Security” means a Global Unit, a Global Purchase Contract or a Global Note, as applicable.

 

“Global Unit” means a Unit in global form that (i) shall evidence the number of Units specified therein, (ii) shall be registered on the Security Register in the name of the Depositary or its nominee, (iii) shall include, as attachments thereto, a Component Note and a Component Purchase Contract, evidencing, respectively, a number of Notes and a number of Purchase Contracts, in each case, equal to the number of Units evidenced by such Unit in global form, and (iv) shall be held by the Purchase Contract Agent as custodian for the Depositary.

 

6

 

“Holder” means, with respect to a Unit or Purchase Contract, the Person in whose name the Unit or Purchase Contract, as the case may be, is registered in the Security Register, and with respect to a Note, the Person in whose name the Note is registered as provided for in the Indenture;  provided, however, that in determining whether the Holders of the requisite number of Units or Purchase Contracts, as the case may be, have voted on any matter, then for the purpose of such determination only (and not for any other purpose hereunder), if the Units or Purchase Contracts, as the case may be, remain in the form of one or more Global Securities and if the Depositary that is the registered holder of such Global Security has sent an omnibus proxy assigning voting rights to the Depositary Participants to whose accounts the Units or Purchase Contracts, as the case may be, are credited on the related record date, the term “Holder” shall mean such Depositary Participant acting at the direction of the Beneficial Owners.

 

“Indenture” means the Base Indenture, as supplemented by the First Supplemental Indenture.

 

“Issue Date” means June 21, 2016.

 

“Issuer Free Writing Prospectus” means the Issuer Free Writing Prospectus filed with the Securities and Exchange Commission by the Company and dated June 16, 2016, relating to the offering of the Units.

 

“Issuer Order” or “Issuer Request” means a written order or request signed in the name of the Company by its Chairman of the Board of Directors, its President, one of its Vice Presidents, or its Treasurer, and delivered to the Purchase Contract Agent or the Trustee.

 

“Mandatory Settlement” has the meaning set forth in Section 4.01.

 

“Mandatory Settlement Date” means the Scheduled Mandatory Settlement Date, subject to acceleration pursuant to Section 4.06; provided that, if one or more of the 20 consecutive VWAP Trading Days of the Observation Period is not a VWAP Trading Day, the “Mandatory Settlement Date” shall be postponed until the third Scheduled Trading Day immediately following the last VWAP Trading Day of the Observation Period.

 

“Market Disruption Event” means, if the Common Stock is listed for trading on the NYSE or listed on another U.S. national or regional securities exchange, the occurrence or existence during the one half hour period ending on the scheduled close of trading on any Trading Day of any material suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or futures contracts relating to the Common Stock.

 

“Maximum Settlement Rate” has the meaning set forth in Section 4.01.

 

“Merger Event” has the meaning set forth in Section 5.01(e).

 

“Minimum Settlement Rate” has the meaning set forth in Section 4.01.

 

“Notes” means the series of notes designated as the 7.00% Senior Amortizing Notes due July 1, 2019 to be issued by the Company under the Indenture, and “Note” means each note of such series having an initial principal amount of $18.94911.

 

“NYSE” means the New York Stock Exchange.

 

“Observation Period” means the 20 consecutive VWAP Trading Day period beginning on, and including, the 22nd Scheduled Trading Day immediately preceding the Scheduled Mandatory Settlement Date.

 

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“Officer’s Certificate” means a certificate signed by any of the Chairman of the Board of Directors, the President, any Vice Chairman of the Board of Directors, any Vice President, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Secretary of the Company. Each such certificate shall include the statements provided for in Section 1.02 if and to the extent required by the provisions of such Section.

 

“Open of Business” means 9:00 a.m., New York City time.

 

“Opinion of Counsel” means a written opinion of counsel, who may be counsel to the Company (and who may be an employee of the Company), and who shall be reasonably acceptable to the Purchase Contract Agent or Trustee, as applicable.  Each such Opinion of Counsel shall include the statements provided for in Section 1.02 if and to the extent required by the provisions of such Section.

 

“Outstanding Purchase Contracts” means, as of the date of determination, all Purchase Contracts theretofore executed, authenticated on behalf of the Holders and delivered under this Purchase Contract Agreement (including, for the avoidance of doubt, Purchase Contracts held as a component of Units and Separate Purchase Contracts), except:

 

(i)                                     Purchase Contracts theretofore cancelled by the Purchase Contract Agent or delivered to the Purchase Contract Agent for cancellation or deemed cancelled pursuant to the provisions of this Purchase Contract Agreement; and

 

(ii)                                  Purchase Contracts in exchange for or in lieu of which other Purchase Contracts have been executed, authenticated on behalf of the Holder and delivered pursuant to this Purchase Contract Agreement, other than any such Purchase Contract in respect of which there shall have been presented to the Purchase Contract Agent proof satisfactory to it that such Purchase Contract is held by a “protected purchaser” (as such term is defined in Section 8-303 of the Uniform Commercial Code of New York as then in effect) in whose hands the Purchase Contracts are valid obligations of the Company;

 

provided, however, that in determining whether the Holders of the requisite number of the Purchase Contracts have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Purchase Contracts owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be Outstanding Purchase Contracts, except that, in determining whether the Purchase Contract Agent shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Purchase Contracts that a Responsible Officer of the Purchase Contract Agent actually knows to be so owned shall be so disregarded.

 

“Participant” has the meaning set forth in Section 2.03(a).

 

“Person” means any individual, corporation, estate, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof or any other entity of whatever nature.

 

“Preliminary Prospectus Supplement” means the preliminary prospectus supplement, dated June 15, 2016, related to the offering of the Units, as filed with the Securities and Exchange Commission.

 

“Purchase Contract” means the contract obligating the Company to deliver shares of Common Stock on the terms and subject to the conditions set forth herein.

 

“Purchase Contract Agent” means the Person named as the “Purchase Contract Agent” in the first paragraph of this Purchase Contract Agreement until a successor Purchase Contract Agent shall have become such pursuant to the applicable provisions of this Purchase Contract Agreement, and thereafter “Purchase Contract Agent” shall mean such Person.

 

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“Purchase Contract Agreement” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more agreements supplemental hereto entered into pursuant to the applicable provisions hereof.

 

“Purchase Contract Settlement Fund” has the meaning set forth in Section 4.03(a).

 

“Record Date” means, when used with respect to any dividend, distribution or other transaction or event in which the holders of the Common Stock (or other applicable security) have the right to receive any cash, securities or other property or in which the Common Stock (or such other security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of holders of the Common Stock (or such other security) entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute, contract or otherwise).

 

“Redemption Amount” has the meaning set forth in Section 4.08(c).

 

“Redemption Market Value” means the average of the Closing Prices of the Common Stock for the 20 consecutive Trading Days beginning on, and including, the 23rd Scheduled Trading Day immediately preceding the Scheduled Acquisition Redemption Settlement Date.

 

“Reference Price” has the meaning set forth in Section 4.01.

 

“Reference Property” has the meaning set forth in Section 5.01(e).

 

“Reference Property Unit” has the meaning set forth in Section 5.01(e).

 

“Repurchase Date” has the meaning set forth in the Indenture.

 

“Repurchase Price” has the meaning set forth in the Indenture.

 

“Repurchase Right” has the meaning set forth in the Indenture.

 

“Responsible Officer” means, with respect to the Purchase Contract Agent, any officer of the Purchase Contract Agent with direct responsibility for administration of this Purchase Contract Agreement.

 

“Scheduled Acquisition Redemption Settlement Date” means, with respect to any Acquisition Termination Redemption: (i) if (x) the Acquisition Termination Stock Price is greater than the Reference Price and (y) the Company elects to pay cash in lieu of any or all of the shares of Common Stock that would otherwise be included in the Redemption Amount, a date, as specified in the relevant Acquisition Redemption Notice, that is at least 45 and no more than 60 calendar days after the date of the Acquisition Redemption Notice; or (ii) otherwise, a date, as specified in the relevant Acquisition Redemption Notice, that is at least 5 and no more than 30 calendar days after the date of the Acquisition Redemption Notice.

 

“Scheduled Mandatory Settlement Date” means July 1, 2019.

 

“Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the primary U.S. national or regional securities exchange or market on which the Common Stock is listed or admitted for trading;  provided, however, that if the Common Stock is not so listed or admitted for trading, then “Scheduled Trading Day” means a Business Day.

 

“Securities Act” means the Securities Act of 1933, as amended, and any statute successor thereto, in each case as amended from time to time, and the rules and regulations promulgated thereunder.

 

“Security” means a Unit, a Purchase Contract or a Note, as applicable.

 

“Security Register” and “Security Registrar” have the respective meanings set forth in Section 3.05.

 

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“Separate Note” has the meaning set forth in Section 2.03(a).

 

“Separate Purchase Contract” has the meaning set forth in Section 2.03(a).

 

“Settlement Amount” has the meaning set forth in Section 4.01.

 

“Settlement Date” means the Early Mandatory Settlement Date, the Mandatory Settlement Date or the third Business Day following any Acquisition Redemption Settlement Date, Early Settlement Exercise Date or Fundamental Change Early Settlement Date.

 

“Spin-Off” has the meaning set forth in Section 5.01(a)(iii).

 

“Stock Price” has the meaning set forth in Section 5.02(c).

 

“Subsidiary,” when used with respect to any Person, means:

 

(i) any corporation, limited liability company, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, limited liability company, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(ii) any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

 

“Successor Company” has the meaning set forth in Section 9.01(a).

 

“Tender Offer Expiration Date” has the meaning set forth in Section 5.01(a)(vi).

 

“Tender Offer Expiration Time” has the meaning set forth in Section 5.01(a)(vi).

 

“Threshold Appreciation Price” initially has the value set forth in Section 4.01 and is subject to adjustment as provided herein.

 

“TIA” means the Trust Indenture Act of 1939, as amended from time to time.

 

“Trading Day” means a Scheduled Trading Day on which (a) (i) trading in the Common Stock generally occurs on the NYSE or, if the Common Stock is not then listed on the NYSE, on the principal other U.S. national or regional securities exchange on which the Common Stock is then listed and (ii) there is no Market Disruption Event, or (b) if the Common Stock is not then listed on a U.S. national or regional securities exchange, trading in the Common Stock generally occurs on the principal other market on which the Common Stock is then traded.  If the Common Stock is not so listed or traded, “Trading Day” means a Business Day.

 

“Trustee” means Wilmington Trust, National Association, as trustee under the Indenture, or any successor thereto.

 

“Underwriters” has the meaning set forth in that certain underwriting agreement, dated as of June 15, 2016, between the Company and the representative of the underwriters named therein, as underwriter, relating to the Units.

 

“Unit” means the collective rights of a Holder of a unit consisting of one Purchase Contract and one Note prior to separation pursuant Section 2.03 or subsequent to recreation pursuant to Section 2.04.

 

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“Unit Stated Amount” means $100.00 per Unit.

 

“VWAP Market Disruption Event” means (i) a failure by the primary U.S. national or regional securities exchange or market on which the Common Stock is listed or admitted for trading to open for trading during its regular trading session or (ii) the occurrence or existence prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for the Common Stock for more than one half hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in the Common Stock or in any options, contracts or futures contracts relating to the Common Stock.

 

“VWAP Trading Day” means a day on which (i) there is no VWAP Market Disruption Event and (ii) trading in the Common Stock generally occurs on the NYSE or, if the Common Stock is not then listed on NYSE, on the principal other U.S. national or regional securities exchange on which the Common Stock is then listed or, if the Common Stock is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the Common Stock is then listed or admitted for trading.  If the Common Stock is not so listed or admitted for trading, “VWAP Trading Day” means a Business Day.

 

Section 1.02.   Compliance Certificates and Opinions.

 

Except as otherwise expressly provided by this Purchase Contract Agreement, upon any application or request by the Company to the Purchase Contract Agent or Trustee to take any action in accordance with any provision of this Purchase Contract Agreement, the Company shall furnish to the Purchase Contract Agent or Trustee, as applicable, an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Purchase Contract Agreement relating to the proposed action have been complied with and, if requested by the Purchase Contract Agent or Trustee, as applicable, an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Purchase Contract Agreement relating to such particular application or request, no additional certificate or opinion need be furnished.

 

Every Officer’s Certificate or opinion with respect to compliance with a condition or covenant provided for in this Purchase Contract Agreement shall include:

 

(i)                                     a statement that each individual signing such Officer’s Certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

 

(ii)                                  a statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to enable such individual to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(iii)                               a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

 

Section 1.03.   Form of Documents Delivered.

 

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his or her certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the information

 

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with respect to such factual matters is in the possession of the Company unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

 

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Purchase Contract Agreement, they may, but need not, be consolidated and form one instrument.

 

Section 1.04.   Acts of Holders; Record Dates.

 

(a)                                 Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Purchase Contract Agreement to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Purchase Contract Agent and, where it is hereby expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Purchase Contract Agreement and (subject to Section 7.01) conclusive in favor of the Purchase Contract Agent and the Company, if made in the manner provided in this Section.

 

(b)                                 The fact and date of the execution by any Person of any such instrument or writing may be proved in any manner which the Purchase Contract Agent deems sufficient.

 

(c)                                  The ownership of Purchase Contracts shall be proved by the Security Registrar upon review of the Security Register.

 

(d)                                 Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Purchase Contract shall bind every future Holder of the same Purchase Contract and the Holder of such Purchase Contract issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Purchase Contract Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Purchase Contract.

 

(e)                                  The Company may set any date as a record date for the purpose of determining the Holders of Outstanding Purchase Contracts entitled to give, make or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Purchase Contract Agreement to be given, made or taken by Holders of Purchase Contracts. If any record date is set pursuant to this paragraph, the Holders of the Outstanding Purchase Contracts on such record date, and no other Holders, shall be entitled to take the relevant action with respect to the Purchase Contracts, whether or not such Holders remain Holders after such record date;  provided, however, that no such action shall be effective hereunder unless taken prior to or on the applicable Expiration Date by Holders of the requisite number of Outstanding Purchase Contracts on such record date. Nothing contained in this paragraph shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this paragraph (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and be of no effect), and nothing contained in this paragraph shall be construed to render ineffective any action taken by Holders of the requisite number of Outstanding Purchase Contracts on the date such action is taken. Promptly after any record date is set pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Purchase Contract Agent in writing and to each Holder of Purchase Contracts in the manner set forth in Section 1.05.

 

With respect to any record date set pursuant to this Section, the Company may designate any date as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day;  provided, however, that no such change shall be effective unless notice of the proposed new Expiration Date is given to the Purchase Contract Agent in writing, and to each Holder of Purchase Contracts in the manner set forth in Section 1.05, prior to or on the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section, the Company shall be deemed to have initially designated the 180th day after such

 

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record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this paragraph. Notwithstanding anything to the contrary in the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date.

 

Section 1.05.   Notices.

 

(a)                                 Any notice or communication is duly given if in writing and delivered in Person or mailed by first-class mail (registered or certified, return receipt requested), telecopier (with receipt confirmed) or overnight courier guaranteeing next day delivery to the applicable address below:

 

if to the Purchase Contract Agent or Trustee:

 

Wilmington Trust, National Association
 15950 N. Dallas Parkway, Suite 550
 Dallas, Texas 75248

 

if to the Company:

 

Dynegy Inc.

601 Travis Street

Suite 1400

Houston, Texas 77002

Telecopier No.: (713) 507-6588

Email: Catherine.James@dynegy.com

Attention: General Counsel

 

(b)                                 Where this Purchase Contract Agreement provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at its address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Purchase Contract Agreement provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Purchase Contract Agent, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

(c)                                  Notwithstanding the foregoing or any other provision of this Purchase Contract Agreement to the contrary, whenever notice is required to be given to a holder of a Global Security pursuant to this Purchase Contract Agreement, such notice shall be sufficiently given if given to the Depositary for such Security (or its designee), pursuant to the Applicable Procedures.

 

Section 1.06.   Effect of Headings and Table of Contents.

 

The Article and Section headings herein and in the Table of Contents are for convenience only and shall not affect the construction hereof.

 

Section 1.07.   Successors and Assigns.

 

All covenants and agreements in this Purchase Contract Agreement by the Company and the Purchase Contract Agent shall bind their respective successors and assigns, whether so expressed or not.

 

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Section 1.08.   Separability Clause.

 

In case any provision in this Purchase Contract Agreement or in the Purchase Contracts shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof and thereof shall not in any way be affected or impaired thereby.

 

Section 1.09.   Benefits of Agreement.

 

Nothing contained in this Purchase Contract Agreement or in the Purchase Contracts, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and, to the extent provided hereby, the Holders, any benefits or any legal or equitable right, remedy or claim under this Purchase Contract Agreement. The Holders from time to time shall be beneficiaries of this Purchase Contract Agreement and shall be bound by all of the terms and conditions hereof and of the Purchase Contracts by their acceptance of delivery of such Purchase Contracts.

 

Section 1.10.   Governing Law.

 

This Purchase Contract Agreement, the Units and the Purchase Contracts, and any claim, controversy or dispute arising under or related to this Purchase Contract Agreement, the Units or the Purchase Contracts shall be governed by, and construed in accordance with, the laws of the State of New York.

 

Section 1.11.   Conflicts with Indenture.

 

To the extent that any provision of this Purchase Contract Agreement relating to or affecting the Notes conflicts with or is inconsistent with the Indenture, the Indenture shall govern.

 

Section 1.12.   Legal Holidays.

 

In any case where any Settlement Date shall not be a Business Day, notwithstanding any other provision of this Purchase Contract Agreement or the Purchase Contracts, the settlement or redemption of the Purchase Contracts shall not be effected on such date, but instead shall be effected on the next succeeding Business Day with the same force and effect as if made on such Settlement Date, and no interest or other amounts shall accrue or be payable by the Company or to any Holder in respect of such delay.

 

Section 1.13.   Counterparts.

 

This Purchase Contract Agreement may be executed in any number of counterparts by the parties hereto on separate counterparts, each of which, when so executed and delivered, shall be deemed an original, but all such counterparts shall together constitute one and the same instrument.

 

Section 1.14.   Inspection of Agreement.

 

A copy of this Purchase Contract Agreement shall be available at all reasonable times during normal business hours at the Corporate Trust Office for inspection by any Holder or Beneficial Owner.

 

Section 1.15.   Waiver of Jury Trial.

 

EACH OF THE COMPANY, THE PURCHASE CONTRACT AGENT AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS PURCHASE CONTRACT AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

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Section 1.16.   Force Majeure.

 

In no event shall either of the Purchase Contract Agent or the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that each of the Purchase Contract Agent and the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

Section 1.17.   Calculations.

 

The solicitation of any necessary bids and the performance of any calculations to be made hereunder shall be the sole obligation of the Company. These calculations include, but are not limited to, determination of the applicable Fixed Settlement Rates, the Early Settlement Rate, the Acquisition Redemption Rate, the Early Mandatory Settlement Rate, the Fundamental Change Early Settlement Rate, the Closing Price, the Reference Price and the Threshold Appreciation Price as the case may be. All calculations made by the Company or its agent hereunder shall be made in good faith and, absent manifest error, be final and binding on the Purchase Contract Agent, the Trustee, each Paying Agent and on the Holders. For any calculations to be made by the Company or its agent hereunder, the Company shall provide a schedule of such calculations to the Purchase Contract Agent and the Trustee, and each of the Purchase Contract Agent and the Trustee shall be entitled to conclusively rely upon the accuracy of the calculations by the Company or its agent without independent verification, shall have no liability with respect thereto and shall have no liability to the Holders for any loss any of them may incur in connection with no independent verification having been done. The Purchase Contract Agent and Trustee shall have no obligation to make any such calculations hereunder. Furthermore, the Purchase Contract Agent shall have no duty or responsibility to determine whether any facts exist which may require any adjustment to any amount or calculation hereunder, or with respect to the nature or extent of any such adjustment when made, or with respect to the method employed.

 

Section 1.18.   UCC.

 

Each Purchase Contract (whether or not included in a Unit) is a security governed by Article 8 of the Uniform Commercial Code as in effect in the State of New York on the date hereof.

 

ARTICLE II
 UNIT AND PURCHASE CONTRACT FORMS

 

Section 2.01.   Forms of Units and Purchase Contracts Generally.

 

The Units and Purchase Contracts shall be in substantially the forms set forth in Exhibit A and Exhibit B hereto, respectively, which shall be incorporated in and made a part of this Purchase Contract Agreement, with such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as may be required by the rules of any securities exchange on which the Units or Purchase Contracts, as the case may be, are (or may in the future be) listed or any depositary therefor, or as may, consistently herewith, be determined by the officers of the Company executing such Units and Purchase Contracts, as the case may be, as evidenced by their execution thereof.

 

The Units and Purchase Contracts shall be issuable only in registered form and only in denominations of a single Unit or Purchase Contract, as the case may be, and any integral multiple thereof.

 

The Units will initially be issued in the form of one or more fully registered Global Units as set forth in Section 3.06. The Purchase Contracts will initially be issued as Component Purchase Contracts substantially in the form of Attachment 3 to the form of Global Unit attached as Exhibit A hereto, will be attached to the related Global Unit and registered in the name of Wilmington Trust, National Association, as attorney-in-fact of the holder(s) of such Global Unit, and will trade under the CUSIP number 26817R405 for the Units.

 

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Definitive Securities shall be printed, lithographed or engraved with steel engraved borders or may be produced in any other manner, all as determined by the officers of the Company executing the Units or Purchase Contracts, as the case may be, evidenced by such Definitive Securities, consistent with the provisions of this Purchase Contract Agreement, as evidenced by their execution thereof.

 

Every Global Unit and Global Purchase Contract executed, authenticated on behalf of the Holders and delivered hereunder shall bear a legend in substantially the following form:

 

“THIS SECURITY IS A GLOBAL [UNIT / PURCHASE CONTRACT] WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS GLOBAL [UNIT / PURCHASE CONTRACT] IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS GLOBAL [UNIT / PURCHASE CONTRACT] IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

 

Section 2.02.   Form of Certificate of Authentication.

 

The form of certificate of authentication of the Units and Purchase Contracts shall be substantially in the form set forth in the form of Unit or form of Purchase Contract attached hereto as Exhibit A and Exhibit B, respectively.

 

Section 2.03.   Global Securities; Separation of Units.

 

(a)                                 On any Business Day during the period beginning on, and including, the Business Day immediately succeeding the Issue Date to, but excluding, the third Business Day immediately preceding the Scheduled Mandatory Settlement Date or an Early Mandatory Settlement Date or any Acquisition Redemption Settlement Date, a Holder or Beneficial Owner of a Unit may separate such Unit into its constituent Purchase Contract and Note (each such separated Purchase Contract and separated Note, a “Separate Purchase Contract” and “Separate Note,” respectively), which will thereafter trade under their respective CUSIP numbers (26817R 124 and 26817R306), and that Unit will cease to exist. Beneficial interests in a Unit, and after separation, the Separate Purchase Contract and Separate Note, will be shown on and transfers will be effected through direct or indirect participants in DTC. Beneficial interests in Units, Separate Purchase Contracts and Separate Notes will be evidenced by Global Units, Global Purchase Contracts and Global Notes, respectively. In order to separate a Unit into its component parts, a Beneficial Owner must deliver written instruction to the broker or other direct or indirect participant (the “Participant”) through which it holds an interest in such Unit to notify DTC through DTC’s Deposit/Withdrawal at Custodian System (the “DWAC System”) of such Beneficial Owner’s election to separate such Unit, following which the Purchase Contract Agent or Trustee, as applicable, shall register (i) a decrease in the Global Unit and the amount of Purchase Contracts and Notes represented by the Component Purchase Contract and the Component Note attached to the Global Unit as Attachments 3 and 4, respectively, as set forth in Schedule A to each such attachment, and (ii) a corresponding increase in the amounts of the Global Purchase Contract and Global Note. If, however, such Unit is in the form of a Definitive Security in accordance with Section 3.09, the Holder thereof must deliver to the Purchase Contract Agent such Unit, together with a

 

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separation notice, in the form set forth in Attachment 1 to the form of Unit attached hereto as Exhibit A. Upon the receipt of such separation notice, the Company shall promptly cause delivery, in accordance with the delivery instructions set forth in such separation notice, of one Separate Purchase Contract and one Separate Note for each such Unit. Separate Purchase Contracts and Separate Notes will be transferable independently from each other.

 

(b)           Holders which elect to separate the Note and related Purchase Contract in accordance with this Section 2.03 shall be responsible for any fees or expenses payable in connection with such separation, and the Company, the Trustee and the Purchase Contract Agent shall not be responsible for any such fees or expenses.

 

Each of the Purchase Contract Agent and the Trustee is authorized to act in accordance with any letter of representations executed by the Company in favor of DTC.

 

Section 2.04.   Recreation of Units.

 

(a)           On any Business Day before the third Business Day immediately preceding the Scheduled Mandatory Settlement Date or any Early Mandatory Settlement Date or Acquisition Redemption Settlement Date, a Holder or Beneficial Owner of a Separate Purchase Contract and a Separate Note may recreate a Unit (which will thereafter trade under the CUSIP number 26817R405 for the Units), and each such Separate Purchase Contract and Separate Note will cease to exist immediately after such recreation. In order to recreate a Separate Purchase Contract and Separate Note into a Unit, a Beneficial Owner must deliver written instruction to the Participant through which it holds an interest in such Separate Purchase Contract and Separate Note to notify DTC through DTC’s DWAC System of such Beneficial Owner’s election to recreate a Unit, following which the Purchase Contract Agent or Trustee, as applicable, shall register (i) an increase in the Global Unit and the amount of Purchase Contracts and Notes represented by the Component Purchase Contract and the Component Note attached to the Global Unit as Attachments 3 and 4, respectively, as set forth in Schedule A to each such attachment, and (ii) a corresponding decrease in the amounts of the Global Purchase Contract and Global Note. If, however, such Separate Purchase Contract and Separate Note are in the form of Definitive Securities, the Holder thereof must deliver to the Purchase Contract Agent such Definitive Securities, together with a recreation notice, in the form set forth in Attachment 2 to the form of Unit attached hereto as Exhibit A. Upon the receipt of such recreation notice, the Company shall promptly cause delivery, in accordance with the delivery instructions set forth in such recreation notice, of one Unit in definitive form for such Definitive Securities.

 

(b)           Holders that recreate Units in accordance with this Section 2.04 shall be responsible for any fees or expenses payable in connection with such recreation, and the Company, the Trustee and the Purchase Contract Agent shall not be responsible for any such fees or expenses.

 

ARTICLE III
 THE UNITS AND PURCHASE CONTRACTS

 

Section 3.01.   Amount and Denominations.

 

The aggregate number of Units and Separate Purchase Contracts evidenced by Equity-Linked Securities executed, authenticated on behalf of the Holders and delivered hereunder is limited in each case to 4,600,000, except for Units and Separate Purchase Contracts executed, authenticated and delivered upon registration of transfer of, in exchange for, or in lieu of, other Units and Separate Purchase Contracts pursuant to Section 3.04, Section 3.05, Section 3.10, or Section 8.05.  On the Issue Date, there shall be issued and authenticated 4,600,000 Units.

 

Equity-Linked Securities that are not in the form of Global Securities shall be issuable in denominations of one Equity-Linked Security and integral multiples in excess thereof.

 

Section 3.02.   Rights and Obligations Evidenced by the Equity-Linked Securities.

 

Each Equity-Linked Security shall evidence the number of Units or Separate Purchase Contracts, as the case may be, specified therein, with each such Unit or Separate Purchase Contract representing the rights and obligations of the Holder thereof and the Company under one Unit or one Separate Purchase Contract, respectively.

 

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In the case of a Unit or a Separate Purchase Contract, the Holder of such Unit or Separate Purchase Contract, as the case may be, shall, for all purposes hereunder and under the Indenture, be deemed to be the Holder of the Note and Purchase Contract that are components of such Unit, or of such Separate Contract, respectively.

 

Prior to settlement of any Purchase Contract, the shares of Common Stock deliverable upon settlement of such Purchase Contract shall not be outstanding and, prior to the relevant time set forth in the immediately following sentence for an Early Settlement, Early Mandatory Settlement or a Mandatory Settlement, as the case may be, such Purchase Contract shall not entitle the Holder thereof to any of the rights of a holder of Common Stock, including, without limitation, the right to vote or receive any dividends or other distributions or to consent or to receive notice as a shareholder in respect of the meetings of shareholders or for the election of directors for any other matter, or any other rights whatsoever as a shareholder of the Company.  The Person in whose name any shares of the Common Stock shall be issuable upon settlement of a Purchase Contract shall be deemed to become the holder of record of such shares at the Close of Business on (i) in the case of an Early Settlement, the Early Settlement Exercise Date, (ii) in the case of an Early Mandatory Settlement, the Early Mandatory Relevant Date or (iii) in the case of a Mandatory Settlement, the last VWAP Trading Day of the Observation Period.

 

Section 3.03.   Execution, Authentication, Delivery and Dating.

 

Upon the execution and delivery of this Purchase Contract Agreement, and at any time and from time to time thereafter, the Company may deliver Equity-Linked Securities executed by the Company to the Purchase Contract Agent and Trustee for authentication on behalf of the Holders and delivery, together with an Issuer Order for authentication of such Equity-Linked Securities, and the Purchase Contract Agent and Trustee (if applicable) in accordance with such Issuer Order shall authenticate on behalf of the Holders and deliver such Equity-Linked Securities.

 

The Equity-Linked Securities shall be executed on behalf of the Company by any authorized officer of the Company. The signature of any such officer on the Equity-Linked Securities may be manual or facsimile.

 

Equity-Linked Securities bearing the manual or facsimile signature of an individual who was at any time the proper officer of the Company shall bind the Company, notwithstanding that such individual has ceased to hold such offices prior to the authentication and delivery of such Equity-Linked Securities or did not hold such offices at the date of such Equity-Linked Securities.

 

Each Equity-Linked Security shall be dated the date of its authentication.

 

No Equity-Linked Security shall be entitled to any benefit under this Purchase Contract Agreement or be valid or obligatory for any purpose unless there appears on such Equity-Linked Security a certificate of authentication substantially in the form provided for herein executed by an authorized officer of the Purchase Contract Agent and Trustee (if applicable) by manual signature, and such certificate upon any Equity-Linked Security shall be conclusive evidence, and the only evidence, that such Equity-Linked Security has been duly authenticated and delivered hereunder.

 

Section 3.04.   Temporary Equity-Linked Securities.

 

Pending the preparation of Definitive Equity-Linked Securities, the Company shall execute and deliver to the Purchase Contract Agent and, in the case of Units, Trustee, and the Purchase Contract Agent and Trustee (if applicable) shall authenticate on behalf of the Holders, and deliver, in lieu of such Definitive Equity-Linked Securities, temporary Equity-Linked Securities that are substantially in the form set forth in Exhibit A or Exhibit B hereto, as the case may be, with such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as may be required by the rules of any securities exchange on which the Units or Separate Purchase Contracts, as the case may be, are listed, or as may, consistently herewith, be determined by the officers of the Company executing such Equity-Linked Securities, as evidenced by their execution of the Equity-Linked Securities.

 

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If temporary Equity-Linked Securities are issued, the Company shall cause Definitive Equity-Linked Securities to be prepared without unreasonable delay. After the preparation of Definitive Equity-Linked Securities, the temporary Equity-Linked Securities shall be exchangeable for Definitive Equity-Linked Securities upon surrender of the temporary Equity-Linked Securities at the Corporate Trust Office, at the expense of the Company and without charge to the Holder or the Purchase Contract Agent. Upon surrender for cancellation of any one or more temporary Equity-Linked Securities, the Company shall execute and deliver to the Purchase Contract Agent and, in the case of Units, Trustee, and the Purchase Contract Agent and Trustee (if applicable) shall authenticate on behalf of the Holder, and deliver in exchange therefor, one or more Definitive Equity-Linked Securities of like tenor and denominations and evidencing a like number of Units or Separate Purchase Contracts, as the case may be, as the temporary Equity-Linked Security or Equity-Linked Securities so surrendered. Until so exchanged, the temporary Equity-Linked Securities shall in all respects evidence the same benefits and the same obligations with respect to the Units or Separate Purchase Contracts, as the case may be, evidenced thereby as Definitive Equity-Linked Securities.

 

Section 3.05.   Registration; Registration of Transfer and Exchange.

 

The Company shall cause to be kept at the Corporate Trust Office a register (the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Equity-Linked Securities and of transfers of Equity-Linked Securities. The Purchase Contract Agent is hereby initially appointed Security Registrar (the “Security Registrar”) for the purpose of registration of Equity-Linked Securities and transfers of Equity-Linked Securities as provided herein. The Company may designate an alternative Person to act as Security Registrar by providing written notice to the Holders.  The Security Registrar shall record separately the registration and transfer of the Equity-Linked Securities evidencing Units and Separate Purchase Contracts.

 

Upon surrender for registration of transfer of any Equity-Linked Security at the Corporate Trust Office, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and Trustee shall authenticate on behalf of the designated transferee or transferees, and deliver, in the name of the designated transferee or transferees, one or more new Equity-Linked Securities of any authorized denominations, of like tenor, and evidencing a like number of Units or Separate Purchase Contracts, as the case may be.

 

At the option of the Holder, Equity-Linked Securities may be exchanged for other Equity-Linked Securities of any authorized denominations and evidencing a like number of Units or Separate Purchase Contracts, as the case may be, upon surrender of the Equity-Linked Securities to be exchanged at the Corporate Trust Office. Whenever any Equity-Linked Securities are so surrendered for exchange, the Company shall execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and, in the case of Units, the Trustee shall authenticate on behalf of the Holder, and deliver the Equity-Linked Securities which the Holder making the exchange is entitled to receive.

 

All Equity-Linked Securities issued upon any registration of transfer or exchange of an Equity-Linked Security shall evidence the ownership of the same number of Units or Separate Purchase Contracts, as the case may be, and be entitled to the same benefits and subject to the same obligations, under this Purchase Contract Agreement as the Units or Separate Purchase Contracts, as the case may be, evidenced by the Equity-Linked Security surrendered upon such registration of transfer or exchange.

 

Every Equity-Linked Security presented or surrendered for registration of transfer or exchange shall (if so required by the Purchase Contract Agent) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Purchase Contract Agent duly executed by the Holder thereof, or its attorney duly authorized in writing.

 

No service charge shall be made for any registration of transfer or exchange of an Equity-Linked Security, but the Company may require payment from the Holder of a sum sufficient to cover any transfer tax or other similar governmental charge that may be imposed in connection with any registration of transfer or exchange of Equity-Linked Securities, other than any exchanges pursuant to Section 3.09 and Section 8.05 not involving any transfer.

 

Notwithstanding anything to the contrary in the foregoing, the Company shall not be obligated to execute and deliver to the Purchase Contract Agent, and the Purchase Contract Agent and, in the case of Units, the Trustee,

 

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shall not be obligated to authenticate on behalf of the Holder or deliver any Equity-Linked Security in exchange for any other Equity-Linked Security presented or surrendered for registration of transfer or for exchange on or after the Close of Business on the Business Day immediately preceding the Settlement Date with respect to such Equity-Linked Security. In lieu of delivery of a new Equity-Linked Security, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer instructions from such Holder, the Purchase Contract Agent or the Company, as applicable, shall, if a Settlement Date with respect to such Equity-Linked Security has occurred, deliver or cause to be delivered the shares of Common Stock deliverable (and/or, in the case of an Acquisition Redemption Settlement Date, make the required cash payment, if any) in respect of the Purchase Contracts evidenced by such Equity-Linked Security (together with Separate Notes equal to the number of, and in the same form as, the Notes evidenced by such Equity-Linked Security if such Equity-Linked Security is a Unit and if the Repurchase Right is not applicable or, if applicable, not exercised).

 

Section 3.06.   Book-Entry Interests.

 

The Units, the Separate Purchase Contracts and the Separate Notes, on original issuance, will be issued in the form of one or more fully registered Global Units, Global Purchase Contracts and Global Notes, respectively, to be delivered to the Depositary or its custodian by, or on behalf of, the Company. The Company hereby designates DTC as the initial Depositary. Such Global Securities shall initially be registered on the books and records of the Company in the name of Cede & Co., the nominee of DTC, and no Beneficial Owner will receive a Definitive Security representing such Beneficial Owner’s interest in such Global Security, except as provided in Section 3.09. The Purchase Contract Agent shall enter into an agreement with the Depositary if so requested by the Company in writing. Unless and until definitive, fully registered Securities have been issued to Beneficial Owners pursuant to Section 3.09:

 

(i)            the provisions of this Section 3.06 shall be in full force and effect;

 

(ii)           the Company shall be entitled to deal with the Depositary for all purposes of this Purchase Contract Agreement (including settling Purchase Contracts, receiving approvals, votes or consents hereunder) as the Holder of the Global Units and Global Purchase Contracts and shall have no obligation to the Beneficial Owners as such;

 

(iii)          to the extent that the provisions of this Section 3.06 conflict with any other provisions of this Purchase Contract Agreement, the provisions of this Section 3.06 shall control; and

 

(iv)          the rights of the Beneficial Owners shall be exercised only through the Depositary and shall be limited to those established by law and agreements between such Beneficial Owners and the Depositary or the Depositary Participants.

 

Section 3.07.   Notices to Holders.

 

Whenever a notice or other communication to the Holders is required to be given under this Purchase Contract Agreement, the Company or the Company’s agent shall give such notices and communications to the Holders and, with respect to any Units or Separate Purchase Contracts registered in the name of the Depositary or the nominee of the Depositary, the Company or the Company’s agent shall, except as set forth herein, have no obligations to the Beneficial Owners.

 

Section 3.08.   Appointment of Successor Depositary.

 

If the Depositary elects to discontinue its services as securities depositary with respect to the Units or Separate Purchase Contracts, the Company may, in its sole discretion, appoint a successor Depositary with respect to such Units or such Separate Purchase Contracts, as the case may be.

 

Section 3.09.   Definitive Securities.

 

If:

 

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(i)            the Depositary is no longer a Clearing Agency or is unwilling or unable to continue its services as securities depositary with respect to the Global Securities and a successor Depositary is not appointed within 90 days after such discontinuance pursuant to Section 3.08; or

 

(ii)           the Company elects, in its sole discretion, to allow some or all Global Units, Global Purchase Contracts or Global Notes to be exchangeable for securities in registered definitive form,

 

then (x) Definitive Securities shall be prepared by the Company with respect to such Global Securities and delivered to the Purchase Contract Agent and the Trustee, and (y) upon surrender of such Global Securities by the Depositary, accompanied by registration instructions, the Company shall cause Definitive Securities to be executed, authenticated and delivered to Beneficial Owners in accordance with the instructions of the Depositary. The Company shall not be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions. Each Definitive Security so delivered shall evidence Units or Separate Purchase Contracts or Separate Notes, as the case may be, of the same kind and tenor as the Global Security so surrendered in respect thereof. Notwithstanding anything to the contrary in the foregoing, the exchange of Global Notes for Separate Notes in definitive form shall be governed by the Indenture.

 

Section 3.10.   Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Equity-Linked Security is surrendered to the Purchase Contract Agent, the Company shall execute and deliver to the Purchase Contract Agent and, if applicable, the Trustee, and the Purchase Contract Agent and, if applicable, the Trustee shall authenticate on behalf of the Holder, and deliver in exchange therefor, a new Equity-Linked Security, evidencing the same number of Units or Separate Purchase Contracts, as the case may be, and bearing a security number not contemporaneously outstanding.

 

If there shall be delivered to the Company, the Purchase Contract Agent and Trustee (in the case of any Units) (i) evidence to their satisfaction of the destruction, loss or theft of any Equity-Linked Security, and (ii) such security or indemnity as may be reasonably satisfactory to them to hold each of them and any agent of any of them harmless, then, in the absence of notice to the Company, the Purchase Contract Agent or Trustee that such Equity-Linked Security has been acquired by a “protected purchaser” (as such term is defined in Section 8-303 of the Uniform Commercial Code of New York as then in effect), the Company shall execute and deliver to the Purchase Contract Agent and, in the case of Units, the Trustee, and the Purchase Contract Agent and Trustee (if applicable) shall authenticate on behalf of the Holder, and deliver to the Holder, in lieu of any such destroyed, lost or stolen Equity-Linked Security, a new Equity-Linked Security, evidencing the same number of Units or Separate Purchase Contracts, as the case may be, and bearing a security number not contemporaneously outstanding.

 

Notwithstanding anything to the contrary in the foregoing, the Company shall not be obligated to execute and deliver to the Purchase Contract Agent and Trustee, and the Purchase Contract Agent and, in the case of Units, Trustee shall not be obligated to authenticate on behalf of the Holder, and deliver to the Holder, an Equity-Linked Security on or after the Business Day immediately preceding the Settlement Date with respect to such Equity-Linked Security. In lieu of delivery of a new Equity-Linked Security, upon satisfaction of the applicable conditions specified above in this Section and receipt of appropriate registration or transfer instructions from such Holder, the Purchase Contract Agent shall, if a Settlement Date with respect to such Equity-Linked Security has occurred, deliver or arrange for delivery of the shares of Common Stock deliverable (and/or, in the case of an Acquisition Redemption Settlement Date, make the required cash payment, if any) in respect of the Purchase Contracts evidenced by such Equity-Linked Security (together with Separate Notes equal to the number of, and in the same form as, the Notes evidenced by such Equity-Linked Security if such Equity-Linked Security is a Unit and if the Repurchase Right is not applicable or, if applicable, not exercised).

 

Upon the issuance of any new Equity-Linked Security under this Section 3.10, the Company and the Purchase Contract Agent may require the payment by the Holder of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the reasonable fees and expenses of the Purchase Contract Agent) connected therewith.

 

Every new Equity-Linked Security issued pursuant to this Section 3.10 in lieu of any destroyed, lost or stolen Equity-Linked Security shall constitute an original additional contractual obligation of the Company and of

 

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the Holder in respect of the Unit or Separate Purchase Contract, as the case may be, evidenced thereby, whether or not the destroyed, lost or stolen Equity-Linked Security shall be found at any time. Such new Equity-Linked Security (and the Units or Separate Purchase Contracts, as applicable, evidenced thereby) shall be at any time enforceable by anyone, and shall be entitled to all the benefits and be subject to all the obligations of this Purchase Contract Agreement equally and proportionately with any and all other Equity-Linked Securities delivered hereunder.

 

The provisions of this Section 3.10 are exclusive and shall preclude, to the extent lawful, all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Equity-Linked Securities.

 

Section 3.11.   Persons Deemed Owners.

 

Prior to due presentment of an Equity-Linked Security for registration of transfer, the Company, the Purchase Contract Agent, the Trustee and any agent of the Company, the Purchase Contract Agent or the Trustee, may treat the Person in whose name such Equity-Linked Security is registered as the absolute owner of the Unit or Purchase Contract, as the case may be, evidenced thereby, for the purpose of performance of the Units or Purchase Contracts, as applicable, evidenced by such Equity-Linked Securities and for all other purposes whatsoever, and neither the Company, the Purchase Contract Agent nor the Trustee, nor any agent of the Company, the Purchase Contract Agent or the Trustee, shall be affected by notice to the contrary.

 

None of the Purchase Contract Agent, the Trustee, the Paying Agent and the Security Registrar shall have any responsibility or obligation to any Beneficial Owner in a Global Security, an agent member or other Person with respect to the accuracy of the records of the Depositary or its nominee or of any agent member, with respect to any ownership interest in the Equity-Linked Securities or with respect to the delivery to any agent member, Beneficial Owner or other Person (other than the Depositary) of any notice or the payment of any amount, under or with respect to such Equity Linked Securities. All notices and communications to be given to the Holder and all payments to be made to Holders under the Equity Linked Securities and this Purchase Contract Agreement shall be given or made only to or upon the order of the registered Holders (which shall be the Depositary or its nominee in the case of a Global Security). The rights of Beneficial Owners in Global Securities shall be exercised only through the Depositary subject to the Applicable Procedures. The Purchase Contract Agent, the Trustee, the Paying Agent and the Security Registrar shall be entitled to rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members, participants and any Beneficial Owners. The Purchase Contract Agent, the Trustee, the Paying Agent and the Security Registrar shall be entitled to deal with the Depositary, and any nominee thereof, that is the registered Holder of any Global Security for all purposes of this Purchase Contract Agreement relating to such Global Security (including the payment or delivery of amounts due hereunder and the giving of instructions or directions by or to any Beneficial Owner) as the sole Holder of such Global Security and shall have no obligations to the Beneficial Owners thereof. None of the Purchase Contract Agent, the Trustee, the Paying Agent and the Security Registrar shall have any responsibility or liability for any acts or omissions of the Depositary with respect to such Global Security, for the records of any such Depositary, including records in respect of the Beneficial Owners of any such Global Security, for any transactions between the Depositary and any agent member or between or among the Depositary, any such agent member and/or any Holder or Beneficial Owner of such Global Security, or for any transfers of beneficial interests in any such Global Security.

 

Notwithstanding anything to the contrary in the foregoing, with respect to any Global Security, nothing contained herein shall prevent the Company, the Purchase Contract Agent, the Trustee or any agent of the Company, the Purchase Contract Agent or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depositary (or its nominee), as a Holder, with respect to such Global Security or shall impair, as between such Depositary and the related Beneficial Owner, the operation of customary practices governing the exercise of rights of the Depositary (or its nominee) as Holder of such Global Security.

 

None of the Purchase Contract Agent, the Trustee, the Paying Agent or the Security Registrar shall have any obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Purchase Contract Agreement or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among participants of DTC or members or Beneficial Owners in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are

 

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expressly required by, and to do so if and when expressly required by, the terms of this Purchase Contract Agreement, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

Section 3.12.   Cancellation.

 

All Securities surrendered for separation or recreation and all Equity-Linked Securities surrendered for settlement or redemption or upon the registration of transfer or exchange of an Equity-Linked Security shall, if surrendered to any Person other than the Purchase Contract Agent, be delivered to the Purchase Contract Agent and, if not already cancelled, be promptly cancelled by it;  provided, however, that the Purchase Contract Agent shall deliver any Notes or Separate Notes so surrendered to it to the Trustee and Paying Agent (as defined in the Indenture) for disposition in accordance with the provisions of the Indenture. The Company may at any time deliver to the Purchase Contract Agent for cancellation any Equity-Linked Securities previously executed, authenticated and delivered hereunder that the Company may have acquired in any manner whatsoever, and all Equity-Linked Securities so delivered shall, upon an Issuer Order, be promptly cancelled by the Purchase Contract Agent;  provided, however, that if the Equity-Linked Securities so delivered are Units, the Purchase Contract Agent shall deliver the Notes comprising such Units to the Trustee and Paying Agent (as defined in the Indenture) for disposition in accordance with the provisions of the Indenture. No Equity-Linked Securities shall be executed, authenticated on behalf of the Holder and delivered in lieu of or in exchange for any Equity-Linked Securities cancelled as provided in this Section 3.12, except as expressly permitted by this Purchase Contract Agreement. All cancelled Equity-Linked Securities held by the Purchase Contract Agent shall be disposed of in accordance with its customary practices.

 

If the Company or any Affiliate of the Company shall acquire any Equity-Linked Security, such acquisition shall not operate as a cancellation of such Equity-Linked Security unless and until such Equity-Linked Security is delivered to the Purchase Contract Agent for cancellation, in which case such Equity-Linked Security shall be accompanied by an Issuer Order and cancelled in accordance with the immediately preceding paragraph.

 

ARTICLE IV
 SETTLEMENT OF THE PURCHASE CONTRACTS

 

Section 4.01.   Settlement Amount.

 

Each Purchase Contract obligates the Company to deliver, on the third Business Day immediately following the last VWAP Trading Day of the Observation Period, a number of shares of Common Stock (subject to Section 4.05 and Article V) equal to the Settlement Amount for such Purchase Contract, as determined by the Company (a “Mandatory Settlement”), unless such Purchase Contract previously settles early at the option of Holders pursuant to Section 4.04 or Section 5.02 or at the option of the Company pursuant to Section 4.07 or is redeemed by the Company pursuant to Section 4.08.

 

The “Settlement Amount” per Purchase Contract is equal to the sum of the Daily Settlement Amounts for each of the 20 consecutive VWAP Trading Days during the relevant Observation Period.

 

The “Daily Settlement Amount” means for each Purchase Contract and for each of the 20 consecutive VWAP Trading Days during the relevant Observation Period:

 

(i)            if the Daily VWAP of the Common Stock is equal to or greater than $19.92 per Share, subject to adjustment as provided herein (the “Threshold Appreciation Price”), a number of shares of Common Stock equal to (i) 5.0201 shares of Common Stock, subject to adjustment as provided herein (the “Minimum Settlement Rate”) divided by (ii) 20;

 

(ii)           if the Daily VWAP of the Common stock is less than the Threshold Appreciation Price but greater than $16.13 per Share, subject to adjustment as provided herein (the “Reference Price”), a number of shares of Common Stock equal to (i) the Unit Stated Amount divided by the Daily VWAP divided by (ii) 20; and

 

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(iii)          if the Daily VWAP of the Common Stock is less than or equal to the Reference Price, a number of shares of Common Stock equal to (i) 6.1996 shares of Common Stock, subject to adjustment as provided herein (the “Maximum Settlement Rate”) divided by (ii) 20.

 

The Company shall give notice of the Settlement Amount to the Purchase Contract Agent and Holders no later than the Close of Business on the Business Day immediately following the last VWAP Trading Day of the Observation Period.

 

Section 4.02.   Representations and Agreements of Holders and Beneficial Owners.

 

Each Holder of a Unit or Separate Purchase Contract by its acceptance thereof, and each beneficial owner (for U.S. federal income tax purposes) of a Unit or Separate Purchase Contract by its acquisition, will be deemed to have:

 

(i)            irrevocably authorized and directed the Purchase Contract Agent to execute and deliver on its behalf and perform the Purchase Contract Agreement on its behalf, and appointed the Purchase Contract Agent as its attorney-in-fact for any and all such purposes;

 

(ii)           in the case of a Purchase Contract that is a component of a Unit, or that is evidenced by a Separate Purchase Contract, irrevocably authorized and directed the Purchase Contract Agent to execute, deliver and hold on its behalf the Separate Purchase Contract or the Component Purchase Contract evidencing such Purchase Contract, and appointed the Purchase Contract Agent as its attorney-in-fact for any and all such purposes;

 

(iii)          consented to, and agreed to be bound by, the terms and provisions of this Purchase Contract Agreement;

 

(iv)          represented that either (1) no portion of the assets used by such purchaser or subsequent transferee to acquire and hold the Units or any interest therein constitutes assets of any (A) “employee benefit plan” (as defined under Section 3(3) of Title I of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) that is subject to Title I of ERISA, (B) plan, individual retirement account or other arrangement that is subject to Section 4975 of the Code or provisions under any federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of the Code or ERISA (collectively, “Similar Laws”) or (C) entity whose underlying assets are considered to include “plan assets” of such plan, account or arrangement by reason of such plan’s, account’s or arrangement’s investment in such entity or (2) the purchase and holding of the Units (or either of the Purchase Contracts or Notes that are components thereof) and its acquiring of shares of Common Stock upon settlement of the Purchase Contracts, as the case may be, will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a similar violation of any applicable Similar Laws; and

 

(v)           in the case of a Unit, agreed, for all purposes, including U.S. federal income tax purposes, to treat (1) a Unit as an investment unit composed of two separate instruments, in accordance with the form of Unit attached hereto as Exhibit A, (2) the Notes as indebtedness of the Company and (3) the allocation of the Unit Stated Amount between the Purchase Contract and the Note component of such Unit so that the initial tax basis in such Purchase Contract will be $81.05089 and the initial tax basis in such Note will be $18.94911.

 

Section 4.03.   Delivery Upon Settlement of the Purchase Contracts.

 

(a)           On each applicable Settlement Date (or, with respect to an Early Settlement Exercise Date, an Acquisition Redemption Settlement Date or a Fundamental Change Early Settlement Date, on the date provided for in the first sentence of Section 4.04(c), in Section 4.08(c) or in Section 5.02(f), respectively), the Company shall issue and deliver to the Holders of the Outstanding Purchase Contracts (or their designees), the aggregate number of shares of Common Stock (and cash in lieu of fractional shares of Common Stock to which such Holders are

 

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entitled hereunder), registered, in the case of any shares of Common Stock, in the name of such Holders or their designees (such cash and shares of Common Stock, together with any dividends or distributions with respect to such shares for which a Record Date and payment date for such dividend or distribution have occurred on or after the applicable Determination Date, the “Purchase Contract Settlement Fund”).  When any cash is required to be delivered to Holders pursuant to this Article IV or Section 5.02, the Purchase Contract Agent shall deliver such cash, including any dividends or distributions with respect to the shares constituting part of the Purchase Contract Settlement Fund (but without interest thereon) to such Holders, in accordance with the written direction of the Company.

 

(b)           On the applicable Settlement Date, upon (i) surrender of the Units or Separate Purchase Contracts by book entry transfer or by delivery of any Units or Separate Purchase Contracts in definitive form to the Purchase Contract Agent duly endorsed for transfer to the Company or in blank and with duly completed settlement instructions in the form attached thereto, or if such Purchase Contract is represented by a Global Security, surrendering the relevant Security (or causing a reduction in the number of Purchase Contracts represented thereby, if applicable) in compliance with the standing arrangements between the Depositary and the Purchase Contract Agent, and (ii) the payment of any transfer or similar taxes payable pursuant to Section 4.03(c), the Company shall transfer the shares of Common Stock deliverable upon settlement of such Purchase Contracts, together with (i) cash in lieu of fractional shares as provided in Section 4.05, (ii) the Separate Note (in the case of the transfer or delivery of Units, but not in the case of settlement on the Mandatory Settlement Date if such Separate Note matures on the Mandatory Settlement Date) and (iii) any dividends or distributions with respect to such shares constituting part of the Purchase Contract Settlement Fund, but without any interest thereon, to such Holder by book-entry transfer, or other appropriate procedures, in accordance with such instructions.

 

(c)           The shares of Common Stock deliverable upon settlement of the Purchase Contracts shall be registered in the name of the Holder or the Holder’s designee as specified in the settlement instructions provided by the Holder to the Purchase Contract Agent, and the Company shall pay all stock transfer and similar taxes attributable to the delivery thereof, unless any such transfer or similar tax is payable in respect of any registration of such shares in a name of a Person other than the Person in whose name the Security evidencing such Purchase Contract is registered, in which case the Company shall not be required to pay any such transfer or similar taxes and no such registration shall be made unless the Person requesting such registration has paid any such transfer or similar taxes required by reason of such registration in a name of a Person other than the Person in whose name the Security evidencing such Purchase Contract is registered or has established to the satisfaction of the Company that such tax either has been paid or is not payable.

 

In the event a Holder fails to effect surrender or delivery of its Units or Separate Purchase Contracts in accordance with the provisions hereof, the shares of Common Stock deliverable upon settlement of such Purchase Contracts, and any distributions thereon, shall be held in the name of the Purchase Contract Agent or its nominee in trust for the benefit of such Holder, until the earlier to occur of:

 

(i)            the surrender of the relevant Units or Separate Purchase Contracts for settlement in accordance with the provisions hereof or receipt by the Company and the Purchase Contract Agent from such Holder of satisfactory evidence that such Units or Separate Purchase Contracts have been destroyed, lost or stolen, together with any indemnity that may be required by the Purchase Contract Agent and the Company; and

 

(ii)           the passage of two years from the applicable Settlement Date, following which the Purchase Contract Agent shall pay to the Company such Holder’s shares of Common Stock and any distributions thereon;  provided, however, that the Purchase Contract Agent, before making any such payment to the Company, may at the expense of the Company cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in The Borough of Manhattan, The City of New York, New York, notice that such property remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such property then remaining will be repaid to the Company. After payment to the Company, (A) Holders entitled to such property must look to the Company for payment as general creditors, unless applicable abandoned property law designates another person, and (B) all liability of the Purchase Contract Agent with respect to such property shall cease.

 

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Section 4.04.   Early Settlement.

 

(a)           Subject to and upon compliance with the provisions of this Section 4.04, on any Business Day during the period beginning on, and including, the Business Day immediately following the Issue Date to, but excluding, the third Business Day immediately preceding the Scheduled Mandatory Settlement Date, a Holder of a Unit or Separate Purchase Contract may elect to settle its Purchase Contracts early, in whole or in part (an “Early Settlement”) at the Early Settlement Rate per Purchase Contract.

 

(b)           A Holder’s right to receive shares of Common Stock, together with cash in lieu of fractional shares as provided in Section 4.05, upon Early Settlement of any of its Purchase Contracts is subject to the following conditions:

 

(i)            delivery of a written and signed notice of election (an “Early Settlement Notice”) in the form attached to the Purchase Contract to the Purchase Contract Agent and Company electing Early Settlement of such Purchase Contract (or, in the case of a Global Purchase Contract or a Component Purchase Contract, delivery of notice of such election in accordance with the Applicable Procedures);

 

(ii)           if such Purchase Contract or the Unit that includes such Purchase Contract is in the form of a Definitive Security, surrendering the relevant Definitive Security to the Purchase Contract Agent at the Corporate Trust Office duly endorsed for transfer to the Company or in blank and with duly completed settlement instructions in the form attached thereto, or if such Purchase Contract is represented by a Global Security, surrendering the relevant Security (or causing a reduction in the number of Purchase Contracts represented thereby, if applicable) in compliance with the standing arrangements between the Depositary and the Purchase Contract Agent; and

 

(iii)          payment by such Holder of any transfer or similar taxes payable in connection with the issuance of Common Stock to any Person other than such Holder pursuant to Section 4.04(c) below.

 

The first Business Day on which a Holder complies with the requirements set forth in clauses (i) through (iii) above before the Close of Business on such Business Day shall be considered the “Early Settlement Exercise Date.”

 

(c)           Upon surrender or book-entry transfer of Purchase Contracts or the related Units in accordance with Section 4.03, the Company shall cause a number of shares of Common Stock, per Purchase Contract or Unit, as applicable, equal to the Early Settlement Rate to be issued and delivered, together with payment in lieu of any fraction of a share as provided in Section 4.05, on or prior to the third Business Day following the Early Settlement Exercise Date.  Such shares shall be registered in the name of the Holder or the Holder’s designee, and shall be delivered as specified on the applicable Election to Settle Early form substantially in the form attached to Exhibit A or Exhibit B, as applicable, provided by the Holder to the Company and the Purchase Contract Agent. If any shares of Common Stock deliverable in respect of a Purchase Contract are to be registered to a Person other than the Person in whose name the Security evidencing such Purchase Contract is registered, no such registration shall be made unless the Person requesting such registration has paid any transfer and other taxes required by reason of such registration in a name other than that of the registered Holder of the certificate evidencing such Purchase Contract or has established to the satisfaction of the Company that such tax either has been paid or is not payable.

 

(d)           In the event that Early Settlement is effected with respect to Purchase Contracts that are a component of Units, upon such Early Settlement the Company shall execute and the Trustee shall authenticate (pursuant to the Indenture) on behalf of the Holder thereof and deliver to the Holder thereof, at the expense of the Company, a number of Separate Notes, in same form as the Notes comprising part of the Units, equal to the number of Purchase Contracts as to which Early Settlement was effected.

 

(e)           In the event that Early Settlement is effected with respect to Purchase Contracts represented by less than all the Purchase Contracts evidenced by a Security, upon such Early Settlement the Company shall execute and the Purchase Contract Agent and Trustee shall authenticate on behalf of the Holder and deliver to the

 

26

 

Holder thereof, at the expense of the Company, one or more Securities evidencing the Purchase Contracts (and, if applicable, Notes) as to which Early Settlement was not effected.

 

Section 4.05.   No Fractional Shares.

 

The Company shall deliver cash in lieu of any fractional share of Common Stock issuable upon settlement of the Units or Separate Purchase Contracts based on the (i) Closing Price on the relevant Acquisition Redemption Settlement Date, Early Settlement Exercise Date or Early Mandatory Relevant Date, as applicable, or, if such date is not a Trading Day, the immediately preceding Trading Day (in the case of an Early Settlement or an Early Mandatory Settlement, as applicable) or (ii) Daily VWAP on the last VWAP Trading Day of the Observation Period (in the case of a Mandatory Settlement). The Company will calculate the whole number of shares of Common Stock and the amount of any fractional share of Common Stock due upon settlement of a Unit or a Separate Purchase Contract based on the aggregate number of Units or Separate Purchase Contracts being settled by each Holder with the same Early Settlement Exercise Date, Early Mandatory Relevant Date or Observation Period, as applicable, or based on such other aggregate number of Units or Separate Purchase Contracts being settled in respect of the same Early Settlement Exercise Date, Early Mandatory Relevant Date or Observation Period, as applicable, as DTC may otherwise request.

 

Section 4.06.   Acceleration of the Mandatory Settlement Date.

 

If a Bankruptcy Event occurs on any day (such day the “Acceleration Date”), the Mandatory Settlement Date for each Unit or Separate Purchase Contract shall automatically be accelerated to the Acceleration Date and Holders of Purchase Contracts shall be entitled to receive, upon settlement of the Purchase Contracts on such Acceleration Date, a number of shares of Common Stock equal to the Maximum Settlement Rate in effect immediately prior to such acceleration (regardless of the market value of Common Stock).  The Company shall cause to be delivered the shares of Common Stock or Units of Reference Property, as the case may be, as a result of any such acceleration of the Mandatory Settlement Date in accordance with the provisions set forth in Section 4.03, except that (i) such delivery shall be made on the accelerated Mandatory Settlement Date, and (ii) the Person in whose name any shares of Common Stock shall be issuable following such acceleration shall become the holder of record of such shares as of the Close of Business on the Acceleration Date.

 

Section 4.07.   Early Mandatory Settlement at the Company’s election.

 

(a)           The Company has the right (the “Early Mandatory Settlement Right”) to settle (the “Early Mandatory Settlement”) the Purchase Contracts early, whether as components of the Units or Separate Purchase Contracts, in whole but not in part, on a date (the “Early Mandatory Settlement Date”) fixed by the Company at the Early Mandatory Settlement Rate.  The “Early Mandatory Settlement Rate” is the Maximum Settlement Rate in effect immediately prior to the Close of Business on the third Business Day immediately preceding the date on which the Company provides the Early Mandatory Settlement Notice to the Purchase Contract Agent, the Trustee and the Holders (the “Early Mandatory Settlement Notice Date”) (such Business Day, the “Early Mandatory Relevant Date”), provided that, for the avoidance of doubt, the Early Mandatory Settlement Rate shall continue to be subject to adjustments as provided in Section 5.01 herein for any events described therein that occur prior to the Early Mandatory Settlement Date.

 

(b)           If the Company elects to exercise its Early Mandatory Settlement Right, the Company shall provide the Purchase Contract Agent, the Trustee and the Holder of Units, Separate Purchase Contracts and Separate Notes with a notice of its election (the “Early Mandatory Settlement Notice”), issue a press release announcing its election and post such press release on its Web site.  The Early Mandatory Settlement Notice shall specify:

 

(i)            the applicable Early Mandatory Settlement Rate;

 

(ii)           the Early Mandatory Settlement Date, which shall be at least 20 but not more than 35 Business Days following the Early Mandatory Settlement Notice Date (and which shall be required to fall on the Repurchase Date);

 

27

 

(iii)          that Holders of Units and Separate Notes will have the right to require the Company to repurchase their Notes that are a component of the Units or their Separate Notes, as the case may be, pursuant to and in accordance with the Indenture;

 

(iv)          the Repurchase Price and Repurchase Date;

 

(v)           the last date on which Holders may exercise their Repurchase Right;

 

(vi)          the procedures that Holders must follow hereunder and under the Indenture to require the Company to repurchase their Notes;

 

(vii)         if any outstanding Securities are Definitive Securities, the name and address of the Purchase Contract Agent; and

 

(viii)        any other information the Company determines to be appropriate.

 

(c)           In the event that the Early Mandatory Settlement Right is exercised with respect to Purchase Contracts that are a component of any Units, upon the relevant Early Mandatory Settlement Date, the Company shall execute and the Trustee shall authenticate (pursuant to the Indenture) on behalf of the Holder and deliver to the Holder thereof, at the expense of the Company, Separate Notes in the same form and in the same number as the Notes comprising part of such Units; provided, however, that if the Repurchase Date occurs prior to the Early Mandatory Settlement Date, any Holder exercising the Repurchase Right shall surrender the Units on the Repurchase Date and the Company shall execute, and the Purchase Contract Agent shall authenticate, Separate Purchase Contracts in the same form and in the same number as the Purchase Contracts comprising part of such Units, such Separate Purchase Contracts to be settled on the Early Mandatory Settlement Date.

 

Section 4.08.   Acquisition Termination Redemption

 

(a)           If the Acquisition Agreement has been terminated on or prior to June 1, 2017, the Company may elect to redeem all, but not less than all, of the Outstanding Purchase Contracts, on the terms described in this Section 4.08 (an “Acquisition Termination Redemption”), by delivering notice within the five Business Days immediately following the date of such termination (such notice, the “Acquisition Redemption Notice”) in the manner specified in Section 4.08(b).

 

(b)           In the event of an Acquisition Termination Redemption, the Company shall provide the Purchase Contract Agent, the Trustee and the Holders of Units, Separate Purchase Contracts and Separate Notes with the Acquisition Redemption Notice, issue a press release announcing its election and post such press release on its website. The Acquisition Redemption Notice shall specify:

 

(i)            the Acquisition Termination Stock Price;

 

(ii)           the Scheduled Acquisition Redemption Settlement Date;

 

(iii)          if the Redemption Amount will be determined pursuant to Section 4.08(c)(i), the Redemption Amount;

 

(iv)          if the Redemption Amount will be determined pursuant to Section 4.08(c)(ii), the Acquisition Redemption Rate, and, if applicable, the number of shares of Common Stock that would otherwise be included in the applicable Redemption Amount that will be replaced with cash;

 

(v)           that Holders of Units and Separate Notes will have the right to require the Company to repurchase their Notes that are a component of the Units or their Separate Notes, as the case may be, pursuant to and in accordance with the Indenture;

 

(vi)          the Repurchase Price and Repurchase Date;

 

28

 

(vii)         the last date on which Holders may exercise their Repurchase Right;

 

(viii)        the procedures that Holders must follow hereunder and under the Indenture to require the Company to repurchase their Notes;

 

(ix)          if any outstanding Securities are Definitive Securities, the name and address of the Purchase Contract Agent; and

 

(x)           any other information the Company determines to be appropriate.

 

If the Company does not specify a number of shares of Common Stock that will be replaced with cash in the Acquisition Redemption Notice, the Company shall be deemed to have elected to settle the Redemption Amount solely in shares.

 

(c)           In the event of an Acquisition Termination Redemption, the Company shall deliver the applicable Redemption Amount on the Acquisition Redemption Settlement Date. The “Redemption Amount” shall mean:

 

(i)            if the Acquisition Termination Stock Price is equal to or less than the Reference Price, an amount of cash per Purchase Contract equal to (x) the Unit Stated Amount less (y) the applicable Repurchase Price; or

 

(ii)           if the Acquisition Termination Stock Price is greater than the Reference Price, a number of shares of Common Stock per Purchase Contract equal to the Acquisition Redemption Rate determined by reference to the table set forth in Section 4.08(e); provided that the Company may elect to pay cash in lieu of any or all of such shares of Common Stock in an amount equal to such number of shares multiplied by the Redemption Market Value; provided further that, if the Company so elects to pay cash, the Company shall specify in the Acquisition Redemption Notice the number of shares of Common Stock that will be replaced with cash.

 

The Company shall cause any shares referred to in clause (ii) above to be issued and delivered, together with payment of (a) any cash payable in lieu of fractional shares pursuant to Section 4.05 and (b) any dividends or distributions with respect to such shares constituting part of the Purchase Contract Settlement Fund (but without any interest thereon), to the applicable Holder by book-entry transfer or other appropriate procedures pursuant to Section 4.03. The Person in whose name any shares of the Common Stock shall be issuable pursuant to an Acquisition Termination Redemption shall become the holder of record of such shares as of the close of business: (x) on the date of the Acquisition Redemption Notice, if the Company has elected (or is deemed to have elected) to settle the Redemption Amount solely in shares of Common Stock, or (y) on the last Trading Day of the 20 consecutive Trading Day period used to determine the Redemption Market Value, if the Acquisition Termination Stock Price is greater than the Reference Price and the Company elects to pay cash in lieu of any but not all shares of Common Stock that would otherwise be included in the Redemption Amount.

 

(d)           The table below sets forth the “Acquisition Redemption Rate” per Purchase Contract for each Acquisition Termination Stock Price and termination date. The Acquisition Termination Stock Prices set forth in the first column of the table below shall be adjusted as of any date on which the Fixed Settlement Rates are otherwise adjusted. The adjusted Acquisition Termination Stock Prices shall equal the Acquisition Termination Stock Prices applicable immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the applicable Fixed Settlement Rate immediately prior to the adjustment giving rise to the Acquisition Termination Stock Price adjustment and the denominator of which is such Fixed Settlement Rate as so adjusted. The Acquisition Redemption Rates per Purchase Contract in the table in Section 4.08(e) shall be adjusted at the same time and in the same manner as the Fixed Settlement Rates as set forth in Section 5.01.

 

(e)           The following table sets forth the Acquisition Redemption Rate per Purchase Contract for each Acquisition Termination Stock Price and termination date set forth below; provided, that if the applicable Acquisition Termination Stock Price is equal to or less than the Reference Price, the Acquisition Redemption Rate will be determined pursuant to Section 4.08(c)(ii):

 

29

 

	
 
    	
 
    	
Acquisition Termination Stock Price
    	
 
    
	
Termination date
    	
 
    	
$16.13
    	
 
    	
$18.00
    	
 
    	
$19.92
    	
 
    	
$25.00
    	
 
    	
$30.00
    	
 
    	
$35.00
    	
 
    	
$40.00
    	
 
    	
$50.00
    	
 
    
	
June 21, 2016
    	
 
    	
5.3341
    	
 
    	
5.2758
    	
 
    	
5.2268
    	
 
    	
5.1359
    	
 
    	
5.0821
    	
 
    	
5.0488
    	
 
    	
5.0277
    	
 
    	
5.0201
    	
 
    
	
October 1, 2016
    	
 
    	
5.3540
    	
 
    	
5.2917
    	
 
    	
5.2393
    	
 
    	
5.1425
    	
 
    	
5.0858
    	
 
    	
5.0512
    	
 
    	
5.0296
    	
 
    	
5.0201
    	
 
    
	
January 1, 2017
    	
 
    	
5.3731
    	
 
    	
5.3067
    	
 
    	
5.2509
    	
 
    	
5.1480
    	
 
    	
5.0884
    	
 
    	
5.0527
    	
 
    	
5.0307
    	
 
    	
5.0201
    	
 
    
	
April 1, 2017
    	
 
    	
5.3931
    	
 
    	
5.3222
    	
 
    	
5.2624
    	
 
    	
5.1529
    	
 
    	
5.0903
    	
 
    	
5.0535
    	
 
    	
5.0313
    	
 
    	
5.0201
    	
 
    
	
July 1, 2017
    	
 
    	
5.4151
    	
 
    	
5.3387
    	
 
    	
5.2744
    	
 
    	
5.1571
    	
 
    	
5.0913
    	
 
    	
5.0534
    	
 
    	
5.0312
    	
 
    	
5.0201
    	
 
    

 

The exact Acquisition Termination Stock Prices and termination date may not be set forth in the table above, in which case:

 

(i)            if the applicable Acquisition Termination Stock Price is between two Acquisition Termination Stock Prices in the table or the termination date is between two termination dates in the table, the Acquisition Redemption Rate shall be determined by straight-line interpolation between the Acquisition Redemption Rates set forth for the higher and lower Acquisition Termination Stock Prices and the two termination dates, as applicable, based on a 365-day year; or

 

(ii)           if the applicable Acquisition Termination Stock Price is in excess of $50.00 per share (subject to adjustment at the same time and in the same manner as the Acquisition Termination Stock Prices set forth in the table above), then the Acquisition Redemption Rate will be the Minimum Settlement Rate.

 

ARTICLE V
 ADJUSTMENTS

 

Section 5.01.   Adjustments to the Fixed Settlement Rates.

 

(a)           Each Fixed Settlement Rate shall be subject to the following adjustments:

 

(i)            Stock Dividends and Distributions. If the Company exclusively issues shares of Common Stock as a dividend or other distribution on all or substantially all shares of Common Stock, or if the Company effects a share split or share combination, each Fixed Settlement Rate will be adjusted based on the following formula:

 

where,

 

	
FR0
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately prior to the Open of Business on the Ex-Dividend Date of such   dividend or distribution, or immediately prior to the Open of Business on the   effective date of such share split or combination, as applicable;
    
	
 
    	
 
    	
 
    
	
FR1
    	
=
    	
the applicable Fixed   Settlement Rate in effect immediately after the Open of Business on such   Ex-Dividend Date or such effective date, as applicable;
    
	
 
    	
 
    	
 
    
	
OS0
    	
=
    	
the number of shares of   Common Stock outstanding immediately prior to the Open of Business on such   Ex-Dividend Date or such effective date, as applicable; and
    
	
 
    	
 
    	
 
    
	
OS1
    	
=
    	
the number of shares of   Common Stock outstanding immediately after giving effect to such dividend,   distribution, share split or share combination, as applicable.
    

 

Any adjustment made under this Section 5.01(a)(i) shall become effective immediately after the Open of Business on the Ex-Dividend Date for such dividend or distribution, or immediately after the Open of Business on the effective date for such share split or share combination, as the case may be.  If any dividend or distribution of the type described in this Section 5.01(a)(i) is declared but not so paid or made,

 

30

 

each Fixed Settlement Rate shall be immediately readjusted, effective as of the date the Board of Directors determines not to pay such dividend or distribution, to the applicable Fixed Settlement Rate that would then be in effect if such dividend or distribution had not been declared.

 

(ii)           Issuance of Stock Purchase Rights. If the Company issues to all or substantially all holders of Common Stock rights any rights, options or warrants entitling them, for a period of not more than 60 days after the date of such issuance, to subscribe for or purchase shares of Common Stock, at a price per share less than the average of the Closing Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement of such issuance, each Fixed Settlement Rate will be increased based on the following formula:

 

 

	
where,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FR0
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately prior to the Open of Business on the Ex-Dividend Date for such   issuance;
    
	
 
    	
 
    	
 
    
	
FR1
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately after the Open of Business on such Ex-Dividend Date;
    
	
 
    	
 
    	
 
    
	
OS0
    	
=
    	
the number of shares of Common Stock outstanding   immediately prior to the Open of Business on such Ex-Dividend Date;
    
	
 
    	
 
    	
 
    
	
X
    	
=
    	
the total number of shares of Common Stock issuable   pursuant to such rights, options or warrants; and
    
	
 
    	
 
    	
 
    
	
Y
    	
=
    	
the number of shares of Common Stock equal to the   aggregate price payable to exercise such rights, options or warrants divided by the average of the Closing Prices of the Common   Stock over the 10 consecutive Trading Day period ending on, and including,   the Trading Day immediately preceding the date of announcement of the   issuance of such rights, options or warrants.
    

 

Any increase made under this Section 5.01(a)(ii) shall be made successively whenever any such rights, options or warrants are issued and shall become effective immediately after the Open of Business on the Ex-Dividend Date for such issuance.  To the extent that such rights, options or warrants are not exercised prior to their expiration or shares of Common Stock are not delivered upon the expiration of such rights, options or warrants, each Fixed Settlement Rate shall be readjusted to the applicable Fixed Settlement Rate that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the number of shares of Common Stock actually delivered.  If such rights, options or warrants are not so issued, or if no such rights, options or warrants are exercised prior to their expiration, each Fixed Settlement Rate shall be decreased to be the applicable Fixed Settlement Rate that would then be in effect if such Ex-Dividend Date if such issuance had not occurred.

 

For purposes of this Section 5.01(a)(ii), in determining whether any rights, options or warrants entitle the holders of the Common Stock to subscribe for or purchase shares of Common Stock at a price per share less than such average of the Closing Prices of the Common Stock for the 10 consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the date of announcement for such issuance, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company for such rights, options or warrants and any amount payable on exercise thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors.

 

31

 

(iii)          Asset or Debt Distribution. If the Company distributes shares of its Capital Stock, evidences of its indebtedness, other assets or property of the Company or rights, options or warrants to acquire shares of its Capital Stock or other securities, to all or substantially all holders of the Common Stock, excluding:

 

(A)          dividends or distributions, rights options or warrants as to which an adjustment was effected pursuant to Section 5.01(a)(i) hereof or Section 5.01(a)(ii) hereof;

 

(B)          dividends or distributions paid exclusively in cash as to which an adjustment was effected pursuant to Section 5.01(a)(iv) hereof; and

 

(C)          Spin-Offs as to which the provisions set forth below in this Section 5.01(a)(iii) shall apply;

 

then each Fixed Settlement Rate shall be increased based on the following formula:

 

 

	
where,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FR0
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately prior to the Open of Business on the Ex-Dividend Date for such   distribution;
    
	
 
    	
 
    	
 
    
	
FR1
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately after the Open of Business on such Ex-Dividend Date;
    
	
 
    	
 
    	
 
    
	
SP0
    	
=
    	
the average of the Closing Prices of Common Stock   over the 10 consecutive Trading Day period ending on, and including, the   Trading Day immediately preceding the Ex-Dividend Date for such distribution;   and
    
	
 
    	
 
    	
 
    
	
FMV
    	
=
    	
the Fair Market Value of the shares of Capital   Stock, evidences of indebtedness, other assets, or property of the Company or   rights, options or warrants to acquire shares of the Company’s Capital Stock   or other securities distributed with respect to each outstanding share of the   Common Stock as of the Open of Business on the Ex-Dividend Date for such   distribution.
    

 

If “FMV” (as defined above) is equal to or greater than the “SP0” (as defined above), in lieu of the foregoing increase, each Holder of a Unit and Separate Purchase Contract shall receive, in respect of each Unit and Separate Purchase Contract, as applicable, it holds, at the same time and upon the same terms as holders of the Common Stock, the amount and kind of the Company’s Capital Stock, evidences of the Company’s indebtedness, other assets or property of the Company or rights, options or warrants to acquire Company’s Capital Stock or other securities that such Holder would have received as if such Holder owned a number of shares of Common Stock equal to the Maximum Settlement Rate in effect immediately prior to the Record Date for such distribution.

 

Any increase made under the portion of this Section 5.01(a)(iii) above shall become effective immediately after the Open of Business on the Ex-Dividend Date for such distribution.  If such distribution (including a Spin-Off as defined below) is not so paid or made, each Fixed Settlement Rate shall be decreased to be the applicable Fixed Settlement Rate that would then be in effect if such dividend or distribution had not been declared.  In the case of rights, options or warrants to acquire shares of the Company’s Capital Stock or other securities, to the extent that such rights, options or warrants are not exercised prior to their expiration or the Company’s Capital Stock or other securities are not delivered upon the expiration of such rights, options or warrants, each Fixed Settlement Rate shall be readjusted to the applicable Fixed Settlement Rate that would then be in effect had the increase with respect to the issuance of such rights, options or warrants been made on the basis of delivery of only the Company’s Capital Stock or other securities actually delivered.  If such rights, options or warrants are not so issued, or if no such

 

32

 

rights, options or warrants are exercised prior to their expiration, each Fixed Settlement Rate shall be decreased to be the applicable Fixed Settlement Rate that would then be in effect if such issuance had not occurred.

 

With respect to an adjustment pursuant to this Section 5.01(a)(iii) where there has been a payment of a dividend or other distribution on the Common Stock of shares of Capital Stock of any class or series, or similar equity interest, of or relating to any of the Company’s Subsidiaries or business units, and such Capital Stock or similar equity interest is listed or quoted (or will be listed or quoted upon the consummation of the distribution) on a U.S. national securities exchange or a reasonably comparable non-U.S. equivalent (a “Spin-Off”), the each Fixed Settlement Rate will be increased based on the following formula:

 

 

	
where,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FR0
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately prior to the Open of Business on the Ex-Dividend Date for such   Spin-Off;
    
	
 
    	
 
    	
 
    
	
FR1
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately after the Open of Business on the Ex-Dividend Date for such   Spin-Off;
    
	
 
    	
 
    	
 
    
	
FMV0
    	
=
    	
the average of the Closing Prices of the Capital   Stock or similar equity interest distributed to holders of Common Stock   applicable to one share of Common Stock over the first 10 consecutive Trading   Day period after, but excluding, the effective date of the Spin-Off (the “Valuation Period”); and
    
	
 
    	
 
    	
 
    
	
MP0
    	
=
    	
the average of the Closing Prices of the Common   Stock over the Valuation Period.
    

 

If the first VWAP Trading Day of the Observation Period applicable to the settlement of relevant Units or Separate Purchase Contracts, as the case may be, occurs after the first Trading Day of the Valuation Period for a Spin-Off, but on or before the last Trading Day of the Valuation Period for such Spin-Off, the reference in the above definition of “FMV0” to 10 consecutive Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the first Trading Day of the Valuation Period for such Spin-Off to, but excluding, the first VWAP Trading Day of such Observation Period.  If one or more VWAP Trading Days of the Observation Period applicable to the settlement of the relevant Unit or Separate Purchase Contract, as the case may be, occurs on or after the Ex-Dividend Date for a Spin-Off but on or prior to the first Trading Day of the Valuation Period for such Spin-Off, such Observation Period will be suspended from, and including, the first such VWAP Trading Day to, and including, the first Trading Day of the Valuation Period for such Spin-Off and will resume immediately after the first Trading Day of the Valuation Period for such Spin-Off, with the reference in the above definition of “FMV0” to 10 consecutive Trading Days deemed replaced with a reference to one (1) Trading Day.

 

In addition, if an Early Settlement Exercise Date or the Early Mandatory Relevant Date occurs during the period from, but excluding, the first Trading Day of the Valuation Period for a Spin-Off to, and including, the last Trading Day of the Valuation Period for such Spin-Off, the reference in the above definition of “FMV0” to “10” consecutive Trading Days shall be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the first Trading Day of the Valuation Period for such Spin-Off to, but excluding, the applicable Early Settlement Exercise Date or Early Mandatory Relevant Date, as applicable.  If an Early Settlement Exercise Date or Early Mandatory Relevant Date occurs during the period from, and including, the Ex-Dividend Date of a Spin-Off to, and including, the first Trading Day of the Valuation Period for such Spin-Off, (i) the reference in the above definition of “FMV0” to “10” consecutive Trading Days shall be deemed replaced with a reference to “one (1)” Trading Day, (ii) the Company shall deliver the consideration due to such Holder in respect of the applicable Early

 

33

 

Settlement or Early Mandatory Settlement, as applicable on the third Business Day after the first Trading Day of the Valuation Period for such Spin-Off, (iii) the relevant Fixed Settlement Rates, Early Mandatory Settlement Rate and Fundamental Change Early Settlement Rate, as the case may be, applicable to such Early Settlement or Early Mandatory Settlement, as applicable, shall be such respective Fixed Settlement Rates or Fundamental Change Early Settlement Rate in effect immediately prior to the Close of Business on the first Trading Day of the Valuation Period for such Spin-Off and (iv) the person in whose name any shares of Common Stock shall be issuable in respect of the applicable Early Settlement or Early Mandatory Settlement, as applicable, shall be deemed to become the holder of record of such shares as of the Close of Business on the first Trading Day of the Valuation Period for such Spin-Off.

 

For purposes of the second adjustment set forth in this Section 5.01(a)(iii), (i) the Closing Price of any Capital Stock or similar equity interest shall be calculated by the Company in a manner analogous to that used to calculate the Closing Price of the Common Stock in the definition of “Closing Price” set forth in Section 1.01 hereof, (ii) whether a day is a Trading Day (and whether a day is a Scheduled Trading Day and whether a Market Disruption Event has occurred) for such Capital Stock or similar equity interest shall be determined in a manner analogous to that used to determine whether a day is a Trading Day (or whether a day is a Scheduled Trading Day and whether a Market Disruption Event has occurred) for the Common Stock, and (iii) whether a day is a Trading Day to be included in a Valuation Period will be determined based on whether a day is a Trading Day for both the Common Stock and such Capital Stock or similar equity interest.

 

(iv)          Cash Distributions. If the Company pays any cash dividends or distributions to all or substantially all holders of the Common Stock, each Fixed Settlement Rate shall be increased based on the following formula:

 

 

	
where,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FR0
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately prior to the Open of Business on the Ex-Dividend Date for such   dividend or distribution;
    
	
 
    	
 
    	
 
    
	
FR1
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately after the Open of Business on the Ex-Dividend Date for such   dividend or distribution;
    
	
 
    	
 
    	
 
    
	
SP0
    	
=
    	
the Closing Price of the Common Stock on the Trading   Day immediately preceding the Ex-Dividend Date for such dividend or   distribution; and
    
	
 
    	
 
    	
 
    
	
C
    	
=
    	
the amount in cash per share that the Company   distributes to holders of the Common Stock.
    

 

If “C” (as defined above) is equal to or greater than “SP0” (as defined above), in lieu of the foregoing increase, each Holder of a Unit or a Separate Purchase Contract shall receive, for each such Unit or a Separate Purchase Contract it holds, as the case may be, at the same time and upon the same terms as holders of shares of Common Stock, the amount of cash that such Holder would have received if such Holder owned a number of shares of Common Stock equal to the Maximum Settlement Rate in effect immediately prior to the Close of Business on the Record Date for such cash dividend or distribution.

 

Such increase shall become effective immediately after the Open of Business on the Ex-Dividend Date for such dividend or distribution.  If such dividend or distribution is not so paid, each Fixed Settlement Rate shall be decreased to be the applicable Fixed Settlement Rate that would then be in effect if such dividend or distribution had not been declared.

 

(v)           Self Tender Offers and Exchange Offers. If the Company or any of its Subsidiaries make a payment in respect of a tender offer or exchange offer made by the Company or any of its Subsidiaries for the Common Stock, to the extent that the cash and value of any other consideration included in the payment

 

34

 

per share of the Common Stock exceeds the Closing Price of the Common Stock on the Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender or exchange offer (the “Tender Offer Expiration Date”), each Fixed Settlement Rate shall be increased based on the following formula:

 

 

	
where,
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
FR0
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately prior to the Close of Business on the Tender Offer Expiration   Date;
    
	
 
    	
 
    	
 
    
	
FR1
    	
=
    	
the applicable Fixed Settlement Rate in effect   immediately after the Close of Business on the Tender Offer Expiration Date;
    
	
 
    	
 
    	
 
    
	
AC
    	
=
    	
the aggregate value of all cash and any other   consideration (as determined by the Board of Directors) paid or payable for   shares of Common Stock purchased in such tender offer or exchange offer;
    
	
 
    	
 
    	
 
    
	
OS0
    	
=
    	
the number of shares of Common Stock outstanding   immediately prior to the expiration time of the tender or exchange offer on   the Tender Offer Expiration Date (prior to giving effect to the purchase of   all shares accepted for purchase or exchange in such tender offer or exchange   offer);
    
	
 
    	
 
    	
 
    
	
OS1
    	
=
    	
the number of shares of Common Stock outstanding   immediately after the expiration time of the tender or exchange offer on the   Tender Offer Expiration Date (after giving effect to the purchase of all   shares accepted for purchase or exchange in such tender or exchange offer);   and
    
	
 
    	
 
    	
 
    
	
SP1
    	
=
    	
the average of the Closing Prices of the Common   Stock over the 10 consecutive Trading Day period commencing on, and   including, the Trading Day next succeeding the Tender Offer Expiration Date   (the “Averaging Period”).
    

 

If the first VWAP Trading Day of the Observation Period applicable to the settlement of relevant Unit or Separate Purchase Contract, as the case may be, occurs after the first Trading Day of the Averaging Period for a tender or exchange offer, but on or before the last Trading Day of the Averaging Period for such tender or exchange offer, the reference in the above definition of “ SP1” to “10” shall be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the first Trading Day of the Averaging Period for such tender or exchange offer to, but excluding, the first VWAP Trading Day of such Observation Period.  If one or more VWAP Trading Days of the Observation Period applicable to the settlement of the relevant Unit or Separate Purchase Contract, as the case may be, occurs on or after the Tender Offer Expiration Date for a tender or exchange offer but on or prior to the first Trading Day of the Averaging Period for such tender or exchange offer, such Observation Period will be suspended from, and including, the first such VWAP Trading Day to, and including, the first Trading Day of the Averaging Period for such tender or exchange offer and will resume immediately after the first Trading Day of the Averaging Period for such tender or exchange offer, with the reference in the above definition of “SP1” to “10” consecutive Trading Days deemed replaced with a reference to “one (1)”.

 

In addition, if an Early Settlement Exercise Date or Early Mandatory Relevant Date occurs during the period from, but excluding, the first Trading Day of the Averaging Period for a tender or exchange offer to, and including, the last Trading Day of the Averaging Period for such tender or exchange offer, the reference in the above definition of “SP1” to “10” shall be deemed replaced with such lesser number of Trading Days as have elapsed from, and including, the first Trading Day of the Averaging Period for such tender or exchange offer to, but excluding, the applicable Early Settlement Exercise Date or Early Mandatory Relevant Date, as applicable.  If an Early Settlement Exercise Date or Early Mandatory

 

35

 

Relevant Date occurs during the period from, but excluding, the Tender Offer Expiration Date to, and including, the first Trading Day of the Averaging Period for such tender or exchange offer, (i) the reference in the above definition of “SP1” to “10” shall be deemed replaced with a reference to “one (1)”, (ii) the Company shall deliver the consideration due to such Holder in respect of the applicable Early Settlement or Early Mandatory Settlement, as applicable, on the third Business Day after the first Trading Day of the Averaging Period for such tender or exchange offer, (iii) the relevant Fixed Settlement Rates, Early Mandatory Settlement Rate and Fundamental Change Early Settlement Rate, as the case may be, applicable to such Early Settlement or Early Mandatory Settlement, as applicable, will be such respective Fixed Settlement Rates, Early Mandatory Settlement Rate or Fundamental Change Early Settlement Rate in effect immediately prior to the Close of Business on the first Trading Day of the Averaging Period for such tender or exchange offer and (iv) the person in whose name any shares of Common Stock shall be issuable in respect of the applicable Early Settlement or Early Mandatory Settlement, as applicable, will be deemed to become the holder of record of such shares as of the Close of Business on the first Trading Day of the Averaging Period for such tender or exchange offer.

 

(vi)          Special Settlement Provisions.

 

(A)          Notwithstanding anything to the contrary herein, if a Fixed Settlement Rate adjustment becomes effective on any Ex-Dividend Date, and (x) a Holder of a Unit or a Separate Purchase Contract that has elected Early Settlement of such Unit or such Separate Purchase Contract, as applicable for which the applicable Early Settlement Exercise Date occurs or (y) a holder of a Unit or a Separate Purchase Contract to which Early Mandatory Settlement applies and for which the applicable Early Mandatory Relevant Date occurs, in either case of clauses (x) or (y), on or after such Ex-Dividend Date and on or prior to the related Record Date would be (i) treated as the record holder of shares of Common Stock as of the related Early Settlement Exercise Date or Early Mandatory Relevant Date, as applicable, pursuant to Section 3.02 based on a Fixed Settlement Rate that would otherwise be adjusted for such Ex-Dividend Date in respect of such dividend, distribution or other event giving rise to such adjustment and (ii) entitled to participate in the related dividend, distribution or other event giving rise to such adjustment with respect to all such shares of Common Stock, then, notwithstanding the foregoing Fixed Settlement Rate adjustment provisions, the Fixed Settlement Rate adjustment relating to such Ex-Dividend Date will not be made for such Holder.  Instead, such Holder shall be treated as if such Holder were the record owner of the shares of Common Stock on an unadjusted basis and participate in the related dividend, distribution or other event giving rise to such adjustment.

 

(B)          In addition, if:

 

(1)           the Record Date, effective date or Tender Offer Expiration Date for any event that requires an adjustment to the Fixed Settlement Rates under any of Sections 5.01(a)(i) through (v) hereof occurs:

 

(a)           on or after the first VWAP Trading Day of the relevant Observation Period; and

 

(b)           on or prior to the last VWAP Trading Day of such Observation Period; and

 

(2)           the Daily Settlement Amount for any VWAP Trading Day in such Observation Period that occurs on or prior to such Record Date, effective date or Tender Offer Expiration Date:

 

(a)           includes shares of Common Stock that do not entitle their holder to participate in such event; and

 

(b)           is calculated based on a Fixed Settlement Rate that is not adjusted on account of such event;

 

36

 

then the Company shall treat each Holder of a Unit or Separate Purchase Contract as though it were the record holder on such Record Date, effective date or Tender Offer Expiration Date, as applicable, of a number of shares of Common Stock per Unit or Separate Purchase Contract, as applicable, equal to the total number of shares of Common Stock that:

 

(1)                                 are deliverable as part of the Daily Settlement Amount:

 

(a)                                 for a VWAP Trading Day in such Observation Period that occurs on or prior to such Record Date, effective date or Tender Offer Expiration Date; and

 

(b)                                 that is calculated based on a Fixed Settlement Rate that is not adjusted for such event; and

 

(2)                                 if not for this provision, would not entitle such Holder to participate in such event.

 

(vii)                           Rights Plans. Upon Settlement of a Unit or a Separate Purchase Contract, to the extent that the Company then has a rights plan with respect to the Common Stock in effect, if (i) Early Settlement applies to such Unit or Separate Purchase Contract, on the applicable Early Settlement Exercise Date, (ii) Early Mandatory Settlement applies to such Unit or Separate Purchase Contract, on the applicable Early Mandatory Relevant Date or (iii) Mandatory Settlement applies to such Unit or Separate Purchase Contract, on any VWAP Trading Day in the relevant Observation Period, in each case, the Holders thereof shall receive from the Company, in addition to any shares of Common Stock received in connection with such Early Settlement or Early Mandatory Settlement or in respect of such VWAP Trading Day, as the case may be, the rights under the rights plan, unless, prior to such Early Settlement Exercise Date, Early Mandatory Relevant Date or VWAP Trading Day, as the case may be, the rights have separated from the Common Stock, in which case each Fixed Settlement Rate shall be adjusted at the time of separation of such rights as if the Company made a distribution to all holders of the Common Stock that is subject to Section 5.01(a)(iii), subject to readjustment in the event of the expiration, termination or redemption of such rights.

 

(viii)                        Limitation on Adjustments. Except as stated in this Section 5.01(a), the Company shall not adjust the Fixed Settlement Rates for the issuance of shares of Common Stock or any securities convertible into or exchangeable for shares of Common Stock or the right to purchase shares of Common Stock or such convertible or exchangeable securities. If the application of the formulas in Sections 5.01(a)(i) through (v) would result in a decrease in the Fixed Settlement Rates, then, except to the extent of any readjustment to the Fixed Settlement Rates, no adjustment to the Fixed Settlement Rates will be made (other than as a result of a reverse share split or share combination).

 

(b)                                 Adjustment for Tax Reasons. The Company may make such increases in each Fixed Settlement Rate, in addition to any other increases required by this Section 5.01, to avoid or diminish any income tax to holders of shares of Common Stock or rights to purchase shares of Common Stock resulting from any dividend or distribution of shares of Common Stock (or issuance of rights or warrants to acquire shares of Common Stock) or from any event treated as such for U.S. federal income tax purposes or for any other reasons; provided, however, that the same proportionate adjustment must be made to each Fixed Settlement Rate.

 

(c)                                  Calculation of Adjustments; Adjustments to Threshold Appreciation Price Reference Price and Stock Price.

 

(i)                                     All adjustments to each Fixed Settlement Rate shall be calculated to the nearest 1/10,000th of a share of Common Stock.  Adjustments to Threshold Appreciation Price, Reference Price and Stock Price shall be calculated to the nearest $0.0001.

 

(ii)                                  Upon each adjustment to each Fixed Settlement Rate, and as of the time of such adjustment, each of the Threshold Appreciation Price and the Reference Price in effect immediately prior to

 

37

 

such adjustment shall be multiplied by a fraction, the numerator of which shall be the Fixed Settlement Rate in effect immediately before such adjustment, and the denominator of which shall be such Fixed Settlement Rate in effect immediately after such adjustment.

 

(iii)                               If an adjustment is made to the Fixed Settlement Rates pursuant to Section 5.01(a) or Section 5.01(b), then, as of the time of such adjustment, an adjustment shall be made to each Stock Price set forth in the column headers of the table included in Section 5.02(e) by multiplying such Stock Price by a fraction, the numerator of which shall be the Fixed Settlement Rate in effect immediately before such adjustment, and the denominator of which shall be such Fixed Settlement Rate in effect immediately after such adjustment.  Each of the Fundamental Change Early Settlement Rates in the table included in Section 5.02(e) will be subject to adjustment in the same manner as each Fixed Settlement Rate as set forth in this Section 5.01.

 

(iv)                              Notwithstanding anything herein to the contrary, no adjustment to the Fixed Settlement Rates (or, for the avoidance of doubt, any corresponding adjustment to the Reference Price or Threshold Reference Price pursuant to Section 5.01(c)) shall be made if Holders participate (other than in the case of a share split or share combination) at the same time and upon the same terms as holders of shares of Common Stock and as a result of holding the Units or Separate Purchase Contracts, as applicable, in any of the transactions that would otherwise give rise to an adjustment without having to settle their Purchase Contracts as if they held a number of shares of the Common Stock equal to the then applicable Maximum Settlement Rate multiplied by the number of Units or Separate Purchase Contracts, as applicable, held by such Holders. In addition, the Fixed Settlement Rates shall not be adjusted:

 

(A)                               on account of stock repurchases that are not tender offers referred to in Section 5.01(a)(v), including structured or derivative transactions, or transactions pursuant to a stock repurchase program approved by the Board of Directors, or otherwise;

 

(B)                               upon the issuance of any shares of Common Stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on the Company’s securities and the investment of additional optional amounts in shares of Common Stock under any plan;

 

(C)                               upon the issuance of any shares of Common Stock or options or rights to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by the Company or any of its Subsidiaries;

 

(D)                               upon the issuance of any shares of Common Stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security not described in clause (C) above and outstanding as of the Issue Date; or

 

(E)                                for a change in the par value of the Common Stock.

 

(d)                                 Notice of Adjustment. If the Company adjusts the Fixed Settlement Rates, the Company shall deliver to the Purchase Contract Agent an Officer’s Certificate setting forth each Fixed Settlement Rate, detailing the calculation of each Fixed Settlement Rate and describing the facts upon which the adjustment is based, upon which certificate the Purchase Contract Agent may conclusively rely.  In addition, the Company shall issue a press release containing the relevant information (and make such information available on its Web site).  The Purchase Contract Agent shall not be responsible for, and shall not make any representation as to the validity or value of, any share of Common Stock, securities or assets issued upon settlement of the Units or Separate Purchase Contracts, or as to the accuracy of any calculation made hereunder.  The Purchase Contract Agent shall have no duty or obligation to calculate a Fixed Settlement Rate or any adjustment thereto or verify any calculation thereof.

 

38

 

(e)                                  Reorganization Events. In the event of:

 

(i)                                     any recapitalization, reclassification or change of the Common Stock (other than a change in par value, or from par value to no par value, or from no par value to par value, or as a result of a split, subdivision or combination for which an adjustment is made pursuant to Section 5.01(a)(i));

 

(ii)                                  any consolidation or merger, amalgamation or combination involving the Company;

 

(iii)                               any sale, lease or other transfer to another Person (other than the Company and any of its Subsidiaries) of the consolidated assets of the Company and its Subsidiaries substantially as an entirety; or

 

(iv)                              any binding exchange of securities of the Company with another Person (other than in connection with a merger or acquisition covered by clause (i) above),

 

and, in each case, as a result of which the Common Stock would be converted into, or exchanged for, common stock, other securities, other property or assets (including cash or any combination thereof) (any such event, a “Merger Event” and such common stock, securities, property or assets (including cash or any combination thereof), the “Reference Property” and the amount of Reference Property that a holder of one share of the Common Stock would be entitled to receive on account of such Merger Event, an “Reference Property Unit”), then, at the effective time of the applicable Merger Event, the right to settlement of each Unit or Separate Purchase Contract into shares of Common Stock will be changed into a right to settlement of such Unit or Separate Purchase Contract based on the kind and amount of Reference Property that a holder of shares of Common Stock would have owned or been entitled to receive upon such Merger Event.  However, at and after the effective time of the Merger Event, (i) any number of shares of Common Stock that the Company would have been required to deliver upon settlement or redemption of the Units and Separate Purchase Contracts as set forth above will instead be deliverable in the amount and type of Reference Property that a holder of that number of shares of Common Stock would have received in such Merger Event, (ii) the Daily VWAP and Closing Price will be calculated based on the value of a Reference Property Unit and (iii) the consideration due upon settlement of the Units and Separate Purchase Contracts will be determined as if relevant references to shares of Common Stock or any number thereof (including for purposes of any adjustment to the Fixed Settlement Rates) were deemed replaced with references to the components of a Reference Property Unit. If the Merger Event causes the Common Stock to be converted into, or exchanged for, the right to receive more than a single type of consideration (determined based in part upon any form of stockholder election), the amount and type of Reference Property that a holder of one or more shares of Common Stock would have been entitled to receive in such Merger Event (and that will be deliverable upon settlement of the Units and Separate Purchase Contracts) shall be deemed to be based on the weighted average of the types and amounts of consideration received by the holders of Common Stock that affirmatively make such an election. The Company shall notify Holders of the weighted average as soon as reasonably practicable after such determination is made.

 

Notwithstanding anything to the contrary herein, for so long as the Units or Separate Purchase Contracts remain outstanding, the Company will not become a party to any agreement providing for a Merger Event if the terms of such agreement relative to the treatment of the Units or Separate Purchase Contracts are inconsistent with the provisions described in this Section 5.01(e), unless the Purchase Contracts are to be settled (including pursuant to an Early Mandatory Settlement) prior to consummation of such Merger Event.

 

The above provisions of this Section 5.01(e) shall similarly apply to successive Merger Events. Following each Merger Event, (i) for the avoidance of doubt, the Fixed Settlement Rates (together with corresponding adjustments to the Fundamental Change Settlement Rates, the Stock Prices, the Reference Price and the Threshold Appreciation Price) shall be subject to  adjustments which will be as nearly equivalent as may be practicable, as determined by the Board of Directors in its commercially reasonable judgment, to the adjustments provided for in this Section 5.01 (except that no such adjustments shall be required with respect to any portion of a Reference Property Unit that does not consist of Capital Stock); and (ii) for all purposes hereunder (including, without limitation, for purposes of determining whether a Fundamental Change has occurred), each reference herein to Common Stock shall be read as if such reference were instead a reference to the Reference Property Units.

 

39

 

Section 5.02.   Early Settlement Upon a Fundamental Change

 

(a)                                 If a Fundamental Change occurs and a Holder elects to effect an Early Settlement of any Purchase Contract in connection with such Fundamental Change, then, notwithstanding anything to the contrary herein, such Holder shall receive a number of shares of Common Stock (or Reference Property Units, as applicable) based on the Fundamental Change Early Settlement Rate (the “Fundamental Change Early Settlement Right”). An Early Settlement shall be deemed for these purposes to be “in connection with” such Fundamental Change if the Holder delivers an Early Settlement Notice to the Company and the Purchase Contract Agent, and otherwise satisfies the requirements for effecting Early Settlement of its Purchase Contracts set forth in Section 4.04, during the period beginning on, and including, the Effective Date of the Fundamental Change and ending on, and including, the 45th  Business Day thereafter (the “Fundamental Change Early Settlement Period”).

 

If a Holder complies with the requirements set forth in Section 5.02(b) to exercise the Fundamental Change Early Settlement Right prior to the Close of Business on any Business Day during the Fundamental Change Early Settlement Period, then that Business Day shall be considered the “Fundamental Change Early Settlement Date.”  If a Holder complies with the requirements set forth in Section 5.02(b) to exercise the Fundamental Change Early Settlement Right at or after the Close of Business on any Business Day during the Fundamental Change Early Settlement Period or at any time on a day during the Fundamental Change Early Settlement Period that is not a Business Day, then the next succeeding Business Day shall be considered the “Fundamental Change Early Settlement Date.”

 

(b)                                 The Company shall provide the Purchase Contract Agent and the Holders of Units and Separate Purchase Contracts with a notice of a Fundamental Change within five Business Days after its occurrence, issue a press release announcing the Effective Date and post such press release on the Company’s Web site. The notice shall set forth, among other things:

 

(i)                                     the applicable Fundamental Change Early Settlement Rate;

 

(ii)                                  the kind and amount of cash, securities and other property receivable by the Holder upon settlement;

 

(iii)                               the deadline by which each Holder’s Fundamental Change Early Settlement Right must be exercised;

 

(iv)                              that Holders of Units and Separate Notes will have the right to require the Company to repurchase their Notes that are a component of the Units or their Separate Notes, as the case may be, pursuant to and in accordance with the Indenture;

 

(v)                                 the Repurchase Price and Repurchase Date;

 

(vi)                              the last date on which Holders may exercise their Repurchase Right; and

 

(vii)                           the procedures that Holders must follow hereunder and under the Indenture to require the Company to repurchase their Notes.

 

(c)                                  The “Fundamental Change Early Settlement Rate” shall be determined by reference to the table below, based on the date on which the Fundamental Change occurs or becomes effective (the “Effective Date”) and the stock price (the “Stock Price”) in the Fundamental Change, which shall be determined as follows:

 

(i)                                     in the case of a Fundamental Change described in sub-clause (A) or (B) of clause (ii) of the definition thereof in which holders of shares of Common Stock receive only cash in the Fundamental Change, the Stock Price shall be the cash amount paid per share of Common Stock; and

 

40

 

(ii)                                  in all other cases, the Stock Price shall be the average of the Closing Prices per share of Common Stock over the 10 consecutive Trading Day period ending on, and including, the Trading Day preceding the Effective Date.

 

(d)                                 The Stock Prices set forth in the column headers of the table below and the Fundamental Change Early Settlement Rates in the table below are subject to adjustment as provided in Section 5.01(c).

 

(e)                                  The following table sets forth the Fundamental Change Early Settlement Rate per Purchase Contract for each Stock Price and Effective Date set forth below:

 

	
 
    	
 
    	
Stock Price
    	
 
    
	
Effective Date
    	
 
    	
$4.00
    	
 
    	
$8.00
    	
 
    	
$12.00
    	
 
    	
$14.00
    	
 
    	
$16.13
    	
 
    	
$18.00
    	
 
    	
$19.92
    	
 
    	
$25.00
    	
 
    	
$30.00
    	
 
    	
$35.00
    	
 
    	
$40.00
    	
 
    	
$50.00
    	
 
    
	
June 21,   2016
    	
 
    	
6.0505
    	
 
    	
5.7605
    	
 
    	
5.5109
    	
 
    	
5.4160
    	
 
    	
5.3341
    	
 
    	
5.2758
    	
 
    	
5.2268
    	
 
    	
5.1359
    	
 
    	
5.0821
    	
 
    	
5.0488
    	
 
    	
5.0277
    	
 
    	
5.0201
    	
 
    
	
October 1,   2016
    	
 
    	
6.0762
    	
 
    	
5.7992
    	
 
    	
5.5416
    	
 
    	
5.4412
    	
 
    	
5.3540
    	
 
    	
5.2917
    	
 
    	
5.2393
    	
 
    	
5.1425
    	
 
    	
5.0858
    	
 
    	
5.0512
    	
 
    	
5.0296
    	
 
    	
5.0201
    	
 
    
	
January 1,   2017
    	
 
    	
6.0982
    	
 
    	
5.8362
    	
 
    	
5.5716
    	
 
    	
5.4657
    	
 
    	
5.3731
    	
 
    	
5.3067
    	
 
    	
5.2509
    	
 
    	
5.1480
    	
 
    	
5.0884
    	
 
    	
5.0527
    	
 
    	
5.0307
    	
 
    	
5.0201
    	
 
    
	
April 1,   2017
    	
 
    	
6.1182
    	
 
    	
5.8746
    	
 
    	
5.6036
    	
 
    	
5.4919
    	
 
    	
5.3931
    	
 
    	
5.3222
    	
 
    	
5.2624
    	
 
    	
5.1529
    	
 
    	
5.0903
    	
 
    	
5.0535
    	
 
    	
5.0313
    	
 
    	
5.0201
    	
 
    
	
July 1,   2017
    	
 
    	
6.1364
    	
 
    	
5.9157
    	
 
    	
5.6392
    	
 
    	
5.5208
    	
 
    	
5.4151
    	
 
    	
5.3387
    	
 
    	
5.2744
    	
 
    	
5.1571
    	
 
    	
5.0913
    	
 
    	
5.0534
    	
 
    	
5.0312
    	
 
    	
5.0201
    	
 
    
	
October 1,   2017
    	
 
    	
6.1525
    	
 
    	
5.9596
    	
 
    	
5.6794
    	
 
    	
5.5535
    	
 
    	
5.4393
    	
 
    	
5.3564
    	
 
    	
5.2865
    	
 
    	
5.1602
    	
 
    	
5.0909
    	
 
    	
5.0522
    	
 
    	
5.0303
    	
 
    	
5.0201
    	
 
    
	
January 1,   2018
    	
 
    	
6.1657
    	
 
    	
6.0057
    	
 
    	
5.7249
    	
 
    	
5.5905
    	
 
    	
5.4663
    	
 
    	
5.3754
    	
 
    	
5.2988
    	
 
    	
5.1616
    	
 
    	
5.0887
    	
 
    	
5.0496
    	
 
    	
5.0286
    	
 
    	
5.0201
    	
 
    
	
April 1,   2018
    	
 
    	
6.1756
    	
 
    	
6.0524
    	
 
    	
5.7763
    	
 
    	
5.6325
    	
 
    	
5.4963
    	
 
    	
5.3955
    	
 
    	
5.3105
    	
 
    	
5.1606
    	
 
    	
5.0842
    	
 
    	
5.0456
    	
 
    	
5.0260
    	
 
    	
5.0201
    	
 
    
	
July 1,   2018
    	
 
    	
6.1828
    	
 
    	
6.0998
    	
 
    	
5.8377
    	
 
    	
5.6835
    	
 
    	
5.5318
    	
 
    	
5.4179
    	
 
    	
5.3217
    	
 
    	
5.1557
    	
 
    	
5.0764
    	
 
    	
5.0396
    	
 
    	
5.0227
    	
 
    	
5.0201
    	
 
    
	
October 1,   2018
    	
 
    	
6.1879
    	
 
    	
6.1445
    	
 
    	
5.9134
    	
 
    	
5.7487
    	
 
    	
5.5761
    	
 
    	
5.4431
    	
 
    	
5.3308
    	
 
    	
5.1439
    	
 
    	
5.0637
    	
 
    	
5.0315
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    
	
January 1,   2019
    	
 
    	
6.1920
    	
 
    	
6.1793
    	
 
    	
6.0095
    	
 
    	
5.8385
    	
 
    	
5.6363
    	
 
    	
5.4725
    	
 
    	
5.3340
    	
 
    	
5.1197
    	
 
    	
5.0452
    	
 
    	
5.0227
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    
	
April 1,   2019
    	
 
    	
6.1958
    	
 
    	
6.1953
    	
 
    	
6.1277
    	
 
    	
5.9784
    	
 
    	
5.7342
    	
 
    	
5.5082
    	
 
    	
5.3166
    	
 
    	
5.0717
    	
 
    	
5.0242
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    
	
July 1,   2019
    	
 
    	
6.1996
    	
 
    	
6.1996
    	
 
    	
6.1996
    	
 
    	
6.1996
    	
 
    	
6.1996
    	
 
    	
5.5556
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    	
5.0201
    	
 
    

 

The exact Stock Prices and Effective Dates may not be set forth in the table above, in which case:

 

(i)                                     if the applicable Stock Price is between two Stock Prices in the table or the applicable Effective Date is between two Effective Dates in the table, then the Fundamental Change Early Settlement Rate shall be determined by a straight-line interpolation between the Fundamental Change Early Settlement Rates set forth for the higher and lower Stock Prices and the two Effective Dates surrounding the applicable Stock Price or Effective Date, as applicable, based on a 365-day year;

 

(ii)                                  if the applicable Stock Price is in excess of $50.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the table above), then the Fundamental Change Early Settlement Rate shall be the Minimum Settlement Rate; or

 

(iii)                               if the applicable Stock Price is less than $4.00 per share (subject to adjustment in the same manner as the Stock Prices set forth in the table above) (the “Minimum Stock Price”), then the Fundamental Change Early Settlement Rate shall be determined as if the Stock Price equaled the Minimum Stock Price, and using straight line interpolation, as described in clause (i) of this Section 5.02(e), if the Effective Date is between two dates in the table.

 

The maximum number of shares of Common Stock deliverable under a Purchase Contract is 6.1996, subject to adjustment as provided in Section 5.01.

 

(f)                                   The Company shall deliver shares of Common Stock or Reference Property Units, as applicable, deliverable as a result of a Holder’s exercise of the Fundamental Change Early Settlement Right on or prior to the third Business Day following the Fundamental Change Early Settlement Date.

 

(g)                                  If a Holder does not elect to exercise the Fundamental Change Early Settlement Right, such Holder’s Purchase Contracts shall remain outstanding and shall be subject to normal settlement on any subsequent Early Settlement Date or the Early Mandatory Settlement Date or upon Mandatory Settlement or redemption on any subsequent Acquisition Redemption Settlement Date, including, if applicable, the provisions set forth in Section 5.01.

 

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Section 5.03.   Adjustments of Prices.

 

Whenever any provision of this Purchase Contract Agreement requires the Company to calculate the Closing Prices, the Daily VWAPs or any function thereof over a span of multiple days (including during an Observation Period), the Company shall make appropriate adjustments to each to account for any adjustment to the Fixed Settlement Rates that becomes effective, or any event requiring an adjustment to the Fixed Settlement Rates where the effective date, Ex-Dividend Date or Tender Offer Expiration Date of the event occurs, at any time during the period when such Closing Prices, the Daily VWAPs or function thereof are to be calculated.

 

For the avoidance of doubt, the adjustments made pursuant to the foregoing paragraph, to the extent any such adjustments are necessary, will be made without duplication of any adjustment made pursuant to Section 5.01(a)(vi)(B).

 

Section 5.04.   Tax Withholding.

 

By purchasing a beneficial interest in a Purchase Contract (whether or not included in a Unit), each Holder, and any individual or entity that acquires a direct or indirect interest in the Purchase Contract (whether or not included in a Unit), will be deemed to have agreed that if the Company or other applicable withholding agent pays withholding taxes or backup withholding on behalf of a Holder or beneficial owner of a Purchase Contract (whether or not included in a Unit) as a result of an adjustment of, or failure to make an adjustment of, the Fixed Settlement Rate, the Company or other applicable withholding agent may, at its option, set off such payments against payments of cash or Common Stock payable on the sale or settlement of a Purchase Contract (whether or not included in a Unit) or, possibly, against any payments on shares of Common Stock.

 

ARTICLE VI
 REMEDIES

 

Section 6.01.   Unconditional Right of Holders to Receive Shares of Common Stock.

 

Each Holder of a Purchase Contract (whether or not included in a Unit) shall have the right, which is absolute and unconditional, to receive the shares of Common Stock (and/or, in the case of an Acquisition Termination Redemption, any cash included in the Redemption Amount), Reference Property or cash in lieu of any fractional share or Reference Property upon settlement of such Purchase Contract on the applicable Settlement Date and to institute suit for the enforcement of any such right to receive the shares of Common Stock (and/or, in the case of an Acquisition Termination Redemption, any cash included in the Redemption Amount), and such right shall not be impaired without the consent of such Holder.

 

Section 6.02.   Limitation on Proceedings.

 

No Holder of Purchase Contracts (whether or not included in a Unit) may institute any proceedings, judicial or otherwise, with respect to this Purchase Contract Agreement or for any remedy hereunder, except in the case of failure of the Purchase Contract Agent, for 60 days, to act after the Purchase Contract Agent has received a written request to institute proceedings in respect of a default with respect to any covenant hereunder from the Holders of not less than 25% of the Outstanding Purchase Contracts, as well as an offer of indemnity satisfactory to the Purchase Contract Agent. This provision will not prevent any Holder of Purchase Contracts (whether or not included in a Unit) from instituting suit for the delivery of shares of Common Stock (and/or, in the case of an Acquisition Termination Redemption, any cash included in the Redemption Amount), Reference Property or cash in lieu of any fractional share or Reference Property upon settlement or redemption of the Purchase Contracts on the applicable Settlement Date.

 

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Section 6.03.   Restoration of Rights and Remedies.

 

If any Holder has instituted any proceeding to enforce any right or remedy under this Purchase Contract Agreement and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to such Holder, then and in every such case, subject to any determination in such proceeding, the Company and such Holder shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of such Holder shall continue as though no such proceeding had been instituted.

 

Section 6.04.   Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.10, no right or remedy herein conferred upon or reserved to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.05.   Delay or Omission Not Waiver.

 

No delay or omission of any Holder to exercise any right or remedy upon a default hereunder shall impair any such right or remedy or constitute a waiver of any such right. Every right and remedy given by this Article or by law to the Holders may be exercised from time to time, and as often as may be deemed expedient, by such Holders.

 

Section 6.06.   Undertaking for Costs.

 

All parties to this Purchase Contract Agreement agree, and each Holder of a Purchase Contract, by its acceptance of such Purchase Contract shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Purchase Contract Agreement, or in any suit against the Purchase Contract Agent for any action taken, suffered or omitted by it as Purchase Contract Agent, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and costs against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant;  provided, however, that the provisions of this Section shall not apply to any suit instituted by (a) the Purchase Contract Agent, (b) any Holder, or group of Holders, holding in the aggregate more than 10.0% of the Outstanding Purchase Contracts, or (c) any Holder for the enforcement of the right to receive shares of Common Stock, Reference Property or cash in lieu of any fractional share or Reference Property upon settlement or the Redemption Amount payable upon redemption, as the case may be, of the Purchase Contracts held by such Holder.

 

Section 6.07.   Waiver of Stay or Execution Laws.

 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or assume or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Purchase Contract Agreement; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Purchase Contract Agent or the Holders, but will suffer and permit the execution of every such power as though no such law had been enacted.

 

Section 6.08.   Control by Majority.

 

The Holders of not less than a majority in number of the Outstanding Purchase Contracts shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Purchase Contract Agent, or of exercising any trust or power conferred upon the Purchase Contract Agent;  provided, however, that the Purchase Contract Agent has received indemnity satisfactory to it. Notwithstanding anything to the contrary in the foregoing, the Purchase Contract Agent may refuse to follow any direction that is in conflict with any law or this Purchase Contract Agreement, that may involve it in personal liability or that may be unduly prejudicial to the Holders of Purchase Contracts not joining in the action.

 

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ARTICLE VII
 THE PURCHASE CONTRACT AGENT AND TRUSTEE

 

Section 7.01.   Certain Duties and Responsibilities.

 

(a)                                 Each of the Purchase Contract Agent and Trustee:

 

(i)                                     undertakes to perform, with respect to the Units and Purchase Contracts, such duties and only such duties as are specifically delegated to it and set forth in this Purchase Contract Agreement, and no implied covenants or obligations shall be read into this Purchase Contract Agreement against the Purchase Contract Agent or Trustee; and

 

(ii)                                  in the absence of gross negligence, willful misconduct or bad faith on its own part, may, with respect to the Units and Purchase Contracts, conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Purchase Contract Agent or the Trustee, as applicable, and conforming to the requirements of this Purchase Contract Agreement but in the case of any certificates or opinions that by any provision hereof are specifically required to be furnished to the Purchase Contract Agent or the Trustee, as applicable, the Purchase Contract Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Purchase Contract Agreement (but need not confirm or investigate the accuracy of the mathematical calculations or other facts stated therein and may assume the genuineness of all signatures).

 

(b)                                 No provision of this Purchase Contract Agreement shall be construed to relieve the Purchase Contract Agent from liability for its own grossly negligent action, its own grossly negligent failure to act or its own willful misconduct, except that:

 

(i)                                     the Purchase Contract Agent shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Purchase Contract Agent was grossly negligent in ascertaining the pertinent facts;

 

(ii)                                  no provision of this Purchase Contract Agreement shall require the Purchase Contract Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if indemnity satisfactory to the Purchase Contract Agent is not provided to it; and

 

(iii)                               the Purchase Contract Agent shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in number of the Outstanding Purchase Contracts.

 

(c)                                  This Purchase Contract Agreement shall not be deemed to create a fiduciary relationship under state or federal law between Wilmington Trust, National Association, in its capacity as the Purchase Contract Agent, and any Holder of any Equity-Linked Security or between Wilmington Trust, National Association, in its capacity as Trustee under the Indenture, and any Holder of any Purchase Contract (whether separated or as part of a Unit). Nothing herein shall be deemed to govern or effect the Trustee’s rights, duties, responsibilities, benefits, protections, indemnities or immunities with respect to the Notes, which shall be governed by the Indenture.

 

(d)                                 Whether or not herein expressly so provided, every provision of this Purchase Contract Agreement relating to the conduct or affecting the liability of or affording protection to the Purchase Contract Agent shall be subject to the provisions of this Section 7.01.

 

Section 7.02.   Notice of Default.

 

Within 90 days after the occurrence of any default by the Company hereunder of which a Responsible Officer of the Purchase Contract Agent has actual knowledge, or if such knowledge is obtained more than 90 days after the applicable default, as soon as is reasonably practicable, the Purchase Contract Agent shall transmit to the

 

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Company and the Holders of Purchase Contracts, as their names and addresses appear in the Security Register, notice of such default hereunder, unless such Responsible Officer of the Purchase Contract Agent has actual knowledge that such default shall have been cured or waived.  The Company shall deliver to the Purchase Contract Agent prompt written notice of the occurrence of any default by the Company hereunder.

 

Section 7.03.   Certain Rights of the Purchase Contract Agent.

 

Subject to the provisions of Section 7.01:

 

(a)                                 the Purchase Contract Agent may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)                                 any request or direction of the Company mentioned herein shall be sufficiently evidenced by an Officer’s Certificate, Issuer Order or Issuer Request, and any resolution of the Board of Directors of the Company may be sufficiently evidenced by a Board Resolution;

 

(c)                                  whenever in the administration of this Purchase Contract Agreement the Purchase Contract Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Purchase Contract Agent (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officer’s Certificate of the Company;

 

(d)                                 the Purchase Contract Agent may consult with counsel of its selection appointed in good faith by it hereunder and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(e)                                  the Purchase Contract Agent shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Purchase Contract Agent, in its discretion may make reasonable further inquiry or investigation into such facts or matters related to the execution, delivery and performance of the Purchase Contracts as it may see fit, and, if the Purchase Contract Agent shall determine to make such further inquiry or investigation, it shall be given a reasonable opportunity, during the Company’s normal business hours, to examine the relevant books, records and premises of the Company, personally or by agent or attorney, and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation;

 

(f)                                   the Purchase Contract Agent may execute any of the rights or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, or Affiliates and the Purchase Contract Agent shall not be responsible for any misconduct or negligence on the part of any agent, attorney or Affiliate appointed with due care by it hereunder;

 

(g)                                  the Purchase Contract Agent shall be under no obligation to exercise any of the rights or powers vested in it by this Purchase Contract Agreement at the request or direction of any of the Holders pursuant to this Purchase Contract Agreement, unless such Holders shall have provided to the Purchase Contract Agent security or indemnity satisfactory to the Purchase Contract Agent against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction;

 

(h)                                 the Purchase Contract Agent shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Purchase Contract Agreement;

 

(i)                                     the Purchase Contract Agent shall not be deemed to have notice of any default hereunder unless a Responsible Officer of the Purchase Contract Agent has actual knowledge thereof or unless written notice of a

 

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default is provided to the Purchase Contract Agent at the Corporate Trust Office of the Purchase Contract Agent, and such notice references the Purchase Contracts and this Purchase Contract Agreement;

 

(j)                                    the Purchase Contract Agent may request that the Company deliver an Officer’s Certificate setting forth the names of individuals or titles of officers authorized at such time to take specified actions pursuant to this Purchase Contract Agreement, which Officer’s Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded;

 

(k)                                 the rights, privileges, protections, immunities and benefits given to the Purchase Contract Agent and under this Purchase Contract Agreement, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee (whether or not the Trustee is expressly referred for in connection with any such rights, privileges, protections, immunities and benefits) and to each agent, custodian and other Person employed to act hereunder;

 

(l)                                     in no event shall either of the Purchase Contract Agent or the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Purchase Contact Agent or the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action; and

 

(m)                             neither the Purchase Contract Agent nor the Trustee shall be responsible for delays or failures in performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of God, strikes, lockouts, riots, acts of war, epidemics, governmental regulations superimposed after the fact, fire, communication line failures, computer viruses, power failures, earthquakes, terrorist attacks or other disasters, it being understood that each of the Purchase Contract Agent and the Trustee shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances;

 

(n)                                 the Purchase Contract Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock or any securities or property that may at any time be issued or delivered under any Purchase Contract, and the Purchase Contract Agent makes no representation with respect thereto; and

 

(o)                                 the Purchase Contract Agent shall not be responsible for any failure of the Company to make any cash payment or to issue, transfer or deliver any shares of Common Stock or other securities or property hereunder or under any Purchase Contract.

 

Section 7.04.   Not Responsible for Recitals.

 

The recitals contained herein and in the instruments evidencing any Purchase Contract or Note, or in any document used in connection with the sale, offer or issuance of the Purchase Contracts or the Notes, shall be taken as the statements of the Company, and neither the Purchase Contract Agent nor the Trustee assumes any responsibility for their accuracy. Neither the Purchase Contract Agent nor the Trustee makes any representations as to the validity or sufficiency of either this Purchase Contract Agreement or of the Purchase Contracts. Neither the Purchase Contract Agent nor the Trustee shall be accountable for the use or application by the Company of the proceeds in respect of the Purchase Contracts.

 

Section 7.05.   May Hold Units and Purchase Contracts.

 

Any Security Registrar or any other agent of the Company, or the Purchase Contract Agent, the Trustee and any of their Affiliates, in their individual or any other capacity, may become the owner of Units, Separate Purchase Contracts and Separate Notes and may otherwise deal with the Company or any other Person with the same rights it would have if it were not Security Registrar or such other agent, or the Purchase Contract Agent. The Company may become the owner of Units, Separate Purchase Contracts and Separate Notes.

 

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Section 7.06.   Money Held in Custody.

 

Money held by the Purchase Contract Agent in custody hereunder need not be segregated from other funds except to the extent required by law or provided herein. The Purchase Contract Agent shall be under no obligation to invest or pay interest on any money received by it hereunder except as specifically instructed by the Company in an Issuer Order.

 

Section 7.07.   Compensation, Reimbursement and Indemnification.

 

The Company agrees:

 

(a)                                 to pay to the Purchase Contract Agent compensation for all services rendered by it hereunder as the Company and the Purchase Contract Agent shall from time to time agree in writing;

 

(b)                                 to promptly reimburse the Purchase Contract Agent upon its request for all reasonable expenses, disbursements and advances incurred or made by the Purchase Contract Agent in accordance with any provision of this Purchase Contract Agreement (including costs of collection and the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be determined by a court of competent jurisdiction to have been caused by the Purchase Contract Agent’s own gross negligence or willful misconduct; and

 

(c)                                  to indemnify the Purchase Contract Agent and any predecessor Purchase Contract Agent and their respective agents and representatives for, and to hold them harmless against any loss, liability, damage, claim or expense (including taxes (other than taxes based on the income of the Purchase Contract Agent), incurred without gross negligence or willful misconduct on their part, arising out of or in connection with this Purchase Contract Agreement or the acceptance or administration of the Purchase Contract Agent’s duties hereunder, including the costs and expenses of defending itself against any claim (whether asserted by the Company, a Holder or any other person) or liability in connection with the exercise or performance of any of its powers or duties hereunder.

 

The provisions of this Section shall survive the resignation or removal of the Purchase Contract Agent, the termination of this Purchase Contract Agreement or the rejection of this Purchase Contract Agreement under bankruptcy law.

 

Section 7.08.   Corporate Purchase Contract Agent Required; Eligibility.

 

There shall at all times be a Purchase Contract Agent hereunder which shall be a corporation or national banking association organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to exercise corporate trust powers, having (or being a member of a bank holding company having) a combined capital and surplus of at least $50,000,000, subject to supervision or examination by Federal or State authority and having a corporate trust office in the continental United States, if there be such a corporation in the continental United States, qualified and eligible under this Article VII and willing to act on reasonable terms. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section 7.08, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Purchase Contract Agent shall cease to be eligible in accordance with the provisions of this Section 7.08, it shall resign immediately in the manner and with the effect hereinafter specified in this Article VII.

 

Section 7.09.   Resignation and Removal; Appointment of Successor.

 

(a)                                 No resignation or removal of the Purchase Contract Agent and no appointment of a successor Purchase Contract Agent pursuant to this Article shall become effective until the acceptance of appointment by the successor Purchase Contract Agent in accordance with the applicable requirements of Section 7.10.

 

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(b)                                 The Purchase Contract Agent may resign at any time by giving written notice thereof to the Company 60 days prior to the effective date of such resignation. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase Contract Agent within 30 days after the giving of such notice of resignation, the resigning Purchase Contract Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent.

 

(c)                                  The Purchase Contract Agent may be removed at any time by Act of the Holders of a majority in number of the Outstanding Purchase Contracts delivered to the Purchase Contract Agent and the Company. If the instrument of acceptance by a successor Purchase Contract Agent required by Section 7.10 shall not have been delivered to the Purchase Contract Agent within 30 days after the delivery of such Act, the removed Purchase Contract Agent may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent.

 

(d)                                 If at any time:

 

(i)                                     the Purchase Contract Agent shall cease to be eligible under Section 7.08 and shall fail to resign after written request therefor by the Company or by any such Holder; or

 

(ii)                                  the Purchase Contract Agent shall be adjudged bankrupt or insolvent or a receiver of the Purchase Contract Agent or of its property shall be appointed or any public officer shall take charge or control of the Purchase Contract Agent or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, (x) the Company by a Board Resolution may remove the Purchase Contract Agent, or (y) any Holder who has been a bona fide Holder of a Purchase Contract for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Purchase Contract Agent and the appointment of a successor Purchase Contract Agent.

 

(e)                                  If the Purchase Contract Agent shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Purchase Contract Agent for any cause, the Company shall promptly appoint a successor Purchase Contract Agent and shall comply with the applicable requirements of Section 7.10. If no successor Purchase Contract Agent shall have been so appointed by the Company and accepted appointment in the manner required by Section 7.10, any Holder who has been a bona fide Holder of a Purchase Contract for at least three months, on behalf of itself and all others similarly situated, or the Purchase Contract Agent may petition at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Purchase Contract Agent.

 

(f)                                   The Company shall give, or shall cause such successor Purchase Contract Agent to give, notice of each resignation and each removal of the Purchase Contract Agent and each appointment of a successor Purchase Contract Agent by mailing written notice of such event by first-class mail, postage prepaid, to Holders as their names and addresses appear in the applicable Security Register. Each notice shall include the name of the successor Purchase Contract Agent and the address of its Corporate Trust Office.

 

Section 7.10.   Acceptance of Appointment by Successor.

 

(a)                                 In case of the appointment hereunder of a successor Purchase Contract Agent, every such successor Purchase Contract Agent so appointed shall execute, acknowledge and deliver to the Company and to the retiring Purchase Contract Agent an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Purchase Contract Agent shall become effective and such successor Purchase Contract Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, agencies and duties of the retiring Purchase Contract Agent, and the retiring Purchase Contract Agent shall have no further obligations or duties hereunder except as expressly set forth herein. At the request of the Company or the successor Purchase Contract Agent, such retiring Purchase Contract Agent shall, upon its receipt of payment or reimbursement of any amounts due to it hereunder, execute and deliver an instrument transferring to such successor Purchase Contract Agent all the rights, powers and trusts of the retiring Purchase Contract Agent and shall duly

 

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assign, transfer and deliver to such successor Purchase Contract Agent all property and money held by such retiring Purchase Contract Agent hereunder.

 

(b)                                 Upon request of any such successor Purchase Contract Agent, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Purchase Contract Agent all such rights, powers and agencies referred to in paragraph Section 7.10(a).

 

(c)                                  No successor Purchase Contract Agent shall accept its appointment unless at the time of such acceptance such successor Purchase Contract Agent shall be qualified and eligible under this Article.

 

Section 7.11.   Merger; Conversion; Consolidation or Succession to Business.

 

Any corporation into which the Purchase Contract Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Purchase Contract Agent shall be a party, or any corporation succeeding to all or substantially all the corporate trust business of the Purchase Contract Agent, shall be the successor of the Purchase Contract Agent hereunder;  provided, however, that such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. If any Equity-Linked Securities shall have been authenticated on behalf of the Holders by the Trustee and Purchase Contract Agent then in office, but not delivered, any successor by merger, conversion or consolidation to such Purchase Contract Agent may adopt such Purchase Contract Agent’s authentication and deliver the Equity-Linked Securities so authenticated with the same effect as if such successor Purchase Contract Agent had itself authenticated such Equity-Linked Securities.

 

Section 7.12.   Preservation of Information; Communications to Holders.

 

(a)                                 The Purchase Contract Agent shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders as received by the Purchase Contract Agent in its capacity as Security Registrar.

 

(b)                                 If a Holder (such Holder, the “Applicant”) applies in writing to the Purchase Contract Agent, and furnishes to the Purchase Contract Agent reasonable proof that such Applicant has owned a Unit or Separate Purchase Contract for a period of at least six months preceding the date of such application, and such application states that the Applicant desires to communicate with other Holders with respect to its rights under this Purchase Contract Agreement or under the Units or Separate Purchase Contracts and is accompanied by a copy of the form of proxy or other communication that such Applicant proposes to transmit, then the Purchase Contract Agent shall mail to all the Holders copies of the form of proxy or other communication that is specified in such request, with reasonable promptness after a tender to the Purchase Contract Agent of the materials to be mailed and of payment, or provision for the payment, of the reasonable expenses of such mailing.

 

Section 7.13.   No Other Obligations of Purchase Contract Agent or Trustee.

 

Except to the extent otherwise expressly provided in this Purchase Contract Agreement, neither the Purchase Contract Agent nor Trustee assumes any obligations, and neither the Purchase Contract Agent nor Trustee shall be subject to any liability, under this Purchase Contract Agreement or Security evidencing a Unit or Purchase Contract in respect of the obligations to the Holder of any Unit or Purchase Contract thereunder. The Company agrees, and each Holder of a Security, by his or her acceptance thereof, shall be deemed to have agreed, that the Purchase Contract Agent’s or Trustee’s authentication, as applicable, of the Securities on behalf of the Holders shall be solely as agent and attorney-in-fact for the Holders, and that neither the Purchase Contract Agent nor Trustee shall have any obligation to perform such Purchase Contracts (whether held as components of Units or Separate Purchase Contracts) on behalf of the Holders. Anything contained in this Purchase Contract Agreement to the contrary notwithstanding, in no event shall the Purchase Contract Agent, the Trustee or their respective officers, employees or agents be liable under this Purchase Contract Agreement to any third party for indirect, special, punitive, or consequential loss or damage of any kind whatsoever, including lost profits, whether or not the likelihood of such loss or damage was known to the Purchase Contract Agent or Trustee, incurred without any act or deed that is found to be attributable to gross negligence or willful misconduct on the part of the Purchase Contract Agent or Trustee.

 

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Section 7.14.   Tax Compliance.

 

(a)                                 The Company and the Purchase Contract Agent shall comply with all applicable certification, information reporting and withholding (including backup withholding) requirements imposed by applicable tax laws, regulations or administrative practice with respect to (i) any payments made with respect to the Purchase Contracts or (ii) the issuance, delivery, holding, transfer or exercise of rights under the Purchase Contracts. Such compliance shall include, without limitation, the preparation and timely filing of required returns and the timely payment of all amounts required to be withheld to the appropriate taxing authority or its designated agent.

 

(b)                                 The Company shall provide written direction to the Purchase Contract Agent with respect to its obligations arising under Section 7.14(a). The Purchase Contract Agent shall comply, in accordance with the terms hereof, with any such written direction or any other written direction received from the Company with respect to the execution or certification of any required documentation and the application of such requirements to particular payments or Holders or in other particular circumstances, and may for purposes of this Purchase Contract Agreement conclusively rely on any such direction in accordance with the provisions of Section 7.01(a)(ii) hereof.

 

(c)                                  The Purchase Contract Agent shall maintain all appropriate records documenting compliance with such requirements, and shall make such records available, on written request, to the Company or its authorized representative within a reasonable period of time after receipt of such request. For the avoidance of doubt, any costs or expenses incurred by the Purchase Contract Agent in connection with complying with its obligations under this Section 7.14 shall be covered by Section 7.07.

 

ARTICLE VIII
 SUPPLEMENTAL AGREEMENTS

 

Section 8.01.   Supplemental Agreements Without Consent of Holders.

 

Without the consent of any Holders, the Company, the Purchase Contract Agent and the Trustee at any time and from time to time, may enter into one or more agreements supplemental hereto, in form satisfactory to the Company and the Purchase Contract Agent, to:

 

(i)                                     evidence the succession by a successor corporation and to provide for the assumption by a successor of the Company’s obligations under this Purchase Contract Agreement;

 

(ii)                                  provide additional rights or benefits to the Holders or to surrender any of the Company’s rights or powers;

 

(iii)                               evidence and provide for the acceptance of appointment of a successor Purchase Contract Agent;

 

(iv)                              in the case of a Merger Event, to provide for the settlement of the Purchase Contracts into the Reference Property as required under the provisions described under Section 5.01(e);

 

(v)                                 cure any ambiguity, omission, defect or inconsistency in this Purchase Contract Agreement; and

 

(vi)                              make any change that does not adversely affect the rights of any Holder in any material respect; provided that any amendment to conform the terms of the Purchase Contract Agreement to the description thereof in the Preliminary Prospectus Supplement, as supplemented by the Issuer Free Writing Prospectus, will not be deemed to be adverse to any Holder.

 

Section 8.02.   Supplemental Agreements With Consent of Holders.

 

With the consent of the Holders of a majority in principal amount of the Outstanding Purchase Contracts (including without limitation, consents obtained in connection with a repurchase of, or tender or exchange offer for,

 

50

 

Units and/or Separate Purchase Contracts) and by Act of said Holders delivered to the Company and the Purchase Contract Agent, the Company, when authorized by a Board Resolution, and the Purchase Contract Agent may enter into a purchase contract agreement or purchase contract agreements supplemental hereto for the purpose of adding any provisions to, changing in any manner or eliminating any of, or waiving compliance to any of the provisions of this Purchase Contract Agreement or of modifying in any manner the rights of the Holders under this Purchase Contract Agreement and the Purchase Contracts; provided, however, that no such supplemental purchase contract agreement shall, without the consent of each Holder of the Outstanding Purchase Contracts affected thereby:

 

(i)                                     make any change that impairs or adversely affects the settlement rights of any Purchase Contract;

 

(ii)                                  change the right to settle Purchase Contracts early or the Fundamental Change Early Settlement Right, in either case, whether through an amendment or waiver of the provisions in the covenants, definitions or otherwise;

 

(iii)                               impair the right of any Holder to receive delivery of the number of shares of Common Stock, cash in lieu of any fractional share and/or Reference Property due upon settlement of any Purchase Contract on the due dates therefor;

 

(iv)                              reduce the Redemption Amount or impair the right of any Holder to receive such amount if the Company elects to redeem the Purchase Contracts in connection win an Acquisition Termination Redemption;

 

(v)                                 impair the right to institute suit for the enforcement of the Purchase Contract; or

 

(vi)                              make any change in the percentage of Holders required to consent to any amendment, modification or waiver of any provision of this Purchase Contract Agreement or make any change to this sentence.

 

It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental agreement, but it shall be sufficient if such Act shall approve the substance thereof.

 

Section 8.03.   Execution of Supplemental Agreements.

 

In executing, or accepting the additional agencies created by, any supplemental agreement permitted by this Article or the modifications thereby of the agencies created by this Purchase Contract Agreement, the Purchase Contract Agent and Trustee shall be provided, and (subject to Section 7.01) shall be fully protected in relying upon, an Officer’s Certificate and an Opinion of Counsel stating that the execution of such supplemental agreement is authorized or permitted by this Purchase Contract Agreement and does not violate the Indenture, and that any and all conditions precedent to the execution and delivery of such supplemental agreement have been satisfied. The Purchase Contract Agent and Trustee may, but shall not be obligated to, enter into any such supplemental agreement that affects the Purchase Contract Agent’s or Trustee’s own rights, duties or immunities under this Purchase Contract Agreement, the Indenture or otherwise.

 

Section 8.04.   Effect of Supplemental Agreements.

 

Upon the execution of any supplemental agreement under this Article, this Purchase Contract Agreement shall be modified in accordance therewith, and such supplemental agreement shall form a part of this Purchase Contract Agreement for all purposes; and every Holder of Securities theretofore or thereafter authenticated on behalf of the Holders and delivered hereunder, shall be bound thereby.

 

Section 8.05.   Reference to Supplemental Agreements.

 

Securities authenticated on behalf of the Holders and delivered after the execution of any supplemental agreement pursuant to this Article may, and shall if required by the Purchase Contract Agent, bear a notation in form

 

51

 

approved by the Purchase Contract Agent as to any matter provided for in such supplemental agreement. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Purchase Contract Agent, the Trustee and the Company, to any such supplemental agreement may be prepared and executed by the Company and authenticated on behalf of the Holders and delivered by the Purchase Contract Agent in exchange for outstanding Securities.

 

Section 8.06.   Notice of Supplemental Agreements.

 

After any supplemental purchase contract agreement under this Article becomes effective, the Company shall mail to the Holders a notice briefly describing such supplemental purchase contract agreement;  provided, however, that the failure to give such notice to all Holders, or any defect therein, shall not impair or affect the validity of such supplemental purchase contract agreement.

 

ARTICLE IX
 CONSOLIDATION, MERGER, SALE OR CONVEYANCE

 

Section 9.01.   Covenant Not to Consolidate or Merge, Convey, Transfer or Lease Property Except Under Certain Conditions.

 

The Company shall not (1) consolidate or merge with or into another Person or (2) sell, assign, transfer, lease or otherwise dispose of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to another Person, unless:

 

(a)                                 the successor entity (the “Successor Company”), if not the Company, is (and, if the Company remains a party to the Purchase Contracts and the Purchase Contract Agreement after giving effect to such transaction and the requirements in respect thereof under the Purchase Contract Agreement, the Company is) a corporation organized and existing under the laws of the U.S., any State thereof or the District of Columbia and the Successor Company, if not the Company, expressly assumes  all of the obligations of the Company under the Purchase Contracts and the Purchase Contract Agreement pursuant to agreements reasonably satisfactory to the Purchase Contract Agent;

 

(b)                                 the obligor under the Purchase Contracts will not, immediately after the relevant transaction, be in default in the performance of its covenants and conditions under the Units, the Purchase Contracts or the Purchase Contract Agreement; and

 

(c)                                  the Company shall have delivered to the Purchase Contract Agent an Officers’ Certificate and an Opinion of Counsel that comply with Section 9.03.

 

This Section 9.01 shall not apply to any sale, assignment, transfer, lease or other disposition of assets between or among the Company and any of its Subsidiaries.

 

Section 9.02.   Rights and Duties of Successor Entity.

 

Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole in a transaction that is subject to, and that complies with the provisions of, Section 9.02 hereof, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of this Purchase Contract Agreement referring to the “Company” shall refer instead to the successor corporation and not to the Company, and in the case of such consolidation, merger, sale, or other disposition (other than a lease), the predecessor Company shall be released from all obligations and covenants under the Indenture and the Securities), and may exercise every right and power of the Company under this Purchase Contract Agreement with the same effect as if such successor Person had been named as the Company herein.

 

52

 

Section 9.03.   Officer’s Certificate and Opinion of Counsel Given to Purchase Contract Agent.

 

The Purchase Contract Agent shall receive an Officer’s Certificate and an Opinion of Counsel as conclusive evidence that any such merger, consolidation, conversion, sale, assignment, transfer, lease or conveyance, and any such assumption, complies with the provisions of this Article IX and that all conditions precedent to the consummation of any such merger, consolidation, sale, assignment, transfer, lease or conveyance have been met, subject to customary qualifications and assumptions.

 

ARTICLE X
 COVENANTS OF THE COMPANY

 

Section 10.01.   Performance Under Purchase Contracts.

 

The Company covenants and agrees for the benefit of the Holders from time to time of the Units and Purchase Contracts that it will duly and punctually perform its obligations under the Units and Purchase Contracts in accordance with the terms of the Units and Purchase Contracts and this Purchase Contract Agreement.

 

Section 10.02.   Maintenance of Office or Agency.

 

The Company shall maintain in the continental United States an office or agency where Securities may be presented or surrendered for acquisition of shares of Common Stock (and/or, in the case of an Acquisition Termination Redemption, any cash included in the Redemption Amount) upon settlement or redemption of the Purchase Contracts on the Mandatory Settlement Date or any Early Settlement Exercise Date and where notices and demands to or upon the Company in respect of the Purchase Contracts and this Purchase Contract Agreement may be served. The Company shall give prompt written notice to the Purchase Contract Agent of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Purchase Contract Agent with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Company hereby appoints the Purchase Contract Agent as its agent to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one or more other offices or agencies where Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations;  provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the continental United States for such purposes. The Company shall give prompt written notice to the Purchase Contract Agent of any such designation or rescission and of any change in the location of any such other office or agency. The Company hereby designates as the place of payment for the Purchase Contracts the Corporate Trust Office and appoints the Purchase Contract Agent at its Corporate Trust Office as paying agent in such city.

 

Section 10.03.   Annual Statement.

 

Within 120 calendar days after the end of each fiscal year, the Company shall deliver to the Purchase Contract Agent an annual statement, signed by an officer of the Company, regarding compliance with this Purchase Contract Agreement and include in such statement whether such officer is aware of any default in the performance or observance of any of the terms, provisions conditions hereof, and, if the Company shall be in such default, such statement shall specify all such defaults and the nature and status thereof and what action the Company is taking or proposes to take with respect thereto.

 

53

 

Section 10.04.   Existence.

 

Except as otherwise permitted under Article IX, the Company will do or cause to be done all things necessary to maintain in full force its legal existence, rights (charter and statutory) and franchises, except that the Company is not required to preserve any right or franchise if the Company determines that it is no longer desirable in the conduct of its business and the loss is not disadvantageous in any material respect to the Holders of any Purchase Contracts.

 

Section 10.05.   Company to Reserve Common Stock.

 

The Company shall reserve and keep available out of its authorized and unissued Common Stock, solely for issuance upon settlement or redemption of the Purchase Contracts, that number of shares of Common Stock as shall from time to time be issuable upon the settlement of all Outstanding Purchase Contracts, assuming settlement at the Maximum Number of Shares set forth in Section 5.02(e), subject to adjustment as set forth hereto.

 

Section 10.06.   Covenants as to Common Stock.

 

The Company covenants that all shares of Common Stock that may be issued upon settlement or redemption of any Outstanding Purchase Contract shall, upon issuance, be newly issued shares or treasury shares, be issued in book-entry format held through DTC, be duly authorized, validly issued, fully paid and nonassessable, free from all taxes, liens and charges (other than those created by the Holder or due to a change in registered owner) and not subject to any preemptive rights.

 

The Company further covenants that, if at any time the Common Stock shall be listed on the NYSE or any other national securities exchange, the Company will, if permitted by the rules of such exchange, list and keep listed, so long as the Common Stock shall be so listed on such exchange, all Common Stock issuable upon settlement or redemption of the Purchase Contracts, subject to official notice of issuance; provided, however, that, if the rules of such exchange system permit the Company to defer the listing of such Common Stock until the first delivery of Common Stock upon settlement or redemption of Purchase Contracts in accordance with the provisions of this Purchase Contract Agreement, the Company covenants to list such Common Stock issuable upon settlement or redemption of the Purchase Contracts in accordance with the requirements of such exchange at such time.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

54

 

IN WITNESS WHEREOF, the parties hereto have caused this Purchase Contract Agreement to be duly executed as of the day and year first above written.

 

 

	
 
    	
DYNEGY INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert C. Flexon
    
	
 
    	
Name: 
    	
Robert C. Flexon
    
	
 
    	
Title:
    	
President and Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WILMINGTON TRUST, NATIONAL   ASSOCIATION,
    
	
 
    	
 as Purchase Contract Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shawn Goffinet
    
	
 
    	
Name:
    	
Shawn Goffinet
    
	
 
    	
Title:
    	
Assistant Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WILMINGTON TRUST, NATIONAL   ASSOCIATION,
    
	
 
    	
 as Trustee under the Indenture
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shawn Goffinet
    
	
 
    	
Name:
    	
Shawn Goffinet
    
	
 
    	
Title:
    	
Assistant Vice   President
    

 

 

EXHIBIT A

 

[FORM OF UNIT]

 

[INCLUDE IF A GLOBAL UNIT]

 

[THIS SECURITY IS A GLOBAL UNIT WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS GLOBAL UNIT IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS GLOBAL UNIT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

A-1

 

DYNEGY INC.

 

7.00% TANGIBLE EQUITY UNITS

 

CUSIP No. 26817R405

 

ISIN No. US26817R4056

 

	
No.
    	
[Initial]*   Number of   Units:                             
    

 

This Unit certifies that [CEDE & CO.]*  [  ]** (the “Holder”), or registered assigns, is the registered owner of [the number of Units set forth above]** [the number of Units shown on Schedule A hereto, which number may from time to time be reduced or increased, as appropriate in accordance with the terms of the Purchase Contract Agreement (as defined below), but which shall not exceed [  ] Units]*.

 

Each Unit consists of (i) a Purchase Contract and (ii) a Note, in each case issued by Dynegy Inc. (the “Company”). Each Unit evidenced hereby is governed by a Purchase Contract Agreement, dated as of June 21, 2016 (as may be supplemented from time to time, the “Purchase Contract Agreement”), between the Company and Wilmington Trust, National Association, as purchase contract agent and as trustee  under the Indenture.

 

Reference is hereby made to the Purchase Contract Agreement and the Indenture and, in each case supplemental agreements thereto, for a description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Purchase Contract Agent, the Trustee, the Company and the Holders and of the terms upon which the Units are, and are to be, executed and delivered.

 

Upon the conditions and under the circumstances set forth in the Purchase Contract Agreement, Holders of Units shall have the right to separate a Unit into its component parts, and a Holder of a Separate Purchase Contract and Separate Note shall have the right to re-create a Unit.

 

The Company agrees, and by purchasing a Unit or beneficial interest therein each Holder and beneficial owner (for U.S. federal income tax purposes) agrees, for U.S. federal income tax purposes, to treat (1) a Unit as an investment unit composed of two separate instruments, in accordance with its form and (2) the Notes as indebtedness of the Company.

 

The Units, and any claim, controversy or dispute arising under or related to the Units, shall be governed by, and construed in accordance with, the laws of the State of New York.

 

Capitalized terms used herein and not defined have the meanings given to such terms in the Purchase Contract Agreement.

 

In the event of any inconsistency between the provisions of this Unit and the provisions of the Purchase Contract Agreement, the Purchase Contract Agreement shall prevail.

 

[SIGNATURE ON THE FOLLOWING PAGE]

 

* Include only if a Global Unit.

** Include only if not a Global Unit.

 

A-2

 

IN WITNESS WHEREOF, DYNEGY INC. has caused this instrument to be signed manually or by facsimile by one of its duly authorized Officers.

 

	
Dated:               ,   2016
    	
 
    
	
 
    	
 
    
	
 
    	
DYNEGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Units referred to in the within mentioned Purchase Contract Agreement.

 

Date of authentication: [  ]

 

	
 
    	
Wilmington Trust, National   Association, as Purchase Contract Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Wilmington Trust, National   Association, as Trustee under the Indenture
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    

 

A-4

 

SCHEDULE A

 

[INCLUDE IF A GLOBAL UNIT]

 

SCHEDULE OF INCREASES OR DECREASES IN A GLOBAL UNIT

 

The initial number of Units evidenced by this Global Unit is [  ]. The following increases or decreases in this Global Unit have been made:

 

	
Date
    	
 
    	
Amount of increase
   in number of Units
   evidenced by the
   Global Unit
    	
 
    	
Amount of
   decrease in number
   of Units evidenced
   by the Global Unit
    	
 
    	
Number of Units
   evidenced by the
   Global Unit
   following such
   decrease or
   increase
    	
 
    	
Signature of
   authorized
   signatory of
   Purchase Contract
   Agent
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-5

 

ATTACHMENT 1

 

[FORM OF SEPARATION NOTICE]

 

Wilmington Trust, National Association
 15950 N. Dallas Parkway, Suite 550
 Dallas, Texas 75248

 

Re:    Separation of [Global]* Units

 

The undersigned [Beneficial Owner]* hereby notifies you that it wishes to separate              Units [as to which it holds a Book-Entry Interest]* into the applicable number of Notes and the applicable number of Purchase Contracts in accordance with the Purchase Contract Agreement (the “Purchase Contract Agreement”) dated June 21, 2016, between Dynegy Inc. and Wilmington Trust, National Association, as Purchase Contract Agent and Trustee under the Indenture. Terms used and not defined herein have the meaning assigned to such terms in the Purchase Contract Agreement.

 

The undersigned [includes herewith]** [Beneficial Owner has instructed the undersigned Depository Participant to transfer to you its Book-Entry Interests]* the number of Units specified in the immediately succeeding paragraph. The undersigned [includes herewith]** [Beneficial Owner has furnished the undersigned Depository Participant with]* the appropriate endorsements and documents and paid all transfer or similar taxes, if any, to the extent required by the Purchase Contract Agreement.

 

Please [deliver to the undersigned’s address specified below]** [transfer to the account of the undersigned Beneficial Owner with the undersigned Depositary Participant the beneficial interests in]* (i) the number of Notes and (ii) number of Purchase Contracts represented by the number of Units specified above.

 

* Include only if a Global Unit.

** Include only if not a Global Unit.

 

A-6

 

IN WITNESS WHEREOF, the [undersigned has caused this instrument to be duly executed]** [Depository Participant has caused this instrument to be duly executed on behalf of itself and the undersigned Beneficial Owner]*.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
[NAME OF BENEFICIAL   OWNER]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    	
Address:
    
	
 
    
	
 
    
	
[NAME OF DEPOSITORY   PARTICIPANT]*
    
	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    
	
Attest By:
    
						

 

A-7

 

ATTACHMENT 2

 

[FORM OF RECREATION NOTICE]

 

Wilmington Trust, National Association
 15950 N. Dallas Parkway, Suite 550
 Dallas, Texas 75248

 

Re:    Recreation of [Global]* Units

 

The undersigned [Beneficial Owner]* hereby notifies you that it wishes to recreate           Units [as to which it holds a Book-Entry Interest]* from the applicable number of Notes and the applicable number of Purchase Contracts in accordance with the Purchase Contract Agreement (the “Purchase Contract Agreement”) dated as of June 21, 2016 between Dynegy Inc. and Wilmington Trust, National Association, as Purchase Contract Agent and Trustee under the Indenture. Terms used and not defined herein have the meaning assigned to such terms in the Purchase Contract Agreement.

 

The undersigned [includes herewith]** [Beneficial Owner has instructed the undersigned Depository Participant to transfer to you its Book-Entry Interests in]* the applicable number of Notes and the applicable number of Purchase Contracts sufficient for the recreation of the number of Units specified above. The undersigned [includes herewith]** [Beneficial Owner has furnished the undersigned Depository Participant with]* the appropriate endorsements and documents and paid all transfer or similar taxes, if any, to the extent required by the Purchase Contract Agreement.

 

Please [deliver to the undersigned’s address specified below]** [transfer to the account of the undersigned Beneficial Owner with the undersigned Depositary Participant the beneficial interests in]* the number of Units specified above.

 

* Include only if a Global Unit.

** Include only if not a Global Unit.

 

A-8

 

IN WITNESS WHEREOF, the [undersigned has caused this instrument to be duly executed]** [Depository Participant has caused this instrument to be duly executed on behalf of itself and the undersigned Beneficial Owner]*.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
[NAME OF BENEFICIAL   OWNER]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    	
 
    	
Address:
    
	
 
    
	
 
    
	
[NAME OF DEPOSITORY   PARTICIPANT]*
    
	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Address:
    	
 
    	
 
    
	
 
    
	
Attest By:
    
						

 

A-9

 

ATTACHMENT 3

 

DYNEGY INC.

 

PURCHASE CONTRACTS

 

CUSIP No. : 26817R 124

 

ISIN No. : US26817R1243

 

	
No.
    	
[Initial]*   Number of Purchase   Contracts:              
    

 

This Purchase Contract certifies that, [Wilmington Trust, National Association, as attorney-in-fact of holder(s) of the Purchase Contracts evidenced hereby]*  [  ]**, or its registered assigns (the “Holder”) is the registered owner of the number of Purchase Contracts [set forth above]**[shown on Schedule A hereto, which number may from time to time be reduced or increased as set forth on Schedule A hereto, as appropriate]* in accordance with the terms of the Purchase Contract Agreement, dated as of June 21, 2016 (as may be supplemented from time to time, the “Purchase Contract Agreement”), between the Company and Wilmington Trust, National Association, as purchase contract agent and as trustee under the Indenture (as defined on the reverse hereof)[, but which shall not exceed [   ] Purchase Contracts]*.

 

Each Purchase Contract consists of the rights of the Holder under such Purchase Contract with the Company. All capitalized terms used herein which are defined in the Purchase Contract Agreement have the meaning set forth therein.

 

Each Purchase Contract evidenced hereby obligates the Company to deliver to the Holder of this Purchase Contract on the Mandatory Settlement Date a number of shares of common stock, $0.01 par value, of the Company equal to the Settlement Amount, unless such Purchase Contract settles or is redeemed prior to the Mandatory Settlement Date, all as provided in the Purchase Contract Agreement and more fully described on the reverse hereof.

 

Reference is hereby made to the further provisions set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

[SIGNATURE ON THE FOLLOWING PAGE]

 

* Include only if a Global Unit.

** Include only if not a Global Unit.

 

A-10

 

IN WITNESS WHEREOF, DYNEGY INC. has caused this instrument to be signed manually or by facsimile by one of its duly authorized Officers.

 

	
Dated:               ,   2016
    	
 
    
	
 
    	
 
    
	
 
    	
DYNEGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-1

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Purchase Contracts referred to in the within-mentioned Purchase Contract Agreement.

 

Date of authentication: [  ]

 

	
 
    	
Wilmington Trust, National   Association, as Purchase Contract Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

A-2

 

[REVERSE OF PURCHASE CONTRACT]

 

Each Purchase Contract evidenced hereby is governed by the Purchase Contract Agreement. Reference is hereby made to the Purchase Contract Agreement and supplemental agreements thereto for a description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Purchase Contract Agent, the Trustee, the Company, and the Holders and of the terms upon which the Purchase Contracts are, and are to be, executed and delivered.

 

Each Purchase Contract evidenced hereby obligates the Company to deliver to the Holder of this Purchase Contract, on the Mandatory Settlement Date, a number of shares of Common Stock equal to the Settlement Amount, unless such Purchase Contract settles or is redeemed prior to the Mandatory Settlement Date, all as provided in the Purchase Contract Agreement.

 

No fractional shares of Common Stock shall be issued upon settlement or redemption of Purchase Contracts, as provided in Section 4.05 of the Purchase Contract Agreement.

 

The Purchase Contracts are issuable only in registered form and only in denominations of a single Purchase Contract and any integral multiple thereof. The transfer of any Purchase Contract will be registered and Purchase Contracts may be exchanged as provided in the Purchase Contract Agreement.

 

The Holder of this Purchase Contract, by its acceptance hereof, authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract Agreement on its behalf as its attorney-in-fact and agrees to be bound by the terms and provisions thereof.

 

Subject to certain exceptions set forth in the Purchase Contract Agreement, the provisions of the Purchase Contract Agreement may be amended with the consent of the Holders of a majority of the Purchase Contracts.

 

The Purchase Contracts, and any claim, controversy or dispute arising under or related to the Purchase Contracts, shall be governed by, and construed in accordance with, the laws of the State of New York.

 

The Company, the Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract Agent may treat the Person in whose name this Purchase Contract is registered as the absolute owner of the Purchase Contracts evidenced hereby for the purpose of performance of the Purchase Contracts and for all other purposes whatsoever, whether or not any payments in respect thereof be overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the contrary.

 

The Purchase Contracts shall not entitle the Holder to any of the rights of a holder of the Common Stock or other Reference Property, except as provided by the Purchase Contract Agreement.

 

Each Purchase Contract (whether or not included in a Unit) is a security governed by Article 8 of the Uniform Commercial Code as in effect in the State of New York on the date hereof.

 

A copy of the Purchase Contract Agreement is available for inspection at the offices of the Purchase Contract Agent.

 

In the event of any inconsistency between the provisions of this Purchase Contract and the provisions of the Purchase Contract Agreement, the Purchase Contract Agreement shall prevail.

 

A-3

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM:
    	
as tenants in common
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
UNIF GIFT MIN ACT:
    	
 
    	
 
    	
Custodian:
    	
 
    
	
 
    	
(cust)
    	
 
    	
 
    	
(minor)
    

 

	
 
    	
Under Uniform gifts to Minors Act of
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TENANT:
    	
as tenants by the entireties
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
JT TEN:
    	
as joint tenants with right of survivorship and not as tenants in   common
    	
 
    	
 
    	
 
    

 

Additional abbreviations may also be used though not in the above list.

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

 

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

 

the within Purchase Contracts and all rights thereunder, hereby irrevocably constituting and appointing attorney            , to transfer said Purchase Contracts on the books of the Company with full power of substitution in the premises.

 

	
DATED:
    	
 
    	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Notice : The signature to this assignment must correspond with the   name as it appears upon the face of the within Purchase Contracts in every   particular, without alteration or enlargement or any change whatsoever
    
	
 
    	
 
    	
 
    	
 
    
	
Signature Guarantee:
    	
 
    	
 
    	
 
    	
 
    
							

 

A-4

 

SETTLEMENT INSTRUCTIONS

 

The undersigned Holder directs that shares of Common Stock or other securities deliverable upon settlement or redemption on or after the Settlement Date of Purchase Contracts evidenced by this instrument be registered in the name of, and delivered, together with a check in payment for any fractional share (or cash included in the Redemption Amount, if applicable), to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer or similar taxes payable incidental thereto.

 

	
DATED: 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Signature Guarantee: 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(if assigned to another Person)
    
	
If shares are to be registered in the name of and delivered to a   Person other than the Holder, please (i) print such Person’s name and   address and (ii) provide a guarantee of your signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
Address
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Social Security or other Taxpayer Identification Number, if any
    	
 
    	
 
    

 

A-5

 

ELECTION TO SETTLE EARLY

 

The undersigned Holder of this Purchase Contract hereby irrevocably exercises the option to effect Early Settlement in accordance with the terms of the Purchase Contract Agreement with respect to the Purchase Contracts evidenced by this instrument specified below. The undersigned Holder directs that shares of Common Stock or other securities deliverable upon such Early Settlement be registered in the name of, and delivered, together with a check in payment for any fractional share and any Purchase Contract representing any Purchase Contracts evidenced hereby as to which Early Settlement is not effected, to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer or similar taxes payable incident thereto.

 

	
DATED: 
    	
 
    	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature Guarantee:
    	
 
    	
 
    	
 
    	
 
    
								

 

 

Number of Purchase Contracts evidenced hereby as to which Early Settlement is being elected:

 

	
If shares of Common Stock or Purchase Contracts are to be registered   in the name of and delivered to a Person other than the Holder, please print   such Person’s name and address:
    	
 
    	
REGISTERED HOLDER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please print name and address of Registered Holder:
    
	
 
    	
 
    	
 
    
	
Name
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
Address
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Social Security or other Taxpayer Identification Number, if any
    	
 
    	
 
    

 

A-6

 

SCHEDULE A

 

[INCLUDE IF A GLOBAL PURCHASE CONTRACT]

 

SCHEDULE OF INCREASES OR DECREASES IN THE PURCHASE CONTRACT

 

The initial number of Purchase Contracts evidenced by this certificate is            . The following increases or decreases in this certificate have been made:

 

	
Date
    	
 
    	
Amount of increase
   in number of
   Purchase Contracts
   evidenced hereby
    	
 
    	
Amount of
   decrease in number
   of Purchase
   Contracts
   evidenced hereby
    	
 
    	
Number of
   Purchase Contracts
   evidenced hereby
   following such
   decrease or
   increase
    	
 
    	
Signature of
   authorized
   signatory of
   Purchase Contract
   Agent
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-7

 

ATTACHMENT 4

 

DYNEGY INC.
 7.00% SENIOR AMORTIZING NOTES
 DUE JULY 1, 2019

 

CUSIP No.: 26817R306

 

ISIN No.: US26817R3066

 

	
No.         
    	
[Initial]*   Number of Notes:   [          ]
    

 

Dynegy Inc., a Delaware corporation (the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to Wilmington Trust, National Association, as attorney-in-fact of holder(s) of the Notes evidenced hereby, or its registered assigns, the initial principal sum of $18.94911 for each of the number of Notes set forth [above]**[in Schedule A hereto]*, in quarterly installments of $1.7500 per Note (except for the October 1, 2016 installment, which shall be $1.94444 per Note) (each such payment, an “Installment Payment,” constituting a payment of interest at the rate per year of 7.00% and a partial repayment of principal) payable on each January 1, April 1, July 1, and October 1, commencing on October 1, 2016, (each such date, an “Installment Payment Date” and the period from, and including, June 21, 2016 to, but excluding, the first Installment Payment Date and each subsequent full quarterly period from and including an Installment Payment Date to, but excluding, the immediately succeeding Installment Payment Date, an “Installment Payment Period”), all as set forth on the reverse hereof.  Notwithstanding the foregoing, the amount of any Installment Payment for any Installment Payment Period shall be increased by the amount of additional interest, if any, payable for such Installment Payment Period as provided in the Indenture hereinafter referred to.

 

The Installment Payment on any Installment Payment Date shall be computed on the basis of a 360-day year consisting of twelve 30-day months. If an installment is payable for any period shorter or longer than a full Installment Payment Period, such installment shall be computed on the basis of the actual number of days elapsed per 30-day month. In the event that any date on which an installment is payable is not a Business Day, then payment of the installment on such date will be made on the next succeeding day that is a Business Day, and without any interest or other payment in respect of any such delay. However, if such Business Day is in the next succeeding calendar year, then such Installment Payment shall be made on the immediately preceding Business Day, in each case with the same force and effect as if made on the date when such Installment Payment was originally due.

 

Installment Payments shall be paid to the person in whose name the Note is registered, with limited exceptions, at the Close of Business on the March 15, June 15, September 15 or December 15, as applicable, immediately preceding the relevant Installment Payment Date. Installment Payments shall be payable at the office or agency of the Company maintained for that purpose in the continental United States; provided, however, that payment of Installment Payments may be made at the option of the Company by check mailed to the registered Holder at such address as shall appear in the Security Register or by wire transfer to an account appropriately designated by the Holder entitled to payment.

 

This Note shall not be entitled to any benefit under the Indenture hereinafter referred to or be valid or obligatory for any purpose until the Certificate of Authentication shall have been signed by or on behalf of the Trustee.

 

The provisions of this Note are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.

 

** Include only if not a Global Unit.

 

* Include only if a Global Unit.

 

A-8

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

A-9

 

IN WITNESS WHEREOF, DYNEGY INC. has caused this instrument to be signed manually or by facsimile by one of its duly authorized Officers.

 

 

Dated:             , 2016

 

	
 
    	
DYNEGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

A-10

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes referred to in the within mentioned Indenture.

 

Date of authentication:

 

	
 
    	
Wilmington Trust, National   Association, as Trustee under the Indenture
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Authorized   Signatory
    

 

A-11

 

[REVERSE OF NOTE]

 

DYNEGY INC.

 

This Amortizing Note is one of a duly authorized series of Securities of the Company designated as its 7.00% Senior Amortized Notes due 2019 (herein sometimes referred to as the “Notes”), issued under the indenture, dated as of June 21, 2016, between the Company and Wilmington Trust, National Association, as trustee (the “Trustee,” which term includes any successor trustee under the Indenture) (the “Base Indenture”) as supplemented by the First Supplemental Indenture, dated as of June 21, 2016, between the Company and the Trustee (the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders. The terms of other series of Securities issued under the Base Indenture may vary with respect to interest rates, issue dates, maturity, redemption, repayment, currency of payment and otherwise as provided in the Base Indenture. The Base Indenture further provides that securities of a single series may be issued at various times, with different maturity dates and may bear interest at different rates. This series of Securities is limited in aggregate principal amount as specified in the Supplemental Indenture.

 

Each Installment Payment shall constitute a payment of interest (at a rate of 7.00% per annum) and a partial repayment of principal on the Note, allocated as set forth in the schedule below:

 

	
Scheduled Installment Payment Date
    	
 
    	
Amount of
   Principal per
   Note
    	
 
    	
Amount of
   Interest per
   Note
    	
 
    
	
October 1,   2016
    	
 
    	
$
    	
1.57599
    	
 
    	
$
    	
0.36845
    	
 
    
	
January 1,   2017
    	
 
    	
$
    	
1.44597
    	
 
    	
$
    	
0.30403
    	
 
    
	
April 1,   2017
    	
 
    	
$
    	
1.47128
    	
 
    	
$
    	
0.27872
    	
 
    
	
July 1,   2017
    	
 
    	
$
    	
1.49702
    	
 
    	
$
    	
0.25298
    	
 
    
	
October 1,   2017
    	
 
    	
$
    	
1.52322
    	
 
    	
$
    	
0.22678
    	
 
    
	
January 1, 2018
    	
 
    	
$
    	
1.54988
    	
 
    	
$
    	
0.20012
    	
 
    
	
April 1   2018
    	
 
    	
$
    	
1.57700
    	
 
    	
$
    	
0.17300
    	
 
    
	
July 1,   2018
    	
 
    	
$
    	
1.60460
    	
 
    	
$
    	
0.14540
    	
 
    
	
October 1,   2018
    	
 
    	
$
    	
1.63268
    	
 
    	
$
    	
0.11732
    	
 
    
	
January 1,   2019
    	
 
    	
$
    	
1.66125
    	
 
    	
$
    	
0.08875
    	
 
    
	
April 1,   2019
    	
 
    	
$
    	
1.69032
    	
 
    	
$
    	
0.05968
    	
 
    
	
July 1,   2019
    	
 
    	
$
    	
1.71990
    	
 
    	
$
    	
0.03010
    	
 
    

 

Notwithstanding the foregoing, the amount of any Installment Payment for any Installment Payment Period shall be increased by the amount of additional interest, if any, payable for such Installment Payment Period as provided in the Indenture.

 

The Notes shall not be subject to redemption at the option of the Company, and no sinking fund is provided for the Notes.  However, a Holder shall have the right to require the Company to repurchase some or all of its Notes for cash at the Repurchase Price per Note, and on the Repurchase Date, upon the occurrence of certain events, and subject to the conditions set forth in the Indenture.

 

This Note is not entitled to the benefit of any sinking fund. The Indenture contains provisions for legal defeasance and covenant defeasance at any time of the Indenture and this Note upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Note.

 

If an Event of Default with respect to the Notes shall occur and be continuing, then (unless no declaration of acceleration or notice is required for such Event of Default) either the Trustee or the Holders of not less than 25% in principal amount of the Notes then outstanding may declare all future, scheduled Installment Payments to be due and payable immediately, in the manner, subject to the conditions and with the effect provided in the Indenture.

 

A-12

 

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee, with the consent of the holders of a majority in principal amount of the Notes at the time outstanding, to execute supplemental indentures for certain purposes as described therein.

 

Obligations Unconditional. No provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay Installment Payments on this Note at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed.

 

Additional Terms. The Notes are originally being issued as part of the Company’s 7.00% Tangible Equity Units (the “Units”) issued pursuant to that certain Purchase Contract Agreement, dated as of June 21, 2016, between the Company and Wilmington Trust, National Association, as Purchase Contract Agent and as Trustee of the Indenture (the “Purchase Contract Agreement”).  Holders of the Units have the right to separate such Units into their constituent parts, consisting of Separate Purchase Contracts (as defined in the Purchase Contract Agreement) and Separate Notes, during the times, and under the circumstances described in the Purchase Contract Agreement. Following separation of any Unit into its constituent Separate Purchase Contract and Separate Note, the Separate Notes are transferable independently from the Separate Purchase Contracts. In addition, Separate Notes can be recombined with Separate Purchase Contracts to recreate Units, as provided for in the Purchase Contract Agreement. Reference is hereby made to the Purchase Contract Agreement for a more complete description of the terms thereof applicable to the Units and Notes.

 

Transfer and Exchange. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note shall be registered on the Security Register of the Company, upon surrender of this Note for registration of transfer at the office or agency of the Company in the continental United States, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company duly executed by, the Holder hereof or by his or her attorney duly authorized in writing, and thereupon the Company shall execute and the Trustee shall authenticate and deliver in the name of the transferee or transferees a new Note or Notes in authorized denominations and for a like aggregate principal amount.

 

The Notes are initially issued in registered, global form without coupons in denominations initially equal to $18.94911 and integral multiples in excess thereof.

 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or other similar governmental charge payable in connection therewith.

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Issuer or the Trustee may treat the Holder in whose name this Note is registered as the absolute owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

This Note and the Indenture, and any claim, controversy or dispute arising under or related to the Indenture or this Note, shall be governed by, and construed in accordance with, the laws of the State of New York.

 

All terms used in this Note which are defined in the Indenture and not otherwise defined herein shall have the meanings assigned to them in the Indenture.

 

No recourse shall be had for the payment of any Installment Payment on this Note, or for any claim based hereon, or upon any obligation, covenant or agreement of the Company in the Indenture, against any incorporator, stockholder, officer or director, past, present or future of the Company or of any predecessor or successor corporation, either directly or through the Company or of any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment of penalty or otherwise; and all such personal liability is expressly released and waived as a condition of, and as part of the consideration for, the issuance of this Note.

 

A-13

 

The Company, each Holder and each Beneficial Owner (for U.S. federal income tax purposes) by its acquisition of a beneficial interest in the Notes agrees, for U.S. federal income tax purposes, to treat the Notes as indebtedness of the Company.

 

A copy of the Indenture is available for inspection at the office of the Trustee.

 

In the event of any inconsistency between the provisions of this Note and the provisions of the Indenture, the Indenture shall prevail.

 

A-14

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned assigns and transfers this Note to:

 

(Insert assignee’s social security or tax identification number)

 

(Insert address and zip code of assignee)

 

and irrevocably appoints:

 

as agent to transfer this Note on the books of the Company.  The agent may substitute another to act for him or her.

 

	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature Guarantee
    

 

(Sign exactly as your name appears on the other side of this Note)

 

A-15

 

SIGNATURE GUARANTEE

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act of 1934, as amended.

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
as Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    

 

 

Attest:

 

	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    

 

A-16

 

FORM OF REPURCHASE NOTICE

 

TO: Dynegy Inc. and Wilmington Trust, National Association, as Trustee

 

The undersigned registered Holder hereby irrevocably acknowledges receipt of a notice from Dynegy Inc. (the “Company”) regarding the right of Holders to elect to require the Company to repurchase the Notes and requests and instructs the Company to repay the entire principal amount of the number of Notes below designated, in accordance with the terms of the Indenture and the Notes, together with accrued and unpaid interest to, but excluding, the Repurchase Date to the registered holder hereof.  Capitalized terms used herein but not defined shall have the meanings ascribed to such terms in the indenture, dated as of June 21, 2016, between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”) as supplemented by the First Supplemental Indenture, dated as of June 21, 2016, between the Company and the Trustee (such indenture, as so supplemented, the “Indenture”).

 

The Notes shall be repurchased by the Company as of the Repurchase Date pursuant to the terms and conditions specified in the Notes and the Indenture.

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

NOTICE: The above signature of the Holder hereof must correspond with the name as written upon the face of the Notes in every particular without alteration or enlargement or any change whatever.

 

	
Notes   Certificate Number (if applicable):
    	
 
    	
 
    
	
 
    
	
Number   of Notes to be repurchased (if less than all, must be one Note or integral   multiples in excess thereof):
    
	
 
    	
 
    
	
 
    	
 
    
	
Social   Security or Other Taxpayer Identification Number:
    	
 
    	
 
    
						

 

A-17

 

SCHEDULE A

 

[INCLUDE IF A GLOBAL NOTE]

 

SCHEDULE OF INCREASES OR DECREASES IN THE NOTE

 

The initial number of Notes evidenced by this certificate is [  ]. The following increases or decreases in this Note have been made:

 

	
Date
    	
 
    	
Amount of
   decrease in number
   of Notes evidenced
   hereby
    	
 
    	
Amount of increase
   in number of Notes
   evidenced hereby
    	
 
    	
Number of Notes
   evidenced hereby
   following such
   decrease (or
   increase)
    	
 
    	
Signature of
   authorized officer
   of Trustee
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-18

 

EXHIBIT B

 

[FORM OF PURCHASE CONTRACT]

 

[INCLUDE IF A GLOBAL PURCHASE CONTRACT]

 

[THIS SECURITY IS A GLOBAL PURCHASE CONTRACT WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF CEDE & CO., AS NOMINEE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE “DEPOSITARY”), THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY. THIS GLOBAL PURCHASE CONTRACT IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE PURCHASE CONTRACT AGREEMENT AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

 

UNLESS THIS GLOBAL PURCHASE CONTRACT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

 

B-1

 

CUSIP No. : 26817R 124

 

ISIN No. : US26817R1243

 

	
No.
    	
[Initial]*   Number of Purchase   Contracts:            
    

 

This Purchase Contract certifies that, [CEDE & CO.]*  [  ]**, or its registered assigns (the “Holder”) is the registered owner of the number of Purchase Contracts [set forth above]**[shown on Schedule A hereto, which number may from time to time be reduced or increased as set forth on Schedule A hereto, as appropriate]* in accordance with the terms of the Purchase Contract Agreement, dated as of June 21, 2016 (as may be supplemented from time to time, the “Purchase Contract Agreement”), between the Company and Wilmington Trust, National Association, as purchase contract agent (including its successors hereunder, the “Purchase Contract Agent”) and as trustee under the Indenture (as defined on the reverse hereof)[, but which shall not exceed [   ] Purchase Contracts]*.

 

Each Purchase Contract consists of the rights of the Holder under such Purchase Contract with the Company. All capitalized terms used herein which are defined in the Purchase Contract Agreement have the meaning set forth therein.

 

Each Purchase Contract evidenced hereby obligates the Company to deliver to the Holder of this Purchase Contract on the Mandatory Settlement Date a number of shares of common stock, $0.01 par value (“Common Stock”), of the Company equal to the Settlement Amount, unless such Purchase Contract settles or is redeemed prior to the Mandatory Settlement Date, all as provided in the Purchase Contract Agreement and more fully described on the reverse hereof.

 

Reference is hereby made to the further provisions set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

 

IN WITNESS WHEREOF, DYNEGY INC. has caused this instrument to be signed manually or by facsimile by one of its duly authorized Officers.

 

	
Dated: [  ]
    	
 
    
	
 
    	
 
    
	
 
    	
DYNEGY INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

* Include only if a Global Unit.

** Include only if not a Global Unit.

 

B-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Purchase Contracts referred to in the within-mentioned Purchase Contract Agreement.

 

Date of authentication: [  ]

 

	
 
    	
Wilmington Trust, National   Association, as Purchase Contract Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized   Signatory
    

 

B-3

 

[FORM OF REVERSE OF PURCHASE CONTRACT]

 

Each Purchase Contract evidenced hereby is governed by the Purchase Contract Agreement. Reference is hereby made to the Purchase Contract Agreement and supplemental agreements thereto for a description of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Purchase Contract Agent, the Trustee, the Company, and the Holders and of the terms upon which the Purchase Contracts are, and are to be, executed and delivered.

 

Each Purchase Contract evidenced hereby obligates the Company to deliver to the Holder of this Purchase Contract, on the Mandatory Settlement Date, a number of shares of Common Stock equal to the Settlement Amount, unless such Purchase Contract settles or is redeemed prior to the Mandatory Settlement Date, all as provided in the Purchase Contract Agreement.

 

No fractional shares of Common Stock shall be issued upon settlement or redemption of Purchase Contracts, as provided in Section 4.05 of the Purchase Contract Agreement.

 

The Purchase Contracts are issuable only in registered form and only in denominations of a single Purchase Contract and any integral multiple thereof. The transfer of any Purchase Contract will be registered and Purchase Contracts may be exchanged as provided in the Purchase Contract Agreement.

 

The Holder of this Purchase Contract, by its acceptance hereof, authorizes the Purchase Contract Agent to enter into and perform the Purchase Contract Agreement on its behalf as its attorney-in-fact and agrees to be bound by the terms and provisions thereof.

 

Subject to certain exceptions set forth in the Purchase Contract Agreement, the provisions of the Purchase Contract Agreement may be amended with the consent of the Holders of a majority of the Purchase Contracts.

 

The Purchase Contracts, and any claim, controversy or dispute arising under or related to the Purchase Contracts, shall be governed by, and construed in accordance with, the laws of the State of New York.

 

The Company, the Purchase Contract Agent and its Affiliates and any agent of the Company or the Purchase Contract Agent may treat the Person in whose name this Purchase Contract is registered as the absolute owner of the Purchase Contracts evidenced hereby for the purpose of performance of the Purchase Contracts and for all other purposes whatsoever, whether or not any payments in respect thereof be overdue and notwithstanding any notice to the contrary, and neither the Company, the Purchase Contract Agent nor any such agent shall be affected by notice to the contrary.

 

The Purchase Contracts shall not entitle the Holder to any of the rights of a holder of the Common Stock or other Reference Property, except as provided by the Purchase Contract Agreement.

 

Each Purchase Contract (whether or not included in a Unit) is a security governed by Article 8 of the Uniform Commercial Code as in effect in the State of New York on the date hereof.

 

A copy of the Purchase Contract Agreement is available for inspection at the offices of the Purchase Contract Agent.

 

In the event of any inconsistency between the provisions of this Purchase Contract and the provisions of the Purchase Contract Agreement, the Purchase Contract Agreement shall prevail.

 

B-4

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN COM:
    	
as tenants in common
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
UNIF GIFT MIN ACT:
    	
 
    	
 
    	
Custodian:
    	
 
    
	
 
    	
(cust)
    	
 
    	
 
    	
(minor)
    

 

	
 
    	
Under Uniform gifts to Minors Act of
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TENANT:
    	
as tenants by the entireties
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
JT TEN:
    	
as joint tenants with right of survivorship and not as tenants in   common
    	
 
    	
 
    	
 
    

 

Additional abbreviations may also be used though not in the above list.

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

(Please insert Social Security or Taxpayer I.D. or other Identifying Number of Assignee)

 

(Please Print or Type Name and Address Including Postal Zip Code of Assignee)

 

the within Purchase Contracts and all rights thereunder, hereby irrevocably constituting and appointing attorney            , to transfer said Purchase Contracts on the books of the Company with full power of substitution in the premises.

 

	
DATED:
    	
 
    	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Notice : The signature to this assignment must correspond with the   name as it appears upon the face of the within Purchase Contracts in every   particular, without alteration or enlargement or any change whatsoever
    
	
 
    	
 
    	
 
    	
 
    
	
Signature Guarantee:
    	
 
    	
 
    	
 
    	
 
    
							

 

B-5

 

SETTLEMENT INSTRUCTIONS

 

The undersigned Holder directs that shares of Common Stock or other securities deliverable upon settlement or redemption on or after the Settlement Date of Purchase Contracts evidenced by this instrument be registered in the name of, and delivered, together with a check in payment for any fractional share (or cash included in the Redemption Amount, if applicable), to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer or similar taxes payable incidental thereto.

 

	
DATED: 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Signature Guarantee: 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
(if assigned to another Person)
    
	
If shares are to be registered in the name of and delivered to a   Person other than the Holder, please (i) print such Person’s name and   address and (ii) provide a guarantee of your signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
Address
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Social Security or other Taxpayer Identification Number, if any
    	
 
    	
 
    

 

B-6

 

ELECTION TO SETTLE EARLY

 

The undersigned Holder of this Purchase Contract hereby irrevocably exercises the option to effect Early Settlement in accordance with the terms of the Purchase Contract Agreement with respect to the Purchase Contracts evidenced by this instrument specified below. The undersigned Holder directs that shares of Common Stock or other securities deliverable upon such Early Settlement be registered in the name of, and delivered, together with a check in payment for any fractional share and any Purchase Contract representing any Purchase Contracts evidenced hereby as to which Early Settlement is not effected, to the undersigned at the address indicated below unless a different name and address have been indicated below. If shares of Common Stock or other securities are to be registered in the name of a Person other than the undersigned, the undersigned will pay any transfer or similar taxes payable incident thereto.

 

	
DATED: 
    	
 
    	
 
    	
 
    	
Signature:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature Guarantee:
    	
 
    	
 
    	
 
    	
 
    
								

 

 

Number of Purchase Contracts evidenced hereby as to which Early Settlement is being elected:

 

	
If shares of Common Stock or Purchase Contracts are to be registered   in the name of and delivered to a Person other than the Holder, please print   such Person’s name and address:
    	
 
    	
REGISTERED HOLDER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Please print name and address of Registered Holder:
    
	
 
    	
 
    	
 
    
	
Name
    	
 
    	
Name
    
	
 
    	
 
    	
 
    
	
Address
    	
 
    	
Address
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Social Security or other Taxpayer Identification Number, if any
    	
 
    	
 
    

 

B-7

 

SCHEDULE A

 

[INCLUDE IF A GLOBAL PURCHASE CONTRACT]

 

SCHEDULE OF INCREASES OR DECREASES IN THE PURCHASE CONTRACT

 

The initial number of Purchase Contracts evidenced by this certificate is              . The following increases or decreases in this certificate have been made:

 

	
Date
    	
 
    	
Amount of increase
   in number of
   Purchase Contracts
   evidenced hereby
    	
 
    	
Amount of
   decrease in number
   of Purchase
   Contracts
   evidenced hereby
    	
 
    	
Number of
   Purchase Contracts
   evidenced hereby
   following such
   decrease or
   increase
    	
 
    	
Signature of
   authorized
   signatory of
   Purchase Contract
   Agent
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

B-8Blueprint

Exhibit 10.1 

EXECUTION VERSION

CUSIP: 22748CAG9

Term Loan A CUSIP: 22748CAH7

Revolver CUSIP: 22748CAJ3

 

CREDIT AGREEMENT

 

dated as of June 22, 2016

 

among

 

CROSS COUNTRY HEALTHCARE, INC.,

as the Borrower

 

THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN,

as the Guarantors

 

 

THE LENDERS FROM TIME TO TIME PARTY HERETO

 

 

and

 

 

SUNTRUST BANK,

as Administrative Agent, Swingline Lender and an Issuing Bank,

 

 

BMO HARRIS BANK, N.A.,

as Syndication Agent

 

and

 

BANK UNITED, N.A.

and

FIFTH THIRD BANK,

as Co-Documentation Agents

 

 

SUNTRUST ROBINSON HUMPHREY, INC.,

as Sole Lead Arranger and Sole Bookrunner

 

 

 

TABLE OF CONTENTS

	

Article I DEFINITIONS; CONSTRUCTION  
	
1

	
Section 1.1
	
Definitions
	
1

	
Section 1.2
	
Classifications of Loans and Borrowings
	
32

	
Section 1.3
	
Accounting Terms and Determination
	
33

	
Section 1.4
	
Terms Generally
	
33

	
Section 1.5
	
Letter of Credit Amounts
	
34

	
Section 1.6
	
Times of Day
	
34

	

Article II AMOUNT AND TERMS OF THE COMMITMENTS  
	
34

	
Section 2.1
	
General Description of Facilities
	
34

	
Section 2.2
	
Revolving Loans
	
34

	
Section 2.3
	
Procedure for Revolving Borrowings
	
35

	
Section 2.4
	
Swingline Commitment
	
35

	
Section 2.5
	
Term Loan A Commitment
	
36

	
Section 2.6
	
Funding of Borrowings
	
37

	
Section 2.7
	
Interest Elections
	
37

	
Section 2.8
	
Optional Reduction and Termination of Commitments
	
38

	
Section 2.9
	
Repayment of Loans
	
38

	
Section 2.10
	
Evidence of Indebtedness
	
39

	
Section 2.11
	
Optional Prepayments
	
40

	
Section 2.12
	
Mandatory Prepayments
	
40

	
Section 2.13
	
Interest on Loans
	
41

	
Section 2.14
	
Fees
	
42

	
Section 2.15
	
Computation of Interest and Fees
	
43

	
Section 2.16
	
Inability to Determine Interest Rates
	
43

	
Section 2.17
	
Illegality
	
44

	
Section 2.18
	
Increased Costs
	
44

	
Section 2.19
	
Funding Indemnity
	
45

	
Section 2.20
	
Taxes
	
46

	
Section 2.21
	
Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	
49

	
Section 2.22
	
Letters of Credit
	
51

	
Section 2.23
	
Increase of Commitments; Additional Lenders
	
56

	
Section 2.24
	
Mitigation of Obligations
	
58

	
Section 2.25
	
Replacement of Lenders
	
58

	
Section 2.26
	
Reallocation and Cash Collateralization of Defaulting Lender Commitment
	
59

	

Article III CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT  
	
60

	
Section 3.1
	
Conditions To Effectiveness
	
60

	
Section 3.2
	
Each Credit Event
	
63

	
Section 3.3
	
Delivery of Documents
	
64

	

Article IV REPRESENTATIONS AND WARRANTIES  
	
64

	
Section 4.1
	
Existence; Power
	
64

	
Section 4.2
	
Organizational Power; Authorization
	
64

	
Section 4.3
	
Governmental Approvals; No Conflicts
	
64

	
Section 4.4
	
Financial Statements
	
64

	
Section 4.5
	
Litigation and Environmental Matters
	
65

	
Section 4.6
	
Compliance with Laws and Agreements
	
65

	
Section 4.7
	
No Default
	
65

 

i

 

 

	
Section 4.8
	
Investment Company Act, Etc
	
65

	
Section 4.9
	
Taxes
	
65

	
Section 4.10
	
Margin Regulations
	
66

	
Section 4.11
	
ERISA
	
66

	
Section 4.12
	
Ownership of Property
	
66

	
Section 4.13
	
Disclosure
	
66

	
Section 4.14
	
Labor Relations
	
67

	
Section 4.15
	
Subsidiaries
	
67

	
Section 4.16
	
Solvency
	
67

	
Section 4.17
	
Business Locations; Taxpayer Identification Number
	
67

	
Section 4.18
	
Material Agreements
	
67

	
Section 4.19
	
Anti-Corruption Laws and Sanctions
	
68

	
Section 4.20
	
Subordination of Subordinated Debt
	
68

	
Section 4.21
	
No EEA Financial Institutions
	
68

	
Section 4.22
	
Perfection of Security Interests in the Collateral.
	
68

	
Section 4.23.
	
HIPAA Compliance
	
69

	
Section 4.24.
	
Compliance With Health Care Laws
	
70

	
Section 4.25.
	
Patriot Act
	
70

	

Article V AFFIRMATIVE COVENANTS  
	
70

	
Section 5.1
	
Financial Statements and Other Information
	
70

	
Section 5.2
	
Notices of Material Events
	
72

	
Section 5.3
	
Existence; Conduct of Business
	
73

	
Section 5.4
	
Compliance with Laws, Etc
	
73

	
Section 5.5
	
Payment of Obligations
	
73

	
Section 5.6
	
Books and Records
	
74

	
Section 5.7
	
Visitation, Inspection, Etc
	
74

	
Section 5.8
	
Maintenance of Properties; Insurance
	
74

	
Section 5.9
	
Use of Proceeds
	
74

	
Section 5.10
	
Additional Subsidiaries
	
75

	
Section 5.11
	
Further Assurances
	
75

	
Section 5.12
	
Cash Management
	
76

	
Section 5.13
	
Healthcare Matters
	
77

	

Article VI FINANCIAL COVENANTS  
	
77

	
Section 6.1
	
Consolidated Leverage Ratio
	
78

	
Section 6.3
	
Consolidated Fixed Charge Coverage Ratio
	
78

	

Article VII NEGATIVE COVENANTS  
	
78

	
Section 7.1
	
Indebtedness and Preferred Equity
	
78

	
Section 7.2
	
Negative Pledge
	
79

	
Section 7.3
	
Fundamental Changes
	
79

	
Section 7.4
	
Investments, Loans, Etc.
	
80

	
Section 7.5
	
Restricted Payments
	
80

	
Section 7.6
	
Payment on Certain Indebtedness
	
81

	
Section 7.7
	
Sale of Assets
	
82

	
Section 7.8
	
Transactions with Affiliates
	
82

	
Section 7.9
	
Restrictive Agreements
	
82

	
Section 7.10
	
Sale and Leaseback Transactions
	
83

	
Section 7.11
	
Hedging Transactions
	
83

	
Section 7.12
	
Amendment to Certain Documents
	
83

	
Section 7.13
	
Accounting Changes
	
83

 

ii

 

 

	
Section 7.14
	
Government Regulation
	
83

	
Section 7.15
	
Ownership of Subsidiaries
	
83

	
Section 7.16
	
Use of Proceeds
	
83

	
Section 7.17
	
Sanctions and Anti-Corruption Laws
	
84

	

Article VIII EVENTS OF DEFAULT  
	
84

	
Section 8.1
	
Events of Default
	
84

	
Section 8.2
	
Application of Funds
	
86

	

Article IX THE ADMINISTRATIVE AGENT  
	
89

	
Section 9.1
	
Appointment of Administrative Agent
	
89

	
Section 9.2
	
Nature of Duties of Administrative Agent
	
89

	
Section 9.3
	
Lack of Reliance on the Administrative Agent
	
90

	
Section 9.4
	
Certain Rights of the Administrative Agent
	
90

	
Section 9.5
	
Reliance by Administrative Agent
	
90

	
Section 9.6
	
The Administrative Agent in its Individual Capacity
	
91

	
Section 9.7
	
Successor Administrative Agent
	
91

	
Section 9.8
	
Withholding Tax
	
92

	
Section 9.9
	
Administrative Agent May File Proofs of Claim
	
92

	
Section 9.10
	
Authorization to Execute Other Loan Documents
	
92

	
Section 9.11
	
Collateral and Guaranty Matters
	
93

	
Section 9.12
	
No Other Duties, etc
	
93

	
Section 9.13
	
Right to Realize on Collateral and Enforce Guarantee
	
93

	
Section 9.14
	
Hedging Obligations and Bank Product Obligations
	
94

	

Article X THE GUARANTY  
	
94

	
Section 10.1
	
The Guaranty
	
94

	
Section 10.2
	
Obligations Unconditional
	
94

	
Section 10.3
	
Reinstatement
	
95

	
Section 10.4
	
Certain Additional Waivers
	
95

	
Section 10.5
	
Remedies
	
95

	
Section 10.6
	
Rights of Contribution
	
96

	
Section 10.7
	
Guarantee of Payment; Continuing Guarantee
	
96

	
Section 10.8
	
Keepwell
	
96

	

Article XI MISCELLANEOUS  
	
96

	
Section 11.1
	
Notices
	
96

	
Section 11.2
	
Waiver; Amendments
	
99

	
Section 11.3
	
Expenses; Indemnification
	
100

	
Section 11.4
	
Successors and Assigns
	
102

	
Section 11.5
	
Governing Law; Jurisdiction; Consent to Service of Process
	
106

	
Section 11.6
	
WAIVER OF JURY TRIAL
	
106

	
Section 11.7
	
Right of Setoff
	
107

	
Section 11.8
	
Counterparts; Integration
	
107

	
Section 11.9
	
Survival
	
107

	
Section 11.10
	
Severability
	
108

	
Section 11.11
	
Confidentiality
	
108

	
Section 11.12
	
Interest Rate Limitation
	
108

	
Section 11.13
	
Waiver of Effect of Corporate Seal
	
108

	
Section 11.14
	
Patriot Act
	
109

	
Section 11.15
	
No Advisory or Fiduciary Responsibility
	
109

	
Section 11.16
	
Electronic Execution of Assignments and Certain Other Documents
	
109

 

iii

 

 

	
Section 11.17
	
Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	
109

 

 

 

iv

 

 

	
Schedules
	
 
	
 

	
 
	
 
	
 

	
Schedule I
	
-
	
Commitment Amounts

	
Schedule 2.22
	
-
	
Existing Letters of Credit

	
Schedule 4.15
	
-
	
Subsidiaries

	
Schedule 4.17-1
	
-
	
Locations of Real Property

	
Schedule 4.17-2
	
-
	
Locations of Chief Executive Office, Taxpayer Identification Number, Etc.

	
Schedule 4.17-3
	
-
	
Changes in Legal Name, State of Formation and Structure

	
Schedule 4.18
	
-
	
Material Agreements

	
Schedule 7.1
	
-
	
Outstanding Indebtedness

	
Schedule 7.2
	
-
	
Existing Liens

	
Schedule 7.4
	
-
	
Existing Investments

	
 
	
 
	
 

	
Exhibits
	
 
	
 

	
 
	
 
	
 

	
Exhibit 2.3
	
-
	
Form of Notice of Revolving Borrowing

	
Exhibit 2.4
	
-
	
Form of Notice of Swingline Borrowing

	
Exhibit 2.7
	
-
	
Form of Notice of Conversion/Continuation

	
Exhibit 2.10
	
-
	
Form of Note

	
Exhibits 2.20 (1-4)
	
-
	
Forms of U.S. Tax Compliance Certificates

	
Exhibit 5.1(c)
	
-
	
Form of Compliance Certificate

	
Exhibit 5.10
	
-
	
Form of Guarantor Joinder Agreement

	
Exhibit 11.4
	
-
	
Form of Assignment and Acceptance

 
 

v

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT (this “Agreement”) is made and entered into as of June 22, 2016, by and among CROSS COUNTRY HEALTHCARE, INC., a Delaware corporation (the “Borrower”), the Guarantors (defined herein), the Lenders (defined herein),
and SUNTRUST BANK, in its capacities as the Administrative Agent, an Issuing Bank and the Swingline Lender.

W I T N E S S E T H:

WHEREAS, the Borrower has requested that the Lenders provide, in its favor, a $100,000,000 revolving credit facility and a delayed draw term loan in an aggregate principal amount equal to $40,000,000;

WHEREAS, subject to the terms and conditions of this Agreement, the Lenders, the Issuing Banks and the Swingline Lender to the extent of their respective Commitments as defined herein, are willing severally to establish the requested revolving credit facility, letter of credit subfacility and the swingline subfacility in favor of the Borrower, and
the Lenders agree to make the term loan to the Borrower;

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Borrower, the Lenders, the Administrative Agent, the Issuing Banks and the Swingline Lender agree as follows:

ARTICLE I

DEFINITIONS; CONSTRUCTION 

Section 1.1 Definitions

. In addition to the other terms defined herein, the following terms used herein shall have the meanings herein specified (to be equally applicable to both the singular and plural forms of the terms defined):

“Acquired Business” shall mean the entity or assets acquired by the Borrower or any Subsidiary in an Acquisition on or after the date hereof.

 

“Acquisition” shall mean (a) any Investment by the Borrower or any of its Subsidiaries in any other Person pursuant to which
such Person shall become a Subsidiary or shall be merged with the Borrower or any of its Subsidiaries or (b) any acquisition by the Borrower or any of its Subsidiaries of the assets of any Person (other than a Subsidiary)
that constitute all or a substantial portion of the assets of such Person or a division or business unit of such Person.

 

“Acquisition Agreement” shall have the meaning set forth in Section 2.23.

 

“Additional Lender” shall have the meaning set forth in Section 2.23.

“Adjusted LIBOR” shall mean, with respect to each Interest Period for a Eurodollar Loan, (i) the rate per annum equal to the London interbank offered rate for deposits in Dollars appearing on Reuters screen page LIBOR 01 (or, if such service is
not available, on any successor or substitute page of such service or any successor to such service, or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately11:00 A.M. (London time) two (2) Business Days prior to the first day of such Interest Period, with a maturity comparable to such Interest Period, divided by (ii) a percentage equal to 100% minus the then stated
maximum rate of all reserve requirements (including any marginal, emergency, supplemental, special or other reserves and without benefit of credits for proration, exceptions or offsets that may be available from time to time) applicable to any member bank of the Federal Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D); provided, that if the rate referred to in clause
(i) above is not available at any such time for any reason, then the rate referred to in clause (i) shall instead be the interest rate per annum, as reasonably determined by the Administrative Agent, to be the arithmetic average of the rates per annum at which deposits in Dollars in an approximate amount equal to the amount of such Eurodollar Loan are offered by major banks in
the London interbank market to the Administrative Agent at approximately 10:00 A.M. (Atlanta, Georgia time), two (2) Business Days prior to the first day of such Interest Period. Notwithstanding anything to the contrary in the foregoing, if the Adjusted LIBOR is less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

 

“Administrative Agent” shall mean SunTrust Bank in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

“Administrative Questionnaire” shall mean, with respect to each Lender, an administrative questionnaire in the form provided by the Administrative Agent and submitted to the Administrative Agent duly completed by such Lender.

“Affiliate” shall mean, as to any Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person.  For the purposes of this definition, “Control”
shall mean the power, directly or indirectly, either to (i) vote 10% or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of a Person or (ii) direct or cause the direction of the management and policies of a Person, whether through the ability to exercise voting
power, by control or otherwise. The terms “Controlling”, “Controlled by”, and “under common Control with” have the meanings correlative thereto.

“Agent Parties” shall have the meaning set forth in Section 11.1(b)(iv).

“Aggregate Revolving Commitments” shall mean the Revolving Commitments of all the Lenders at any time outstanding. On the Closing Date, the aggregate amount of the Aggregate Revolving Commitments is One Hundred Million Dollars ($100,000,000).

“Agreement” shall have the meaning set forth in the introductory paragraph hereof.

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

“Applicable Lending Office” shall mean, for each Lender and for each Type of Loan, the “Lending Office” of such Lender (or an Affiliate of such Lender) designated for such Type of Loan in the Administrative Questionnaire submitted by such Lender or such other office of such Lender
(or an Affiliate of such Lender) as such Lender may from time to time specify to the Administrative Agent and the Borrower as the office by which its Loans of such Type are to be made and maintained.

 

“Applicable Margin” shall mean, as of any date, a percentage per annum determined by reference to the applicable Consolidated Net Leverage Ratio in effect on such date as set forth in the table below; provided, that a change
in the Applicable Margin resulting from a change in the Consolidated Net Leverage Ratio shall be effective on the second Business Day after which the Borrower delivers each of the financial statements required by Section 5.1(a) and (b) and the Compliance Certificate required by Section 5.1(c); provided, further,
that if at any time the Borrower shall have failed to deliver such financial statements and such Compliance Certificate when so required, the Applicable Margin shall be at Level V as set forth in the table below until the second Business Day after which such financial statements and Compliance Certificate are delivered, at which time the Applicable Margin shall be determined as provided above. Notwithstanding the foregoing, the Applicable Margin from the Closing Date until the second Business Day after which
the financial statements and Compliance Certificate for the Fiscal Quarter ending September 30, 2016 are required to be delivered shall be at Level III as set forth in the table below. In the event that any financial statement or Compliance Certificate delivered hereunder is shown to be inaccurate (regardless of whether this Agreement or the Commitments are in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin based upon
the pricing grid set forth in the table below (the “Accurate Applicable Margin”) for any period that such financial statement or Compliance Certificate covered, then (i) the Borrower shall as promptly as practicable deliver to the Administrative Agent a correct financial statement or Compliance Certificate, as the case may be, for such period, (ii) the Applicable Margin shall be adjusted such that after giving effect to the corrected financial statements
or Compliance Certificate, as the case may be, the Applicable Margin shall be reset to the Accurate Applicable Margin based upon the pricing grid set forth in the table below for such period and (iii) the Borrower shall immediately pay to the Administrative Agent, for the account of the Lenders, the accrued additional interest owing as a result of such Accurate Applicable Margin for such period.  The provisions of this definition shall not limit the rights of the Administrative Agent and the Lenders with
respect to Section 2.13(c) or Article VIII.

 

2

 

 

	
Level
	
Consolidated Net Leverage Ratio
	
Eurodollar Loans, LIBOR Index Rate Loans and Letter of Credit Fee
	
Base Rate

Loans
	
Commitment

Fee

	
I
	
< 1.50:1.00
	
1.75%
	
0.75%
	
0.25%

	
II
	
> 1.50:1.00 but < 2.00:1.00
	
2.00%
	
1.00%
	
0.30%

	
III
	
> 2.00:1.00 but < 2.50:1.00
	
2.25%
	
1.25%
	
0.30%

	
IV
	
> 2.50:1.00 but < 3.00:1.00
	
2.50%
	
1.50%
	
0.35%

	
V
	
> 3.00:1.00
	
2.75%
	
1.75%
	
0.40%

 

The “Applicable Margin” for any Incremental Term Loan shall be the percentage per annum provided in the definitive documentation for such Incremental Term Loan.

“Applicable Quarter” shall have the meaning set forth in Section 8.3(a)(i).

“Approved Fund” shall mean any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business and that is administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that administers or manages a Lender.

“Arranger” shall mean SunTrust Robinson Humphrey, Inc., in its capacity as sole lead arranger and sole bookrunner.

“Asset Sale” shall mean the sale, transfer, license, lease or other disposition of any property by the Borrower or any Subsidiary, including any sale and leaseback transaction and 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 (a) the sale of inventory in the ordinary course of business; (b) the sale or disposition for fair market value of obsolete or worn out property or other property not necessary for operations of the Borrower and its Subsidiaries disposed of in the ordinary course of business; (c) the disposition of property (including the cancellation of Indebtedness permitted by Section 7.4(d)) to the Borrower or
any Subsidiary; provided, that if the transferor of such property is a Loan Party then the transferee thereof must be a Loan Party; (d) the disposition of accounts receivable in connection with the collection or compromise thereof; (e) licenses, sublicenses, leases or subleases granted to others in the ordinary course of business or not interfering in any material respect with the business of the Borrower or any Subsidiary; (f) the sale or disposition of Permitted
Investments for fair market value in the ordinary course of business; (g) the disposition of shares of Capital Stock of any Subsidiary in order to qualify members of the governing body of such Subsidiary if required by applicable Law; and (h) any sale or other disposition of all or any of the GSN Contracts consummated prior to the first anniversary of the Closing Date in an amount not exceed $2,000,000 in the aggregate.

 

3

 

“Assignment and Acceptance” shall mean an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 11.4(b)) and accepted by the Administrative Agent, in the form
of Exhibit 11.4 attached hereto or any other form approved by the Administrative Agent.

“Audited Financial Statements” shall mean the audited consolidated balance sheet of the Borrower and its Subsidiaries for the Fiscal Year ended December 31, 2015, and the related consolidated statements of income or operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries for
such Fiscal Year, including the notes thereto.

 

“Availability Period” shall mean the period from the Closing Date to but excluding the Revolving Commitment Termination Date.

“Bail-In Action” shall mean 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” shall mean, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In
Legislation Schedule.

“Bank Product Obligations” shall mean, collectively, all obligations and other liabilities of any Loan Party to any Bank Product Provider arising with respect to any Bank Products.

“Bank Product Provider” shall mean any Person that (a) (i) at the time it provides any Bank Products to any Loan Party, is a Lender or an Affiliate of a Lender or (ii) has provided any Bank Products to any Loan Party that exist on the Closing Date, and such Person is a Lender or an Affiliate
of a Lender on the Closing Date and (b) except when the Bank Product Provider is SunTrust Bank and its Affiliates, has provided prior written notice to the Administrative Agent, which has been acknowledged by the Borrower of the existence of such Bank Product. In no event shall any Bank Product Provider acting in such capacity be deemed a Lender for purposes hereof to the extent of and as to Bank Products except that each reference to the term “Lender” in Article
IX and Section 11.4 shall be deemed to include such Bank Product Provider and in no event shall the approval of any such person in its capacity as Bank Product Provider be required in connection with the release or termination of any security interest or Lien of the Administrative Agent.

“Bank Products” shall mean any of the following services provided to any Loan Party by any Bank Product Provider: (a) any treasury or other cash management services, including deposit accounts, automated clearing house (ACH) origination and other funds transfer, depository (including cash
vault and check deposit), zero balance accounts and sweeps, return items processing, controlled disbursement accounts, positive pay, lockboxes and lockbox accounts, account reconciliation and information reporting, payables outsourcing, payroll processing, trade finance services, investment accounts and securities accounts, and (b) card services, including credit card (including purchasing card and commercial card), prepaid cards, including payroll, stored value and gift cards, merchant services processing, and
debit card services.

 

4

 

“Base Rate” shall mean the highest of (a) the rate that the Administrative Agent announces from time to time as its prime lending rate, as in effect from time to time, (b) the Federal Funds Rate, as in effect from time to time, plus 0.5%per
annum and (c) the One Month LIBOR Index Rate plus 1.00% per annum (any changes in such rates to be effective as of the date of any change in such rate). The Administrative Agent’s prime lending rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent may make commercial loans or other loans at rates of interest at, above, or below the Administrative Agent’s prime lending
rate. Notwithstanding anything to the contrary in the foregoing, if the Base Rate is less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

“Borrower” shall have the meaning set forth in the introductory paragraph hereof.

“Borrower Materials” shall have the meaning set forth in Section 5.1.

 

“Borrowing” shall mean a borrowing consisting of (a) Loans of the same Class and Type, made, converted or continued on the same date and in the case of Eurodollar Loans, as to which a single Interest Period is in effect, or (b) a Swingline Loan.

“Business Day” shall mean any day other than (a) a Saturday, Sunday or other day on which commercial banks in Atlanta, Georgia are authorized or required by Law to close and (b) if such day relates to a Borrowing of, a payment or prepayment of principal or interest on, a conversion of or
into, or an Interest Period for, a Eurodollar Loan or a LIBOR Index Rate Loan or a notice with respect to any of the foregoing, any day on which banks are not open for dealings in dollar deposits in the London interbank market.

“Capital Expenditures” shall mean for any period, without duplication, (a) the additions to property, plant and equipment and other capital expenditures of the Borrower and its Subsidiaries that are (or would be) set forth on a consolidated statement of cash flows of the Borrower for such
period and (b) Capital Lease Obligations incurred by the Borrower and its Subsidiaries during such period.

“Capital Lease Obligations” of any Person shall mean all obligations of such Person to pay rent or other amounts under any lease (or other arrangement conveying the right to use) of real or personal property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such Person, and the amount of such obligations shall be the capitalized amount thereof.

“Capital Stock” shall mean all shares, options, warrants, general or limited partnership interests, membership interests or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or equivalent entity whether voting or nonvoting, including
common stock, preferred stock or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Securities Exchange Act of 1934).

“Cash Collateralize” shall mean, in respect of any obligations, to provide and pledge (as a first priority perfected security interest) cash collateral for such obligations in Dollars, to the Administrative Agent pursuant to documentation in form and substance, reasonably satisfactory to
the Administrative Agent (and “Cash Collateralization” and “Cash Collateral” have a corresponding meaning).

 

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“Change in Control” shall mean the occurrence of one or more of the following events: (a) any sale, lease, exchange or other transfer (in a single transaction or a series of related transactions) of all or substantially all of the assets of the Borrower to any Person or “group” (within the meaning
of the Securities Exchange Act of 1934 and the rules of the SEC thereunder in effect on the date hereof), (b) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof) of 35% or more of the outstanding shares of the voting stock of the Borrower, or (c) during any period of twenty-four (24) consecutive months, a majority of the
members of the board of directors or other equivalent governing body of the Borrower cease to be composed of individuals who that are Continuing Directors.

 

“Change in Law” shall mean (a) the adoption of any applicable Law after the date of this Agreement, (b) any change in any applicable Law after the date of this Agreement, or (c) compliance by any Lender (or its Applicable Lending Office) or either Issuing Bank (or for purposes of Section
2.18(b), by the Parent Company of such Lender or such Issuing Bank, if applicable) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement. Notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act, and all requests, rules, guidelines and directives promulgated thereunder, 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 regulatory authorities, in each case pursuant to Basel III, in each case, are deemed to have been introduced or adopted after the date hereof, regardless of the date enacted or adopted.

“Charges” shall have the meaning set forth in Section 11.12.

“Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Term Loans and when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline
Commitment or a Term Loan Commitment.

“Closing Date” shall mean the date hereof.

“Code” shall mean the Internal Revenue Code of 1986, as amended and in effect from time to time.

“Collateral” shall mean a collective reference to all real and personal property with respect to which Liens in favor of the Administrative Agent, for the benefit of itself and the holders of the Obligations, are purported to be granted pursuant to and in accordance with the terms of the
Collateral Documents.

“Collateral Documents” shall mean a collective reference to the Security Agreement, any Mortgage and any other security documents executed and delivered by any Loan Party pursuant to Section 5.11.

“Commitment” shall mean a Revolving Commitment, a Swingline Commitment or a Term Loan Commitment or any combination thereof (as the context shall permit or require).

 

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“Commitment Fee” shall have the meaning set forth in Section 2.14(b).

“Commodity Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

“Communications” shall have the meaning set forth in Section 11.1(b)(iv).

“Compliance Certificate” shall mean a certificate from the principal executive officer or the principal financial officer of the Borrower in the form of, and containing the certifications set forth in, the certificate attached hereto as Exhibit 5.1(c).

“Connection Income Taxes” shall mean Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

“Consolidated EBITDA” shall mean, for the Borrower and its Subsidiaries for any period, determined on a consolidated basis, an amount equal to the sum of (a) Consolidated Net Income for such period (excluding gains and losses from any sale of assets, other than sales of inventory in the
ordinary course of business) plus (b) to the extent deducted in determining Consolidated Net Income for such period, without duplication, (i) Consolidated Interest Expense for such period, (ii) income tax expense for such period, (iii) depreciation and amortization for such period, (iv) non-cash charges (or minus non-cash gains), including non-cash charges with respect to asset impairment, stock based compensation, adjustments of contingent consideration liabilities (including,
but not limited to, adjustments made at the time of payment) and losses on derivatives (other than the write-down of current assets) for such period and (v) fees and expenses in connection with Permitted Acquisitions, permitted issuances of Indebtedness or equity securities and Asset Sales plus (c) integration and restructuring costs, cost savings and synergies that are supported by quality of earnings reports or other reports in form and substance reasonably acceptable
to the Administrative Agent; provided, that, in any event, the aggregate amount added back pursuant to clauses (b)(v) and (c) above shall not exceed an amount equal to 5.0% of Consolidated EBITDA for such period (determined prior to giving effect to such add-backs).

“Consolidated Fixed Charge Coverage Ratio” shall mean, as of any date, the ratio of (a) Consolidated EBITDA less the actual amount paid by the Borrower and its Subsidiaries in cash on account of Capital Expenditures less taxes
paid in cash by the Borrower and its Subsidiaries less Restricted Payments paid in cash by the Borrower and its Subsidiaries to (b) Consolidated Fixed Charges, in each case measured on a consolidated basis as of the last day of the most recently ended four consecutive Fiscal Quarters for which financial statements are required to have been delivered pursuant to Section 5.1(a) or (b).

“Consolidated Fixed Charges” shall mean, for the Borrower and its Subsidiaries for any period, the sum, without duplication, of (a) Consolidated Interest Expense paid in cash for such period and (b) scheduled principal payments made on Consolidated Total Debt during such period.

“Consolidated Interest Expense” shall mean, for the Borrower and its Subsidiaries for any period determined on a consolidated basis, the sum of (a) total interest expense, including without limitation the interest component of any payments in respect of Capital Lease Obligations capitalized
or expensed during such period (whether or not actually paid during such period) plus (b) the net amount payable (or minus the net amount receivable) with respect to Hedging Transactions during such period (whether or not actually paid or received during such period).

“Consolidated Net Income” shall mean, for the Borrower and its Subsidiaries for any period determined on a consolidated basis, the net income (or loss) of the Borrower and its Subsidiaries for such period but excluding therefrom (to the extent otherwise included therein) (a) any extraordinary
gains or losses, (b) any gains attributable to write-ups of assets and (c) any equity interest of the Borrower or any Subsidiary of the Borrower in the unremitted earnings of any Person that is not a Subsidiary.

 

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“Consolidated Net Leverage Ratio” shall mean, as of any date, the ratio of (a) Consolidated Total Debt as of such date less up to $7,500,000 of unencumbered and available cash of the Borrower and the Guarantors as of such date to (b) Consolidated
EBITDA, in each case measured as of the last day of the most recently ended four consecutive Fiscal Quarters for which financial statements are required to have been delivered pursuant to Section 5.1(a) or (b).

“Consolidated Total Assets” shall mean, as of any date, the total assets of the Borrower and its Subsidiaries determined in accordance with GAAP, as of the last day of the fiscal quarter ended immediately prior to the date of such determination for which financial statements have been (or
are required pursuant to Section 5.1(a) or (b) to have been) delivered to the Administrative Agent pursuant to Section 5.1(a) or (b).

“Consolidated Total Debt” shall mean, as of any date, all Indebtedness of the Borrower and its Subsidiaries measured on a consolidated basis as of such date, but excluding Indebtedness of the type described in subsection (i) of the definition thereto.

“Consolidated Total Leverage Ratio” shall mean, as of any date, the ratio of (a) Consolidated Total Debt as of such date to (b) Consolidated EBITDA, in each case measured as of the last day of the most recently ended four consecutive Fiscal Quarters for which financial statements are required
to have been delivered pursuant to Section 5.1(a) or (b).

“Continuing Director” shall mean, with respect to any period, any individuals (A) who were members of the board of directors or other equivalent governing body of the Borrower on the first day of such period, (B) whose election or nomination to that board
or equivalent governing body was approved by individuals referred to in clause (A) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body, or (C) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (A) and (B) above constituting
at the time of such election or nomination at least a majority of that board or equivalent governing body.

“Contractual Obligation” of any Person shall mean any provision of any security issued by such Person or of any agreement, instrument or undertaking under which such Person is obligated or
by which it or any of the property in which it has an interest is bound.

“Convertible Note Documents” shall mean all indentures, agreements, notes, guaranties and other material agreements governing or evidencing any Permitted Subordinated Debt and all other material documents relating thereto, including without limitation the Convertible Note Purchase Agreement
and the Convertible Note Subordination Agreement.

“Convertible Note Indebtedness” shall mean Indebtedness under those certain 8% Senior Convertible Notes Due June 30, 2020 (in an aggregate original principal amount of $25,000,000) evidenced by, and subject
to the terms of, the Convertible Note Documents.

“Convertible Note Purchase Agreement” shall mean that certain Convertible Note Purchase Agreement dated as of June 30, 2014, by and among the Borrower, as issuer, the guarantors identified therein and the noteholders identified therein.

 

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“Convertible Note Subordination Agreement” shall mean that certain debt subordination agreement dated as of the date hereof among the Administrative Agent, as senior agent, the subordinated creditors identified therein and the borrowers (including the Borrower) identified therein.

“Credit Event” shall mean the advancing of any Loan, or the issuance of, or extension of the expiration date or increase in the amount of, any Letter of Credit.

“Cure Notice” shall have the meaning set forth in Section 8.3(b).

“Cure Period” shall have the meaning set forth in Section 8.3(a).

“Cure Right” shall have the meaning set forth in Section 8.3(a).

“Debtor Relief Laws” shall mean 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.

“Default” shall mean any condition or event that, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

“Default Interest” shall have the meaning set forth in Section 2.13(d).

“Defaulting Lender” shall mean, at any time, any Lender as to which the Administrative Agent has notified the Borrower that (a) such Lender has failed for three (3) or more Business Days to comply with its obligations under this Agreement to make a Loan and/or to make a payment to the applicable
Issuing Bank in respect of a Letter of Credit or to the Swingline Lender in respect of a Swingline Loan (each a “funding obligation”), (b) such Lender has notified the Administrative Agent or the Borrower, or has stated publicly, that it will not comply with any such funding obligation hereunder, or has defaulted on, its obligation to fund generally under any other loan agreement, credit agreement or other financing agreement, (c) such Lender has, for
three (3) or more Business Days, failed to confirm in writing to the Administrative Agent, in response to a written request of the Administrative Agent, that it will comply with its funding obligations hereunder, (d) a Lender Insolvency Event has occurred and is continuing with respect to such Lender, or (e) such Lender has become the subject of a Bail-In Action. The Administrative Agent will promptly send to all parties hereto a copy of any notice to the Borrower provided for in this definition.

“Disqualified Capital Stock” shall mean Capital Stock that by its terms (or by the terms of any security into which they are convertible or for which they are exchangeable) (a) require the payment of any cash dividends (other than dividends payable solely in shares of Qualified Capital Stock
or, in the case of any pass through entity, in respect of taxes), (b) mature or are mandatorily redeemable or subject to mandatory repurchase or redemption or repurchase at the option of the holders thereof, in whole or in part and whether upon the occurrence of any event, pursuant to a sinking fund obligation, on a fixed date or otherwise, prior to the date that is ninety-one (91) days after the latest of the Revolving Commitment Termination Date and any maturity date for any Term Loan then outstanding at the
time of issuance of such Capital Stock (other than (i) upon payment in full of the Obligations and the expiration or termination of all Letters of Credit and termination of the Commitments or (ii) upon a “change in control,” initial public offering, asset sale, dissolution, liquidation or similar event) or (c) are convertible or exchangeable, automatically or at the option of any holder thereof, into any Indebtedness other than Indebtedness otherwise permitted under Section
7.1; provided that if such Capital Stock is issued pursuant to a plan or other agreement (including, without limitation, any Organization Document of such Person) for the benefit of current or former employees, officers, directors, or consultants of the Borrower or the Subsidiaries or by any such plan or other agreement to such Persons, such Capital Stock shall not constitute Disqualified Capital Stock solely because it may be required to be repurchased by
the Borrower or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such Person’s termination or cessation of services, death or disability.

 

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“Dollar(s)” and the sign “$” shall mean lawful money of the United States of America.

“Domestic Subsidiary” shall mean any Subsidiary that is organized under the laws of any political subdivision of the United States.

“EEA Financial Institution” shall mean (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 that is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

“EEA Member Country” shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

“EEA Resolution Authority” shall mean 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.

“Environmental Indemnity” shall mean each environmental indemnity made by each Loan Party with Real Property required to be pledged as Collateral in favor of the Administrative Agent for the benefit of the holders of the Obligations, in each case in form and substance satisfactory to the
Administrative Agent.

“Environmental Laws” shall mean all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by or with any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, Release or threatened Release of any Hazardous Material or to health and safety matters.

“Environmental Liability” shall mean any liability, contingent or otherwise (including any liability for damages, costs of environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Borrower or any Subsidiary
directly or indirectly resulting from or based upon (a) any actual or alleged violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any actual or alleged exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

“ERISA” shall mean the Employee Retirement Income Security Act of 1974.

“ERISA Affiliate” shall mean any trade or business (whether or not incorporated), which, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for the purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

 

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“ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043(c) of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the failure
of any Plan to meet the minimum funding standard applicable to the Plan for a plan year under Section 412(c) of the Code or Section 302(c) of ERISA, whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the
Borrower or any ERISA Affiliate from the PBGC or a plan administrator appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower
or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“EU Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

“Eurodollar” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBOR.

“Event of Default” shall have the meaning set forth in Article VIII.

“Excluded Accounts” means (a) deposit and/or securities accounts the balance of which consists exclusively of (i) withheld income taxes and federal, state or local employment taxes in such amounts as are required in the reasonable judgment of the Borrower to be paid to the IRS or state
or local government agencies within the following two months with respect to employees of any of the Loan Parties or (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on behalf of or for the benefit of employees of one or more Loan Parties, (b) all tax accounts (including, without limitation, sales tax accounts), accounts used solely for payroll, accounts maintained solely in trust for the benefit of third parties and fiduciary purposes, escrow accounts,
zero balance or swept accounts and employee benefit accounts (including 401(k) accounts and pension fund accounts), in each case, so long as such account is used solely for such purpose, and (c) any deposit and/or securities account maintained in a jurisdiction outside of the United States.

“Excluded Property” shall mean, with respect to any Loan Party, (a) any fee-owned real property (i) which is located outside of the United States or (ii) which has a fair market value of less than $1,000,000 on an individual basis or $2,500,000 when taken together with all other fee-owned
real property not subject to a mortgage in favor of the Administrative Agent, (b) any leased real property, (c) unless requested by the Administrative Agent or the Required Lenders, any IP Rights for which a perfected Lien thereon is not effected either by filing of a Uniform Commercial Code financing statement or by appropriate evidence of such Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office, (d) any personal property (including, without limitation,
motor vehicles and railroad rolling stock) (other than personal property described in clause (c) above) for which the attachment or perfection of a Lien thereon is not governed by the Uniform Commercial Code, (e) the Capital Stock of any Foreign Subsidiary to the extent not required to be pledged to secure the Obligations pursuant to Section 5.11(a), (f) letter of credit rights (as defined in the Uniform Commercial
Code) with respect to any individual or related letters of credit with a maximum stated amount of less than $10,000, or $20,000 when taken together with all other letters of credit for which the letter of credit rights are not subject to a security agreement in favor of the Administrative Agent (unless a security interest therein can be perfected by the filing of a UCC-1 financing statement), (g) commercial tort claims involving a monetary claim for less than $20,000, (h) any lease, license or other similar agreement
or any property subject to a purchase money security interest or similar arrangement to the extent that a grant of a security interest therein would violate or invalidate such lease, license or similar agreement or purchase money security interest or similar arrangement or create a right of termination in favor of any other party thereto (other than the Borrower or a Guarantor) after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code and other applicable Laws, other than
proceeds and receivables thereof, the assignment of which is expressly deemed effective under the Uniform Commercial Code and other applicable Laws notwithstanding such prohibition, (i) any application for registration of a trademark, service mark or other mark filed with the U.S. Patent and Trademark Office on an intent-to-use basis only to the extent that and solely during the period if any in which the grant of a security interest therein would void or invalidate such application, until such time (if any)
as a verified statement of use (or the equivalent) for such trademark, service mark or other mark is filed with and accepted by the U.S. Patent and Trademark Office, at which time such trademark, service mark or other mark shall automatically become part of the Collateral and subject to the security interest pledged, (j) any property to the extent the grant of a security interest in such property is prohibited by applicable Law, (k) any property owned by a Foreign Subsidiary, (l) to the extent requiring the consent
of one or more third parties (other than a Loan Party) or prohibited by the terms of any applicable Organization Documents, joint venture agreement or shareholders’ agreement, Capital Stock in any Person other than wholly-owned Subsidiaries, and (m) any governmental licenses or state or local franchises, charters and authorizations, to the extent security interests in such licenses, franchises, charters or authorizations are prohibited or restricted thereby; provided, however, that the security interests
granted under the Collateral Documents in favor of the Administrative Agent shall attach immediately to any asset that ceases to meet any of the criteria for Excluded Property described in any of the foregoing clauses (a) through (m) above, including, without limitation, if the terms of the agreement(s) relating thereto that prohibit or limit the pledge or granting of security interest therein or that would give rise
to a violation or invalidation of the agreement(s) with respect thereto, (A) are no longer in effect or (B) have been waived by the other party to any such lease, license or other agreement.

 

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“Excluded Swap Obligation” shall mean, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is
or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guaranty of such Guarantor, or the grant by such Guarantor of a security interest, becomes effective with respect
to such Swap Obligation; provided that, for the avoidance of doubt, in determining whether any Guarantor is an “eligible contract participant” under the Commodity Exchange Act, the keepwell agreement set forth in Section 10.8 shall be taken into account. If a Swap Obligation arises under a Master Agreement governing more than one Hedging Transaction, such exclusion shall apply only to the portion of such
Swap Obligation that is attributable to Hedging Transactions for which such Guaranty or security interest is or becomes excluded in accordance with the first sentence of this definition.

“Excluded Taxes” shall mean any of the following Taxes imposed on 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 in the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant
to a Law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.25) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.20, 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 2.20(g) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

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“Existing Credit Agreement” shall mean that certain Loan and Security Agreement, dated January 9, 2013, by and among the Borrower and certain of its subsidiaries, as borrowers, the lenders referenced therein, and Bank of America, N.A., as agent, as amended or modified from time to time.

“Existing Letters of Credit” shall mean the letters of credit issued by Bank of America, N.A. set forth on Schedule 2.22 as in effect on the Closing Date.

 

“FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements
entered into pursuant to Section 1471(b)(1) of the Code and any intergovernmental agreement entered into between the United States and a foreign government to implement any of the foregoing.

“Federal Funds Rate” shall mean, for any day, the rate per annum (expressed, as a decimal, rounded upwards, if necessary, to the next higher one one-hundredth of one percent (1/100 of 1%)) 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, (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be
the average rate charged to SunTrust Bank or any other Lender selected by the Administrative Agent on such day on such transactions as determined by the Administrative Agent.

“Fee Letter” shall mean that certain fee letter, dated as of May 4, 2016, executed by SunTrust Robinson Humphrey, Inc. and SunTrust Bank and accepted by Borrower.

“Fiscal Quarter” shall mean any fiscal quarter of the Borrower.

“Fiscal Year” shall mean any fiscal year of the Borrower.

“Foreign Lender” shall mean (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which
the Borrower is resident for tax purposes.

“Foreign Subsidiary” shall mean any Subsidiary that is not a Domestic Subsidiary.

“GAAP” shall mean generally accepted accounting principles in the United States applied on a consistent basis and subject to the terms of Section 1.3.

“Governmental Authority” shall mean the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies exercising such powers or functions, such as the European Union or the European Central Bank).

 

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“GSN Contracts” shall mean any and all agreements between GSN, a division of Assignment America, LLC (d/b/a Medical Staffing Network), and third parties regarding the provision of general staffing services, including, but not limited to, light industrial and other similar staffing services.

“Guarantee” of or by any Person (the “guarantor”) shall mean 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, direct or indirect, of the guarantor (i) 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, (ii) 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, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (iv) as an account party in respect of any letter of credit or letter of guaranty issued in support of such Indebtedness or obligation; provided, that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which Guarantee is made or, if not so stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. The term “Guarantee” used as a verb has
a corresponding meaning.

“Guarantor Joinder Agreement” shall mean a joinder agreement substantially in the form of Exhibit 5.10 executed and delivered by a Subsidiary in accordance with the provisions of Section 5.10 or
any other documents as the Administrative Agent shall deem appropriate for such purpose.

“Guarantors” shall mean, collectively, (a) each Domestic Subsidiary identified as a “Guarantor” on the signature pages hereto, (b) each Person that joins as a Guarantor pursuant to Section 5.10 or otherwise, (c) with respect to
(i) any Hedging Obligations between any Loan Party (other than the Borrower) and any Lender-Related Hedge Provider and any Bank Products Obligations owing by any Loan Party (other than the Borrower), the Borrower and (ii) the payment and performance by each Specified Loan Party of its obligations under its Guaranty with respect to all Swap Obligations, the Borrower, and (d) the successors and permitted assigns of the foregoing; provided, however,
that such term shall not include (A) any Domestic Subsidiary of a Foreign Subsidiary that is a “controlled foreign corporation” within the meaning of section 957 of the Code or (B) Intelistaf.

“Guaranty” shall mean the Guaranty made by the Guarantors in favor of the Administrative Agent, for the benefit of the holders of the Obligations, pursuant to Article X.

“Hazardous Materials” shall mean 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.

“Healthcare Laws” shall have the meaning set forth in Section 4.24.

 

 

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“Hedging Obligations” of any Person shall mean any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired under (a) any and all Hedging Transactions, (b) any and all cancellations, buy backs, reversals, terminations
or assignments of any Hedging Transactions and (c) any and all renewals, extensions and modifications of any Hedging Transactions and any and all substitutions for any Hedging Transactions.

“Hedging Transaction” of any Person shall mean (a) any transaction (including an agreement with respect to any such transaction) now existing or hereafter entered into by such Person that is a rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap or option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, spot transaction, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction,
or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, 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.

“HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as the same may be amended, modified or supplemented from time to time, and any successor statute thereto, and any and all rules or regulations promulgated from time to time thereunder.

“HIPAA Compliant” shall have the meaning set forth in Section 4.23.

 

“Hostile Acquisition” shall mean the Acquisition of the Capital Stock of a Person through a tender offer or similar solicitation of the owners of such Capital Stock which has not been approved (prior to such Acquisition) by resolutions
of the Board of Directors of such Person (or by similar action if such Person is not a corporation) or if such approval has been withdrawn.

 

“Incremental Funds Certain Provision” shall have the meaning set forth in Section 2.23.

 

“Incremental Term Loan” shall have the meaning set forth in Section 2.23.

 

“Incremental Term Loan Commitment” shall mean, with respect to Persons identified as an “Incremental Term Loan Lender” in the applicable supplement or joinder in form and substance satisfactory to the Administrative Agent, together with their respective successors and assigns, the commitment of such
Person to make the Incremental Term Loan hereunder pursuant to such supplement or joinder; provided that, at any time after the funding of the Incremental Term Loan, determination of “Required Lenders” shall include the outstanding principal amount of the Incremental Term Loan.

 

“Indebtedness” of any Person shall mean, without duplication (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of such Person in respect of the deferred purchase
price of property or services (other than trade payables incurred in the ordinary course of business; provided, that for purposes of Section 8.1(f), trade payables overdue by more than one hundred twenty (120) days shall be included in this definition except to the extent that any of such trade payables are being disputed in good faith and by appropriate measures), (d) all obligations of such Person under any conditional
sale or other title retention agreement(s) relating to property acquired by such Person, (e) all Capital Lease Obligations of such Person, (f) all obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances or similar extensions of credit, (g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise acquire for value any Capital Stock of such Person, (h) Off-Balance Sheet Liabilities, (i) the Hedge Termination Value of all
Hedging Obligations, (j) all Guarantees of such Person of the type of Indebtedness described in clauses (a) through (i) above and (k) all Indebtedness of a third party secured by any Lien on property owned by such Person, whether or not such Indebtedness has been assumed by such Person. The Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in which such Person is a general
partner or a joint venturer, except to the extent that the terms of such Indebtedness provide that such Person is not liable therefor.

 

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“Indemnified Taxes” shall mean (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

“Indemnitee” shall have the meaning set forth in Section 11.3(b).

“Information Memorandum” shall mean the Confidential Information Memorandum dated May 2016 relating to the Borrower and the transactions contemplated by this Agreement and the other Loan Documents.

“Intelistaf” means Intelistaf of Oklahoma, L.L.C., an Oklahoma limited liability company.

“Interest Period” shall mean with respect to any Eurodollar Borrowing, a period of one or two weeks or one, two, three or six months (in each case, subject to availability); provided, that:

(a) the initial Interest Period for such Borrowing shall commence on the date of such Borrowing (including the date of any conversion from a Borrowing of another Type), and each Interest Period occurring thereafter in respect of such Borrowing
shall commence on the day on which the first preceding Interest Period expires;

(b) if any Interest Period would otherwise end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless such Business Day falls in another calendar month, in which case such Interest
Period would end on the first preceding Business Day;

(c) any Interest Period which 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 such
calendar month;

(d) each principal installment of the Term Loans shall have an Interest Period ending on each installment payment date and the remaining principal balance (if any) of the Term Loans shall have an Interest Period determined as set forth above;
and

(e) no Interest Period may extend beyond the Revolving Commitment Termination Date, unless on the Revolving Commitment Termination Date the aggregate outstanding principal amount of Term Loans is equal to or greater than the aggregate principal
amount of Eurodollar Loans with Interest Periods expiring after such date, and no Interest Period may extend beyond the Maturity Date.

 

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“Interest Rate Determination Date” shall mean the date of any Borrowing of LIBOR Index Rate Loans and the first Business Day of each calendar month thereafter.

 

“Interim Financial Statements” shall mean the unaudited consolidated financial statements of the Borrower and its Subsidiaries for the Fiscal Quarter ending March 31, 2016, including balance sheets and statements of income or operations, shareholders’ equity and cash flows.

 

“Investments” shall mean, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) purchase or other acquisition of any Capital Stock of another Person, (b) a loan, advance, other evidence of indebtedness or capital contribution to, Guarantee
or assumption of debt of, or purchase or other acquisition of any other indebtedness or equity participation or interest in, another Person, or (c) an Acquisition. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment.

“IP Rights” shall mean all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other intellectual property rights that are reasonably necessary for the operation of their respective businesses that the Borrower or any of its Subsidiaries
owns, or possesses the legal right to use.

“IRS” shall mean the United States Internal Revenue Service.

“Issuer Documents” shall mean with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by an Issuing Bank and any Borrower (or any Subsidiary) or in favor of an Issuing Bank and relating to such Letter of Credit.

“Issuing Bank” shall mean (a) with respect to all Letters of Credit (other than Existing Letters of Credit), SunTrust Bank, in its capacity as an issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit and (b) with respect to all Existing Letters of Credit, Bank
of America, N.A., in its capacity as the issuer of the Existing Letters of Credit, or any successor.

“Laws” or “Law” shall mean, collectively, all 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.

“LC Commitment” shall mean that portion of the Aggregate Revolving Commitments that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount not to exceed Thirty-Five Million Dollars ($35,000,000).

“LC Disbursement” shall mean a payment made by an Issuing Bank pursuant to a Letter of Credit.

“LC Documents” shall mean all applications, agreements and instruments relating to the Letters of Credit but excluding the Letters of Credit.

“LC Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time, plus (b) the aggregate amount of all LC Disbursements that have not been reimbursed by or on behalf of the Borrower at such time.
The LC Exposure of any Lender shall be its Pro Rata Share of the total LC Exposure at such time. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the International Standby Practices 1998, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

 

 

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“Lender Insolvency Event” shall mean that (a) a Lender or its Parent Company is insolvent, or is generally unable to pay its debts as they become due, or admits in writing its inability to pay its debts as they become due, or makes a general assignment for the benefit of its creditors, (b)
a Lender or its Parent Company is the subject of a bankruptcy, insolvency, reorganization, liquidation or similar proceeding, or a receiver, trustee, conservator, custodian or the like has been appointed for such Lender or its Parent Company, or such Lender or its Parent Company has taken any action in furtherance of or indicating its consent to or acquiescence in any such proceeding or appointment, or (c) a Lender or its Parent Company has been adjudicated as, or determined by any Governmental Authority having
regulatory authority over such Person or its assets to be, insolvent; provided that, for the avoidance of doubt, a Lender Insolvency Event  shall not be deemed to have occurred solely by virtue of the ownership or acquisition of any equity interest in or control of a Lender or a Parent Company thereof by a Governmental Authority or an instrumentality thereof.

“Lender-Related Hedge Provider” shall mean any Person that, (a) (i) at the time it enters into a Hedging Transaction with any Loan Party, is a Lender or an Affiliate of a Lender or (ii) has entered into a Hedging Transaction with any Loan Party that exists on the Closing Date, and such Person is a Lender or an
Affiliate of a Lender on the Closing Date and (b) except when the Lender-Related Hedge Provider is SunTrust Bank and its Affiliates, has provided prior written notice to the Administrative Agent which has been acknowledged by the Borrower of the existence of such Hedging Transaction. In no event shall any Lender-Related Hedge Provider acting in such capacity be deemed a Lender for purposes hereof to the extent of and as to Hedging Obligations except that each reference to the term “Lender”
in Article IX and Section 11.4 shall be deemed to include such Lender-Related Hedge Provider. In no event shall the approval of any such Person in its capacity as Lender-Related Hedge Provider be required in connection with the release or termination of any security interest or Lien of the Administrative Agent.

 

“Lenders” shall mean each of the Persons identified as a “Lender” on the signature pages hereto and each Additional Lender that joins this Agreement pursuant to Section 2.23 and their successors and assigns and shall include, where
appropriate, the Swingline Lender.

“Letter of Credit” shall mean (a) any stand-by letter of credit issued pursuant to Section 2.22 by SunTrust Bank, in its capacity as an Issuing Bank, for the account of the Borrower or any Subsidiary pursuant to the LC Commitment and (b) any
of the Existing Letters of Credit, which are deemed to be stand-by letters of credit issued pursuant to Section 2.22 by Bank of America, N.A., in its capacity as an Issuing Bank, for the account of the Borrower or any Subsidiary pursuant to the LC Commitment

“Letter of Credit Application” shall mean an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the applicable Issuing Bank.

“Letter of Credit Fee” shall have the meaning set forth in Section 2.14(c).

“LIBOR Index Rate Loan” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the One Month LIBOR Index Rate.

“Lien” shall mean any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance, hypothecation, assignment, deposit arrangement, or other arrangement having the practical effect of any of the foregoing or any preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any capital lease having the same economic effect as any of the foregoing).

 

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“Loan Documents” shall mean, collectively, this Agreement, the Collateral Documents, the Convertible Note Subordination Agreement, the LC Documents, the Fee Letter, all Notices of Borrowing, all Notices of Conversion/Continuation, all Compliance Certificates, all Issuer Documents, all UCC
Financing Statements, all stock powers and similar instruments of transfer, any promissory notes issued hereunder and any and all other instruments, agreements, documents and writings executed in connection with any of the foregoing.

“Loan Parties” shall mean, collectively, the Borrower and each Guarantor.

“Loans” shall mean all Revolving Loans, Swingline Loans and Term Loans in the aggregate or any of them, as the context shall require.

“Master Agreement” shall have the meaning set forth in the definition of “Hedging Transaction.”

“Material Adverse Effect” shall mean, with respect to any event, act, condition or occurrence of whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), whether singularly or in conjunction with any other event or
events, act or acts, condition or conditions, occurrence or occurrences whether or not related, resulting in a material adverse change in, or a material adverse effect on, (a) the business, results of operations, financial condition, assets, liabilities or prospects of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the Loan Parties to perform any of their respective obligations under the Loan Documents, (c) the rights and remedies of the Administrative Agent, the Issuing Banks,
Swingline Lender, and the Lenders under any of the Loan Documents or (d) the legality, validity or enforceability of any of the Loan Documents.

“Material Agreements” shall mean such material definitive contracts filed with the SEC or that are required to be filed with the SEC pursuant to SEC rules and regulations.

“Material Foreign Subsidiary” shall mean, at any time, any Foreign Subsidiary that is directly owned by any Loan Party having (a) assets in an amount equal to at least two and one-half percent (2.5%) of the total assets of the Borrower and its Subsidiaries determined on a consolidated basis
as of the last day of the most recent Fiscal Quarter at such time; or (b) revenues in an amount equal to at least two and one-half percent (2.5%) of the total revenues of the Borrower and its Subsidiaries on a consolidated basis for the 12-month period ending on the last day of the most recent Fiscal Quarter at such time.

“Material Indebtedness” shall mean any Indebtedness (other than the Loans, Letters of Credit, Indebtedness under any of the Subordinated Debt Documents and Indebtedness under any of the Convertible Note Documents) and Hedging Obligations of the Borrower or any of its Subsidiaries, individually
or in an aggregate committed or outstanding principal amount exceeding $1,000,000. For purposes of determining the amount of attributed Indebtedness from Hedging Obligations, the “principal amount” of any Hedging Obligations at any time shall be the Net Mark-to-Market Exposure of such Hedging Obligations.

“Maturity Date” shall mean (a) with respect to the Term Loan A, the earlier of (i) June 22, 2021 or (ii) the date on which the principal amount of all outstanding Term Loans has been declared or automatically has become due and payable pursuant to Section
8.1 (whether by acceleration or otherwise) and (b) with respect to any Incremental Term Loan, the earlier of (i) the maturity date identified in the definitive documentation therefor or (ii) the date on which the principal amount of all outstanding Term Loans has been declared or automatically has become due and payable pursuant to Section 8.1 (whether by acceleration or otherwise).

 

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“Maximum Rate” shall have the meaning set forth in Section 11.12.

“Moody’s” shall mean Moody’s Investors Service, Inc.

“Mortgaged Property” shall mean any real property that is owned by a Loan Party and is subject to a Mortgage.

“Mortgages” shall mean the mortgages, deeds of trust or deeds to secure debt that purport to grant to the Administrative Agent, for the benefit of the holders of the Obligations, a security interest in the fee interests and/or leasehold interests of any Loan Party in any real property.

“Multiemployer Plan” shall mean any employee benefit plan of the type described in Section 4001(a)(3) of ERISA to which the Borrower makes or is obligated to make contributions or with respect to which Borrower has any liability (including on account of an ERISA Affiliate).

“Net Cash Proceeds” shall mean the aggregate cash or Permitted Investments proceeds received by the Borrower or any Subsidiary in respect of any Asset Sale, Recovery Event or any issuance of Indebtedness or equity securities net of (a) direct costs incurred in connection therewith (including
legal, accounting and investment banking fees, and sales commissions), (b) taxes paid or payable as a result thereof and (c) in the case of any Asset Sale or any Recovery Event, the amount necessary to retire any Indebtedness secured by a Lien permitted by Section 7.2 (ranking senior to any Lien of the Administrative Agent) on the related property.

“Net Mark-to-Market Exposure” of any Person shall mean, as of any date of determination with respect to any Hedging Obligation, the excess (if any) of all unrealized losses over all unrealized profits of such Person arising from such Hedging Obligation. “Unrealized losses” shall
mean the fair market value of the cost to such Person of replacing the Hedging Transaction giving rise to such Hedging Obligation as of the date of determination (assuming the Hedging Transaction were to be terminated as of that date), and “unrealized profits” means the fair market value of the gain to such Person of replacing such Hedging Transaction as of the date of determination (assuming such Hedging Transaction were to be terminated as of that date).

“Non-Consenting Lender” shall have the meaning set forth in Section 2.25.

“Non-Defaulting Lender” shall mean, at any time, a Lender that is not a Defaulting Lender.

“Note” shall have the meaning set forth in Section 2.10(b).

“Notice of Conversion/Continuation” shall have the meaning set forth in Section 2.7(b).

“Notice of Revolving Borrowing” shall have the meaning set forth in Section 2.3.

“Notice of Swingline Borrowing” shall have the meaning set forth in Section 2.4.

“Notices of Borrowing” shall mean, collectively, the Notices of Revolving Borrowing and the Notices of Swingline Borrowing.

 

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“Obligations” shall mean, collectively, (a) all amounts owing by the Loan Parties to the Administrative Agent, any Issuing Bank, any Lender (including the Swingline Lender) or the Arranger pursuant to or in connection with this Agreement or any other Loan Document or otherwise with respect
to any Loan or Letter of Credit including without limitation, all principal, interest (including any interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), all reimbursement obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and expenses of counsel
to the Administrative Agent, any Issuing Bank and any Lender (including the Swingline Lender) incurred pursuant to this Agreement or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder, (b) all Hedging Obligations owed by any Loan Party to any Lender-Related Hedge Provider permitted by Section 7.11, and (c) all Bank Product Obligations, together with all
renewals, extensions, modifications or refinancings of any of the foregoing; provided, that “Obligations” of a Guarantor shall exclude any Excluded Swap Obligations of such Guarantor.

“OFAC” shall mean the U.S. Department of the Treasury’s Office of Foreign Assets Control.

“Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (ii) any liability of such Person under any sale and leaseback transactions that do not create a liability
on the balance sheet of such Person, (iii) any Synthetic Lease Obligation or (iv) any obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person.

“OIG” shall have the meaning set forth in Section 4.24.

“One Month LIBOR Index Rate” shall mean a rate per annum equal to the one-month LIBOR which appears on Reuters Screen LIBOR01 as of 11:00 a.m., London time, two (2) Business Days prior to each Interest Rate Determination Date. Notwithstanding anything to the contrary in the foregoing, if the One Month LIBOR Index
Rate is less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Organization Documents” shall mean, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) 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 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.

 

“OSHA” shall mean the Occupational Safety and Health Act of 1970, as amended from time to time, and any successor statute.

“Other Connection Taxes” shall mean, 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).

 

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“Other Taxes” shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest
under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.25).

“Parent Company” shall mean, with respect to a Lender, the bank holding company (as defined in Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

“Participant” shall have the meaning set forth in Section 11.4(d).

“Participant Register” shall have the meaning set forth in Section 11.4(e).

“Patriot Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001) (as amended from time to time).

“Payment Office” shall mean the office of the Administrative Agent located at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as to which the Administrative Agent shall have given written notice to the Borrower and the other Lenders.

“PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any successor entity performing similar functions.

“Permitted Acquisition” shall mean any Acquisition that either has been approved in writing by the Required Lenders or with respect to which all of the following conditions shall have been satisfied:

(a)           the Acquired Business is in the same or similar line of business as the Borrower and its Subsidiaries and has its primary operations within the United States of America;

(b)           the Acquisition shall not be a Hostile Acquisition;

(c)           (i) no Default or Event of Default shall exist and be continuing immediately before or immediately after giving effect thereto (except, in the case of an Acquisition subject to the Incremental Funds Certain Provision, in which case there is no Default or Event of Default immediately
before or immediately after execution and delivery of the applicable Acquisition Agreement and there is no Specified Event of Default at the date the applicable Permitted Acquisition is consummated), (ii) the representations and warranties made each of the Loan Parties in each Loan Document shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and
warranties shall be true and correct in all respects) as if made on the date of such Acquisition (after giving effect thereto) except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true
and correct in all respects) as of such earlier date; provided, that, in the case of an Acquisition subject to the Incremental Funds Certain Provision, the representations and warranties made by each of the Loan Parties in each Loan Document shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties
shall be true and correct in all respects) as if made on the date of the execution and delivery of the Acquisition Agreement and the Specified Representations shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects) as if made on the date of such Acquisition, and (iii) after giving effect thereto
on a Pro Forma Basis, the Borrower shall be in compliance with the financial covenants set forth in Article VI for the period of four (4) Fiscal Quarters most recently ended prior to the date of determination for which financial statements were delivered under Section 5.1(a) or (b) (except, in the case of an Acquisition subject to the Incremental Funds Certain Provision,
in which case, the date of determination of the financial covenants set forth in Article VI on a Pro Forma Basis shall, at the option of the Borrower, be the date of execution of such Acquisition Agreement, and such determination shall be made after giving effect to such Acquisition (and the other transactions to be entered into in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof)); provided that
such Acquisition must close within ninety (90) days of the signing of the applicable Acquisition Agreement) on a Pro Forma Basis and (iv) at least five (5) Business Days prior to the consummation of such Acquisition (or, in the case of an Acquisition subject to the Incremental Funds Certain Provision, at least five (5) Business Days prior to the execution and delivery of the applicable Acquisition Agreement), the Borrower shall have delivered to the Administrative Agent a duly completed Pro Forma Compliance
Certificate;

 

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(d)           upon request, Borrower shall have promptly furnished to Administrative Agent such financial and other information as to such Acquisition or Acquired Business as Administrative Agent may reasonably request including, without limitation, (i) a description of the material terms
of such Acquisition and (ii) either, at Borrower’s option, (A) audited financial statements of the Acquired Business for its most recent Fiscal Year ended, which audited financial statements shall have been audited by an independent public account reasonably satisfactory to the Administrative Agent, and financial statements for any Fiscal Quarters ended within the Fiscal Year to date prepared by management of the Acquired Business (which shall be certified by the chief financial officer or treasurer
(or manager or member holding performing similar roles) of the Acquired Business as fairly presenting in all material respects the consolidated financial condition of the Acquired Business and its subsidiaries as of such dates and the consolidated results of operations for such periods in conformity with GAAP consistently applied, subject to year-end audit adjustments and the absence of footnotes in the case of the statements), or (B) a quality of earnings report or other due diligence report on the Acquired
Business from a third party reasonably acceptable to the Administrative Agent, which report shall be in form and detail reasonably satisfactory to the Administrative Agent;

(e)           if a new Subsidiary is formed or acquired as a result of or in connection with the Acquisition, the Borrower shall have caused such Subsidiary to join as a Guarantor within ten (10) Business Days of the Acquisition as provided for in Sections
5.10 and 5.11 in connection therewith; and

(f)           the aggregate cash and non-cash consideration (including any assumption of Indebtedness, deferred purchase price and any earn-out obligations and any equity consideration) paid by the Borrower and its Subsidiaries shall not exceed (i) with respect to any individual Acquisition
(or series of related Acquisitions), $40,000,000 and (ii) with respect to all Acquisitions occurring during the term of this Agreement, $80,000,000.

 

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“Permitted Encumbrances” shall mean:

(a) Liens imposed by Law for taxes not yet due or which are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate reserves are being maintained in accordance with GAAP;

(b) statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen, repairmen and other Liens imposed by Law in the ordinary course of business for amounts not yet due or which are being contested in good faith by appropriate proceedings
and with respect to which adequate reserves are being maintained in accordance with GAAP;

(c) pledges and deposits made (i) in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security Laws or regulations and (ii) in respect of letters of credit, bank guarantees
or similar instruments issued for the account of the Borrower or any Subsidiary in the ordinary course of business supporting obligations of the type set forth in clause (i) immediately above;

(d) pledges and deposits made (i) to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business,
and (ii) in respect of letters of credit, bank guarantees or similar instruments issued for the account of the Borrower or any Subsidiary in the ordinary course of business supporting obligations of the type set forth in clause (i) immediately above;

(e) judgment and attachment liens not giving rise to a Default or an Event of Default or Liens created by or existing from any litigation or legal proceeding that are currently being contested in good faith by appropriate proceedings and with
respect to which adequate reserves are being maintained in accordance with GAAP;

(f) customary rights of set-off, revocation, refund or chargeback under deposit agreements or under the Uniform Commercial Code or common law of banks or other financial institutions where Borrower or any of its Subsidiaries maintains deposits
(other than deposits intended as cash collateral) in the ordinary course of business; and

(g) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by Law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value
of the affected property or materially interfere with the ordinary conduct of business of the Borrower and its Subsidiaries taken as a whole;

provided, that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness, other than Liens referred to in clauses (c) and (d) above securing letters of credit, bank guarantees
or similar instruments issued for the account of the Borrower or any Subsidiary in the ordinary course of business supporting obligations of the type set forth in clauses (c)(i) and (d)(i) above;

“Permitted Investments” shall mean:

(h) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United
States), in each case maturing within two (2) years from the date of acquisition thereof;

 

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(i) commercial paper having the highest rating, at the time of acquisition thereof, of S&P or Moody’s and in either case maturing within six months from the date of acquisition thereof;

(j) certificates of deposit, bankers’ acceptances and time deposits maturing within two hundred seventy (270) days of the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered
by, any domestic office of any commercial bank organized under the Laws of the United States or any state thereof which has a combined capital and surplus and undivided profits of not less than $500,000,000;

(k) fully collateralized repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a) above and entered into with a financial institution satisfying
the criteria described in clause (c) above; and

(l) mutual funds investing solely in any one or more of the Permitted Investments described in clauses (a) through (d) above.

“Permitted Refinancing” means any extension, renewal or replacement of any existing Indebtedness so long as any such renewal, refinancing and extension of such Indebtedness (a) has market terms and conditions, (b) has an average life to maturity that is greater than that of the Indebtedness
being extended, renewed or refinanced, (c) does not include an obligor that was not an obligor with respect to the Indebtedness being extended, renewed or refinanced, unless such additional obligor is also a Guarantor, (d) remains subordinated, if the Indebtedness being renewed, extended or refinanced was subordinated to the prior payment of the Obligations, (e) does not exceed in a principal amount the Indebtedness being renewed, extended or refinanced plus reasonable fees and expenses incurred in connection
therewith, and (f) is not incurred, created or assumed if any Default or Event of Default has occurred and continues to exist or would result therefrom.

“Permitted Subordinated Debt” shall mean any Indebtedness of the Borrower or any Guarantor incurred in connection with deferred purchase price obligations arising in an Acquisition consummated prior to the Closing Date or any Permitted Acquisition after the Closing Date that is evidenced
by, and subject to the terms of, Subordinated Debt Documents or otherwise on terms and (including without limitation subordination provisions) acceptable to the Administrative Agent and the Required Lenders.

“Person” shall mean any individual, partnership, firm, corporation, association, joint venture, limited liability company, trust or other entity, or any Governmental Authority.

“Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Platform” shall have the meaning set forth in Section 5.1.

 

“Pricing Grid” shall have the meaning set forth in Section 2.14(b).

 

 

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“Pro Forma Basis” shall mean, for purposes of calculating compliance with respect to any Asset Sale, Recovery Event, Permitted Acquisition, Restricted Payment, increase in the Aggregate Revolving Commitments or incurrence of an Incremental Term Loan pursuant
to Section 2.23 or incurrence of Indebtedness, or any other transaction subject to calculation on a “Pro Forma Basis” as indicated herein, that such transaction shall be deemed to have occurred as of the first day of the period of four Fiscal Quarters most recently ended for which the Borrower has delivered financial statements pursuant to Section
5.1(a) or (b). For purposes of any such calculation in respect of any Permitted Acquisition, (a)  income statement items (whether positive or negative) attributable to the Person or property acquired shall be included beginning as of the first day of the applicable period;
(b) any Indebtedness incurred or assumed by any Borrower or any Subsidiary (including the Person or property acquired) in connection with such transaction and any Indebtedness of the Person or property acquired which is not retired in connection with such transaction (i) shall be deemed to have been incurred as of the first day of the applicable period and (ii) if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for the applicable period for purposes of this definition
determined by utilizing the rate which is or would be in effect with respect to such Indebtedness as at the relevant date of determination; and (c) Capital Expenditures attributable to the Person or property acquired shall be included beginning as of the first day of the applicable period.

“Pro Forma Compliance Certificate” shall mean a certificate of a Responsible Officer of the Borrower containing (a) reasonably detailed calculations of the financial covenants set forth in Article VI recomputed as of the end of the period of
the four Fiscal Quarters most recently ended for which the Borrower has delivered financial statements pursuant to Section 5.1(a) or (b) after giving effect to the applicable transaction on a Pro Forma Basis and (b) if delivered in connection with any Permitted Acquisition, certifications that clauses (a) through (g) of
the definition of “Permitted Acquisition” have been satisfied (or will be satisfied in the time permitted under this Agreement).

“Pro Rata Share” shall mean (a) with respect to any Commitment of any Lender at any time, a percentage, the numerator of which shall be such Lender’s Commitment (or if such Commitments have been terminated or expired or the Loans have been declared to be due and payable, such Lender’s
Revolving Credit Exposure or Term Loan, as applicable), and the denominator of which shall be the sum of such Commitments of all Lenders (or if such Commitments have been terminated or expired or the Loans have been declared to be due and payable, all Revolving Credit Exposure or Term Loans, as applicable, of all Lenders) and (b) with respect to all Commitments of any Lender at any time, the numerator of which shall be the sum of such Lender’s Revolving Commitment (or if such Revolving Commitments have
been terminated or expired or the Loans have been declared to be due and payable, such Lender’s Revolving Credit Exposure) and Term Loan and the denominator of which shall be the sum of all Lenders’ Revolving Commitments (or if such Revolving Commitments have been terminated or expired or the Loans have been declared to be due and payable, all Revolving Credit Exposure of all Lenders funded under such Commitments) and Term Loans.

“Public Lender” shall have the meaning set forth in Section 5.1.

“Qualified Capital Stock” shall mean any Capital Stock other than Disqualified Capital Stock.

“Qualified ECP Guarantor” shall mean, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Guaranty or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other Loan Party
as constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Qualified Permitted Acquisition” shall have the meaning set forth in Section 6.1.

 

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“Real Property Security Documents” shall mean, with respect to any fee-owned interest of a Loan Party in any real property:

 

(a)           a fully executed and notarized Mortgage encumbering the fee or leasehold interest of such Loan Party in such real property;

 

(b)           if requested by the Administrative Agent in its reasonable discretion, maps or plats of an as built survey of the sites of such real property certified to the Administrative Agent and the title insurance company issuing the policies referred to in clause (c) of
this definition in a manner satisfactory to each of the Administrative Agent and such title insurance company, dated a date reasonably satisfactory to each of the Administrative 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 with items 2, 3, 4, 6(b), 7(a), 7(b)(1), 7(c), 8, 9, 10, 11, 13, 14, 16,17, 18 and 19 on Table A thereof completed;

 

(c)           ALTA mortgagee title insurance policies issued by a title insurance company reasonably acceptable to the Administrative Agent with respect to such real property, assuring the Administrative 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 Encumbrances, which title insurance policies shall otherwise be in form and substance satisfactory to the Administrative Agent and shall include such endorsements as are requested by the Administrative 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 Loan Party’s written acknowledgment of receipt of written notification from the Administrative 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 flood insurance policies under the
National Flood Insurance Program (or private insurance endorsed to cause such private insurance to be fully compliant with the federal law as regards private placement insurance applicable to the National Flood Insurance Program, with financially sound and reputable insurance companies not Affiliates of the Borrower) or certificates of insurance of the Borrower and its Subsidiaries evidencing such flood insurance coverage in such amounts and with such deductibles as the Administrative Agent (on behalf of itself
or any Lender) may request and naming the Administrative Agent and its successors and/or assigns as sole loss payee on behalf of the Lenders;

 

(e)           if requested by the Administrative Agent, a duly executed Environmental Indemnity with respect thereto;

 

(f)           if requested by the Administrative Agent, (i) environmental questionnaires or (ii) Phase I Environmental Site Assessment Reports, consistent with American Society of Testing and Materials (ASTM) Standard E 1527-05, and applicable state requirements, on all of the owned real property, dated no more than
six (6) months prior to the Closing Date (or date of the applicable Mortgage if provided post-closing), prepared by environmental engineers satisfactory to the Administrative Agent, all in form and substance satisfactory to the Administrative Agent, and such environmental review and audit reports, including Phase II reports, with respect to the real property of any Loan Party as the Administrative Agent shall have requested, in each case together with letters executed by the environmental firms preparing such
environmental reports, in form and substance satisfactory to the Administrative Agent, authorizing the Administrative Agent and the Lenders to rely on such reports, and the Administrative Agent shall be satisfied with the contents of all such environmental questionnaires or reports

 

 

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(g)           if requested by the Administrative Agent, evidence satisfactory to the Administrative Agent that such real property, and the uses of such real property, are in compliance in all material respects with all applicable zoning Laws (the evidence submitted as to which should include the zoning designation
made for such real property, the permitted uses of such real property under such zoning designation and, if available, zoning requirements as to parking, lot size, ingress, egress and building setbacks); and

 

(h)           an opinion of legal counsel to the Loan Party granting the Mortgage on such real property, addressed to the Administrative Agent and each Lender, in form and substance reasonably acceptable to the Administrative Agent.

 

“Recipient” shall mean (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, as applicable.

“Recovery Event” shall mean any loss of, damage to or destruction of, or any condemnation or other taking for public use of, any property of the Borrower or any Subsidiary.

“Register” shall have the meaning set forth in Section 11.4(c).

“Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System, as the same may be in effect from time to time, and any successor regulations.

“Regulation T” shall mean Regulation T of the Board of Governors of the Federal Reserve System, as the same may be in effect from time to time, and any successor regulations.

“Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System, as the same may be in effect from time to time, and any successor regulations.

“Regulation X” shall mean Regulation X of the Board of Governors of the Federal Reserve System, as the same may be in effect from time to time, and any successor regulations.

“Regulation Y” shall mean Regulation Y of the Board of Governors of the Federal Reserve System, as the same may be in effect from time to time, and any successor regulations.

“Related Parties” shall mean, with respect to any specified Person, such Person’s Affiliates and the respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors, legal counsel, consultants or other representatives of such Person and such
Person’s Affiliates.

“Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into the environment (including ambient air, surface water, groundwater, land surface or subsurface strata) or within any building, structure,
facility or fixture.

 

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“Required Lenders” shall mean, at any time, (a) if there are more than three (3) Lenders, the Lenders holding more than 50% of the aggregate outstanding Revolving Commitments and the Term Loans at such time or if the Lenders have no Commitments outstanding, then Lenders holding more than
50% of the Revolving Credit Exposure and the Term Loans, (b) if there are three (3) or fewer Lenders, at least two (2) Lenders holding more than 50% of the aggregate outstanding Revolving Commitments and the Term Loans at such time or if the Lenders have no Commitments outstanding, then at least two (2) Lenders holding more than 50% of the Revolving Credit Exposure and the Term Loans or (c) if there is only one (1) Lender, such Lender; provided that to the extent
that any Lender is a Defaulting Lender, such Defaulting Lender and all of its Revolving Commitments, Revolving Credit Exposure and Term Loans shall be excluded for purposes of determining Required Lenders.

“Responsible Officer” shall mean, with respect to any Person, any of the president, the chief executive officer, the chief operating officer, the chief financial officer, the treasurer, the controller or a vice president of such Person or such other representative of such Person as may be
designated in writing by any one of the foregoing with the consent of the Administrative Agent; and, with respect to the financial covenants only, the chief financial officer or the treasurer of such Person.

“Restricted Payment” shall mean any dividend or other distribution (whether in cash, securities or other property) with respect to any Capital Stock of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of
the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such Capital Stock or on account of any return of capital to such Person’s stockholders, partners or members (or the equivalent Person thereof), or any option, warrant or other right to acquire any such dividend or other distribution or payment.

“Revolving Commitment” shall mean, with respect to each Lender, the commitment of such Lender to make Revolving Loans to the Borrower and to acquire participations in Letters of Credit and Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to
such Lender on Schedule I, as such schedule may be amended pursuant to Section 2.23, or in the case of a Person becoming a Lender after the Closing Date, the amount of the assigned “Revolving Commitment” as provided in the Assignment and Acceptance executed by such Person as an assignee, or the joinder executed by such Person, in each case as such commitment may subsequently be increased or decreased pursuant
to terms hereof.

“Revolving Commitment Termination Date” shall mean the earliest of (i) June 22, 2021, (ii) the date on which the Revolving Commitments are terminated pursuant to Section 2.8 and (iii) the date on which all amounts outstanding under this Agreement
have been declared or have automatically become due and payable (whether by acceleration or otherwise).

“Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans, LC Exposure and Swingline Exposure.

“Revolving Lenders” means a collective reference to the Lenders holding Revolving Loans or Revolving Commitments.

“Revolving Loan” shall mean a loan made by a Lender (other than the Swingline Lender) to the Borrower under its Revolving Commitment, which may either be a Base Rate Loan, a Eurodollar Loan or a LIBOR Index Rate Loan.

“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., and any successor thereto.

 

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“Sanctioned Country” shall mean, at any time, a country or territory that is, or whose government is, the subject or target of any Sanctions.

“Sanctioned Person” shall mean, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or any European Union member state, (b) any Person located, organized
or resident in a Sanctioned Country or (c) any Person controlled by any such Person.

“Sanctions” shall mean economic or financial sanctions or trade embargoes administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, (b) the United Nations Security Council, the European Union or Her Majesty’s
Treasury of the United Kingdom or (c) any other relevant sanctions authority.

“SEC” shall mean the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Second Lien Credit Agreement” shall mean that certain Second Lien Loan and Security Agreement, dated June 30, 2014, by and among the Borrower, as borrower, certain of its domestic subsidiaries, as guarantors, and BSP Agency, LLC, as agent.

“Security Agreement” shall mean the security and pledge agreement dated as of the Closing Date executed in favor of the Administrative Agent, for the benefit of the holders of the Obligations, by each of the Loan Parties.

 

“Solvent” shall mean, with respect to any Person on a particular date, that on such date (a) the present fair saleable value of the property of such Person is greater than the total amount of liabilities, including subordinated and contingent liabilities, of such Person; (b) the present
fair saleable 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 and liabilities, including subordinated and contingent liabilities 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 as such debts and liabilities mature; (d) such Person is not engaged in a business or transaction, and is not about
to engage in a business or transaction, for which such Person’s property would constitute unreasonably small capital; (e) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the ordinary course of business and (f) such Person does not intend, in any transaction, to hinder, delay or defraud either present or future creditors or any other Person to which such Person is or will become, through such transaction, indebted. The amount of contingent
liabilities (such as litigation, guaranties and pension plan liabilities) at any time shall be computed as the amount that, in light of all the facts and circumstances existing at the time, represents the amount that would reasonably be expected to become an actual or matured liability.

“Specified Equity Contribution” shall mean as defined in Section 8.3(a).

“Specified Event of Default” shall mean an Event of Default arising under Section 8.1(a), (g) or (h).

“Specified Loan Party” shall mean each Loan Party that is, at the time on which the relevant Guarantee or grant of the relevant security interest under the Loan Documents by such Loan Party becomes effective with respect to a Swap Obligation, a corporation, partnership, proprietorship, organization,
trust or other entity that would not be an “eligible contract participant” under the Commodity Exchange Act at such time but for the effect of Section 10.8.

 

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“Specified Representations” shall mean the representations of the Loan Parties contained in Section 4.1, 4.2, 4.3(b), 4.6 (insofar
as it relates to the execution, delivery and performance of the Loan Documents), 4.8, 4.10, 4.16 and 4.19.

“Standstill Period” shall have the meaning set forth in Section 8.3(b).

“Subordinated Debt Documents” shall mean all indentures, agreements, notes, guaranties, subordination agreements and other material agreements governing or evidencing any Permitted Subordinated Debt and all other material documents relating thereto.

“Subsidiary” shall mean, with respect to any Person (the “parent”), any corporation, partnership, joint venture, limited liability company, association or other entity the accounts of which would be consolidated with those of the
parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power, or in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise controlled, by the parent or one or more subsidiaries
of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise indicated, all references to “Subsidiary” hereunder shall mean a Subsidiary of the Borrower.

“SunTrust” shall mean SunTrust Bank and its successors.

“Swap Obligations” shall mean with respect to any Guarantor 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” shall mean the commitment of the Swingline Lender to make Swingline Loans in an aggregate principal amount at any time outstanding not to exceed Fifteen Million Dollars ($15,000,000).

“Swingline Exposure” shall mean, with respect to each Lender, the principal amount of the Swingline Loans in which such Lender is legally obligated either to make a Base Rate Loan or to purchase a participation in accordance with Section 2.4,
which shall equal such Lender’s Pro Rata Share of all outstanding Swingline Loans.

“Swingline Lender” shall mean SunTrust Bank in its capacity as provider of Swingline Loans, or any successor swingline lender hereunder.

“Swingline Loan” shall mean a loan made to the Borrower by the Swingline Lender under the Swingline Commitment.

“Synthetic Lease” shall mean a lease transaction under which the parties intend that (i) the lease will be treated as an “operating lease” by the lessee pursuant to Accounting Standards Codification Sections 840-10 and 840-20, as amended and (ii) the lessee will be entitled to
various tax and other benefits ordinarily available to owners (as opposed to lessees) of like property.

“Synthetic Lease Obligations” shall mean, with respect to any Person, the sum of (i) all remaining rental obligations of such Person as
lessee under Synthetic Leases which are attributable to principal and, without duplication, (ii) all rental and purchase price payment obligations of such Person under such Synthetic Leases assuming such Person exercises the option to purchase the lease property
at the end of the lease term.

 

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“Taxes” shall mean 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 A” shall have the meaning set forth in Section 2.5.

“Term Loan A Commitment” shall mean, with respect to each Lender, the obligation of such Lender to make its portion of the Term Loan A hereunder in one advance on the Closing Date in a principal amount not exceeding the amount set forth with respect to such Lender on Schedule
I. The aggregate principal amount of all Lenders’ Term Loan A Commitments as of the Closing Date is Forty Million Dollars ($40,000,000).

“Term Loan Commitments” shall mean the Term Loan A Commitments and the Incremental Term Loan Commitments.

“Term Loans” shall mean the Term Loan A and any Incremental Term Loan.

“Trading with the Enemy Act” shall mean the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 et seq.), as amended and in effect from time to time.

“Type”, when used in reference to a Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBOR, the One Month LIBOR Index Rate or the Base Rate.

“United States” or “U.S.” shall mean the United States of America.

“U.S. Person” shall mean any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.

“U.S. Tax Compliance Certificate” shall have the meaning set forth in Section 2.20(g).

“Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

“Withholding Agent” shall mean any Loan Party and the Administrative Agent.

“Write-Down and Conversion Powers” shall mean, 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 Classifications of Loans and Borrowings

. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g. a “Revolving Loan” or “Term Loan”) or by Type (e.g. a “Eurodollar Loan”, “LIBOR Index Rate Loan” or “Base Rate Loan”) or by Class and Type (e.g. “Revolving Eurodollar Loan”). Borrowings also may be classified and referred to by Class (e.g. “Revolving Borrowing”) or by Type (e.g. “Eurodollar Borrowing”) or by Class and Type
(e.g. “Revolving Eurodollar Borrowing”).

 

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Section 1.3 Accounting Terms and Determination

.

(a) Unless otherwise defined or specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall
be prepared, in accordance with GAAP as in effect from time to time, applied on a basis consistent with the most recent audited consolidated financial statement of the Borrower delivered pursuant to Section 5.1(a); provided, that if the Borrower notifies the Administrative Agent that the Borrower wishes to amend any covenant in Article VI to eliminate the effect of any change in GAAP on the operation of such covenant (or if the Administrative Agent notifies the
Borrower that the Required Lenders wish to amend Article VI for such purpose), then the Borrower’s compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

(b) Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving
effect to any election under Accounting Standards Codification Section 825-10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Loan Party or any Subsidiary of any Loan Party at "fair value", as defined therein. Without limiting the foregoing, leases shall continue to be classified and accounted for on a basis consistent with that reflected in the Audited Financial Statements for all purposes
of this Agreement, notwithstanding any change in GAAP relating thereto, unless the parties hereto shall enter into a mutually acceptable amendment addressing such changes, as provided for above.

(c) Notwithstanding the above, the parties hereto acknowledge and agree that all calculations of the financial covenants in Article VI (including for purposes of determining the
Applicable Margin and any transaction that by the terms of this Agreement requires that any financial covenant contained in Article VI be calculated on a Pro Forma Basis) shall be made on a Pro Forma Basis with respect to any Asset Sale, Recovery Event or Acquisition occurring during such period.

(d) Notwithstanding anything to the contrary in the foregoing, leases shall continue to be classified and accounted for on a basis consistent with that reflected in the audited financial statements for the Borrower and its Subsidiaries
for the Fiscal Year ended December 31, 2015 for all purposes of this Agreement, notwithstanding any change in GAAP relating thereto, unless the parties hereto shall enter into a mutually acceptable amendment addressing such changes.

Section 1.4 Terms Generally

. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. In the
computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the word “to” means “to but excluding”. Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, restated, supplemented
or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns, (iii) the words “hereof”, “herein” and “hereunder” and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles, Sections, Exhibits and Schedules to this Agreement, (v) any reference to any law shall include all statutory and regulatory rules, regulations, orders and 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) all references to a specific
time shall be construed to refer to the time in the city and state of the Administrative Agent’s principal office, unless otherwise indicated.

 

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Section 1.5 Letter of Credit Amounts

. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit
shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

Section 1.6 Times of Day

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

ARTICLE II

AMOUNT AND TERMS OF THE COMMITMENTS

Section 2.1 General Description of Facilities

. Subject to and upon the terms and conditions herein set forth, (i) the Lenders hereby establish in favor of the Borrower a revolving credit facility pursuant to which each Lender severally agrees (to the extent of such Lender’s Revolving Commitment) to make Revolving Loans in Dollars to the Borrower in accordance with Section 2.2, (ii) the applicable Issuing Bank may issue Letters of Credit denominated in Dollars in accordance with Section
2.22, (iii) the Swingline Lender may make Swingline Loans in Dollars in accordance with Section 2.4, (iv) each Lender agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans pursuant to the terms and conditions hereof; provided, that in no event shall the aggregate principal amount of all outstanding Revolving Loans, Swingline Loans and outstanding LC Exposure exceed the
Aggregate Revolving Commitments in effect from time to time; and (v) each Lender severally agrees to advance its portion of the Term Loan A to the Borrower in Dollars in one advance on the Closing Date in a principal amount not exceeding such Lender’s Term Loan A Commitment.

Section 2.2 Revolving Loans

. Subject to the terms and conditions set forth herein, each Lender severally agrees to make Revolving Loans, ratably in proportion to its Pro Rata Share of the Revolving Commitments, to the Borrower, from time to time during the Availability Period, in an aggregate principal amount outstanding at any time that will not result in (a) such Lender’s Revolving Credit Exposure exceeding such Lender’s Revolving Commitment or (b) the aggregate Revolving Credit Exposures of all Lenders exceeding the
Aggregate Revolving Commitments. During the Availability Period, the Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans in accordance with the terms and conditions of this Agreement; provided, that the Borrower may not borrow or reborrow should there exist a Default or Event of Default.

 

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Section 2.3 Procedure for Revolving Borrowings

. The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each Revolving Borrowing substantially in the form of Exhibit 2.3 (a “Notice of Revolving Borrowing”) (x) prior to 1:00 p.m. on the requested date of each Borrowing of Base Rate Loans or LIBOR Index Rate Loans and (y) prior to 1:00 p.m. three (3) Business Days prior to the requested
date of each Eurodollar Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall specify: (i) the aggregate principal amount of such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in the case of a Eurodollar Borrowing, the duration of the initial Interest Period applicable thereto (subject to the provisions of the definition of Interest Period). Each Revolving Borrowing shall consist of Base
Rate Loans, LIBOR Index Rate Loans or Eurodollar Loans or a combination thereof, as the Borrower may request. The aggregate principal amount of each Eurodollar Borrowing shall be not less than $3,000,000 or a larger multiple of $500,000, and the aggregate principal amount of each Base Rate Borrowing or LIBOR Index Rate Borrowing shall not be less than $1,000,000 or a larger multiple of $100,000; provided, that Base Rate Loans made pursuant to Section
2.4 or Section 2.22(d) may be made in lesser amounts as provided therein. At no time shall the total number of Eurodollar Borrowings outstanding at any time exceed ten (10). Promptly following the receipt of a Notice of Revolving Borrowing in accordance herewith, the Administrative Agent shall advise each Lender of the details thereof and the amount of such Lender’s Revolving Loan to be made as part of the requested Revolving Borrowing.

Section 2.4 Swingline Commitment

.

(a) Subject to the terms and conditions set forth herein, the Swingline Lender may, in its sole discretion, make Swingline Loans to the Borrower, from time to time during the Availability Period, in an aggregate principal amount outstanding at
any time not to exceed the lesser of (i) the Swingline Commitment then in effect and (ii) the difference between the Aggregate Revolving Commitments and the aggregate Revolving Credit Exposures of all Lenders; provided, that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. The Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in accordance with the terms and conditions of this
Agreement.

(b) The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each Borrowing of Swingline Loans substantially in the form of Exhibit 2.4 attached
hereto (“Notice of Swingline Borrowing”) prior to 11:00 a.m. on the requested date of each Borrowing of Swingline Loans. Each Notice of Swingline Borrowing shall be irrevocable and shall specify: (i) the principal amount of such Swingline Loan, (ii) the date of such Swingline Loan (which shall be a Business Day) and (iii) the account of the Borrower to which the proceeds of such Swingline Loan should be credited. The Administrative Agent will promptly
advise the Swingline Lender of each Notice of Swingline Borrowing. The aggregate principal amount of each Swingline Loan shall not be less than $100,000 or a larger multiple of $50,000, or such other minimum amounts agreed to by the Swingline Lender and the Borrower. The Swingline Lender will make the proceeds of each Swingline Loan available to the Borrower in Dollars in immediately available funds at the account specified by the Borrower in the applicable Notice of Swingline Borrowing not later than 1:00 p.m.
on the requested date of such Swingline Loan.

(c) The Swingline Lender, at any time and from time to time in its sole discretion, may, but in no event no less frequently than once each calendar week shall, on behalf of the Borrower (which hereby irrevocably authorizes and directs the Swingline
Lender to act on its behalf), give a Notice of Revolving Borrowing to the Administrative Agent requesting the Lenders (including the Swingline Lender) to make Base Rate Loans in an amount equal to the unpaid principal amount of any Swingline Loan. Each Lender will make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the Swingline Lender in accordance with Section 2.6, and such proceeds will be
used solely for the repayment of such Swingline Loan.

 

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(d) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Swingline Lender) shall purchase
an undivided participating interest in such Swingline Loan in an amount equal to its Pro Rata Share thereof on the date that such Base Rate Borrowing should have occurred. On the date of such required purchase, each Lender shall promptly transfer, in immediately available funds, the amount of its participating interest to the Administrative Agent for the account of the Swingline Lender.

(e) Each Lender’s obligation to make a Base Rate Loan pursuant to Section 2.4(c) or to purchase the participating interests pursuant to Section 2.4(d)
shall be absolute and unconditional and shall not be affected by any circumstance, including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may have or claim against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination of any Lender’s Revolving Commitment, (iii) the existence (or alleged existence) of any event or condition which
has had or could reasonably be expected to have a Material Adverse Effect, (iv) any breach of this Agreement or any other Loan Document by any Loan Party, the Administrative Agent or any Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. If such amount is not in fact made available to the Swingline Lender by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon
for each day from the date of demand thereof (i) at the Federal Funds Rate until the second Business Day after such demand and (ii) at the Base Rate at all times thereafter. Until such time as such Lender makes its required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of the unpaid participation for all purposes of the Loan Documents. In addition, such Lender shall be deemed to have assigned any and all payments made of principal and interest on its
Loans and any other amounts due to it hereunder, to the Swingline Lender to fund the amount of such Lender’s participation interest in such Swingline Loans that such Lender failed to fund pursuant to this Section 2.4, until such amount has been purchased in full.

Section 2.5 Term Loan A Commitment

. Subject to the terms and conditions set forth herein, each Lender severally agrees to make its portion of a single term loan (the “Term Loan A”) to the Borrower in one advance on the Closing Date in a principal amount equal to the Term Loan A Commitment of such Lender. The Term Loan A may be, from time to time in the Borrower’s discretion (subject to the terms of this Agreement), Base Rate Loans, LIBOR Index Rate Loans or Eurodollar Loans
or a combination thereof; provided, that on the Closing Date the Term Loan A shall be Base Rate Loans unless the Administrative Agent shall have received a funding indemnity letter in form and substance reasonably satisfactory to the Administrative Agent. The execution and delivery of this Agreement by the Borrower and the satisfaction of all conditions precedent pursuant to Section 3.1 shall be deemed to constitute
the Borrower’s request to borrow the Term Loan A on the Closing Date. Amounts repaid on the Term Loan A may not be reborrowed.

Section 2.6 Funding of Borrowings

.

(a) Each Lender will make available each Loan to be made by it hereunder on the proposed date thereof by wire transfer in immediately available funds by 11:00 a.m. to the Administrative Agent at the Payment Office; provided, that the Swingline
Loans will be made as set forth in Section 2.4. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts that it receives, in like funds by the close of business on such proposed date, to an account maintained by the Borrower with the Administrative Agent or at the Borrower’s option, by effecting a wire transfer of such amounts to an account designated by the Borrower to the Administrative Agent.

 

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(b) Unless the Administrative Agent shall have been notified by any Lender prior to 5:00 p.m. one (1) Business Day prior to the date of a Borrowing in which such Lender is to participate 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 amount available to the Administrative Agent on such date, and the Administrative Agent, in reliance on such assumption, may make available to the Borrower on such date a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover such corresponding
amount on demand from such Lender together with interest at the Federal Funds Rate until the second Business Day after such demand and thereafter at the Base Rate. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay such corresponding amount to the Administrative Agent together with interest at the rate specified for such Borrowing. Nothing in this
subsection shall be deemed to relieve any Lender from its obligation to fund its Pro Rata Share of any Borrowing hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of any default by such Lender hereunder.

(c) All Revolving Borrowings shall be made by the Lenders on the basis of their respective Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in its obligations hereunder, and each Lender shall be obligated to
make its Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder.

Section 2.7 Interest Elections

.

(a) Each Borrowing initially shall be of the Type specified in the applicable Notice of Borrowing. Thereafter, the Borrower may elect to convert such Borrowing into a different Type or to continue such Borrowing, all as provided in this Section
2.7. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

(b) To make an election pursuant to this Section 2.7, the Borrower shall give the Administrative Agent prior written notice (or telephonic notice promptly confirmed in writing) of each Borrowing
that is to be converted or continued, as the case may be, substantially in the form of Exhibit 2.7 attached hereto (a “Notice of Conversion/Continuation”) (x) prior to 11:00 a.m. one (1) Business Day prior to the requested date of a conversion into a Base Rate Borrowing or a LIBOR Index Rate Borrowing and (y) prior to 11:00 a.m. three (3) Business Days prior to a continuation of or conversion into a Eurodollar
Borrowing. Each such Notice of Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to which such Notice of Conversion/Continuation applies and if different options are being elected with respect to different portions thereof, the portions thereof that are to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) shall be
specified for each resulting Borrowing); (ii) the effective date of the election made pursuant to such Notice of Conversion/Continuation, which shall be a Business Day; (iii) whether the resulting Borrowing is to be a Base Rate Borrowing, a LIBOR Index Rate Borrowing or a Eurodollar Borrowing; and (iv) if the resulting Borrowing is to be a Eurodollar Borrowing, the Interest Period applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of “Interest
Period”. If any such Notice of Conversion/Continuation requests a Eurodollar Borrowing but does not specify an Interest Period, the Borrower shall be deemed to have selected an Interest Period of one month. The principal amount of any resulting Borrowing shall satisfy the minimum borrowing amount for Eurodollar Borrowings, LIBOR Index Rate Borrowings and Base Rate Borrowings set forth in Section 2.3.

 

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(c) If, on the expiration of any Interest Period in respect of any Eurodollar Borrowing, the Borrower shall have failed to deliver a Notice of Conversion/Continuation, then, unless such Borrowing is repaid as provided herein, the Borrower shall
be deemed to have elected to convert such Borrowing to a LIBOR Index Rate Borrowing. No Borrowing may be converted into, or continued as, a Eurodollar Borrowing if an Event of Default exists, unless the Administrative Agent and each of the Lenders shall have otherwise consented in writing. No conversion of any Eurodollar Loans shall be permitted except on the last day of the Interest Period in respect thereof.

(d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent shall promptly notify each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

Section 2.8 Optional Reduction and Termination of Commitments

.

(a) Unless previously terminated, all Revolving Commitments, Swingline Commitments and LC Commitments shall terminate on the Revolving Commitment Termination Date. The Term Loan A Commitments shall terminate upon the making of the Term Loan A
pursuant to Section 2.5.

(b) Upon at least three (3) Business Days’ prior written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent (which notice shall be irrevocable), the Borrower may reduce the Aggregate Revolving Commitments
in part or terminate the Aggregate Revolving Commitments in whole; provided, that (i) any partial reduction shall apply to reduce proportionately and permanently the Revolving Commitment of each Lender, (ii) any partial reduction pursuant to this Section 2.8 shall be in an amount of at least $5,000,000 and any larger multiple of $1,000,000, and (iii) no such reduction shall be permitted which would reduce the Aggregate
Revolving Commitments to an amount less than the aggregate outstanding Revolving Credit Exposure of all Lenders. Any such reduction in the Aggregate Revolving Commitments below the principal amount of the Swingline Commitment and the LC Commitment shall result in a dollar-for-dollar reduction in the Swingline Commitment and the LC Commitment.

Section 2.9 Repayment of Loans

.

(a) The outstanding principal amount of all Revolving Loans and Swingline Loans shall be due and payable (together with accrued and unpaid interest thereon) on the Revolving Commitment Termination Date.

 

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(b) The Borrower unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of the Term Loan A of such Lender in quarterly installments, commencing with the first full Fiscal Quarter
ending after the Term Loan A is funded, with each such installment being in the aggregate principal amount (as such installment may be adjusted as a result of prepayments made pursuant to Sections 2.11 and 2.12) for all Lenders equal to (i) 1.25% of the principal amount of the Term Loan A actually advanced for the first four (4) installments, (ii) 1.875% of the principal amount of the Term Loan A actually advanced
for the next eight (8) installments and (iii) 2.50% of the principal amount of the Term Loan A actually advanced for the remaining installments (and on such other date(s) and in such other amounts as may be required from time to time pursuant to this Agreement); provided, that, to the extent not previously paid, the aggregate unpaid principal balance of the Term Loan A shall be due and payable on the Maturity Date.

(c) Each Incremental Term Loan shall be repayable as provided in the documentation establishing such Incremental Term Loan. Amounts repaid on any Incremental Term Loan may not be reborrowed.

Section 2.10 Evidence of Indebtedness

.

(a) Each Lender shall maintain in accordance with its usual practice appropriate records evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal
and interest payable thereon and paid to such Lender from time to time under this Agreement. The Administrative Agent shall maintain appropriate records in which shall be recorded (i) the Revolving Commitment and Term Loan Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class and Type thereof and, in the case of each Eurodollar Loan, the Interest Period applicable thereto, (iii) the date of each continuation thereof pursuant to Section
2.7, (iv) the date of each conversion of all or a portion thereof to another Type pursuant to Section 2.7, (v) the date and amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder in respect of such Loans and (vi) both the date and amount of any sum received by the Administrative Agent hereunder from the Borrower in respect of the Loans and each Lender’s Pro Rata Share thereof. The
entries made in such records shall be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, that the failure or delay of any Lender or the Administrative Agent in maintaining or making entries into any such record or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans (both principal and unpaid accrued interest) of such
Lender in accordance with the terms of this Agreement.

(b) This Agreement evidences the obligation of the Borrower to repay the Loans and is being executed as a “noteless” credit agreement. However, at the request of any Lender (including the Swingline Lender) at any time, the Borrower
agrees that it will prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender in the form of Exhibit 2.10 (a “Note”). Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment permitted hereunder) be represented by one or more promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its registered assigns).

 

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Section 2.11 Optional Prepayments

. The Borrower shall have the right at any time and from time to time to prepay any Borrowing, in whole or in part, without premium or penalty, by giving irrevocable written notice (or telephonic notice promptly confirmed in writing) except that such notice shall be revocable if a prepayment is being made in anticipation of concluding a financing arrangement, and the Borrower is ultimately unable to secure such financing arrangement) to the Administrative Agent no later than (i) in the case of prepayment
of any Eurodollar Borrowing, 11:00 a.m. not less than three (3) Business Days prior to any such prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing or LIBOR Index Rate Borrowing, 11:00 a.m. not less than one Business Day prior to the date of such prepayment, and (iii) in the case of Borrowings of Swingline Loans, 11:00 a.m. on the date of such prepayment. Each such notice shall be irrevocable and shall specify the proposed date of such prepayment and the principal amount of each Borrowing
or portion thereof to be prepaid. Upon receipt of any such notice, the Administrative Agent shall promptly notify each affected Lender of the contents thereof and of such Lender’s Pro Rata Share of any such prepayment. If such notice is given, the aggregate amount specified in such notice shall be due and payable on the date designated in such notice, together with accrued interest to such date on the amount so prepaid in accordance with Section 2.13(e); provided,
that if a Eurodollar Borrowing is prepaid on a date other than the last day of an Interest Period applicable thereto, the Borrower shall also pay all amounts required pursuant to Section 2.19. Each partial prepayment of any Loan (other than a Swingline Loan) shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type pursuant to Section 2.3 or in the case of
a Swingline Loan pursuant to Section 2.4. Each prepayment of a Borrowing shall be applied ratably to the Loans comprising such Borrowing, and in the case of a prepayment of the Term Loan A or any Incremental Term Loan, ratably to the Term Loan A and all outstanding Incremental Term Loans, then to principal installments of the Term Loan A and all outstanding Incremental Term Loans as directed by the Borrower.

Section 2.12 Mandatory Prepayments

.

(a) Immediately upon receipt by the Borrower or any of its Domestic Subsidiaries of Net Cash Proceeds of any Asset Sale or Recovery Event in excess of (i) $1,000,000, with respect to any individual Asset Sale or Recovery Event (or series of related
Asset Sales or Recovery Events), or (ii) $2,500,000 in any Fiscal Year with respect to all such Asset Sales or Recovery Events, respectively, the Borrower shall prepay the Obligations in accordance with Section 2.12(d) in an amount equal to such Net Cash Proceeds, in each case, to the extent such Net Cash Proceeds are not reinvested or committed to be reinvested in assets (excluding current assets as classified in accordance with GAAP) within one hundred eighty
(180) days of the date of such Asset Sale or Recovery Event and, if committed to be reinvested, actually reinvested in assets (excluding current assets as classified in accordance with GAAP) within one hundred eighty (180) days after the date of such commitment (it being understood that such prepayment shall be due immediately upon the expiration of the applicable period of one hundred eighty (180) days).

(b) Immediately upon the receipt by the Borrower or any of its Subsidiaries of Net Cash Proceeds of any issuance of Indebtedness (other than Indebtedness permitted under Section 7.1), the Borrower
shall prepay the Obligations in accordance with Section 2.12(d) in an amount equal to such Net Cash Proceeds.

(c) Immediately upon the receipt by the Borrower of Net Cash Proceeds from any Specified Equity Contribution, the Borrower shall prepay the Obligations in accordance with Section 2.12(d) in an amount
equal to such Net Cash Proceeds.

 

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(d) Any prepayments made by the Borrower pursuant to Sections 2.12(a), (b) or (c) above shall be applied
as follows: first, to Administrative Agent’s fees and reimbursable expenses then due and payable pursuant to any of the Loan Documents; second, to all reimbursable expenses of the Lenders and all fees and reimbursable expenses of the Issuing Banks then due and payable pursuant to any of the Loan Documents, pro rata to the Lenders and the Issuing Banks based on their respective Pro Rata Shares of such fees and
expenses; third, to interest and fees then due and payable hereunder, pro rata to the Lenders based on their respective Pro Rata Shares of such interest and fees; fourth, to the principal balance of the Term Loans (on a pro rata basis) until the same shall have been paid in full, pro rata to the Lenders based on their Pro Rata Shares thereof and applied first, to the
next four (4) installments thereof and then, to the remaining principal installments thereof on a pro rata basis until paid in full; fifth, to the principal balance of the Swingline Loans, until the same shall have been paid in full, to the Swingline Lender, sixth, to the principal balance of the Revolving Loans, until the same shall have been paid in full, pro rata to
the Lenders based on their respective Revolving Commitments and seventh, to Cash Collateralize the Letters of Credit in an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid fees thereon. The Revolving Commitments of the Lenders shall not be permanently reduced by the amount of any prepayments made pursuant to clauses fifth through seventh above.

(e) If at any time the Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving Commitments, as reduced pursuant to Section 2.8 or otherwise, the Borrower shall immediately repay
Swingline Loans and Revolving Loans in an amount equal to such excess, together with all accrued and unpaid interest on such excess amount and any amounts due under Section 2.19. Each prepayment shall be applied first to the Swingline Loans to the full extent thereof, second to the Base Rate Loans and LIBOR Index Rate Loans to the full extent thereof, and finally to Eurodollar Loans to the full extent thereof. If after giving effect to prepayment of all Swingline
Loans and Revolving Loans, the Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving Commitments, the Borrower shall Cash Collateralize its reimbursement obligations with respect to all Letters of Credit in an amount equal to such excess plus any accrued and unpaid fees thereon.

Section 2.13 Interest on Loans

.

(a) The Borrower shall pay interest on (i) each Base Rate Loan at the Base Rate plus the Applicable Margin in effect from time to time, (ii) each LIBOR Index Rate Loan at the One Month LIBOR Index
Rate plus the Applicable Margin in effect from time to time and (iii) each Eurodollar Loan at the Adjusted LIBOR for the applicable Interest Period in effect for such Loan plus the Applicable Margin in effect from time to time.

(b) The Borrower shall pay interest on each Swingline Loan at the Base Rate plus the Applicable Margin in effect from time to time.

(c) The Borrower shall pay interest on each Incremental Term Loan as provided in the definitive documentation establishing such Incremental Term Loan.

(d) Notwithstanding clauses (a), (b) and (c) above, if an Event of Default has occurred and is continuing,
at the request of the Required Lenders, or automatically in the case of an Event of Default under Sections 8.1(a), (g) or (h), the Borrower shall pay interest (“Default Interest”) with respect to all Eurodollar Loans at the rate per annum equal to 2.00% above the otherwise applicable interest rate for such Eurodollar
Loans for the then-current Interest Period until the last day of such Interest Period, and thereafter, and with respect to all Base Rate Loans, LIBOR Index Rate Loans and all other Obligations hereunder (other than Loans), at the rate per annum equal to 2.00% above the otherwise applicable interest rate for Base Rate Loans or LIBOR Index Rate Loans, as the case may be.

 

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(e) Interest on the principal amount of all Loans shall accrue from and including the date such Loans are made to but excluding the date of any repayment thereof. Interest on all outstanding Base Rate Loans, LIBOR Index Rate Loans and Swingline
Loans shall be payable quarterly in arrears on the last day of each March, June, September and December and on the Revolving Commitment Termination Date or the Maturity Date, as the case may be. Interest on all outstanding Eurodollar Loans shall be payable on the last day of each Interest Period applicable thereto, and, in the case of any Eurodollar Loans having an Interest Period in excess of three months, on each day which occurs every three (3) months after the initial date of such Interest Period, and on
the Revolving Commitment Termination Date or the Maturity Date, as the case may be. Interest on any Loan which is converted into a Loan of another Type or which is repaid or prepaid shall be payable on the date of such conversion or on the date of any such repayment or prepayment (on the amount repaid or prepaid) thereof. All Default Interest shall be payable on demand.

(f) The Administrative Agent shall determine each interest rate applicable to the Loans hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination
shall be conclusive and binding for all purposes, absent manifest error.

Section 2.14 Fees

.

(a) The Borrower shall pay to the Administrative Agent for its own account fees in the amounts and at the times previously agreed upon in writing by the Borrower and the Administrative Agent.

(b) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee (the “Commitment Fee”), which shall accrue at the Applicable Margin on the
daily amount of the unused Revolving Commitment of such Lender during the Availability Period. For purposes of computing the Commitment Fee with respect to the Revolving Commitments, the Revolving Commitment of each Lender shall be deemed used to the extent of the outstanding Revolving Loans and LC Exposure, but not Swingline Exposure, of such Lender.

(c) The Borrower agrees to pay (i) to the Administrative Agent, for the account of each Lender, a letter of credit fee with respect to its participation in each Letter of Credit (the “Letter of Credit
Fee”), which shall accrue at a rate per annum equal to the Applicable Margin then in effect on the average daily amount of such Lender’s LC Exposure attributable to such Letter of Credit during the period from and including the date of issuance of such Letter of Credit to but excluding the date on which such Letter of Credit expires or is drawn in full (such Letter of Credit Fee shall continue to accrue on any LC Exposure that remains outstanding after the Revolving Commitment Termination Date)
and (ii) to the applicable Issuing Bank for its own account a fronting fee, which shall accrue at the rate set forth in the Fee Letter or other written agreement between the applicable Issuing Bank and the Borrower, as applicable, on the average daily amount of the LC Exposure during the Availability Period (or until the date that such Letter of Credit is irrevocably cancelled, whichever is later), as well as the applicable Issuing Bank’s standard fees with respect to issuance, amendment, renewal or extension
of any Letter of Credit or processing of drawings thereunder. Notwithstanding the foregoing, if the Default Interest has been imposed pursuant to Section 2.13(c), the rate per annum used to calculate the Letter of Credit Fee pursuant to clause (i) above shall automatically be increased by 2.00%.

(d) The Borrower shall pay on the Closing Date to the Administrative Agent and its affiliates all fees in the Fee Letter that are due and payable on the Closing Date. The Borrower shall pay on the Closing Date to the Lenders all upfront fees
previously agreed in writing.

 

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(e) Accrued fees under clauses (b) and (c) above shall be payable quarterly in arrears on the last day of each March, June, September and December,
commencing on the first such date to occur after the Closing Date and on the Revolving Commitment Termination Date (and if later, the date the Loans and LC Exposure shall be repaid in their entirety); provided further, that any such fees accruing after the Revolving Commitment Termination Date shall be payable on demand.

(f) Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting Lender, such Defaulting Lender will not be entitled to Commitment Fees during such period pursuant to Section
2.14(b) or Letter of Credit Fees accruing during such period pursuant to Section 2.14(c) (without prejudice to the rights of the Lenders other than Defaulting Lenders in respect of such fees), provided that (a) to the extent that a portion of the LC Exposure of such Defaulting Lender is reallocated to the Non-Defaulting Lenders pursuant to Section 2.26, such fees
that would have accrued for the benefit of such Defaulting Lender will instead accrue for the benefit of and be payable to such Non-Defaulting Lenders, pro rata in accordance with their respective Revolving Commitments and (b) to the extent any portion of such LC Exposure cannot be so reallocated, such fees will instead accrue for the benefit of, and be payable to, the applicable Issuing Bank. The pro rata payment
provisions of Section 2.21 shall automatically be deemed adjusted to reflect the provisions of this subsection (f).

Section 2.15 Computation of Interest and Fees

.

Interest hereunder based on the Administrative Agent’s prime lending rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day). All other interest and all fees payable hereunder shall be computed on the basis of a
year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day). Each determination by the Administrative Agent of an interest rate or fee hereunder shall be made in good faith and, except for manifest error, shall be final, conclusive and binding for all purposes.

Section 2.16 Inability to Determine Interest Rates

. If prior to the commencement of any Interest Period for any Eurodollar Borrowing,

(a) the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower absent manifest error) that, by reason of circumstances affecting the relevant interbank market, adequate and reasonable
means do not exist for ascertaining the Adjusted LIBOR for such Interest Period or the One Month LIBOR Index Rate, or

(b) the Administrative Agent shall have received notice from the Required Lenders that the Adjusted LIBOR does not adequately and fairly reflect the cost to such Lenders of making, funding or maintaining their (or its, as the case may be) Eurodollar
Loans for such Interest Period,

the Administrative Agent shall give written notice (or telephonic notice, promptly confirmed in writing) to the Borrower and to the Lenders as soon as practicable thereafter. Until the Administrative Agent shall notify the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (A) the obligations of the Lenders to make Eurodollar Loans
or LIBOR Index Rate Loans, as applicable, or to continue or convert outstanding Loans as or into Eurodollar Loans or LIBOR Index Rate Loans, as applicable, shall be suspended and (B) all such affected Loans shall be converted into Base Rate Loans on the last day of the then current Interest Period applicable thereto unless the Borrower prepays such Loans in accordance with this Agreement. Unless the Borrower notifies the Administrative Agent at least one Business Day before the date of any Eurodollar Borrowing
for which a Notice of Revolving Borrowing or Notice of Conversion/Continuation has previously been given that it elects not to borrow on such date, then such Revolving Borrowing shall be made as a Base Rate Borrowing.

 

 

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Section 2.17 Illegality

. If any Change in Law shall make it unlawful or impossible for any Lender to make, maintain or fund any Eurodollar Loan or LIBOR Index Rate Loan and such Lender shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and the other Lenders, whereupon until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Eurodollar Loans or
LIBOR Index Rate Loans, or to continue or convert outstanding Loans as or into Eurodollar Loans or LIBOR Index Rate Loans, shall be suspended. In the case of the making of a Eurodollar Borrowing or LIBOR Index Rate Borrowing, such Lender’s Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving Borrowing and, with respect to Eurodollar Loans, for the same Interest Period, and if the affected Eurodollar Loan or LIBOR Index Rate Loan is then outstanding, such Loan shall be converted
to a Base Rate Loan immediately, in the case of a Loan that is a LIBOR Index Rate Loan, and, in the case of a Loan that is a Eurodollar Loan, either (i) on the last day of the then current Interest Period applicable to such Eurodollar Loan if such Lender may lawfully continue to maintain such Loan to such date or (ii) immediately if such Lender shall determine that it may not lawfully continue to maintain such Eurodollar Loan to such date. Notwithstanding the foregoing, the affected Lender shall, prior to giving
such notice to the Administrative Agent, designate a different Applicable Lending Office if such designation would avoid the need for giving such notice and if such designation would not otherwise be disadvantageous to such Lender in the good faith exercise of its discretion.

Section 2.18 Increased Costs

.

(a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit or similar requirement that is not otherwise included in the determination of the Adjusted LIBOR or the One Month LIBOR Index Rate hereunder against assets of, deposits with
or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBOR or the One Month LIBOR Index Rate) or any Issuing Bank;

(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 on any Issuing Bank or the eurodollar interbank market any other condition affecting this Agreement or any Eurodollar Loans or LIBOR Index Rate Loans made by such Lender or any Letter of Credit or any participation
therein;

and the result of either of the foregoing is to increase the cost to such Lender of making, converting into, continuing or maintaining a Eurodollar Loan or LIBOR Index Rate Loan or to increase the cost to such Lender or such Issuing Bank of participating in or issuing any Letter of Credit or to reduce the amount received or receivable by such Lender
or such Issuing Bank hereunder (whether of principal, interest or any other amount), then the Borrower shall promptly pay, upon written notice from and demand by such Lender on the Borrower (with a copy of such notice and demand to the Administrative Agent), to the Administrative Agent for the account of such Lender, within five (5) Business Days after the date of such notice and demand, additional amount or amounts sufficient to compensate such Lender or such Issuing Bank, as the case may be, for such additional
costs incurred or reduction suffered.

 

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(b) If any Lender or any Issuing Bank shall have determined that on or after the date of this Agreement any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s
or such Issuing Bank’s capital (or on the capital of the Parent Company of such Lender or such Issuing Bank) as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender, such Issuing Bank or the Parent Company of such Lender or such Issuing Bank could have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing Bank’s policies or the policies of the Parent Company of such Lender or such
Issuing Bank with respect to capital adequacy) then, from time to time, within five (5) Business Days after receipt by the Borrower of written demand by such Lender (with a copy thereof to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender, such Issuing Bank or the Parent Company of such Lender or such Issuing Bank for any such reduction suffered.

(c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary to compensate such Lender, such Issuing Bank or the Parent Company of such Lender or such Issuing Bank, as the case may be, specified in clause
(a) or (b) of this Section 2.18 shall be delivered to the Borrower (with a copy to the Administrative Agent) and shall be conclusive, absent manifest error. The Borrower shall pay any such Lender or such Issuing Bank, as the case may be, such amount or amounts within five (5) Business Days after receipt thereof.

(d) Failure or delay on the part of any Lender or any Issuing Bank to demand compensation pursuant to this Section 2.18 shall not constitute a waiver of such Lender’s or such Issuing Bank’s
right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Bank under this Section for any increased costs or reductions incurred more than nine (9) months prior to the date that such Lender or such Issuing Bank delivers the certificate contemplated by Section 2.18(c); provided, further,
that if the Change in Law giving rise to such increased costs or reductions is retroactive, then such nine-month period shall be extended to include the period of such retroactive effect.

Section 2.19 Funding Indemnity

. In the event of (a) the payment of any principal of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion or continuation of a Eurodollar Loan other than on the last day of the Interest Period applicable thereto, or (c) the failure by the Borrower to borrow, prepay, convert or continue any Eurodollar Loan on the date specified in any applicable notice (regardless of whether such notice is withdrawn or revoked),
then, in any such event, the Borrower shall compensate each Lender, within five (5) Business Days after written demand from such Lender, for any loss, cost or expense (excluding loss of anticipated profit) attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense shall be deemed to include an amount determined by such Lender to be the excess, if any, of (A) the amount of interest that would have accrued on the principal amount of such Eurodollar Loan if such event had not occurred
at the Adjusted LIBOR applicable to such Eurodollar Loan (but, for purposes of clarity, not the Applicable Margin applicable thereto) for the period from the date of such event to the last day of the then current Interest Period therefor (or in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such Eurodollar Loan) over (B) the amount of interest that would accrue on the principal amount of such Eurodollar Loan for the same period if the Adjusted
LIBOR were set on the date such Eurodollar Loan was prepaid or converted or the date on which the Borrower failed to borrow, convert or continue such Eurodollar Loan. A certificate as to any additional amount payable under this Section 2.19 submitted to the Borrower by any Lender (with a copy to the Administrative Agent) shall be conclusive, absent manifest error.

 

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Section 2.20 Taxes

.

(a) For purposes of this Section 2.20, the term “Lender” includes any Issuing Bank and the term “applicable Law” includes FATCA.

(b) Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable Law. If any applicable Law (as determined in
the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after
making such deduction or withholding (including such deductions and withholdings applicable to additional sums payable under this Section 2.20) the applicable Recipient shall receive an amount equal to the sum it would have received had no such deduction or withholding been made.

(c) In addition, the Loan 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) The Loan Parties shall jointly and severally indemnify each Recipient, within ten (10) Business 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 2.20) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative
Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

(e) Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified
the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.4(e) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses
arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to
the Lender from any other source against any amount due to the Administrative Agent under this clause (e).

 

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(f) As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.20(f), such Loan Party shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

(g)                     (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any
Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed
by applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.20(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, in the event that the Borrower is a U.S. Person,

(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request
of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E,
as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

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(ii) executed originals of IRS Form W-8ECI,

(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit 2.20-1 to
the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or

(iv) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in
the form of Exhibit 2.20-2 or Exhibit 2.20-3, 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 2.20-4 on behalf of each such direct and indirect partner;

(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable Law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable Law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be
made; and

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

 

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

(h) If any Recipient determines, in its sole discretion, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.20 (including by the payment of
additional amounts pursuant to this Section 2.20), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.20 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority
with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this clause (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this clause
(h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this clause (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 clause (h) 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.

Section 2.21 Payments Generally; Pro Rata Treatment; Sharing of Set-offs

.

(a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Sections 2.18, 2.19 or 2.20,
or otherwise) prior to 12:00 noon on the date when due, in immediately available funds, free and clear of any defenses, rights of set-off, counterclaim, or withholding or deduction of taxes. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except payments to be made
directly to the applicable Issuing Bank or Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.18, 2.19 and 2.20 and 11.3 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other
Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars.

(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied: first,
to Administrative Agent’s fees and reimbursable expenses then due and payable pursuant to any of the Loan Documents; second, to all reimbursable expenses of the Lenders and all fees and reimbursable expenses of the Issuing Banks then due and payable pursuant to any of the Loan Documents, pro rata to the Lenders and the Issuing Banks based on their respective pro rata shares of such fees and expenses; third, to
interest and fees then due and payable hereunder, pro rata to the Lenders based on their respective pro rata shares of such interest and fees; and fourth, to the payment of principal of the Loans and unreimbursed LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties.

 

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(c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements or Swingline Loans that would result
in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Credit Exposure, Term Loans and accrued interest and fees thereon than the proportion received by any other Lender with respect to its Revolving Credit Exposure or Term Loans, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Credit Exposure and Term Loans of other Lenders to the extent necessary so that the benefit of all such payments shall
be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Credit Exposure and Term Loans; provided, that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this clause
(c) shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Revolving Credit Exposure and Term Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this clause (c) shall apply).
The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

(d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Banks hereunder that the Borrower will not
make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Banks, as the case may be, the amount or amounts due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Banks, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender
or such Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

(e) Notwithstanding anything herein to the contrary, any amount paid by the Borrower for the account of a Defaulting Lender under this Agreement (whether on account of principal, interest, fees, reimbursement of LC Disbursements, indemnity payments
or other amounts) will be retained by the Administrative Agent in a segregated non-interest bearing account until the Revolving Commitment Termination Date at which time the funds in such account will be applied by the Administrative Agent, to the fullest extent permitted by Law, in the following order of priority: first to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent under this Agreement, second to
the payment of any amounts owing by such Defaulting Lender to the Issuing Banks and the Swingline Lender under this Agreement, third to the payment of interest due and payable to the Lenders hereunder that are not Defaulting Lenders, ratably among them in accordance with the amounts of such interest then due and payable to them, fourth to the payment of fees then due and payable to the Lenders hereunder that are not
Defaulting Lenders, ratably among them in accordance with the amounts of such fees then due and payable to them, fifth to pay principal and unreimbursed LC Disbursements then due and payable to the Lenders hereunder that are not Defaulting Lenders, ratably in accordance with the amounts thereof then due and payable to them, sixth to the ratable payment of other amounts then due and payable to the Lenders hereunder
that are not Defaulting Lenders, and seventh to pay amounts owing under this Agreement to such Defaulting Lender or as a court of competent jurisdiction may otherwise direct.

 

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Section 2.22 Letters of Credit

.

(a) During the Availability Period, the applicable Issuing Bank, in reliance upon the agreements of the other Lenders pursuant to Section 2.22(d) and 2.22(e),
may, in its sole discretion, issue, at the request of the Borrower, Letters of Credit for the account of the Borrower or any Subsidiary on the terms and conditions hereinafter set forth; provided, that (i) each Letter of Credit shall expire on the earlier of (A) the date one year after the date of issuance of such Letter of Credit (or in the case of any renewal or extension thereof, one year after such renewal or extension) and (B) the date that is five (5) Business
Days prior to the Revolving Commitment Termination Date, unless the requirement of Section 2.22(l) has been satisfied; (ii) each Letter of Credit shall be in a stated amount of at least $100,000 (or such lesser amount as the applicable Issuing Bank may agree in its sole discretion); and (iii) the Borrower may not request any Letter of Credit, if, after giving effect to such issuance (A) the aggregate LC Exposure would exceed the LC Commitment or (B) the aggregate
Revolving Credit Exposure of all Lenders would exceed the Aggregate Revolving Commitments. Each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the applicable Issuing Bank without recourse a participation in each Letter of Credit equal to such Lender’s Pro Rata Share of the aggregate amount available to be drawn under such Letter of Credit (i) on the Closing Date with respect to all Existing Letters of Credit and (ii) on
the date of issuance with respect to all other Letters of Credit. Each issued Letter of Credit (including the Existing Letters of Credit) shall be deemed to utilize the Revolving Commitment of each Lender by an amount equal to the amount of such participation. All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be subject to and governed by the terms and conditions hereof; provided, however,
that Existing Letters of Credit shall not be amended, renewed or extended except as otherwise set forth on Schedule 2.22.

(b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall give the applicable Issuing Bank and the Administrative Agent irrevocable written notice (which
may be in the form of a duly completed Letter of Credit Application) at least three (3) Business Days prior to the requested date of such issuance specifying the date (which shall be a Business Day) such Letter of Credit is to be issued (or amended, extended or renewed, as the case may be), the expiration date of such Letter of Credit, the amount of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter
of Credit. In addition to the satisfaction of the conditions in Article III, the issuance of such Letter of Credit (or any amendment which increases the amount of such Letter of Credit) will be subject to the further conditions that such Letter of Credit shall be in such form and contain such terms as the applicable Issuing Bank shall approve and that the Borrower shall have executed and delivered any Issuer Documents as the applicable Issuing Bank shall require; provided,
that in the event of any conflict between such applications, agreements or instruments and this Agreement, the terms of this Agreement shall control.

 

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(c) At least two (2) Business Days prior to the issuance of any Letter of Credit, the applicable Issuing Bank will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received such notice and if
not, the applicable Issuing Bank will provide the Administrative Agent with a copy thereof. Unless the applicable Issuing Bank has received notice from the Administrative Agent on or before 5:00 p.m. the Business Day immediately preceding the date the applicable Issuing Bank is to issue the requested Letter of Credit (1) directing the applicable Issuing Bank not to issue the Letter of Credit because such issuance is not then permitted hereunder because of the limitations set forth in Section
2.22(a) or that one or more conditions specified in Article III are not then satisfied, then, subject to the terms and conditions hereof, the applicable Issuing Bank shall, on the requested date, issue such Letter of Credit in accordance with such Issuing Bank’s usual and customary business practices.

(d) The applicable Issuing Bank shall examine all documents purporting to represent a demand for payment under a Letter of Credit promptly following its receipt thereof. The applicable Issuing Bank shall notify the Borrower and the Administrative
Agent of such demand for payment and whether such Issuing Bank has made or will make a LC Disbursement thereunder; provided, that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the applicable Issuing Bank and the Lenders with respect to such LC Disbursement. The Borrower shall be irrevocably and unconditionally obligated to reimburse the applicable Issuing Bank for any LC Disbursements paid by such
Issuing Bank in respect of such drawing, without presentment, demand or other formalities of any kind. Unless the Borrower shall have notified the applicable Issuing Bank and the Administrative Agent prior to 11:00 a.m. on the Business Day immediately prior to the date on which such drawing is honored that the Borrower intends to reimburse the applicable Issuing Bank for the amount of such drawing in funds other than from the proceeds of Revolving Loans, the Borrower shall be deemed to have timely given a Notice
of Revolving Borrowing to the Administrative Agent requesting the Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact amount due to the applicable Issuing Bank; provided, that for purposes solely of such Borrowing, the conditions precedent set forth in Section 3.2 hereof shall not be applicable. The Administrative Agent shall notify the Lenders of such Borrowing in accordance
with Section 2.3, and each Lender shall make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the applicable Issuing Bank in accordance with Section 2.6. The proceeds of such Borrowing shall be applied directly by the Administrative Agent to reimburse the applicable Issuing Bank for such LC Disbursement.

(e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than any Issuing Bank) shall be obligated
to fund the participation that such Lender purchased pursuant to subsection (a) in an amount equal to its Pro Rata Share of such LC Disbursement on and as of the date which such Base Rate Borrowing should have occurred. Each Lender’s obligation to fund its participation shall be absolute and unconditional and shall not be affected by any circumstance, including without limitation (i) any setoff, counterclaim, recoupment, defense or other right that such Lender or any other Person may have against the applicable
Issuing Bank or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination of the Aggregate Revolving Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or any other Lender, (v) any amendment, renewal or extension of any Letter of Credit or (vi) any other circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing. On the date that such participation is required to be funded, each Lender shall promptly transfer, in immediately available funds, the amount of its participation to the Administrative Agent for the account of the applicable Issuing Bank. Whenever, at any time after the applicable Issuing Bank has received from any such Lender the funds for its participation in a LC Disbursement, the applicable Issuing Bank (or the Administrative Agent on its behalf) receives any payment on account thereof, the
Administrative Agent or such Issuing Bank, as the case may be, will distribute to such Lender its Pro Rata Share of such payment; provided, that if such payment is required to be returned for any reason to the Borrower or to a trustee, receiver, liquidator, custodian or similar official in any bankruptcy proceeding, such Lender will return to the Administrative Agent or such Issuing Bank any portion thereof previously distributed by the Administrative Agent or such
Issuing Bank to it.

 

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(f) To the extent that any Lender shall fail to pay any amount required to be paid pursuant to clauses (d) or (e) of this Section
2.22 on the due date therefor, such Lender shall pay interest to the applicable Issuing Bank (through the Administrative Agent) on such amount from such due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate; provided, that if such Lender shall fail to make such payment to such Issuing Bank within three (3) Business Days of such due date, then, retroactively to the due date, such Lender shall be obligated to pay interest
on such amount at the rate set forth in Section 2.13(c).

(g) If any Event of Default shall occur and be continuing, (x) on the Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders demanding that its reimbursement obligations with respect to the Letters
of Credit be Cash Collateralized pursuant to this clause (g), if such notice is received by the Borrower prior to 2:30 p.m. and (y) on the following Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders demanding that its reimbursement obligations with respect to the Letters of Credit be Cash Collateralized pursuant to this clause (g), if such notice is received by the
Borrower after 2:30 p.m. on the preceding Business Day, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Issuing Banks and the Lenders, an amount in cash equal to 102% of the aggregate LC Exposure of all Lenders as of such date plus any accrued and unpaid fees thereon; provided, that such obligation to Cash Collateralize the reimbursement obligations of the Borrower with respect
to the Letters of Credit shall become effective immediately, and such deposit shall become immediately due and payable, without demand or notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (g) or (h) of Section 8.1. Such deposit shall be held by the Administrative Agent as Cash Collateral for the payment and
performance of the obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. The Borrower agrees to execute any documents and/or certificates to effectuate the intent of this clause (g). Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative
Agent and at the Borrower’s risk and expense, such deposits shall not bear interest. Interest and profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse each applicable Issuing Bank for LC Disbursements for which it had not been reimbursed and to the extent so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the
Loans has been accelerated, with the consent of the Required Lenders, be applied to satisfy other obligations of the Borrower under this Agreement and the other Loan Documents. If the Borrower is required to Cash Collateralize its reimbursement obligations with respect to the Letters of Credit as a result of the occurrence of an Event of Default, such cash collateral so posted (to the extent not so applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all Events of Default
have been cured or waived.

 

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(h) Upon the request of any Lender, but no more frequently than quarterly, each of the Issuing Banks shall deliver (through the Administrative Agent) to each Lender and the Borrower a report describing the aggregate Letters of Credit then outstanding.
Upon the request of any Lender from time to time, each of the Issuing Banks shall deliver to such Lender any other information reasonably requested by such Lender with respect to each Letter of Credit then outstanding.

(i) The Borrower’s obligation to reimburse LC Disbursements hereunder shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under all circumstances whatsoever and
irrespective of any of the following circumstances:

(i) Any lack of validity or enforceability of any Letter of Credit or this Agreement;

(ii) The existence of any claim, set-off, defense or other right which the Borrower or any Subsidiary or Affiliate of the Borrower may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons or entities
for whom any such beneficiary or transferee may be acting), any Lender (including any Issuing Bank) or any other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction;

(iii) Any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect;

(iv) Payment by the applicable Issuing Bank under a Letter of Credit against presentation of a draft or other document to such Issuing Bank that does not comply with the terms of such Letter of Credit;

(v) Any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section 2.22, constitute a legal or equitable discharge
of, or provide a right of setoff against, the Borrower’s obligations hereunder; or

(vi) The existence of a Default or an Event of Default.

Neither the Administrative Agent, the Issuing Banks, the Lenders nor any Related Party of any of the foregoing shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to above), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the applicable Issuing Bank; provided, that the foregoing shall not be construed to excuse any Issuing Bank from liability to the Borrower to
the extent of any actual direct damages (as opposed to special, indirect (including claims for lost profits or other consequential damages), or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable Law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise due care when determining whether drafts or other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree,
that in the absence of gross negligence, bad faith or willful misconduct on the part of the applicable Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised due care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented that appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable
Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

 

 

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(j) Unless otherwise expressly agreed by the applicable Issuing Bank and the Borrower when a Letter of Credit is issued and subject to applicable Laws, (i) each standby Letter of Credit shall be governed by the “International Standby Practices
1998” (or such later revision as may be published by the Institute of International Banking Law & Practice on any date any Letter of Credit may be issued), (ii) each documentary Letter of Credit shall be governed by the Uniform Customs and Practices for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 (or such later revision as may be published by the International Chamber of Commerce on any date any Letter of Credit may be issued) and (iii) the Borrower shall
specify the foregoing in each Letter of Credit Application submitted for the issuance of a Letter of Credit.

(k) Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

(l) Expiry Dates Greater than One Year. If the expiry date of any requested Letter of Credit (or any extension or renewal of any Letter of Credit) would occur after the date that is five (5) Business
Days prior to the Revolving Commitment Termination Date, such Letter of Credit shall be Cash Collateralized on or prior to the date of issuance of such Letter of Credit (or such later date as the applicable Issuing Bank may agree in its sole discretion) or all the Lenders having Revolving Commitments have approved such expiry date.

(m) Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary,
the Borrower shall be obligated to reimburse the applicable Issuing Bank hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.

Section 2.23 Increase of Commitments; Additional Lenders

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The Borrower shall have the right from time to time, upon at least five (5) Business Days’ prior written notice to the Administrative Agent (or twenty (20) days’ notice as set forth in clause (m) below), to increase the Aggregate Revolving Commitments or establish one or more additional
term loans (each such term loan, an “Incremental Term Loan”) by up to $50,000,000, provided, that:

 

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(a) no Default or Event of Default shall have occurred and be continuing on the date on which such increase in the Aggregate Revolving Commitments or Incremental Term Loan is to become effective;

(b) such increase in the Aggregate Revolving Commitments or Incremental Term Loan shall be in a minimum amount of $10,000,000 and in integral multiples of $5,000,000 in excess thereof (or such lesser amounts as the Administrative Agent may agree
in its discretion);

(c) such increase in the Aggregate Revolving Commitments or Incremental Term Loan shall be effective only upon receipt by the Administrative Agent of (x) additional Revolving Commitments in a corresponding amount of such requested increase in
the Aggregate Revolving Commitments or Incremental Term Loan Commitments from either existing Lenders and/or one or more other institutions that qualify as assignees under Section 11.4 (each such institution, an “Additional Lender”) and which are reasonably acceptable to the Borrower, the Administrative Agent and, in the case of any increase in the Aggregate Revolving Commitments, the Issuing Banks and
Swingline Lender and (y) documentation from each existing Lender or Additional Lender providing an additional Revolving Commitment or Incremental Term Loan Commitment evidencing its agreement to provide additional Revolving Commitment or Incremental Term Loan Commitment and/or its acceptance of the obligations under this Agreement in form and substance reasonably acceptable to the Administrative Agent;

(d) the Administrative Agent shall have received all documents (including resolutions of the board of directors of the Loan Parties and opinions of counsel to the Loan Parties, if required to be provided by the Lenders, providing such additional
Revolving Commitments or such Incremental Term Loan Commitments) it may reasonably request relating to the corporate or other necessary authority for such increase in the Aggregate Revolving Commitments or establishment of such Incremental Term Loan and the validity of such increase in the Aggregate Revolving Commitments or establishment of such Incremental Term Loan, and any other documents relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

(e) the Administrative Agent shall have received a Pro Forma Compliance Certificate from a Responsible Officer of the Borrower demonstrating compliance with the financial covenants hereunder after giving effect to such increase in the Aggregate
Revolving Commitments (assuming, for purposes of such demonstration, that all Revolving Commitments, as increased, are fully drawn) or Incremental Term Loan on a Pro Forma Basis in form and substance reasonably satisfactory to the Administrative Agent; provided, that, in the case of an Incremental Term Loan subject to the Incremental Funds Certain Provision, such compliance will be determined at the time the applicable Acquisition Agreement is entered into (but
not more than ninety (90) days prior to the consummation of such Permitted Acquisition);

(f) if any Revolving Loans are outstanding at the time of the increase in the Aggregate Revolving Commitments, the Borrower shall, if applicable, have prepaid one or more existing Revolving Loans (such prepayment to be subject to Section 2.19)
in an amount necessary such that after giving effect to the increase in the Aggregate Revolving Commitments, each Lender will hold its Pro Rata Share of outstanding Revolving Loans;

 

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(g) any increase in the Aggregate Revolving Commitments under this Section 2.23 shall have terms identical to those for the Revolving Loans under this Agreement, except for any fees that may be
payable to the Lenders providing commitments for such increase in the Aggregate Revolving Commitments;

(h) amortization, pricing and use of proceeds applicable to any Incremental Term Loan shall be as set forth in the definitive documentation therefor; provided that (i) any such Incremental Term
Loan shall have a final maturity date that is later than the Revolving Commitment Termination Date and the Maturity Date of each then outstanding Term Loan, (ii) the weighted average life to maturity of such Incremental Term Loan shall be no earlier than the weighted average life to maturity of the Term Loan A or any other then-existing Incremental Term Loan and (iii) with respect to any Incremental Term Loan established on or before the second anniversary of the Closing Date, the all-in yield (including interest
rate margins, any interest rate floors, original issue discount and upfront fees (based on the lesser of a four-year average life to maturity or the remaining life to maturity), but excluding arrangement, structuring and underwriting fees paid or payable to the Arranger or its Affiliates) applicable to such Incremental Term Loan shall not be more than 0.50% higher than the corresponding all-in yield (determined on the same basis) applicable to the Term Loan A or any then outstanding Incremental Term Loan (it
being understood that interest on the Term Loan A and any existing Incremental Term Loan may be increased to the extent necessary to satisfy this requirement);

(i) all conditions precedent to the making of a Loan and/or the issuance of a Letter of Credit set forth in Section 3.2 shall have been satisfied at the time of any increase in the Aggregate Revolving
Commitments (even if there is no Borrowing thereunder on such date);

(j) no Lender (or any successor thereto) shall have any obligation to increase its Revolving Commitment or its other obligations under this Agreement and the other Loan Documents or provide any Incremental Term Loan, and any decision by a Lender
to increase its Revolving Commitment or provide any Incremental Term Loan shall be made in its sole discretion independently from any other Lender;

(k)           neither the Arranger nor any Lender shall have any responsibility for arranging any such increased or additional Revolving Commitments or Incremental Term Loans without their prior written consent and subject to such conditions, including fee arrangements, as they may provide in connection therewith;

 

(l)           prior to any increase in the Aggregate Revolving Commitments or establishment of any Incremental Term Loan pursuant to this Section 2.23, either (i) the Convertible Note Indebtedness shall have been repaid in full (or repaid in full concurrently with any
such increase in the Aggregate Revolving Commitments or such establishment of such Incremental Term Loan) or (ii) the Administrative Agent shall have received reasonably satisfactory evidence that the holders of the Convertible Note Indebtedness have agreed that such increased Aggregate Revolving Commitments or Incremental Term Loan, as applicable, when taken together with the then existing Aggregate Revolving Commitments and the outstanding principal amount of all then existing Term Loans, will constitute Priority
Senior Debt (as defined in the Convertible Note Subordination Agreement), which evidence may be in the form of an amendment to the Convertible Note Subordination Agreement) and is not prohibited under each of the Convertible Note Documents; and

 

 

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(m)           prior to the date of any increase in the Aggregate Revolving Commitments or establishment of an Incremental Term Loan, the Administrative Agent shall have received (and promptly furnished to the Lenders) (i) a completed “life of loan” Federal Emergency Management Standard Flood Hazard Determination
with respect to each Mortgaged Property (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and appropriate Loan Party relating thereto if required) and (ii) proof of flood insurance under the insurance policies required by Section 5.8(d); provided, that, notwithstanding anything to the contrary contained herein, if there are any Mortgaged Properties at the time of any increase or establishment
of any Incremental Term Loan, the Administrative Agent shall have received (and promptly furnished to the Lenders) notice from the Borrower of such increase at least twenty (20) days prior to the date of such increase or establishment of such Incremental Term Loan.

 

Notwithstanding anything to the contrary in the foregoing, if the proceeds of any Incremental Term Loan are being used to finance a Permitted Acquisition made pursuant to an acquisition agreement, binding on the Borrower or any of its Subsidiaries, entered into in advance of the consummation thereof (an “Acquisition
Agreement”), and the Borrower has obtained on or prior to the closing thereof binding commitments of Lenders and/or Additional Lenders to fund such Incremental Term Loan, then the conditions to the funding and incurrence of any such Incremental Term Loan shall be limited as follows: (A) the condition set forth in Section 3.2(b) shall apply only with respect to Specified Representations, (B) the representations and warranties in the Acquisition Agreement
made by or with respect to the Acquired Business that are material to the interests of the Lenders shall be true and correct in all material respects, but only to the extent that the Borrower and/or any of its Subsidiaries, as applicable, has the right to terminate its or their obligations under the Acquisition Agreement or not consummate such Permitted Acquisition as a result of a breach of such representations in such Acquisition Agreement, and (C) the reference to “no Default or Event of Default”
in Section 3.2(a) shall mean (1) the absence of a Default or Event of Default at the date the applicable Acquisition Agreement is executed and delivered and (2) the absence of a Specified Event of Default at the date the applicable Permitted Acquisition is consummated. For purposes of clarity, increases in the Aggregate Revolving Commitments shall not be subject at any time to the Incremental Funds Certain Provision. Nothing in the foregoing constitutes a waiver
of any Default or Event of Default under this Agreement or of any rights or remedies of Lenders and the Administrative Agent under any provision of the Loan Documents. The provisions of this paragraph are collectively referred to in this Agreement as the “Incremental Funds Certain Provision”.

For purposes of determining compliance on a Pro Forma Basis with the financial covenants in Article VI or other ratio requirement under this Agreement, or whether a Default or Event of Default has occurred and is continuing, in each case in connection with the consummation of a Permitted Acquisition using proceeds from an
Incremental Term Loan that qualifies to be subject to the Incremental Funds Certain Provision, the date of determination shall, at the option of the Borrower, be the date of execution of such Acquisition Agreement, and such determination shall be made after giving effect to such Acquisition (and the other transactions to be entered into in connection therewith (including any incurrence of Indebtedness and the use of proceeds thereof)) on a Pro Forma Basis, and, for the avoidance of doubt, if such financial covenants
or other ratio requirement is subsequently breached as a result of fluctuations in the ratio that is subject of such financial covenants or other ratio requirement (including due to fluctuations in Consolidated EBITDA of the Borrower or the EBITDA of the Acquired Business), at or prior to the consummation of such Acquisition (and the other transactions to be entered into in connection therewith), such financial covenants or other ratio requirement will not be deemed to have been breached as a result of such fluctuations
solely for the purpose of determining whether such Acquisition (and the other transactions to be entered into in connection therewith) constitutes a Permitted Acquisition; provided; that (x) if the Borrower elects to have such determination occur at the time of entry into the applicable Acquisition Agreement (and not at the time of consummation of the Acquisition), (I) the
Incremental Term Loan to be incurred shall be deemed incurred at the time of such election (unless the applicable Acquisition Agreement is terminated without actually consummating the applicable Permitted Acquisition (in which case such Acquisition and related Incremental Term Loan will not be treated as having occurred)) and outstanding thereafter for purposes of calculating compliance, on a Pro Forma Basis, with any applicable financial covenants or other ratio requirement in this Agreement (even if unrelated
to determining whether such Acquisition is a Permitted Acquisition) and (II) such Permitted Acquisition must close within ninety (90) days of the signing of the applicable Acquisition Agreement and (y) EBITDA of the Acquired Business shall be disregarded for all purposes under this Agreement other than determining whether such Acquisition is a Permitted Acquisition until the consummation of such Permitted Acquisition.

 

 

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Section 2.24 Mitigation of Obligations

. If any Lender requests compensation under Section 2.18, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.20, then such Lender shall use commercially 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 sole judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable under Section 2.18 or Section 2.20, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with such designation or assignment.

Section 2.25 Replacement of Lenders

. If (a) any Lender requests compensation under Section 2.18, (b) the Borrower is required to pay any additional amount to any Lender or any Governmental Authority of the account of any Lender pursuant to Section 2.20, (c) any Lender notifies the Borrower and Administrative Agent that it is unable to fund Eurodollar Loans or LIBOR Index Rate Loans pursuant to Sections 2.16 or 2.17,
(d) a Lender (a “Non-Consenting Lender”) does not consent to a proposed change, waiver, discharge or termination with respect to any Loan Document that has been approved by the Required Lenders as provided in Section 11.2(b) but requires unanimous consent of all Lender or all the Lenders directly affected thereby (as applicable) or (e) if any Lender is a Defaulting Lender, then the Borrower may, at its
sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions set forth in Section 11.4(b)) all its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender); provided,
that (i) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal amount of all Loans owed to it, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (in the case of such outstanding principal and accrued interest) and from the Borrower (in the case of all other amounts), (iii) in the case
of a claim for compensation under Section 2.18 or payments required to be made pursuant to Section 2.20, such assignment will result in a reduction in such compensation or payments, (iv) such assignment does not conflict with applicable Law and (v) in the case of any such assignment resulting from a Non-Consenting Lender’s failure to consent to a proposed change, waiver, discharge or termination with respect
to any Loan Document, the applicable assignee consents to the proposed change, waiver, discharge or termination; provided that the failure by such Non-Consenting Lender to execute and deliver an Assignment and Acceptance shall not impair the validity of the removal of such Non-Consenting Lender and the mandatory assignment of such Non-Consenting Lender’s Commitments and outstanding Loans pursuant to this Section 2.25 shall
nevertheless be effective without the execution by such Non-Consenting Lender of an Assignment and Acceptance. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

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Section 2.26 Reallocation and Cash Collateralization of Defaulting Lender Commitment

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(a) If a Revolving Lender becomes, and during the period it remains, a Defaulting Lender, the following provisions shall apply, notwithstanding anything to the contrary in this Agreement:

(i) the LC Exposure and Swingline Exposure of such Defaulting Lender will, subject to the limitation in the first proviso below, automatically be reallocated (effective on the day such Revolving Lender becomes a Defaulting Lender) among the
Non-Defaulting Lenders pro rata in accordance with their respective Revolving Commitments (calculated as if the Defaulting Lender’s Revolving Commitment was reduced to zero and each Non-Defaulting Lender’s Revolving Commitment had been increased proportionately); provided that (a) the sum of each Non-Defaulting Lender’s total Revolving Credit Exposure
may not in any event exceed the Revolving Commitment of such Non-Defaulting Lender as in effect at the time of such reallocation and (b) neither such reallocation nor any payment by a Non-Defaulting Lender pursuant thereto will constitute a waiver or release of any claim the Borrower, the Administrative Agent, any Issuing Bank, the Swingline Lender or any other Lender may have against such Defaulting Lender or cause such Defaulting Lender to be a Non-Defaulting Lender; and

(ii) to the extent that any portion (the “unreallocated portion”) of the LC Exposure and Swingline Exposure of any Defaulting Lender cannot be reallocated pursuant to clause
(i) for any reason the Borrower will, not later than two (2) Business Days after demand by the Administrative Agent (at the direction of each applicable Issuing Bank and/or the Swingline Lender), (A) Cash Collateralize the obligations of the Defaulting Lender to each applicable Issuing Bank or Swingline Lender in respect of such LC Exposure or Swingline Exposure, as the case may be, in an amount at least equal to the aggregate amount of the unreallocated portion of the LC Exposure and Swingline Exposure
of such Defaulting Lender, (B) in the case of such Swingline Exposure, prepay and/or Cash Collateralize in full the unreallocated portion thereof, or (C) make other arrangements satisfactory to the Administrative Agent, each applicable Issuing Bank and the Swingline Lender in their sole discretion to protect them against the risk of non-payment by such Defaulting Lender.

(b) If the Borrower, the Administrative Agent, each of the Issuing Banks and the Swingline Lender agree in writing in their discretion that any Defaulting Lender has ceased to be 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, the LC Exposure and the Swingline Exposure of the other Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment, and such Lender will purchase at par such portion of outstanding Revolving Loans of the other Lenders and/or make such other adjustments as the Administrative Agent may determine to be necessary to cause the Revolving Credit Exposure of the Lenders
to be on a pro rata basis in accordance with their respective Revolving Commitments, whereupon such Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender (and such Revolving Credit Exposure of each Lender will automatically be adjusted on a prospective basis to reflect the foregoing). If any cash collateral has been posted with respect to the LC Exposure or Swingline Exposure of such Defaulting Lender, the Administrative Agent will promptly return such cash collateral to the Borrower;
provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such 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 Non-Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender’s having been a Defaulting Lender.

 

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ARTICLE III

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

Section 3.1 Conditions To Effectiveness

. This Agreement and the obligations of the Lenders (including the Swingline Lender) to make Loans and the obligation of the applicable Issuing Bank to issue any Letter of Credit hereunder shall be effective upon satisfaction of the following conditions precedent in each case in form and substance reasonably satisfactory to the Administrative Agent and each Lender:

(a) Loan Documents. Receipt by the Administrative Agent of a counterpart of this Agreement and the other Loan Documents signed by or on behalf of each party hereto or thereto or written evidence
satisfactory to the Administrative Agent (which may include telecopy transmission of such signed signature page) that such party has signed a counterpart of this Agreement and the other Loan Documents to which such party is a party.

(b) Organization Documents; Resolutions and Certificates. Receipt by the Administrative Agent of:

(i) a certificate of the Secretary or Assistant Secretary of each Loan Party, attaching and certifying copies of such Loan Party’s Organization Documents and resolutions of its board of directors (or equivalent governing body), authorizing
the execution, delivery and performance of the Loan Documents to which it is a party and certifying the name, title and true signature of each officer of such Loan Party executing the Loan Documents to which it is a party; and

(ii) certified copies of the articles or certificate of incorporation, certificate of organization or limited partnership, or other registered organizational documents of each Loan Party, together with certificates of good standing or existence,
as may be available from the Secretary of State of the jurisdiction of organization of such Loan Party.

(c) Opinions of Counsel. Receipt by the Administrative Agent of written opinions of counsel to the Loan Parties addressed to the Administrative Agent, the Issuing Banks and each of the Lenders,
and covering such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated therein in form and substance satisfactory to the Administrative Agent.

(d) Officer’s Closing Certificate. Receipt by the Administrative Agent of a certificate, dated the Closing Date and signed by a Responsible Officer of the Borrower, certifying that after giving
effect to the transactions contemplated hereby on the Closing Date, the conditions specified in Section 3.1(f) and Sections 3.2(a) and (b) are satisfied as of the Closing Date.

(e) Sources and Uses. Receipt by the Administrative Agent of a duly executed funds disbursement agreement, together with a report setting forth the sources and uses of the proceeds hereof.

 

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(f) Required Consents and Approvals. The Loan Parties shall have received all consents (including Hart-Scott-Rodino clearance, if necessary, and other necessary governmental consents), approvals,
authorizations, registrations and filings and orders required or advisable to be made or obtained under any applicable Law, the Organization Documents of any Loan Party or by any Contractual Obligation of any Loan Party, in connection with the execution, delivery, performance, validity and enforceability of the Loan Documents or any of the transactions contemplated thereby, and such consents, approvals, authorizations, registrations, filings and orders shall be in full force and effect and all applicable waiting
periods shall have expired, and no investigation or inquiry by any Governmental Authority regarding the Loan Documents or any other transaction being financed with the proceeds thereof shall be ongoing.

(g) Solvency. Receipt by the Administrative Agent of a certificate, dated the Closing Date and signed by the chief financial officer of the Borrower, on behalf of itself and each of its Subsidiaries,
confirming that (x) the Borrower is Solvent and (y) the Loan Parties on a consolidated basis are Solvent, in each case before and after giving effect to the funding of the Term Loan A and any Revolving Loans on the Closing Date and the consummation of the other transactions contemplated herein.

(h) Insurance. Receipt by the Administrative Agent of certificates of insurance issued on behalf of insurers of the Loan Parties, describing in reasonable detail the types and amounts of insurance
(property and liability) maintained by the Loan Parties, and endorsements naming the Administrative Agent as additional insured on liability policies and lender’s loss payee on property and casualty policies.

(i) Personal Property Collateral. Receipt by the Administrative Agent of the following:

(i) Searches of Uniform Commercial Code filings in the jurisdiction of formation of each Loan Party.

(ii) Uniform Commercial Code financing statements for each appropriate jurisdiction as is necessary to perfect the Administrative Agent’s security interest in the Collateral.

(iii) All certificates evidencing any certificated Capital Stock pledged to the Administrative Agent pursuant to the Security Agreement or any other pledge agreement, together with duly executed in blank, undated stock powers attached thereto
(unless, with respect to the pledged Capital Stock of any Material Foreign Subsidiary, such stock powers are deemed unnecessary by the Administrative Agent in its reasonable discretion under the Law of the jurisdiction of organization of such Person).

(iv) Searches of ownership of, and Liens on, United States registered intellectual property owned by each Loan Party in the appropriate governmental offices.

(v) Duly executed notices of grant of security interest in the form required by any security agreement as are necessary, in the Administrative Agent’s reasonable discretion, to perfect the Administrative Agent’s security interest
in the United States registered intellectual property owned by the Loan Parties (if and to the extent perfection may be achieved in the United States Patent and Trademark Office or the United States Copyright Office by such filings).

 

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(j) Refinancing of Existing Indebtedness. Receipt by the Administrative Agent of copies of duly executed payoff letters with respect to the Existing Credit Agreement and the Second Lien Credit Agreement
in form and substance reasonably satisfactory to Administrative Agent, executed by each of the Borrower’s existing lenders or the agent thereof, together with (i) evidence of payment in full of Indebtedness under the Existing Credit Agreement and the Second Lien Credit Agreement, (ii) UCC-3 or other appropriate termination statements, in form and substance satisfactory to Administrative Agent, releasing all liens of any existing lenders or agent under the Existing Credit Agreement and the Second Lien Credit
Agreement upon any of the personal property of the Borrower and its Subsidiaries, (iii) cancellations and releases, in form and substance satisfactory to the Administrative Agent, releasing all liens of any existing lenders or agent under the Existing Credit Agreement or the Second Lien Credit Agreement upon any of the real property of the Borrower and its Subsidiaries, and (iv) any other releases, terminations or other documents reasonably required by the Administrative Agent to evidence the payoff of such Indebtedness.

(k) Patriot Act; Anti-Money Laundering Laws. The provision by the Loan Parties of all documentation and other information that the Administrative Agent or such Lender requests in order to comply
with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act.

(l) Financial Statements. Receipt by the Administrative Agent of (i) the consolidated audited financial statements of the Borrower and its Subsidiaries for the Fiscal Years ended 2013, 2014 and
2015, including balance sheets, income statements and cash flow statements audited by independent public accountants of recognized national standing and prepared in conformity with GAAP, (ii) Interim Financial Statements and (iii) five-year financial projections of the Borrower and its Subsidiaries.

(m) Fees and Expenses. Receipt by the Administrative Agent of payment of all fees, expenses and other amounts due and payable on or prior to the Closing Date, including without limitation reimbursement
or payment of all out-of-pocket expenses of the Administrative Agent and the Arranger (including reasonable fees, charges and disbursements of counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower hereunder, under any other Loan Document and under any agreement with the Administrative Agent or the Arranger.

Without limiting the generality of the provisions of this Section 3.1, for purposes of determining compliance with the conditions specified in this Section 3.1, 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 Closing Date specifying its objection thereto.

Section 3.2 Each Credit Event

. The obligation of each Lender to make a Loan on the occasion of any Borrowing and of each of the Issuing Banks to issue, amend, renew or extend any Letter of Credit is subject to the satisfaction of the following conditions, in each case, subject to the Incremental Funds Certain Provision, as applicable:

(a) at the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default shall exist;

 

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(b) at the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, all representations and warranties of each Loan Party set forth in the Loan Documents
shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified
by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects) as of such earlier date;

(c) the Borrower shall have delivered the required Notice of Borrowing; and

(d) if any Revolving Lender is a Defaulting Lender at the time of any request by the Borrower of a Borrowing of a Swingline Loan or the issuance, amendment, renewal or extension of a Letter of Credit, as applicable, set forth in this Section
3.2, neither of the Issuing Banks will be required to issue, amend, renew or increase any Letter of Credit and the Swingline Lender will not be required to make any Swingline Loans, unless they are satisfied that 100% of the related LC Exposure and Swingline Exposure is fully covered or eliminated pursuant to Section 2.26.

Each Borrowing and each issuance, amendment, extension or renewal of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in clauses (a) and (b) of this Section
3.2.

Section 3.3 Delivery of Documents

. All of the Loan Documents, certificates, legal opinions and other documents and papers referred to in this Article III, unless otherwise specified, shall be delivered to the Administrative Agent for the account of each of the Lenders and in sufficient counterparts or copies for each of the Lenders and shall be in form and substance satisfactory in all respects to the Administrative Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

Each Loan Party represents and warrants to the Administrative Agent and each Lender as follows:

Section 4.1 Existence; Power

. The Borrower and each of its Subsidiaries (a) is duly organized, validly existing and in good standing as a corporation, partnership or limited liability company, as applicable, under the Laws of the jurisdiction of its organization, (b) has all requisite power and authority to carry on its business as now conducted, and (c) is duly qualified to do business, and is in good standing, in each jurisdiction where such qualification is required, except where a failure to be so qualified could not reasonably
be expected to result in a Material Adverse Effect.

 

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Section 4.2 Organizational Power; Authorization

. The execution, delivery and performance by each Loan Party of the Loan Documents to which it is a party are within such Loan Party’s organizational powers and have been duly authorized by all necessary organizational, and if required, shareholder, partner or member, action. This Agreement has been duly executed and delivered by each Loan Party, and constitutes, and each other Loan Document to which any Loan Party is party, when executed and delivered by such Loan Party, will constitute a legal, valid
and binding obligation of each Loan Party, enforceable against such Loan Party party thereto, in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

Section 4.3 Governmental Approvals; No Conflicts

. The execution, delivery and performance by each Loan Party of this Agreement, and by each Loan Party of the other Loan Documents to which it is a party (a) do not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except (i) those as have been obtained or made and are in full force and effect and (ii) filings necessary to perfect and maintain the perfection of the Liens created under the Collateral Documents, (b) will not violate the Organization
Documents of any Loan Party or any Law applicable to the Borrower or any of its Subsidiaries or any judgment, order or ruling of any Governmental Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument binding on the Borrower or any of its Subsidiaries or any of its assets or give rise to a right thereunder to require any payment to be made by the Borrower or any of its Subsidiaries and (d) will not result in the creation or imposition of any Lien on any asset
of the Borrower or any of its Subsidiaries, except Liens (if any) created under the Loan Documents.

Section 4.4 Financial Statements

. The Borrower has furnished to the Lenders (a) the Audited Financial Statements and (b) the Interim Financial Statements. Such financial statements fairly present in all material respects the consolidated financial condition of the Borrower and its Subsidiaries as of such dates and the consolidated results of operations for such periods in conformity with GAAP consistently applied, subject to year-end audit adjustments and the absence of footnotes in the case of the statements referred to in clause
(b). The financial statements delivered pursuant to Section 5.1(a) and (b) have been prepared in accordance with GAAP and present fairly (on the basis disclosed in the footnotes to such financial statements) the consolidated financial condition, results of operations and cash flows of the Borrower and its Subsidiaries as of the dates thereof and for the periods covered thereby. Since the date of the Audited
Financial Statements, there have been no changes with respect to the Borrower and its Subsidiaries which have had or could reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect.

Section 4.5 Litigation and Environmental Matters

.

(a) No litigation, investigation or proceeding of or before any arbitrators or Governmental Authorities is pending against or, to the knowledge of any Responsible Officer of the Loan Parties, threatened against or affecting the Borrower or any
of its Subsidiaries or any employee or contractor of the Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse determination that could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or (ii) which in any manner draws into question the validity or enforceability of this Agreement or any other Loan Document.

(b) Neither the Borrower nor any of its Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law or Healthcare Law, (ii)
has become subject to any Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability.

Section 4.6 Compliance with Laws and Agreements

. The Borrower and each Subsidiary is in compliance with (a) all Laws and all judgments, decrees and orders of any Governmental Authority and (b) all indentures, agreements or other instruments binding upon it or its properties, except where non-compliance, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

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Section 4.7 No Default

.

(a)           Neither the Borrower 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.

 

Section 4.8 Investment Company Act, Etc.

. Neither the Borrower nor any of its Subsidiaries is (a) an “investment company” or is “controlled” by an “investment company”, as such terms are defined in, or subject to regulation under, the Investment Company Act of 1940, as amended, or (b) otherwise subject to any other regulatory scheme limiting its ability to incur debt or requiring any approval or consent from or registration or filing with, any Governmental Authority
in connection therewith.

Section 4.9 Taxes

. The Borrower and its Subsidiaries have timely filed or caused to be filed all federal, state income and other material tax returns required to be filed by them, and have paid all federal, state income and other material taxes, assessments made against it or its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority, except where the same are currently being contested in good faith by appropriate proceedings and for which the Borrower or such
Subsidiary, as the case may be, has set aside on its books adequate reserves therefor in accordance with GAAP. The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of such taxes are adequate in accordance with GAAP, and no tax liabilities that could be materially in excess of the amount so provided are anticipated.

Section 4.10 Margin Regulations

. None of the proceeds of any of the Loans or Letters of Credit will be used, directly or indirectly, for “purchasing” or “carrying” any “margin stock” with the respective meanings of each of such terms under Regulation U or for any purpose that violates the provisions of the Regulation T, U or X. Neither the Borrower nor its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying
“margin stock.”

Section 4.11 ERISA

. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair
market value of the assets of such Plan, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans.

Section 4.12 Ownership of Property

.

(a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests in, all of its real and personal property material to the operation of its business, including all such properties reflected in the Audited Financial
Statements or the most recent audited consolidated balance sheet of the Borrower delivered pursuant to Section 5.1(a) or purported to have been acquired by the Borrower or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens not permitted by this Agreement. All leases that individually or in the aggregate are material to the business or operations of the Borrower and its
Subsidiaries are valid and subsisting and are in full force.

 

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(b) Each of the Borrower and its Subsidiaries owns, or is licensed, or otherwise has the right, to use, all patents, trademarks, service marks, trade names, copyrights and other intellectual property material to its business, and the use thereof
by the Borrower and its Subsidiaries does not infringe in any material respect on the rights of any other Person.

(c) The properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies which are not Affiliates of the Borrower, 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 Borrower or any applicable Subsidiary operates.

Section 4.13 Disclosure

. Each Loan Party has disclosed to the Lenders all agreements, instruments, and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to any of them, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. Neither the Information Memorandum nor any of the reports (including without limitation all reports that any Loan Party is required to file with the SEC), financial statements, certificates or other
information furnished by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the negotiation or syndication of this Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or supplemented by any other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, taken as a whole, in light of the circumstances under which they were made, not misleading; provided,
that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.

Section 4.14 Labor Relations

. There are no strikes, lockouts or other material labor disputes pending against the Borrower or any of its Subsidiaries, or, to the knowledge of a Responsible Officer of any Loan Party, threatened against the Borrower or any of its Subsidiaries, and no significant unfair labor practice, charges or grievances are pending against the Borrower or any of its Subsidiaries, or to the knowledge of a Responsible Officer of any Loan Party, threatened against any of them before any Governmental Authority that would
reasonably be expected to result, either individually or in the aggregate, a Material Adverse Effect. All payments due from the Borrower or any of its Subsidiaries pursuant to the provisions of any collective bargaining agreement have been paid or accrued as a liability on the books of the Borrower or any such Subsidiary, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

Section 4.15 Subsidiaries

. Schedule 4.15 sets forth (a) the name of, the ownership interest of each Loan Party in, the jurisdiction of incorporation or organization of, and the type of, each Subsidiary and identifies each Subsidiary that is a Loan Party, in each case as of the Closing Date and (b) the authorized Capital Stock of the Borrower and each of its Subsidiaries as of the Closing Date. All issued and outstanding Capital Stock of the Borrower and each of its Subsidiaries is duly
authorized and validly issued, fully paid, non-assessable, as applicable, and free and clear of all Liens other than those created under the Loan Documents. All such securities were issued in compliance with all applicable state and federal Laws concerning the issuance of securities. As of the Closing Date, all of the issued and outstanding Capital Stock of the Borrower and each of the Subsidiaries is owned by the Persons and in the amounts set forth on Schedule 4.15.
Except as set forth on Schedule 4.15, there are no pre-emptive or other outstanding rights, options, warrants, conversion rights or other similar agreements or understandings for the purchase or acquisition of any Capital Stock of the Borrower or any of its Subsidiaries.

 

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Section 4.16 Solvency

. After giving effect to the execution and delivery of the Loan Documents and the making of the Loans under this Agreement, the Borrower is Solvent and the Loan Parties are Solvent on a consolidated basis.

Section 4.17 Business Locations; Taxpayer Identification Number

. Set forth on Schedule 4.17-1 is a list of all real property located in the United States that is owned or leased by any Loan Party as of the Closing Date (identifying whether such real property is owned or leased and which Loan Party owns or leases such real property). Set forth on Schedule 4.17-2 is the chief executive office, U.S. tax payer identification number and organizational identification number of each
Loan Party as of the Closing Date. The exact legal name and state of organization of each Loan Party as of the Closing Date is as set forth on the signature pages hereto. Except as set forth on Schedule 4.17-3, no Loan Party has during the five years preceding the Closing Date (i) changed its legal name, (ii) changed its state of formation, or (iii) been party to a merger, consolidation or other change in structure.

Section 4.18 Material Agreements

. As of the Closing Date, all Material Agreements of the Borrower and its Subsidiaries are described on Schedule 4.18, and each such Material Agreement is in full force and effect. The Borrower does not have any knowledge of any pending amendments or threatened termination of any of the Material Agreements. As of the Closing Date, the Borrower has delivered to the Administrative Agent a true, complete and correct copy of each Material Agreement (including all
schedules, exhibits, amendments, supplements, modifications, assignments and all other documents delivered pursuant thereto or in connection therewith).

Section 4.19 Anti-Corruption Laws and Sanctions

. None of the Borrower or any of its Subsidiaries or, to the knowledge of the Borrower or such Subsidiary, any of their respective directors, officers, employees or agents acting or benefitting in any capacity in connection with this Agreement, (a) is a Person that is owned or controlled by a Sanctioned Person, (b) is a Sanctioned Person or (c) is located, organized or resident in a Sanctioned Country. The Borrower and its Subsidiaries have conducted their businesses in compliance with Anti-Corruption Laws
and applicable Sanctions and have instituted and maintain policies and procedures designed to promote and achieve compliance with Anti-Corruption Laws and applicable Sanctions. No Borrowing or Letter of Credit, use of proceeds or other transactions will violate Anti-Corruption Laws or applicable Sanctions.

Section 4.20 Subordination of Subordinated Debt

. This Agreement, and all amendments, modifications, extensions, renewals, refinancings and refundings hereof, constitute the “Senior Credit Agreement” (or similar or analogous term) within the meaning of the applicable Subordinated Debt Document; and the Revolving Loans, the Term Loans and all other Obligations of the Borrower to the Lenders and the Administrative Agent under this Agreement and all other Loan Documents, and all amendments, modifications, extensions, renewals, refinancings or
refundings of any of the foregoing, constitute “Senior Indebtedness” (or similar or analogous term) of the Borrower within the meaning of the applicable Subordinated Debt Document, and the holders thereof from time to time shall be entitled to all of the rights of a holder of “Senior Indebtedness” (or similar or analogous term) pursuant to the applicable Subordinated Debt Document.

Section 4.21 No EEA Financial Institutions

. No Loan Party is an EEA Financial Institution.

Section 4.22 Perfection of Security Interests in the Collateral.

 

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(a)           The Security Agreement is effective to create in favor of the Administrative Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the Collateral identified therein, except to the extent the enforceability thereof may
be limited by applicable Debtor Relief Laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law), and the Security Agreement shall create a fully perfected Lien on, and security interest in, all right, title and interest of the obligors thereunder in such Collateral, in each case prior and superior in right to any other Lien (other than Permitted Encumbrances) (i) with respect to any such Collateral that is a “security”
(as such term is defined in the UCC) and is evidenced by a certificate, when such Collateral is delivered to the Administrative Agent with duly executed stock powers with respect thereto, (ii) with respect to any such Collateral that is a “security” (as such term is defined in the UCC) but is not evidenced by a certificate, when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor or when “control” (as
such term is defined in the UCC) is established by the Administrative Agent over such interests in accordance with the provision of Section 8-106 of the UCC, or any successor provision, and (iii) with respect to any such Collateral that is not a “security” (as such term is defined in the UCC), when UCC financing statements in appropriate form are filed in the appropriate filing offices in the jurisdiction of organization of the pledgor (to the extent such security interest can be perfected by
filing under the UCC).

(b)           Each of the Mortgages, if any, is effective to create in favor of the Administrative Agent, for the ratable benefit of the holders of the Obligations, a legal, valid and enforceable security interest in the real property and improvements identified therein in conformity with applicable
Laws, except to the extent the enforceability thereof may be limited by applicable Debtor Relief Laws affecting creditors’ rights generally and by equitable principles of law (regardless of whether enforcement is sought in equity or at law) and, when the Mortgages and UCC financing statements in appropriate form are duly recorded at the locations identified in the Mortgages, and recording or similar taxes, if any, are paid, the Mortgages shall constitute a legal, valid and enforceable Lien on, and security
interest in, all right, title and interest of the grantors thereunder in such real property and improvements, in each case prior and superior in right to any other Lien (other than Permitted Encumbrances).

Section 4.23 HIPAA Compliance. To the extent that and for so long as (i) the Borrower or any of its Subsidiaries is a “covered entity” and/or a “business associate” as defined
in 45 C.F.R. § 160.103, (ii) the Borrower or any of its Subsidiaries and/or their business and operations are subject to or covered by HIPAA, and/or (iii) the Borrower or any of its Subsidiaries sponsors any “group health plans” as defined in 45 C.F.R. § 160.103, the Borrower and each such Subsidiary has implemented, or will implement on or before any applicable compliance date, those provisions of its HIPAA compliance plan necessary to ensure that the Loan Parties are HIPAA Compliant, except
where non-compliance, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. For purposes of this Agreement, “HIPAA Compliant” shall mean that each Loan Party and each applicable Subsidiary (i) is in full compliance with any and all of the applicable requirements of HIPAA, as amended from time to time and (ii) is not subject to, and could not reasonably be expected to become subject to, any civil
or criminal penalty or any investigation, claim or process as the result of any breach or other failure to comply with HIPAA.

 

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Section 4.24 Compliance With Health Care Laws. Without limiting the generality of any other provision that is set forth herein (including, without limitation, any covenant, representation or warranty),
the Borrower and each of its Subsidiaries, and each of the Borrower’s and each Subsidiary’s employees and contractors in the exercise of their respective duties on behalf of the Borrower, any such Subsidiary or any facilities where such licensed employees and contractors perform services on behalf of customers of the Borrower or any Subsidiary, is in compliance in all respects with all applicable statutes, laws, ordinances, rules and regulations of any federal, state or local governmental authority
with respect to regulatory matters primarily relating to patient healthcare (collectively, “Healthcare Laws”), except where non-compliance, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and each of its Subsidiaries has maintained in all material respects all records required to be maintained by the Healthcare Laws and, to the knowledge of the Loan Parties, there are no presently
existing circumstances which would result or likely would result in violations of the Healthcare Laws, except where such violations, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. The Borrower and its Subsidiaries and, to the Loan Parties’ knowledge, the owners of other businesses managed by the Borrower or its Subsidiaries have such permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authorities
as are necessary under applicable Healthcare Laws to own their respective properties and to conduct their respective business (including without limitation such permits as are required under such federal, state and other health care laws, and under licensure laws and such insurance laws and regulations, as are applicable thereto), except where the failure to have such permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authorities, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. In addition, each such employee and contractor holds, without restriction, such permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authorities as are necessary under applicable Healthcare Laws to perform services on behalf of any customer of the Borrower or any Subsidiary in the exercise of such employees’ and contractors’ respective duties on behalf of the Borrower or any such Subsidiary,
except where the failure to have such permits, licenses, franchises, certificates and other approvals or authorizations of Governmental Authorities, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. Further, each such employee and contractor, if required by the applicable facility where such employee or contractor performs services on behalf of the Borrower or any Subsidiary, holds unrestricted medical staff privileges to perform professional services at
such facility, except where such failure to maintain medical staff privileges could not reasonably be expected to result in a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries are enrolled in, bill to or receive any reimbursement from third party payors, including without limitation, Medicare, Medicaid, or any other federal, state, or other government or commercial health care program. Neither the Borrower, any Subsidiary, or any of their respective employees or independent contractors:
(i) have been convicted of a criminal offense related to healthcare (unless such individual has been officially reinstated into the federal healthcare programs by the U.S. Department of Health and Human Services Office of Inspector General (“OIG”); (ii) are currently under sanction, exclusion or investigation (civil or criminal) by any federal or state enforcement, regulatory, administrative or licensing agency or is ineligible for federal or state program participation; or (iii) are currently listed
on the General Services Administration List of Parties Excluded from the Federal Procurement and Non-Procurement Programs or the OIG List of Excluded Individuals/Entities.

Section 4.25 Patriot Act

. No Loan Party nor any of its Subsidiaries is an “enemy” or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 et seq.), as amended. To its knowledge, no Loan Party or any of its Subsidiaries is in violation of (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto or (c) the Patriot Act. No Loan Party or any of its Subsidiaries (i) is a “blocked person” described in Section 1 of the Anti-Terrorism Order or (ii) to the best of its knowledge, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

ARTICLE V

AFFIRMATIVE COVENANTS

Each Loan Party covenants and agrees that so long as any Lender has a Commitment hereunder, any Obligation remains unpaid or outstanding, or any Letter of Credit shall remain outstanding, such Loan Party shall and shall cause each Subsidiary to:

 

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Section 5.1 Financial Statements and Other Information

. Deliver to the Administrative Agent, for further distribution to the Lenders:

(a) as soon as available and in any event within ninety (90) days after the end of each Fiscal Year, a copy of the annual audited report for such Fiscal Year for the Borrower and its Subsidiaries, containing a consolidated balance sheet of the
Borrower and its Subsidiaries as of the end of such Fiscal Year and the related consolidated statements of income or operations, changes in stockholders’ equity and cash flows (together with all footnotes thereto) of the Borrower and its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal Year, all in reasonable detail and reported on by independent public accountants of nationally recognized standing (without a “going concern”
or like qualification, exception or explanation and without any qualification or exception as to scope of such audit, except for qualifications arising solely as a result of upcoming maturities of Loans under this Agreement) to the effect that such financial statements present fairly in all material respects the financial condition and the results of operations of the Borrower and its Subsidiaries for such Fiscal Year on a consolidated basis in accordance with GAAP and that the examination by such accountants
in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards;

(b) as soon as available and in any event within forty-five (45) days after the end of each of the first three Fiscal Quarters, an unaudited consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Quarter
and the related unaudited consolidated statements of income or operations, changes in stockholders’ equity and cash flows of the Borrower and its Subsidiaries for such Fiscal Quarter and the then elapsed portion of such Fiscal Year, setting forth in each case in comparative form the figures for the corresponding quarter and the corresponding portion of Borrower’s previous Fiscal Year, all in reasonable detail and prepared in accordance with GAAP, such consolidated statements to be certified by the
chief executive officer, chief financial officer, treasurer or controller of the Borrower as presenting fairly in all material respects the financial condition, results of operations, stockholders’ equity and cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes;

(c) concurrently with the delivery of the financial statements referred to in clauses (a) and (b) above, a Compliance Certificate signed by the principal
executive officer or the principal financial officer of the Borrower (i) certifying as to whether there exists a Default or Event of Default on the date of such certificate, and if a Default or an Event of Default then exists, (ii) setting forth in reasonable detail calculations demonstrating compliance with the financial covenants set forth in Article VI, (iii) certifying that as of the date thereof, all representations and warranties of each Loan Party set forth
in the Loan Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties are true and correct in all respects), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (other than those representations and warranties that are expressly
qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects) as of such earlier date, (iv) stating whether any change in GAAP or the application thereof has occurred since the date of the Audited Financial Statements, and if any change has occurred, specifying the effect of such change on the financial statements accompanying such Compliance Certificate and (v) specifying any change in the identity of the Subsidiaries
as of the end of such Fiscal Year or Fiscal Quarter from the Subsidiaries identified to the Lenders on the Closing Date or as of the most recent Fiscal Year or Fiscal Quarter, as the case may be;

 

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(d) concurrently with the delivery of the financial statements referred to in clause (a) above, a negative assurance letter from the accounting firm that reported on such financial statements
stating whether they obtained any knowledge during the course of their audit of such financial statements of any Default or Event of Default arising from a breach of the financial covenants set forth in Article VI in so far as they relate to accounting matters (which negative assurance letter may be limited to the extent required by accounting and auditing rules, standards or guidelines);

(e) as soon as available and in any event within forty-five (45) days after the end of the Fiscal Year, a pro forma budget for the succeeding Fiscal Year, containing an income statement, balance sheet and statement of cash flow of the Borrower
and its Subsidiaries on a quarterly basis for such succeeding Fiscal Year;

(f) promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed with the SEC, or with any national securities exchange, or distributed by the Borrower to its shareholders
generally, as the case may be; and

(g) promptly following any request therefor, such other information regarding the results of operations, business affairs and financial condition of the Borrower or any Subsidiary as the Administrative Agent or any Lender may reasonably request.

If at any time the Borrower is required to file periodic reports under Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended, Borrower may satisfy its obligation to deliver the financial statements referred to in clauses (a) and (b) above
by delivering such financial statements by electronic mail to such e-mail addresses as the Administrative Agent and Lenders shall have provided to Borrower from time to time.

The Borrower hereby acknowledges that (A) the Administrative Agent and/or an Affiliate thereof may, but shall not be obligated to, make available to the Lenders and the Issuing Banks materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”)
by posting the Borrower Materials on IntraLinks, Syndtrak, ClearPar, Debt Domain or a substantially similar electronic transmission system (the “Platform”) and (B) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing,
and who may be engaged in investment and other market-related activities with respect to such Persons’ securities. The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (1) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof;
(2) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, any Affiliate thereof, the Arranger, the Issuing Banks 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 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 subject to the confidentiality provisions of Section 11.11, they shall be treated as set forth in Section 11.11); (3) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (4) the Administrative Agent and any Affiliate thereof
and the Arranger 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 Side Information.”

 

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Section 5.2 Notices of Material Events

. Furnish to the Administrative Agent (for further distribution to the Lenders) prompt written notice of the following:

(a) the occurrence of any Default or Event of Default;

(b) the filing or commencement of, or any material development in, any action, suit or proceeding by or before any arbitrator or Governmental Authority against or, to the knowledge of the Borrower, affecting the Borrower or any Subsidiary which,
if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

(c) the occurrence of any event or any other development by which the Borrower or any of its Subsidiaries (i) fails to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under
any Environmental Law, (ii) becomes subject to any Environmental Liability, (iii) receives notice of any claim with respect to any Environmental Liability, or (iv) becomes aware of any basis for any Environmental Liability and in each of the preceding clauses, which individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect;

(d) the occurrence of any ERISA Event that alone, or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Borrower and its Subsidiaries in an aggregate amount exceeding $500,000;

(e) the occurrence of any default or event of default, or the receipt by Borrower or any of its Subsidiaries of any written notice of an alleged default or event of default with respect to the Subordinated Debt Documents, the Convertible Note
Documents or any Material Indebtedness of the Borrower or any of its Subsidiaries;

(f) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

(g) promptly and in any event at least thirty (30) days prior thereto, notice of any change (i) in any Loan Party’s legal name, (ii) in any Loan Party’s chief executive office, its principal place of business, any office in which
it maintains books or records or any office or facility at which Collateral owned by it is located (including the establishment of any such new office or facility), (iii) in any Loan Party’s identity or legal structure, (iv) in any Loan Party’s federal taxpayer identification number or organizational number or (v) in any Loan Party’s jurisdiction of organization.

Each notice delivered under this Section 5.2 shall be accompanied by a written statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

Section 5.3 Existence; Conduct of Business

.

(a) Do or cause to be done all things reasonably necessary to preserve, renew and maintain in full force and effect its legal existence and its respective rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks and
trade names material to the conduct of its business; provided, that nothing in this Section 5.3 shall prohibit any merger, consolidation, liquidation or dissolution permitted under Section 7.3; and

 

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(b) Engage in the business of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related or reasonably ancillary thereto.

Section 5.4 Compliance with Laws, Etc

. (a) Comply with all laws, rules, regulations and requirements of any Governmental Authority applicable to its business and properties, including, without limitation, all Environmental Laws, Healthcare Laws, ERISA and OSHA, except where the failure to do so, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, and (b) maintain in effect and enforce policies and procedures reasonably designed to promote
and achieve compliance by the Loan Parties, their Subsidiaries and their respective directors, officers, employees and agents which are acting or benefitting in any capacity in connection with this Agreement with Anti-Corruption Laws and applicable Sanctions.

Section 5.5 Payment of Obligations

. Pay and discharge at or before maturity, all of its obligations and liabilities (other than Indebtedness and any obligations in respect of any Hedging Transactions but including, without limitation, all taxes, assessments and other governmental charges, levies and all other claims that could result in a statutory Lien) before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings, (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP, (c) such contest effectively suspends collection of the contested obligation and the enforcement of any Lien securing such obligation, and (d) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect.

Section 5.6 Books and Records

. Keep proper books of record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities to the extent necessary to prepare the consolidated financial statements of the Borrower and its Subsidiaries in conformity with GAAP.

Section 5.7 Visitation, Inspection, Etc

. Permit any representative of the Administrative Agent (it being understood the Lenders may accompany the Administrative Agent at the sole cost of such Lender) to visit and inspect its properties, to examine its books and records and to make copies and take extracts therefrom, and to discuss its affairs, finances and accounts with any of its officers and independent certified public accountants, all at such reasonable times and as often as the Administrative
Agent may reasonably request after reasonable prior notice to the Borrowers; provided that only the Administrative Agent on behalf of the Lenders may exercise rights under this Section 5.7 and the Administrative Agent shall not exercise such rights more often than one time during any Fiscal Year absent the existence of an Event of Default and, in any event, only one such time shall be at the Borrowers’ expense,
and provided, further, that when an Event of Default has occurred and is continuing the Administrative Agent (or any of its designated representatives) may do any of the foregoing at the expense of the Borrowers at any time during normal business hours without prior notice.

Section 5.8 Maintenance of Properties; Insurance

.

(a) Keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted;

(b) Maintain with financially sound and reputable insurance companies not Affiliates of the Borrower, insurance with respect to its properties and business, and the properties and business of its Subsidiaries, against loss or damage of the kinds
customarily insured against by companies in the same or similar businesses operating in the same or similar locations;

 

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(c) At all times shall name Administrative Agent as additional insured on all liability policies and loss payee on all property or casualty polices of the Borrower and its Subsidiaries (which policies shall be endorsed or otherwise amended to
include a customary lender’s loss payable endorsement and to name the Administrative Agent as additional insured or loss payee, in form and substance reasonably satisfactory to the Administrative Agent); and

(d) Cause all Mortgaged Property that constitutes Flood Hazard Property to be covered by flood insurance provided under the National Flood Insurance Program (or with private insurance endorsed to cause such private insurance to be fully compliant
with the federal law as regards private placement insurance applicable to the National Flood Insurance Program, with financially sound and reputable insurance companies not Affiliates of the Borrower), in such amounts and with such deductibles as the Administrative Agent (on behalf of itself or any Lender) may request.

Section 5.9 Use of Proceeds

.

(a) Use the proceeds of all the Revolving Loans (i) on the Closing Date, to refinance Indebtedness under the Existing Credit Agreement and to pay related transaction fees and expenses, and (ii) after the Closing Date, to finance Permitted Acquisitions,
for working capital needs, for capital expenditures and for other general corporate purposes of the Borrower and its Subsidiaries.

(b) Use the proceeds of the Term Loan A on the Closing Date to refinance Indebtedness under the Second Lien Credit Agreement, to pay related transaction fees and expenses and for other general corporate purposes of the Borrower and its Subsidiaries.

(c) Use the proceeds of each Incremental Term Loan for the purposes set forth in the definitive documentation therefor.

(d) Use all Letters of Credit for general corporate purposes.

Section 5.10 Additional Subsidiaries

. If any Subsidiary is acquired or formed after the Closing Date, promptly notify the Administrative Agent and the Lenders thereof and, within ten (10) Business Days (or such later date as the Administrative Agent may agree in its sole discretion) after any such Subsidiary is acquired or formed, if such Subsidiary is a Domestic Subsidiary (other than (i) any Domestic Subsidiary of a Foreign Subsidiary that is a “controlled foreign corporation” within the meaning of Section 957 of the Code (except
any such Domestic Subsidiary that is treated as a C corporation for federal income tax purposes) and (ii) Intelistaf), cause such Subsidiary to become a Guarantor. A Subsidiary shall become an additional Guarantor by executing and delivering to the Administrative Agent a Guarantor Joinder Agreement in form and substance reasonably satisfactory to the Administrative Agent, accompanied by (a) all other Loan Documents related thereto, (b) certified copies of Organization Documents, appropriate authorizing
resolutions of the board of directors of such Subsidiaries, and opinions of counsel comparable to those delivered pursuant to Section 3.1(c), and (c) such other documents as the Administrative Agent may reasonably request.

Section 5.11 Further Assurances

 

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(a) Capital Stock. Cause (i) 100% of the issued and outstanding Capital Stock of each Domestic Subsidiary (other than Intelistaf) and (ii) 65% (or such greater percentage that, due to a Change in
Law after the date hereof, (A) could not reasonably be expected to cause the undistributed earnings of such Material Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to such Material Foreign Subsidiary’s United States parent and (B) could not reasonably be expected to cause any adverse tax consequences) of the issued and outstanding Capital Stock entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued
and outstanding Capital Stock not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Material Foreign Subsidiary (other than any Domestic Subsidiary of a Foreign Subsidiary that is a “controlled foreign corporation” within the meaning of Section 957 of the Code (except any such Domestic Subsidiary that is treated as a C corporation for federal income tax purposes)) directly owned by any Loan Party to be subject at all times to a first priority, perfected Lien in favor
of the Administrative Agent, for the benefit of the holders of the Obligations, to secure the Obligations pursuant to the Collateral Documents (subject to Liens permitted by Section 7.2), and, in connection with the foregoing, deliver to the Administrative Agent such other documentation as the Administrative Agent may reasonably request including, any filings and deliveries to perfect such Liens, Organization Documents, resolutions and opinions of counsel, all in
form, content and scope reasonably satisfactory to the Administrative Agent.

(b) Personal Property. Cause all personal property (other than Excluded Property) owned by each Loan Party to be subject at all times to first priority, perfected Liens in favor of the Administrative
Agent, for the benefit of the holders of the Obligations, to secure the Obligations as required by the Collateral Documents (subject to Liens permitted by Section 7.2) and, in connection with the foregoing, deliver to the Administrative Agent such documentation as the Administrative Agent may reasonably request including filings and deliveries necessary to perfect such Liens, Organization Documents, resolutions and favorable opinions of counsel to such Person, all
in form, content and scope reasonably satisfactory to the Administrative Agent.

(c) Control Agreements.  To the extent that a deposit account, disbursement account, investment account, cash management account, lockbox account or other account (other than an Excluded Account)
is maintained with a Lender (or any of its Affiliates) other than SunTrust Bank (or any of its Affiliates), cause such deposit account, disbursement account, investment account, cash management account, lockbox account or other account to be subject to an account control agreement in form and substance reasonably satisfactory to the Administrative Agent (it being understood and agreed that the Loan Parties shall have up to thirty (30) days after the Closing Date (or such later date as the Administrative Agent
may agree in its sole discretion) to cause any such accounts existing as of the Closing Date to become subject to such an account control agreement); provided that no such account control agreement shall be required with respect to any account maintained with a Lender other than SunTrust Bank that has a balance (or which holds assets with a fair market value) less than $50,000, in any individual instance, or $100,000, when taken together with the account balances (or aggregate amount of the fair market value
of assets) of all other accounts (other than Excluded Accounts) that are not either maintained at SunTrust Bank or subject to an account control agreement in form and substance reasonably acceptable to the Administrative Agent.

(d)           Landlord Consents.  Within ninety (90) days (or such later date as the Administrative Agent may agree in its sole discretion) of (i) the Closing Date, with respect to leased locations of the Loan Parties existing on the Closing Date and (ii) the date
a new leasehold interest in real property is acquired by a Loan Party (or an existing lease is renewed or extended), use commercially reasonable efforts to deliver or cause to be delivered to the Administrative Agent a duly executed landlord consent with respect to each leased location where material corporate books and records of any of the Loan Parties are maintained, which consents shall be in form and substance reasonably acceptable to the Administrative Agent.

 

 

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(e)           Mortgaged Property. Within forty-five (45) days (or such later date as the Administrative Agent may agree in its sole discretion) of (i) the Closing Date, with respect to fee-owned real property owned as of the Closing Date and (ii) the date new fee-owned
real property is acquired by a Loan Party, cause all fee-owned real property (other than Excluded Property) owned by each Loan Party to be subject at all times to a valid and, subject to any filing and/or recording referred to herein, enforceable Lien on, and security interest in, such fee-owned real property that is prior and superior in right to any other Lien in favor of the Administrative Agent, for the benefit of the holders of the Obligations, to secure the Obligations as required by the Collateral Documents
(subject to Liens permitted by Section 7.2) and, in connection with the foregoing, deliver to the Administrative Agent such documentation as the Administrative Agent may reasonably 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, all in form, content and scope reasonably satisfactory to the Administrative Agent.

 

Section 5.12 Cash Management

. The Borrower shall, and shall cause its Domestic Subsidiaries to, maintain all cash management and treasury business (other than Excluded Accounts) with SunTrust Bank or another Lender or any of their respective Affiliates, including, without limitation, all deposit accounts, disbursement accounts, investment accounts and lockbox accounts. Each account maintained with a Lender (or any of its Affiliates) other than SunTrust Bank shall be subject to an account control agreement to the extent required under Section
5.11(c).

Section 5.13 Healthcare Matters

. The Borrower and its Subsidiaries shall maintain without restriction, and shall cause each employee and contractor of the Borrower or any Subsidiary to maintain without restriction, at all times all necessary registrations, permits, licenses, franchises, authorizations and clearances of all federal, state and local governmental or regulatory authorities as are required or necessary (i) for the Borrower and its Subsidiaries to own their respective properties and to conduct their respective business as of
any date of determination in each jurisdiction in which each does business as of the Closing Date and (ii) own and operate any business acquired in each jurisdiction in which such business is located, except in each of clauses (i) and (ii) where the failure to maintain any such necessary registrations, permits, licenses, franchises, authorizations and clearances of all federal, state and local governmental or regulatory
authorities as are required or necessary, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

ARTICLE VI

FINANCIAL COVENANTS

Each Loan Party covenants and agrees that so long as any Lender has a Commitment hereunder, any Obligation remains unpaid or outstanding, or any Letter of Credit shall remain outstanding, no Loan Party shall, nor shall it permit any Subsidiary to, directly or indirectly:

 

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Section 6.1 Consolidated Total Leverage Ratio

. Permit the Consolidated Total Leverage Ratio as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending September 30, 2016, to be greater than (a) for each Fiscal Quarter ending from September 30, 2016 through and including June 30, 2017, 3.50:1.00, (b) for each Fiscal Quarter ending from September 30, 2017 through and including June 30, 2018, 3.25:1.00, and (c) for each Fiscal Quarter ending thereafter, 3.00:1.00; provided, however,
that the Consolidated Total Leverage Ratio levels set forth above may, at the election of the Borrower and upon written notice to the Administrative Agent prior to the consummation of any Qualified Permitted Acquisition, be increased by 0.25:1.00 (a “quarter-turn”) in connection with one or more Permitted Acquisitions made within a twelve (12) month period with aggregate cash and non-cash consideration (including assumed Indebtedness, the good faith estimate by the Borrower of the maximum amount of
any deferred purchase price obligations (including the Borrower’s good faith estimate of any anticipated earn-out obligations) and Capital Stock) paid in connection therewith in excess of $20,000,000 (each such Permitted Acquisition, whether individually satisfying such consideration threshold amount or satisfying such consideration threshold amount when taken together with other Permitted Acquisitions made within a twelve (12) month period, a “Qualified Permitted
Acquisition”), with a 0.25:1.0 step-down (returning the required Consolidated Total Leverage Ratio to the then otherwise required ratio) for the period of four Fiscal Quarters ending with the second Fiscal Quarter ending after the period of four Fiscal Quarters for which the maximum Consolidated Total Lever Ratio was first increased by 0.25:1.00 (a “quarter-turn”) pursuant to this Section 6.1; provided further that,
(x) in any event, the maximum Consolidated Total Leverage Ratio for any period of four Fiscal Quarters shall not be increased to be greater than 0.25:1.00 (a “quarter-turn”) more than the otherwise required Consolidated Total Leverage Ratio as provided above, (y) the Consolidated Total Leverage Ratio levels shall not be increased pursuant to the foregoing proviso on more than two (2) occasions in the period from the Closing Date through the Revolving Commitment Termination Date and (z) following any
increase in the Consolidated Total Leverage Ratio level pursuant to the foregoing proviso, no subsequent increase in the Consolidated Total Leverage Ratio level pursuant to the foregoing proviso may be made until after the required Consolidated Total Leverage Ratio has been at the applicable level set forth above (without giving effect to any increase pursuant to the foregoing proviso) for at least one full Fiscal Quarter.

 

Section 6.2 Consolidated Fixed Charge Coverage Ratio

. Permit a Consolidated Fixed Charge Coverage Ratio as of the end of each Fiscal Quarter, commencing with the Fiscal Quarter ending September 30, 2016, to be less than 1.50:1.00.

ARTICLE VII

NEGATIVE COVENANTS

Each Loan Party covenants and agrees that so long as any Lender has a Commitment hereunder, any Obligation remains unpaid or outstanding, or any Letter of Credit shall remain outstanding, no Loan Party shall, nor shall it permit any Subsidiary to, directly or indirectly:

Section 7.1 Indebtedness and Preferred Equity

. Create, incur, assume or suffer to exist any Indebtedness, except:

(a) Indebtedness created pursuant to the Loan Documents;

(b) Indebtedness of the Borrower or any Subsidiary existing on the date hereof and set forth on Schedule 7.1 and any Permitted Refinancing thereof;

(c) Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations; provided,
that such Indebtedness is incurred prior to or within ninety (90) days after such acquisition or the completion of such construction or improvements, and any Permitted Refinancing thereof; provided further, that the aggregate principal amount of such Indebtedness does not exceed $4,000,000 at any time outstanding;

 

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(d) Indebtedness of the Borrower owing to any Subsidiary and of any Subsidiary owing to the Borrower or any other Subsidiary; provided, that any such Indebtedness that is owed by a Subsidiary that
is not a Loan Party shall be subject to Section 7.4;

(e) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of the Borrower or any other Subsidiary; provided, that Guarantees by any Loan Party of Indebtedness
of any Subsidiary that is not a Loan Party shall be subject to Section 7.4;

(f) Hedging Obligations permitted by Section 7.11;

(g) Permitted Subordinated Debt;

(h) Convertible Note Indebtedness, so long as the Convertible Note Indebtedness remains subject to the terms of the Convertible Note Subordination Agreement;

(i) (i) Indebtedness of any Person that becomes a Subsidiary (or of any Person not previously a Subsidiary that is merged or consolidated with or into a Subsidiary in a transaction permitted hereunder) after the Closing Date, or Indebtedness
of any Person that is assumed by any Subsidiary in connection with an acquisition of assets by such Subsidiary in a Permitted Acquisition after the Closing Date; provided that, in each case, such Indebtedness exists at the time such Person becomes a Subsidiary (or is so merged or consolidated) or such assets are acquired and is not created in contemplation of or in connection with such Person becoming a Subsidiary (or such merger or consolidation) or such assets
being acquired, and (ii) Permitted Refinancings in respect of Indebtedness assumed pursuant to clause (ii) above; provided further that the aggregate principal amount of Indebtedness permitted by this clause (j) shall not exceed $2,500,000 at any time outstanding; and

(j) unsecured Indebtedness of the Borrower or its Subsidiaries of a type not contemplated in the foregoing in an aggregate principal amount not to exceed $2,500,000 at any time outstanding.

Section 7.2 Negative Pledge

. Create, incur, assume or suffer to exist any Lien on any of its assets or property now owned or hereafter acquired, except:

(a) Liens securing the Obligations pursuant to the Loan Documents and any Liens on cash or deposits granted in favor of an Issuing Bank to Cash Collateralize any Defaulting Lender’s participation in Letters of Credit as contemplated by
this Agreement;

(b) Permitted Encumbrances;

(c) any Liens on any property or assets of the Borrower or its Subsidiaries existing on the Closing Date and set forth on Schedule 7.2; provided,
that such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary;

(d) Liens securing Indebtedness incurred pursuant to Section 7.1(i); 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 attached to such property concurrently with or within ninety (90) days after the acquisition thereof;

 

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(e) purchase money Liens upon or in any fixed or capital assets to secure the purchase price or the cost of construction or improvement of such fixed or capital assets or to secure Indebtedness incurred solely for the purpose of financing the
acquisition, construction or improvement of such fixed or capital assets (including Liens securing any Capital Lease Obligations); provided, that (i) such Lien secured Indebtedness permitted by Section 7.1(c), (ii) such Lien attaches to such asset concurrently or within ninety (90) days after the acquisition, improvement or completion of the construction thereof; (iii) such Lien does not extend to any other asset;
and (iv) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets; and

(f) extensions, renewals, or replacements of any Lien referred to in clauses (a) through (e) of this Section
7.2; provided, that the principal amount of the Indebtedness secured thereby is not increased and that any such extension, renewal or replacement is limited to the assets originally encumbered thereby; and

(g) other Liens affecting property with an aggregate fair value not to exceed $2,500,000 at any time, provided that no such Lien shall extend to or cover any Collateral.

Section 7.3 Fundamental Changes

.

(a) Merge into or consolidate into any other Person, or permit any other Person to merge into or consolidate with it, or sell, lease, transfer or otherwise dispose of (in a single transaction or a series of transactions) all or substantially
all of its assets (in each case, whether now owned or hereafter acquired) or any line of business or all or substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or hereafter acquired) or liquidate or dissolve; provided, that if at the time thereof and immediately after giving effect thereto, no Event of Default shall have occurred and be continuing (except, in the case of an Acquisition subject to the Incremental Funds Certain
Provision, in which case there is no Default or Event of Default immediately before or immediately after execution and delivery of the applicable Acquisition Agreement and there is no Specified Event of Default at the date the applicable Permitted Acquisition is consummated) (i) the Borrower or any Subsidiary may merge with a Person pursuant to a Permitted Acquisition if the Borrower (or such Subsidiary if the Borrower is not a party to such merger) is the surviving Person, (ii) any Subsidiary may merge into
another Subsidiary; provided, that if any party to such merger is a Guarantor, the Guarantor shall be the surviving Person, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of all or substantially all of its assets to any Loan Party and (iv) any Subsidiary (other than a Guarantor) may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially
disadvantageous to the Lenders; provided that (x) its assets are all disposed of pursuant to Section 2.12(a) and (y) any such merger involving a Person that is not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 7.4.

(b) Engage in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto.

Section 7.4 Investments, Loans, Etc. 

 Make any Investment except:

(a) Investments existing on the date hereof and set forth on Schedule 7.4 (including Investments in Subsidiaries);

(b) Permitted Investments;

 

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(c) Guarantees by Borrower or any Subsidiary constituting Indebtedness permitted by Section 7.1;

(d) Investments made by the Borrower in or to any Subsidiary and by any Subsidiary to the Borrower or in or to another Subsidiary; provided, that the aggregate amount of Investments by Loan Parties
in or to, and Guarantees by Loan Parties of Indebtedness of any Subsidiary that is not a Guarantor (including all such Investments and Guarantees existing on the Closing Date) shall not exceed $2,000,000 at any time outstanding;

(e) loans or advances to employees, officers or directors of the Borrower or any Subsidiary in the ordinary course of business; provided, that the aggregate amount of all such loans and advances
does not exceed $500,000 in the aggregate at any time outstanding;

(f) Hedging Transactions permitted by Section 7.11;

(g) Permitted Acquisitions; and

(h) other Investments which in the aggregate do not exceed $2,500,000 in any Fiscal Year.

Section 7.5 Restricted Payments

. Declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment; provided, that, so long as no Default or Event of Default has occurred and is continuing at the time of such Restricted Payment or would result therefrom, the Borrower may declare or make, directly or indirectly:

(a) dividends payable by the Borrower solely in shares of any class of its common stock;

(b) redemptions or repurchases of Capital Stock in the Borrower made solely in shares of any class of its common stock;

(c) Restricted Payments made by any Subsidiary to Persons that own Capital Stock in such Subsidiary, on a pro rata basis according to their respective holdings of the type of Capital Stock in respect of which such Restricted Payment is being
made with any other shareholders if such Subsidiary is not wholly owned by the Borrower and other wholly owned Subsidiaries; and

(d) redemptions or repurchases of Capital Stock in the Borrower from employees and former employees of the Borrower and in connection with the Borrower’s share repurchase program as in effect on the Closing Date (i) in an aggregate amount
of all such redemptions or repurchases made pursuant to this Section 7.5(d) in any Fiscal Year not to exceed $2,500,000 or (ii) in an unlimited amount, so long as, after giving effect to any such redemption or repurchase on a Pro Forma Basis, (A) the Borrower shall be in compliance with the financial covenant set forth in Section 6.2 and (B) the Consolidated Total Leverage Ratio shall be at least 0.25:1.00 (a “quarter-turn”)
less than the maximum Consolidated Total Leverage Ratio specified in Section 6.1 for the period of four (4) Fiscal Quarters most recently ended prior to the date of determination for which financial statements were delivered under Section 5.1(a) or (b), in each case, as detailed in a Pro Forma Compliance Certificate delivered to the Administrative Agent at least five
(5) days (or such shorter period as may be agreed to by Administrative Agent) prior to any such redemption or repurchase.

 

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Section 7.6 Payment on Indebtedness

. Prepay, redeem, purchase, defease or otherwise satisfy or obligate itself to do so prior to the scheduled maturity thereof in any manner (including by the exercise of any right of setoff), or make any payment in violation of any subordination, standstill or collateral sharing terms of or governing Convertible Note Indebtedness or any Permitted Subordinated Debt, provided that the Borrower may:

(a)           pay scheduled payments of interest on the Convertible Note Indebtedness, subject to the applicable Convertible Note Subordination Agreement;

(b)           satisfy the Convertible Note Indebtedness through conversion of the Convertible Note Indebtedness into common Capital Stock in accordance with the terms of the Convertible Note Purchase Agreement and Convertible Note Subordination Agreement, so long as no cash payment, other than
accrued and unpaid interest, is made by any Loan Party on account of or in connection with such satisfaction (whether conversion premium, prepayment or otherwise) of any principal amount then outstanding, except on the maturity date thereof;

(c)           prepay, pay, redeem, purchase, defease or otherwise satisfy all or any portion of the Convertible Note Indebtedness, so long as, in the case of this clause (y), at the time of such prepayment, (A) no Default or Event of Default then
exists or would arise therefrom, (B) after giving effect thereto on a Pro Forma Basis, (1) the Loan Parties are in compliance with the financial covenant set forth in Section 6.2 and (2) the Consolidated Total Leverage Ratio is 0.50 to 1.00 (a “half turn”) less than the applicable covenant level set forth in Section 6.1 and (C) all representations and warranties contained in Article
IV and the other Loan Documents are 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), except (1) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (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 (2) for representations and warranties that may have become untrue or inaccurate solely because of changes permitted by the terms of this Agreement; and

(d)           pay scheduled payments of principal and interest on the Permitted Subordinated Debt, subject to the applicable Subordinated Debt Documents.

Section 7.7 Sale of Assets

. Make any Asset Sale or enter into any agreement to make any Asset Sale, except for Asset Sales for which (a) at least 75% of the consideration paid in connection therewith shall be cash or Permitted Investments paid contemporaneously with consummation of the transaction and shall be in an amount not less than the fair market value of the property disposed of, (b) the Net Cash Proceeds thereof are applied to repayment of the Loans to the extent required under Section
2.12(a), (c) such transaction does not involve the sale or other disposition of Capital Stock in any Subsidiary (except as contemplated in clause (g) of the definition of “Asset Sale” in Section 1.1), (d) such transaction does not involve a sale or other disposition of receivables other than (i) receivables owned by or attributable to other property concurrently being disposed of in a transaction
otherwise permitted under this Section 7.7 or (ii) as contemplated under clause (d) of the definition of “Asset Sale” in Section 1.1, and (e) the aggregate net book value of all of the assets sold or otherwise disposed of by the Loan Parties and their Subsidiaries in all such transactions shall not exceed 5% of Consolidated Total Assets during the term of
this Agreement.

Section 7.8 Transactions with Affiliates

. Sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Loan Parties and (c) any Restricted Payment
permitted by Section 7.5.

 

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Section 7.9 Restrictive Agreements

. Enter into, incur or permit to exist any agreement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit any Lien upon any of its assets or properties, whether now owned or hereafter acquired, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to its Capital Stock, to make or repay loans or advances to the Borrower or any other Subsidiary, to Guarantee Indebtedness of the Borrower or
any other Subsidiary or to transfer any of its property or assets to the Borrower or any Subsidiary of the Borrower; provided, that (i) the foregoing shall not apply to restrictions or conditions imposed by Law or by this Agreement or any other Loan Document, (ii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary that is sold and such sale is permitted hereunder, (iii) clause (a) shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness or Capital Lease Obligations permitted by this Agreement so long as such restrictions and conditions apply only to the property or assets securing such Indebtedness and (iv) clause (a) shall
not apply to customary provision in leases and other contracts restricting the assignment thereof.

Section 7.10 Sale and Leaseback Transactions

. Enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereinafter 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 sold or transferred.

Section 7.11 Hedging Transactions

. Enter into any Hedging Transaction, other than Hedging Transactions entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in the conduct of its business or the management of its liabilities and not for speculative purposes.

Section 7.12 Amendments to Certain Documents

.

(a)           Amend, modify or change in any manner any term or condition of any Subordinated Debt Documents or Convertible Note Documents, or give any consent, waiver or approval thereunder; provided that the Subordinated Debt Documents or Convertible
Note Documents may be amended or modified to extend the amortization or maturity of the indebtedness evidenced thereby, reduce the interest rate thereon, or otherwise amend or modify the terms thereof so long as the terms of any such amendment or modification are not adverse in any material respect to the Borrower, any Subsidiary, or to the Administrative Agent and the Lenders; or

(c)           Amend, modify or waive any of its rights in a manner materially adverse to the Lenders or any Loan Party under (i) its Organization Documents or (ii) any Material Agreements.

 

Section 7.13 Accounting Changes

. Make any significant change in accounting treatment or reporting practices, except as required by GAAP, or change the Fiscal Year of the Borrower or of any of its Subsidiaries, except to change the fiscal year of a Subsidiary to conform its fiscal year to that of the Borrower.

Section 7.14 Government Regulation

. The Borrower will not, and will not permit any of its Subsidiaries to, (a) be or become subject at any time to any law, regulation or list of any Governmental Authority of the United States (including, without limitation, the OFAC list) that prohibits or limits the Lenders or the Administrative Agent from making any advance or extension of credit to the Borrower or from otherwise conducting business with the Loan Parties, or (b) fail to provide documentary and other evidence of the identity of the Loan
Parties as may be requested by the Lenders or the Administrative Agent at any time to enable the Lenders or the Administrative Agent to verify the identity of the Loan Parties or to comply with any applicable Law or regulation, including, without limitation, Section 326 of the Patriot Act at 31 U.S.C. Section 5318.

 

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Section 7.15 Ownership of Subsidiaries

. Notwithstanding any other provisions of this Agreement to the contrary, the Borrower will not, and will not permit any of the Subsidiaries to permit any Subsidiary to issue or have outstanding any shares of preferred Capital Stock.

Section 7.16 Use of Proceeds

.

(a) Use any part of the proceeds of any Loan, whether directly or indirectly, for any purpose that would violate any rule or regulation of the Board of Governors of the Federal Reserve System, including Regulations T, U or X.

(b) Request any Borrowing or Letter of Credit, or use or allow its respective directors, officers, employees and agents to use, the proceeds of any Borrowing or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization
of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country or (iii) in any manner that would result in the violation of any Sanctions applicable to any party.

Section 7.17 Sanctions and Anti-Corruption Laws

. Request any Loan or Letter of Credit or use the proceeds of any Loan and/or Letter of Credit (a) to fund, finance or facilitate any activities of or business with any Sanctioned Person or in any Sanctioned Country, (b) that will result in a violation by any Person (including any Person participating in the transaction, whether as an Arranger, the Administrative Agent, any Lender (including a Swingline Lender) or any Issuing Bank or otherwise) of Sanctions or (c) that would in any manner violate any Anti-Corruption
Laws.

ARTICLE VIII

EVENTS OF DEFAULT

Section 8.1 Events of Default

. If any of the following events (each an “Event of Default”) shall occur:

(a) any Loan Party shall fail to pay any principal of any Loan or of any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment
or otherwise; or

(b) any Loan Party shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount payable under clause (a) of this Section
8.1 or an amount related to a Bank Product Obligation) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; or

 

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(c) any representation or warranty made or deemed made by or on behalf of the Borrower or any Subsidiary in or in connection with this Agreement or any other Loan Document (including the Schedules attached thereto) and any amendments or modifications
hereof or waivers hereunder, or in any certificate, report, financial statement or other document submitted to the Administrative Agent or the Lenders by any Loan Party or any representative of any Loan Party pursuant to or in connection with this Agreement or any other Loan Document shall prove to be incorrect in any material respect (other than a representation or warranty that is expressly qualified by a Material Adverse Effect or materiality, in which case such representation or warranty shall prove to be
incorrect in all respects) when made or deemed made or submitted; or

(d) any Loan Party shall fail to observe or perform any covenant or agreement contained in Section 5.1, 5.2, 5.3 (as
to the existence of any Loan Party) 5.7, 5.9 or Articles VI or VII; or

(e) any Loan Party shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those referred to in clauses (a), (b) and (d) above)
or any other Loan Document or related to any Bank Product Obligation, and such failure shall remain unremedied for thirty (30) days after the earlier of (i) any Responsible Officer of any Loan Party becomes aware of such failure, or (ii) written notice thereof shall have been given to any Loan Party by the Administrative Agent or any Lender; or

(f) the Borrower or any Subsidiary (whether as primary obligor or as guarantor or other surety) shall fail to pay any principal of, or premium or interest on, any Material Indebtedness that is outstanding, when and as the same shall become due
and payable (whether at scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument evidencing or governing such Material Indebtedness; or any other event shall occur or condition shall exist under any agreement or instrument relating to such Material Indebtedness and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect
of such event or condition is to accelerate, or permit the acceleration of, the maturity of such Material Indebtedness; or any such Material Indebtedness shall be declared to be due and payable, or required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption), purchased or defeased, or any offer to prepay, redeem, purchase or defease such Material Indebtedness shall be required to be made, in each case prior to the stated maturity thereof; or

(g) the Borrower or any Subsidiary shall (i) commence a voluntary case or other proceeding or file any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar Law
now or hereafter in effect or seeking the appointment of a custodian, trustee, receiver, liquidator or other similar official of it or any substantial part of its property, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section 8.1, (iii) apply for or consent to the appointment of a custodian, trustee, receiver, liquidator
or other similar official for the Borrower or any such Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the foregoing; or

(h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any Subsidiary or its debts, or any substantial part of its assets,
under any federal, state or foreign bankruptcy, insolvency or other similar Law now or hereafter in effect or (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for the Borrower or any Subsidiary or for a substantial part of its assets, and in any such case, such proceeding or petition shall remain undismissed for a period of sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or

 

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(i) the Borrower or any Subsidiary shall become unable to pay, shall admit in writing its inability to pay, or shall fail to pay, its debts as they become due; or

(j) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when taken together with other ERISA Events that have occurred, would reasonably be expected to result in liability to the Borrower and the Subsidiaries in an
aggregate amount exceeding $2,500,000; or

(k) any judgment or order for the payment of money in excess of $2,500,000 (to the extent not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage), individually or in the aggregate,
shall be rendered against the Borrower or any Subsidiary, and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be a period of thirty (30) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

(l) any non-monetary judgment or order shall be rendered against the Borrower or any Subsidiary that would reasonably be expected to have a Material Adverse Effect, and there shall be a period of thirty (30) consecutive days during which a stay
of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

(m) a Change in Control shall occur or exist; or

(n) any default or event of default (after giving effect to any grace period) shall have occurred and be continuing under any of the Subordinated Debt Documents or Convertible Note Documents (even if, for avoidance of doubt, such default shall
have occurred as a result of the failure of any obligor thereunder to make a payment required under the Subordinated Debt Documents or Convertible Note Documents which payment is not permitted to be made as a result of Section 7.6 of this Agreement or of any section of the Convertible Note Subordination Agreement), or any of the Subordinated Debt Documents or Convertible Note Documents shall cease to be in full force and effect or the validity or enforceability
thereof is disaffirmed by or on behalf of any subordinated lender party thereto, or any Obligations fail to constitute “Senior Debt” (or similar or analogous term) for purposes of any of the Subordinated Debt Documents or Convertible Note Documents, or all or any part of the Convertible Note Indebtedness or Permitted Subordinated Debt is accelerated, is declared to be due and payable is required to be prepaid or redeemed, in each case prior to the stated maturity thereof; or

(o) any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect or ceases to
give the Administrative Agent any material part of the Liens purported to be created thereby; or any Loan Party or any Person acting by or on behalf of any Loan Party contests in any manner the validity or enforceability of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document. then, and in every such event (other than
an event with respect to the Borrower described in clause (g) or (h) of this Section 8.1) and at any time thereafter during the continuance of such event, the Administrative Agent may, and upon the written request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different times: (i) terminate the Commitments, whereupon the Commitment of each Lender
shall terminate immediately, (ii) declare the principal of and any accrued interest on the Loans then outstanding, and all other Obligations owing hereunder, to be, whereupon the same shall become, due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower, (iii) exercise all remedies contained in any other Loan Document, and (iv) exercise any other remedies available at Law or in equity; and that, if an Event of Default specified
in either clause (g) or (h) shall occur, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon, and all fees, and all other Obligations shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

 

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Section 8.2 Application of Funds

.

After the exercise of remedies provided for in Section 8.1 (or immediately after an Event of Default specified in either clause (g) or (h) of Section 8.1),
any amounts received on account of the Obligations shall be applied by the Administrative Agent in the following order:

(a) first, to the reimbursable expenses of the Administrative Agent incurred in connection with such sale or other realization upon the Collateral, until the same shall have been paid in full;

(b) second, to the fees and other reimbursable expenses of the Administrative Agent and the Issuing Banks then due and payable pursuant to any of the Loan Documents, until the same shall have been
paid in full;

(c) third, to all reimbursable expenses, if any, of the Lenders then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;

(d) fourth, to the fees due and payable under Sections 2.14(b) and (c) of this Agreement and interest
then due and payable under the terms of this Agreement, until the same shall have been paid in full;

(e) fifth, to the aggregate outstanding principal amount of the Term Loans (allocated among the Term Loan Lenders in respect of their Pro Rata Shares), to the aggregate outstanding principal amount
of the Revolving Loans, the LC Exposure, the Net Mark-to-Market Exposure (to the extent secured by Liens) and the Bank Product Obligations of the Borrower and its Subsidiaries, until the same shall have been paid in full, allocated pro rata among any Lender, any Lender-Related Hedge Provider and any Bank Product Provider, based on their respective Pro Rata Shares of the aggregate amount of such Revolving Loans, LC Exposure, Net Mark-to-Market Exposure (to the extent secured by Liens) and Bank Product Obligations;

(f) sixth, to additional cash collateral for the aggregate amount of all outstanding Letters of Credit until the aggregate amount of all cash collateral held by the Administrative Agent pursuant
to this Agreement is equal to 102% of the LC Exposure after giving effect to the foregoing clause fifth; and

 

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(g) to the extent any proceeds remain, to the Borrower or other parties lawfully entitled thereto.

All amounts allocated pursuant to the foregoing clauses third through sixth to the Lenders as a result of amounts owed to the Lenders under the Loan Documents shall be allocated among, and distributed to, the Lenders pro rata
based on their respective Pro Rata Shares; provided, that all amounts allocated to that portion of the LC Exposure comprised of the aggregate undrawn amount of all outstanding Letters of Credit pursuant to clause fifth and sixth shall be distributed to the Administrative Agent, rather than to the Lenders, and held by the
Administrative Agent in an account in the name of the Administrative Agent for the benefit of the Issuing Banks and the Revolving Lenders as Cash Collateral for the LC Exposure, such account to be administered in accordance with Section 2.22(g).

 

Excluded Swap Obligations with respect to any Guarantor shall not be paid with amounts received from such Guarantor or its assets, but appropriate adjustments shall be made with respect to payments from other Loan Parties to preserve the allocation to Obligations otherwise set forth above in this Section 8.2.

 

Notwithstanding the foregoing, Hedging Obligations and Bank Product Obligations may be excluded from the application described above without any liability to the Administrative Agent, if the Administrative Agent has not received written notice, together with such supporting documentation as the Administrative Agent may request, from the applicable Lender-Related Hedge
Provider or Bank Product Provider.  Each Lender-Related Hedge Provider and Bank Product Provider 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 IX for itself and its Affiliates as if a Lender party hereto.

 

Section 8.3 Borrower’s Right to Cure.

(a)           Notwithstanding anything to the contrary contained in Section 8.1, in the event that the Loan Parties fail (or, but for the operation of this Section 8.3, would fail) to comply with the requirements of the
covenants set forth in Article VI, until the expiration of the 10th Business Day subsequent to the date the Compliance Certificate is required to be delivered pursuant to Section 5.1(d)) (such period of ten (10) Business Days, the “Cure Period”), the Borrower shall have the right to receive a cash equity contribution that does not take the form of Disqualified
Capital Stock from any Person for cash which it may specify as an increase to Consolidated EBITDA (such equity contribution, a “Specified Equity Contribution”), and upon the receipt by the Borrower of such Specified Equity Contribution within the Cure Period and application thereof as a mandatory prepayment as provided in Section 8.3(b)(vi) below, the covenants set forth in Article
VI shall be recalculated giving effect to the following pro forma adjustments (collectively, the “Cure Right”):

 

(i)           Consolidated EBITDA shall be increased for the applicable Fiscal Quarter (the “Applicable Quarter”) and any period of four Fiscal Quarters that includes the Applicable Quarter, solely for the purpose of measuring the covenants set forth in Article
VI, and not for any other purpose under this Agreement, by an amount equal to the Specified Equity Contribution; and

 

(ii)           If, after giving effect to the foregoing recalculations, the Loan Parties shall then be in compliance with the requirements of the covenants set forth in Article VI, the Loan Parties shall be deemed to have satisfied the requirements of the covenants
set forth in Article VI as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or default of the covenant set forth in Article VI that had occurred shall be deemed cured for the purposes of this Agreement.

 

 

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(b)           Notwithstanding anything herein to the contrary, (i) the Loan Parties shall provide notice to the Administrative Agent of its intention to exercise the Cure Right (the “Cure Notice”) no later than the date that is eight (8) Business Days after
the date on which the Compliance Certificate is required to be delivered pursuant to Section 5.1(d), and the Specified Equity Contribution must actually be received during the Cure Period, (ii) the Specified Equity Contribution shall be no greater than the amount required for purposes of complying with the applicable financial covenants in Article VI, (iii) Indebtedness repaid with the proceeds of an issuance of Capital
Stock (other than Disqualified Capital Stock) effected in connection with the exercise of a Cure Right pursuant to this Section 8.3 shall be deemed to be unrepaid for purposes of calculating the applicable financial covenants specified in Article VI for any period of four Fiscal Quarters that includes the Applicable Quarter, (iv) the Specified Equity Contribution received pursuant to any exercise of the Cure Right
shall be disregarded for purposes of determining any available basket under any covenant in this Agreement, the calculation of the Applicable Margin at any time and/or compliance with (or meeting requirement threshold under) the financial covenants set forth in Article VI on a Pro Forma Basis for any other purpose of this Agreement, (v) the Cure Right may be exercised no more than one time during the term of this Agreement, (vi) 100% of the Net Cash Proceeds received
by the Loan Parties in connection with the exercise of a Cure Right hereunder shall be applied as a mandatory prepayment of the Loans in accordance with Section 2.12(d), (vii) unless (A) the Borrower or any other Loan Party has stated in writing that it does not intend to cause a Specified Equity Contribution to be provided or failed to deliver the Cure Notice as provided in clause (b)(i) above or (B) the Event of
Default is precluded from being cured pursuant to this Section 8.3 because of clause (b)(i) or (b)(v) above, following receipt of the Cure Notice as provided in clause (b)(i) above, neither the Administrative Agent nor any Lender shall exercise any remedy under the Loan Documents (for the avoidance of doubt, including the
institution of Default Interest) or applicable Laws on the basis of an Event of Default caused solely by the failure of the Loan Parties to comply with Article VI until the second Business Day immediately following the end of the Cure Period (the “Standstill Period”) and (viii) during the Standstill Period (unless and until the Event of Default is cured pursuant to this Section
8.3), the Borrower shall not request, and the Lenders shall not be required to make, (A) any Loans or issue any Letters of Credit or (B) any conversions from Base Rate Loans into Eurodollar Loans or continuations of Eurodollar Loans (which shall automatically convert into Base Rate Loans at the end of the applicable Interest Period).

 

ARTICLE IX

THE ADMINISTRATIVE AGENT

Section 9.1 Appointment of Administrative Agent

.

(a) Each Lender irrevocably appoints SunTrust Bank as the Administrative Agent and authorizes it to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent under this Agreement and the other Loan
Documents, together with all such actions and powers that are reasonably incidental thereto. The Administrative Agent may perform any of its duties hereunder or under the other Loan Documents by or through any one or more sub-agents or attorneys-in-fact appointed by the Administrative Agent. The Administrative Agent and any such sub-agent or attorney-in-fact may perform any and all of its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions set forth in
this Article IX shall apply to any such sub-agent, attorney-in-fact or Related Party and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as the Administrative Agent.

 

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(b) Each of the Issuing Banks shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith until such time and except for so long as the Administrative Agent may agree at the request
of the Required Lenders to act for such Issuing Bank with respect thereto; provided that each of the Issuing Banks shall have all the benefits and immunities (i) provided to the Administrative Agent in this Article IX with respect to any acts taken or omissions suffered by such Issuing Bank in connection with Letters of Credit issued by it or proposed to be issued by it and the application and agreements for letters of credit pertaining to the Letters of Credit
as fully as if the term “Administrative Agent” as used in this Article IX included such Issuing Bank with respect to such acts or omissions and (ii) as additionally provided in this Agreement with respect to such Issuing Bank.

Section 9.2 Nature of Duties of Administrative Agent

. The Administrative Agent shall not have any duties or obligations except those expressly set forth in this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except those
discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 11.2), 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 (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries
that is communicated to or obtained by the Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it, its sub-agents or its attorneys-in-fact with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 11.2) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall
not be responsible for the negligence or misconduct of any sub-agents or attorneys-in-fact selected by it with reasonable care. The Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default unless and until written notice thereof (which notice shall include an express reference to such event being a “Default” or “Event of Default” hereunder) is given to the Administrative Agent by the Borrower or any Lender, and the Administrative Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements, or other terms and conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document
or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article III or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. The Administrative Agent may consult with legal counsel (including counsel for the Borrower) concerning all matters pertaining to such duties.

 

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Section 9.3 Lack of Reliance on the Administrative Agent

. Each of the Lenders, the Swingline Lender and the Issuing Banks acknowledges that it has, independently and without reliance upon the Administrative Agent, any Issuing Bank or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders, the Swingline Lender and the Issuing Banks also acknowledges that it will, independently and without reliance upon the Administrative Agent, any Issuing
Bank or any other Lender and based on such documents and information as it has deemed appropriate, continue to make its own decisions in taking or not taking any action under or based on this Agreement, any related agreement or any document furnished hereunder or thereunder.

Section 9.4 Certain Rights of the Administrative Agent

. If the Administrative Agent shall request instructions from the Required Lenders with respect to any action or actions (including the failure to act) in connection with this Agreement, the Administrative Agent shall be entitled to refrain from such act or taking such act unless and until it shall have received instructions from such Lenders, and the Administrative Agent shall not incur liability to any Person by reason of so refraining. Without limiting the foregoing, no Lender shall have any right of action
whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder in accordance with the instructions of the Required Lenders where required by the terms of this Agreement.

Section 9.5 Reliance by 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, posting or other distribution) believed by it to be genuine and to have been signed, sent or made by the proper Person. The Administrative Agent may also rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person and shall
not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (including counsel for the Borrower), independent public 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 such counsel, accountants or experts.

Section 9.6 The Administrative Agent in its Individual Capacity

. The bank serving as the Administrative Agent shall have the same rights and powers under this Agreement and any other Loan Document in its capacity as a Lender as any other Lender and may exercise or refrain from exercising the same as though it were not the Administrative Agent; and the terms “Lenders”, “Required Lenders” or any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity. The bank acting as the
Administrative Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of the Borrower as if it were not the Administrative Agent hereunder.

Section 9.7 Successor Administrative Agent

.

(a) The Administrative Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent, subject to
approval by the Borrower, provided that no Default or Event of Default shall exist at such time. If no successor Administrative Agent shall have been so appointed, and shall have accepted such appointment within thirty (30) days after the retiring Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a commercial bank organized under the laws of the United States or any state thereof
or a bank which maintains an office in the United States.

 

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(b) Upon the acceptance of its appointment as the Administrative Agent hereunder by a successor, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. If, within forty-five (45) days after written notice is given of the retiring Administrative Agent’s resignation under this Section 9.7, no successor Administrative Agent shall have been appointed and shall have accepted such appointment, then on such 45th day
(i) the retiring Administrative Agent’s resignation shall become effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its duties and obligations under the Loan Documents and (iii) the Required Lenders shall thereafter perform all duties of the retiring Administrative Agent under the Loan Documents until such time as the Required Lenders appoint a successor Administrative Agent as provided above. After any retiring Administrative Agent’s resignation hereunder, the provisions
of this Article IX shall continue in effect for the benefit of such retiring Administrative Agent and its representatives and agents in respect of any actions taken or not taken by any of them while it was serving as the Administrative Agent.

(c) In addition to the foregoing, if a Lender becomes, and during the period it remains, a Defaulting Lender, and if any Default has arisen from a failure of the Borrower to comply with Section 2.26(b),
then each of the Issuing Banks and the Swingline Lender may, upon prior written notice to the Borrower and the Administrative Agent, resign as an Issuing Bank or as Swingline Lender, as the case may be, effective at the close of business Atlanta, Georgia time on a date specified in such notice (which date may not be less than five (5) Business Days after the date of such notice).

Section 9.8 Withholding Tax

. To the extent required by any applicable Law, the Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to any applicable withholding tax. If the Internal Revenue Service or any authority of the United States or any other jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered or was not properly executed, or because such Lender failed
to notify the Administrative Agent of a change in circumstances that rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason), such Lender shall indemnify the Administrative Agent (to the extent that the Administrative Agent has not already been reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) fully for all amounts paid, directly or indirectly, by the Administrative Agent as tax or otherwise, including penalties and interest, together
with all expenses incurred, including legal expenses, allocated staff costs and any out of pocket expenses.

Section 9.9 Administrative Agent May File Proofs of Claim

.

(a) In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether
the principal of any Loan or any Revolving Credit Exposure shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

(i) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans or Revolving Credit Exposure 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 Banks and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Banks and the Administrative Agent and its agents and counsel and all other amounts due the Lenders, the Issuing Banks and the Administrative Agent under Section 10.3) allowed in such judicial proceeding; and

 

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

(b) Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and each Issuing Bank to make such payments to the Administrative Agent and,
if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Banks, 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 Section 11.3.

(c) Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or any Issuing Bank any plan of reorganization, arrangement, adjustment or composition affecting
the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

Section 9.10 Authorization to Execute Other Loan Documents

. Each Lender hereby authorizes the Administrative Agent to execute on behalf of all Lenders all Loan Documents (including, without limitation, the Collateral Documents and any subordination agreements) other than this Agreement.

Section 9.11 Collateral and Guaranty Matters

. The Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion:

(a) to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon the termination of all Revolving Commitments, the Cash Collateralization of all reimbursement obligations with respect to
Letters of Credit in an amount equal to 102% of the aggregate LC Exposure of all Lenders, and the payment in full of all Obligations (other than contingent indemnification obligations and such Cash Collateralized reimbursement obligations), (ii) that is sold or to be sold as part of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) if approved, authorized or ratified in writing in accordance with Section 11.2; and

(b) to release any Loan Party from its obligations under the applicable Collateral Documents if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release its interest in particular types or items of property, or to release any Loan Party from its obligations under the applicable Collateral Documents pursuant to this Section
9.11. In each case as specified in this Section 9.11, the Administrative Agent is authorized, at the Borrower’s expense, to execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the Liens granted under the applicable Collateral Documents, or to release such Loan Party from its obligations under the applicable Collateral Documents, in each case
in accordance with the terms of the Loan Documents and this Section 9.11.

 

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Section 9.12 No Other Duties, etc.

. Anything herein to the contrary notwithstanding, none of the bookrunners, arrangers, documentation agents or syndication agents 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 an Issuing Bank hereunder.

Section 9.13 Right to Realize on Collateral and Enforce Guarantee

. Anything contained in any of the Loan Documents to the contrary notwithstanding, the Borrower, the Administrative Agent and each Lender hereby agree that (i) no Lender shall have any right individually to realize upon any of the Collateral or enforce the Collateral Documents, it being understood and agreed that all powers, rights and remedies hereunder and under the Collateral Documents may be exercised solely by the Administrative Agent, and (ii) in the event of a foreclosure by the Administrative Agent
on any of the Collateral pursuant a public or private sale or other disposition, the Administrative Agent or any Lender may be the purchaser or licensor of any or all of such Collateral at any such sale or other disposition and the Administrative Agent, as agent for and representative of the Lenders (but not any Lender or Lenders in its or their respective individual capacities unless the Required Lenders shall otherwise agree in writing), shall be entitled, for the purpose of bidding and making settlement or
payment of the purchase price for all or any portion of the Collateral sold at any such public sale, use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Administrative Agent at such sale or other disposition.

Section 9.14 Hedging Obligations and Bank Product Obligations

. No Bank Product Provider or Lender-Related Hedge Provider that obtains the benefits of Section 8.2, the Collateral Documents or any Collateral by virtue of the provisions hereof or of any other Loan 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 IX 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, Bank Product Obligations and Hedging Obligations unless the Administrative Agent has received written notice of such Obligations, together with such supporting documentation as the Administrative
Agent may request, from the applicable Bank Product Provider or Lender-Related Hedge Provider, as the case may be.

ARTICLE X

THE GUARANTY

Section 10.1 The Guaranty

. Each of the Guarantors hereby jointly and severally guarantees to the Administrative Agent, each Lender, each Affiliate of a Lender that enters into Bank Products or a Hedging Transaction with the Borrower or any Subsidiary, and each other holder of the Obligations as hereinafter provided, as primary obligor and not as surety, the prompt payment of the Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise)
strictly in accordance with the terms thereof. The Guarantors hereby further agree that if any of the Obligations is not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization 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, as a mandatory cash collateralization or otherwise) in accordance with the terms of such extension or renewal.

 

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Notwithstanding any provision to the contrary contained herein or in any other of the Loan Documents or the other documents relating to the Obligations, the obligations of each Guarantor under this Agreement and the other Loan Documents shall not exceed an aggregate amount equal to the largest amount that would not render such obligations subject
to avoidance under applicable Debtor Relief Laws.

Section 10.2 Obligations Unconditional

. The obligations of the Guarantors under Section 10.1 are joint and several, absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents or other documents relating to the Obligations, 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
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 10.2 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 Borrower or any other Guarantor for amounts
paid under this Article X until such time as the Obligations have been paid in full and the Commitments have expired or 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:

(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 Loan Documents or any other document relating to the Obligations 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 Loan Documents or any other document relating to the Obligations
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 Administrative Agent or any other holder of the Obligations 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 for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including 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 Administrative Agent or any other holder of the Obligations exhaust any right, power or remedy or proceed against any Person under any of the Loan Documents or
any other document relating to the Obligations or against any other Person under any other guarantee of, or security for, any of the Obligations.

 

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Section 10.3 Reinstatement

. The obligations of each Guarantor under this Article X 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 Debtor Relief Law or otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each other holder of the Obligations
on demand for all reasonable costs and expenses (including the fees, charges and disbursements of counsel) incurred by the Administrative Agent or such holder of the Obligations 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 Debtor Relief Law.

Section 10.4 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 10.2 and through the exercise of rights of contribution pursuant to Section 10.6.

Section 10.5 Remedies

. The Guarantors agree that, to the fullest extent permitted by Law, as between the Guarantors, on the one hand, and the Administrative Agent and the other holders of the Obligations, on the other hand, the Obligations may be declared to be forthwith due and payable as specified in Section 9.2 (and shall be deemed to have become automatically due and payable in the circumstances specified in Section 9.2)
for purposes of Section 10.1 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 10.1. The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the holders of the Obligations may exercise their remedies thereunder in accordance with the terms thereof.

Section 10.6 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 Loan Documents and no Guarantor shall exercise such rights of contribution until the Obligations have been paid in full and the Commitments have terminated.

Section 10.7 Guarantee of Payment; Continuing Guarantee

. The guarantee in this Article X is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to the Obligations whenever arising.

Section 10.8 Keepwell

. Each Qualified ECP Guarantor hereby jointly and severally absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Specified Loan Party to honor all of such Specified Loan Party’s obligations under this Agreement and the other Loan Documents in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 10.8 for
the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 10.8 or otherwise under this Agreement voidable under applicable Law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of each Qualified ECP Guarantor under this Section 10.8 shall remain in full force and effect until the Obligations have been
indefeasibly paid and performed in full. Each Qualified ECP Guarantor intends that this Section 10.8 constitute, and this Section 10.8 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Specified Loan Party for all purposes of Section (18)(A)(v)(II) of the Commodity Exchange Act.

 

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ARTICLE XI

MISCELLANEOUS

Section 11.1 Notices

.

(a) Written Notices. Except in the case of notices and other communications expressly permitted to be given by telephone, all notices and other communications to any party herein to be effective
shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

 

To any Loan Party:                        Cross Country Healthcare, Inc.

6551 Park of Commerce Blvd.

Boca Raton, FL 33487

Attention: William J. Burns

Facsimile: (855) 322-1199

Email: wburns@crosscountry.com

 

To the Administrative Agent: 

SunTrust Bank

Agency Services

303 Peachtree Street, N.E./25th Floor

Atlanta, Georgia 30308

Attention: Mr. Doug Weltz

Facsimile: (404) 495-2170

Email: agency.services@suntrust.com

 

With copies (for

information purposes only) to: 

SunTrust Bank

777 Brickell Avenue/2nd Floor

Miami, Florida 33131

Attention: Mr. Shawn Wilson

Facsimile: (305) 579-7133

Email: shawn.p.wilson@suntrust.com

 

To SunTrust Bank, in its

capacity as an Issuing Bank: 

SunTrust Bank

245 Peachtree Center Avenue/17th Floor

Atlanta, Georgia 30303

Attention: Standby Letter of Credit Dept.

Facsimile: (404) 588-8129

 

To the Swingline Lender: 

SunTrust Bank

Agency Services

303 Peachtree Street, N.E./25th Floor

Atlanta, Georgia 30308

Attention: Mr. Doug Weltz

Facsimile: (404) 495-2170

 

To any other Lender: To the address or facsimile number, set forth in the Administrative Questionnaire or the Assignment and Acceptance executed by such Lender.

 

 

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Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications shall be effective upon actual receipt by the relevant Person or, if delivered by overnight courier service, upon the first Business Day after the date deposited with such courier service
for overnight (next-day) delivery or, if sent by telecopy, upon transmittal in legible form by facsimile machine or, if mailed, upon the third Business Day after the date deposited into the mail or, if delivered by hand, upon delivery; provided that notices delivered to the Administrative Agent, an Issuing Bank or the Swingline Lender shall not be effective until actually received by such Person at its address specified in this Section
11.1.

 

(i) Any agreement of the Administrative Agent, the Issuing Banks and the Lenders herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the Borrower. The Administrative Agent, the Issuing
Banks and the Lenders shall be entitled to rely on the authority of any Person purporting to be a Person authorized by the Borrower to give such notice and the Administrative Agent, the Issuing Banks and the Lenders shall not have any liability to the Borrower or other Person on account of any action taken or not taken by the Administrative Agent, the Issuing Banks and the Lenders in reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay the Loans and all other Obligations
hereunder shall not be affected in any way or to any extent by any failure of the Administrative Agent, the Issuing Banks and the Lenders to receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent, the Issuing Banks and the Lenders of a confirmation which is at variance with the terms understood by the Administrative Agent, the Issuing Banks and the Lenders to be contained in any such telephonic or facsimile notice.

(b) Electronic Communications.

(i) Notices and other communications to the Lenders and the Issuing Banks hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or any Issuing Bank pursuant to Article II unless such Lender or such Issuing Bank, as applicable, and Administrative Agent have agreed to receive notices under such Section by electronic communication and have agreed to the procedures governing such communications. Administrative Agent or Borrower may, in its discretion, agree to accept notices
and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

(ii) Unless 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); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient, 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.

 

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(iii) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make Communications (as defined below) available to the Issuing Banks and the other Lenders by posting the Communications on the Platform.

(iv) The Platform used by the Administrative Agent is provided “as is” and “as available.” The Agent Parties (as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or
omissions in the Communications. No warranty of any kind, express, implied or statutory, including, 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 Communications 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 Loan Party, any Lender, any Issuing Bank or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of any Loan Party’s or the Administrative Agent’s transmission of Communications through the Platform. “Communications” means, collectively, any notice,
demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or any Issuing Bank by means of electronic communications pursuant to this Section 11.1, including through the Platform.

Section 11.2 Waiver; Amendments

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(a) No failure or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or any other Loan Document, and no course of dealing between any Loan Party and the Administrative Agent or any Lender,
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or thereunder. The rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by Law. No waiver
of any provision of this Agreement or any other Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by clause (b) of this Section 11.2, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or the issuance
of a Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or any Issuing Bank may have had notice or knowledge of such Default or Event of Default at the time.

(b) No amendment or waiver of any provision of this Agreement or the other Loan Documents (other than the Fee Letter), nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Borrower and the Required Lenders or the Borrower and the Administrative Agent with the consent of the Required Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, that

 

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(i) no amendment or waiver shall:

(A) increase the Commitment of any Lender without the written consent of such Lender;

(B) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary to amend (x) the definition of “Default Interest” or waive any obligation of the Borrower to pay interest at Default Interest or increased Letter of Credit Fees pursuant to Section 2.14(c) and (y) 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 to reduce any fee payable hereunder;

(C) postpone the date fixed for any payment of any principal of, or interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date
for the termination or reduction of any Commitment, without the written consent of each Lender affected thereby;

(D) change Section 2.21(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby or change the provisions of Section
8.2, without the written consent of each Lender;

(E) change any of the provisions of this Section 11.2 or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders that are
required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the consent of each Lender;

(F) release the Borrower, or release all or substantially all of the Guarantors or limit the liability of all or substantially all of the Guarantors under the Guaranty, without the written consent of each Lender; or

(G) release all or substantially all of the Collateral securing any of the Obligations, without the written consent of each Lender or agree to subordinate any Lien in such collateral to any other creditor of the Borrower or any Subsidiary;

provided further, that no such agreement shall amend, modify or otherwise affect the rights, duties or obligations of the Administrative Agent, the Swingline Lender or any Issuing Bank without the prior written consent of such Person. Notwithstanding anything to the contrary herein, (i) no Defaulting Lender 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 Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that the Commitment of such Lender may not be increased or extended, and amounts payable to such Lender hereunder may not be permanently reduced without the consent of such Lender (other than reductions in fees and interest in
which such reduction does not disproportionately affect such Lender); (ii) this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) 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 Commitments of such Lender shall have terminated (but such Lender shall continue to be entitled to the benefits of Sections
2.18, 2.19, 2.20 and 11.3), such Lender shall have no other commitment or other 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; (iii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy reorganization plan that affects the Loans, and
each Lender 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 (iv) the Required Lenders shall determine whether or not to allow a Loan Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and such determination shall be binding on all of the Lenders.

 

 

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Section 11.3 Expenses; Indemnification

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(a) The Borrower shall pay (i) all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent, the Arranger and their Affiliates, including the reasonable and documented out-of-pocket fees, charges and disbursements
of one counsel for the Administrative Agent, the Arranger and their Affiliates (and, to the extent deemed reasonably necessary by the Administrative Agent or the Arranger, special and one local counsel in each jurisdiction), in connection with the syndication of the credit facilities provided for herein, the preparation and administration of the Loan Documents and any amendments, modifications or waivers thereof (whether or not the transactions contemplated in this Agreement or any other Loan Document shall be
consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket costs and expenses, including the reasonable and documented out-of-pocket fees, charges and disbursements of one counsel for the Administrative Agent, the Arranger, the Issuing Banks and the Lenders (and, to the extent deemed reasonably
necessary by such parties, special and one local counsel in each jurisdiction and, in the event of an actual or potential conflict of interest, one additional counsel for each of the foregoing subject to such conflict), incurred by the Administrative Agent, the Arranger, any Issuing Bank or any Lender in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents, including its rights under this Section 11.3,
or in connection with the Loans made or any Letters of Credit issued hereunder, including all such reasonable and documented out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

(b) The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), the Arranger, each Lender and each Issuing Bank, 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, penalties and related expenses (including the reasonable and documented out-of-pocket fees, charges and disbursements of one counsel for the Indemnitees (and special and one local counsel for the Indemnitees in each applicable jurisdiction deemed reasonably necessary by the Indemnitees, and in the event of an actual or potential conflict of interest, one additional counsel for each Indemnitee subject to such conflict)),
and shall indemnify and hold harmless each Indemnitee from all reasonable and documented fees and time charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party 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, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any actual or alleged Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities, penalties or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted (x) from the gross negligence, bad faith or willful misconduct of such Indemnitee (including any Related Party of such Indemnitee), (y) any settlement of any investigation, litigation or other proceeding (or expenses solely in respect of such settlement) effected
without the Borrower’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned), provided that if settled with the Borrower’s prior written consent, or if there is a final judgment against an Indemnitee in any such investigation, litigation or other proceeding, the Borrower shall indemnify and hold harmless each Indemnitee to the extent and in the manner set forth above or (z) disputes arising solely among Indemnitees,
other than (A) disputes involving SunTrust Bank solely in its capacity as Administrative Agent or the Arranger in its capacities as lead arranger and/or bookrunner hereunder and (B) claims arising out of any act or omission of the Borrower or any of its Subsidiaries or Affiliates. This Section 11.3(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

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(c) To the extent that the Borrower fails to pay any amount required to be paid to the Administrative Agent, any Issuing Bank or the Swingline Lender under clause (a) or (b) hereof,
each Lender severally agrees to pay to the Administrative Agent, the applicable Issuing Bank or the Swingline Lender, as the case may be, such Lender’s Pro Rata Share (determined as of the time that the unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided, that the unreimbursed expense or indemnified payment, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative
Agent, any Issuing Bank or the Swingline Lender in its capacity as such.

(d) To the extent permitted by applicable Law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct
damages) arising out of, in connection with or as a result of, this Agreement or any agreement or instrument contemplated hereby, the transactions contemplated therein, any Loan or any Letter of Credit or the use of proceeds thereof.

(e) All amounts due under this Section 11.3 shall be payable promptly after written demand therefor.

 

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Section 11.4 Successors and Assigns

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(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not 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 clause (b) of this Section 11.4, (ii) by way of participation in accordance with the provisions of clause (d) of
this Section11.4 or (iii) by way of pledge or assignment of a security interest subject to the restrictions of clause (f) of this Section 11.4 (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 clause (d) of this Section 11.4 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) 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 Commitments, Loans, and other Revolving Credit Exposure at the time owing to
it); provided that 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 Commitments, Loans and other Revolving Credit Exposure at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender
or an Approved Fund, no minimum amount need be assigned; and

(B) in any case not described in clause (b)(i)(A) of this Section 11.4, the aggregate amount of the Commitment (which for this purpose includes
Loans and Revolving Credit Exposure outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans and Revolving Credit Exposure of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Acceptance, as of the Trade Date) shall not be less than $1,000,000
with respect to Term Loans and $5,000,000 with respect to Revolving Loans and in minimum increments of $1,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents in writing (each such consent not to be unreasonably withheld or delayed).

(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 Loans, other Revolving Credit Exposure or the Commitments assigned.

(iii) Required Consents. No consent shall be required for any assignment except to the extent required by clause (b)(i)(B) of this Section
11.4 and, in addition:

 

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(A) the written consent of the Borrower (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, an Affiliate of a Lender or an Approved Fund;

(B) the written consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for (x) assignments to a Person that is not a Lender, an Affiliate of a Lender or an Approved Fund and (y) assignments
by Defaulting Lenders; and

(C) the written consent of each of the Issuing Banks (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters
of Credit (whether or not then outstanding), and the written consent of the Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Revolving Commitments.

(iv) Assignment and Acceptance. The parties to each assignment shall deliver to the Administrative Agent (A) a duly executed Assignment and Acceptance, (B) a processing and recordation fee of $3,500,
(C) an Administrative Questionnaire unless the assignee is already a Lender and (D) the documents required under Section 2.20 if such assignee is a Foreign Lender.

(v) No Assignment to Certain Persons. No such assignment shall be made to (A) the Borrower or any of the Borrower’s Affiliates or Subsidiaries or (B) to 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)(v).

(vi) No Assignment to Natural Persons. No such assignment shall be made to a natural person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to clause (c) of this Section 11.4, from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled
to the benefits of Sections 2.18, 2.19, 2.20 and 11.3 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this clause (a) 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 clause (d) of this Section 11.4. If the consent of the Borrower to an assignment is required hereunder (including a consent to an
assignment which does not meet the minimum assignment thresholds specified above), the Borrower shall be deemed to have given its consent five (5) Business Days after the date notice thereof has actually been delivered by the assigning Lender (through the Administrative Agent) to the Borrower,
unless such consent is expressly refused by the Borrower prior to such fifth Business Day.

 

 

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(c) The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Atlanta, Georgia a copy of each Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and Revolving Credit Exposure owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent 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 shall be available for inspection by the Borrower and any Lender at any reasonable time and from time to time upon reasonable prior notice.

(d) Any Lender may at any time, without the consent of, or notice to, the Borrower, the Administrative Agent, the Swingline Lender or the Issuing Banks sell participations to any Person (other than a natural person, the Borrower or any of the
Borrower’s Affiliates or Subsidiaries or a Defaulting Lender) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its 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 Borrower, the Administrative Agent, the Lenders, the Issuing Banks and the Swingline Lender shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.

(e) 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 with respect to the following to the extent affecting such Participant: (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the date fixed for any payment of any principal of, or interest on, any Loan or LC Disbursement or interest thereon or any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date for the termination or reduction of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.21(b) or (c) in
a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section 11.4 or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders which are required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the consent of each Lender; (vi)
release any Guarantor or limit the liability of any such Guarantor under any Guaranty without the written consent of each Lender except to the extent such release is expressly provided under the terms of this Agreement; or (vii) release all or substantially all collateral (if any) securing any of the Obligations. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.18, 2.19, and 2.20 (subject
to the requirements and limitations therein, including the requirements under Section 2.20(g) (it being understood that the documentation required under Section 2.20(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 clause (b) of this Section 11.4; provided that
such Participant (A) agrees to be subject to the provisions of Sections 2.24 and 2.25 as if it were an assignee under clause (b) of this Section 11.4; and (B) shall not be entitled to receive any greater payment under Sections 2.18 or 2.20,
with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with Borrower to effectuate the provision of Section 2.25 with respect
to any Participant. To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 11.7 as though it were a Lender, provided such Participant agrees to be subject to Section 2.21 as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each
Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other
obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement
notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

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(f) 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.

Section 11.5 Governing Law; Jurisdiction; Consent to Service of Process

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(a) This Agreement and the other Loan Documents 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 Loan Document (except, as
to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be construed in accordance with and be governed by the Law of the State of New York.

(b) Each Loan Party hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United States District Court of the Southern District of New York, and of the Supreme Court of the State of
New York sitting in New York county and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such District Court or New York state court or, to the extent permitted
by applicable Law, such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan
Party or its properties in the courts of any jurisdiction.

 

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(c) Each Loan Party irrevocably and unconditionally waives any objection that it may now or hereafter have to the laying of venue of any such suit, action or proceeding described in clause (b) of
this Section 11.5 and brought in any court referred to in clause (b) of this Section 11.5. Each of the parties hereto 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) Each party to this Agreement irrevocably consents to the service of process in the manner provided for notices in Section 11.1. Nothing in this Agreement or in any other Loan Document will affect
the right of any party hereto to serve process in any other manner permitted by Law.

Section 11.6 WAIVER OF JURY TRIAL

. EACH PARTY HERETO 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 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 (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.6.

Section 11.7 Right of Setoff

. In addition to any rights now or hereafter granted under applicable Law and not by way of limitation of any such rights, each Lender and each Issuing Bank shall have the right, at any time or from time to time upon the occurrence and during the continuance of an Event of Default, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable Law, to set off and apply against all deposits (general or special, time or demand, provisional
or final) of the Borrower at any time held or other obligations at any time owing by such Lender and such Issuing Bank to or for the credit or the account of the Borrower against any and all Obligations held by such Lender or such Issuing Bank, as the case may be, irrespective of whether such Lender or such Issuing Bank shall have made demand hereunder and although such Obligations may be unmatured. Each of the Lenders and the Issuing Banks agrees promptly to notify the Administrative Agent and the Borrower after
any such set-off and any application made by such Lender and such Issuing Bank, as the case may be; provided, that the failure to give such notice shall not affect the validity of such set-off and application. Each of the Lenders and the Issuing Banks agrees to apply all amounts collected from any such set-off to the Obligations before applying such amounts to any other Indebtedness or other obligations owed by the Borrower and any of its Subsidiaries to such Lender
or such Issuing Bank.

Section 11.8 Counterparts; Integration

. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Agreement, the Fee Letter, the other Loan Documents, and any separate letter agreement(s) relating to any fees payable to the Administrative Agent and its Affiliates constitute the entire agreement among the parties hereto and thereto and their affiliates regarding
the subject matters hereof and thereof and supersede all prior agreements and understandings, oral or written, regarding such subject matters. Delivery of an executed counterpart of a signature page of this Agreement and any other Loan Document by facsimile transmission or by any other electronic imaging means (including .pdf), shall be effective as delivery of a manually executed counterpart of this Agreement or such other Loan Document.

 

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Section 11.9 Survival

. All covenants, agreements, representations and warranties made by any Loan Party herein, in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.18, 2.19, 2.20, and 11.3 and Article IX shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and
the Commitments or the termination of this Agreement or any provision hereof. All representations and warranties made herein, in the Loan Documents, in the certificates, reports, notices, and other documents delivered pursuant to this Agreement shall survive the execution and delivery of this Agreement and the other Loan Documents, and the making of the Loans and the issuance of the Letters of Credit.

Section 11.10 Severability

. Any provision of this Agreement or any other Loan Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

Section 11.11 Confidentiality

. Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to take normal and reasonable precautions to maintain the confidentiality of any information relating to the Borrower or any of its Subsidiaries or any of their respective businesses, to the extent designated in writing as confidential and provided to it by the Borrower or any Subsidiary, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior
to disclosure by the Borrower or any of its Subsidiaries, except that such information may be disclosed (i) to any Related Party of the Administrative Agent, any such Issuing Bank or any such Lender including without limitation accountants, legal counsel and other advisors, (ii) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process, (iii) to the extent requested by any regulatory agency or authority purporting to have jurisdiction over it (including any self-regulatory
authority such as the National Association of Insurance Commissioners), (iv) to the extent that such information becomes publicly available other than as a result of a breach of this Section 11.11, or which becomes available to the Administrative Agent, any Issuing Bank, any Lender or any Related Party of any of the foregoing on a non-confidential basis from a source other than the Borrower, (v) in connection with the exercise of any remedy hereunder or under any
other Loan Documents or any suit, action or proceeding relating to this Agreement or any other Loan Documents or the enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 11.11, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, or (B) any actual or prospective party (or its Related
Parties) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (vii) any rating agency, (viii) the CUSIP Service Bureau or any similar organization, or (ix) with the consent of the Borrower. Any Person required to maintain the confidentiality of any information as provided for in this Section 11.11 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 its own confidential information.

 

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Section 11.12 Interest Rate Limitation

. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on such Loan under applicable Law (collectively, the “Charges”), shall exceed the maximum lawful rate of interest (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved
by a Lender holding such Loan in accordance with applicable Law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section 11.12 shall be cumulated and the interest and Charges payable to such Lender
in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate to the date of repayment (to the extent permitted by applicable Law), shall have been received by such Lender.

Section 11.13 Waiver of Effect of Corporate Seal

. Each Loan Party represents and warrants to the Administrative Agent and the Lenders that neither it nor any other Loan Party is required to affix its corporate seal to this Agreement or any other Loan Document pursuant to any Law, agrees that this Agreement is delivered by Borrower under seal and waives any shortening of the statute of limitations that may result from not affixing the corporate seal to this Agreement or such other Loan Documents.

Section 11.14 Patriot Act

. The Administrative Agent and each Lender hereby notifies the Loan Parties that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify such Loan Party in accordance with the Patriot Act.

Section 11.15 No Advisory or Fiduciary Responsibility

. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), Borrower and each other Loan Party acknowledges and agrees and acknowledges its Affiliates' understanding that that:  (i) (A) the services regarding this Agreement  provided by the Administrative Agent, the Arranger and/or the Lenders are arm’s-length commercial transactions between  Borrower, each other
Loan Party and their respective Affiliates, on the one hand, and the Administrative Agent, the Arranger and the Lenders, on the other hand, (B) each of Borrower and the other Loan Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate, and (C) Borrower and each other Loan Party 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; (ii) (A) each of the Administrative Agent, the Arranger and the Lenders  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 Borrower, any other Loan Party, or any of their respective Affiliates, or any other Person and (B) none of the Administrative Agent, the Arranger and any Lender has any obligation to Borrower, any other Loan Party or
any of their Affiliates  with respect to the transaction contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii)  the Administrative Agent, the Arranger, the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of Borrower, the other Loan Parties and their respective Affiliates, and each of the Administrative Agent, the Arranger and the Lenders has no obligation
to disclose any of such interests to  Borrower, any other Loan Party of any of their respective Affiliates.  To the fullest extent permitted by Law, each of Borrower and the other Loan Parties hereby waive and release, any claims that it may have against the Administrative Agent, the Arranger and each Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

109

 

Section 11.16 Electronic Execution of Assignments and Certain Other Documents

. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Acceptance or in any amendment or other modification hereof (including waivers and consents) 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 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 Lender that is an 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 Lender 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.

 

 

 

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110

 

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

 

BORROWER:                                                                   
CROSS COUNTRY HEALTHCARE, INC.,

a Delaware corporation

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Chief Financial Officer

 

GUARANTORS:                                                              
CEJKA SEARCH, INC.,

a Delaware corporation

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

CROSS COUNTRY STAFFING, INC.,

a Delaware corporation

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

MDA HOLDINGS, INC.,

a Delaware corporation

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

ASSIGNMENT AMERICA, LLC,

a Delaware limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

TRAVEL STAFF, LLC,

a Delaware limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

LOCAL STAFF, LLC,

a Delaware limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

MEDICAL DOCTOR ASSOCIATES, LLC,

a Delaware limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

CREDENT VERIFICATION AND LICENSING SERVICES, LLC,

a Delaware limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

OWS, LLC,

a Delaware limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

NEW MEDISCAN II, LLC,

a California limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

MEDISCAN NURSING STAFFING, LLC,

a California limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:         Vice President

 

MEDISCAN DIAGNOSTIC SERVICES, LLC,

a California limited liability company

 

 

 

By:             /s/ William J. Burns______________

Name:       William J. Burns

Title:          Vice President

 

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

ADMINISTRATIVE SUNTRUST BANK,

AGENT: as Administrative Agent, as an Issuing Bank, as Swingline Lender and as a Lender

 

 

 

By:             /s/ Sheryl Squires Kerley_________

Name:       Sheryl Squires Kerley

Title:         Vice President

 

 

 

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

LENDERS:                                                                            BMO
HARRIS BANK, N.A.

 

 

 

By:             /s/ L.M. Junior Del Brocco_______

Name:       L.M. Junior Del Brocco

Title:         Director

 

 

 

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

BANK UNITED, N.A.

 

 

 

By:             /s/ Vanessa C. Civalero___________

Name:       Vanessa C. Civalero

Title:         Senior Vice President

 

 

 

 

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

FIFTH THIRD BANK

 

 

 

By:             /s/ John McChesney______________

Name:       John McChesney

Title:         Officer

 

 

 

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

BANK OF AMERICA, N.A.

 

 

 

By:             /s/ E. Mark Hardison______________

Name:       Mark Hardison

Title:         Senior Vice President

 

 

 

 

 

  CREDIT AGREEMENT

  CROSS COUNTRY HEALTHCARE, INC.

 

CADENCE BANK

 

 

 

By:             /s/ William H. Crawford___________

Name:       William H. Crawford

Title:         Executive Vice President

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