Document:

Document

Published CUSIP Number:        86037EAA3
Revolving Credit CUSIP Number:    86037EAB1
Term Loan CUSIP Number:        86037EAC9

$200,000,000 REVOLVING CREDIT FACILITY
$400,000,000 TERM LOAN
CREDIT AGREEMENT
by and among
STEWART INFORMATION SERVICES CORPORATION
and
THE GUARANTORS PARTY HERETO
and
THE LENDERS PARTY HERETO
and
PNC BANK, NATIONAL ASSOCIATION,
as Administrative Agent, Swingline Loan Lender and Issuing Lender
PNC CAPITAL MARKETS LLC,
as Sole Lead Arranger and Sole Bookrunner
and
FIFTH THIRD BANK, REGIONS BANK and CITIZENS BANK,
as Co-Syndication Agents
and
IBERIABANK, a division of First Horizon, and 
ZIONS BANCORPORATION, N.A. dba Amegy Bank,
as Co-Documentation Agents
Dated as of October 28, 2021

TABLE OF CONTENTS

Page

ARTICLE 1    CERTAIN DEFINITIONS    1
1.1    Certain Definitions    1
1.2    “Construction”    27
1.3    “Accounting Principles; Changes in GAAP”    28
1.4    “LIBOR Notification”    28
ARTICLE 2    REVOLVING CREDIT AND SWINGLINE LOAN FACILITIES    29
2.1    Revolving Credit Commitments    29
2.2    Nature of Lenders’ Obligations with Respect to Revolving Credit Loans    29
2.3    Commitment Fees    29
2.4    Termination or Reduction of Revolving Credit Commitments    30
2.5    Revolving Credit Loan Requests; Conversions and Renewals; Swingline Loan Requests    30
2.6    Making Revolving Credit Loans and Swingline Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swingline Loans    31
2.7    Notes    33
2.8    Letter of Credit Subfacility    33
2.9    Defaulting Lenders    40
2.10    Maturity Extensions    43
2.11    Incremental Loans    44
ARTICLE 3    TERM LOANS    46
3.1    Term Loan Commitments    46
3.2    Nature of Lenders’ Obligations with Respect to Term Loans; Repayment Terms    46
3.3    Termination or Reduction of Term Loan Commitments    47
3.4    Commitment Fees    47
ARTICLE 4    INTEREST RATES    47
4.1    Interest Rate Options    47
4.2    Interest Periods    48
4.3    Interest After Default    49
4.4    LIBOR Rate Unascertainable; Increased Costs; Deposits Not Available; Illegality; Benchmark Replacement Setting    49
4.5    Selection of Interest Rate Options    59
ARTICLE 5    PAYMENTS; Taxes; Yield maintenance    59
5.1    Payments    59
5.2    Voluntary Prepayments    60
5.3    [Reserved]    61
5.4    Pro Rata Treatment of Lenders    61
5.5    Sharing of Payments by Lenders    61
									
		-i-
	

TABLE OF CONTENTS
(continued)
Page

5.6    Administrative Agent’s Clawback    62
5.7    Interest Payment Dates    63
5.8    Increased Costs    63
5.9    Taxes.    64
5.10    Indemnity    68
5.11    Settlement Date Procedures    69
5.12    Cash Collateral    69
5.13    Replacement of a Lender    70
5.14    Designation of a Different Lending Office    71
ARTICLE 6    REPRESENTATIONS AND WARRANTIES    71
6.1    Organization    71
6.2    Authority Relative to this Agreement    72
6.3    No Violation    72
6.4    Financial Statements; No Material Adverse Change    72
6.5    Litigation    73
6.6    Compliance with Law and Agreements    73
6.7    Properties    73
6.8    Intellectual Property    73
6.9    Taxes    73
6.10    Environmental Compliance    74
6.11    Investment Company Status    74
6.12    Insurance    74
6.13    Solvency    74
6.14    ERISA    74
6.15    Disclosure    74
6.16    EEA Financial Institutions    75
6.17    Margin Stock    75
6.18    [Intentionally Omitted]    75
6.19    Sanctions and other Anti-Terrorism Laws    75
6.20    Anti-Corruption Laws    75
6.21    Certificate of Beneficial Ownership    75
ARTICLE 7    CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT    75
7.1    Initial Loans and Letters of Credit Made on the Closing Date    75
7.2    Each Loan or Letter of Credit    77
ARTICLE 8    AFFIRMATIVE COVENANTS    77
8.1    Existence; Conduct of Business    78
8.2    Payment of Obligations    78
8.3    Maintenance of Properties; Insurance    78
8.4    Books and Records; Inspection Rights    78
8.5    Compliance with Laws    78
									
		-ii-
	

TABLE OF CONTENTS
(continued)
Page

8.6    Use of Proceeds and Letters of Credit    78
8.7    Maintain Business    79
8.8    Accuracy of Information    79
8.9    Sanctions and other Anti-Terrorism Laws; Anti-Corruption Laws    79
8.10    Reporting Requirements    79
8.11    Notices of Material Events    81
8.12    Certificate of Beneficial Ownership and Other Additional Information    82
ARTICLE 9    NEGATIVE COVENANTS    82
9.1    Indebtedness    82
9.2    Liens    83
9.3    Fundamental Changes    84
9.4    Asset Sales    84
9.5    Investments    85
9.6    Swap Agreements    86
9.7    Restricted Payments    86
9.8    Transactions with Affiliates    87
9.9    Restrictive Agreements    87
9.10    Debt to Total Capitalization Ratio    87
9.11    Minimum Net Worth    87
9.12    Sanctions and other Anti-Terrorism Laws    87
9.13    Anti-Corruption Laws    88
ARTICLE 10    DEFAULT    88
10.1    Events of Default    88
10.2    Consequences of Event of Default    90
10.3    Application of Proceeds    92
ARTICLE 11    THE ADMINISTRATIVE AGENT    93
11.1    Appointment and Authority    93
11.2    Rights as a Lender    93
11.3    Exculpatory Provisions    93
11.4    Reliance by Administrative Agent    95
11.5    Delegation of Duties    95
11.6    Resignation of Administrative Agent    95
11.7    Non-Reliance on Administrative Agent and Other Lenders    96
11.8    No Other Duties, Etc    96
11.9    Administrative Agent’s Fee    97
11.10    Administrative Agent May File Proofs of Claim    97
11.11    No Reliance on Administrative Agent’s Customer 
Identification Program    97
11.12    ERISA Matters    98
11.13    Erroneous Payments    99
									
		-iii-
	

TABLE OF CONTENTS
(continued)
Page

ARTICLE 12    MISCELLANEOUS    102
12.1    Modifications, Amendments or Waivers    102
12.2    No Implied Waivers; Cumulative Remedies    103
12.3    Expenses; Indemnity; Damage Waiver    104
12.4    Holidays    106
12.5    Notices; Effectiveness; Electronic Communication    106
12.6    Severability    108
12.7    Duration; Survival    108
12.8    Successors and Assigns    109
12.9    Confidentiality    113
12.10    Counterparts; Integration; Effectiveness; Electronic Execution    115
12.11    CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL    115
12.12    Acknowledgement and Consent to Bail-In of Affected Financial Institutions    117
12.13    USA PATRIOT Act Notice    117
12.14    Acknowledgement Regarding Any Supported QFCs    117
									
		-iv-
	

CREDIT AGREEMENT
THIS CREDIT AGREEMENT is dated as of October 28, 2021 and is made by and among STEWART INFORMATION SERVICES CORPORATION, a Delaware corporation (the “Borrower”), the GUARANTORS (as hereinafter defined), the LENDERS (as hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as the Administrative Agent (as hereinafter defined), Swingline Loan Lender (as hereinafter defined) and Issuing Lender (as hereinafter defined).
The Borrower has requested the Lenders to provide (i) a revolving credit facility to the Borrower in an aggregate principal amount not to exceed $200,000,000, including therein a Swingline Loan (as hereinafter defined) subfacility and a Letter of Credit (as hereinafter defined) subfacility and (ii) a $400,000,000 term loan facility.  In consideration of their mutual covenants and agreements hereinafter specified and intending to be legally bound hereby, the parties hereto covenant and agree as follows:
ARTICLE 1

CERTAIN DEFINITIONS
1.1Certain Definitions.  In addition to words and terms defined elsewhere in this Agreement, the following words and terms shall have the following meanings, respectively, unless the context hereof clearly requires otherwise:
“Administrative Agent” means PNC Bank, National Association, in its capacity as administrative agent hereunder or any successor administrative agent.
“Administrative Agent’s Fee” means as is specified in Section 11.9 [Administrative Agent’s Fee].
“Administrative Agent’s Letter” means as is specified in Section 11.9 [Administrative Agent’s Fee].
“Administrative Questionnaire” means an administrative questionnaire in a form supplied by the Administrative Agent.
“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.
“Affiliate” means, with respect to a specified Person, another Person that directly or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
“Agent Parties” means as is specified in Section 12.5(d)(ii).
“Agreement” shall mean this Credit Agreement, as the same may be amended, supplemented, modified or restated from time to time, including all schedules and exhibits.
1

“Alternate Source” means as is specified in the definition of LIBOR Rate.
“Anti-Corruption Laws” means the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery Act 2010, and any other similar anti-corruption Laws or regulations  administered or enforced in any jurisdiction in which the Borrower or any of its Subsidiaries conduct business.
“Anti-Terrorism Law” means any Law in force or hereinafter enacted related to terrorism, money laundering, or economic sanctions, including Executive Order No. 13224, the USA PATRIOT Act, the International Emergency Economic Powers Act, 50 U.S.C. 1701, et. seq., the Trading with the Enemy Act, 50 U.S.C. App. 1, et. seq., 18 U.S.C. § 2332d, and 18 U.S.C. § 2339B, and any regulations or directives promulgated under these provisions.
“Applicable Margin” means the corresponding percentages per annum as specified under and in accordance with the terms set forth below based on the Debt to Total Capitalization Ratio:
																								
	Level
	Debt to Total Capitalization Ratio
	Commitment
Fee
	Letter of Credit Fee	Revolving Credit Base Rate Spread	Term Loan Base Rate Spread	Revolving Credit LIBOR Rate Spread	Term Loan LIBOR Rate Spread
	I
	Less than 0.15 to
 1.0
	0.15%	1.25%	0.25%	0%	1.25%	0.875%
	II
	Greater than or equal to 0.15 to 1.0 but less than 0.20 to 1.0
	0.20%	1.375%	0.375%	0%	1.375%	1.00%
	III
	Greater than or equal to 0.20 to 1.0 but less than 0.25 to 1.0
	0.25%	1.50%	0.50%	0.125%	1.50%	1.125%
	IV
	Greater than or equal to 0.25 to 1.0
	0.30%	1.625%	0.625%	0.25%	1.625%	1.25%

2

For purposes of determining the Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate:
(a)    The Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate shall be set at Pricing Level III from the Closing Date until delivery of a Compliance Certificate for the fiscal quarter ended December 31, 2021.
(b)    The Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate shall be recomputed as of the end of each fiscal quarter ending after the Closing Date based on the Debt to Total Capitalization Ratio as of such quarter end.  Any increase or decrease in the Applicable Margin, the Applicable Commitment Fee Rate or the Applicable Letter of Credit Fee Rate computed as of a quarter end shall be effective on the date on which the Compliance Certificate evidencing such computation is due to be delivered under Section 8.10 [Reporting Requirements].  If a Compliance Certificate is not delivered when due in accordance with such Section 8.10, then the rates in Level IV shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered.
(c)    If, as a result of any restatement of or other adjustment to the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Debt to Total Capitalization Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Debt to Total Capitalization Ratio would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for the account of the applicable Lenders, promptly on demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, automatically and without further action by the Administrative Agent, any Lender or the Issuing Lender), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.  This paragraph shall not limit the rights of the Administrative Agent, any Lender or the Issuing Lender, as the case may be, under Section 2.8 [Letter of Credit Subfacility] or Section 4.3 [Interest After Default] or Article 10 [Default].  The Borrower’s obligations under this paragraph shall survive the termination of the Commitments and the repayment of all other Obligations hereunder.

3

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Asset Sale” means the sale, transfer, lease or disposition (in one transaction or in a series of transactions and whether effected pursuant to a Division or otherwise) by the Borrower or any of its Subsidiaries to any Person other than the Borrower or any of its Subsidiaries of (a) any of the Equity Interest in any of the Borrower’s Subsidiaries, (b) substantially all of the assets of any division or line of business of the Borrower or any of its Subsidiaries, or (c) any other assets (whether tangible or intangible) of the Borrower or any of its Subsidiaries including, without limitation, any accounts receivable (other than (i) inventory sold in the ordinary course of business, (ii) Permitted Investments, and (iii) obsolete, worn out or surplus equipment).
“Assignment and Assumption Agreement” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 12.8 [Successors and Assigns]), and accepted by the Administrative Agent, in substantially the form of Exhibit A or any other form approved by the Administrative Agent.
“Authorized Officer” means, with respect to any Loan Party, the Chief Executive Officer, President, Chief Financial Officer, Senior Vice President, Treasurer or Assistant Treasurer of such Loan Party, any manager or the members (as applicable) in the case of any Loan Party which is a limited liability company, or such other individuals, designated by written notice to the Administrative Agent from the Borrower, authorized to execute notices, reports and other documents on behalf of such Loan Party required hereunder.  The Borrower may amend such list of individuals from time to time by giving written notice of such amendment to the Administrative Agent.
“Bail-In Action” shall mean the exercise of any Write-down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom,  Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
“Base Rate” means, for any day, a fluctuating per annum rate of interest equal to the highest of (i) the Overnight Bank Funding Rate, plus 0.5%, (ii) the Prime Rate, and (iii) the Daily LIBOR Rate, plus 1.00%, so long as Daily LIBOR Rate is offered, ascertainable and not unlawful.  Any change in the Base Rate (or any component thereof) shall take effect at the opening of business on the day such change occurs. Base Rate Option means the option of the Borrower to have Loans bear interest at the rate and under the terms specified in either Section 4.1(a)(i) 
4

[Revolving Credit Base Rate Option] or Section 4.1(c)(i) [Term Loan Base Rate Option], as applicable.
“Beneficial Owner” shall mean, for each Borrower, each of the following:  (a) each individual, if any, who, directly or indirectly, owns 25% or more of such Borrower’s Equity Interests; and (b) a single individual with significant responsibility to control, manage, or direct such Borrower.
“Borrower” means as is specified in the introductory paragraph.
“Borrowing Date” means, with respect to any Loan, the date of the making, renewal or conversion thereof, which shall be a Business Day.
“Borrowing Tranche” means specified portions of Loans outstanding as follows:  (a) any Loans to which a LIBOR Rate Option applies by the Borrower and which have the same Interest Period shall constitute one Borrowing Tranche, and (b) all Loans to which a Base Rate Option applies shall constitute one Borrowing Tranche.
“Business Day” means any day other than a Saturday or Sunday or a legal holiday on which commercial banks are authorized or required to be closed, or are in fact closed, for business in Pittsburgh, Pennsylvania (or, if otherwise, the Lending Office of the Administrative Agent) and if the applicable Business Day relates to any Loan to which the LIBOR Rate Option applies, such day must also be a day on which dealings are carried on in the London interbank market.
“Cash Collateralize” means, to pledge and deposit with or deliver to the Administrative Agent, for the benefit of one or more of the Issuing Lender or the Lenders, as collateral for Letter of Credit Obligations or obligations of Lenders to fund participations in respect of Letter of Credit Obligations, cash or deposit account balances or, if the Administrative Agent and each applicable Issuing Lender shall agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory to the Administrative Agent and each applicable Issuing Lender.  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.
“Cash Equivalents” means, collectively, such items described in clauses (a), (b), (c) and (d) of the definition of Permitted Investments.
“Certificate of Beneficial Ownership”  means, for each Borrower, a certificate in form and substance acceptable to the Administrative Agent (as amended or modified by the Administrative Agent from time to time in its sole discretion), certifying, among other things, the Beneficial Owner of such Borrower.
“CEA” means the Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in the administration, interpretation, implementation or application thereof by any Official Body or 
5

(c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of Law) by any Official Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines, interpretations or directives thereunder or issued in connection therewith (whether or not having the force of Law) and (y) all requests, rules, regulations, guidelines, interpretations or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities (whether or not having the force of Law), in each case pursuant to Basel III, shall in each case be deemed to be a Change in Law regardless of the date enacted, adopted, issued, promulgated or implemented.
“Change of Control” means (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) that becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934), except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire (such right, an “option right”), directly or indirectly, of 40% or more of the Equity Interests of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the borrower on a fully-diluted basis (and taking into account all such securities that such “person” or “group” has the right to acquire pursuant to any option right); or (b) during any period of 24 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Borrower ceases to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.
“CIP Regulations” means as is specified in Section 11.11 [No Reliance on Administrative Agent’s Customer Identification Program].
“Class”, when used in reference to any Loan, refers to whether such Loan, or the advances comprising such Loans, are Term Loans, Revolving Credit Loans or Swingline Loans and, when used in reference to any Lender, refers to whether such Lender has any (a) outstanding Revolving Credit Loans or Revolving Credit Commitments or (b) Term Loan Commitments or Term Loans.
“Closing Date” means the Business Day on which the conditions specified in Section_7.1 [Initial Loans and Letters of Credit] shall be first satisfied.
“Code” means the Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute of similar import, and the rules and regulations thereunder, as from time to time in effect.
6

“Commitment” means, as to any Lender, its Revolving Credit Commitment, Term Loan Commitment and, in the case of PNC (in its capacity as the Swingline Loan Lender), its Swingline Loan Commitment (but not the aggregate of its Revolving Credit Commitment and its Swingline Loan Commitment), and Commitments means the aggregate of the Revolving Credit Commitments and Term Loan Commitments of all of the Lenders.
“Commitment Fee” means as is specified in Section 2.3 [Commitment Fees].
“Communications” means as is specified in Section 12.5(d)(ii) [Platform].
“Compliance Certificate” means a certificate in the form of Exhibit B.
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Consolidated Funded Indebtedness” means, as of the last day of any fiscal quarter, the aggregate (without duplication) of all Indebtedness of Borrower and its Subsidiaries as of such date, determined on a consolidated basis in accordance with GAAP that should be reflected on Borrower’s consolidated balance sheet in accordance with GAAP (exclusive of Indebtedness under Investment Securities Lines, contingent liabilities related to escrow and 1031 exchange accounts, letters of credit that are fully collateralized and contingent obligations of the Borrower or any of its Subsidiaries as an account party in respect of letters of credit and letters of guaranty).
“Consolidated Net Income” means, for any period, net income (or loss) for Borrower and its Subsidiaries for such period and as reflected on the consolidated financial statements of Borrower and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.
“Consolidated Net Worth” means, as of any date of determination, the consolidated shareholders’ equity of Borrower and its Subsidiaries (excluding noncontrolling interests) determined on a consolidated basis in accordance with GAAP and as reflected on the consolidated financial statements of Borrower and its Subsidiaries.
“Consolidated Total Capital” means, as of any date of determination, the sum of (i) Consolidated Net Worth as of such date and (ii) Consolidated Funded Indebtedness as of such date.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.
“Covered Entity”, other than as used in Section 12.4, means (a) the Borrower, each of Borrower’s Subsidiaries and all Guarantors, and (b) each Person that, directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition, control of a Person means the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or 
7

cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise.
“Daily LIBOR Rate” means, for any day, the rate per annum determined by the Administrative Agent by dividing (x) the Published Rate by (y) a number equal to 1.00 minus the LIBOR Reserve Percentage on such day.  The rate of interest will be adjusted automatically as of each Business Day based on changes in the Daily LIBOR Rate without notice to the Borrower. Notwithstanding the foregoing, if the Daily LIBOR Rate as determined above would be less than zero percent (0.00%), such rate shall be deemed to be zero percent (0.00%) for purposes of this Agreement.
“Debt to Total Capitalization Ratio” means the ratio of Consolidated Funded Indebtedness to Consolidated Total Capital.
“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.
“Defaulting Lender” means, subject to Section 2.9(b) [Defaulting Lender Cure], any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuing Lender, the Swingline Loan Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within two Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent, the Issuing Lender or the Swingline Loan Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-in Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by an Official Body so long as such ownership interest does not result in or provide such Lender with 
8

immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Official Body) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.9(b) [Defaulting Lender Cure]) upon delivery of written notice of such determination to the Borrower, the Issuing Lender, the Swingline Loan Lender and each Lender.
“Dividing Person” has the meaning assigned to it in the definition of “Division”.
“Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.
“Division Successor” means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division. A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division.
“Dollar”, “Dollars”, “U.S. Dollars” and the symbol “$” means, in each case, lawful money of the United States of America.
“Drawing Date” means as is specified in Section 2.8(c) [Disbursements, Reimbursement].
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Effective Date” means the date indicated in a document or agreement to be the date on which such document or agreement becomes effective, or, if there is no such indication, the date of execution of such document or agreement.
“Effective Federal Funds Rate” means for any day the rate per annum (based on a year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1% 
9

announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Effective Federal Funds Rate” as of the date of this Agreement; provided that if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the “Effective Federal Funds Rate” for such day shall be the Effective Federal Funds Rate for the last day on which such rate was announced.  Notwithstanding the foregoing, if the Effective Federal Funds Rate as determined under any method above would be less than zero percent (0.00%), such rate shall be deemed to be zero percent (0.00%) for purposes of this Agreement.
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 12.8(b)(iv) [Assignment and Assumption Agreement], (v) [No Assignment to Certain Persons] and (vi) [No Assignment to Natural Persons] (subject to such consents, if any, as may be required under Section 12.8(b)(iii) [Required Consents]).
“Eligible Contract Participant” means an “eligible contract participant” as defined in the CEA and regulations thereunder.
“Environmental Laws” means all applicable federal, state, local, tribal, territorial and foreign Laws (including common law), constitutions, statutes, treaties, regulations, rules, ordinances and codes and any consent decrees, settlement agreements, judgments, orders, directives, policies or programs issued by or entered into with an Official Body pertaining or relating to: (a) pollution or pollution control; (b) protection of human health from exposure to regulated substances; (c) protection of the environment and/or natural resources; (d) the presence, use, management, generation, manufacture, processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale, transport, storage, collection, distribution, disposal or release or threat of release of regulated substances; (e) the presence of contamination; (f) the protection of endangered or threatened species; and (g) the protection of environmentally sensitive areas.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity Interests” means, with respect to any Person, means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in such Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.
10

“ERISA” means the Employee Retirement Income Security Act of 1974, as the same may be amended or supplemented from time to time, and any successor statute of similar import, and the rules and regulations thereunder, as from time to time in effect.
“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any member of the ERISA Group of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any member of the ERISA Group from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any member of the ERISA Group of any liability with respect to the withdrawal or partial withdrawal of the Borrower or any member of the ERISA Group from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any member of the ERISA Group of any notice, or the receipt by any Multiemployer Plan from the Borrower or any member of the ERISA Group of any notice, concerning the imposition upon the Borrower or any member of the ERISA Group of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be insolvent, within the meaning of Title IV of ERISA.
“ERISA Group” means, at any time, the Borrower and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control and all other entities which, together with the Borrower, are treated as a single employer under Section 414 of the Code or Section 4001(b)(1) of ERISA.
“Erroneous Payment” has the meaning assigned to it in Section 11.13(a).
“Erroneous Payment Deficiency Assignment” has the meaning assigned to it in Section 11.13(d).
“Erroneous Payment Impacted Class” has the meaning assigned to it in Section 11.13(d).
“Erroneous Payment Return Deficiency” has the meaning assigned to it in Section 11.13(d).
“Erroneous Payment Subrogation Rights” has the meaning assigned to it in Section 11.13(d).
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
“Event of Default” means any of the events described in Section 10.1 [Events of Default].
11

“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the Laws of, or having its principal office or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in such Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 5.13 [Replacement of a Lender]) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 5.9(g) [Status of Lenders], 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 5.9(g) [Status of Lenders], and (d) any U.S. federal withholding Taxes imposed under FATCA (except to the extent imposed due to the failure of the Borrower to provide documentation or information to the IRS).
“Executive Order No. 13224” means the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.
“Existing Letters of Credit” means those letters of credit existing on the Closing Date and identified on Schedule 1.1(C).
“Existing Expiration Date” means as is specified in Section 2.10 [Maturity Extensions].
“Expiration Date” means, with respect to the Revolving Credit Commitments, October 28, 2026 as such date may be extended with respect to certain Lenders’ Revolving Credit Commitments pursuant to Section 2.10(a) [Requests for Extension] or Section 12.1 [Modifications, Amendments or Waivers].
“Facilities” means the Revolving Credit Facility and/or the Term Loan Facility, as the context may require.
“Facility Termination Date”  means the date as of which all of the following shall have occurred:  (a) the aggregate Commitments have been terminated, (b) all Obligations have been paid in full (other than contingent indemnification obligations that are not yet due), and (c) all Letters of Credit have terminated or expired (other than Letters of Credit as to which other arrangements with respect thereto reasonably satisfactory to the Administrative Agent (to the extent the Administrative Agent is a party to such arrangements) and the Issuing Lender, including the provision of cash collateral, shall have been made).
“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official 
12

interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
“Financial Officer” means the chief financial officer, principal accounting officer, chief risk officer, treasurer, assistant treasurer or controller of the Borrower.
“Foreign Lender” means (i) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (ii) 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.
“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the Issuing Lender, such Defaulting Lender’s Ratable Share of the outstanding Letter of Credit Obligations with respect to Letters of Credit issued by such Issuing Lender other than Letter of Credit Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to any Swingline Loan Lender, such Defaulting Lender’s Ratable Share of outstanding Swingline Loans made by such Swingline Loan Lender other than Swingline Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders.
“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.
“GAAP” means generally accepted accounting principles as are in effect from time to time, subject to the provisions of Section 1.3 [Accounting Principles; Changes in GAAP], and applied on a consistent basis both as to classification of items and amounts.
“Governmental Approval” means (a) any authorization, consent, approval, license, waiver, or exemption, by or with; (b) any notice to; (c) any declaration of or with; or (d) any registration by or with, or any other action or deemed action by or on behalf of, any Governmental Authority.
“Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Guarantors” means Stewart Title Company, a Texas corporation, and Stewart Lender Services, Inc., a Texas corporation.
“Guaranty” means, with respect to any Person, any obligation of such Person guaranteeing or in effect guaranteeing any Indebtedness of any other Person in any manner, whether directly or indirectly; provided, that the term guarantee shall not include endorsements for collection or deposit in the ordinary course of business.  The amount of obligations under a 
13

Guaranty shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guaranty is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by Borrower in good faith.
“Guaranty Agreement” means the Continuing Agreement of Guaranty and Suretyship, dated of even date herewith, executed and delivered by each of the Guarantors in favor of the Administrative Agent for the benefit of the Lenders.
“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.
“Increased Amount Date” means as is specified in Section 2.11 [Incremental Loans].
“Incremental Lender” means as is specified in Section 2.11 [Incremental Loans].
“Incremental Loan Commitments” means as is specified in Section 2.11 [Incremental Loans].
“Incremental Loans” means as is specified in Section 2.11 [Incremental Loans].
Incremental Revolving Credit Commitment means as is specified in Section 2.11 [Incremental Loans].
“Incremental Revolving Credit Increase” means as is specified in Section 2.11 [Incremental Loans].
“Indebtedness” means, as to any Person at any time, without duplication, any and all indebtedness, obligations or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect of (a) borrowed money, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c)  obligations (contingent or otherwise) under any acceptance, letter of credit or similar facilities, (d) obligations under any currency swap agreement, interest rate swap, cap, collar or floor agreement or other interest rate or currency risk management device, (e) any other transaction (including without limitation forward sale or purchase agreements, capitalized leases and conditional sales agreements) having the commercial effect of a borrowing of money upon which interest charges are customarily paid entered into by such Person to finance its operations or capital requirements (but not including trade payables and accrued expenses incurred in the ordinary course of business), (f) any Guaranty of Indebtedness of a type referred to in clause (a) through (e) above, and (g) all obligations of the kind referred to in clauses (a) through (f) above secured by any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as 
14

a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.
“Indemnified Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document, and (ii) to the extent not otherwise described in the preceding clause (i), Other Taxes.
“Indemnitee” means as is specified in Section 12.3(b) [Indemnification by the Borrower].
“Information” means as is specified in Section 12.9 [Confidentiality].
“Insolvency Proceeding” means, with respect to any Person, (a) a case, action or proceeding with respect to such Person (i) before any court or any other Official Body under any bankruptcy, insolvency, reorganization or other similar Law now or hereafter in effect, or (ii) for the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator (or similar official) of any Loan Party or otherwise relating to the liquidation, dissolution, winding-up or relief of such Person, or (b) any general assignment for the benefit of creditors, composition, marshaling of assets for creditors, or other, similar arrangement in respect of such Person’s creditors generally or any substantial portion of its creditors; undertaken under any Law.
“Interest Period” means the period of time selected by the Borrower in connection with (and to apply to) any election permitted hereunder by the Borrower to have Revolving Credit Loans or Term Loans bear interest under the LIBOR Rate Option.  Subject to the last sentence of this definition, such period shall be one, three or six Months.  Such Interest Period shall commence on the effective date of such LIBOR Rate Option, which shall be (i) the Borrowing Date if the Borrower is requesting new Loans, or (ii) the date of renewal of or conversion to the LIBOR Rate Option if the Borrower is renewing or converting to the LIBOR Rate Option applicable to outstanding Loans.  Notwithstanding the second sentence hereof: (A) any Interest Period which would otherwise end on a date which is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, and (B) the Borrower shall not select, convert to or renew an Interest Period for any portion of the Loans that would end after the Expiration Date.
“Interest Rate Option” means any LIBOR Rate Option or Base Rate Option.
“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guaranty or assumption of debt of, or purchase or other acquisition of any other debt or interest in, another Person (excluding any demand deposit), or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person which constitute all or substantially all of the assets of such Person or of a division, line of business or other business unit of such Person. 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.
15

“Investment Securities Line” means a credit or repurchase facility of not more than one month’s duration providing for demand or short-term loans or repurchase transactions fully (and only) secured by investment grade securities (including United States Treasury securities and securities issued by agencies of the United States), bank deposit accounts, money market funds and the like having maturities (including as a “maturity” any date when a creditworthy party (including the issuer) may, at the option of the holder, be required to pay, purchase or redeem the investment at par), generally concurrent with the scheduled maturities of the loans or the scheduled termination dates of the repurchase transactions, provided if such maturity date is prior to the repayment or repurchase date of the loan, any such securities will be transferred into a comparable form of investment grade security which will continue to serve as collateral.
“IRS” means the United States Internal Revenue Service.
“Issuing Lender” means PNC, in its individual capacity as issuer of Letters of Credit hereunder.
“Law” means any law(s) (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release, ruling, order, executive order, injunction, writ, decree, bond, judgment, authorization or approval, by agreement, consent or otherwise, with any Official Body, foreign or domestic.
“Lender Joinder Agreement” means a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent delivered in connection with any Incremental Loan Commitments pursuant to Section 2.11 [Incremental Loans].
“Lenders” means the financial institutions named on Schedule 1.1(B) and their respective successors and assigns as permitted hereunder, each of which is referred to herein as a Lender.  Unless the context requires otherwise, the term “Lenders” includes the Swingline Loan Lender, but not the Issuing Lender.
“Lending Office” means, as to the Administrative Agent, the Issuing Lender or any Lender, the office or offices of such Person described as such in such Lender’s Administrative Questionnaire, or such other office or offices as such Person may from time to time notify the Borrower and the Administrative Agent.
“Letter of Credit” means as is specified in Section 2.8(a) [Issuance of Letters of Credit]. [As of the Closing Date, each of the Existing Letters of Credit shall constitute, for all purposes of this Agreement and the other Loan Documents, a Letter of Credit issued and outstanding hereunder.]
“Letter of Credit Borrowing” means as is specified in Section 2.8(c)(iii) [Disbursements, Reimbursement].
“Letter of Credit Fee” means as is specified in Section 2.8(b) [Letter of Credit Fees].
“Letter of Credit Obligation” means, as of any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit on such date (if any Letter of 
16

Credit shall increase in amount automatically in the future, such aggregate amount available to be drawn shall currently give effect to any such future increase) plus the aggregate Reimbursement Obligations and Letter of Credit Borrowings on such date.
“Letter of Credit Sublimit” means as is specified in Section 2.8(a)(i) [Issuance of Letters of Credit].
“LIBOR Rate” means, with respect to the Loans comprising any Borrowing Tranche to which the LIBOR Rate Option applies for any Interest Period, the interest rate per annum determined by the Administrative Agent by dividing (the resulting quotient rounded upwards, at the Administrative Agent’s discretion, to the nearest 1/100 of 1%) (a) the rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that displays rates at which US dollar deposits are offered by leading banks in the London interbank deposit market), or the rate which is quoted by another source selected by the Administrative Agent as an authorized information vendor for the purpose of displaying rates at which US dollar deposits are offered by leading banks in the London interbank deposit market (an “Alternate Source”), at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period as the London interbank offered rate for U.S. Dollars for an amount comparable to such Borrowing Tranche and having a borrowing date and a maturity comparable to such Interest Period (or if there shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive absent manifest error)), by (b) a number equal to 1.00 minus the LIBOR Reserve Percentage.  Notwithstanding the foregoing, if the LIBOR Rate as determined under any method above would be less than zero percent (0.00%), such rate shall be deemed to be zero percent (0.00%) for purposes of this Agreement.
The LIBOR Rate shall be adjusted with respect to any Loan to which the LIBOR Rate Option applies that is outstanding on the effective date of any change in the LIBOR Reserve Percentage as of such effective date.  The Administrative Agent shall give prompt notice to the Borrower of the LIBOR Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error.
“LIBOR Rate Loan” means any Loan to which the LIBOR Rate Option applies.
“LIBOR Rate Option” means the option of the Borrower to have Loans bear interest at the rate and under the terms specified in Section 4.1(a)(ii) [Revolving Credit LIBOR Rate Option] or Section 4.1(c)(ii) [Term Loan LIBOR Rate Option], as applicable.
“LIBOR Reserve Percentage” means as of any day the maximum effective percentage in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding or in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City.
“Lien” means any mortgage, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of any nature whatsoever, whether voluntarily or 
17

involuntarily given, including any conditional sale or title retention arrangement, and any assignment, deposit arrangement or lease intended as, or having the effect of, security and any filed financing statement or other notice of any of the foregoing (whether or not a lien or other encumbrance is created or exists at the time of the filing), but shall not include any operating lease.
“Loan Documents” means this Agreement, the Administrative Agent’s Letter, the Guaranty Agreement, the Notes, and any other instruments or documents delivered in connection herewith or therewith.
“Loan Parties” means the Borrower and the Guarantors.
“Loan Request” means as is specified in Section 2.5(a) [Revolving Credit Loan Requests; Conversions and Renewals].
“Loans” means, collectively, and Loan means, separately, all Revolving Credit Loans, Swingline Loans and the Term Loans or any Revolving Credit Loan, Swingline Loan or the Term Loan.
“Material Adverse Change” means any event, development or circumstance that has had or could reasonably be expected to have a material adverse effect on (a) the business, assets, property or financial condition of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the Loan Parties to perform their payment and other material Obligations under the Loan Documents, (c) the validity or enforceability of any of the Loan Documents, or (d) the rights and remedies of the Lenders under the Loan Documents.
“Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit) or obligations in respect of one or more Swaps, of any one or more of the Loan Parties and its Subsidiaries in an aggregate principal amount exceeding $30,000,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of any Loan Party or any of its Subsidiaries in respect of any Swap at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Loan Party or such Subsidiary would be required to pay if such Swap were terminated at such time.
“Minimum Collateral Amount” means, at any time of determination, an amount equal to 102% of the Fronting Exposure of the Issuing Lender with respect to Letters of Credit issued and outstanding at such time (or such lesser amount as may be determined by the Administrative Agent and the Issuing Lender in their sole discretion).
“Month”, with respect to an Interest Period under the LIBOR Rate Option, means the interval between the days in consecutive calendar months numerically corresponding to the first day of such Interest Period.  If any LIBOR Rate Interest Period begins on a day of a calendar month for which there is no numerically corresponding day in the month in which such Interest Period is to end, the final month of such Interest Period shall be deemed to end on the last Business Day of such final month.
“Moody’s” means Moody’s Investors Service, Inc.
18

“Multiemployer Plan” means any employee pension benefit plan which is a “multiemployer plan” within the meaning of Section 4001(a)(3) of ERISA and to which the Borrower or any member of the ERISA Group is then making or accruing an obligation to make contributions or, within the preceding five (5) plan years, has made or had an obligation to make such contributions, or to which the Borrower or any member of the ERISA Group has any liability (contingent or otherwise).
“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all affected Lenders in accordance with the terms of Section 12.1 [Modifications, Amendments or Waivers] and (b) has been approved by the Required Lenders.
“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.
“Notes” means collectively, and Note means separately, the promissory notes in the form of Exhibit C evidencing the Revolving Credit Loans, in the form of Exhibit D evidencing the Swingline Loan, and in the form of Exhibit E evidencing the Term Loans.
“Obligation” means any obligation or liability of any of the Loan Parties specified in the Loan Documents, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due, under or in connection with (a) this Agreement, the Notes, the Letters of Credit, the Administrative Agent’s Letter or any other Loan Document whether to the Administrative Agent, any of the Lenders or their Affiliates or other persons provided for under such Loan Documents and (b) any Erroneous Payment Subrogation Rights.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“Official Body” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing).
“Order” means as is specified in Section 2.8(h) [Liability for Acts and Omissions].
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
19

“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 5.13 [Replacement of a Lender]).
“Overnight Bank Funding Rate” means for any day, the rate comprised of both overnight federal funds and overnight eurocurrency borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the Federal Reserve Bank of New York (“NYFRB”), as set forth on its public website from time to time, and as published on the next succeeding Business Day as the overnight bank funding rate by the NYFRB (or by such other recognized electronic source (such as Bloomberg) selected by the Bank for the purpose of displaying such rate); provided, that if such day is not a Business Day, the Overnight Bank Funding Rate for such day shall be such rate on the immediately preceding Business Day; provided, further, that if such rate shall at any time, for any reason, no longer exist, a comparable replacement rate determined by PNC at such time (which determination shall be conclusive absent manifest error). If the Overnight Bank Funding Rate determined as above would be less than zero, then such rate shall be deemed to be zero. The rate of interest charged shall be adjusted as of each Business Day based on changes in the Overnight Bank Funding Rate without notice to the Borrower.
“Participant” means as is specified in Section 12.8(d) [Participations].
“Participant Register” means as is specified in Section 12.8(d) [Participations].
“Participation Advance” means as is specified in Section 2.8(c)(iii) [Disbursements, Reimbursement].
“Payment Date” means the first day of each calendar quarter after the Closing Date and on the Expiration Date or upon acceleration of the Notes.
“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor.
“Permitted Encumbrances” means:
(a)    Liens imposed by law for taxes that are not yet due or are being contested in compliance with Section 8.2;
(b    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlord’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 8.2;
(c)    pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;
20

(d)    deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business and of financial institutions on accounts or deposits maintained therein to the extent arising by operation of law or within the documentation establishing said account to the extent same secure charges, fees and expenses owing or potentially owing to said institution;
(e)    judgment liens in respect of judgments that do not constitute an Event of Default under Section 10.1(k); and
(f)    easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any of its Subsidiaries;
provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.
“Permitted Investments” means:
(a)    direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States of America), in each case maturing within one year from the date of acquisition thereof;
(b)    investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s;
(c)    investments in certificates of deposit, banker’s acceptances and time deposits maturing within one year from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof that has a combined capital and surplus and undivided profits of not less than $250,000,000;
(d)    investments in certificates of deposit, banker’s acceptances and time deposits maturing in excess of one year from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State thereof that has a combined capital and surplus and undivided profits of not less than $250,000,000; provided, that the aggregate amount of such investments does not exceed $10,000,000 outstanding at any time;
(e)    fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above;
21

(f)    tax-exempt securities rated AAA by S&P or Aaa by Moody’s and maturing within one year from the date of acquisition thereof; and
(g)    money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s or invest solely in the assets described in clauses (a) through (f) above and (iii) have portfolio assets of at least $1,000,000,000.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Official Body or other entity.
“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any member of the ERISA Group is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.
“Platform” means Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system.
“PNC” means PNC Bank, National Association, its successors and assigns.
“Potential Default” means any event or condition which with notice or passage of time, or both, would constitute an Event of Default.
“Prime Rate” means the interest rate per annum announced from time to time by the Administrative Agent at its Principal Office as its then prime rate, which rate may not be the lowest or most favorable rate then being charged to commercial borrowers or others by the Administrative Agent and may not be tied to any external rate of interest or index. Any change in the Prime Rate shall take effect at the opening of business on the day such change is announced.
“Principal Office” means the main banking office of the Administrative Agent in Pittsburgh, Pennsylvania.
“Published Rate” means the rate of interest published each Business Day in The Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period: provided that if no such rate is published therein for any reason, then the Published Rate shall be the rate at which U.S. dollar deposits are offered by leading banks in the London interbank deposit market for a one month period either (a) as published in another publication selected by the Administrative Agent or (b) in an Alternate Source (or if there shall at any time, for any reason, no longer exist any such reference or any Alternate Source, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive absent manifest error).
“Ratable Share” means:
(a)    with respect to a Lender’s obligation to make Revolving Credit Loans, participate in Letters of Credit and other Letter of Credit Obligations, participate in Swingline 
22

Loans, and receive payments, interest, and fees related thereto, the proportion that such Lender’s Revolving Credit Commitment bears to the Revolving Credit Commitments of all of the Lenders, provided that if the Revolving Credit Commitments have terminated or expired, the Ratable Shares for purposes of this clause shall be determined based upon the Revolving Credit Commitments most recently in effect, giving effect to any assignments;
(b)    with respect to a Lender’s obligation (x) to make Term Loans and receive payments, interest, and fees related thereto, the proportion that such Lender’s Term Loan Commitment bears to the Term Loan Commitments of all of the Lenders, provided that if the Term Loans have not yet been funded, the computation in this clause shall be determined based upon the Term Loan Commitments of the Lenders and not the amount of their Term Loans and (y) to receive payments, interest, and fees related to Term Loans, the proportion that such Lender’s Term Loans bears to the Term Loans of all of the Lenders;
(c)    with respect to all other matters as to a particular Lender, the percentage obtained by dividing (i) such Lender’s Revolving Credit Commitment plus Term Loan, by (ii) the sum of the aggregate amount of the Revolving Credit Commitments plus Term Loans of all Lenders; provided, however that (A) if the Revolving Credit Commitments have terminated or expired, the computation in this clause shall be determined based upon the Revolving Credit Commitments most recently in effect, giving effect to any assignments, and not on the current amount of the Revolving Credit Commitments and (B) if the Term Loans have not yet been funded, the computation in this clause shall be determined based upon the Term Loan Commitments and not the current amount of the Term Loans, subject to Section 2.9 [Defaulting Lenders].
“Recipient” means (a) the Administrative Agent, (b) any Lender and (c) the Issuing Lender, as applicable.
“Reimbursement Obligation” means as is specified in Section 2.8(c) [Disbursements, Reimbursement].
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the directors (and equivalents), officers, employees, agents and advisors of such Person and of such Person’s Affiliates.
“Removal Effective Date” means as is specified in Section 11.6(b).  [Resignation of Administrative Agent]
“Reportable Compliance Event” means that: (a) any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint, or similar charging instrument, arraigned, custodially detained, penalized or the subject of an assessment for a penalty, or enters into a settlement with an Official Body in connection with any sanctions or other Anti-Terrorism Law or Anti-Corruption law, or any predicate crime to any Anti-Terrorism Law or Anti-Corruption Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its operations represents a violation of any Anti-Terrorism Law or Anti-Corruption Law; or (b) any Covered Entity engages in a transaction that has caused or could reasonably be expected to cause the Lenders, Administrative Agent to be in violation of any Anti-Terrorism Laws, including a Covered Entity’s use of any proceeds of the Facilities to fund any 
23

operations in, finance any investments or activities in, or, make any payments to, directly or indirectly, a Sanctioned Person or Sanctioned Jurisdiction.
“Required Lenders” means:
(a)    If there exists fewer than three (3) Lenders, all Lenders (other than any Defaulting Lender), and
(b)    If there exist three (3) or more Lenders, Lenders (other than any Defaulting Lender) having more than 50% of the sum of (i) the aggregate amount of the Revolving Credit Commitments of the Lenders (excluding any Defaulting Lender) or, after the termination of the Revolving Credit Commitments, the outstanding Revolving Credit Loans and Ratable Share of Letter of Credit Obligations of the Lenders (excluding any Defaulting Lender), and (ii) the aggregate outstanding amount of any Term Loans.
“Resignation Effective Date” means as is specified in Section 11.6(a) [Resignation of Administrative Agent].
“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower, or any of its Subsidiaries or any option, warrant or other right to acquire any such Equity Interests in the Borrower or any of its Subsidiaries.
“Revolving Credit Commitment” means, as to any Lender at any time, the amount initially specified opposite its name on Schedule 1.1(B) in the column labeled “Amount of Commitment for Revolving Credit Loans,” as such Commitment is thereafter assigned or modified and Revolving Credit Commitments means the aggregate Revolving Credit Commitments of all of the Lenders.
“Revolving Credit Facility” means the revolving loan facility provided pursuant to Article 2.
“Revolving Credit Loans” means, collectively, and Revolving Credit Loan means, separately, all Revolving Credit Loans or any Revolving Credit Loan made by the Lenders or one of the Lenders to the Borrower pursuant to Section 2.1 [Revolving Credit Commitments] or Section 2.8(c) [Disbursements, Reimbursement].
“Revolving Facility Usage” means at any time the sum of the outstanding Revolving Credit Loans, the outstanding Swingline Loans (without duplication of any Revolving Credit Loans made to refinance any such Swingline Loans), and the Letter of Credit Obligations.
24

“Sanctioned Person” means (a) a Person that is the subject of sanctions administered by OFAC or the U.S. Department of State (“State”), including by virtue of being (i) named on OFAC’s list of “Specially Designated Nationals and Blocked Persons”; (ii) organized under the Laws of, ordinarily resident in, or physically located in a country or territory targeted by country-wide or territory-wide sanctions from time to time (as at the date of this Agreement, Crimea, Cuba, Iran, north Korea and Syria); (iii) owned or controlled 50% or more in the aggregate, by one or more Persons that are the subject of sanctions administered by OFAC; (b) a Person that is the subject of sanctions maintained by the European Union (“E.U.”), including by virtue of being named on the E.U.’s “Consolidated list of persons, groups and entities subject to E.U. financial sanctions” or other, similar lists; (c) a Person that is the subject of sanctions maintained by the United Kingdom (“U.K.”), including by virtue of being named on the “Consolidated List Of Financial Sanctions Targets in the U.K.” or other, similar lists; or (d) a Person that is the subject of sanctions imposed by any Official Body of a jurisdiction whose Laws apply to this Agreement.
“Sanctioned Jurisdiction” means any country, territory, or region that is the subject of sanctions administered by OFAC.
“Settlement Date” means the Business Day on which the Administrative Agent elects to effect settlement pursuant Section 5.11 [Settlement Date Procedures].
 “Solvent” means, with respect to any Person on any date of determination, taking into account any right of reimbursement, contribution or similar right available to such Person from other Persons, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured in the ordinary course, (c) such Person is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (d) 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, and (e) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person is engaged.  In computing the amount of contingent liabilities at any time, it is intended that such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“S&P” means Standard & Poor’s Ratings Services, a division of McGraw Hill Financial, Inc.

 “Statements” means as is specified in Section 6.4.
“Subsidiary”, of any Person, at any time means any corporation, trust, partnership, limited liability company or other business entity (a) of which more than 50% of the outstanding voting securities or other interests normally entitled to vote for the election of one or more directors or trustees (regardless of any contingency which does or may suspend or dilute the voting 
25

rights) is at such time owned directly or indirectly by such Person or one or more of such Person’s Subsidiaries, or (b) which is Controlled or capable of being Controlled by such Person or one or more of such Person’s Subsidiaries; provided that any Person organized or acquired solely for the purpose of acting as a qualified intermediary or effecting tax-deferred property exchanges within the meaning of Treasury Regulations promulgated under Section 1031 of the Code shall not be considered a Subsidiary of any Loan Party.
“Swap” means any “swap” as defined in Section 1a(47) of the CEA and regulations thereunder, other than (a) a swap entered into, or subject to the rules of, a board of trade designated as a contract market under Section 5 of the CEA, or  (b) a commodity option entered into pursuant to CFTC Regulation 32.3(a).
“Swingline Loan Commitment” means PNC’s commitment to make Swingline Loans to the Borrower pursuant to Section 2.1(b) [Swingline Loan Commitment] hereof in an aggregate principal amount up to $10,000,000.
“Swingline Loan Lender” means PNC, in its capacity as a lender of Swingline Loans.
“Swingline Loan Note” means the Swingline Loan Note of the Borrower in the form of Exhibit D evidencing the Swingline Loans, together with all amendments, extensions, renewals, replacements, refinancing or refunding thereof in whole or in part.
“Swingline Loan Request” means a request for Swingline Loans made in accordance with Section 2.5(b) [Swingline Loan Requests] hereof.
“Swingline Loans” means, collectively, and Swingline Loan means, separately, all Swingline Loans or any Swingline Loan made by PNC to the Borrower pursuant to Section 2.1(b) [Swingline Loan Commitment] hereof.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Official Body, including any interest, additions to tax or penalties applicable thereto.
“Term Lender” means a Lender holding a Term Loan.
“Term Loan” means as is specified in Section 3.1 [Term Loan Commitments]; Term Loans means, collectively, all of the Term Loans.
“Term Loan Commitment” means, as to any Lender at any time, the amount initially specified opposite its name on Schedule 1.1(B) in the column labeled “Amount of Commitment for Term Loans,” as such Commitment is thereafter assigned or modified and Term Loan Commitments means the aggregate Term Loan Commitments of all of the Lenders.
“Term Loan Facility” means the term loan facility provided pursuant to Article 3 [Term Loans].
“Term Loan Maturity Date” means October 28, 2022.
26

“Transactions” means the execution, delivery and performance by the Borrower and the Guarantors of this Agreement and the other Loan Documents, the borrowing of Loans, and the issuance of Letters of Credit hereunder.
“UCP” means as is specified in Section 12.11(a) [Governing Law].
“UK Financial Institution” means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“UK Resolution Authority” means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
“USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.
“U.S. Borrower” means any Borrower that is a U.S. Person.
“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.
“U.S. Tax Compliance Certificate” means as is specified in Section 5.9(g)(ii)(B)(III) [Status of Lenders].
“Withholding Agent” means any Loan Party and the Administrative Agent.
“Write-down and Conversion Powers” means, (a) 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, and (b) with respect to the United Kingdom,  any powers of the applicable Resolution Authority  under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution  or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
1.2“Construction”.  Unless the context of this Agreement otherwise clearly requires, the following rules of construction shall apply to this Agreement and each of the other Loan Documents: (a) references to the plural include the singular, the plural, the part and the whole and the words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; (b) the word “will” shall be construed to have the same meaning and effect as the word “shall”; (c) the words “hereof,” “herein,” “hereunder,” “hereto” and similar terms in this 
27

Agreement or any other Loan Document refer to this Agreement or such other Loan Document as a whole; (d) article, section, subsection, clause, schedule and exhibit references are to this Agreement or other Loan Document, as the case may be, unless otherwise specified; (e) reference to any Person includes such Person’s successors and assigns; (f) reference to this Agreement or any other Loan Document, means this Agreement or such other Loan Document, together with the schedules and exhibits hereto or thereto, as amended, modified, replaced, substituted for, superseded or restated from time to time (subject to any restrictions thereon specified in this Agreement or the other applicable Loan Document); (g) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding,” and “through” means “through and including”; (h) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time (i) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights; (j) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms; (k) section headings herein and in each other Loan Document are included for convenience and shall not affect the interpretation of this Agreement or such Loan Document, and (l) unless otherwise specified, all references herein to times of day shall constitute references to Eastern Time.
1.3“Accounting Principles; Changes in GAAP”.  Except as otherwise provided in this Agreement, all computations and determinations as to accounting or financial matters and all financial statements to be delivered pursuant to this Agreement shall be made and prepared in accordance with GAAP (including principles of consolidation where appropriate), and all accounting or financial terms shall have the meanings ascribed to such terms by GAAP as in effect on the Closing Date applied on a basis consistent with those used in preparing the Statements referred to in Section 6.4 [Historical Statements]; provided, that, GAAP will be deemed for all purposes hereof to treat leases that would have been classified as operating leases in accordance with GAAP as in effect on December 31, 2017 in a manner consistent with the treatment of such leases under GAAP in effect on December 31, 2017 notwithstanding any modification thereto that becomes effective thereafter.  Notwithstanding the foregoing, if at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) if requested by the Administrative Agent, the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.
1.4“LIBOR Notification”.  Section 4.4(d) [Benchmark Replacement Setting] of this Agreement provides a mechanism for determining an alternative rate of interest in the event that the London interbank offered rate is no longer available or in certain other circumstances. The Administrative Agent does not warrant or accept any responsibility for and shall not have any liability with respect to, the administration, submission or any other matter related to the London 
28

interbank offered rate or other rates in the definition of “LIBOR Rate” or with respect to any alternative or successor rate thereto, or replacement rate therefor.
ARTICLE 2

REVOLVING CREDIT AND SWINGLINE LOAN FACILITIES
2.1Revolving Credit Commitments.
(a)Revolving Credit Loans.  Subject to the terms and conditions hereof and relying upon the representations and warranties herein specified, each Lender severally agrees to make Revolving Credit Loans to the Borrower at any time or from time to time on or after the Closing Date to the Expiration Date; provided that after giving effect to each such Loan (i) the aggregate amount of Revolving Credit Loans from such Lender shall not exceed such Lender’s Revolving Credit Commitment minus such Lender’s Ratable Share of the outstanding Swingline Loans (excluding any Swingline Loans being refinanced with such Revolving Credit Loans) and Letter of Credit Obligations and (ii) the Revolving Facility Usage shall not exceed the Revolving Credit Commitments.  Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1.
(b)Swingline Loan Commitment.  Subject to the terms and conditions hereof and relying upon the representations and warranties herein specified and the agreements of the other Lenders specified in Section 2.6 [Making Revolving Credit Loans and Swingline Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swingline Loans] with respect to Swingline Loans, PNC may, at its option, cancelable at any time for any reason whatsoever, make Swingline Loans (the “Swingline Loans”) to the Borrower at any time or from time to time after the Closing Date to, but not including, the Expiration Date, in an aggregate principal amount up to but not in excess of $10,000,000, provided that after giving effect to such Swingline Loan (i) the aggregate amount of any Lender’s Revolving Credit Loans plus such Lender’s Ratable Share of the outstanding Swingline Loans and Letter of Credit Obligations shall not exceed such Lender’s Revolving Credit Commitment and (ii) the Revolving Facility Usage shall not exceed the aggregate Revolving Credit Commitments of the Lenders.  Within such limits of time and amount and subject to the other provisions of this Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1(b).
2.2Nature of Lenders’ Obligations with Respect to Revolving Credit Loans.  Each Lender shall be obligated to fund each request for Revolving Credit Loans pursuant to Section 2.5 [Revolving Credit Loan Requests; Conversions and Renewals; Swingline Loan Requests] in accordance with its Ratable Share.  The aggregate of each Lender’s Revolving Credit Loans outstanding hereunder to the Borrower at any time shall never exceed its Revolving Credit Commitment minus its Ratable Share of the outstanding Swingline Loans (excluding any Swingline Loans being refinanced with such Revolving Credit Loans) and Letter of Credit Obligations.  The obligations of each Lender hereunder are several.  The failure of any Lender to perform its obligations hereunder shall not affect the Obligations of the Borrower to any other party nor shall any other party be liable for the failure of such Lender to perform its obligations hereunder.  The Lenders shall have no obligation to make Revolving Credit Loans hereunder on or after the Expiration Date.
29

2.3Commitment Fees.  Accruing for each day from the Closing Date until the Expiration Date (and without regard to whether the conditions to making Revolving Credit Loans are then met), the Borrower agrees to pay to the Administrative Agent for the account of each Lender according to its Ratable Share, a nonrefundable commitment fee (the “Commitment Fee”) equal to the Applicable Margin for Commitment Fee for such day  (computed on the basis of a year of 360 days and actual days elapsed) multiplied by the difference for such day between the amount of (a) the Revolving Credit Commitments minus (b) the Revolving Facility Usage (provided however, that solely in connection with determining the share of each Lender in the Commitment Fee, the Revolving Facility Usage with respect to the portion of the Commitment Fee allocated to PNC shall include the full amount of the outstanding Swingline Loans, and with respect to the portion of the Commitment Fee allocated by the Administrative Agent to all of the Lenders other than PNC, such portion of the Commitment Fee shall be calculated (according to each such Lender’s Ratable Share) as if the Revolving Facility Usage excludes the outstanding Swingline Loans)); provided that no Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such Commitment Fee that otherwise would have been required to have been paid to that Defaulting Lender).  Subject to the proviso in the directly preceding sentence, all Commitment Fees shall be payable in arrears on each Payment Date.
2.4Termination or Reduction of Revolving Credit Commitments.  The Borrower shall have the right, upon not less than three (3) Business Days’ notice to the Administrative Agent, to terminate the Revolving Credit Commitments or, from time to time, to reduce the aggregate amount of the Revolving Credit Commitments (ratably among the Lenders in proportion to their Ratable Shares); provided that no such termination or reduction of Revolving Credit Commitments shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Credit Loans made on the effective date thereof, the Revolving Facility Usage would exceed the aggregate Revolving Credit Commitments of the Lenders.  and provided further that in the event the Revolving Credit Commitments are reduced to an aggregate amount less than the Letter of Credit Sublimit or the Swingline Loan Commitment then in effect, the Letter of Credit Sublimit and the Swingline Loan Commitment, as applicable, shall be reduced by an amount such that none of the Letter of Credit Sublimit and the Swingline Loan Commitment, as applicable, exceed the Revolving Credit Commitments.  Any such reduction shall be in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Revolving Credit Commitments then in effect.  Any such reduction or termination shall be accompanied by prepayment of the Notes, together with outstanding Commitment Fees, and the full amount of interest accrued on the principal sum to be prepaid (and all amounts referred to in Section 5.10 [Indemnity] hereof) to the extent necessary to cause the aggregate Revolving Facility Usage after giving effect to such prepayments to be equal to or less than the Revolving Credit Commitments as so reduced or terminated.  Any notice to reduce the Revolving Credit Commitments under this Section 2.4 shall be irrevocable; provided that any such notice may state that such notice is conditioned upon the effectiveness of other credit facilities, debt or equity issuances or other transactions specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.
30

2.5Revolving Credit Loan Requests; Conversions and Renewals; Swingline Loan Requests.
(a)Revolving Credit Loan Requests; Conversions and Renewals.  The Borrower may from time to time prior to the Expiration Date request the Lenders to make Revolving Credit Loans, or renew or convert the Interest Rate Option applicable to existing Revolving Credit Loans or Term Loans pursuant to Section 4.2 [Interest Periods], by delivering to the Administrative Agent, not later than 12:00 p.m. Eastern Time, (i) three (3) Business Days prior to the proposed Borrowing Date with respect to the making of Revolving Credit Loans to which the LIBOR Rate Option applies or the conversion to or the renewal of the LIBOR Rate Option for any Revolving Credit Loans; and (ii) the same Business Day of the proposed Borrowing Date with respect to the making of a Revolving Credit Loan to which the Base Rate Option applies or the last day of the preceding Interest Period with respect to the conversion to the Base Rate Option for any Revolving Credit Loan, of a duly completed request therefor substantially in the form of Exhibit F or a request by telephone immediately confirmed in writing by letter, facsimile, telex or other electronic means in such form (each, a “Loan Request”), it being understood that the Administrative Agent may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written confirmation.  Each Loan Request shall be irrevocable and shall specify the aggregate amount of the proposed Loans comprising each Borrowing Tranche, and, if applicable, the Interest Period, which amounts shall be in (x) integral multiples of $500,000 and not less than $1,000,000 for each Borrowing Tranche under the LIBOR Rate Option, and (y) integral multiples of $500,000 and not less than $500,000 for each Borrowing Tranche under the Base Rate Option.
(b)Swingline Loan Requests.  Except as otherwise provided herein, the Borrower may from time to time prior to the Expiration Date request the Swingline Loan Lender to make Swingline Loans by delivery to the Swingline Loan Lender not later than 1:00 p.m. Eastern time on the proposed Borrowing Date of a duly completed request therefor substantially in the form of Exhibit G hereto or a request by telephone immediately confirmed in writing by letter, facsimile, telex or other electronic means (each, a “Swingline Loan Request”), it being understood that the Administrative Agent may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written confirmation.  Each Swingline Loan Request shall be irrevocable and shall specify the proposed Borrowing Date and the principal amount of such Swingline Loan.
2.6Making Revolving Credit Loans and Swingline Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swingline Loans.
(a)Making Revolving Credit Loans.  The Administrative Agent shall, promptly after receipt by it of a Loan Request pursuant to Section 2.5 [Revolving Credit Loan Requests; Conversions and Renewals; Swingline Loan Requests], notify the applicable Lenders of its receipt of such Loan Request specifying the information provided by the Borrower and the apportionment among the Lenders of the requested Revolving Credit Loans as determined by the Administrative Agent in accordance with Section 2.2 [Nature of Lenders’ Obligations with Respect to Revolving Credit Loans].  Each Lender shall remit its apportioned share (as provided to it by the Administrative Agent) of the principal amount of each Revolving Credit Loan to the 
31

Administrative Agent such that the Administrative Agent is able to, and the Administrative Agent shall, to the extent the Lenders have made funds available to it for such purpose and subject to Section 7.2 [Each Loan or Letter of Credit], fund such Revolving Credit Loans to the Borrower in U.S. Dollars and immediately available funds at the Principal Office prior to 2:00 p.m. Eastern Time, on the applicable Borrowing Date; provided that if any Lender fails to remit such funds to the Administrative Agent in a timely manner, the Administrative Agent may elect in its sole discretion to fund with its own funds the Revolving Credit Loans of such Lender on such Borrowing Date, and such Lender shall be subject to the repayment obligation in Section 2.6(b) [Presumptions by the Administrative Agent].
(i)Presumptions by the Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed time of any Loan that such Lender will not make available to the Administrative Agent such Lender’s share of such Loan, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.6(a) [Making Revolving Credit Loans] and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Loan available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Effective Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation and (ii) in the case of a payment to be made by the Borrower, the interest rate applicable to Loans under the Base Rate Option.  If such Lender pays its share of the applicable Loan to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.
(b)Making Swingline Loans.  So long as PNC elects to make Swingline Loans, PNC shall, after receipt by it of a Swingline Loan Request pursuant to Section 2.5(b) [Swingline Loan Requests], fund such Swingline Loan to the Borrower in U.S. Dollars and immediately available funds at the Principal Office prior to 4:00 p.m. Eastern Time on the Borrowing Date.  A Swingline Loan Note shall, if required by PNC, evidence the Swingline Loans.
(c)Repayment of Revolving Credit Loans.  The Borrower shall repay the outstanding principal amount of all Revolving Credit Loans, together with all outstanding interest thereon, on the Expiration Date.
(d)Borrowings to Repay Swingline Loans.
(i)PNC may, at its option, exercisable at any time for any reason whatsoever, demand repayment of any or all of the outstanding Swingline Loans, and each Lender shall make a Revolving Credit Loan in an amount equal to such Lender’s Ratable Share of the aggregate principal amount of the outstanding Swingline Loans with respect to which repayment is demanded, plus, if PNC so requests, accrued interest thereon, provided 
32

that no Lender shall be obligated in any event to make Revolving Credit Loans in excess of its Revolving Credit Commitment minus its Ratable Share of Letter of Credit Obligations and minus its Ratable Share of any Swingline Loans not so being repaid. Revolving Credit Loans made pursuant to the preceding sentence shall bear interest at the Base Rate Option and shall be deemed to have been properly requested in accordance with Section 2.5(a) [Revolving Credit Loan Requests; Conversions and Renewals] without regard to any of the requirements of that provision.  PNC shall provide notice to the Lenders (which may be telephonic or written notice by letter, facsimile, telex or other electronic means) that such Revolving Credit Loans are to be made under this Section 2.6(e) and of the apportionment among the Lenders, and the Lenders shall be unconditionally obligated to fund such Revolving Credit Loans (whether or not the conditions specified in Section 2.5(a) [Revolving Credit Loan Requests; Conversions and Renewals] or in Section 7.2 [Each Loan or Letter of Credit] are then satisfied) by the time PNC so requests, which shall not be earlier than 3:00 p.m. Eastern Time on the Business Day next after the date the Lenders receive such notice from PNC.
(ii)If any Lender fails to make available to the Administrative Agent for the account of PNC (as the Swingline Loan Lender) any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.6(e) by the time specified in Section 2.6(e)(i), the Swingline Loan Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swingline Loan Lender at a rate per annum equal to the greater of the Effective Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Swingline Loan Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Revolving Credit Loan with respect to such prepayment.  A certificate of the Swingline Loan Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (ii) shall be conclusive absent manifest error.
2.7Notes.  The Obligation of the Borrower to repay the aggregate unpaid principal amount of the Revolving Credit Loans, Swingline Loans and Term Loans made to it by each Lender, together with interest thereon, shall, at the request of any Lender, be evidenced by a revolving credit Note, a swing Note and a term Note, dated the Closing Date payable to the order of such Lender in a face amount equal to the Revolving Credit Commitment, Swingline Loan Commitment or Term Loan Commitment, as applicable, of such Lender.
2.8Letter of Credit Subfacility.
(a)Issuance of Letters of Credit.  The Borrower or any other Loan Party may at any time prior to the Expiration Date request the issuance of a letter of credit (each, a “Letter of Credit”) for its own account or the account of another Loan Party or any Subsidiary or the amendment or extension of an existing Letter of Credit, by delivering or transmitting electronically, or having such other Loan Party deliver or transmit electronically to the Issuing 
33

Lender (with a copy to the Administrative Agent) a completed application for letter of credit, or request for such amendment or extension, as applicable, in such form as the Issuing Lender may specify from time to time by no later than 10:00 a.m. Eastern Time at least three (3) Business Days, or such shorter period as may be agreed to by the Issuing Lender, in advance of the proposed date of issuance.  The Borrower or any Loan Party shall authorize and direct the Issuing Lender to name the Borrower or any Loan Party or any Subsidiary as the “Applicant” or “Account Party” of each Letter of Credit.  Promptly after receipt of any letter of credit application, the Issuing Lender shall confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit application and if not, the Issuing Lender will provide the Administrative Agent with a copy thereof.
As of the Closing Date, each of the Existing Letters of Credit shall constitute, for all purposes of this Agreement and the other Loan Documents, a Letter of Credit issued and outstanding hereunder.
(i)Unless the Issuing Lender has received notice from any Lender, the Administrative Agent or any Loan Party, at least one (1) day prior to the requested date of issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable conditions in Article 7 [Conditions of Lending and Issuance of Letters of Credit] is not satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements of the other Lenders specified in this Section 2.8, the Issuing Lender or any of the Issuing Lender’s Affiliates will issue the proposed Letter of Credit or agree to such amendment or extension; provided that each Letter of Credit shall (A) have a maximum maturity of twelve (12) months from the date of issuance, and (B) in no event expire later than the Expiration Date and provided, further, that in no event shall (1) the Letter of Credit Obligations exceed, at any one time, $10,000,000 (the “Letter of Credit Sublimit”) or (2) the Revolving Facility Usage exceed, at any one time, the Revolving Credit Commitments.  Notwithstanding the foregoing, any Letter of Credit may contain customary automatic renewal provisions agreed upon by the Borrower and the Issuing Lender pursuant to which the expiration date of such Letter of Credit shall automatically be extended for a period of up to 12 months (but not to a date later than the date set forth in clause (B) above), subject to a right on the part of the Issuing Lender, in its discretion, to prevent any such renewal from occurring by giving notice to the beneficiary in advance of any such renewal; provided that unless otherwise directed by the Issuing Lender, the Borrower shall not be required to make a specific request to the Issuing Lender for any such renewal. Each request by the Borrower for the issuance, amendment or extension of a Letter of Credit shall be deemed to be a representation by the Borrower that it shall be in compliance with the preceding sentence and with Article 7 [Conditions of Lending and Issuance of Letters of Credit] after giving effect to the requested issuance, amendment or extension of such Letter of Credit.  Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to the beneficiary thereof, the applicable Issuing Lender will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.
(ii)Notwithstanding Section 2.8(a)(i), the Issuing Lender shall not be under any obligation to issue any Letter of Credit if (A) any order, judgment or decree of any Official Body or arbitrator shall by its terms purport to enjoin or restrain the Issuing 
34

Lender from issuing the Letter of Credit, or any Law applicable to the Issuing Lender or any request or directive (whether or not having the force of law) from any Official Body with jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the Issuing Lender with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Lender is not otherwise compensated or entitled to be compensated hereunder) not in effect on the Closing Date, or shall impose upon the Issuing Lender any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the Issuing Lender in good faith deems material to it, (B) the issuance of the Letter of Credit would violate one or more policies of the Issuing Lender applicable to letters of credit generally or (C) any Lender is at that time a Defaulting Lender, unless the Issuing Lender has entered into arrangements, including the delivery of Cash Collateral, satisfactory to the Issuing Lender (in its sole but reasonable discretion) with the Borrower or such Lender to eliminate the Issuing Lender’s actual or potential Fronting Exposure (after giving effect to Section 2.9(a)(iv) [Reallocation of Participations to Reduce Fronting Exposure]) with respect to the Defaulting Lender arising from either the Letter of Credit then proposed to be issued or that Letter of Credit and all other Issuing Lender Obligations as to which the Issuing Lender has actual or potential Fronting Exposure, as it may elect in its sole but reasonable discretion.
(b)Letter of Credit Fees.  The Borrower shall pay (i) to the Administrative Agent for the ratable account of the Lenders a fee (the “Letter of Credit Fee”) equal to the Applicable Margin for Letters of Credit times the daily amount available to be drawn under each Letter of Credit (it being understood and agreed that in no event shall the fee under this subsection (i) in respect of any Letter of Credit be less than the Administrative Agent’s minimum fee in effect from time to time), and (ii) to the Issuing Lender for its own account a fronting fee equal to 0.125% per annum on the daily amount available to be drawn under each Letter of Credit.  All Letter of Credit Fees and fronting fees shall be computed on the basis of a year of 360 days and actual days elapsed and shall be payable quarterly in arrears on each Payment Date following issuance of each Letter of Credit.  The Borrower shall also pay to the Issuing Lender for the Issuing Lender’s sole account the Issuing Lender’s then-in-effect customary fees and administrative expenses payable with respect to the Letters of Credit as the Issuing Lender may generally charge or incur from time to time in connection with the issuance, maintenance, amendment (if any), assignment or transfer (if any), negotiation, and administration of Letters of Credit.
(c)Disbursements, Reimbursement.  Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Lender a participation in such Letter of Credit and each drawing thereunder in an amount equal to such Lender’s Ratable Share of the maximum amount available to be drawn under such Letter of Credit and the amount of such drawing, respectively.
(i)In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, the Issuing Lender will promptly notify the Borrower and the Administrative Agent thereof.  Provided that it shall have received such notice, the Borrower shall reimburse (such obligation to reimburse the Issuing Lender shall sometimes be referred to as a “Reimbursement Obligation”) the Issuing Lender prior to 12:00 noon on 
35

each date that an amount is paid by the Issuing Lender under any Letter of Credit (each such date, a “Drawing Date”) by paying to the Administrative Agent for the account of the Issuing Lender an amount equal to the amount so paid by the Issuing Lender.  In the event the Borrower fails to reimburse the Issuing Lender (through the Administrative Agent) for the full amount of any drawing under any Letter of Credit by 12:00 noon on the Drawing Date, the Administrative Agent will promptly notify each Lender thereof, and the Borrower shall be deemed to have requested that Revolving Credit Loans be made by the Lenders under the Base Rate Option to be disbursed on the Drawing Date under such Letter of Credit, subject to the amount of the unutilized portion of the Revolving Credit Commitment and subject to the conditions specified in Section 7.2 [Each Loan or Letter of Credit] other than any notice requirements.  Any notice given by the Administrative Agent or Issuing Lender pursuant to this Section 2.8(c)(i) may be oral if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.
(ii)Each Lender shall upon any notice pursuant to Section 2.8(c)(i) make available to the Administrative Agent for the account of the Issuing Lender an amount in immediately available funds equal to its Ratable Share of the amount of the drawing, whereupon the participating Lenders shall (subject to Section 2.8(c) [Disbursements; Reimbursement]) each be deemed to have made a Revolving Credit Loan under the Base Rate Option to the Borrower in that amount.  If any Lender so notified fails to make available to the Administrative Agent for the account of the Issuing Lender the amount of such Lender’s Ratable Share of such amount by no later than 2:00 p.m. Eastern Time on the Drawing Date, then interest shall accrue on such Lender’s obligation to make such payment, from the Drawing Date to the date on which such Lender makes such payment (A) at a rate per annum equal to the Effective Federal Funds Rate during the first three (3) days following the Drawing Date and (B) at a rate per annum equal to the rate applicable to Revolving Credit Loans under the Base Rate Option on and after the fourth day following the Drawing Date.  The Administrative Agent and the Issuing Lender will promptly give notice (as described in Section 2.8(c)(i) above) of the occurrence of the Drawing Date, but failure of the Administrative Agent or the Issuing Lender to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect such payment on such date shall not relieve such Lender from its obligation under this Section 2.8(c)(ii).
(iii)With respect to any unreimbursed drawing that is not converted into Revolving Credit Loans under the Base Rate Option to the Borrower in whole or in part as contemplated by Section 2.8(c)(i), because of the Borrower’s failure to satisfy the conditions specified in Section 7.2 [Each Loan or Letter of Credit] other than any notice requirements, or for any other reason, the Borrower shall be deemed to have incurred from the Issuing Lender a borrowing (each a “Letter of Credit Borrowing”) in the amount of such drawing.  Such Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the rate per annum applicable to the Revolving Credit Loans under the Base Rate Option.  Each Lender’s payment to the Administrative Agent for the account of the Issuing Lender pursuant to this Section 2.8(c) shall be deemed to be a payment in respect of its participation in such Letter of Credit 
36

Borrowing (each, a “Participation Advance”) from such Lender in satisfaction of its participation obligation under this Section 2.8(c).
(d)Repayment of Participation Advances.
(i)Upon (and only upon) receipt by the Administrative Agent for the account of the Issuing Lender of immediately available funds from the Borrower (A) in reimbursement of any payment made by the Issuing Lender under the Letter of Credit with respect to which any Lender has made a Participation Advance to the Administrative Agent, or (B) in payment of interest on such a payment made by the Issuing Lender under such a Letter of Credit, the Administrative Agent on behalf of the Issuing Lender will pay to each Lender, in the same funds as those received by the Administrative Agent, the amount of such Lender’s Ratable Share of such funds, except the Administrative Agent shall retain for the account of the Issuing Lender the amount of the Ratable Share of such funds of any Lender that did not make a Participation Advance in respect of such payment by the Issuing Lender.
(ii)If the Administrative Agent is required at any time to return to any Loan Party, or to a trustee, receiver, liquidator, custodian, or any official in any Insolvency Proceeding, any portion of any payment made by any Loan Party to the Administrative Agent for the account of the Issuing Lender pursuant to this Section in reimbursement of a payment made under any Letter of Credit or interest or fees thereon, each Lender shall, on demand of the Administrative Agent, forthwith return to the Administrative Agent for the account of the Issuing Lender the amount of its Ratable Share of any amounts so returned by the Administrative Agent plus interest thereon from the date such demand is made to the date such amounts are returned by such Lender to the Administrative Agent, at a rate per annum equal to the Effective Federal Funds Rate in effect from time to time.
(e)Documentation.  Each Loan Party agrees to be bound by the terms of the Issuing Lender’s application and agreement for letters of credit and the Issuing Lender’s written regulations and customary practices relating to letters of credit, though such interpretation may be different from such Loan Party’s own.  In the event of a conflict between such application or agreement and this Agreement, this Agreement shall govern.  It is understood and agreed that, except in the case of gross negligence or willful misconduct, the Issuing Lender shall not be liable for any error, negligence and/or mistakes, whether of omission or commission, in following any Loan Party’s instructions or those contained in the Letters of Credit or any modifications, amendments or supplements thereto.
(f)Determinations to Honor Drawing Requests.  In determining whether to honor any request for drawing under any Letter of Credit by the beneficiary thereof, the Issuing Lender shall be responsible only to determine that the documents and certificates required to be delivered under such Letter of Credit have been delivered and that they comply on their face with the requirements of such Letter of Credit.
(g)Nature of Participation and Reimbursement Obligations.  Each Lender’s obligation in accordance with this Agreement to make the Revolving Credit Loans or Participation Advances, as contemplated by Section 2.8(c) [Disbursements, Reimbursement], as a result of a 
37

drawing under a Letter of Credit, and the Obligations of the Borrower to reimburse the Issuing Lender upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Section 2.8 under all circumstances, including the following circumstances:
(i)any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Issuing Lender or any of its Affiliates, the Borrower or any other Person for any reason whatsoever, or which any Loan Party may have against the Issuing Lender or any of its Affiliates, any Lender or any other Person for any reason whatsoever;
(ii)the failure of any Loan Party or any other Person to comply, in connection with a Letter of Credit Borrowing, with the conditions specified in Sections 2.1 [Revolving Credit Commitments], 2.5 [Revolving Credit Loan Requests; Conversions and Renewals; Swingline Loan Requests], 2.6 [Making Revolving Credit Loans and Swingline Loans; Etc.] or 7.2 [Each Loan or Letter of Credit] or as otherwise specified in this Agreement for the making of a Revolving Credit Loan, it being acknowledged that such conditions are not required for the making of a Letter of Credit Borrowing and the obligation of the Lenders to make Participation Advances under Section 2.8(c) [Disbursements, Reimbursement];
(iii)any lack of validity or enforceability of any Letter of Credit;
(iv)any claim of breach of warranty made by any Loan Party or any Lender against any beneficiary of a Letter of Credit, or the existence of any claim, set-off, recoupment, counterclaim, cross claim, defense or other right which any Loan Party or any Lender may have at any time against a beneficiary, successor beneficiary any transferee or assignee of any Letter of Credit or the proceeds thereof (or any Persons for whom any such transferee may be acting), the Issuing Lender or its Affiliates or any Lender or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between any Loan Party or Subsidiaries of a Loan Party and the beneficiary for which any Letter of Credit was procured);
(v)the lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of Credit, or the transport of any property or provision of services relating to a Letter of Credit, in each case even if the Issuing Lender or any of its Affiliates has been notified thereof;
(vi)payment by the Issuing Lender or any of its Affiliates under any Letter of Credit against presentation of a demand, draft or certificate or other document which does not comply with the terms of such Letter of Credit;
(vii)the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction or obligation relating 
38

to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic of any property or services relating to a Letter of Credit;
(viii)any failure by the Issuing Lender or any of its Affiliates to issue any Letter of Credit in the form requested by any Loan Party, unless the Issuing Lender has received written notice from such Loan Party of such failure within three (3) Business Days after the Issuing Lender shall have furnished such Loan Party and the Administrative Agent a copy of such Letter of Credit and such error is material and no drawing has been made thereon prior to receipt of such notice;
(ix)any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of any Loan Party or Subsidiaries of a Loan Party;
(x)any breach of this Agreement or any other Loan Document by any party thereto;
(xi)the occurrence or continuance of an Insolvency Proceeding with respect to any Loan Party;
(xii)the fact that an Event of Default or a Potential Default shall have occurred and be continuing;
(xiii)the fact that the Expiration Date shall have passed or this Agreement or the Commitments hereunder shall have been terminated; and
(xiv)any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.
(h)Liability for Acts and Omissions.  As between any Loan Party and the Issuing Lender, or the Issuing Lender’s Affiliates, such Loan Party assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit.  In furtherance and not in limitation of the foregoing, the Issuing Lender shall not be responsible for any of the following, including any losses or damages to any Loan Party or other Person or property relating therefrom:  (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged (even if the Issuing Lender or its Affiliates shall have been notified thereof); (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with any conditions required in order to draw upon such Letter of Credit or any other claim of any Loan Party against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among any Loan Party and any beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of 
39

technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Lender or its Affiliates, as applicable, including any act or omission of any Official Body, and none of the above shall affect or impair, or prevent the vesting of, any of the Issuing Lender’s or its Affiliates rights or powers hereunder.  Nothing in the preceding sentence shall relieve the Issuing Lender from liability for the Issuing Lender’s gross negligence or willful misconduct in connection with actions or omissions described in such clauses (i) through (viii) of such sentence; provided, that, in no event shall the Issuing Lender or its Affiliates be liable to any Loan Party for any indirect, consequential, incidental, punitive, exemplary or special damages (as opposed to direct or actual damages).
Without limiting the generality of the foregoing, the Issuing Lender and each of its Affiliates (i) may rely on any oral or other communication believed in good faith by the Issuing Lender or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit, (ii) may honor any presentation if the documents presented appear on their face substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and shall be entitled to reimbursement to the same extent as if such presentation had initially been honored, together with any interest paid by the Issuing Lender or its Affiliate; (iv) may honor any drawing that is payable upon presentation of a statement advising negotiation or payment, upon receipt of such statement (even if such statement indicates that a draft or other document is being delivered separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under the Laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on the Issuing Lender or its Affiliate in any way related to any order issued at the applicant’s request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document (each, an “Order”) and honor any drawing in connection with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other documents presented in connection with such Letter of Credit fail to conform in any way with such Letter of Credit.
In furtherance and extension and not in limitation of the specific provisions specified above, any action taken or omitted by the Issuing Lender or its Affiliates under or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in good faith and absent gross negligence or willful misconduct, shall not put the Issuing Lender or its Affiliates under any resulting liability to the Borrower or any Lender.
2.9Defaulting Lenders.
(a)Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:
40

(i)Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as specified in the definition of Required Lenders.
(ii)Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article 10 [Default] or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.2(b) [Setoff] shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Lender or Swingline Loan Lender hereunder; third, to Cash Collateralize the Issuing Lender’s Fronting Exposure with respect to such Defaulting Lender in accordance with Section 5.12 [Cash Collateral]; fourth, as the Borrower may request (so long as no Potential Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the Issuing Lender’s future Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with Section 5.12 [Cash Collateral]; sixth, to the payment of any amounts owing to the Lenders, the Issuing Lender or Swingline Loan Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Lender or Swingline Loan Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Potential Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Borrowing in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions specified in Section 7.2 [Each Loan or Letter of Credit] were satisfied or waived, such payment shall be applied solely to pay the Loans of, and Letter of Credit Borrowings owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or Letter of Credit Borrowing owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in Letter of Credit Obligations and Swingline Loans are held by the Lenders pro rata in accordance with the Commitments under the applicable Facility without giving effect to Section 2.9(a)(iv) [Reallocation of Participation to Reduce Fronting Exposure]. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.9(a)(ii) [Defaulting Lender Waterfall] shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.
41

(iii)Certain Fees.
(1)No Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).
(2)Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Ratable Share of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 5.12 [Cash Collateral].
(3)With respect to any Letter of Credit Fee not required to be paid to any Defaulting Lender pursuant to clause (1) or (2) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Letter of Credit Obligations or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to each Issuing Lender and Swingline Loan Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such Issuing Lender’s or Swingline Loan Lender’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.
(iv)Reallocation of Participations to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in Letter of Credit Obligations and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Ratable Shares (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that such reallocation does not cause the aggregate Revolving Facility Usage of any Non-Defaulting Lender to exceed such Non-Defaulting Lender’s Revolving Credit Commitment.  Subject to Section 12.12 [Acknowledgement and Consent to Bail-In of Affected Financial Institutions], no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.
(v)Cash Collateral, Repayment of Swingline Loans.  If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under Law, (x) first, prepay Swingline Loans in an amount equal to the Swingline Loan Lender’s Fronting Exposure and (y) second, Cash Collateralize the Issuing Lender’s Fronting Exposure in accordance with the procedures specified in Section 5.12 [Cash Collateral].
(b)Defaulting Lender Cure.  If the Borrower, the Administrative Agent and each Swingline Loan Lender and Issuing Lender agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions specified therein (which may 
42

include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the Commitments under the applicable Facility (without giving effect to Section 2.9(a)(iv) [Reallocation of Participations to Reduce Fronting Exposure], whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.
(c)New Swingline Loans/Letters of Credit.  So long as any Lender is a Defaulting Lender, (i) the Swingline Loan Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Fronting Exposure after giving effect to such Swingline Loan and (ii) no Issuing Lender shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no Fronting Exposure after giving effect thereto.
2.10Maturity Extensions.
(a)Requests for Extension.  The Borrower may, by notice to the Administrative Agent (who shall promptly notify the applicable Lenders of such request), which such notice shall not, in the case of a request for extension of the Expiration Date, be earlier than 75 days or later than 21 days prior to the Expiration Date then in effect hereunder (the “Existing Expiration Date”), request that each Lender to the Revolving Credit Facility extend the Expiration Date (the “Existing Expiration Date”) by one year; provided that there shall not be more than two such requests for an extension of the Expiration Date.
(b)Conditions to Effectiveness of Extensions.  Notwithstanding the foregoing, the extension of the Expiration Date pursuant to this Section shall only be effective if:
(i)each Lender has consented to such extension;
(ii)as of the date of such extension, and after giving effect thereto, the representations, warranties of the Borrower and the other Loan Parties herein and in the other Loan Documents shall be true and correct in all material respects (unless qualified by materiality or reference to the absence of a Material Adverse Change, in which event shall be true and correct), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section, the representations and warranties contained in Section 6.4 [Financial Statements] shall be deemed to refer to the most recent statements furnished pursuant to Section 8.10 [Reporting Requirements] (and the Borrower and each other Loan Party shall be deemed to have made all such representations and warranties on the date of such extension);
43

(iii)no Event of Default or Potential Default shall have occurred and be continuing on the date of such extension and after giving effect thereto;
(iv)the Borrower shall deliver or cause to be delivered any customary legal opinions or other documents (including, without limitation, a resolution duly adopted by the board of directors (or equivalent governing body) of each Loan Party authorizing such extension) reasonably requested by Administrative Agent in connection with any such extension;
(v)if such extension is being effectuated in accordance with the last paragraph of Section 12.1 [Modifications, Amendments or Waivers] pursuant to which the terms of such extended Loans or Commitments are being amended, an amendment entered into by the parties required by such provision shall have become effective.
2.11Incremental Loans. 
At any time, the Borrower may by written notice to the Administrative Agent elect to request the establishment of:
(a)one or more increases in the Revolving Credit Commitments (any such increase, an “Incremental Loan Commitments”) to make revolving credit loans under the Revolving Credit Facility (any such increase, an “Incremental Revolving Credit Increase” or an “Incremental Loan”); provided that (i) the total aggregate principal amount for all such Incremental Loan Commitments shall not (as of any date of incurrence thereof) exceed $125,000,000 and (ii) the total aggregate principal amount for each Incremental Loan Commitment (and the Incremental Loans  made thereunder) shall not be less than a minimum principal amount of $10,000,000 or, if less, the remaining amount permitted pursuant to the foregoing clause (i).  Each such notice shall specify the date (each, an “Increased Amount Date”) on which the Borrower proposes that any Incremental Loan Commitment shall be effective, which shall be a date not less than twenty (20) Business Days after the date on which such notice is delivered to Administrative Agent.  The Borrower shall invite existing Lenders and may invite  any Affiliate of any Lender and/or any Approved Fund, and/or any other Person reasonably satisfactory to the Administrative Agent, to provide an Incremental Loan Commitment (any such Person, an “Incremental Lender”); provided that both the Swingline Loan Lender and the Issuing Lender shall consent to each Incremental Lender providing any portion of an Incremental Revolving Credit Commitment.  Any proposed Incremental Lender offered or approached to provide all or a portion of any Incremental Loan Commitment may elect or decline, in its sole discretion, to provide such Incremental Loan Commitment.  Any Incremental Loan Commitment shall become effective as of such Increased Amount Date; provided that:
(i)no Potential Default or Event of Default shall exist on such Increased Amount Date before or after giving effect to (1) any Incremental Loan Commitment, (2) the making of any Incremental Loans pursuant thereto and (3) any acquisition consummated in connection therewith;
(ii)each of the representations and warranties contained in Article 6 shall be true and correct in all material respects, except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse 
44

Change, in which case, such representation and warranty shall be true, correct and complete in all respects, on such Increased Amount Date with the same effect as if made on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date);
(iii)the proceeds of any Incremental Loans shall be used for general corporate purposes of the Borrower and its Subsidiaries;
(iv)Any proposed Incremental Lender shall join this Agreement as a Lender pursuant to a Lender Joinder Agreement;
(v)each Incremental Loan Commitment (and the Incremental Loans made thereunder) shall constitute Obligations of the Borrower and shall be secured and guaranteed with the other Obligations on a pari passu basis;
(1)in the case of each Incremental Revolving Credit Increase:
(I)    such Incremental Revolving Credit Increase shall be part of the Revolving Credit Facility, shall mature on the Expiration Date, shall bear interest and be entitled to fees, in each case at the rate applicable to the Revolving Credit Facility, and shall otherwise be subject to the same terms and conditions as the Revolving Credit Facility;
(II)    any Incremental Lender making any Incremental Revolving Credit Increase shall be entitled to the same voting rights as the existing Lenders under the Revolving Credit Facility and (unless otherwise agreed by the applicable Incremental Lenders; provided that no such agreement shall allow the Revolving Credit Commitments with respect to the Incremental Revolving Credit Increase to be terminated prior to termination of the existing Revolving Credit Commitments) each Revolving Credit Loan funded by an Incremental Revolving Credit Increase shall receive proceeds of prepayments on the same basis as the existing Revolving Credit Loans (such prepayments to be shared pro rata on the basis of the original aggregate funded amount thereof); and
(III)    the outstanding Revolving Credit Loans and Ratable Shares of Swingline Loans and Letter of Credit Obligations will be reallocated by the Administrative Agent on the applicable Increased Amount Date among the Lenders to the Revolving Credit Facility (including the Incremental Lenders providing such Incremental Revolving Credit Increase) in accordance with their revised Ratable Shares (and the Lenders to the Revolving Credit Facility (including the Incremental Lenders providing such Incremental Revolving Credit Increase) agree to make all payments and adjustments 
45

necessary to effect such reallocation and the Borrower shall pay any and all costs required.
(2)Incremental Loan Commitments shall be effected pursuant to such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 2.11, without the consent of any other Lenders; and
(3)the Borrower shall deliver or cause to be delivered any customary legal opinions or other documents (including, without limitation, a resolution duly adopted by the board of directors (or equivalent governing body) of each Loan Party authorizing such Incremental Loans and/or Incremental Loan Commitments) reasonably requested by Administrative Agent in connection with any such transaction.
(b)The Incremental Lenders shall be included in any determination of the Required Lenders and, unless otherwise agreed, the Incremental Lenders will not constitute a separate voting class for any purposes under this Agreement.
(c)On any Increased Amount Date on which any Incremental Revolving Credit Increase becomes effective, subject to the foregoing terms and conditions, each Incremental Lender with an Incremental Revolving Credit Commitment shall become a Lender under the Revolving Credit Facility hereunder with respect to such Incremental Revolving Credit Commitment.
ARTICLE 3
TERM LOANS
3.1Term Loan Commitments.  Subject to the terms and conditions hereof, and relying upon the representations and warranties herein specified, each Lender severally agrees to make  term loans (together, the “Term Loan”) to the Borrower on or before April 28, 2022 in such principal amounts as the Borrower shall request up to, but not exceeding, such Lender’s Term Loan Commitment; provided that not more than three borrowings of Term Loans may be made under this Agreement.
3.2Nature of Lenders’ Obligations with Respect to Term Loans; Repayment Terms.
(a)The obligations of each Lender to make Term Loans to the Borrower shall equal its Ratable Share of the requested Term Loan; provided that no Lender’s Term Loan to the Borrower shall exceed its Term Loan Commitment.  The failure of any Lender to make a Term Loan shall not relieve any other Lender of its obligations to make a Term Loan nor shall it impose any additional liability on any other Lender hereunder.  The Lenders shall have no obligation to make Term Loans hereunder after April 28, 2022 and any portion of the Term Loan Commitment not drawn on April 28, 2022 shall automatically expire.  The Term Loan Commitments are not revolving credit commitments, and the Borrower shall not have the right to borrow, repay and reborrow under Section 3.1 [Term Loan Commitments].  Upon borrowing any Term Loan, the Term Loan Commitments shall be reduced by the amount of such borrowing.
46

(b)The Borrower shall repay to the applicable Lenders the aggregate principal amount of all Term Loans outstanding on the Term Loan Maturity Date and in any event shall be in an amount equal to the aggregate principal amount of all Term Loans outstanding on such date.
3.3Termination or Reduction of Term Loan Commitments.  The Borrower shall have the right, upon not less than three (3) Business Days’ notice to the Administrative Agent, to terminate the Term Loan Commitments or, from time to time, to reduce the aggregate amount of the Term Loan Commitments (ratably among the Lenders in proportion to their Ratable Shares).  Any such reduction shall be in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Term Loan Commitments then in effect.  Any notice to reduce the Revolving Credit Commitments under this Section 2.4 shall be irrevocable; provided that any such notice may state that such notice is conditioned upon the effectiveness of other credit facilities, debt or equity issuances or other transactions specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.
3.4Commitment Fees.  Accruing for each day from January 26, 2022 until the date when the Term Loan Commitments have terminated or been reduced to zero (and without regard to whether the conditions to making Term Loans are then met), the Borrower agrees to pay to the Administrative Agent for the account of each Lender according to its Ratable Share, a Commitment Fee equal to the Applicable Margin for Commitment Fee for such day  (computed on the basis of a year of 360 days and actual days elapsed) multiplied by the difference for such day between the amount of (a) the Term Loan Commitments minus (b) the amount of the Term Loans that have been borrowed; provided that no Defaulting Lender shall be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such Commitment Fee that otherwise would have been required to have been paid to that Defaulting Lender).  Subject to the proviso in the directly preceding sentence, all Commitment Fees shall be payable in arrears on each Payment Date.
ARTICLE 4
INTEREST RATES
4.1Interest Rate Options.  The Borrower shall pay interest in respect of the outstanding unpaid principal amount of the Loans as selected by it from the Base Rate Option or LIBOR Rate Option specified below applicable to the Revolving Credit Loans, the Terms Loans, or the Swingline Loans, respectively, it being understood that, subject to the provisions of this Agreement, the Borrower may select different Interest Rate Options and different Interest Periods to apply simultaneously to the Loans comprising different Borrowing Tranches and may convert to or renew one or more Interest Rate Options with respect to all or any portion of the Loans comprising any Borrowing Tranche; provided that there shall not be at any one time outstanding more than eight (8) Borrowing Tranches of Revolving Credit Loans or more than five (5) Borrowing Tranches of Term Loans; provided further that if an Event of Default or Potential Default exists and is continuing, the Borrower may not request, convert to, or renew the LIBOR Rate Option for any Loans and the Required Lenders may demand that all existing Borrowing Tranches bearing interest under the LIBOR Rate Option shall be converted immediately to the Base Rate Option, subject to the obligation of the Borrower to pay any indemnity under Section 5.10 [Indemnity] in connection with such conversion.  If at any time the designated rate applicable 
47

to any Loan made by any Lender exceeds such Lender’s highest lawful rate, the rate of interest on such Lender’s Loan shall be limited to such Lender’s highest lawful rate.
(a)Revolving Credit Interest Rate Options.  The Borrower shall have the right to select from the following Interest Rate Options applicable to the Revolving Credit Loans:
(i)Revolving Credit Base Rate Option:  A fluctuating rate per annum (computed on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from time to time effective as of the effective date of each change in the Base Rate; or
(ii)Revolving Credit LIBOR Rate Option:  A rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the LIBOR Rate as determined for each applicable Interest Period plus the Applicable Margin.
(b)Swingline Loan Interest Rate.  Subject to Section 4.3 [Interest After Default], only the Base Rate Option applicable to Revolving Credit Loans shall apply to the Swingline Loans.
(c)Term Loan Interest Rate Options.  The Borrower shall have the right to select from the following Interest Rate Options applicable to the Term Loans:
(i)Term Loan Base Rate Option:  A fluctuating rate per annum (computed on the basis of a year of  365 or 366 days, as the case may be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate to change automatically from time to time effective as of the effective date of each change in the Base Rate; or
(ii)Term Loan LIBOR Rate Option:  A rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal to the LIBOR Rate as determined for each applicable Interest Period plus the Applicable Margin.
(d)Rate Quotations.  The Borrower may call the Administrative Agent on or before the date on which a Loan Request is to be delivered to receive an indication of the rates then in effect, but it is acknowledged that such projection shall not be binding on the Administrative Agent or the Lenders nor affect the rate of interest which thereafter is actually in effect when the election is made.
4.2Interest Periods.  At any time when the Borrower shall select, convert to or renew a LIBOR Rate Option, the Borrower shall notify the Administrative Agent thereof at least three (3) Business Days prior to the effective date of such LIBOR Rate Option by delivering a Loan Request.  The notice shall specify an Interest Period during which such Interest Rate Option shall apply.  Notwithstanding the preceding sentence, the following provisions shall apply to any selection of, renewal of, or conversion to a LIBOR Rate Option:
48

(a)Amount of Borrowing Tranche.  Each Borrowing Tranche of Loans under the LIBOR Rate Option shall be in integral multiples of, and not less than, the respective amounts specified in Section 2.5(a) [Revolving Credit Loan Requests; Conversions and Renewals]; and
(b)Renewals.  In the case of the renewal of a LIBOR Rate Option at the end of an Interest Period, the first day of the new Interest Period shall be the last day of the preceding Interest Period, without duplication in payment of interest for such day.
4.3Interest After Default.  To the extent permitted by Law, upon the occurrence of an Event of Default and until such time such Event of Default shall have been cured or waived, automatically with respect to Events of Default under Sections 10.1(a), (b), (h) and (i),  and for any other Event of Default, upon written demand by the Required Lenders to the Administrative Agent:
(a)Letter of Credit Fees, Interest Rate.  The Letter of Credit Fees and the rate of interest for each Loan otherwise applicable pursuant to Section 2.8(b) [Letter of Credit Fees] or Section 4.1 [Interest Rate Options], respectively, shall be increased by 2.0% per annum;
(b)Other Obligations.  Each other Obligation hereunder if not paid when due shall bear interest at a rate per annum equal to the sum of the rate of interest applicable to Revolving Credit Loans under the Base Rate Option plus an additional 2.0% per annum from the time such Obligation becomes due and payable until the time such Obligation is paid in full; and
(c)Acknowledgment.  The Borrower acknowledges that the increase in rates referred to in this Section 4.3 reflects, among other things, the fact that such Loans or other amounts have become a substantially greater risk given their default status and that the Lenders are entitled to additional compensation for such risk; and all such interest shall be payable by Borrower upon demand by Administrative Agent.
4.4LIBOR Rate Unascertainable; Increased Costs; Deposits Not Available; Illegality; Benchmark Replacement Setting.
(a)Unascertainable; Increased Costs; Deposits Not Available.  Subject to Section 4.4(d), if, on or prior to the first day of an Interest Period:
(i)the Administrative Agent shall have determined (which determination shall be conclusive and binding absent manifest error) (x) that by reason of circumstances affecting the London or other applicable offshore interbank market, LIBOR Rate cannot be determined because the LIBOR Rate is not available or published on a current basis or (y) a fundamental change has occurred in the foreign exchange or interbank markets with respect to LIBOR (including, without limitation, changes in national or international financial, political or economic conditions or currency exchange rates or exchange controls), or
(ii)the Required Lenders determine that for any reason in connection with any request for a LIBOR Rate Loan or a conversion thereto or a continuation thereof that (A) Dollar deposits are not available to any Lender in connection with such LIBOR Rate Loan or being offered to banks in the London or other applicable offshore interbank 
49

market for the amount and Interest Period of such LIBOR Rate Loan, or (B) the LIBOR Rate for any requested Interest Period with respect to a proposed LIBOR Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan,
then the Administrative Agent shall have the rights specified in Section 4.4(c) [Administrative Agent’s and Lender’s Rights].
(b)Illegality.  If at any time any Lender shall have determined that the making, maintenance or funding of any LIBOR Rate Loan has been made impracticable or unlawful by compliance by such Lender in good faith with any Law or any interpretation or application thereof by any Official Body or with any request or directive of any such Official Body (whether or not having the force of Law),
then the Administrative Agent shall have the rights specified in Section 4.4(c) [Administrative Agent’s and Lender’s Rights].
(c)Administrative Agent’s and Lender’s Rights.  In the case of any event specified in Section 4.4(a) [Unascertainable; Increased Costs; Deposits Not Available] above, the Administrative Agent shall promptly so notify the Lenders and the Borrower thereof, and in the case of an event specified in Section 4.4(b) [Illegality] above, such Lender shall promptly so notify the Administrative Agent and endorse a certificate to such notice as to the specific circumstances of such notice, and the Administrative Agent shall promptly send copies of such notice and certificate to the other Lenders and the Borrower.  Upon such date as shall be specified in such notice (which shall not be earlier than the date such notice is given), the obligation of (i) the Lenders, in the case of such notice given by the Administrative Agent, or (ii) such Lender, in the case of such notice given by such Lender, to allow the Borrower to select, convert to or renew a LIBOR Rate Loan shall be suspended (to the extent of the affected LIBOR Rate Loan or Interest Periods) until the Administrative Agent shall have later notified the Borrower, or such Lender shall have later notified the Administrative Agent, of the Administrative Agent’s or such Lender’s, as the case may be, determination that the circumstances giving rise to such previous determination no longer exist.  If at any time the Administrative Agent makes a determination under Section 4.4(a) [Unascertainable; Increased Costs; Deposits Not Available] and the Borrower has previously notified the Administrative Agent of its selection of, conversion to or renewal of a LIBOR Rate Option and the LIBOR Rate Option has not yet gone into effect, such notification shall be deemed to provide for selection of, conversion to or renewal of the Base Rate Option otherwise available with respect to such Loans.  If any Lender notifies the Administrative Agent of a determination under Section 4.4(b) [Illegality], the Borrower shall, subject to the Borrower’s indemnification Obligations under Section 5.10 [Indemnity], as to any Loan of the Lender to which a LIBOR Rate Option applies, on the date specified in such notice either convert such Loan to the Base Rate Option otherwise available with respect to such Loan or prepay such Loan in accordance with Section 5.2 [Voluntary Prepayments].  Absent due notice from the Borrower of conversion or prepayment, such Loan shall automatically be converted to the Base Rate Option otherwise available with respect to such Loan upon such specified date.
50

(d)Benchmark Replacement Setting. 
(i)Announcements Related to LIBOR.  On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR (the “IBA”) and the U.K. Financial Conduct Authority, the regulatory supervisor for the IBA, announced in a public statement the future cessation or loss of representativeness of overnight/Spot Next, 1-week, 1-month, 2-month, 3-month, 6-month and 12-month USD LIBOR tenor settings (collectively, the “Cessation Announcements”). The parties hereto acknowledge that, as a result of the Cessation Announcements, a Benchmark Transition Event occurred on March 5, 2021 with respect to USD LIBOR under clauses (1) and (2) of the definition of Benchmark Transition Event below; provided however, no related Benchmark Replacement Date occurred as of such date.
(ii)Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document (and any agreement executed in connection with a Swap shall be deemed not to be a “Loan Document” for purposes of this Section titled “Benchmark Replacement Setting”), if a Benchmark Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders of each Class.
(iii)Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.
(iv)Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (1) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event, an Early Opt-in Election, or an Other Benchmark Rate Election, as applicable, and its related 
51

Benchmark Replacement Date, (2) the implementation of any Benchmark Replacement, (3) the effectiveness of any Benchmark Replacement Conforming Changes, (4) the removal or reinstatement of any tenor of a Benchmark pursuant to paragraph (v) below and (5) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section titled “Benchmark Replacement Setting,” including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section titled “Benchmark Replacement Setting.”
(v)Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (1) if the then-current Benchmark is a term rate (including Term SOFR or USD LIBOR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (2) if a tenor that was removed pursuant to clause (1) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.
(vi)Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Loan bearing interest based on USD LIBOR, conversion to or continuation of Loans bearing interest based on USD LIBOR to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Loan of or conversion to Loans bearing interest under the Base Rate Option. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Base Rate.
(vii)Term SOFR Transition Event.  Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (1) the applicable Benchmark Replacement will replace the then-current 
52

Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting (the “Secondary Term SOFR Conversion Date”) and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; and (2) Loans outstanding on the Secondary Term SOFR Conversion Date bearing interest based on the then-current Benchmark shall be deemed to have been converted to Loans bearing interest at the Benchmark Replacement with a tenor approximately the same length as the interest payment period of the then-current Benchmark; provided that, this paragraph (vii) shall not be effective unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice. For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice after a Term SOFR Transition Event and may do so in its sole discretion.
(viii)Certain Defined Terms. As used in this Section titled “Benchmark Replacement Setting”:
“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then current Benchmark is a term rate or is based on a term rate, any tenor for such Benchmark that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to paragraph (v) of this Section titled “Benchmark Replacement Setting”, or (y) if the then current Benchmark is not a term rate nor based on a term rate, any payment period for interest calculated with reference to such Benchmark pursuant to this Agreement as of such date.
“Benchmark” means, initially, USD LIBOR; provided that if a Benchmark Transition Event, a Term SOFR Transition Event, an Early Opt-in Election, or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to paragraph (ii) of this Section titled “Benchmark Replacement Setting.”
“Benchmark Replacement” means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:
(1)    the sum of: (A) Term SOFR and (B) the related Benchmark Replacement Adjustment;
(2)    the sum of: (A) Daily Simple SOFR and (B) the related Benchmark Replacement Adjustment;
(3)    the sum of: (A) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the 
53

then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (I) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (II) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (B) the related Benchmark Replacement Adjustment;
provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided, further, that, in the case of an Other Benchmark Rate Election, the “Benchmark Replacement” shall mean the alternative set forth in clause (3) above and when such clause is used to determine the Benchmark Replacement in connection with the occurrence of an Other Benchmark Rate Election, the alternate benchmark rate selected by the Administrative Agent and the Borrower shall be the term benchmark rate that is used in lieu of a USD LIBOR-based rate in relevant other U.S. dollar-denominated syndicated credit facilities; provided, further, that, with respect to a Term SOFR Transition Event, on the applicable Benchmark Replacement Date, the “Benchmark Replacement” shall revert to and shall be determined as set forth in clause (1) of this definition. If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available Tenor for any setting of such Unadjusted Benchmark Replacement:
(1) for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the applicable amount(s) set forth below:
						
	Available Tenor	Benchmark Replacement Adjustment
	One-Month	0.11448% (11.448 basis points)
	Three-Months	0.26161% (26.161 basis points)
	Six-Months	0.42826% (42.826 basis points)

(2)    for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (A) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable 
54

Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (B) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities;
provided that, if the then-current Benchmark is a term rate, more than one tenor of such Benchmark is available as of the applicable Benchmark Replacement Date and the applicable Unadjusted Benchmark Replacement will not be a term rate, the Available Tenor of such Benchmark for purposes of this definition of “Benchmark Replacement Adjustment” shall be deemed to be the Available Tenor that has approximately the same length (disregarding business day adjustments) as the payment period for interest calculated with reference to such Unadjusted Benchmark Replacement.
“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent determines in its reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines in its reasonable discretion that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent determines in its reasonable discretion is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).
“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark: 
(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);
(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date determined by the Administrative Agent, which date shall promptly 
55

follow the date of the public statement or publication of information referenced therein;
(3) in the case of a Term SOFR Transition Event, the date that is set forth in the Term SOFR Notice provided to the Lenders and the Borrower pursuant to this Section titled “Benchmark Replacement Setting”, which date shall be at least 30 days from the date of the Term SOFR Notice; or
(4) in the case of an Early Opt-in Election or an Other Benchmark Rate Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election or an Other Benchmark Rate Election, as applicable, is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election or an Other Benchmark Rate Election, as applicable, is provided to the Lenders, written notice of objection to such Early Opt-in Election or an Other Benchmark Rate Election, as applicable, from Lenders comprising the Required Lenders.
For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:
(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);
(2) a public statement or publication of information by an Official Body having jurisdiction over the Administrative Agent, the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such 
56

Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or
(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) or an Official Body having jurisdiction over the Administrative Agent announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative.
For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Unavailability Period” means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with this Section titled “Benchmark Replacement Setting” and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with this Section titled “Benchmark Replacement Setting.”
“Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.
“Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.
“Early Opt-in Election” means, if the then-current Benchmark is USD LIBOR, the occurrence of:
(1) a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a 
57

SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and
(2) the joint election by the Administrative Agent and the Borrower to trigger a fallback from USD LIBOR and the provision by the Administrative Agent of written notice of such election to the Lenders.
“Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to USD LIBOR or, if no floor is specified, zero.
“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.
“Other Benchmark Rate Election” means, if the then-current Benchmark is USD LIBOR, the occurrence of: (x) either (i) a request by the Borrower to the Administrative Agent , or (ii) notice by the Administrative Agent to the Borrower, that, at the determination of the Borrower or the Administrative Agent, as applicable, U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed), in lieu of a USD LIBOR based rate, a term benchmark rate as a benchmark rate, and (y) the Administrative Agent, in its sole discretion, and the Borrower jointly elect to trigger a fallback from USD LIBOR and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders.
“Reference Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is USD LIBOR, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not USD LIBOR, the time determined by the Administrative Agent in its reasonable discretion.
“Relevant Governmental Body” means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.
“SOFR” means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website on the immediately succeeding Business Day.
“SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).
58

“SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.
“Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
“Term SOFR Notice” means a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Transition Event.
“Term SOFR Transition Event” means the determination by the Administrative Agent that (1) Term SOFR has been recommended for use by the Relevant Governmental Body, and is determinable for each Available Tenor, (2) the administration of Term SOFR is administratively feasible for the Administrative Agent and (3) a Benchmark Transition Event or an Early Opt-in Election, as applicable (and, for the avoidance of doubt, not in the case of an Other Benchmark Rate Election), has previously occurred resulting in a Benchmark Replacement in accordance with Section titled “Benchmark Replacement Setting” that is not Term SOFR.
“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.
“USD LIBOR” means the London interbank offered rate for U.S. dollars.
4.5Selection of Interest Rate Options.  If the Borrower fails to select a new Interest Period to apply to any Borrowing Tranche of Loans under the LIBOR Rate Option at the expiration of an existing Interest Period applicable to such Borrowing Tranche in accordance with the provisions of Section 4.2 [Interest Periods], the Borrower shall be deemed to have converted such Borrowing Tranche to the Base Rate Option, as applicable to Revolving Credit Loans or Term Loans as the case may be, commencing upon the last day of the existing Interest Period. If the Borrower provides any Loan Request related to a Loan at the LIBOR Rate Option but fails to identify an Interest Period therefor, such Loan Request shall be deemed to request an Interest Period of one (1) month.  Any Loan Request that fails to select an Interest Rate Option shall be deemed to be a request for the Base Rate Option.
ARTICLE 5
PAYMENTS; TAXES; YIELD MAINTENANCE
5.1Payments.  All payments and prepayments to be made in respect of principal, interest, Commitment Fees, Letter of Credit Fees, Administrative Agent’s Fee or other fees or amounts due from the Borrower hereunder shall be payable prior to 1:00 p.m. Eastern Time on the date when due without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the Borrower, and without set-off, counterclaim or other deduction of any nature, and an action therefor shall immediately accrue.  Such payments shall be made to the Administrative Agent at the Principal Office for the account of the Swingline Loan Lender with 
59

respect to the Swingline Loans and for the ratable accounts of the Lenders with respect to the Revolving Credit Loans or Term Loans in U.S. Dollars and in immediately available funds, and the Administrative Agent shall promptly distribute such amounts to the Lenders in immediately available funds; provided that in the event payments are received by 1:00 p.m. Eastern Time by the Administrative Agent with respect to the Loans and such payments are not distributed to the Lenders on the same day received by the Administrative Agent, the Administrative Agent shall pay the Lenders interest at the Effective Federal Funds Rate with respect to the amount of such payments for each day held by the Administrative Agent and not distributed to the Lenders.  The Administrative Agent’s statement of account, ledger or other relevant record shall, in the absence of manifest error, be conclusive as the statement of the amount of principal of and interest on the Loans and other amounts owing under this Agreement.
5.2Voluntary Prepayments.
(a)Right to Prepay.  The Borrower shall have the right at its option from time to time to prepay the Loans in whole or part without premium or penalty (except as provided in Section 5.13 [Replacement of a Lender] below, in Section 5.8 [Increased Costs] and Section 5.10 [Indemnity]).  Whenever the Borrower desires to prepay any part of the Loans, it shall provide a prepayment notice to the Administrative Agent by 1:00 p.m. Eastern Time at least one (1) Business Day prior to the date of prepayment of the Revolving Credit Loans or Term Loans that bear interest at the Base Rate Option and at least three (3) Business Days in the case of Loans bearing interest at the LIBOR Rate Option, or no later than 1:00 p.m. Eastern Time on the date of prepayment of Swingline Loans, setting forth the following information:
(i)the date, which shall be a Business Day, on which the proposed prepayment is to be made;
(ii)a statement indicating the application of the prepayment between the Revolving Credit Loans, Term Loans and Swingline Loans;
(iii)a statement indicating the application of the prepayment between Loans to which the Base Rate Option applies and Loans to which the LIBOR Rate Option applies; and
(iv)the total principal amount of such prepayment, which shall not be less than the lesser of (A) the Revolving Facility Usage or (B) $100,000 for any Swingline Loan or $100,000 for any Revolving Credit Loan or Term Loan.
All prepayment notices shall be irrevocable; provided that any such notice may state that such notice is conditioned upon the effectiveness of other credit facilities, debt or equity issuances or other transactions specified therein, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  The principal amount of the Loans for which a prepayment notice is given, together with interest on such principal amount, shall be due and payable on the date specified in such prepayment notice as the date on which the proposed prepayment is to be made.  All Term Loan prepayments permitted pursuant to this Section 5.2 shall be applied to the unpaid installments of principal of the Term Loans in order of scheduled maturities (unless otherwise specified by the Borrower).  Except as provided in Section 4.4(c) [Administrative Agent’s and 
60

Lender’s Rights], if the Borrower prepays a Loan but fails to specify the applicable Borrowing Tranche which the Borrower is prepaying, the prepayment shall be applied (1) first to Revolving Credit Loans and then to Term Loans; and (2) after giving effect to the allocations in clause (1) above and in the preceding sentence, first to Loans to which the Base Rate Option applies, then to Loans to which the LIBOR Rate Option applies.  Any prepayment hereunder shall be subject to the Borrower’s Obligation to indemnify the Lenders under Section 5.10 [Indemnity].
5.3[Reserved].
5.4Pro Rata Treatment of Lenders.  Each borrowing of Revolving Credit Loans shall be allocated to each Lender according to its Ratable Share, and each selection of, conversion to or renewal of any Interest Rate Option and each payment or prepayment by the Borrower with respect to principal, interest, Commitment Fees and Letter of Credit Fees (but excluding the Administrative Agent’s Fee and the Issuing Lender’s fronting fee) shall (except as otherwise may be provided with respect to a Defaulting Lender and except as provided in Sections 4.4(c) [Administrative Agent’s and Lender’s Rights] in the case of an event specified in Section 4.4 [LIBOR Rate Unascertainable; Etc.], 5.13 [Replacement of a Lender] or 5.8 [Increased Costs]) be payable ratably among the Lenders entitled to such payment in accordance with the amount of principal, interest, Commitment Fees and Letter of Credit Fees, as specified in this Agreement.  Notwithstanding any of the foregoing, each borrowing or payment or prepayment by the Borrower of principal, interest, fees or other amounts from the Borrower with respect to Swingline Loans shall be made by or to the Swingline Loan Lender according to Section 2.6.(e) [Borrowings to Repay Swingline Loans].
5.5Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff, counterclaim or banker’s lien or other any right, by receipt of voluntary payment, by realization upon security, or by any other non-pro rata source, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender’s receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than the pro-rata share of the amount such Lender is entitled thereto, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other amounts owing them, provided that:
(i)if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery; and
(ii)the provisions of this Section 5.5 shall not be construed to apply to (x) any payment made by the Loan Parties pursuant to and in accordance with the express terms of the Loan Documents (including the application of funds arising from the existence of a Defaulting Lender) or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or Participation Advances to any assignee or participant.
61

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Loan Party in the amount of such participation.
5.6Administrative Agent’s Clawback.
(a)Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender (x) in the case of Loans to which the Base Rate Option applies, by 11:00 a.m. Eastern time on the date of the proposed Borrowing Tranche of Loans and (y) otherwise, prior to the proposed date of any Borrowing Tranche of Loans that such Lender will not make available to the Administrative Agent such Lender’s Ratable Share, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.6 (a) [Making Revolving Credit Loans] or Section 3.2 [Nature of Lenders’ Obligations with Respect to Term Loans; Repayment Terms] and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing Tranche of Loans available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of a payment to be made by such Lender, the greater of the Effective Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, and (ii) in the case of a payment to be made by the Borrower, the interest rate applicable to Loans under the Base Rate Option.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing Tranche of Loans to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing Tranche of Loans.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.
(b)Payments by Borrower; Presumptions by Administrative Agent.  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 Lender 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 Lender, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Lender, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Lender, with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Effective Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
62

5.7Interest Payment Dates.  Interest on Loans to which the Base Rate Option applies shall be due and payable in arrears on each Payment Date.  Interest on Loans to which the LIBOR Rate Option applies shall be due and payable on the last day of each Interest Period for those Loans and, if such Interest Period is longer than three (3) Months, also on the 90th day of such Interest Period.  Interest on the principal amount of each Loan or other monetary Obligation shall be due and payable on demand after such principal amount or other monetary Obligation becomes due and payable (whether on the stated Expiration Date, upon acceleration or otherwise).
5.8Increased Costs.
(a)Increased Costs Generally.  If any Change in Law shall:
(i)impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR Rate) or the Issuing Lender;
(ii)subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(iii)impose on any Lender, the Issuing Lender or, if applicable, the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein;
and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Loan or of maintaining its obligation to make any such Loan, or to increase the cost to such Lender, the Issuing Lender or such other Recipient of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender, the Issuing Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender, the Issuing Lender or other Recipient, the Borrower will pay to such Lender, the Issuing Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
(b)Capital Requirements.  If any Lender or the Issuing Lender determines that any Change in Law affecting such Lender or the Issuing Lender or any Lending Office of such Lender or such Lender’s or the Issuing Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Lender’s capital or on the capital of such Lender’s or the Issuing Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit issued by the Issuing Lender, to a level below that which such Lender or the 
63

Issuing Lender or such Lender’s or the Issuing Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Lender’s policies and the policies of such Lender’s or the Issuing Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the Issuing Lender, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s holding company for any such reduction suffered.
(c)Certificates for Reimbursement.  A certificate of a Lender or the Issuing Lender setting forth the amount or amounts necessary to compensate such Lender or the Issuing Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the Issuing Lender, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof.
(d)Delay in Requests.  Failure or delay on the part of any Lender or the Issuing Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Lender’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender or the Issuing Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine (9) months prior to the date that such Lender or the Issuing Lender, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine (9) month period referred to above shall be extended to include the period of retroactive effect thereof).
5.9Taxes.
(a)Issuing Lender.  For purposes of this Section 5.9, the term “Lender” includes the Issuing Lender and the term “applicable Law” includes FATCA.
(b)Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be 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 Official Body in accordance with applicable Law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 5.9) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
(c)Payment of Other Taxes by the Loan Parties.  The Loan Parties shall timely pay to the relevant Official Body in accordance with applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
64

(d)Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 5.9) 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 Official Body.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
(e)Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of any of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 12.8(a) [Successors and Assigns Generally] 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 Official Body.  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 Section 5.9(e).
(f)Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan Party to an Official Body pursuant to this Section 5.9, such Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Official Body evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
(g)Status of Lenders.
(i)Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower 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 
65

documentation (other than such documentation specified in Section 5.9.(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. Borrower,
(1)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 copies (or, if required, originals) of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;
(2)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 copies (or, if required, originals)  of IRS Form W-8BEN-E (or W-8BEN if 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-E (or W-8BEN if 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;
(II)    executed copies (or, if required, 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 H-1 to the effect that such Foreign Lender is not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax 
66

Compliance Certificate”) and (y) executed copies (or, if required, originals) of IRS Form W-8BEN-E (or W-8BEN if applicable); or
(IV)    to the extent a Foreign Lender is not the beneficial owner, executed copies (or, if required, originals) of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E (or W-8BEN if applicable), a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-2 or Exhibit H-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit H-4 on behalf of each such direct and indirect partner;
(3)any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies (or, if required, 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
(4)if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by Law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or 
67

promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.
(h)Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 5.9 (including by the payment of additional amounts pursuant to this Section 5.9), 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 5.9  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 Official Body with respect to such refund).  Such indemnifying party, upon the request of such indemnified party incurred in connection with obtaining such refund, shall repay to such indemnified party the amount paid over pursuant to this Section 5.9(h) (plus any penalties, interest or other charges imposed by the relevant Official Body) in the event that such indemnified party is required to repay such refund to such Official Body.  Notwithstanding anything to the contrary in this Section 5.9(h)), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this Section 5.9(h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
(i)Survival.  Each party’s obligations under this Section 5.9 shall survive the resignation of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all Obligations.
5.10Indemnity.  In addition to the compensation or payments required by Section 5.8 [Increased Costs] or Section 5.9 [Taxes], the Borrower shall indemnify each Lender against all liabilities, losses or expenses (excluding loss of margin, but including any foreign exchange losses and any loss or expense arising from the liquidation or redeployment of funds obtained by it to maintain such Loan, from fees payable to terminate the deposits from which such funds were obtained or from the performance of any foreign exchange contract) which such Lender sustains or incurs as a consequence of any:
(a)payment, prepayment, conversion or renewal of any Loan to which a LIBOR Rate Option applies on a day other than the last day of the corresponding Interest Period (whether or not such payment or prepayment is mandatory, voluntary or automatic and whether or not such payment or prepayment is then due); or
(b)attempt by the Borrower to revoke (expressly, by later inconsistent notices or otherwise) in whole or part any Loan Requests under Section 2.5 [Revolving Credit Loan Requests; Conversions and Renewals; Swingline Loan Requests] or Section 4.2 [Interest Periods] or notice relating to prepayments under Section 5.2 [Voluntary Prepayments] or failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, 
68

continue or convert any Loan other than a Loan under the Base Rate Option on the date or in the amount notified by the Borrower, or
(c)any assignment of a Loan under the LIBOR Rate Option on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 5.13 [Replacement of a Lender].
If any Lender sustains or incurs any such loss or expense, it shall from time to time notify the Borrower of the amount determined in good faith by such Lender (which determination may include such assumptions, allocations of costs and expenses and averaging or attribution methods as such Lender shall deem reasonable) to be necessary to indemnify such Lender for such loss or expense.  Such notice shall specify in reasonable detail the basis for such determination.  Such amount shall be due and payable by the Borrower to such Lender ten (10) Business Days after such notice is given.
5.11Settlement Date Procedures.  In order to minimize the transfer of funds between the Lenders and the Administrative Agent, the Borrower may borrow, repay and reborrow Swingline Loans and the Swingline Loan Lender may make Swingline Loans as provided in Section 2.1(b) [Swingline Loan Commitments] hereof during the period between Settlement Dates.  The Administrative Agent shall notify each Lender of its Ratable Share of the total of the Revolving Credit Loans and the Swingline Loans (each, a “Required Share”).  On such Settlement Date, each Lender shall pay to the Administrative Agent the amount equal to the difference between its Required Share and its Revolving Credit Loans, and the Administrative Agent shall pay to each Lender its Ratable Share of all payments made by the Borrower to the Administrative Agent with respect to the Revolving Credit Loans.  The Administrative Agent shall also effect settlement in accordance with the foregoing sentence on the proposed Borrowing Dates for Revolving Credit Loans and on any mandatory prepayment date as provided for herein and may at its option effect settlement on any other Business Day.  These settlement procedures are established solely as a matter of administrative convenience, and nothing contained in this Section 5.11 shall relieve the Lenders of their obligations to fund Revolving Credit Loans on dates other than a Settlement Date pursuant to Section 2.1(b) [Swingline Loan Commitment].  The Administrative Agent may at any time at its option for any reason whatsoever require each Lender to pay immediately to the Administrative Agent such Lender’s Ratable Share of the outstanding Revolving Credit Loans and each Lender may at any time require the Administrative Agent to pay immediately to such Lender its Ratable Share of all payments made by the Borrower to the Administrative Agent with respect to the Revolving Credit Loans.
5.12Cash Collateral.  At any time that there shall exist a Defaulting Lender, within three (3) Business Days following the written request of the Administrative Agent or the Issuing Lender (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Lender’s Fronting Exposure with respect to such Defaulting Lender (determined after giving effect to Section 2.9(a)(iv) [Reallocation of Participations to Reduce Fronting Exposure] and any Cash Collateral provided by such Defaulting Lender) in an amount not less than the Minimum Collateral Amount.
(a)Grant of Security Interest.  The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the 
69

benefit of the Issuing Lender, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lenders’ obligation to fund participations in respect of Letter of Credit Obligations, to be applied pursuant to clause (b) below.  If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Lender as herein provided, or that the total amount of such Cash Collateral is less than the Minimum Collateral Amount, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).
(b)Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 5.12 or Section 2.9 [Defaulting Lender] in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender’s obligation to fund participations in respect of Letter of Credit Obligations (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.
(c)Termination of Requirement.  Cash Collateral (or the appropriate portion thereof) provided to reduce the Issuing Lender’s Fronting Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 5.12  following (i) the elimination of the applicable Fronting Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (ii) the determination by the Administrative Agent and the Issuing Lender that there exists excess Cash Collateral; provided that, subject to Section 2.9 [Defaulting Lenders] the Person providing Cash Collateral and the Issuing Lender may agree that Cash Collateral shall be held to support future anticipated Fronting Exposure or other obligations and provided further that to the extent that such Cash Collateral was provided by the Borrower, such Cash Collateral shall remain subject to the security interest granted pursuant to Section 5.12(a) above.
5.13Replacement of a Lender.  If any Lender requests compensation under Section 5.8 [Increased Costs], or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Official Body for the account of any Lender pursuant to Section 5.9 [Taxes] and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with Section 5.14 [Designation of a Different Lending Office], or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 12.8 [Successors and Assigns]), all of its interests, rights (other than its existing rights to payments pursuant to Section 5.8 [Increased Cost] or Section 5.9 [Taxes]) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:
(a)the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 12.8 [Successors and Assigns];
70

(b)such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letter of Credit Borrowings, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 5.10 [Indemnity]) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
(c)in the case of any such assignment resulting from a claim for compensation under Section 5.8 [Increased Costs] or payments required to be made pursuant to Section 5.9 [Taxes], such assignment will result in a reduction in such compensation or payments thereafter;
(d)such assignment does not violate applicable Law; and
(e)in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
5.14Designation of a Different Lending Office.  If any Lender requests compensation under Section 5.8 [Increased Costs], or the Borrower is or will be required to pay any Indemnified Taxes or additional amounts to any Lender or any Official Body for the account of any Lender pursuant to Section 5.9 [Taxes], then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 5.8 [Increased Costs] or Section 5.9 [Taxes], as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
ARTICLE 6
REPRESENTATIONS AND WARRANTIES
The Loan Parties, jointly and severally, represent and warrant to the Administrative Agent and each of the Lenders as follows:
6.1Organization. Each Loan Party and its Subsidiaries (a) is duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization, (b) has the requisite power and authority to conduct its business in each jurisdiction as it is presently being conducted, and (c) is duly qualified or licensed to conduct business and is in good standing in each such jurisdiction other than such jurisdictions, where the failure to so qualify could reasonably be expected to result in a Material Adverse Change. As of the Effective Date, no proceeding to dissolve any Loan Party is pending or, to any Loan Party’s knowledge, threatened.
71

6.2Authority Relative to this Agreement. Each Loan Party has the power and authority to execute and deliver this Agreement and the other Loan Documents to which it is a party and to perform its obligations hereunder and thereunder. The Transactions have been duly authorized by all necessary corporate action on the part of each Loan Party that is a party thereto. This Agreement and the other Loan Documents have been duly and validly executed and delivered by each Loan Party thereto and constitute the legal, valid and binding obligations of such Loan Party, enforceable against such Loan Party in accordance with their respective terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights and remedies generally and to the effect of general principles of equity (regardless of whether enforcement is considered in a proceeding at law or in equity).
6.3No Violation. The Transactions will not:
(a)result in a breach of the articles or certificate of incorporation or bylaws of any Loan Party;
(b)result in the imposition of any Lien on any of the Equity Interests of any Loan Party or any of their respective assets;
(c)result in, or constitute an event that, with the passage of time or giving of notice or both, would be, a material breach, violation or default (or give rise to any right of termination, cancellation, prepayment or acceleration) under (i) any material agreement to which any Loan Party is a party, under which any Loan Party has or may acquire rights or obligations or by which its properties or assets may be bound or (ii) any Governmental Approval held by, or relating to the business of the Loan Parties;
(d)require any Loan Party to obtain any consent, waiver, approval, exemption, authorization or other action of, or make any filing with or give any notice to, any Person except such as have been obtained or made and are in full force and effect; or
(e)violate in any material respect any Law applicable to any Loan Party or by which their respective properties or assets may be bound.
6.4Financial Statements; No Material Adverse Change. 
(a)The Borrower has previously furnished to the Administrative Agent the following financial statements (collectively, the “Statements”): (a) the audited consolidated balance sheets of the Borrower and its Subsidiaries and the other Loan Parties as of December 31, 2020, and the related consolidated statements of operations and comprehensive earnings (loss) and of cash flows for such fiscal year, the notes accompanying the Statements (including changes in shareholders’ equity) and the report of KPMG LLP, independent certified public accountants, and (b) the unaudited consolidated balance sheet of the Borrower and its Subsidiaries and the other Loan Parties as of March 31, 2021 and June 30, 2021, and the related statements of operations and comprehensive earnings (loss) and of cash flows for the period then ended. The Statements fairly present in all material respects the financial condition of the Borrower and its Subsidiaries and of the other Loan Parties as of their respective dates and the results of operations and cash flows of the Borrower and its Subsidiaries and of the other Loan Parties for the periods ended on such dates in accordance with GAAP applied on a consistent basis for the periods covered thereby, subject, in 
72

the case of interim financial statements, to absence of footnotes and normal year-end adjustments (the effect of which will not, individually or in the aggregate, have a Material Adverse Change). 
(b)Since December 31, 2020, there has been no change that could reasonably be expected to have a Material Adverse Change.
6.5Litigation. Schedule 6.5 briefly describes each action, suit or proceeding pending before any Governmental Authority or arbitration panel, or to the knowledge of any Loan Party or any of its Subsidiaries threatened, on the Effective Date (a) involving the Transactions, or (b) against any Loan Party or any of its Subsidiaries regarding the business or assets owned or used by any Loan Party or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Change.
6.6Compliance with Law and Agreements. Each Loan Party and its Subsidiaries is in compliance with each Law that is applicable to it or to the conduct or operation of its business or the ownership or use of any of its assets except where the failure to be in compliance, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change (including any laws and regulations of any applicable insurance regulatory authority).  There is no default under such material agreement to which the Borrower or any of its Subsidiaries or any other Loan Parties is a party or otherwise bound which would reasonably be expected to result in a Material Adverse Change.
6.7Properties. Each Loan Party and its Subsidiaries owns (with good and marketable title in the case of real property), or has valid leasehold interests in, all the properties and assets (whether real, personal, or mixed and whether tangible or intangible) material to its business (subject to Liens permitted under Section 9.2), except for irregularities, defects or deficiencies in title that, individually or in the aggregate, do not materially interfere with its ability to conduct its business as currently conducted or to utilize such property for its intended purpose.
6.8Intellectual Property. To the knowledge of each Loan Party and its Subsidiaries, the conduct by the Loan Parties and their Subsidiaries of their respective businesses as presently conducted does not conflict with, infringe on, or otherwise violate any copyright, trade secret, or patent rights of any Person except where such conflict, infringement or violation could not reasonably be expected to have a Material Adverse Change.
6.9Taxes. All tax returns and reports of the Loan Parties and their Subsidiaries required to be filed by any of them have been timely filed and all assessments, fees and other governmental charges upon the Loan Parties and their Subsidiaries and upon their respective properties, assets, income, businesses and franchises that are due and payable have been paid when due and payable except (a) to the extent being actively contested by any such Loan Party or any of its Subsidiaries in good faith and by appropriate proceedings; provided that such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Change.
6.10Environmental Compliance. In each case, except to the extent such condition or event, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Change, (a) none of the Loan Parties or any of their Subsidiaries has failed to comply with 
73

any Environmental Law or to obtain, maintain or comply with any Governmental Approval required under any Environmental Law or has become subject to any Environmental Liability; and (b) none of the Loan Parties or any of their Subsidiaries has received any notice of any claim with respect to any Environmental Liability or know of any basis for any Environmental Liability.
6.11Investment Company Status. None of the Loan Parties or any of their Subsidiaries is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended.
6.12Insurance. Insurance maintained in accordance with Section 8.3 is in full force and effect.
6.13Solvency. Immediately following the making of each Loan and after giving effect to the application of the proceeds of each Loan, (a) the fair market value of the assets of the Loan Parties and their Subsidiaries (taken as a whole) will exceed their debts and liabilities; (b) the present fair saleable value of the property of the Loan Parties and their Subsidiaries (taken as a whole) will be greater than the amount that will be required to pay the probable liability of their debts and other liabilities as they become due in the ordinary course; (c) the Loan Parties and their Subsidiaries (taken as a whole) will be able to pay their debts and liabilities as they become absolute and mature in the ordinary course; and (d) the Loan Parties and their Subsidiaries (taken as a whole) will not have unreasonably small capital with which to conduct their businesses as such businesses are now conducted and are proposed to be conducted following the Effective Date.
6.14ERISA. 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 Change.
6.15Disclosure. The Borrower has disclosed to the Administrative Agent all factual matters of which the senior executive officers of the Borrower have actual knowledge (other than general industry and economic conditions and legal and regulatory requirements applicable to companies and businesses similar to the members generally), that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change. None of the other reports, financial statements, certificates or other written information furnished by or on behalf of the Borrower or any Subsidiary to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not materially 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 (it being understood that any such projections are not to be viewed as facts, are subject to significant uncertainties and contingencies, many of which are beyond the control of the Borrower, that no assurance can be given that any particular projection will be realized, that actual results may differ and that such differences may be material).
6.16EEA Financial Institutions. No Loan Party is an EEA Financial Institution.
74

6.17Margin Stock. No part of any borrowing shall be used at any time, to purchase or carry margin stock (within the meaning of Regulation U) or to extend credit to others for the purpose of purchasing or carrying any margin stock. None of the Loan Parties or any of their Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purposes of purchasing or carrying any such margin stock. No part of the proceeds of any borrowing will be used for any purpose which violates, or which is inconsistent with, any regulations promulgated by the Board.
6.18[Intentionally Omitted].
6.19Sanctions and other Anti-Terrorism Laws.  No Covered Entity: (i) is a Sanctioned Person, nor, to the Borrower’s knowledge, are any employees, officers, directors, brokers or agents acting on a Covered Entity’s behalf in connection with this Agreement a Sanctioned Person; (ii) directly, or, to the Borrower’s knowledge, indirectly through any third party, engages in any transactions or other dealings with any Sanctioned Person or Sanctioned Jurisdiction, or which otherwise are prohibited by any Laws of the United States or of other applicable jurisdictions relating to economic sanctions and other Anti-Terrorism Laws.
6.20Anti-Corruption Laws.  Each Covered Entity has (a) conducted its business in compliance in all material respects with all Anti-Corruption Laws and (b) has instituted and maintains policies and procedures designed to ensure compliance with such Laws.
6.21Certificate of Beneficial Ownership.  The Certificate of Beneficial Ownership, if any, executed and delivered to the Administrative Agent and Lenders on or prior to the date of this Agreement is true and correct as of the date hereof.  Any Certificate of Beneficial Ownership delivered to the Administrative Agent and the Lenders after the date hereof in accordance with this Agreement shall be true and correct as of the date of delivery thereof.
ARTICLE 7
CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT
The obligation of each Lender to make Loans and of the Issuing Lender to issue Letters of Credit hereunder is subject to the performance by each of the Loan Parties of its Obligations to be performed hereunder at or prior to the making of any such Loans or issuance of such Letters of Credit and to the satisfaction of the following further conditions:
7.1Initial Loans and Letters of Credit Made on the Closing Date.
(a)Deliveries.  On the Closing Date, the Administrative Agent shall have received each of the following in form and substance satisfactory to the Administrative Agent:
(i)A certificate of each of the Loan Parties signed by an Authorized Officer, dated the Closing Date stating that (A) no Event of Default or Potential Default exists, (B) no Material Adverse Change has occurred since the date of the last audited financial statements of the Borrower delivered to the Administrative Agent (and the Administrative Agent and Required Lenders shall not have otherwise determined), (C) all material consents, licenses and approvals, if any, required for the delivery and performance by any Loan Party of any Loan Document and the enforceability of any Loan Document 
75

against such Loan Party have been obtained, (D) the Loan Parties taken as a whole after giving effect to the Transactions scheduled to occur on the Closing Date are Solvent, (E) the representations and warranties set forth herein are true and correct, and (F) the conditions stated in this Section 7.1 (assuming the Administrative Agent’s and/or the Lenders’ satisfaction with such conditions precedent that require the Administrative Agent’s and/or the Lenders’ satisfaction) and Section 7.2 [Each Loan or Letter of Credit] have been satisfied, in each case other than those waived by the Administrative Agent and the Lenders in writing;
(ii)A certificate dated the Closing Date and signed by the Secretary or an Assistant Secretary of each of the Loan Parties, certifying as appropriate as to: (A) attaching copies of such resolution or other corporate or organizational action duly taken by each Loan Party to validly authorize, duly execute and deliver this Agreement and the other Loan Documents; (B) the names, authority and capacity of the Authorized Officers authorized to sign the Loan Documents and their true signatures; (C) copies of its organizational documents as in effect on the Closing Date, to the extent applicable, certified as of a sufficiently recent date prior to the Closing Date by the appropriate state official where such documents are filed in a state office; and (D) certificates from the appropriate state officials as to due organization and the continued valid existence, good standing and qualification to engage in its business of each Loan Party in the state of its organization;
(iii)This Agreement and each of the other Loan Documents duly executed by the parties thereto;
(iv)Written opinion(s) of counsel for the Loan Parties, dated the Closing Date and in form and substance reasonably satisfactory to the Administrative Agent;
(v)Evidence, reasonably satisfactory to the Administrative Agent, that all Indebtedness not permitted under Section 9.1 [Indebtedness] shall have been paid in full or will be paid in full after giving effect to the use of proceeds from the Loans made on the Closing Date and that all necessary termination statements, release statements and other releases in connection with all Liens (other than Liens permitted under Section 9.2) have been filed or satisfactory arrangements have been made for such filing (including payoff letters, if applicable, in form and substance reasonably satisfactory to the Administrative Agent);
(vi)The Statements;
(vii)Certificate of Beneficial Ownership; USA PATRIOT Act Diligence.  The Administrative Agent and each Lender shall have received, in form and substance acceptable to the Administrative Agent and each Lender an executed Certificate of Beneficial Ownership and such other documentation and other information requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act.
(viii)Such other documents in connection with such transactions as the Administrative Agent may reasonably request.
76

(b)Payment of Fees.  To the extent invoiced, the Borrower shall have paid all fees and expenses payable on or before the Closing Date as required by this Agreement, the Administrative Agent’s Letter or any other Loan Document.
Without limiting the generality of the provisions of the last paragraph of Section 11.3 [Exculpatory Provisions], for purposes of determining compliance with the conditions specified in this Section 7.1, 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 proposed Closing Date specifying its objection thereto.
7.2Each Loan or Letter of Credit.  At the time of making any Loans or issuing, extending or increasing any Letters of Credit and after giving effect to the proposed extensions of credit: (a) the representations, warranties of the Loan Parties shall then be true and correct in all material respects (unless qualified by materiality or reference to the absence of a Material Adverse Change, in which event shall be true and correct), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date, and except that for purposes of this Section 7.2, the representations and warranties contained in Section 6.4 [Financial Statements] shall be deemed to refer to the most recent statements furnished pursuant to Section 8.10 [Reporting Requirements], (b) no Event of Default or Potential Default shall have occurred and be continuing or would result from such Loan or Letter of Credit or the application of the proceeds thereof, (c) the making of the Loans or issuance, extension or increase of such Letter of Credit shall not violate any Law applicable to any Loan Party or Subsidiary of any Loan Party or any of the Lenders, (d) no Material Adverse Change shall have occurred since the date of the audited financial statements of the Borrower delivered to the Administrative Agent on or prior the Closing Date, and (e) the Borrower shall have delivered to the Administrative Agent a duly executed and completed Loan Request or to the Issuing Lender an application for a Letter of Credit, as the case may be.  Each Loan Request and Letter of Credit application shall be deemed to be a representation that the conditions specified in Section 7.1 [Initial Loans and Letters of Credit] and this Section 7.2 have been satisfied on or prior to the date thereof.
ARTICLE 8
AFFIRMATIVE COVENANTS
Each Loan Party hereby covenants and agrees that until the Facility Termination Date, the Loan Party shall comply at all times with the following covenants:
8.1Existence; Conduct of Business. Each Loan Party shall and cause all of its Subsidiaries to do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business except to the extent failure to maintain or preserve could not reasonably be expected to have a Material Adverse Change; provided that the foregoing shall not prohibit any merger, consolidation, Division, liquidation or dissolution permitted under Section 9.3
77

8.2Payment of Obligations.  Each Loan Party shall and shall cause all of its Subsidiaries to pay its obligations, including liabilities for Taxes, before the same shall become delinquent or in default, except where (a) (i) the validity or amount thereof is being contested in good faith by appropriate proceedings and (ii) such Loan Party or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) the failure to make payment could not reasonably be expected to result in a Material Adverse Change.
8.3Maintenance of Properties; Insurance. Each Loan Party shall and shall cause all of its Subsidiaries to keep and maintain all of its material properties necessary for the conduct of its business in good working order and condition, ordinary wear and tear excepted, and  maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar businesses operating in the same or similar locations.
8.4Books and Records; Inspection Rights. Each Loan Party shall and shall cause each of its Subsidiaries to keep proper books of record and account in which true and correct entries are made of all material dealings and transactions in relation to its business and activities. Each Loan Party shall and shall cause each of its Subsidiaries to permit any representatives of the Administrative Agent or any Lender, upon reasonable prior written notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested; provided that, so long as no Event of Default has occurred and is continuing, only two such visits shall be permitted during any twelve month period.
8.5Compliance with Laws. Each Loan Party shall and shall cause each of its Subsidiaries to comply with all Laws (including Environmental Laws and all Laws of applicable insurance regulatory authorities) applicable to it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Change.
8.6Use of Proceeds and Letters of Credit. The proceeds of the Loans will be used only to fund working capital needs and general corporate purposes of the Borrower and its Subsidiaries. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations T, U and X. Letters of Credit will be issued only to support the working capital needs and general corporate obligations of the Borrower and its Subsidiaries relating to their respective lines of business as currently conducted. The Borrower will not request any borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any borrowing or Letter of Credit (A) 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, (B) 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 (C) in any manner that would result in the violation of any Sanctions applicable to any party hereto.
8.7Maintain Business. Each Loan Party shall continue to engage primarily in the business or businesses being conducted on the Effective Date, businesses and other activities that 
78

are reasonably similar, ancillary, incidental or related thereto, and other reasonable expansions, developments and extensions of such business.
8.8Accuracy of Information. The Borrower will ensure that any factual written information, including financial statements or other documents (it being understood that any such projections are not to be viewed as facts, are subject to significant uncertainties and contingencies, many of which are beyond the control of the Borrower, that no assurance can be given that any particular projection will be realized, that actual results may differ and that such differences may be material), furnished to the Administrative Agent or the Lenders in connection with this Agreement or any amendment or modification hereof or waiver hereunder, when furnished, contains no material misstatement of fact or omits to state any material fact (in each case known to the Borrower) necessary to make the statements therein, in the light of the circumstances under which they were made, not materially misleading, and the furnishing of such information shall be deemed to be a representation and warranty by the Borrower on the date thereof as to the matters specified in this Section.
8.9Sanctions and other Anti-Terrorism Laws; Anti-Corruption Laws.
(a)The Loan Parties covenant and agree that they shall immediately notify the Administrative Agent and each of the Lenders in writing upon the occurrence of a Reportable Compliance Event; and
(b)Each Covered Entity to conduct their business in compliance with all Anti-Corruption Laws and maintain policies and procedures designed to ensure compliance with such Laws.
8.10Reporting Requirements.  The Loan Parties will furnish or cause to be furnished to the Administrative Agent and each of the Lenders:
(a)within 90 days after the end of each fiscal year of the Borrower, the audited consolidated balance sheets and related statements of operations and comprehensive earnings (loss) and of cash flows as of the end of and for such year of the Borrower, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;
(b)within 45 days after the end of the first three fiscal quarters of each fiscal year of the Borrower, the condensed consolidated balance sheets and related statements of operations and comprehensive earnings (loss) and of cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year for the Borrower setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheets, as of the end of) the previous fiscal year, all in form and substance reasonably satisfactory to the Administrative Agent and certified by a Financial Officer as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its 
79

Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;
(c)concurrently with any delivery of financial statements under clause (a) or (b) above, (i) a certificate of a Financial Officer substantially in the form attached hereto as Exhibit B (A) certifying as to whether an Event of Default or Potential Default has occurred and, if an Event of Default or Potential Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (B) setting forth reasonably detailed calculations demonstrating compliance with Section 9.10 and 9.11 and (C) stating whether any change in GAAP or in the application thereof has occurred since the date of the last audited financial statements delivered pursuant to Section 8.10(a) and, if any such change has occurred, specifying the effect such change would have on the financial statements accompanying such certificate, and (ii) the unaudited consolidating balance sheet and related statements of earnings as of the end of and for the period for which the corresponding financial statements are delivered under clause (a) or (b) above;
(d)promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by the Borrower or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of the functions of said Commission, or with national securities agencies (other than immaterial correspondence filed in the ordinary course of business, and comment letters received from the Securities and Exchange Commission or responses thereto), or distributed by the Borrower or any subsidiary thereof to its shareholders generally, as the case may be; provided, that the Borrower shall be deemed to have delivered the foregoing to the Administrative Agent and the Lenders if such information has been filed with the Securities and Exchange Commission and is available on the Edgar site at www.sec.gov or any successor government site that is freely and readily available to the Administrative Agent and the Lenders without charge, or has been made available on the Borrower’s website www.stewart.com, and the delivery date therefore shall be deemed to be the first day on which such information is available to the Administrative Agent and the Lenders on one of such website pages, provided further that the Borrower will promptly notify the Administrative Agent and the Lenders of each posting to such sites upon the occurrence thereof;
(e)promptly following any request therefor, such other information regarding the operations, business affairs and financial condition of the Borrower or any of its Subsidiaries, or compliance with the terms of this Agreement, as the Administrative Agent may reasonably request;
(f)promptly upon receipt thereof, copies of all management letters (if any) from its independent public accountants to the Borrower or any of its Subsidiaries, their respective Boards of Directors or any committee thereof; and
(g)within 90 days after the end of each fiscal year, a report in form and substance reasonably satisfactory to the Administrative Agent describing all material insurance coverage maintained by the Loan Parties and their Subsidiaries as of the date of such report.
80

(h)If the Borrower gives notice to the Administrative Agent that materials have been filed with the Securities and Exchange Commission, then and thereupon the Borrower shall be deemed to have delivered such materials to the Administrative Agent and the Lenders.
8.11Notices of Material Events. The Borrower will furnish to Administrative Agent and each Lender prompt and, in any event, within five Business Days after acquiring knowledge thereof, written notice of the following:
(a)the occurrence of any Event of Default or Potential Default and the action that the Loan Parties are taking or propose to take with respect thereto;
(b)the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting any Loan Party or any Subsidiary or Affiliate thereof that could reasonably be expected to result in a Material Adverse Change or that in any manner questions the validity of the Loan Documents;
(c)the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of any Loan Party in an aggregate amount exceeding $15,000,000;
(d)the receipt by any the Borrower, any Loan Party or any of their respective Subsidiaries of any notice or direction from any Governmental Authority of the expiration without renewal, revocation or suspension of, or the institution of any proceedings to revoke or suspend, any license now or hereafter held by such Person which is required to conduct insurance business in compliance with all applicable Laws and regulations, other than such expiration, revocation or suspension which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Change, (ii) the receipt of any notice from any Governmental Authority of the institution of any disciplinary proceedings against or in respect of any such Person, or the issuance of any order, the taking of any action or any request for an extraordinary audit for cause by any Governmental Authority which could reasonably be expected to have a Material Adverse Change or (iii) any judicial or administrative order limiting or controlling the insurance business of any insurance Subsidiary (and not the insurance industry generally) which has been issued or adopted and which could reasonably be expected to have a Material Adverse Change; and
(e)any other development that results in, or could reasonably be expected to result in, a Material Adverse Change.
Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
8.12Certificate of Beneficial Ownership and Other Additional Information.  Promptly provide to the Administrative Agent: (i) if requested by the Administrative Agent, confirmation of the accuracy of the information set forth in the most recent Certificate of Beneficial Ownership provided to the Administrative Agent and Lenders; (ii) a new Certificate of Beneficial Ownership after any of the individual(s) required to be identified as a Beneficial Owner have changed; and (iii) such other information and documentation as may reasonably be requested by the 
81

Administrative Agent or any Lender from time to time for purposes of compliance by the Administrative Agent or such Lender with applicable Laws (including without limitation the USA PATRIOT Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or procedure implemented by the Administrative Agent or such Lender to comply therewith.
ARTICLE 9
NEGATIVE COVENANTS
Each Loan Party hereby covenants and agrees that until the Facility Termination Date, the Loan Party will not, and will not permit any of its Subsidiaries to:
1.1Indebtedness. ((a)  None of the Loan Parties will create, incur, assume or permit to exist any Indebtedness (including Guaranties), other than:
(i)Indebtedness created hereunder or under any of the Loan Documents, including renewals, extensions and refinancings hereof or thereof;
(ii)Indebtedness existing on the Effective Date and set forth in Schedule 9.1 and extensions, renewals and replacements of any such Indebtedness that do not increase the outstanding principal amount thereof;
(iii)purchase money Indebtedness, capital lease obligations and other Indebtedness incurred to finance the acquisition, construction or improvement of any assets by a Loan Party or any of its Subsidiaries in an aggregate principal amount not to exceed $25,000,000 at any time outstanding;
(iv)Indebtedness incurred in an acquisition or disposition constituting indemnification obligations or obligations in respect of purchase price or other similar adjustments;
(v)Indebtedness incurred in the ordinary course of business in connection with “1031 exchange” transactions under Section 1031 of the Code (or regulations promulgated thereunder, including Revenue Procedure 2000-37) that is limited in recourse to the properties (real or personal) which are the subject of such “1031 exchange” transactions or the proceeds thereof;
(vi)Indebtedness and other obligations in respect of Swaps entered into in the ordinary course of business and not for speculative purposes, including in connection with hedge transactions, warrant transactions and capped call transactions in respect of convertible Indebtedness;
(vii)Indebtedness owed by one Loan Party to another Loan Party;
(viii)Indebtedness under Investment Securities Lines; and
82

(ix)other Indebtedness to the extent the Borrower is in pro forma compliance with the covenant set forth in Sections 9.10 and 9.11 both before and after giving effect to the incurrence of such Indebtedness.
(b)The Borrower shall not permit its Subsidiaries to create, incur, assume or permit to exist any Indebtedness (excluding (x) Indebtedness in respect of letters of credit (or similar instruments) and guarantees issued in connection with settlement or administration of claims made against any of its Subsidiaries under insurance policies of the type usually carried by corporations engaged in businesses or activities that are the same as or similar to those of the Borrower and its Subsidiaries and (y) Indebtedness owed to a Loan Party) other than Indebtedness in an aggregate principal amount outstanding at any time not to exceed the greater of (x) $175,000,000 and (y) an amount equal to 15% of shareholders’ equity.
1.2Liens. None of the Loan Parties will create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except:
(a)Permitted Encumbrances;
(b)Liens to secure Swaps with any Lender or any Affiliate thereof;
(c)any Lien on any property or asset of any Loan Party existing on the Effective Date and set forth in Schedule 9.2; provided that (i) such Lien shall not apply to any other property or asset of such Loan Party and (ii) such Lien shall secure only those obligations which it secures on the Effective Date and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof;
(d)Liens on assets acquired, constructed or improved by any Loan Party; provided that (i) such Liens secure Indebtedness permitted by Section 9.1(a)(iii), (ii) such Liens and the Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such assets and (iv) such Liens shall not apply to any other property or assets of such Loan Party;
(e)Liens on Indebtedness permitted by Section 9.1(a)(viii); 
(f)Liens securing cash management practices; provided that no such Lien shall extend to or cover any property other than the securities and/or other investments invested in as part of such practices;
(g)Liens (i) of a collection bank arising under Section 4-210 of the UCC on items in the course of collection, (ii) attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course of business and (iii) in favor of a banking institution arising as a matter of law encumbering deposits (including the right of setoff) and which are within the general parameters customary in the banking industry;
(h)Liens (i) on advances of cash or Cash Equivalents in favor of the seller of any property to be acquired as part of an Acquisition to be applied against the purchase price for 
83

such Acquisition, or (ii) consisting of an agreement to dispose of any property in an Asset Sale permitted hereunder;
(i)Liens arising from precautionary UCC financing statement filings (or similar filings under applicable law) regarding leases entered into in the ordinary course of business (and Liens consisting of the interests or title of the respective lessors thereunder);
(j)Liens arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by the Borrower or any Subsidiary in the ordinary course of business not prohibited by this Agreement;
(k)Liens that are contractual rights of setoff (i) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness, (ii) relating to pooled deposit or sweep accounts to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of business, (iii) relating to purchase orders and other similar agreements entered into in the ordinary course of business, and (iv) of a customary nature which are incurred in connection with Indebtedness permitted under Section 9.1;
(l)Liens in respect of Indebtedness permitted by Section 9.1(a)(ix) incurred to finance Permitted Material Acquisitions or Liens existing on assets acquired as part of a Permitted Material Acquisition, provided that (x) such Liens were not created in anticipation of such Permitted Material Acquisition and (y) the aggregate fair market value of the assets secured by such Liens shall not exceed $100,000,000 at any time outstanding; and
(m)Liens securing Indebtedness or other obligations in an aggregate principal amount not to exceed $50,000,000 at any time outstanding, provided that, at the time of the incurrence of any such Liens, no Potential Default or Event of Default has occurred and is continuing or would result therefrom.
9.3Fundamental Changes. None of the Loan Parties or any of their Subsidiaries will merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, consummate a Division as the Dividing Person, liquidate or dissolve, except that if at the time thereof and immediately after giving effect thereto no Potential Default or Event of Default shall have occurred and be continuing:
(a)if such transaction involves a Subsidiary of the Borrower that is a Guarantor, such Guarantor will survive (unless such Guarantor is merged into the Borrower); and
(b)any Subsidiary of the Borrower that is not a Guarantor may merge into or consolidate with any other Person so long as such Subsidiary is the surviving entity of such merger or consolidation.
9.4Asset Sales. None of the Loan Parties will make any Asset Sale except:
(a)any Loan Party may sell, transfer, lease or otherwise dispose of its assets to another Loan Party;
84

(b)the Borrower or any Loan Party may sell, lease, convey or otherwise dispose of assets (i) if such sale, lease, conveyance or other disposition is (A) a sale, exchange or transfer of Permitted Investments in the ordinary course of its business at fair market value, (B) of obsolete, worn-out or surplus property and property no longer used or useful in the conduct of the business of the Borrower and its Subsidiaries, (C) a sale of property to the extent such property is exchanged for credit against the purchase price of similar replacement property or the net disposition proceeds thereof are applied to the purchase of such replacement property within 270 days of such sale, (D) an ordinary course disposition of inventory, (E) an ordinary course disposition of real estate and related properties in connection with relocation activities for employees of the Borrower and its Subsidiaries, (F) a disposition of tangible property as part of alike kind exchange under Section 1031 of the Code in the ordinary course of business, (G) a voluntary termination of a Swap Agreement, (H) a lease, sublease, license or sublicense of property in the ordinary course of business and which do not materially interfere with the business of the Borrower and its Subsidiaries, (I) a disposition in the ordinary course of business of accounts receivable in connection with the collection thereof, (J) a disposition of real estate and related properties as part of the resolution or settlement of claims under an insurance contract in the ordinary course of business, (K) a Lien permitted under Section 9.2, or (L) a Restricted Payment permitted by Section 9.7; and (ii) not otherwise permitted to be sold, leased, conveyed or disposed of in clause (i) immediately preceding, provided that (A) no Potential Default or Event of Default would occur as a result thereof after giving effect thereto, and (B) the aggregate value of all assets disposed of pursuant to this clause (ii)  from and after the Effective Date shall not exceed $100,000,000; and
(c)dispositions required by regulatory order.
9.5Investments. None of the Loan Parties will make an Investment in any other Person (including pursuant to any merger with, or as a Division Successor pursuant to the Division of, any Person that was not a wholly owned Subsidiary prior to such merger or Division), except:
(a)Permitted Investments;
(b)guarantees constituting Indebtedness permitted by Section 9.1;
(c)Investments listed on Schedule 9.5;
(d)Investments by a Loan Party in any of its Subsidiaries; provided that Investments by the Loan Parties in any of their Subsidiaries in which the relevant Loan Party owns less than 80% of the Equity Interests of such Subsidiary shall not exceed $30,000,000 in the aggregate in any calendar year (excluding Investments permitted by clause (c) above);
(e)Investments not otherwise permitted under this Section 9.5; provided that (i) no Potential Default or Event of Default shall have occurred and be continuing at the time such Investment is made or is created as a result of such Investment, (ii) all such Investments shall be for fair market value and (iii) the aggregate amount of all Investments made by the Loan Parties  pursuant to this clause (e) during the term of this Agreement shall not exceed $250,000,000; and
(f)the purchase or other acquisition of all or substantially all of the property and assets or businesses of any Person or of significant assets constituting a business unit, a line of 
85

business or division of such Person, or Equity Interests in a Person that, upon the consummation thereof, will be a Subsidiary of the Borrower (including as a result of a merger or consolidation); provided that, with respect to each purchase or other acquisition made pursuant to this Section 9.5(f) (each, a “Permitted Material Acquisition”):
(i)the acquired property, assets, business or Person is in a line of business conducted by the Borrower and its Subsidiaries on the date hereof or any business substantially related, compatible, complimentary or incidental thereto;
(ii)the Borrower shall have delivered to the Administrative Agent not less than 10 days nor more than 90 days prior to the date of any such acquisition, notice of such acquisition, and, for any acquisition with a total aggregate purchase price (including cash or equity paid and debt assumed), of $50,000,000 or more, Borrower will, in addition, provide pro forma projected financial information regarding same, copies of all material documents relating thereto (including the acquisition agreement and the financial statements delivered pursuant thereto and any other material related document) and historical financial information (including income statements, balance sheets and cash flows) covering at least three complete fiscal years of the acquisition target, if available, prior to the effective date of the acquisition or the entire credit history of the acquisition target, whichever period is shorter, in each case in form and substance reasonably satisfactory to the Administrative Agent;
(iii) (A) (I) immediately before and immediately after giving pro forma effect to any such purchase or other acquisition, no Potential Default or Event of Default shall have occurred and be continuing and (II) immediately after giving effect to such purchase or other acquisition, Borrower and its Subsidiaries shall be in pro forma compliance with all of the covenants set forth in Sections 9.10 and 9.11, and (B) immediately prior to the consummation of such purchase or other acquisition, the Borrower shall have delivered to the Administrative Agent and the Lenders a certificate with respect to the matters set forth in clause (A) above; and
(iv)the board of directors or other Persons exercising similar functions of the seller of the assets or issuer of the Equity Interests being acquired shall not have disapproved such transaction.
9.6Swap Agreements. None of the Loan Parties will enter into any Swaps, except (a) Swaps entered into to hedge or mitigate risks to which any Loan Party has actual exposure, and (b) Swaps entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of any Loan Party.
9.7Restricted Payments. None of the Loan Parties will declare or make, or agree to pay or make, any Restricted Payment, except (a) Restricted Payments to a Loan Party; (b) Restricted Payments by the Borrower to any Person other than a Loan Party so long as (i) the Borrower is in pro forma compliance with the covenants set forth in Sections 9.10 and 9.11 before and after giving effect to such Restricted Payment and (ii) no Potential Default or Event of Default exists at 
86

the time such Restricted Payment is made or is created as a result of such Restricted Payment; and (c) any Loan Party may make Restricted Payments to Stewart Title Guaranty Company.
9.8Transactions with Affiliates. None of the Loan Parties or any of their Subsidiaries will 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) at prices and on terms and conditions (taken as a whole) not less favorable to such Loan Party or such Subsidiary than could reasonably be expected to be obtained on an arm’s-length basis from unrelated third parties, (b) any Restricted Payment permitted by Section 9.7, (c) any transaction between or among Loan Parties and (d) Investments permitted by Section 9.5.
9.9Restrictive Agreements. None of the Loan Parties will, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon the ability of any Loan Party or any of its Subsidiaries to create, incur or permit to exist any Lien upon any of its property or assets; provided that the foregoing shall not apply to (a) restrictions and conditions imposed by Law or by this Agreement, (b) restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to property or assets securing such Indebtedness, (c) customary provisions in leases, licenses, joint venture agreements and other contracts restricting the assignment thereof, (d) customary restrictions and conditions contained in any agreements relating to the sale of assets pending such sale; provided that such restrictions and conditions apply only to the assets to be sold and such sale is permitted hereunder, (e) any instrument governing Indebtedness assumed in connection with any Acquisition, which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person or the properties or assets of the Person so acquired, (f) any order from or agreement with an applicable insurance regulatory authority, and (g) customary restrictions in agreements evidencing or governing Indebtedness permitted under Section 9.1, which restrictions are not materially more restrictive than the restrictions set forth in this Agreement, unless the Administrative Agent has consented thereto.
9.10Debt to Total Capitalization Ratio.  The Borrower will not permit the Debt to Total Capitalization Ratio to be greater than 0.35:1.00 at any time.
9.11Minimum Net Worth.  Borrower shall not permit, at any time the Consolidated Net Worth to be an amount less than the sum of (i) an amount equal to $790,983,900 plus (ii) 50% of Consolidated Net Income for each fiscal quarter (beginning with the first full fiscal quarter ending after the Closing Date) for which Consolidated Net Income is a positive amount plus (iii) 50% of the net cash proceeds from equity issuances of the Borrower after the Closing Date.
9.12Sanctions and other Anti-Terrorism Laws.  Each Loan Party hereby covenants and agrees that until the Facility Termination Date, the Loan Party will not, and will not permit any its Subsidiaries to: (a) become a Sanctioned Person, (b) directly, or indirectly through a third party, use any proceeds of the Facilities to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Person or Sanctioned Jurisdiction, (c) repay the Facilities with funds derived from any unlawful activity; (d) engage in any transactions or other dealings with any Sanctioned Person or Sanctioned Jurisdiction prohibited by any Laws of the United States or other applicable jurisdictions relating to economic sanctions and any Anti-
87

Terrorism Laws; or (e) cause any Lender or Administrative Agent to violate any sanctions administered by OFAC.
9.13Anti-Corruption Laws.  Each Loan Party hereby covenants and agrees that until the Facility Termination Date, the Loan Party will not, and will not permit any its Subsidiaries to directly or indirectly, use the Loans or any proceeds thereof for any purpose which would breach any Anti-Corruption Laws in any jurisdiction in which any Covered Entity conducts business.
ARTICLE 10
DEFAULT
10.1Events of Default.  An Event of Default means the occurrence or existence of any one or more of the following events or conditions (whatever the reason therefor and whether voluntary, involuntary or effected by operation of Law):
(a)the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any Reimbursement Obligation when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;
(b)the Borrower shall fail to pay any interest on any Loan or any fee or other amount (other than an amount referred to in clause (a) of this Section 10.1) payable under this Agreement or the other Loan Documents, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days;
(c)any representation or warranty made or deemed made by or on behalf of the Borrower or the Guarantors in or in connection with this Agreement, any Loan Document or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any amendment or modification hereof or waiver hereunder, shall prove to have been incorrect when made or deemed made in any material respect (provided such materiality qualifier shall not apply in instances where a specific representation contains a materiality or Material Adverse Change qualifier);
(d)any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Sections 8.1 (as to a Loan Party’s existence), 8.4 (as to inspection rights and which continues for one Business Day), 8.9, 8.10, 8.11 and Section 9;
(e)any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in clauses (a), (b) or (d) of this Section 10.1) or in any other Loan Document, and such failure shall continue unremedied for a period of thirty (30) days following the earlier of (i) the date on which such failure first became known to any Financial Officer of such Loan Party or (ii) notice to the Borrower of such failure from the Administrative Agent or the Required Lenders;
(f)the Borrower or any Guarantor shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and 
88

as the same shall become due and payable (giving effect to any grace period provided with respect thereto);
(g)any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;
(h)an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Loan Party or any of its Subsidiaries or their debts, or of a substantial part of their assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or any of its Subsidiaries or for a substantial part of any of their assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;
(i)any Loan Party or any of its Subsidiaries shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Section 10.1, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any of its Subsidiaries or for a substantial part of any of their assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;
(j)any Loan Party or any of its Subsidiaries shall become unable, admit in writing its inability, or fail generally to pay its debts as they become due;
(k)one or more judgments for the payment of money that is not covered by insurance in an aggregate amount in excess of $30,000,000 (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) shall be rendered against any Loan Party or any of its Subsidiaries or any combination thereof and the same shall remain undischarged or unstayed for a period of 45 consecutive days during which execution shall not be effectively stayed, or any attachment or levy shall be entered upon any assets of such Loan Party or such Subsidiary to enforce any such judgment;
(l)an ERISA Event shall have occurred that, in the reasonable opinion of the Administrative Agent, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Change;
(m)a proceeding shall be commenced by any Loan Party or any of its Subsidiaries seeking to establish the invalidity or unenforceability of any Loan Document 
89

(exclusive of questions of interpretation thereof), or any Loan Party shall repudiate or deny that it has any liability or obligation for the payment of principal or interest or other obligations purported to be created under any Loan Document;
(n)a Change in Control occurs; or
(o)any license of a Loan Party or any of its insurance Subsidiaries (i) shall be revoked by the applicable insurance regulatory authority, (ii) shall be suspended by the applicable insurance regulatory authority for a period in excess of thirty days or (iii) shall not be reissued or renewed by the applicable insurance regulatory authority upon the expiration thereof following application for such reissuance or renewal of such Person, or (b) any applicable insurance regulatory authority shall issue any order of conservation or seizure, however denominated, relating to a Loan Party or any insurance Subsidiary or shall take any other action to exercise control (i) over a Loan Party or any insurance Subsidiary or (ii) over any assets of a Loan Party or any insurance Subsidiary, in each case under this clause (o), except to the extent that the same could not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Change.
10.2Consequences of Event of Default.
(a)Generally.  If any Event of Default specified under Section 10.1 [Events of Default] shall occur and be continuing, the Lenders and the Administrative Agent shall be under no further obligation to make Loans and the Issuing Lender shall be under no obligation to issue Letters of Credit and the Administrative Agent may, and upon the request of the Required Lenders shall, take any or all of the following actions:
(i)declare the commitment of each Lender to make Loans and any obligation of the Issuing Lender to issue, amend or extend Letters of Credit to be terminated, whereupon such commitments and obligation shall be terminated;
(ii)declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower;
(iii)require the Borrower to, and the Borrower shall thereupon, deposit in a non-interest-bearing account with the Administrative Agent, as Cash Collateral for its Obligations under the Loan Documents, an amount equal to the maximum amount currently or at any time thereafter available to be drawn on all outstanding Letters of Credit, and the Borrower hereby pledges to the Administrative Agent and the Lenders, and grants to the Administrative Agent and the Lenders a security interest in, all such cash as security for such Obligations; and
(iv)exercise on behalf of itself, the Lenders and the Issuing Lender all rights and remedies available to it, the Lenders and the Issuing Lender under the Loan Documents;
90

provided that upon the occurrence of an actual or deemed entry of an order for relief with respect to any Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of the Issuing Lender to issue, amend or extend any Letter of Credit shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrower to provide cash collateral as specified in clause (iii) above shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.
(b)Set-off.  If an Event of Default shall have occurred and be continuing, each Lender, the Issuing Lender, and each of their respective Affiliates and any participant of such Lender or Affiliate which has agreed in writing to be bound by the provisions of Section 5.5 [Sharing of Payments by Lenders], after obtaining the prior written consent of the Administrative Agent,  is hereby authorized at any time and from time to time, to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the Issuing Lender or any such Affiliate or participant to or for the credit or the account of any Loan Party against any and all of the Obligations of such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, the Issuing Lender, Affiliate or participant, irrespective of whether or not such Lender, Issuing Lender, Affiliate or participant shall have made any demand under this Agreement or any other Loan Document and although such Obligations of the Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender or the Issuing Lender different from the branch or office holding such deposit or obligated on such Indebtedness, provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.9 [Defaulting Lenders] and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Lender, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, the Issuing Lender and their respective Affiliates and participants under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the Issuing Lender or their respective Affiliates and participants may have; provided, further, that, notwithstanding any provision of any Loan Document to the contrary, in no event shall any such Person have any right of setoff against any escrow accounts or any escrowed funds or any other funds held on deposit for any third party by a Loan Party in which such Loan Party does not hold equitable title.  Each Lender and the Issuing Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application; and
(c)Enforcement of Rights and Remedies.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at Law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in 
91

accordance with this Section 10.2 for the benefit of all the Lenders and the Issuing Lender; provided that the foregoing shall not prohibit (i) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (ii) the Issuing Lender or the Swingline Loan Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as the Issuing Lender or Swingline Loan Lender, as the case may be) hereunder and under the other Loan Documents, (iii) any Lender from exercising setoff rights in accordance with Section 10.2(b) [Set-Off] (subject to the terms of Section 5.5 [Sharing of Payments by Lenders]), or (iv) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Insolvency Proceeding; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (A) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to this Section 10.2(c), and (B) in addition to the matters specified in clauses (ii), (iii) and (iv) of the preceding proviso and subject to Section 5.5 [Sharing of Payments by Lenders]), any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.
10.3Application of Proceeds.  From and after the date on which the Administrative Agent has taken any action pursuant to Section 10.2 [Enforcement of Rights and Remedies] (or after the Loans have automatically become immediately due and payable and the Letter of Credit Obligations have automatically been required to be Cash Collateralized as specified in the proviso to Section 10.2(a)) and until the Facility Termination Date, any and all proceeds received on account of the Obligations shall (subject to Sections 2.9 [Defaulting Lenders] and 10.2(a)(iii) [Generally]) be applied as follows:
(a)First, to payment of that portion of the Obligations constituting fees (other than Letter of Credit Fees), indemnities, expenses and other amounts, including attorney fees, payable to the Administrative Agent in its capacity as such, the Issuing Lender in its capacity as such and the Swingline Loan Lender in its capacity as such, ratably among the Administrative Agent, the Issuing Lender and Swingline Loan Lender in proportion to the respective amounts described in this clause First payable to them;
(b)Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders under the Loan Documents, including attorney fees, ratably among the Lenders in proportion to the respective amounts described in this clause Second payable to them;
(c)Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans and Reimbursement Obligations, ratably among the Lenders and the Issuing Lender in proportion to the respective amounts described in this clause Third payable to them;
(d)Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and Reimbursement Obligations, ratably among the Lenders and the Issuing Lender, in proportion to the respective amounts described in this clause Fourth held by them;
92

(e)Fifth, to the Administrative Agent for the account of the Issuing Lender, to Cash Collateralize any undrawn amounts under outstanding Letters of Credit (to the extent not otherwise cash collateralized pursuant to this Agreement); and
(f)Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law.
Amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as cash collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order specified above.
ARTICLE 11
THE ADMINISTRATIVE AGENT
11.1Appointment and Authority.  Each of the Lenders and the Issuing Lender hereby irrevocably appoints PNC Bank, National Association to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Lender, and neither the Borrower nor any other Loan Party shall have rights as a third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between contracting parties.
11.2Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for, and generally engage in any kind of business with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
11.3Exculpatory Provisions.
(a)The Administrative Agent shall not have any duties or obligations except those expressly specified herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent:
93

(i)shall not be subject to any fiduciary or other implied duties, regardless of whether a Potential Default or Event of Default has occurred and is continuing;
(ii)shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and
(iii)shall not, except as expressly specified herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.
(b)The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 12.1 [Modifications; Amendments or Waivers] and 10.2 [Consequences of Event of Default]), or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Potential Default or Event of Default unless and until notice describing such Potential Default or Event of Default is given to the Administrative Agent in writing by the Borrower, a Lender or an Issuing Lender.
(c)The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions specified herein or therein or the occurrence of any Potential Default or Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition specified in Article 7 [Conditions of Lending and Issuance of Letters of Credit] or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.
11.4Reliance 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, 
94

Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such Lender or the Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
11.5Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more subagents appointed by the Administrative Agent.  The Administrative Agent and any such subagent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such subagent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Facilities as well as activities as Administrative Agent.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.
11.6Resignation of Administrative Agent.
(a)The Administrative Agent may at any time give notice of its resignation to the Lenders, the Issuing Lender and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower (so long as no Potential Default or Event of Default has occurred and is continuing), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders and the Issuing Lender, appoint a successor Administrative Agent meeting the qualifications specified above; provided that in no event shall any such successor Administrative Agent be a Defaulting Lender.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
(b)If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable Law, by notice in writing to the Borrower and such Person remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor. If no such 
95

successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.
(c)With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and Issuing Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 12.3 [Expense; Indemnity; Damage Waiver] shall continue in effect for the benefit of such retiring or removed Administrative Agent, its subagents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.
11.7Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and the Issuing Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and Issuing Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
11.8No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the bookrunners or arrangers 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 Lender hereunder.
11.9Administrative Agent’s Fee.  The Borrower shall pay to the Administrative Agent a nonrefundable fee (the “Administrative Agent’s Fee”) under the terms of a letter (the “Administrative Agent’s Letter”) between the Borrower and Administrative Agent, as amended from time to time.
96

11.10Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
(a)to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Lender and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Lender and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the Issuing Lender and the Administrative Agent under Sections 2.8(b) [Letter of Credit Fees] and 12.3 [Expenses; Indemnity; Damage Waiver]) allowed in such judicial proceeding; and
(b)to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Lender, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Section 12.3 [Expenses; Indemnity; Damage Waiver].
11.11No Reliance on Administrative Agent’s Customer Identification Program.  Each Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s, participant’s or assignee’s customer identification program, or other obligations required or imposed under or pursuant to the USA PATRIOT Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other Anti-Terrorism Law or any Anti-Corruption Law, including any programs involving any of the following items relating to or in connection with any of the Loan Parties, their Affiliates or their agents, the Loan Documents or the transactions hereunder or contemplated hereby: (i) any identity verification procedures, (ii) any recordkeeping, (iii) comparisons with government lists, (iv) customer notices or (v) other procedures required under the CIP Regulations or such other Laws.
11.12ERISA Matters.  
(a)Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party 
97

hereto to the date such Person ceases being a Lender party hereto, for the benefit of, Administrative Agent and the Lead Arranger and their respective Affiliates, and for the benefit of Borrower or any other Loan Party, that at least one of the following is and will be true:
(i)such Lender is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Plans in connection with the Loans or the Commitments,
(ii)the transaction exemption set forth in one or more Prohibited Transaction Exemptions (“PTEs”), such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,
(iii)(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or
(iv)such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
(b)In addition, unless sub-clause (i) in the immediately preceding Section 11.12(a) is true with respect to a Lender or such Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding Section 11.12(a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and the Lead Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of Borrower, that:
(i)none of the Administrative Agent or the Lead Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including in connection with the reservation or exercise of any rights by Administrative Agent under this Agreement, any Loan Document or any other documents related to hereto or thereto),
98

(ii)the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement is capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies (including in respect of the Loans),
(iii)the Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement is a fiduciary under ERISA or the Code, or both, with respect to the Loans, the Commitments and this Agreement and is responsible for exercising independent judgment in evaluating the transactions hereunder, and
(iv)no fee or other compensation is being paid directly to the Administrative Agent or Lead Arrangers or any their respective Affiliates for investment advice (as opposed to other services) in connection with the Loans, the Commitments or this Agreement.
The Administrative Agent and the Lead Arranger hereby inform the Lenders that each such Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Commitments and this Agreement, (ii) may recognize a gain if it extended the Loans, or the Commitments for an amount less than the amount being paid for an interest in the Loans or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.
11.13Erroneous Payments.
(a)If the Administrative Agent notifies a Lender, Issuing Lender, or any Person who has received funds on behalf of a Lender or Issuing Lender, such Lender or Issuing Lender (any such Lender, Issuing Lender, or other recipient, a “Payment Recipient”) that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Lender or other Payment Recipient on its behalf)  (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender or Issuing Lender shall (or, with 
99

respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds 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 from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.
(b)Without limiting immediately preceding clause (a), each Lender or Issuing Lender, or any Person who has received funds on behalf of a Lender or Issuing Lender such Lender or Issuing Lender, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender or Issuing Lender, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case:
(i)(A) in the case of immediately preceding clauses (x) or (y), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and
(ii)such Lender or Issuing Lender shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 11.13(b).
(c)Each Lender or Issuing Lender hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender or Issuing Lender under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender or Issuing Lender from any source, against any amount due to the Administrative Agent under immediately preceding clause (a) or under the indemnification provisions of this Agreement.
(d)In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding clause (a), from any Lender or Issuing Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf)  (such unrecovered amount, an “Erroneous Payment Return Deficiency”), upon the Administrative Agent’s notice to 
100

such Lender or Issuing Lender at any time, (i) such Lender or Issuing Lender shall be deemed to have assigned its Loans (but not its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the “Erroneous Payment Impacted Class”) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment  Impacted Class, the “Erroneous Payment Deficiency Assignment”) at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption with respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuing Lender shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender or Issuing Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender or assigning Issuing Lender shall cease to be a Lender or Issuing Lender, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender or assigning Issuing Lender and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuing Lender shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender or Issuing Lender (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or Issuing Lender and such Commitments shall remain available in accordance with the terms of this Agreement.  In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender or Issuing Lender under the Loan Documents with respect to each Erroneous Payment Return Deficiency (the “Erroneous Payment Subrogation Rights”).
(e)The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Loan Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Loan Party for the purpose of making such Erroneous Payment.
(f)To the extent permitted by applicable Law, no Payment Recipient shall assert any right or claim to  an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment 
101

received, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine
(g)Each party’s obligations, agreements and waivers under this Section 11.13 shall survive the resignation or replacement of the Administrative Agent, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.
ARTICLE 12
MISCELLANEOUS
12.1Modifications, Amendments or Waivers.  With the written consent of the Required Lenders (or as expressly provided by Section 2.11 [Incremental Loans]), the Administrative Agent, acting on behalf of all the Lenders, and the Borrower, on behalf of the Loan Parties, may from time to time enter into written agreements amending or changing any provision of this Agreement or any other Loan Document or the rights of the Lenders or the Loan Parties hereunder or thereunder, or may grant written waivers or consents hereunder or thereunder.  Any such agreement, waiver or consent made with such written consent shall be effective to bind all the Lenders and the Loan Parties; provided, that no such agreement, waiver or consent may be made which will:
(a)Increase of Commitment.  Increase the amount of the Revolving Credit Commitment or Term Loan Commitment of any Lender hereunder without the consent of such Lender;
(b)Extension of Payment; Reduction of Principal, Interest or Fees; Modification of Terms of Payment.  Whether or not any Loans are outstanding, extend the Expiration Date or the time for payment of principal or interest of any Loan (excluding the due date of any mandatory prepayment of a Loan), the Commitment Fee or any other fee payable to any Lender, or reduce the principal amount of or the stated rate of interest borne by any Loan (other than as a result of waiving the applicability of any post-default increase in interest rates) or reduce the stated rate of the Commitment Fee or any other fee payable to any Lender, without the consent of each Lender directly affected thereby (provided that any amendment or modification of defined terms used in the financial covenants of this Agreement shall not constitute a reduction in the stated rate of interest or fees for purposes of this clause (b));
(c)Release of Guarantor.  Release any material portion of the value of the Guarantors from their Obligations under the Guaranty Agreement, in each case without the consent of all Lenders (other than Defaulting Lenders); or
(d)Miscellaneous.  Amend Section 5.4 [Pro Rata Treatment of Lenders], Section 11.3 [Exculpatory Provisions], Section 5.5 [Sharing of Payments by Lenders], Section 10.3 [Application of Proceeds] or this Section 12.1, alter any provision regarding the pro rata treatment of the Lenders or requiring all Lenders to authorize the taking of any action or reduce any percentage specified in the definition of Required Lenders, in each case without the consent of all of the Lenders;
provided that (i) no agreement, waiver or consent which would modify the interests, rights or obligations of the Administrative Agent, the Issuing Lender, or the Swingline Loan Lender may be 
102

made without the written consent of the Administrative Agent, the Issuing Lender or the Swingline Loan Lender, as applicable, and (ii) the Administrative Agent’s Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, and provided, further that, if in connection with any proposed waiver, amendment or modification referred to in Sections 12.1(a) through (d) above, there is a Non-Consenting Lender, then the Borrower shall have the right to replace any such Non-Consenting Lender with one or more replacement Lenders pursuant to Section 5.13 [Replacement of a Lender].  Notwithstanding anything to the contrary herein, 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 (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender disproportionately adversely relative to other affected Lenders shall require the consent of such Defaulting Lender.
In addition, notwithstanding the foregoing, (a) with the consent of the Borrower, the Administrative Agent may amend, modify or supplement any Loan Document without the consent of any Lender or the Required Lenders in order to correct or cure any ambiguity, inconsistency or defect or correct any typographical or ministerial error in any Loan Document (provided that any such amendment, modification or supplement shall not be materially adverse to the interests of the Lenders taken as a whole), and (b) without the consent of any Lender or the Borrower, within a reasonable time after (i) the effective date of any increase or addition to, extension of or decrease from, the Revolving Credit Commitment, or (ii) any assignment by any Lender of some or all of its Revolving Credit Commitment, the Administrative Agent shall, and is hereby authorized to, revise Schedule 1.1(B) to reflect such change, whereupon such revised Schedule 1.1(B) shall replace the old Schedule 1.1(B) and become part of this Agreement.
12.2No Implied Waivers; Cumulative Remedies.  No course of dealing and no delay or failure of the Administrative Agent or any Lender in exercising any right, power, remedy or privilege under this Agreement or any other Loan Document shall affect any other or future exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further exercise thereof or of any other right, power, remedy or privilege.  The enumeration of the rights and remedies of the Administrative Agent and the Lenders specified in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise.  No reasonable delay or failure to take action on the part of the Administrative Agent or any Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default.
103

12.3Expenses; Indemnity; Damage Waiver.
(a)Costs and Expenses.  The Borrower shall pay (i) all reasonable and documented outofpocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent) in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented outofpocket expenses incurred by the Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) all outofpocket expenses incurred by the Administrative Agent, any Lender or the Issuing Lender (including the fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the Issuing Lender) in connection with the enforcement of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such outofpocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit (but limited with respect to legal counsel to one primary counsel to the Administrative Agent and the Lenders, and if reasonably necessary, (A) a single local counsel in each relevant jurisdiction and with respect to each relevant specialty and (B) in the case of an actual or perceived conflict among the Administrative Agent and the Lenders, one counsel for each group of similarly situated Persons), and (iv) all reasonable and documented out-of-pocket expenses of the Administrative Agent’s regular employees and agents engaged periodically to perform audits of the Loan Parties’ books, records and business properties.
(b)Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), the Arrangers, each Lender and the Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from (and shall reimburse each Indemnitee promptly after receipt of a written request together with customary backup documentation), any and all losses, claims, damages, liabilities and related reasonable and documented out-of-pocket expenses (including the reasonable and documented fees, charges and disbursements of any counsel for any Indemnitee but limited to one single counsel and, if necessary a single local counsel in each appropriate jurisdiction) incurred by any Indemnitee or awarded against any Indemnitee by any Person (including the Borrower or any other Loan Party, or any affiliate of any such party) other than such Indemnitee and its Related Parties arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation 
104

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 or any affiliate of any such 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 or related expenses (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for material breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction, or (z) arise from any dispute solely among Indemnitees and their Related Parties, other than any claims against an Indemnitee in its capacity or in fulfilling its role as an Administrative Agent, arranger or any similar role in respect of this Agreement and other than any claims arising out of any act or omission of any Loan Party or their respective Subsidiaries.  This Section 12.3(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.
(c)Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under paragraph (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing Lender, the Swingline Loan Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), such Issuing Lender, such Swingline Loan Lender or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought based on each Lender’s Ratable Share at such time) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided that with respect to such unpaid amounts owed to the Issuing Lender or the Swingline Loan Lender solely in its capacity as such, only the Lenders with Revolving Credit Commitments shall be required to pay such unpaid amounts, such payment to be made severally among them based on such Lenders’ Ratable Share of the Revolving Credit Facility (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) provided, further, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent),the Issuing Lender or the Swingline Loan Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent), the Issuing Lender or the Swingline Loan Lender in connection with such capacity.  The obligations of the Lenders under this paragraph (b) are subject to the provisions of Section 2.2 [Nature of Lenders’ Obligations with Respect to Revolving Credit Loans].
(d)Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable Law, the Loan Parties shall not assert, and hereby waive, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  None of the Loan Parties nor any of their Subsidiaries shall have any liability for any special, indirect, consequential or punitive damages arising out of, related to or in connection 
105

with any aspect of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof; provided that nothing contained in this sentence shall limit any Indemnitee’s rights to indemnification under this Section 12.3 with respect to matters initiated by third parties.  No Indemnitee referred to in Section 12.3(a) [Costs and Expenses] shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby, except to the extent such liability or damages are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.
(e)Payments.  All amounts due under this Section 12.3 shall be payable not later than ten (10) days after demand therefor.
(f)Survival.  Each party’s obligations under this Section 12.3 shall survive the termination of the Loan Documents and payment of the obligations hereunder.
12.4Holidays.  Whenever payment of a Loan to be made or taken hereunder shall be due on a day which is not a Business Day such payment shall be due on the next Business Day (except as provided in Section 4.2 [Interest Periods]) and such extension of time shall be included in computing interest and fees, except that the Loans shall be due on the Business Day preceding the Expiration Date if the Expiration Date is not a Business Day.  Whenever any payment or action to be made or taken hereunder (other than payment of the Loans) shall be stated to be due on a day which is not a Business Day, such payment or action shall be made or taken on the next following Business Day, and such extension of time shall not be included in computing interest or fees, if any, in connection with such payment or action.
12.5Notices; Effectiveness; Electronic Communication
(a)Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail as follows:
(i)if to the Borrower or any other Loan Party, to it at 1360 Post Oak Blvd., Suite 100, Houston, Texas 77056, Attention of David Hisey, Chief Financial Officer (Telephone No. (713) 625-8043), Scott Gray, Senior Vice President – Finance (Telephone No. (713) 625-8036), and John Killea, Chief Legal Officer (Telephone No. (713) 881-7835);
(ii)if to the Administrative Agent, to PNC Bank, National Association at 500 First Avenue, Pittsburgh, Pennsylvania 15219, Attention: Agency Services with a copy to PNC Bank, National Association, at 2200 Post Oak Blvd, 20th floor, Houston, TX 77056, Attn: Cindy Young (Telephone No. (713) 499-8632);
(iii)if to PNC Bank, National Association in its capacity as Issuing Lender, to it at 500 First Avenue, Pittsburgh, Pennsylvania 15219, Attention: Agency 
106

Services, and if to any other Issuing Lender, to it at the address provided in writing to the Administrative Agent and the Borrower at the time of its appointment as an Issuing Lender hereunder;
(iv)if to a Lender, to it at its address (or facsimile number) specified in its Administrative Questionnaire.
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications, to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).
(b)Electronic Communications.  Notices and other communications to the Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender or Issuing Lender pursuant to Article 2 [Revolving Credit and Swingline Loan Facilities] or Article 3 [Term Loans] if such Lender or Issuing Lender, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(c)Change of Address, etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.
(d)Platform.
(i)Each Loan Party agrees that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the Issuing Lender and the other Lenders by posting the Communications on the Platform.
107

(ii)The Platform 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 the Borrower or the other Loan Parties, any Lender 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 the Borrower’s, any Loan Party’s or the Administrative Agent’s transmission of communications through the Platform, except to the extent found by a court of competent jurisdiction in a final, non-appealable judgment to have resulted from an Agent Party’s gross negligence or willful misconduct.  “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 to the Administrative Agent, any Lender or any Issuing Lender by means of electronic communications pursuant to this Section, including through the Platform.
12.6Severability.  The provisions of this Agreement are intended to be severable.  If any provision of this Agreement shall be held invalid or unenforceable in whole or in part in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.  Without limiting the foregoing provisions of this Section, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, the Issuing Lender or the Swingline Loan Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.
12.7Duration; Survival.  All representations and warranties of the Loan Parties contained herein or made in connection herewith shall survive the execution and delivery of this Agreement and the completion of the transactions hereunder, and shall continue in full force and effect until the Facility Termination Date.  All covenants and agreements of the Borrower contained herein relating to the payment of principal, interest, premiums, additional compensation or expenses and indemnification, including those specified in the Notes, Section 5 [Payments] and Section 12.3 [Expenses; Indemnity; Damage Waiver], shall survive the Facility Termination Date.  All other covenants and agreements of the Loan Parties shall continue in full force and effect from and after the Closing Date and until the Facility Termination Date.
12.8Successors and Assigns.
(a)Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or 
108

otherwise transfer any of its rights or obligations hereunder (including, in each case, by way of an Division) without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that (in each case with respect to any Facility) any such assignment shall be subject to the following conditions:
(i)Minimum Amounts.
(1)in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it (in each case with respect to any Facility) or contemporaneous assignments to related Approved Funds (determined after giving effect to such assignments) that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate 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
(2)in any case not described in clause (i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption Agreement, as of the Trade Date) shall not be less than $5,000,000, in the case of any assignment in respect of the Revolving Credit Commitment of the assigning Lender, or $5,000,000, in the case of the Term Loan of such assigning Lender, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (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 Loan or the Commitment assigned.
109

(iii)Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:
(1)the 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; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof;
(2)the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (i) the Revolving Credit Facility or any unfunded Commitments with respect to the Term Loan Facility if such assignment is to a Person that is not a Lender with a Commitment in respect of such Facility, an Affiliate of such Lender or an Approved Fund with respect to such Lender, or (ii) any Term Loans to a Person who is not a Lender, an Affiliate of a Lender or an Approved Fund; and
(3)the consent of the Issuing Lender and Swingline Loan Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Revolving Credit Facility.
(iv)Assignment and Assumption Agreement.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption Agreement, together with a processing and recordation fee of $3,500. The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(v)No Assignment to Certain Persons.  No such assignment shall be made to 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 a Defaulting Lender or a Subsidiary thereof.
(vi)No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).
(vii)Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto specified herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed 
110

by such Defaulting Lender to the Administrative Agent, the Issuing Lender, the Swingline Loan Lender and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swingline Loans in accordance with its Ratable Share.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.
(viii)Effectiveness; Release.  Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c), from and after the effective date specified in each Assignment and Assumption Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption Agreement, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption Agreement, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 4.4 [LIBOR Rate Unascertainable; Etc.], 5.8 [Increased Costs], and 12.3 [Expenses, Indemnity; Damage Waiver] with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section.
(c)Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in Pittsburg, Pennsylvania  a copy of each Assignment and Assumption Agreement 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 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)Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the 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/
111

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 Issuing Lender and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 12.3 [Expenses; Indemnity; Damage Waiver] with respect to any payments made by such Lender to its Participant(s).
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree (other than as is already provided for herein) to any amendment, modification or waiver with respect to Sections 12.1(a) [Increase of Commitment], 12.1(b) [Extension of Payment, Etc.], or 12.1(c) [Release of Guarantor]) that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 4.4 [Libor Rate Unascertainable, Etc.], 5.8 [Increased Costs], 5.9 [Taxes] and 5.10 [Indemnity]  (subject to the requirements and limitations therein, including the requirements under Section 5.9(g) [Status of Lenders] (it being understood that the documentation required under Section 5.9(g) [Status of Lenders] shall be delivered to the participating Lender and the information and documentation required under Section 5.9(h) will be delivered to the Borrower and the Administrative Agent)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 5.13 [Replacement of a Lender] as if it were an assignee under to paragraph (b) of this Section 12.8; and (B) shall not be entitled to receive any greater payment under Sections 5.8 [Increased Costs] or 5.9 [Taxes], with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 5.13 [Replacement of a Lender] with respect to any Participant.  To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 10.2(b) [Set-off] as though it were a Lender; provided that such Participant agrees to be subject to Section 5.5 [Sharing of Payments by Lenders] as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent 
112

(in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(e)Certain Pledges; Successors and Assigns Generally.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; 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.
(f)Cashless Settlement.  Notwithstanding anything to the contrary contained in this Agreement, any Lender may exchange, continue or rollover all or a portion of its Loans in connection with any refinancing, extension, loan modification or similar transaction permitted by the terms of this Agreement, pursuant to a cashless settlement mechanism approved by the Borrower, the Administrative Agent and such Lender.
(g)Arrangers/Bookrunners.  Notwithstanding anything to the contrary contained in this Agreement, the name of any arranger and/or bookrunner listed on the cover page of this Agreement may be changed by the Administrative Agent to the name of any Lender or Lender’s broker-dealer Affiliate, upon written request to the Administrative Agent by any such arranger and/or bookrunner and the applicable Lender or Lender’s broker-deal Affiliate.
12.9Confidentiality.
(a)General.  Each of the Administrative Agent, the Lenders and the Issuing Lender agree to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its Related Parties (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable Laws or regulations or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder to (i)  any rating agency in connection with rating the Borrower or its Subsidiaries or the Facilities or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Facilities; (h) with the consent of the Borrower; or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Administrative Agent, any Lender, any Issuing Lender or any of their respective Affiliates on a nonconfidential basis from a source other than any Loan Party or any of their Subsidiaries. In addition, the Administrative Agent and the Lenders may 
113

disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Agents and the Lenders in connection with the administration of this Agreement, the other Loan Documents, and the Commitments.
For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or any Issuing Lender on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries; provided that, in the case of information received from the Borrower or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
(b)Sharing Information With Affiliates of the Lenders.  Each Loan Party acknowledges that from time to time financial advisory, investment banking and other services may be offered or provided to the Borrower or one or more of its Affiliates (in connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of such Lender and each of the Loan Parties hereby authorizes each Lender to share any information delivered to such Lender by such Loan Party and its Subsidiaries pursuant to this Agreement with any such Subsidiary or Affiliate of the Lender subject to the provisions of Section 12.9(a) [General].
EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND  ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.
ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE 
114

INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.
12.10Counterparts; Integration; Effectiveness; Electronic Execution.
(a)Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof, including any prior confidentiality agreements and commitments.  Except as provided in Article 7 [Conditions Of Lending And Issuance Of Letters Of Credit], this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or e-mail shall be effective as delivery of a manually executed counterpart of this Agreement.
(b)Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption Agreement 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.
12.11CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL.
(a)Governing Law.  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 specified therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the Law of the State of New York.  Each standby Letter of Credit issued under this Agreement shall be subject, as applicable, to the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the International Standby Practices (ICC Publication Number 590) (“ISP98”), as determined by the Issuing Lender, and each trade Letter of Credit shall be subject to UCP, and in each case to the extent not inconsistent therewith, the Laws of the State of New York  without regard to its conflict of laws principles.
The Borrower and each other Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any 
115

Lender, the Issuing Lender, or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such  courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent, any Lender or any Issuing Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or any other Loan Party or its properties in the courts of any jurisdiction.
(b)Waiver of Venue.  The Borrower and each other Loan Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (a) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(c)Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 12.5 [    Notices; Effectiveness; Electronic Communication].  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable Law.
(d)WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
12.12Acknowledgement and Consent to Bail-In of Affected 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 Affected Financial Institution arising under any Loan Document, to the extent such 
116

liability is unsecured, may be subject to the write-down and conversion powers of the applicable 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 the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and
(i)the effects of any Bail-in Action on any such liability, including, if applicable:
(ii)a reduction in full or in part or cancellation of any such liability;
(iii)a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected  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
(b)the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.
12.13USA PATRIOT Act Notice.  Each Lender that is subject to the USA PATRIOT Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies Loan Parties that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies the Loan Parties, which information includes the name and address of Loan Parties and other information that will allow such Lender or Administrative Agent, as applicable, to identify the Loan Parties in accordance with the USA PATRIOT Act.  The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide 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 Act.
12.14Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swaps  or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the Laws of the State of New York and/or of the United States or any other state of the United States):
(a)In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will 
117

be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the Laws of the United States or a state of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the Laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
(b)As used in this Section 12.14, the following terms have the following meanings:
“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Covered Entity” means any of the following:  (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b), (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).]

[Signature Pages Follow]

118

IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Agreement as of the day and year first above written.
    BORROWER
STEWART INFORMATION SERVICES CORPORATION
By:  /s/ David Hisey    
Name:  David Hisey    
Title:  Chief Financial Officer    
GUARANTORS

STEWART TITLE COMPANY
By:  /s/ David Hisey    
Name:  David Hisey    
Title:  Chief Financial Officer    
STEWART LENDER SERVICES, INC.
By:  /s/ David Hisey    
Name:  David Hisey    
Title:  Vice President - Finance    

PNC BANK, NATIONAL ASSOCIATION, as a Lender and as Administrative Agent
By:  /s/ Samantha Hagar    
Name:  Samantha Hagar    
Title:  Assistant Vice President    

FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender
By:  /s/ Michael J. Schaltz, Jr.    
Name:  Michael J. Schaltz, Jr.    
Title:  Managing Director & SVP    

REGIONS BANK, as a Lender
By:  /s/ William Soo    
Name:  William Soo    
Title:  Director     

CITIZENS BANK, N.A., as a Lender
By:  /s/ Douglas M. Kennedy    
Name:  Douglas M. Kennedy    
Title:  SVP    

IBERIABANK, a division of First Horizon, as a Lender
By:  /s/ Todd Brown    
Name:  Todd Brown    
Title:  Vice President    

ZIONS BANCORPORATION, N.A. 
dba Amegy Bank, as a Lender
By:  /s/ Cameron Brown    
Name:  Cameron Brown    
Title:  Vice President    

TEXAS CAPITAL BANK, as a Lender
By:  /s/ Michael Robnett    
Name:  Michael Robnett    
Title:  Executive Vice President    

BANKUNITED, INC., as a Lender
By:  /s/ Craig Kincade    
Name:  Craig Kincade    
Title:  SVP    

CITY NATIONAL BANK, as a Lender
By:  /s/ Forrest McGann    
Name:  Forest McGann    
Title:  Senior Credit OfficerExhibit 10.1 

 

EXECUTION COPY

 

CONTRIBUTION AND PURCHASE AGREEMENT

 

THIS CONTRIBUTION AND PURCHASE
AGREEMENT, executed this 2nd day of November, 2021 (the “Effective Date”), by and among SUMMIT HOTEL
OP, LP, a Delaware limited partnership (“Summit OP”) and SUMMIT HOSPITALITY JV, LP, a Delaware limited partnership
(the “Venture;” together with Summit OP, individually and collectively, as the context may require, and jointly and
severally, “Summit”), on the one hand, and NEWCRESTIMAGE HOLDINGS, LLC, a Delaware limited liability company
and NEWCRESTIMAGE HOLDINGS II, LLC, a Delaware limited liability company (individually and collectively, as the context may require,
and jointly and severally, together, “Newcrest”); and joined by Escrow Agent (solely for the purposes set forth herein).
Summit, parking Newcrest and each Investor (as defined herein) are sometimes collectively referred to herein as the “Parties”
and individually as a “Party.”

 

RECITALS

 

A.       As
of the Effective Date, Newcrest, subject to (i) the investors under the Historic Tax Credit Documents, and (ii) the terms and provisions
of Sections 3.3 and 4.6, is the owner, directly or indirectly, of 100% of the LLC Interests (as defined herein) of the entities
listed in Exhibits A-1 through A-11 (attached hereto and made a part hereof) as the project owners of each project reflected therein,
and the applicable Investors are the sole members of the entity reflected on Exhibit A-12 (attached hereto and made a part hereof)
as the project owner of the project reflected therein (each such project owning entity, individually, a “Group 1 Project Owner”
and, collectively, the “Group 1 Project Owners”), which Group 1 Project Owners are the owners of all right, title and
interest in each of the projects listed and further described in Exhibits A-1 through A-12 (each of the foregoing projects, individually,
a “ Group 1 Project” and, collectively, the “Group 1 Projects”).

 

B.       As
of the Effective Date, Newcrest or Newcrest and one or more Investors, as applicable, is the owner, directly or indirectly, of 100% of
the LLC Interests of the entities listed in Exhibits A-13 through A-19 attached hereto and made a part hereof (each such entity,
individually, a “Group 2 Project Owner” and/or collectively, the “Group 2 Project Owners”), which
Group 2 Project Owners are the owner of all right, title and interest in each of the projects listed and further described in Exhibits
A-13 through A-19 (each such project, individually, a “Group 2 Project” and, collectively, the “Group
2 Projects”).

 

C.       As
of the Effective Date, Newcrest or Newcrest and one or more Investors is the owner of 100% of the LLC Interests of the entities listed
in Exhibits A-20 through A-25 attached hereto and made a part hereof (in each instance, each such entity, individually, a “Group
3 Project Owner” and, collectively, the “Group 3 Project Owners;” and together with the Group 1 Project Owners
and the Group 2 Project Owners, sometimes referred to individually as a “Project Owner” and, collectively as the “Project
Owners”), which Group 3 Project Owners entities own certain real property listed and further described in Exhibits A-20 through
A-25 (each such project, individually, a “ Group 3 Project” and, collectively, the “Group 3 Projects”;
and together with the Group 1 Projects and the Group 2 Projects, sometimes referred to individually as a “Project”
and, collectively as the “Projects”).

 

     

     

    

 

D.       
Exhibits E-1 and E-2 attached hereto and made a part hereof describe (a) certain loans (individually, a “Loan”
and, collectively, the Loans”) that will be assumed by Summit (the “Assumed Debt”) as part of the transactions
described herein, (b) each lender or mortgagee with respect to a Loan (each a “Lender”) and (c) those Project Owners
that are borrowers under each such Loan.

 

E.       Newcrest
and the applicable Investors desire to, and shall cause the Group 1 Project Owners to, contribute to Summit, and Summit desires to acquire
from Newcrest and the Group 1 Project Owners, the Group 1 Projects in exchange for the Group 1 Consideration.

 

F.       Newcrest
desires to contribute to Summit, and Summit desires to acquire from each such Investor, 100% of the LLC Interests in each applicable Group
3 Project Owner owned by such Investor (the “Group 3 Acquired Interests (Newcrest)”) in exchange for the Group 3 Newcrest
Consideration.

 

G.       As
of the Effective Date, Summit is the owner of 100% of the LLC Interests in Summit JV MR 2, LLC, a Delaware limited liability company (“Master
REIT 2”). Simultaneously with Closing, Summit shall contribute the Group 1 Projects and the Group 3 Acquired Interests (Newcrest)
to Master REIT 2.

 

H.       
Simultaneously with the Closing, cash shall be contributed to the Venture (the “Venture Contribution”), by wire transfer
in immediately available funds, and Summit shall contribute to the Venture 100% of the LLC Interests in Master REIT 2.

 

I.       As
of the Effective Date, the Venture is the owner of 100% of the LLC Interests in Summit JV MR 3, LLC, a Delaware limited liability company
(“Master REIT 3”). Simultaneously with Closing, the Venture shall contribute the Venture Contribution to Master REIT
3.

 

J.       Newcrest
and each applicable Investor desire to sell, and shall cause each Group 2 Project Owner to sell, to Master REIT 3, and Master REIT 3 desires
to purchase from Newcrest and each such Investor, the Group 2 Projects in exchange for the Group 2 Consideration, all on the terms and
conditions set forth herein and in accordance with Section 4.7(e).

 

K.       As
of the Effective Date, Master REIT 2 and Master REIT 3 are the owners of 100% of the LLC Interests of Summit Hospitality SubJV, LLC, a
Delaware limited liability company (“SubJV”).

 

L.       Simultaneously
with Closing, Master REIT 2 shall contribute the Group 3 Acquired Interests (Newcrest) to SubJV, and Master REIT 3 shall contribute a
portion of the Venture Consideration (the “Group 3 Cash Consideration”) to SubJV, and each applicable Investor desires
to and shall sell to SubJV, and Sub JV desires to and shall acquire from each applicable Investor, 100% of the LLC Interests in each Group
3 Project Owner owned by each such Investor (the “Group 3 Acquired Interests (Investor)”) for the Group 3 Cash Consideration.

 

    2

     

    

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound, the Parties agree as follows:

 

ARTICLE
I 

DEFINED TERMS

 

1.1             
Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

 

(a)              
“Access Agreement” means that certain Access Agreement effective as of September 23, 2021 by and between Newcrest
and Summit OP, as amended by that First Amendment to Access Agreement dated as of the Effective Date.

 

(b)              
“Account Cash” means the balances of all cash and securities and other instruments held by a Project Owner (other
than a Group 3 Project Owner), including but not limited to any sums held in reserve by a Lender with respect to the Assumed Debt, and
deposited, held, or contained in any account, bank, or vault, specifically excluding, however, all Cash-On-Hand and Deposits.

 

(c)              
“Additional Deposit” shall have the meaning set forth in Section 2.5.1.

 

(d)              
“Affiliate” means, when used with reference to a specified Person, any Person directly or indirectly controlling,
controlled by (as manager or otherwise), or under common control with the specified Person.

 

(e)              
“Agreement” means this Contribution and Purchase Agreement, including, without limitation, the Schedules and
Exhibits hereto, as the same may be amended pursuant to the terms hereof.

 

(f)               
“Allocated Purchase Price” shall have the meaning set forth in Section 2.7.

 

(g)              
“Ancillary Agreements” means the agreements and documents to be executed by Investor and/or Summit, as applicable,
at the Closing as expressly required by and specified in this Agreement and, including, without limitation, those set forth on the Exhibits
attached hereto.

 

(h)              
“Assignment of Ground Lease” shall have the meaning set forth in Section 4.6.

 

(i)                
“Assumed Contracts” means, collectively: (i) the Existing Leases; (ii) the Existing Service Contracts; (iii)
the Assumed Financial Incentive Agreements, as applicable, (iv) the Ground Leases, and (v) the Equipment Leases.

 

(j)                
“Assumed Debt” shall have the meaning as set forth in the Recitals.

 

(k)              
“Assumed Financial Incentive Agreements” means those agreements set forth and described on Exhibit H-1,
as the same may be amended in accordance with this Agreement, true, correct and complete copies of which have been posted to the Company
Diligence Website.

 

(l)                 “Assumed
Project Liabilities” means liabilities accruing from and after the Closing Date pursuant to (a) the Assumed Contracts; (b)
the Permitted Encumbrances; (c) the Assumed Debt; and (d) any other obligation, liability, contract or agreement for which Investor
has expressly agreed in writing that the Venture or one or more Project Owners shall be obligated or liable following the
Closing.

 

    3

     

    

 

(m)            
“Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency
or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory
authority or quasi-Authority (to the extent that the rules, regulations or orders of such organization or authority have the force of
Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

(n)              
“Balance Sheet Date” shall have the meaning set forth in Section 5.1.10.

 

(o)              
“Books and Records” means all books and records in the possession or control of Investor or the Investor Parties
(or, if applicable, those portions of such books and records) that pertain to the Project Owners or the Projects, as applicable.

 

(p)              
“Bookings” shall mean bookings, contracts or reservations for the use or occupancy of guest rooms and meeting
and banquet facilities of the Projects.

 

(q)              
“Business Day” means a day other than a Saturday, Sunday or National holiday or state holiday on which federally
insured banks and/or the US Post Office are closed in the State of Texas.

 

(r)               
“Cash-On-Hand” means any and all till money and house banks, and any and all money in vending machines, postage
meters, pay phones, laundry machines and other cash-operated equipment and all checks, travelers’ checks, and bank drafts paid by
guests of the Projects and located at the Property, specifically excluding, however, all Account Cash and Deposits.

 

(s)               
“Casualty and Condemnation Termination Threshold” has the meaning set forth in Section 9.13.1.

 

(t)               
“Claim” means any claim, demand, suit, action, litigation, investigation, arbitration, administrative hearing
or other proceedings of any nature.

 

(u)               
“Closing” means the closing of the transactions contemplated by this Agreement.

 

(v)               
“Closing Date” shall have the meaning set forth in Section 4.1.

 

(w)              
“Code” means the Internal Revenue Code of 1986, as amended in effect from time to time or any successor statute
thereto, as interpreted by the applicable Treasury Regulations thereunder. Any reference herein to a specific section or sections of the
Code shall be deemed to include a reference to any corresponding provision of future Law.

 

(x)              
“Column II Adjustments” means the Purchase Price adjustments set forth and described in numeric Column II of
Exhibit D attached hereto related to a Terminable Project.

 

(y)              
“Column III Adjustments” means the Purchase Price adjustments set forth and described in numeric Column III
of Exhibit D attached hereto.

 

    4

     

    

 

(z)              
 “Common Units” means units of partnership interests in Summit OP designated as Common Units pursuant to the
Partnership Agreement.

 

(aa)           
“Company Diligence Website” means that certain online data room populated by Newcrest and Investor as of 11:59
p.m. Central time on the date that is two (2) Business Days prior to the Effective Date.

 

(bb)          
“Construction Warranties” means those certain construction warranties for the Projects identified in Exhibits
A-16 [Hilton Garden Inn Grapevine] and A-22 [Canopy New Orleans].

 

(cc)           
“Covenants Surviving Termination” means the obligations of Summit or Investor that survive the termination of
this Agreement by reason of an express provision set forth in this Agreement.

 

(dd)          
“Cut-Off-Time” means 11:59 p.m. Central time on the day immediately preceding the Closing Date.

 

(ee)           
Data Privacy Requirements” means any Laws applicable to Investor or the Investor Parties that govern the collection,
use, access, storage, disclosure, processing or protection of Personal Information, including without limitation, the CAN-SPAM Act of
2003, 15 U.S.C. § 7701 et seq, Breach of Personal Information Notification Act, 73 Pa. Stat. § 2301 et seq, and all implementing
Laws.

 

(ff)             
“Data Security Incident” means any confirmed or suspected (i) loss, theft or damage of Personal Information,
(ii) unauthorized or unlawful use, access or disclosure of Personal Information, or (iii) any other data security incident requiring notification
to any Persons or regulators pursuant to any Data Privacy Requirements.

 

(gg)          
“Debt” means, with respect to any Person, as of any date and time, all obligations of such Person: (i) for borrowed
money; (ii) evidenced by any note, bond, debenture, mortgage or other debt instrument or debt security; (iii) under any interest rate
swap, hedging agreement, currency swap, commodity derivatives or other hedging transactions or similar agreements designed to protect
against fluctuations in currency values; (iv) to pay the deferred purchase price of assets, goods, services or securities (other than
trade accounts payable and accrued commercial or trade liabilities arising in the ordinary course of business); (v) created or arising
under any conditional sale or other title retention agreement (excluding this Agreement and the Required Transfer Documents); (vi) pursuant
to any “capital leases,” as such term is understood under GAAP; (vii) to the extent then drawn upon, under any letters or
credit, performance bonds, banker’s acceptances, surety bonds or similar instruments; (viii) guarantees or other forms of credit
support of obligations described in clauses (i) through (vii) above of any Person; or (ix) accrued interest on any of the foregoing or
any prepayment or other similar fees, expenses or penalties on or relating to the prepayment, repayment or assumption of any of the foregoing.

 

(hh)          
“Debt Commitment Letter” means any commitment letter provided to Summit, Master REIT 2, Master REIT 3, the Venture
and/or SubJV by a Debt Financing Source (which, for the avoidance of doubt, shall not include a Lender).

 

    5

     

    

 

(ii)             
 “Debt Financing Source” means any financing source (other than a Lender) of Summit, Master REIT 2, Master REIT
3, the Venture and/or SubJV with respect to the transactions contemplated by this Agreement.

 

(jj)             
“Deposit” shall mean all deposits under or with respect to Bookings, whether in cash or otherwise.

 

(kk)          
“Disclosure Schedule” means the Disclosure Schedule attached hereto as Schedule 3.

 

(ll)             
“Due Diligence Period” has the meaning set forth in Section 7.1.

 

(mm)     
“Earnest Money Deposit” shall have the meaning set forth in Section 2.5.1.

 

(nn)          
 “Encumbrance” means, with respect to any Project, any (i) lien, mortgage, deed of trust, charge, option, contractual
restriction on transfer, security interest, Tax lien, pledge, easement, right of first refusal, covenant, restriction, reservation, conditional
sale, title retention arrangement, mechanics’ or materialmen’s liens, prior written assignment or other encumbrance, encroachment
or any written agreement to create or confer any of the foregoing, in each case whether arising by written agreement or under any Law
or otherwise, and (ii) any warrants, phantom equity, profit participation, calls, preemptive rights, authorized options, subscriptions,
convertible or exchangeable securities, or other commitments contingent or otherwise, or similar rights with respect to the Projects or
the Subject Interests, as applicable, but specifically excluding the Assumed Debt.

 

(oo)          
“Environmental Law” means any Law relating to pollution or protection of the environment, health, safety or
natural resources from Hazardous Materials, including, without limitation, those relating to the use, handling, transportation, treatment,
storage, disposal, release or discharge of Hazardous Materials.

 

(pp)          
“Equipment Leases” means those equipment leases set forth in the Project Exhibits, true, correct and complete
copies of which have been posted to the Company Diligence Website.

 

(qq)          
“ESA” means any environmental site assessment obtained with respect to a Project and delivered to or obtained
by Investor. An ESA may sometimes be referred as a “New ESA” which refers to those ESAs obtained by Summit in connection
with this Agreement.

 

(rr)             
“Escrow Agent” shall mean Fidelity National Title Insurance Company.

 

(ss)            
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the SEC’s rules and regulations
promulgated thereunder.

 

(tt)             
“Excluded Property” means (i) those claims filed by Investor as noted in the Disclosure Schedule, including
all monetary settlements and/or judgments, (ii) as further provided for in Section 9.11, any and all historic tax credits issued
by the State of Louisiana for the Project set forth in Exhibit A-22 [Canopy New Orleans] and any Financial Incentives that are
not assigned to Summit, and (iii) the key money for Canopy New Orleans.

 

    6

     

    

 

(uu)            
 “Existing Franchise Agreements” means, collectively, the franchise agreements identified as an “Existing
Franchise Agreement” on each of the Project Exhibits.

 

(vv)            
“Existing Leases” means, collectively, the Leases identified as “Existing Leases” on each
of the Project Exhibits, true, correct and complete copies of which have been posted to the Company Diligence Website.

 

(ww)          
“Existing Management Agreements” means, collectively, the management agreements with respect to each Project
between a Project Owner and Existing Manager.

 

(xx)              
“Existing Manager” means NewcrestImage Management, LLC, a Delaware limited liability company.

 

(yy)            
“Existing Service Contracts” means, collectively, the Service Contracts identified as “Existing Service
Contracts” on each of the Project Exhibits.

 

(zz)              
“Financial Crimes Compliance Laws” shall have the meaning set forth in Section 5.2.5.

 

(aaa)           
“Financial Incentives” shall have the meaning set forth in Section 9.11.

 

(bbb)          
“Financial Statements” shall have the meaning set forth in Section 5.1.10.

 

(ccc)           
“Formation Document” shall mean the certificate of formation, articles of organization or other document that
is filed in the state of formation in order to initially form and create the limited liability company in question, including all amendments
thereto.

 

(ddd)          
“Franchise Agreement” means any new agreement between a Group 3 Project Owner or Summit (or its Affiliate) and
a hotel franchisor or licensor to be executed and delivered at the Closing, and any amendment, side letter, reservations agreement, technical
services agreement or similar agreement relating to any Project executed and delivered therewith.

 

(eee)           
“Fundamental Representations” means the representations and warranties of (i) Newcrest and/or the Investor Parties
contained in Sections 5.1.10, 5.1.11, 5.2.1 through and including 5.2.7, 5.3.1, 5.3.2, 5.3.5,
5.3.7, 5.3.9, 5.3.10 and 5.3.14, and (ii) of Summit contained in Sections 6.1, 6.2, 6.3,
6.5, 6.6, 6.7, 6.9, 6.10, 6.11, 6.12 and 6.13.

 

(fff)             
“GAAP” means generally accepted accounting principles, consistently applied.

 

(ggg)         
“Governing Document” shall mean the limited liability company agreement or operating agreement which has been
executed by the member(s) and (if applicable) manager(s) in order to govern the operations of the limited liability company in question,
including all amendments thereto.

 

(hhh)          
“Group 1 Consideration” shall have the meaning set forth in Section 2.6.1.

 

(iii)              
“Group 1 Project Owner” shall have the meaning set forth in the Recitals.

 

    7

     

    

 

(jjj)              
 “Group 1 Projects” shall have the meaning set forth in the Recitals.

 

(kkk)           
“Group 2 Consideration” shall have the meaning set forth in Section 2.6.2.

 

(lll)              
“Group 2 Project Owner” shall have the meaning set forth in the Recitals.

 

(mmm)        
“Group 2 Projects” shall have the meaning set forth in the Recitals.

 

(nnn)          
“Group 3 Cash Consideration” shall have the meaning set forth in the Recitals.

 

(ooo)          
“Group 3 Consideration” shall mean the Group 3 Newcrest Consideration and the Group 3 Cash Consideration.

 

(ppp)          
“Group 3 Newcrest Consideration” means the Common Units, Series Z Preferred Units and the applicable portion
of the Assumed Debt related to the Group 3 Projects received in exchange for the Group 3 Acquired Interests (Newcrest).

 

(qqq)          
“Group 3 Project Owner” shall have the meaning set forth in the Recitals.

 

(rrr)             
“Group 3 Projects” shall have the meaning set forth in the Recitals.

 

(sss)           
“Group 3 Acquired Interests (Investor)” shall have the meaning set forth in the Recitals.

 

(ttt)             
“Group 3 Acquired Interests (Newcrest)” shall have the meaning set forth in the Recitals.

 

(uuu)          
“Ground Lease” shall mean each Ground Lease listed in Exhibits A-14 [Embassy Suites Amarillo], A-16
[Hilton Garden Inn Grapevine] and A-22 [Canopy New Orleans], complete copies of which have been posted to the Company Diligence
Website. For the avoidance of doubt, the Ground Lease related to the Projects described on Exhibits A-11 [Holiday Inn Express Grapevine]
and A-7 [Springhill Suites Dallas] will be terminated on or prior to the Closing in accordance with the terms and conditions set
forth in this Agreement.

 

(vvv)          
“Ground Lease Consent” means the acknowledgement of the Ground Lessor (namely, Amarillo Local Government Corporation)
of the assignment of the Ground Lease for the Project described on Exhibit A-14 [Embassy Suites Amarillo] to Summit pursuant to
the Assignment of Ground Lease for such Project, in form and substance attached to or required by the Ground Lease or otherwise as reasonably
acceptable to Summit; and for the avoidance of doubt, the Parties acknowledge and agree that no Ground Lease Consent is required for the
Projects described on Exhibit A-23 [Canopy New Orleans] and Exhibit A-16 Hilton Garden Inn Grapevine].

 

(www)        
“Ground Lease Estoppel” has the meaning set forth in Section 9.15.6.

 

(xxx)           
“Ground Lessor” means each landlord or ground lessor with respect to a Ground Lease listed in Exhibits A-14
[Embassy Suites Amarillo], [A-16] [Hilton Garden Inn Grapevine] and [A-22] [Canopy New Orleans].

 

    8

     

    

 

(yyy)          
 “Hazardous Materials” means (i) petroleum and petroleum products, by-products or breakdown products, radioactive
materials, asbestos-containing materials, toxic mold, and polychlorinated biphenyls and (ii) any other chemicals, materials or substances
that are regulated as to disposal, storage, use or quantity or identified as toxic or hazardous or as a pollutant, contaminant or waste
under any applicable Environmental Law, expressly excluding chemicals, materials or substances used in connection with the operation and/or
maintenance of the Projects consistent with past practice and in amounts that are permitted under Environmental Law.

 

(zzz)           
 “Historic Tax Credit Documents” means, collectively, any and all documents evidencing, securing or otherwise
relating to the Historic Tax Credits.

 

(aaaa)         
“Historic Tax Credits” means any and all federal, state or local historic rehabilitation tax credits relating
to any Historic Tax Credit Project.

 

(bbbb)       
“Historic Tax Credit Projects” means (i) AC Houston, (ii) Springhill Suites/Town Place Suites New Orleans, (iii)
Canopy New Orleans, and (iv) AC/Residence Inn Dallas.

 

(cccc)         
“Hotel or Hotels” means each of the Hotels described in the Project Exhibits.

 

(dddd)       
“Impositions” means, for each of the Projects, all real estate and personal property taxes, assessments, excises
and levies (and any associated interest, costs or penalties), general and special, ordinary and extraordinary, foreseen and unforeseen,
of any kind and nature, that are at any time assessed, levied, charged or imposed on, or with respect to all or any portion of the Projects,
or the sidewalks, streets or alley ways adjacent thereto, as appropriate, or the ownership, use, occupancy or enjoyment thereof.

 

(eeee)         
“Initial Deposit” shall have the meaning set forth in Section 2.5.1.

 

(ffff)           
“Intangible Personal Property” means (i) all intangible property owned in connection with such Project, including
without limitation, (A) permits, licenses and other governmental approvals; (B) all Books and Records, including tenant files; (C) all
drawings, surveys, plans and specifications with respect to such Project; (D) all URLs, domain names and telephone numbers associated
with the operation of such Project; (E) all names associated with each Project (if any); (F) all goodwill; and (G) any Assumed Contracts
existing with respect to such Real Property; and (ii) all guaranties, warranties, indemnities and agreements from contractors, subcontractors,
vendors and suppliers regarding their performance, quality of workmanship and quality of materials supplied in connection with the construction,
manufacture, development, installation and operation of the Real Property at the Projects.

 

(gggg)       
“Intellectual Property Rights” means all of the following: (a) trademarks, service marks, trade dress, trade
names, slogans, logos, business names and corporate names (and all translations, transliterations, adaptations, derivations and combinations
of the foregoing), together with all of the goodwill associated therewith; (b) copyrights, works and waivers of moral rights; (c) trade
secrets, inventions, improvements, specifications, designs, formulae, techniques, customer lists, technical data and manuals, and research
and development information; (d) domain names, website content and social media accounts; and (e) registrations, applications and renewals,
and any corresponding rights, for any of the foregoing.

 

    9

     

    

 

(hhhh)        
 “Interim Liquor Agreement” has the meaning set forth in Section 9.10.

 

(iiii)             
“Investor,” “Investor Party” and “Investor Parties” means, individually
and/or collectively, as the context may require, Newcrest, each Project Owner, and, as applicable, each intervening ownership tier on
the Ownership Chart solely with respect to the Group 3 Projects and the Group 3 Project Owners, and each lessor or lessee which is an
affiliate of a Project Owner (or its Affiliates), including, without limitation, each master tenant and each master subtenant.

 

(jjjj)             
“Investor Deliveries” has the meaning set forth in Section 4.6.

 

(kkkk)         
“Key Money” shall have the meaning set forth in Section 9.11.

 

(llll)             
“Key Money Obligations” means those key money repayment obligations in the approximate amounts and for those
certain Projects described on Exhibit H-2 attached hereto and made a part hereof, which Key Money Obligations arise pursuant to
certain Existing Franchise Agreements and will be included as part of any Franchise Agreement required to be delivered at Closing.

 

(mmmm)     
“Knowledge of Investor” or “Investor’s Knowledge” means the actual knowledge of Mehul
Patel, Yogi Patel, Chirag Patel and David Perel, but without inquiry, imputation or investigation of any other Person, it being understood
that the identification of each such individual shall not result in or subject such individual to, any personal liability on the part
of such individual for any matter, Claims or Liabilities arising pursuant to this Agreement, including, without limitation, resulting
from a breach or asserted breach of any Investor Warranties.

 

(nnnn)        
“Knowledge of Summit” or “Summit’s Knowledge” means the actual knowledge of Jack Cantele,
Emery Jansen, Adam Wudel, Craig Aniszewski, Jon Stanner and William Conkling, but without inquiry, imputation or investigation of any
other Person, it being understood that the identification of each such individual shall not result in or subject such individual to, any
personal liability on the part of any such individual for any matter, Claims or Liabilities arising pursuant to this Agreement, including,
without limitation, resulting from a breach or asserted breach of any representation or warranty of Summit contained herein or in the
Required Transfer Documents.

 

(oooo)        
“Law” means any federal, state, local or foreign statute, law (including common law), ordinance, regulation,
rule, code, order, judgment or decree, and any judicial or administrative interpretation thereof, and any other requirement or rule of
law, including, without limitation, zoning and building codes.

 

(pppp)        
“Leases” means, for each Project, all of the following: (i) all leases, licenses or other occupancy agreements
permitting any Person the right to use or occupy any portion of a Project; (ii) all guaranties with respect thereto, but excluding any
Ground Lease; and (iii) all modifications, amendments, supplements and extensions of any of the foregoing as of the Effective Date.

 

(qqqq)        
“Lender” shall have the meaning set forth in the Recitals.

 

    10

     

    

 

(rrrr)            
 “Lender Designated Sections” means Sections 11.14, 11.21 and 11.22.

 

(ssss)         
“Loan” shall have the meaning set forth in the Recitals.

 

(tttt)          
“Loan Assumption Agreement” means that certain Assumption Agreement between Investor, Summit and the applicable
Lender, whereby Investor assigns, and Summit assumes, the Assumed Debt, and the applicable Lender consents to the foregoing.

 

(uuuu)       
“Liabilities” means any and all debts, liabilities and obligations, whether accrued or fixed, absolute or contingent,
matured or unmatured or determined or determinable, including, without limitation, those arising under any Law.

 

(vvvv)        
“Liquor Licenses” has the meaning set forth in Section 9.10.

 

(wwww)     
“Liquor Licensee” has the meaning set forth in Section 9.10.

 

(xxxx)          
“LLC Interests” means, collectively, as to any referenced limited liability company, all of the following: (i)
all of the limited liability company membership interests or other equity interests of in and to such limited liability company; (ii)
any rights in, to or under the applicable Formation Document of such limited liability company; (iii) any rights to any share of the profits,
losses and capital of such limited liability company; (iv) all rights under the Governing Document of the limited liability company, including
all rights to vote and give approvals, consents, decisions and directions and exercise any other similar right with respect to the limited
liability company; (v) all claims, powers, privileges, benefits, options or rights of any nature whatsoever which currently exist or may
be issued or granted by such limited liability company to a member of the limited liability company; (vi) any limited liability company
certificates or other certificates or instruments evidencing any rights of membership in the limited liability company; (vii) rights to
any distributions (whether in cash or in kind) and all interest in all proceeds of partial or total liquidation or dissolution, or any
recapitalization, reclassification of capital, or reorganization or reduction of capital, or otherwise with respect to such limited liability
company; (viii) all proceeds (including claims against third parties), products and accessions of the foregoing; (ix) all replacements
and substitutions of the foregoing; and (x) all other rights appurtenant to the interests described in foregoing clauses (i) through (ix).

 

(yyyy)        
“Losses” means, with respect to any Person, any and all losses, Liabilities, damages, Claims, awards, judgments,
orders, costs and expenses actually suffered or incurred by such Person, but not including consequential, indirect, special or punitive
damages or lost profits.

 

(zzzz)         
“Management Agreement” means any agreement between a Project Owner and a Project Manager, excluding the Existing
Management Agreements.

 

(aaaaa)        “Master REIT
2” shall have the meaning set forth in the Recitals.

 

(bbbbb)      
“Master REIT 3” shall have the meaning set forth in the Recitals.

 

    11

     

    

 

(ccccc)        “Material
Adverse Effect” means any matter, circumstance or condition that has or is likely to have a material and adverse effect on
the current use (as a hotel), zoning rights (including, without limitation, parking), operation of or access to, a Project, and with
respect to litigation only for the purpose of Section 5.1.2, resulting in a claim in excess of Five Million and 00/100
Dollars ($5,000,000.00), provided, that for the avoidance of doubt, in connection with Section 4.2.1, in the event
that Investor is unable to update the representation in accordance with Section 5.1.2 on the Closing Date, then, subject to
Sections 3.3 and 9.14, such claim shall not give Summit the right to terminate the Agreement.

 

(ddddd)      
“Newcrest” shall have the meaning set forth in the Recitals.

 

(eeeee)        “New Operating
Lease” shall have the meaning set forth in the Recitals.

 

(fffff)           
“Owner’s Affidavit” has the meaning set forth in Section 4.6(k).

 

(ggggg)     
“Ownership Chart” means the chart attached hereto as Schedule 4, true, correct and complete copies of
which have been posted to the Company Diligence Website.

 

(hhhhh)     
“Partnership Agreement” means the First Amended and Restated of Limited Partnership of Summit OP, dated February
14, 2011, as amended through August 11, 2021.

 

(iiiii)            
“PCA” means any property condition assessment obtained with respect to a Project and delivered to or obtained
by Summit. A PCA may sometimes be referred as a “New PCA” which refers to those PCAs obtained by Summit in connection
with this Agreement and listed on the Project Exhibits.

 

(jjjjj)            
“Permit” means any permit, license, franchise, approval, authorization, registration, certificate, variance
or similar right obtained, or required to be obtained, from Authorities in connection with the use, ownership and/or enjoyment of the
Projects.

 

(kkkkk)       
“Permitted Encumbrances” means, for each Project, all of the following: (i) those exceptions identified on Schedule B
of the Title Commitments; (ii) building restrictions and zoning and other regulations, resolutions and ordinances and any amendments
thereto in effect on the Closing Date, but not any existing violations; (iii) the rights of a Ground Lessor with respect to a Ground Lease,
(iv) any and all matters shown on any Survey or visible from an inspection of the land, (v) rights of Tenants under Existing Leases, and
(vi) real estate taxes which are a lien not yet due and payable, as reflected on the Title Policies.

 

(lllll)            
“Person” (whether the initial letter of the word is capitalized or in lower case type) means any individual
or entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so
permits.

 

(mmmmm)  
“Personal Information” means any information about an identifiable individual or as otherwise defined by applicable
Data Privacy Requirements.

 

(nnnnn)     
“Personal Property” means, for each Project, all of the following: all fixtures, equipment, vehicles, and other
personal property, owned or leased, located on or in the Real Property associated with such Project and used for the operation of such
Real Property.

 

    12

     

    

 

(ooooo)     
 “Pre-Closing Entity Taxes” means all Taxes of the Group 3 Project Owners relating to the ownership and use
of the Project Owners and the Projects for any Pre-Closing Tax Period other than any real estate and personal property taxes and assessments
relating to the Projects. In any case where applicable Law does not permit a Group 3 Project Owners to treat the Closing Date as
the last day of the Tax period, the amount of such Taxes that are allocable to the portion of the Straddle Period ending on and including
the Closing Date shall: (a) in the case of such Taxes imposed on a periodic basis with respect to the business or assets of the Group
3 Project Owners, be the amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is
the number of calendar days in the portion of the Straddle Period ending on and including the Closing Date, and the denominator of which
is the number of calendar days in the entire Straddle Period; and (b) in the case of such Taxes that are based upon or related to income
or receipts (including any income Taxes), be deemed to be equal to the amount that would be payable for the Tax period ending on the Closing
Date.

 

(ppppp)      “Pre-Closing Tax Period” means any Tax period ending on or before the Closing Date and, with respect to a Straddle
Period, the portion of such Tax period ending on the Closing Date.

 

(qqqqq)     
“Project” means each of, and “Projects” shall mean all of, the hotel projects identified
as a “Project” on each of the Project Exhibits.

 

(rrrrr)           
“Project Documents” means (a) the Assumed Contracts and (b) the Project Owner Organizational Documents.

 

(sssss)       
“Project Exhibits” means, collectively EXHIBIT A-1 through EXHIBIT A-25 to this
Agreement.

 

(ttttt)          
“Project Manager” means any Person other than a Project Owner that provides property management agreement services
in connection with a Project pursuant to a Management Agreement. Aimbridge Hospitality, a Delaware limited liability company, (or an Affiliate
thereof) will be the Project Manager from and after the Closing Date.

 

(uuuuu)     
“Project Owner” shall have the meaning set forth in the Recitals.

 

(vvvvv)     
“Project Owner Organizational Documents” means the Formation Documents and Governing Documents for each Group
3 Project Owner.

 

(wwwww)   “Property” means, for each project, the (i) Real Property, (ii) Personal Property and (iii) Intangible Personal
Property, but expressly excluding the Excluded Property.

 

(xxxxx)          “Proprietary Information” has the meaning set forth in Section 9.1.

 

(yyyyy)     
“Proration Date” has the meaning in Section 3.1.2.

 

(zzzzz)         
“Proration True-Up Period” has the meaning set forth in Section 3.1.2.

 

(aaaaaa)      “Purchase Price” means the Group 1 Consideration, the Group 2 Consideration and the Group 3 Consideration.

 

    13

     

    

 

(bbbbbb)         
 “PZR” means any zoning report obtained with respect to a Project and delivered to Investor via the Company
Diligence Website. A PZR may sometimes be referred as a “New PZR” which refers to those PZRs (if any) obtained by Summit
in connection with this Agreement.

 

(cccccc)            “Real Property” means, in relation to a Project: (i) the land set forth in the legal description for such Project
as contained in the Title Commitment and Survey for such Project, and all easements, rights (including development, air, mineral and water
rights) and appurtenances to such land which are Permitted Encumbrances; and (ii) all improvements constructed on or under such land as
of the Closing Date, including all buildings, parking areas, drive aisles, truck courts, drainage facilities and underground utility installations.

 

(dddddd)          “REIT” means a “real estate investment trust” within the meaning of Sections 856 through 860 of
the Code.

 

(eeeeee)            “Required Transfer Documents” means, collectively, any and all of the documents identified specifically as “Required
Transfer Documents” on the Project Exhibits.

 

(ffffff)               
“SEC” means the United States Securities and Exchange Commission.

 

(gggggg)         
“Securities Act” means the Securities Act of 1933, as amended, and the SEC’s rules and regulations promulgated
thereunder.

 

(hhhhhh)         
“Series Z Preferred Units” means units of partnership interests in Summit OP designated as 5.25% Series Z Cumulative,
Perpetual, Preferred Units (Liquidation Preference $25 Per Unit).

 

(iiiiii)                  “Service Contracts” means all service, maintenance, operating, utility and other contracts necessary for the
operation, repair or maintenance of a Project.

 

(jjjjjj)                  “Settlement Statement” means a settlement statement, in a form approved by each of Summit, Newcrest, Investor
and the Title Company, reflecting the flow of funds required by the Title Company to close the transaction and issue the Title Policies.

 

(kkkkkk)            “Straddle Period” means any Tax period that begins prior to, and ends after, the Closing Date.

 

(llllll)                  
“Subject Interests” means, collectively, all of the LLC Interests in and to each of the Group 3 Project Owners.

 

(mmmmmm)     
“SubJV” shall have the meaning set forth in the Recitals.

 

(nnnnnn)          
“Summit” shall have the meaning set forth in the Recitals.

 

(oooooo)         
“Summit Deliveries” has the meaning set forth in Section 4.6.

 

(pppppp)         
“Summit OP” shall have the meaning set forth in the Recitals.

 

    14

     

    

 

(qqqqqq)          
 “Summit’s Designee” has the meaning set forth in Section 7.1.

 

(rrrrrr)                “Summit’s Expense Reimbursement” has the meaning set forth in Section 4.3.1.

 

(ssssss)           
“Summit REIT” has the meaning set forth in Section 4.7(h).

 

(tttttt)               
“Summit’s Representatives” has the meaning set forth in Section 7.1.

 

(uuuuuu)          “Survey” means the Survey for each Project obtained and approved by Summit in connection with this Agreement.

 

(vvvvvv)          “Tax” or “Taxes” means any and all taxes, fees, levies, duties, tariffs, imposts and other
similar charges (together with any interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed
by any federal, state, local or foreign governmental or taxing authority, including, without limitation, real estate taxes, special district
taxes, taxes or other charges on or with respect to income, franchises, windfall or other profits, gross receipts, occupancy, personal
property, intangible property, sales, use, capital stock, payroll, employment, social security, workers’ compensation, unemployment
compensation, or net worth; taxes or other charges in the nature of excise, withholding, ad valorem, stamp, transfer, value added, or
gains taxes; license, registration and documentation fees; and customs duties, tariffs and similar charges; and any deficiency, interest
or penalty imposed with respect to any of the foregoing.

 

(wwwwww)
     “Tax Incentive Projects” means those Projects listed on Exhibit H for which the Financial Incentives
and/or Key Money may be assigned to Summit at Closing in accordance with Section 9.1.

 

(xxxxxx)              “Tax Return” means any return, form or other report required to be filed with respect to Taxes, including any
declaration of estimated tax and information return.

 

(yyyyyy)        
“Tenants” means the tenants pursuant to the Leases.

 

(zzzzzz)             “Tenth Amendment” means the Tenth Amendment to the First Amended and Restated Agreement of Limited Partnership
of Summit Hotel OP, LP, in the form mutually agreed-to by the Parties on or about the Effective Date.

 

(aaaaaaa)         
“Termination Notice” has the meaning set forth in Section 7.1.

 

(bbbbbbb)       
“Terminable Project” has the meaning set forth in Section 3.3.

 

(ccccccc)          “Terminable Project Adjusted Purchase Price” means the numeric Column II Adjustments and numeric Column III
Adjustments, shown for each Project on the attached Exhibit D, which shall reduce the Purchase Price in the event a Project becomes
a Terminable Project in accordance with Section 3.3.

 

(ddddddd)       “Title Commitment” means the Title Commitment for each Project issued by the Title Company, as each such Title
Commitment is identified on the Project Exhibits.

 

    15

     

    

 

 

(eeeeeee)         “Title Company” means (i) with respect to the Projects located in Texas, Colven, Tran & Meredith, P.C.,
as an agent for Title Partners, LLC, (ii) with respect to the Projects located in Oklahoma, Chicago Title Oklahoma Co., and (iii) and
with respect to the Projects located in Louisiana, Bienville Title Insurance Agency, Inc.

 

(fffffff)              “Title
Policy” or “Title Policies” means the policy or policies of title insurance for each Project to be issued
by the Title Company effective as of the Closing Date, in a form the Title Company irrevocably commits in writing to issue prior to expiration
of the Due Diligence Period. The Parties agree that any condition to Closing regarding the issuance of the Title Policy shall be satisfied
if, subject to Summit’s rights and remedies herewith with respect to intervening liens, the Title Company issues or commits to
issue the Title Policy in the form it commits to issue during the Due Diligence Period.

 

(ggggggg)       “Treasury
Regulations” means the permanent and temporary Treasury Regulations and all amendments, modifications and supplements thereof,
from time to time promulgated by the Department of the Treasury under the Code.

 

(hhhhhhh)       “Venture”
shall have the meaning set forth in the first paragraph of this Agreement.

 

(iiiiiii)                “Venture Contribution” shall have the meaning set forth in the Recitals.

 

(jjjjjjj)               
“WARN Act” shall mean, collectively, all federal, state and local plant closing laws, including the Worker Adjustment
Retraining and Notification Act (29 U.S.C. § 2101, et seq.), as amended.

 

ARTICLE
II

CONTRIBUTIONS AND PURCHASE

 

2.1           Sale
of the Subject Interests by Summit. Subject to the provisions hereof, on the Closing Date:

 

2.1.1       
Newcrest and each applicable Investor shall (or shall cause the Group 1 Project Owners to) contribute a fee simple interest in
each of the Group 1 Projects to Summit in exchange for the Group 1 Consideration;

 

2.1.2       
Each applicable Investor shall contribute the Group 3 Acquired Interests (Newcrest) to Summit in exchange for the Group 3 Newcrest
Consideration;

 

2.1.3       
Summit shall contribute the Group 1 Projects and the Group 3 Acquired Interests (Newcrest) to Master REIT 2;

 

2.1.4       
Summit shall contribute Master REIT 2 and simultaneously with the contribution of the Venture Contribution to the Venture and the
Venture will, in turn, contribute the Venture Contribution to Master REIT 3;

 

    16 

     

    

 

2.1.5       
 Each applicable Investor shall (or shall cause the Group 2 Project Owners to) sell a fee simple interest in each of the Group
2 Projects to Master REIT 3 in exchange for the Group 2 Consideration;

 

2.1.6       
Master REIT 3 shall contribute the Group 3 Cash Consideration and Master REIT 2 shall contribute the Group 3 Acquired Interests
(Newcrest) to SubJV; and

 

2.1.7       
Each applicable Investor shall sell the Group 3 Acquired Interests (Investor) to SubJV in exchange for the Group 3 Cash Consideration.

 

2.2           Required
Transfer Documents. The Required Transfer Documents to be executed and delivered on the Closing Date are set forth on the Project
Exhibits.

 

2.3           Federal
Income Tax Treatment.

 

2.3.1       
The Parties agree that, for federal income tax and any applicable state income tax purposes, the transactions contemplated by this
Agreement and the First Amendment to Venture Agreement shall be treated as follows: (i) a contribution by each applicable Investor (for
itself or on behalf of each applicable Project Owner) of the Group 1 Projects to Summit in exchange for the Group 1 Consideration pursuant
to Section 721 of the Code; (ii) a contribution by Newcrest of the Group 3 Acquired Interests (Newcrest) to Summit in exchange for the
Group 3 Newcrest Consideration pursuant to Section 721 of the Code; (iii) a contribution by Summit of the Group 1 Projects and the Group
3 Acquired Interests (Newcrest) to Master REIT 2 pursuant to Section 351 of the Code; (iv) immediately after the contributions to be made
pursuant to Sections 2.3.1(i)-(iii) and simultaneously with each other (a) a contribution by Summit of Master REIT 2 to the Venture
pursuant to Section 721 of the Code; and (b) a contribution of the Venture Contribution to the Venture pursuant to Section 721 of the
Code; (v) a contribution by the Venture to Master REIT 3 of the Venture Contribution pursuant to Section 351 of the Code; (vi) a taxable
purchase of the Group 2 Projects by Master REIT 3 from the Group 2 Project Owners in exchange for the Group 2 Consideration; (vii) immediately
after the transactions to be made pursuant to Sections 2.3.1(iv)-(vi), and simultaneously with each other, (a) a contribution of
the Group 3 Cash Consideration from Master REIT 3 to SubJV pursuant to Section 721 of the Code and (b) a contribution of the Group 3 Acquired
Interests (Newcrest) pursuant to Section 721 of the Code; and (viii) a taxable purchase of the Group 3 Acquired Interests (Investor) by
SubJV from each applicable Investor in exchange for the Group 3 Cash Consideration in a transaction described in Rev. Rul. 99-6, Situation
1.

 

2.3.2       
No party shall take any action or filing position inconsistent with this Section 2.3 unless otherwise required by law
in a proceeding of final determination.

 

2.4           Acknowledgement.
The Investor hereby acknowledges and agrees that the transactions contemplated by this Agreement will not cause a violation of Section
2.08(b) of the Venture Agreement.

 

    17 

     

    

 

2.5           Earnest
Money Deposit.

 

2.5.1        
Within two (2) Business Days of the Effective Date, the Venture shall cause Master REIT 3 to deliver to Escrow Agent, in escrow, the
amount of Six Million and 00/100 Dollars ($6,000,000.00) (the “Initial Deposit”), by wire transfer of immediately
available funds, pursuant to Escrow Agent’s wire instructions set forth on Schedule 2.8 attached hereto and made a part
hereof. On or before the expiration of the Due Diligence Period, provided, that Summit desires to proceed with the
transaction and this Agreement is not terminated, the Venture shall cause Master REIT 3 to deliver to Escrow Agent, in escrow, the
amount of Six Million and 00/100 Dollars ($6,000,000.00), by wire transfer of immediately available funds, pursuant to Escrow
Agent’s wire instructions (the “Additional Deposit”; together with the Initial Deposit and any interest
accrued thereon, the “Earnest Money Deposit”). The Earnest Money Deposit shall be held and disbursed by Escrow
Agent in accordance with this Agreement. This provision shall survive the termination of this Agreement. 2.5.2 The Earnest Money
Deposit shall be held by the Escrow Agent pursuant to this Agreement in a separate, interest-bearing account with a federally
insured commercial bank or other financial institution mutually acceptable to Summit and Investor, as security for Summit’s
performance of its obligations under this Agreement. The Earnest Money Deposit shall not be withdrawn from such account unless and
until it is to be delivered to Investor or Summit pursuant to the provisions of this Agreement. Any interest earned on the Earnest
Money Deposit shall be delivered to the party receiving the Earnest Money Deposit.2.5.3 At the Closing, the Earnest Money Deposit
and the interest earned thereon shall be paid to Investor and the Earnest Money Deposit shall be credited as partial payment of the
Purchase Price.

 

2.6           Consideration.

 

2.6.1       
The Group 1 Projects will be contributed to Summit OP in exchange for an aggregate value of $369,000,000 consisting of 15,314,494
Common Units, the applicable cash proceeds and the assumption by Summit of the Assumed Debt applicable to the Group 1 Projects (the “Group
1 Consideration”). For purposes of calculating amounts of cash in this Section 2.6.1 and in Section 2.6.3, each Common Unit
shall be deemed to have a value of $10.0853 and each Series Z Preferred Unit shall be deemed to have a value of $25.00.

 

2.6.2       
The Group 2 Projects will be sold to Master REIT 3 in exchange for an aggregate value of $184,000,000 consisting cash less the
amount of the Assumed Debt applicable to the Group 2 Projects (the “Group 2 Consideration”).

 

2.6.3       
The Group 3 Project Owners will be contributed in part, and sold in part, to Summit and SubJV in exchange for an aggregate value
of $269,000,000 consisting of 550,180 Common Units, 2,000,000 Series Z Preferred Units, and the remainder in cash and the amount of the
Assumed Debt applicable to the Group 3 Projects.

 

Provided, however, that
if any Project is removed from this Agreement pursuant to the terms of Section 3.3 hereof, the amount of consideration
attributable to the applicable group shall be reduced in a manner agreed to by the Parties, taking into account the allocation of
consideration among the Projects within such group. Notwithstanding anything to the contrary contained in Section 8.04(a) of the
Partnership Agreement, Investor shall be entitled to exercise the Common Unit Redemption Right (as defined in the Partnership
Agreement) with respect to (i) 991,542 Common Units at any time after a registration statement with respect to the shares of Summit
REIT common stock issuable upon redemption of such Common Units in accordance with Section 8.04 of the Partnership Agreement becomes
effective in accordance with the Securities Act and (ii) 14,873,132 Common Units at any time after the date that is six (6) months
after the Closing Date.

 

    18 

     

    

 

2.7           Allocation of Purchase Price. The Parties agree that the Purchase Price shall be allocated among the Projects as set forth
in Exhibit D (each, an “Allocated Purchase Price”), which Schedule shall also reflect the amount of (i) the
Assumed Debt, (ii) the value attributable to the cash consideration, and the value attributable to the common and preferred units, all
subject to adjustment as further provided for herein. If and to the extent necessary, the Parties also agree that the Allocated Purchase
Price for each Project will be further allocated between the real property and the personal property for each such Project, solely for
purposes of calculating any sales or documentary stamp or similar transfer taxes at the Closing. The provisions of this Section 2.7
shall survive the Closing. For the avoidance of doubt, the Parties agree to allocate the Group 2 Consideration and the Group 3 Cash Consideration
among the Group 2 Projects and the portion of the Group 3 Projects represented by the Group 3 Acquired Interests (Investor), respectively,
in accordance with Section 1060 of the Code and the Treasury Regulations thereunder (and any similar provision of state or local laws).

 

ARTICLE
III

PRORATIONS AND EXPENSES

 

3.1           Adjustments
and Prorations.

 

3.1.1       
Certain items of income and expense in respect of the Projects shall be prorated (on a per diem basis) or adjusted between Summit
and Investor as of the Cut-Off Time. For purposes of these prorations and adjustments, except as otherwise expressly set forth in this
Article 3, all items of income and expense of each Project with respect to the period prior to the Cut-Off Time shall be for the account
of Investor, and all items of income and expense of each Project with respect to the period after the Cut-Off Time shall be for the account
of Summit. The items to be prorated and methods to calculate such prorated amounts are set forth in Schedule 3.1 attached hereto
and made a part hereof, and shall be reflected on the Settlement Statement.

 

3.1.2        Not
later than five (5) Business Days prior to the Closing Date (the “Proration Date”), Escrow Agent shall prepare,
and promptly thereafter Summit, Newcrest and Investor shall jointly agree upon, the Settlement Statement that shows the net amount
due either to Summit, on the one hand, or Newcrest and Investor, on the other hand, as the result of the adjustments and prorations
provided for in this Section 3.1.2 and Schedule 3.1 of this Agreement, and such net due amount shall be added to or
subtracted from the cash balance of the Purchase Price to be paid by Summit to Investor at the Closing, as applicable. Within one
hundred eighty (180) days after the Closing Date, Summit and Investor shall true-up such adjustments and prorations, as necessary,
and jointly agree to the final determination of such adjustments and prorations provided for in Section 3.1.1 and setting
forth any items that are not capable of being determined at such time (and the manner in which such items shall be determined and
paid). The net amount due Summit or Investor, if any, by reason of adjustments to the Settlement Statement, shall be paid in cash by
the party obligated therefor within five (5) Business Days following that party’s receipt of the mutually approved final
Settlement Statement pursuant to this Section 3.1.2. Prior to and following the Closing Date, each party shall provide the
other with such information as the other shall reasonably request (including, without limitation, access to the books, records,
files, ledgers, information and data with respect to the Projects during normal business hours upon reasonable advance notice) in
order to make the preliminary and final adjustments and prorations provided for herein.

 

    19 

     

    

 

3.1.3       
This Section 3.1 shall survive the Closing until fully performed in accordance with its terms.

 

3.2           Expenses. In connection with the Closing:

 

3.2.1       
Except as otherwise provided in this Section 3.2, the Parties shall share and apportion all of the costs and expenses associated
or incurred in connection with the transfer of the Projects and the Subject Interests (including, without limitation, transfer taxes,
title and escrow fees, recordation, transfer, stamp and similar taxes, title premiums and endorsement costs (including non-imputation),
and survey costs) in accordance with local custom, and in the absence of local custom, such costs and expenses shall be shared equally
by the Parties unless otherwise mutually agreed by the Parties. For the purposes of this Section 3.2.1, the Parties agree that
the local custom in each State where a Project is located is as follows: (i) in Texas, Investor is responsible for all of the foregoing
costs, except that purchaser is responsible for recordation and filing fees (other than any and all costs associated with the recordation
of documents necessary to remove liens and other encumbrances which are the responsibility of seller, but including recordation of any
Assignment of Ground Lease), (ii) in Oklahoma, the foregoing costs are shared equally, except that seller is responsible for all transfer
taxes, and (iii) in Louisiana, the purchaser is responsible for all of the foregoing costs, except that Investor is responsible for all
transfer taxes payable in Orleans Parish and any and all costs associated with the recordation of documents necessary to remove liens
and other encumbrances (including without limitation the recordation of the Assignment of Ground Lease) and Purchaser is responsible for
any double or increased transfer taxes resulting from the stepped nature of the transaction as described in the Recitals hereto.

 

3.2.2       
Summit shall pay all costs of any third party investigative reports obtained during the Due Diligence Period, and the fees and
expenses of Summit’s legal counsel related to the preparation and negotiation of this Agreement and the Required Transfer Documents.
Summit shall also pay any and all costs and expenses (including the reasonable fees of consultants hired pursuant to Section 4.1
below) related to any required defeasance or yield maintenance or other prepayment penalties or fees in connection with the Courtyard
Amarillo and Holiday Inn Express Grapevine.

 

3.2.3       
Investor shall pay the fees and expenses of Investor’s legal counsel related to the preparation and negotiation of this Agreement
and the Required Transfer Documents, and all of Investor’s advisory and consultant fees and expenses.

 

3.2.4       
This Section 3.2 shall survive the Closing.

 

    20 

     

    

 

3.3           All or Nothing Transaction.

 

3.3.1       
Summit acknowledges and agrees that Investor would not execute and deliver this Agreement or agree to provide to Summit the exclusivity
provided in Section 11.17 below without Summit’s covenant and agreement to acquire all of the Projects. Consequently, subject
to this Section 3.3, Summit will, if Summit elects to proceed to Closing following expiration of the Due Diligence Period, acquire
all of the Projects; provided, however, notwithstanding the foregoing or anything to the contrary herein, Summit may terminate
this Agreement as to a specific Project in accordance with this Section 3.3 only if (a) a condemnation is reasonably expected to
have a Material Adverse Effect on such Project, or (b) (1) the cost to repair the damage or (2) the condemnation claim, in each case,
is reasonably estimated to equal or exceed the Casualty and Condemnation Termination Threshold pursuant to the terms and provisions of
Section 9.14 (each a “Terminable Project”); provided, that if Summit elects to terminate this Agreement
as to a specific Project that is part of one of the following campuses, then Summit shall be deemed to have elected to terminate this
Agreement as to all Projects that are part of each such campus: (A) Grapevine – Hilton Garden Inn and Courtyard/TownePlace Suites,
(B) Dallas Downtown – Hampton Inn & Suites, AC/Residence Inn and Dallas Parking Garage, (C) Frisco – AC/Residence Inn,
Canopy and Frisco Parking Garage, and (D) Oklahoma City Bricktown – AC and Hyatt Place. If Summit elects to terminate this Agreement
with respect to a Terminable Project pursuant to this Section 3.3, Summit will terminate the Agreement (with respect to such Project)
by delivery to Investor and Escrow Agent of written notice of termination, and at the Closing the Purchase Price will be reduced by the
Terminable Project Adjusted Purchase Price in accordance with the Column II Adjustments.

 

3.3.2       
In addition, if the condition described in Section 9.11 related to the Tax Incentive Projects is not satisfied by the Closing
Date, then, (i) solely with respect to Embassy Suites Amarillo (i.e., the Project reflected on Exhibit A-14), Investor shall have
the right, in its sole discretion, to, upon delivery of written notice to Summit delivered no later than three (3) Business Days prior
to the Closing Date, (a) terminate this Agreement as to Embassy Suites Amarillo for the Purchase Price adjusted as shown in the Column
II Adjustments, or (b) force the sale of Embassy Suites Amarillo for the Purchase Price shown in the Column III Adjustments, (ii) solely
with respect to Hilton Garden Inn Grapevine (i.e., the Project reflected on Exhibit A-16), if the Financial Incentives cannot be
assigned to Summit at Closing in accordance with Section 9.1, Summit shall be obligated to close on Hilton Garden Inn Grapevine
for the Allocated Purchase Price shown in numeric Column I on Exhibit D, and (iii) with respect to the other Tax Incentive Projects,
if and to the extent the Financial Incentives and/or Key Money cannot be assigned to Summit at Closing in accordance with Section 9.1,
Summit shall close such Tax Incentive Projects for the Purchase Price adjusted as shown in the Column III Adjustment.

 

    21 

     

    

 

ARTICLE
IV

conditions to CLOSING; closing DELIVERIES

 

4.1           Closing.
Subject to the terms of this Agreement, the Closing shall take place through an escrow arrangement with Escrow Agent on or before January
13, 2022, time being of the essence (the “Closing Date”), provided, that, (i) if legislation is passed prior
to the Closing Date allowing for more favorable ownership of the Projects in part with capital contributions from Historic Tax Credits,
as further described in Section 9.11, by REITs, then Summit shall have a one-time right to extend the Closing Date for up to fifteen
(15) days in order to restructure the transactions contemplated hereby to preserve such Historic Tax Credits and effectuate the assignment
and assumption of the (or entering into new) Historic Tax Credit Documents; and any cost savings in connection with the foregoing restructure
shall be shared equally by the Parties, provided, that, for the avoidance of doubt, Investor shall have no right to any tax credits,
benefits or savings relating to the Historic Tax Credits from and after the Closing Date; (ii) if the condition in Section 4.6(h)
is not satisfied (or waived in writing) prior to, or shall not be satisfied simultaneously with the Closing Date; (iii) should any
of the conditions described in Sections 4.2 or 4.4 (other than Sections 4.2.2, 4.4.3 and 4.4.4) not
be satisfied (or waived in writing by the Party in whose favor the condition runs), then in the case of clause (i) Summit, or in the
case of clause (ii) or (iii) either Party, by written notice to the other Party given no later than the date which is two (2) Business
Days prior to the Closing Date, may extend the Closing Date for up to fifteen (15) days; (iv) if the Project described in Exhibit
A-22 [Canopy New Orleans] has not been completed, as evidenced by (A) a certificate of occupancy (or its equivalent) from the City
of New Orleans (or other necessary municipality), together with any additional evidence of completion required by the City or such other
municipality, and (B) a written authorization to open from Hilton (or its Affiliate), then either party shall have the right to extent
the Closing Date with respect to such Project until completion has occurred; and (v) if the Assumed Debt with respect to the Project
described in Exhibit A-11 [Holiday Inn Express Grapevine] is unable to be defeased on or prior to the Closing Date, provided,
that (A) Newcrest has executed an engagement letter with Chatham to commence the defeasance process, (B) Newcrest shall promptly provide
such consultant with any requested materials and use commercially reasonable efforts to continuously process and complete such defeasance
in accordance with this Section 4.1 and such letter, and (C) Newcrest shall provide Summit with periodic progress reports, in
writing (which writing may be via Email in accordance with Section 11.1), then Investor shall have the right to extend the Closing
Date with respect to such Project for a reasonable period as mutually agreed upon by the Parties for the sole purpose of effectuating
the defeasance.

 

4.2           Summit’s
Conditions to Closing. Subject to Section 4.1, the obligation of Summit to consummate the Closing shall be subject
to the satisfaction of each of the following conditions, any or all of which may be waived in writing in whole or in part by Summit:

 

4.2.1           Each
of Investor’s representations and warranties set forth in this Agreement shall be true and correct in all material respects as
of the Closing Date (provided, that if any representation and warranty speaks as of a particular date or period, it will
continue to speak as of such date or period), provided, that if there are material inaccuracies in such representations and
warranties (as so modified) Investor may at its option elect to attempt to cure such inaccuracies, in which event the Closing Date
shall be extended in accordance with Section 4.1 above for up to fifteen (15) days to allow such condition to be satisfied.
An inaccuracy in Investor’s representations and warranties shall be deemed to be material if it (a) materially adversely
affects Investor’s ability to proceed to the Closing under this Agreement, or (b) requires a modification to
Investor’s representations and warranties that, in the aggregate with all such modifications or updates, has a Material
Adverse Effect. In connection with the foregoing, from and after the Closing Date, if any representation or warranty of Investor is
found to have been untrue or incorrect in any material respect, subject to Sections 8.1 and 8.5, Summit shall have a
claim against Investor under this Agreement and the Ancillary Agreements.

 

    22 

     

    

 

4.2.2          
Investor shall have performed all of its material obligations under this Agreement required to have been performed at or prior
to the Closing, including, without limitation, delivery of the Investor Deliveries; provided, however, while failure to satisfy this condition
if not waived in writing by Summit will constitute a failure to satisfy a condition to the Closing, such failure shall only be deemed
a breach of this Agreement by Investor if Investor fails to deliver the Investor Deliveries described in Sections 4.6(a), (c)
[with respect to Investor only], (d), (e) [with respect to the termination of the Existing Management Agreements and Assignment
of Management Agreement only [with respect to Investor only]], (f), (j) [with respect to Investor only], (k), (m),
(o), (r), (s), (u), (v) and (w).

 

4.2.3          
The Title Company shall be prepared to issue to Summit, immediately upon consummation of the Closing and payment of the premium
therefor, a Title Policy for each Project, subject only to the Permitted Exceptions, in an amount equal to the Allocated Purchase Price
as set forth in Section 2.7 and in Exhibit D.

 

4.2.4          
New Franchise Agreements for each Project shall have been finalized, executed and delivered by each applicable Franchisor on substantially
the same terms and conditions as the Existing Franchise Agreements, and otherwise in form and substance acceptable to Summit.

 

4.2.5          
There is no litigation or court order seeking to restrain the Parties from closing this transaction on the Closing Date.

 

4.3           Failure
of Summit’s Conditions to Closing; Investor Default.

 

4.3.1          
Subject to Section 4.1, unless such condition is waived in writing by Summit, if any condition set forth in Section 4.2
is not satisfied, then Summit, by delivery of written notice to Investor within three (3) Business Days of the Closing Date, shall be
entitled to terminate this Agreement and Master REIT 3 shall receive a return of the Earnest Money Deposit. Upon return of the Earnest
Money Deposit to Master REIT 3 pursuant to this Section 4.3.1, this Agreement shall terminate and neither party shall have
any further obligations or liabilities to the other party, except for obligations that expressly survive termination of this Agreement.

 

4.3.2           If
this transaction fails to close exclusively due to a breach or default by Investor, then Summit may either, as Summit’s sole
and exclusive remedy, at its election, (a) terminate this Agreement and Master REIT 3 shall receive a return of the Earnest Money
Deposit and Investor shall reimburse Summit its actual and verified third-party costs and expenses (including, without limitation,
reasonable attorney’s fees and expenses and all costs and expenses incurred by Summit’s Agents (as defined in the Access
Agreement)), incurred by Summit in connection with this transaction not to exceed Three Million and 00/100 Dollars ($3,000,000.00)
(“Summit’s Expense Reimbursement”), or (b) commence appropriate legal proceedings seeking to enforce
Investor’s obligation to convey the Projects through specific performance (including the right to file/record a lis
pendens with respect to each Project in connection with the filing of such specific performance action), provided (i)
Summit has delivered to Escrow Agent and Title Company the documents, instruments and other items required to be delivered by Summit
at the Closing, including immediately available funds on account of the Purchase Price, together with an unconditional written
instruction to proceed to the Closing, and (ii) such proceeding is commenced within forty-five (45) calendar days after the date
Investor receives notice of default from Summit.

 

    23 

     

    

 

4.3.3          
Notwithstanding the provisions of Section 4.3.2 or anything to the contrary contained herein, if the remedy of specific
performance is not available to Summit due to intentional breach of this Agreement by entering into an agreement to sell any Project (or
consummating the sale of any Project) to another party (including, without limitation, Investor’s breach of Section 11.17),
then Summit shall have all remedies available at law or in equity, including, without limitation, payment of Summit’s Expense Reimbursement.

 

4.4           Investor’s
Conditions to Closing. Subject to Section 4.1, the obligation of Investor to consummate the Closing shall be subject
to the satisfaction of each of the following conditions, any or all of which may be waived in writing in whole or in part by Investor:

 

4.4.1          
Each of Summit’s representations and warranties set forth in this Agreement shall be true and correct in all material respects
as of the Closing Date; provided, that if there are material inaccuracies in such representations and warranties (as so modified)
Summit may at its option elect to attempt to cure such inaccuracies, in which event the Closing Date shall be extended in accordance with
Section 4.1 above for up to fifteen (15) days to allow such condition to be satisfied. An inaccuracy in Summit’s representations
and warranties shall be deemed to be material if it materially adversely affects Summit’s ability to proceed to the Closing under
this Agreement. In connection with the foregoing, from and after the Closing Date, if any representation or warranty of Summit is found
to have been untrue or incorrect in any material respect, subject to Sections 8.1 and 8.5, Investor shall have a claim against
Summit under this Agreement and the Ancillary Agreements.

 

4.4.2          
Each of Summit’s representations and warranties set forth in this Agreement shall be true and correct in all material respects
as if made by Summit’s Designee as of the Closing Date; , provided, that if there are material inaccuracies in such representations
and warranties (as so modified) Summit may at its option elect to attempt to cure such inaccuracies, in which event the Closing Date shall
be extended in accordance with Section 4.1 above for up to fifteen (15) days to allow such condition to be satisfied. An inaccuracy
in Summit’s representations and warranties shall be deemed to be material if it materially adversely affects Summit’s ability
to proceed to the Closing under this Agreement.

 

4.4.3           Summit
shall have performed all of its material obligations under this Agreement required to have been performed at or prior to the
Closing, including, without limitation, delivery of the Summit Deliveries; provided, however, while failure to satisfy this
condition if not waived in writing by Summit will constitute a failure to satisfy a condition to the Closing, such failure shall
only be deemed a breach of this Agreement by Summit if Summit fails to deliver the Summit Deliveries described in Sections
4.7(a), (c), (e), (f), (g), (h), (i), (j), (k), (l), and (m)
subject to the extension right set forth in Section 4.1.

 

    24 

     

    

 

4.4.4          
There is no litigation or court order seeking to restrain the Parties from closing this transaction on the Closing Date.

 

4.5           Failure
of Investor’s Conditions to Closing; Summit Default. If Summit defaults in its obligation to proceed to the Closing
in accordance with this Agreement, then the Escrow Agent shall pay the Earnest Money Deposit to Investor, as full and complete liquidated
damages, and as the exclusive and sole right and remedy of Investor. Upon payment of the Earnest Money Deposit to Investor pursuant to
this Section 4.5, this Agreement shall terminate and neither party shall have any further obligations or liabilities to the other
party, except (a) for obligations that expressly survive termination of this Agreement, and (b) Summit shall be solely responsible
for any escrow cancellation or termination fees. THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, PRIOR
TO SIGNING THIS AGREEMENT, THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY INVESTOR IF SUMMIT FAILS TO PERFORM ITS OBLIGATIONS UNDER THIS
AGREEMENT. THEREFORE, BY SEPARATELY INITIALING THIS SECTION 4.5 BELOW, THE PARTIES ACKNOWLEDGE THAT THE AMOUNT OF THE EARNEST MONEY
DEPOSIT HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF INVESTOR’S DAMAGES AND NOT A PENALTY,
AND SHALL BE INVESTOR’S SOLE AND EXCLUSIVE REMEDY AGAINST SUMMIT IF SUMMIT DEFAULTS IN ITS OBLIGATION TO PROCEED TO CLOSING IN
ACCORDANCE WITH THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, IN NO EVENT SHALL THIS SECTION 4.5 LIMIT THE DAMAGES RECOVERABLE
BY INVESTOR AGAINST SUMMIT DUE TO SUMMIT’S OBLIGATION TO INDEMNIFY INVESTOR IN ACCORDANCE WITH THIS AGREEMENT OR BY REASON OF SUMMIT’S
OBLIGATION TO PAY INVESTOR THE PREVAILING PARTY’S ATTORNEYS’ FEES AND COSTS PURSUANT TO SECTION 11.8. BY THEIR SEPARATELY
INITIALING THIS SECTION 4.5 BELOW, SUMMIT AND INVESTOR ACKNOWLEDGES THAT IT HAS READ AND UNDERSTOOD THE ABOVE PROVISION COVERING
LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION
AT THE TIME THIS AGREEMENT WAS EXECUTED.

 

Investor’s
Initials:                             
Summit’s Initials:                     

 

4.6           Investor’s Closing Deliveries. Investor shall deliver or (in the case of clauses (c), (h) and (i)) use commercially
reasonable efforts to) cause to be delivered to Summit or the Title Company on or prior to the Closing Date the following documents (the
 “Investor Deliveries”):

 

(a)              
All of the Required Transfer Documents duly executed by Investor and any Project Owner, to the extent same shall not have been
previously filed and/or delivered;

 

(b)              
[intentionally omitted];

 

    25 

     

    

 

(c)              
 The Loan Assumption Agreement with respect to the Assumed Debt in accordance with Section 9.13, executed by Investor and
the applicable Lender;

 

(d)              
The affidavit referred to in Section 1445 of the Code with all pertinent information confirming that Investor is not a foreign
person, trust, estate, corporation or partnership duly executed by Investor;

 

(e)              
The termination of each of the Existing Management Agreements, true, correct and complete copies of each of the new Management
Agreements and an Assignment of Management Agreement for each Project, executed by the Existing Manager and Project Manager, as applicable,
all in accordance with Section 9.9.1;

 

(f)               
To the extent required pursuant to Section 9.10, an Interim Liquor Agreement, duly executed by Investor and/or Liquor Licensee,
as applicable;

 

(g)              
To the extent assignable, assignments of the Construction Warranties;

 

(h)              
Subject to Section 4.1, reasonable evidence of the termination of all Historic Tax Credit Documents;

 

(i)                
Subject to Sections 3.3, the assignment of the Financial Incentives and Key Money related to the Tax Incentive Projects
in accordance with Section 9.11;

 

(j)                
The assignment of all licenses required to maintain the service of Starbucks coffee in the Projects set forth in Exhibits A-1
[AC Hotel Houston Downtown], A-10 [Hampton Inn & Suites Dallas Downtown] and A-21 [AC Hotel/Residence Inn Frisco], and
Investor shall use reasonably commercial efforts to obtain the consent of Starbucks thereto as and to the extent required under each such
license but such consent shall not be a closing condition;

 

(k)              
A copy of the completed audit of the financials in compliance with Form 8-K under the Securities Exchange Act of 1934, as amended,
and with Registration S-K (including, without limitation, Rule 3-05);

 

(l)                
Delivery of (a) the Ground Lease Consent, (b) each Ground Lease Estoppel, and (c) an assignment and assumption of each Ground Lease
conveying the applicable Project Owner’s interest under each Ground Lease, substantially in the form attached to or required by
the applicable Ground Lease or otherwise as be reasonably agreed to by Investor, Summit and each Ground Lessor prior to the expiration
of the Due Diligence Period, with such modifications as are required by the terms of the Ground Lease or local law so that such assignment
and assumption will be in recordable form (the “Assignment of Ground Lease”), duly executed and acknowledged by the
applicable Project Lessee and dated as of the Closing Date;

 

(m)            
The termination of the Ground Lease with respect to the Project described in Exhibit A-10 [SpringHill Suites Dallas Downtown],
and Exhibit A-11 [Holiday Inn Express Grapevine];

 

(n)              
[intentionally omitted];

 

    26 

     

    

 

(o)              
 Delivery of (i) Investor’s estimate of each Project Owner’s tax basis in each Group 1 Project and each applicable
Group 3 Project, and (ii) within sixty (60) days of the Closing Date, Investor shall provide to Summit a final determination of the tax
basis of each Group 1 Project and each applicable Group 3 Project, which obligation in this Section 4.6(p)(ii) shall survive the
Closing but shall not be a condition to the Closing;

 

(p)              
The following with respect to each Group 3 Project Owner: (i) a good standing certificate from the state of its formation and the
state where its Project is located dated within fifteen (15) Business Days of the Closing Date; and (ii) a certified copy of its Formation
Document;

 

(q)              
The following with respect to Investor: (i) a good standing certificate from the state of its formation dated within fifteen (15)
Business Days of the Closing Date; and (ii) a resolution by those parties having managerial control over Investor authorizing the transactions
contemplated by this Agreement and the Ancillary Agreements;

 

(r)               
Investor shall deliver (or cause to be delivered) to the Title Company the following title affidavits and indemnities, for the
sole benefit of the Title Company, in such form as may be reasonably required by the Title Company and approved by Investor: (i) an owner’s
affidavit from each Project Owner in order to issue the Title Policies (the “Owner’s Affidavit”); (ii) a non-imputation
endorsement affidavit (to the extent available in the applicable jurisdiction) from a person or entity acceptable to the Title Company
in order to issue the Title Policies for the Group 3 Projects; and (iii) all other affidavits, authorizations, other documents or assurances
reasonably requested by the Title Company;

 

(s)               
Any tax declarations or similar documents required in connection with any transfer, stamp, excise or similar tax imposed by the
state, county or city in connection with the transaction, duly executed by Investor and dated as of the Closing Date;

 

(t)                
[intentionally omitted;]

 

(u)              
An executed copy of the Settlement Statement;

 

(v)              
IRS Form W-9, or the applicable IRS Form W-8; and

 

(w)            
A Tax Protection Agreement duly executed by the applicable Investors, substantially in the form mutually agreed-to between the
Parties on or about the Effective Date.

 

4.7             
Deliveries to be Made by Summit on the Closing Date. Summit shall deliver or cause to be delivered to Investor or the Title
Company on the Closing Date (or such other date as provided below) the following (the “Summit Deliveries”):

 

(a)              
All of the Required Transfer Documents duly executed by Summit, if and to the extent any are required to be executed by Summit;

 

(b)              
[intentionally omitted;]

 

(c)              
To the extent required pursuant to Section 9.10, an Interim Liquor Agreement, duly executed by Summit (or Summit’s
Designee);

 

(d)              
 Each Assignment of Ground Lease duly executed and acknowledged by Summit (or Summit’s Designee) and dated as of the Closing
Date;

 

    27 

     

    

 

(e)              
Summit shall deliver the balance of the Purchase Price, as debited and credited pursuant to Article III, and as adjusted
pursuant to Section 3.3, to Escrow Agent by wire transfer on or before 2:00 p.m. Central time on the Closing Date;

 

(f)               
Any tax declarations or similar documents required in connection with any transfer, stamp, excise or similar tax imposed by the
state, county or city in connection with the transaction, duly executed by Summit and dated as of the Closing Date;

 

(g)              
The Tenth Amendment duly executed by the general partner of Summit OP substantially in the form agreed-to between the Parties on
or about the Effective Date;

 

(h)              
A Tax Protection Agreement duly executed by Summit REIT and Summit OP, substantially in the form agreed-to between the Parties
on or about the Effective Date;

 

(i)                
A Registration Rights Agreement with respect all of the Common Units issued as part of the Purchase Price duly executed by Summit
Hotel Properties, Inc. (“Summit REIT”), in the form mutually agreed-to by the Parties prior to the expiration of the
Due Diligence Period;

 

(j)                
A Director Nomination Agreement duly executed by Summit REIT, in the form mutually agreed-to by the Parties prior to the expiration
of the Due Diligence Period;

 

(k)              
One or more physical certificates representing all of the Common Units issued as part of the Purchase Price;

 

(l)                
One or more physical certificates representing all of the Preferred Units issued as part of the Purchase Price; and

 

(m)            
an executed copy of the Settlement Statement.

 

4.8             
Additional Property Transfer Items. In addition to the Investor Deliveries described in Section 4.6, at the Closing,
Investor will provide to Summit or make available at each Project the following:

 

(a)              
All Books and Records; and

 

(b)              
To the extent within the possession of Investor or held at the Property, original counterparts of the assignable Permits and the
Assumed Contracts, and if not within the possession of Investor or held at the Property, copies of such Permits and Assumed Contracts
with the originals to following with ten (10) Business Days of the Closing Date, which obligation shall survive Closing.

 

    28 

     

    

 

ARTICLE
V

REPRESENTATIONS
AND WARRANTIES OF INVESTOR

 

5.1          Except as set forth on the Disclosure Schedule, Investor (and for the avoidance of doubt, each Investor is solely making representations
and warranties with respect to its ownership of the Subject Interests and/or Projects owned by each such Investor, as applicable) represents
and warrants to Summit as follows:

 

5.1.1       
Personal Property. As of the Closing, each of the Investor Parties will own its Personal Property free and clear of any
liens other than any Permitted Encumbrances.

 

5.1.2       
Litigation. Except as disclosed on the Disclosure Schedule, neither Investor nor any Investor Party has received written
notice of any (a) action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding pending or threatened
in writing against any Investor Party or any Project, or (b) pending or threatened in writing condemnation or eminent domain proceedings,
tax appeals (whether against an Investor Party or any Project), tax assessments, or zoning changes from the zoning existing as of the
Effective Date; provided, that for the avoidance of doubt, in connection with Section 4.2.1, in the event that Investor
is unable to update the foregoing representation on the Closing Date, then, subject to Sections 3.3 and 9.14, such claim
shall not give Summit the right to terminate the Agreement.

 

5.1.3       
Compliance with Laws. Except as provided in the New ESAs, New PCAs or New PZRs with respect to the Projects or as otherwise
set forth on the Disclosure Schedule, neither Investor nor any Investor Party has received written notice (a) of the failure to comply
with any Laws of any Authority or any Permit pertaining to the ownership, use or occupancy of any Projects which notice has not been fully
complied with by the applicable Investor Party, or (b) that a Project or any portion thereof is not in compliance with all applicable
Laws, except for such violations and failures to comply, if any, which have been remedied, in each case, where such failure to comply
or cure has a material or adverse effect on the applicable Project. Each Investor Party holds all Permits required for the conduct of
its business as presently conducted and the ownership of its business, properties and assets (including the Projects), and all such Permits
are valid and in full force and effect. To Investor’s Knowledge, the Investor Parties have complied in all material respects with
such Permits.

 

5.1.4       
Employment Matters. Neither Investor nor any Investor Party (A) will have, as of the Closing Date, any employees (whether
full or part time or occasionally), (B) has been subject to or bound by any collective bargaining agreement, union contract or other agreement
or any collective bargaining relationships with any labor organization that will be binding upon a Project or Summit (or its Affiliates)
after Closing; or (C) has had any liability relating to the employment of labor or engagement of non-employee service providers (including,
without limitation, in respect of classification, immigration and work permits, compensation reporting and withholding and payroll taxes).

 

    29 

     

    

 

5.1.5       
 Material Contracts.

 

(a)              
To Investor’s Knowledge, the Existing Service Contracts are all of the Service Contracts applicable to each respective Project
other than contracts entered into by Tenants. No Investor Party has received any notice in writing from any counterparty to an Existing
Service Contract that such Investor Party is in default of any material obligation under such Existing Service Contract which has not
been cured, and to Investor’s Knowledge, none of the counterparties to the Existing Service Contracts are in default of such counterparties’
material obligations thereunder which has not been cured, in each case, which default has or could have a Material Adverse Effect on any
Project.

 

(b)              
The Existing Management Agreements are all of the Management Agreements applicable to each respective Project. No Investor Party
has received any notice in writing from any counterparty to an Existing Management Agreement that such Investor Party is in default of
any material obligation under such Existing Management Agreement which has not been cured, and to Investor’s Knowledge, none of
the counterparties to the Existing Management Agreements are in default of such counterparties’ material obligations thereunder
which has not been cured.

 

(c)              
The Existing Franchise Agreements are all of the Franchise Agreements applicable to each respect Project. To Investor’s Knowledge,
no Investor Party has received any written notice in writing from any counterparty to an Existing Franchise Agreement that such Investor
Party is in default of any material obligation under such Existing Franchise Agreement which has not been cured, and to Investor’s
Knowledge, none of the counterparties to the Existing Franchise Agreements are in default of such counterparties’ material obligations
thereunder which has not been cured.

 

(d)              
To Investor’s Knowledge, the Existing Leases (i) comprise all of the Leases that affect each respective Project and which
are in effect as of the Effective Date; (ii) are in full force and effect, and (iii) have not been further modified, amended or extended,
and there are no defaults or rent delinquencies by the Tenants. No Investor has received any notices of any default by a Project Owner
under any Leases that have not been cured, and, to Investor’s Knowledge, no Tenant is in default of its material obligations thereunder
which has not been cured. No renewal or extension or expansion option or option to lease additional space at any Project has been granted
to Tenants, except as set forth in the applicable Existing Leases. No Tenant under the Leases has an option to purchase any Project or
any portion thereof. Other than as set forth in the applicable Existing Lease, there are (y) no security deposits or tenant improvement
allowances owed to any Tenant under the Existing Leases, and (z) no other leases, rental agreements, licenses, license agreements or other
occupancy agreements with any party in effect that will affect the Project after Closing.

 

(e)              
The agreements securing and evidencing the Assumed Debt are in full force and effect and, upon receipt of the consent of each Lender
in accordance with Section 9.13 hereof, the consummation of the transactions described in this Agreement will not create a default
or entitle any Lender to impose any penalties thereunder.

 

(f)                The
Assumed Financial Incentive Agreements are all of the agreements evidencing the Financial Incentives that will be binding on Summit
or the Projects after the Closing. No Investor Party has received any notice in writing from any counterparty to any Assumed
Financial Incentive Agreement that such Investor Party is in default of any material obligation under such Assumed Financial
Incentive Agreement which has not been cured, and to Investor’s Knowledge, none of the counterparties to any Assumed Financial
Incentive Agreement are in default of such counterparties’ material obligations thereunder which has not been cured.

 

    30 

     

    

 

 

5.1.6       
Insurance. Each insurance policy maintained by an Investor Party with respect to its business of owning, directly or indirectly,
or operating the Project, has been provided in the Company Diligence Website. All such policies are in full force and effect and neither
Investor nor any Investor Party has received any written notice of cancellation with respect to such policies without replacing the same.
No Investor Party is in breach or default with respect to its payment, claims or other material obligations under any insurance policy
it maintains in relation to the Projects.

 

5.1.7       
Environmental. Except as provided in the Disclosure Schedule, an ESA or the New ESAs, neither Investor nor any Investor
Party has received written notice from any Authority or other Person alleging any violation or liability of or by any Investor Party and/or
any Project under any Environmental Law. Except as would not be material to the ownership and operation of any Project, and except as
set forth in an ESA and the New ESAs, to Investor’s Knowledge, no Hazardous Materials (i) are present at and have not been disposed
of or arranged to be disposed of, or (ii) have been released by any Investor Party or, to Investor’s Knowledge, any other Person,
in each case, at or from any Project, in a manner or condition that would reasonably be expected to give rise to liability to Investor
or any Investor Party under Environmental Law; provided, that, for the avoidance of doubt, in connection with Section 4.2.1,
in the event that Investor is unable to update the foregoing representation on the Closing Date, then, subject to Sections 3.3
and 9.14, such claim shall not give Summit the right to terminate the Agreement. There is no remediation, management or cleanup
of Hazardous Materials in, on, at or under any Project that is currently being performed or that is required to be performed by or at
the direction of any Investor Party in order to bring any Project into compliance in all material respects with Environmental Laws.

 

5.1.8       
Investment Company. No Investor Party is an “investment company,” an “affiliated person” of an “investment
company,” or a company “controlled” by an “investment company” as such terms are defined in the Investment
Company Act of 1940, as amended.

 

5.1.9        
[Intentionally Omitted].

 

5.1.10      
[Intentionally Omitted].

 

    31 

     

    

 

5.1.11   
Absence of Certain Developments. Except as expressly contemplated by this Agreement and the Ancillary Agreements, since
the Balance Sheet Date, the Investor Parties have conducted their businesses only in the ordinary course of business and consistent with
past practice and Investor represent that the following statements are true:

 

(a)              with respect to the Group 3 Project Owners, have not declared, set aside, or paid any non-cash distribution or dividend, or any
distribution or dividend that would be payable after the Closing;

 

(b)            other
than in the ordinary course of business consistent with past practice, have not sold, assigned, transferred, leased, licensed, abandoned,
permitted to lapse or otherwise disposed of any of their material property or assets or created any material Encumbrance (other than
a Permitted Encumbrance) on any material property or assets;

 

(c)              with
respect to the Group 3 Project Owners, made or changed any material election, changed any annual accounting period, adopted or changed
any material method of accounting or accounting policies or tax reporting practices, filed any amended tax return, entered into any closing
agreement, settled any claim or assessment, surrendered any right to claim a material refund, offset or other reduction in liability,
consented to any extension or waiver of the limitations period applicable to any claim or assessment, in each case with respect to taxes
relating to any Investor Party that is a member of a Group 3 Project Owner (other than in the ordinary course of business consistent
with past practice);

 

(d)            with
respect to the Group 3 Project Owners, issued, sold, pledged, transferred, assigned, encumbered or otherwise disposed of or authorized
or proposed the issuance, sale, pledge, transfer, assignment, encumbrance or disposal of (A) any of its equity securities, or securities
convertible into or exchangeable for any such equity securities, or granted any options, warrants, or other rights to purchase or obtain
(including upon conversion, exchange or exercise) any of its equity securities or (B) any other securities in respect or, in lieu of,
or in substitution for any of its equity securities outstanding on the date hereof; or

 

(e)              made any material change in its accounting principles, practices or methods except as required by applicable Law or GAAP.

 

5.1.12   
Business Operations. Except as expressly contemplated by this Agreement (including the exhibits and schedules hereto) and
the Ancillary Agreements, the Investor Parties have conducted their business in the ordinary course and consistent with past practice.

 

5.1.13   
Capital Expenditures. Attached as Schedule 5.1.13 is a list of all ongoing capital improvement projects at the Projects
that are budgeted to cost in excess of Five Hundred Thousand and 00/100 Dollars ($500,000.00) per Project.

 

5.2           Except as set forth on the Disclosure Schedule (and except with respect to corporate and formation representations for any Investor
that is an individual), Investor represents and warrants to Summit as follows:

 

5.2.1       
Formation and Authority of Investor.

 

(a)              
Investor is and will be at the Closing a limited partnership, limited liability company or corporation duly formed, validly existing
and in good standing (or the equivalent in the applicable jurisdiction) under the laws of the State of its formation.

 

    32 

     

    

 

(b)              
 Investor has, and will at the Closing have, all necessary power and authority to enter into this Agreement and each Ancillary
Agreement to which it is to be a party, to carry out their respective obligations hereunder and thereunder and to consummate or cause
to be consummated, as applicable, the transactions contemplated hereby and thereby. The execution and delivery by Investor of this Agreement
and each Ancillary Agreement to which it is a party, the performance by Investor of its obligations hereunder and thereunder and the consummation
by Investor of the transactions contemplated hereby and thereby have been approved by all necessary action of Investor.

 

(c)              
This Agreement is and, at the Closing, each Ancillary Agreement delivered at the Closing to which Investor is a party will be,
duly executed and delivered by such party, and (assuming due authorization, execution and delivery by Summit of this Agreement and of
each Ancillary Agreement) this Agreement and such Ancillary Agreements constitute or will constitute, as the case may be, legal, valid
and binding obligations of such party enforceable against such party each in accordance with their respective terms, subject as to enforceability
to the effect of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law). Each person or persons executing this Agreement and of each Ancillary Agreement on behalf of Investor is authorized to do so.

 

(d)              
The execution, delivery and performance of this Agreement and each Ancillary Agreement to which Investor is a party by Investor
do not, and at the Closing will not, and the consummation of the transactions contemplated hereby and thereby will not (a) violate or
conflict with the organizational documents of Investor, (b) conflict with or violate any Law applicable to Investor, or (c) violate any
judgment, order, writ, injunction or decree of any court applicable to Investor.

 

(e)              
The execution, delivery and performance of this Agreement and each Ancillary Agreement to which Investor is a party by Investor,
and the consummation of the contribution transactions contemplated hereby and thereby do not, require any consent, approval, authorization,
license, permit, registration, exemption or other action by, or filing with or notification to, any Authority or any other Person that
has not or will not have been granted or completed (other than any tax exemption filed with respect to transfer taxes at the Closing),
other than the Ground Lease Consent .

 

5.2.2        No
Conflict. The execution, delivery and performance of this Agreement and each Ancillary Agreement by Investor do not and at the
Closing will not and the consummation of the contribution transactions contemplated thereby, will not (a) violate or conflict with
the organizational documents of such party or any Project Owner, (b) conflict with or violate any Law applicable to such party, any
Project Owner, or any Project, (c) except with regard to the Assumed Debt solely as of the Effective Date and not as of the Closing
Date, result in any breach of, or constitute a default (or event that, with the giving of notice or lapse of time, or both, would
become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the
creation of any Encumbrance on any Project pursuant to any contract relating to the Project or to which such party or any Project
Owner is a party or by which a Project is bound, or (d) to Investor’s Knowledge, violate any provision of law, statute, rule
or regulation to which such party or any Project Owner is a party or by which a Project is subject, or violate any judgment, order,
writ, injunction or decree of any court applicable to such party, any Project Owner or any Project which, in each case, would have a
Material Adverse Effect on any Project.

 

    33 

     

    

 

5.2.3       
[Intentionally Omitted].

 

5.2.4       
Subject Interests. As of the Closing Date, Investor (i) is the sole legal and beneficial owner of the Subject Interests,
and such Subject Interests represent the entirety of Investor’s direct and indirect equity interests in the applicable Project Owners;
(ii) has good, valid and marketable title to the Subject Interests, free and clear of any and all Debt and Encumbrances; (iii) has not
transferred, conveyed, assigned, encumbered, sold, pledged, mortgaged or otherwise transferred or granted a lien or security interest
in any of the Subject Interests; and (iv) has no legal obligation to any other Person to sell, transfer or convey any of the Subject Interests
and has not executed any other agreement of sale, option agreement or right of first refusal with respect to the Subject Interests. There
are no issued and outstanding certificates of membership interests evidencing the Subject Interests. There are no restrictions on the
transfer of the Subject Interests other than in connection with the Assumed Debt (as applicable), those contained in this Agreement, the
Ancillary Agreements and those arising from securities Laws. There are no agreements or other obligations or arrangements restricting
the voting transfer or pledge of any of the Subject Interests. Upon consummation of the Closing, the Subject Interests will be owned by
Summit OP, Master REIT 3 or Master REIT 2, as applicable, free and clear of all Encumbrances (other than any Assumed Debt, Encumbrances
imposed by securities Laws, the Permitted Encumbrances or otherwise disclosed herein).

 

5.2.5        OFAC
and Related Matters. Investor has not been, is not, and hereafter will not be, (i) listed on the Specially Designated Nationals
and Blocked Persons List maintained by the Office of Foreign Asset Control, Department of the Treasury (“OFAC”)
pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (the “Order”) and all applicable
provisions of Title III of the USA Patriot Act (Public Law No. 107-56 (October 26, 2001)); (ii) listed on the Denied Persons List
and Entity List maintained by the United States Department of Commerce; (iii) listed on the List of Terrorists and List of Disbarred
Parties maintained by the United States Department of State, (iv) listed on any list or qualification of “Designated
Nationals” as defined in the Cuban Assets Control Regulations 31 C.F.R. Part 515; (v) listed on any other publicly
available list of terrorists, terrorist organizations or narcotics traffickers maintained by the United States Department of State,
the United States Department of Commerce or any other Authority or pursuant to the Order, the rules and regulations of OFAC
(including without limitation the Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International Emergency Economic Powers Act,
50 U.S.C. §§ 1701-06; the unrepealed provision of the Iraq Sanctions Act, Publ. L. No. 101-513; the United Nations
Participation Act, 22 U.S.C. § 2349 as-9; The Cuban Democracy Act, 22 U.S.C. §§ 60-01-10; The Cuban Liberty
and Democratic Solidarity Act, 18 U.S.C. §§ 2332d and 233; and The Foreign Narcotic Kingpin Designation Act, Publ. L.
No. 106-120 and 107-108, all as may be amended from time to time); or any other applicable requirements contained in any enabling
legislation or other Executive Orders in respect of the Order (the Order and such other rules, regulations, legislation or orders
are collectively called the “Orders”); (vi) been investigated or, to Investor’s Knowledge, is being
investigated or is subject to a pending or threatened investigation in relation to any Financial Crimes Compliance Laws (hereinafter
defined) by any law enforcement, regulatory or other governmental agency or has admitted to, or been found by a court in any
jurisdiction to have engaged in, any violation of any Financial Crimes Compliance Laws or been debarred from bidding for any
contract or business, and to Investor’s Knowledge there are no circumstances which are likely to give rise to any such
investigation, admission, finding or disbarment; (vii) engaged in activities prohibited in the Orders; or (viii) convicted, pleaded
nolo contendere, indicted, arraigned or custodially detained on charges involving money laundering or predicate crimes to money
laundering, drug trafficking, terrorist-related activities or other money laundering predicate crimes or in connection with the Bank
Secrecy Act (31 U.S.C. §§ 5311 et seq.). To Investor’s Knowledge, no principal, owner, officer, director
or agent of Investor is currently the subject of any sanctions established under applicable Laws and regulations relating to
bribery, corruption, money laundering or sanctions measures or embargos, or organized or resident in a country or territory that is
the subject of any such sanctions.

 

    34 

     

    

 

5.2.6       
ERISA. Investor is not (i) an “employee benefit plan” as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974 (“ERISA”), which is subject to Title I of ERISA, or a “plan” as defined in
Section 4975(e)(1) of the Code, which is subject to Section 4975 of the Code; (ii) an entity whose assets constitute “plan assets”
of one or more such plans for purposes of Title I of ERISA or Section 4975 of the Code; (iii) a “governmental plan” within
the meaning of Section 3(32) of ERISA, and assets of Investor do not constitute plan assets of one or more such plans; or (iv) an
entity by or with whom transactions are in violation of state statutes regulating investments of and fiduciary obligations with respect
to governmental plans. Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby
will, either alone or in combination with any other event, give rise to any payments or benefits that would be nondeductible by the payor
under Section 280G of the Code or subject to additional Tax to the recipient under Section 4999 of the Code.

 

5.2.7       
Bankruptcy. Investor has not: (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition
in bankruptcy or suffered the filing of any involuntary petition by its creditors, (c) suffered the appointment of a receiver to take
possession of all, or substantially all, of its assets, (d) suffered the attachment or other judicial seizure of all, or substantially
all, of its assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension
or composition to its creditors generally. To Investor’s Knowledge, there are no pending, or threatened in writing, petitions in
bankruptcy, insolvency, reorganization or other similar proceeding, whether voluntary or involuntary, against Investor.

 

5.3           Except
as set forth on the Disclosure Schedule, Investor represents and warrants to Summit as follows:

 

5.3.1        Group
3 Project Owners. The sole asset of each Group 3 Project Owner is its respective Project. Each Group 3 Project Owner owns and at
all times since its formation has owned no assets other than its Project. At all times since such Group 3 Project Owner’s
formation the sole business purpose of such Group 3 Project Owner has been to own and operate its respective Project and such Group
3 Project Owner has conducted no other business or activities. No Group 3 Project Owner has ever had a direct or indirect equity or
other ownership interest in any firm, corporation, partnership or business enterprise.

 

    35 

     

    

 

5.3.2       
Taxes.

 

(a)              
With respect to any Taxes owed by the Group 3 Project Owners with respect to the Project: (A) each Group 3 Project Owner has filed
or will timely file all income and other material Tax Returns pertaining to the ownership or operation of the Projects for periods prior
to the Closing, or has validly extended the due date of any tax returns required to be so filed by it and all such Tax Returns are true,
correct, and complete in all material respects, (B) all Taxes due and payable with respect to the Projects for periods prior to the Closing
will be paid prior to the Closing, (C) none of the Group 3 Project Owners has received from any Authority any written notice of proposed
adjustment, deficiency or underpayment of any Taxes pertaining to the ownership or operation of the Projects, which notice has not been
satisfied by payment or been withdrawn, and to Investor’s Knowledge, there are no claims with respect thereto that have been asserted
or threatened against a Group 3 Owner which have not been satisfied, (D) there are no agreements executed by any Group 3 Project Owner
for the extension of time for the assessment of any Taxes with respect to the Projects, (E) there are no pending audits or appeals of
any Taxes with respect to the Projects, nor any levies, fines, liens or other Encumbrances relating to such Taxes, (F) there are no Liens
on any of the Group 3 Project Owners that arose in connection with any failure (or alleged failure) to pay any tax, and (G) each Group
3 Project Owner has withheld and paid all Taxes required to have been withheld and paid in connection with any amounts paid or owing to
any employee, independent contractor, creditor, stockholder, or other third party, and all Forms W-2 and 1099 required with respect thereto
have been properly completed and timely filed.

 

(b)              
No Group 3 Project Owner will be required to include any item of income in, or exclude any item of deduction from, taxable income
for any taxable period (or portion thereof) ending after the Effective Date as a result of any: (A) change in method of accounting for
a taxable period ending on or prior to the Effective Date; (B) use of an improper method of accounting for a taxable period ending on
or prior to the Effective Date; (C) “closing agreement” as described in Section 7121 of the Code (or any corresponding or
similar provision of state (or District of Columbia), local or non-U.S. income Tax Law) executed on or prior to the Effective Date; (D)
installment sale or open transaction disposition made on or prior to the Effective Date; (E) prepaid amount received or deferred revenue
accrued on or prior to the Effective Date (other than any such amounts to be reflected in the Settlement Statement); (F) election by any
Project Owner or Project Lessee under Section 108(i) of the Code (or any corresponding or similar provision of state (or District of Columbia),
local or non-U.S. income Tax Law); or (G) intercompany transaction or excess loss account described in Treasury Regulations under Section
1502 of the Code (or any corresponding or similar provision of state, local, or non-U.S. income Tax Law).

 

(c)              
Subject to Section 4.1, all Historic Tax Credit Documents shall be terminated on or prior to the Closing Date, and any structuring
put in place with respect to any Historic Tax Credits shall be unwound on or prior to the Closing Date.

 

    36 

     

    

 

5.3.3       
 Data Privacy. None of the Investor Parties has received any written notice of any complaint, investigation, audit or review
from any Person alleging a breach or violation by an Investor Party of applicable Data Privacy Requirements that would have a Material
Adverse Effect on the Projects. To Investor’s Knowledge, the Investor Parties: (A) have not suffered any Data Security Incidents
involving any Personal Information in the possession, custody or control of the Investor Parties or (B) have not been required to notify
any Person of any Data Security Incidents under Data Privacy Requirements, which Incident would, individually or in the aggregate, have
a Material Adverse Effect on the Projects or the Investor Parties.

 

5.3.4       
Permits and Licenses. Each Project has been issued all permits and licenses required to lawfully operate same as it is currently
operated and such permits and licenses remain in full force and effect.

 

5.3.5       
No Indebtedness. Other than the Assumed Debt and as disclosed on the Disclosure Schedule, there are no direct loans between
any Project Owner, on the one hand, and Investor or any other Person, on the other hand, that will remain outstanding after the Closing.

 

5.3.6       
[Intentionally Omitted.]

 

5.3.7       
Securities.

 

(a)           There
are no securities that are convertible into, exchangeable for, or carrying the right to acquire, equity securities (or securities convertible
into or exchangeable for equity securities) of any Group 3 Project Owner, or subscriptions, warrants, options, calls, convertible securities,
pre-emptive, registration or other rights or other arrangements or commitments obligating a Group 3 Project Owner to issue, transfer
or dispose of any of its equity securities or any ownership interest therein. There are no obligations of a Group 3 Project Owner to
repurchase, redeem or otherwise acquire any interests in such Group 3 Project Owner.

 

(b)           Other
than the Subject Interests and the rights and obligations set forth in the Group 3 Project Owner Organizational Documents, there are
no outstanding partnership, profits or other interests of the Group 3 Project Owners. No person or entity has any option or other right
to purchase the Subject Interests, any portion thereof, any other rights or interest in or of the Group 3 Project Owners.

 

(c)           No
Investor Party is subject to any obligation or right (in each case, contingent or otherwise) to purchase or otherwise acquire any LLC
Interests of (or make any other capital contribution to or investment in) any Person except as set forth in this Agreement or the Ancillary
Agreements.

 

5.3.8       
Unlawful Payments. No Group 3 Project Owner has: (a) used any funds for unlawful contributions, gifts, entertainment or
other unlawful expenses relating to political activity, (b) made any direct or indirect unlawful payments to any foreign or domestic governmental
officials or employees from its funds, (c) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payments
of any nature, or (d) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

    37 

     

    

 

5.3.9       
 Bankruptcy. No Investor Party has: (a) made a general assignment for the benefit of creditors, (b) filed any voluntary
petition in bankruptcy or suffered the filing of any involuntary petition by its creditors, (c) suffered the appointment of a receiver
to take possession of all, or substantially all, of its assets, (d) suffered the attachment or other judicial seizure of all, or substantially
all, of its assets, (e) admitted in writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension
or composition to its creditors generally. To Investor’s Knowledge, there are no pending, or threatened in writing, petitions in
bankruptcy, insolvency, reorganization or other similar proceeding, whether voluntary or involuntary, against any Project Owner.

 

5.3.10   
Project Owner Organizational Documents. Investor has provided, on the Company Diligence Website, true, correct and complete
copies of each Group 3 Project Owner Organizational Document, except amendments thereto contemplated as part of the transactions described
in this Agreement and entered into simultaneously with the Closing. As of the Closing (after taking into account amendments executed in
connection with the Closing and effective as of the Closing Date), each Group 3 Project Owner Organizational Document remains unmodified
and in full force and effect. The Group 3 Project Owner Organizational Documents (after giving effect to amendments executed in connection
with the Closing and effective as of the Closing Date) are the only instruments or agreements currently governing the formation and governance
of the Group 3 Project Owners and their organizational operations.

 

5.3.11   
Tax Treatment. Each Group 3 Project Owner is now, and has been at all times since its formation, treated as a disregarded
entity or partnership, and not as an association taxable as a corporation for income tax purposes.

 

5.3.12   
Projects.

 

(a)           With
respect to each Project, the applicable Project Owner has good and marketable fee simple title to (or a ground lessee interest in) such
Project, which shall be free and clear of all Encumbrances as of the Closing Date, except Permitted Encumbrances.

 

(b)          With respect to each Project (i) such Project is free and clear of all liens that secure Debt (other than the Assumed Debt and
the Equipment Leases), (ii) other than Permitted Encumbrances and as set forth in the Existing Franchise Agreements, there are no outstanding
options, rights of first offer or rights of first refusal to purchase or lease any portion of such Project, (iii) as of the Effective
Date, but subject to Section 9.14, to Investor’s Knowledge, no condemnation, eminent domain or rezoning proceeding that would
result in a material interference with the conduct of the business of the applicable Project Owner in substantially the manner currently
conducted is pending with respect to such Project, and (iv) as of the Effective Date, except as disclosed on the Disclosure Schedule and
subject to Section 9.14, no casualty that would result in a material interference with the conduct of the business of the applicable
Project Owner in substantially the manner currently conducted has occurred that has not been fully remediated by restoration of the applicable
Project to substantially the same operating condition as existed prior to the casualty.

 

    38 

     

    

 

5.3.13   
 Books and Records. Investor and the Investor Parties have maintained, or have caused the Investor Parties to maintain,
Books and Records for each Investor Party in accordance with applicable Law and customary business practices. To Investor’s knowledge,
the Books and Records of each Investor Party are complete and accurate in all material respects.

 

5.3.14   
Ownership Chart. The Ownership Chart attached as Schedule 4 is a true, correct and complete illustration of the ownership
of the applicable Investor Parties. Immediately following completion of the Closing, no Investor Party will have any Subsidiaries other
than as shown on the Ownership Chart. The Company Diligence Website contains a true, correct and complete illustration of the ownership
of the Group 1 Project Owners and the Group 2 Project Owners.

 

5.4           Ground
Leases. Investor has provided to Summit a correct and complete copy of each Ground Lease (and all supplements and amendments with
respect thereto). Each Ground Lease is in full force and effect, and neither Investor nor any Project Owner has given or received a written
notice of default that remains uncured under any such Ground Lease.

 

5.5           Investment
Purpose.

 

(a)           Investor has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits
and risks of its contribution of the Projects and Subject Interests to Summit in exchange for, among other things, the Group 1 Consideration,
the Group 2 Consideration, the Group 3 Cash Consideration and the Group 3 Newcrest Consideration, and is capable of bearing the economic
risks of the transactions effectuated pursuant to this Agreement and the Ancillary Agreements for an indefinite period of time.

 

(b)           Investor
is an "accredited investor" as such term is defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended.

 

(c)          Investor
is acquiring Common Units and Series Z Preferred Units solely for its own account for the purpose of investment and not as a nominee
or agent for any other person and not with a view to, or for offer or sale in connection with, any distribution or resale of any thereof.
Investor has no intention of distributing any of the Common Units or Series Z Preferred Units in violation of the Securities Act or any
applicable state securities law and has no arrangement or understanding with any other Persons regarding the distribution of such Common
Units or Series Z Preferred Units in violation of the Securities Act or any applicable state securities law. Investor acknowledges that
there is no public market for the Common Units and Series Z Preferred Units.

 

(d)          Investor
is not obtaining the Common Units or Series Z Preferred Units as a result of any advertisement, article, notice or other communication
regarding such shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any
seminar or any other general solicitation or general advertisement. Investor further acknowledges that Investor has a pre-existing relationship
with Summit.

 

(e)           Investor
acknowledges that Investor has reviewed the Partnership Agreement, the Tenth Amendment and the Summit REIT SEC Filings and has been afforded
(i) the opportunity to ask such questions as Investor has deemed necessary of, and to receive answers from, representatives of Summit
concerning the terms and conditions of the transactions contemplated by this Agreement and the Ancillary Agreements and the merits and
risks of obtaining the Common Units and Series Z Preferred Units; (ii) access to information about Summit REIT and the Operating Partnership
and their respective financial conditions, results of operations, businesses, properties, management and prospects sufficient to enable
it to evaluate the transactions contemplated by this Agreement and the Ancillary Agreements; and (iii) the opportunity to obtain such
additional information that Summit possesses or can acquire without unreasonable effort or expense that is necessary to make an informed
decision with respect to the Common Units and Series Z Preferred Units.

 

    39 

     

    

 

(f)            Neither
Investor, nor any person who for purposes of Rule 506(d) and Rule 506(e) (collectively, the “Bad Actor Rule”) of the
Securities Act beneficially owns or will beneficially own the Common Units or Series Z Preferred Units, is subject to any conviction,
order, judgment, decree, suspension, expulsion or bar described in the Bad Actor Rule.

 

ARTICLE
VI

REPRESENTATIONS AND WARRANTIES OF SUMMIT

 

Summit represents and warrants
to Investor as follows:

 

6.1           Formation
and Authority. Summit is duly formed, validly existing and in good standing under the laws of its state of formation and has, and
will at the Closing have, all necessary power and authority to enter into this Agreement and each Ancillary Agreement to which it is
to be a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.
The execution and delivery by Summit of this Agreement and of each Ancillary Agreement to which it is a party, the performance by Summit
of its obligations hereunder and thereunder and the consummation by Summit of the transactions contemplated hereby and thereby have been
approved by all necessary action of Summit. This Agreement has been, and, at the Closing, each Ancillary Agreement delivered at the Closing
shall be, duly executed and delivered by Summit, and (assuming due authorization, execution and delivery by Investor of this Agreement
and of each Ancillary Agreement) this Agreement and such Ancillary Agreements constitute or will constitute, as the case may be, legal,
valid and binding obligations of Summit enforceable against Summit in accordance with their respective terms, and subject, as to enforceability
to the effect of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at
law). Each person or persons executing this Agreement and of each Ancillary Agreement on behalf of Summit is authorized to do so.

 

6.2           No
Conflict. The execution, delivery and performance by Summit of this Agreement and by Summit of the respective Ancillary
Agreements to which it is a party do not and at the Closing will not (a) violate or conflict with the organizational documents of
Summit, (b) conflict with or violate any Law applicable to Summit, (c) result in any breach of, or constitute a default (or event
which, with the giving of notice or lapse of time, or both, would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the creation of any Encumbrance on, any of the assets or
properties of Summit pursuant to, any contract relating to such assets or properties to which Summit is a party or by which any of
such assets or properties is bound, or (d) violate any provision of law, statute, rule or regulation to which Summit is a party, or
violate any judgment, order, writ, injunction or decree of any court applicable to Summit.

 

    40 

     

    

 

6.3          Consents
and Approvals. The execution, delivery and performance of this Agreement and each Ancillary Agreement by Summit, and the consummation
of the contribution transactions contemplated thereby, do not, require any consent, approval, authorization, license, permit, registration,
exemption or other action by, or filing with or notification to, any Authority or any other Person.

 

6.4           Litigation.
Summit has not received written notice of any action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding
pending or threatened in writing against Summit that seek to delay or would delay, if adversely determined, or prevent the consummation
of the transactions contemplated by this Agreement or the Ancillary Agreements to which it is a party or which would materially adversely
affect the ability of Summit to consummate the transactions contemplated hereby or thereby or to perform any of its material obligations
hereunder or thereunder.

 

6.5          OFAC
and Related Matters. Summit has not been, is not, and hereafter will not be, (a) listed on the Specially Designated Nationals and
Blocked Persons List maintained by OFAC pursuant to the Order and all applicable provisions of Title III of the USA Patriot Act (Public
Law No. 107-56 (October 26, 2001)); (b) listed on the Denied Persons List and Entity List maintained by the United States Department
of Commerce; (c) listed on the List of Terrorists and List of Disbarred Parties maintained by the United States Department of State,
(d) listed on any list or qualification of “Designated Nationals” as defined in the Cuban Assets Control Regulations 31 C.F.R.
Part 515; (e) listed on any other publicly available list of terrorists, terrorist organizations or narcotics traffickers maintained
by the United States Department of State, the United States Department of Commerce or any other Authority or pursuant to the Order, the
rules and regulations of OFAC (including without limitation the Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701-06; the unrepealed provision of the Iraq Sanctions Act, Publ. L. No. 101-513; the
United Nations Participation Act, 22 U.S.C. § 2349 as-9; The Cuban Democracy Act, 22 U.S.C. §§ 60-01-10; The
Cuban Liberty and Democratic Solidarity Act, 18 U.S.C. §§ 2332d and 233; and The Foreign Narcotic Kingpin Designation
Act, Publ. L. No. 106-120 and 107-108, all as may be amended from time to time); or any other applicable requirements contained in any
enabling legislation or other Executive Orders in respect of the Order; (vi) been investigated or is being investigated or is subject
to a pending or threatened investigation in relation to any Financial Crimes Compliance Laws (hereinafter defined) by any law enforcement,
regulatory or other governmental agency or any tenant, customer or supplier, or has admitted to, or been found by a court in any jurisdiction
to have engaged in, any violation of any Financial Crimes Compliance Laws or been debarred from bidding for any contract or business,
and to Summit’s Knowledge there are no circumstances which are likely to give rise to any such investigation, admission, finding
or disbarment; (vii) engaged in activities prohibited in the Orders; or (viii) convicted, pleaded nolo contendere, indicted, arraigned
or custodially detained on charges involving money laundering or predicate crimes to money laundering, drug trafficking, terrorist-related
activities or other money laundering predicate crimes or in connection with the Bank Secrecy Act (31 U.S.C. §§ 5311 et seq.).
Summit has implemented appropriate policies and procedures to ensure that they and each of their officers, directors, agents or any third
party acting on their behalf or for their benefit conduct their businesses in conformity with applicable Laws and regulations relating
to Financial Crimes Compliance Laws. To Summit’s Knowledge, no principal, owner, officer, director or agent of Summit is currently
the subject of any sanctions established under Financial Crimes Compliance Laws, or organized or resident in a country or territory that
is the subject of any such sanctions.

 

    41 

     

    

 

6.6           ERISA. Neither (i) any assets of Summit, nor (ii) any funds to be used by Summit with respect to the transactions contemplated
pursuant to this Agreement, are, or at the Closing will be, pursuant to ERISA or the Code considered for any purpose of ERISA or the Code
to be plan assets. Neither the execution or delivery of this Agreement by Summit, nor the performance by Summit of its obligations or
the exercise of its rights or remedies under this Agreement, nor any transaction contemplated under this Agreement, is or will be a “prohibited
transaction” within the meaning of Section 406 of ERISA or Section 4975 of the Code.

 

6.7           Bankruptcy.
Summit has not: (a) made a general assignment for the benefit of creditors, (b) filed any voluntary petition in bankruptcy or suffered
the filing of any involuntary petition by its creditors, (c) suffered the appointment of a receiver to take possession of all, or substantially
all, of its assets, (d) suffered the attachment or other judicial seizure of all, or substantially all, of its assets, (e) admitted in
writing its inability to pay its debts as they come due, or (f) made an offer of settlement, extension or composition to its creditors
generally. To the Knowledge of Summit, there are no pending, or threatened in writing, petitions in bankruptcy, insolvency, reorganization
or other similar proceeding, whether voluntary or involuntary, against Summit.

 

6.8           Investment
Purpose. Summit, Master REIT 3 and/or Master REIT 2, as applicable, is purchasing the Subject Interests for investment for its own
account and not with a view to, or for sale in connection with, any distribution thereof. Summit has sufficient knowledge and experience
in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Project Owners and
the Project Interests and is capable of bearing the economic risks of such investment. Summit is an "accredited investor" as
such term is defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended.

 

6.9          Organizational
Documents. Complete and correct copies of the charter and the bylaws of Summit REIT and all amendments thereto have been filed by
Summit REIT with the United States Securities and Exchange Commission (the “SEC”) on the SEC’s Electronic Data
Gathering, Analysis and Retrieval system (“EDGAR”) and no changes thereto will be made subsequent to the date hereof
and prior to the Closing Date. The First Amended and Restated Agreement of Limited Partnership of Summit Hotel OP, LP, dated as of February
14, 2011 (as amended through the date hereof, the “Summit OP Agreement”), has been duly and validly authorized by
the Company, in its capacity as sole member of the General Partner of Summit OP, and is a valid and binding agreement, enforceable in
accordance with its terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ rights generally and by general equitable principles.

 

    42 

     

    

 

6.10         Capital
Structure.

 

6.10.1    As
of the date hereof, the authorized capital stock of Summit REIT consists of 500,000,000 shares of common stock, $0.01 par value per
share (“Summit REIT Common Stock”), and 100,000,000 shares of preferred stock, $0.01 par value per share
(“Summit REIT Preferred Stock”). At the close of business on October 29, 2021 (i) 106,450,760 shares of Summit
REIT Common Stock were issued and outstanding, (ii) 6,400,000 shares of Summit REIT Preferred Stock designated as 6.250% Series E
Cumulative Redeemable Preferred Stock, $0.01 par value per share, were issued and outstanding, (iii) 4,000,000 shares of Summit REIT
Preferred Stock designated as 5.875% Series F Cumulative Redeemable Preferred Stock, $0.01 par value per share, were issued and
outstanding and (iv) 3,661,250 shares of Summit REIT Common Stock were reserved for issuance under the Summit Hotel Properties, Inc.
2011 Equity Incentive Plan, as amended and restated effective May 13, 2021 (the “Summit REIT EIP”). At the close
of business on October 29, 2021, the following units of limited partnership interest in Summit OP were issued and outstanding (w)
124,797 Common Units, (x) 6,400,000 6.250% Series E Cumulative Redeemable Preferred Units, (y) 4,000,000 5.875% Series F Cumulative
Preferred Units and (z) no LTIP Units. Except with respect to an aggregate of 124,797 units of limited partnership interest in
Summit OP designated as Common Units, as of the date hereof, all of the issued and outstanding units of limited partnership interest
of Summit OP are owned, directly or indirectly, by Summit REIT. No class of capital stock or limited partnership interests of Summit
or Summit REIT, respectively, is entitled to preemptive rights.

 

6.10.2   
Except for the transactions contemplated by this Agreement and the Ancillary Agreements, as of the date hereof, and as otherwise
set forth in documents filed or furnished (on a publicly available basis) by Summit REIT to the SEC under the Securities Act or the Exchange
Act through the date of this Agreement, there are no securities, options, warrants, calls, rights, commitments, agreements, rights of
first refusal, arrangements or undertakings of any kind to which Summit or Summit REIT is a party or by which either of them is bound,
obligating Summit OP or Summit REIT to issue, deliver or sell or create, or cause to be issued, delivered or sold or created, additional
shares of Summit REIT Common Stock, shares of Summit REIT Preferred Stock or units of limited partnership interest of Summit OP, or other
equity securities, rights, options, stock or unit appreciation rights, phantom stock or units, dividend equivalents or similar rights
or other contractual rights the value of which is determined in whole or in part by the value of any equity security of the Summit OP
or Summit REIT or obligating Summit OP or Summit REIT to issue, grant, extend or enter into any such security, option, warrant, call,
right, commitment, agreement, right of first refusal, arrangement or undertaking.

 

6.10.3   
The Common Units to be issued pursuant to this Agreement, together with the shares of Summit REIT Common Stock issuable upon the
exchange of such Common Units pursuant to the terms of the Summit OP Agreement, when issued as contemplated herein or therein, will be
duly authorized, validly issued, fully paid, nonassessable, and free of preemptive rights and liens, except for restrictions on transfer
imposed under applicable securities Law. The issuance of such shares of Summit REIT Common Stock issuable upon conversion of the Common
Units when issued will not contravene any Law or the rules and regulations of The New York Stock Exchange.

 

    43 

     

    

 

6.11         SEC Filings; Financial Statements.

 

6.11.1   
 Summit REIT has filed with, or furnished (on a publicly available basis) to, the SEC all forms, reports, schedules, statements
and documents required to be filed or furnished by it under the Securities Act or the Exchange Act, as the case may be, including any
amendments or supplements thereto, from and after January 1, 2021 through the date of this Agreement (collectively, the “Summit
REIT SEC Filings”). Each Summit REIT SEC Filing, as amended or supplemented, if applicable, (i) as of its date, or, if amended
or supplemented, as of the date of the most recent amendment or supplement thereto, complied in all material respects with the requirements
of the Securities Act or the Exchange Act, as the case may be, and the applicable rules and regulations of the SEC thereunder, and (ii)
did not, at the time it was filed (or became effective in the case of registration statements), or, if amended or supplemented, as of
the date of the most recent amendment or supplement thereto, contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under
which they were made, not misleading. As of the date of this Agreement, neither Summit OP nor any other subsidiary of Summit REIT is separately
subject to the periodic reporting requirements of the Exchange Act.

 

6.11.2   
Each of the consolidated financial statements contained or incorporated by reference into the Summit REIT SEC Filings (as amended,
supplemented or restated, if applicable), including the related notes and schedules, was prepared (except as indicated in the notes thereto)
in accordance with GAAP applied on a consistent basis throughout the periods indicated, and each such consolidated financial statement
presented fairly, in all material respects, the consolidated financial position, results of operations, stockholders’ equity and
cash flows of Summit REIT and its consolidated subsidiaries as of the respective dates thereof and for the respective periods indicated
therein (subject, in the case of unaudited quarterly financial statements, to the omission of footnotes and normal year-end adjustments).

 

6.11.3   
Except as and to the extent disclosed or reserved against on Summit REIT’s most recent balance sheet (or, in the notes thereto)
included in the Summit REIT SEC Filings, none of Summit REIT or its consolidated subsidiaries has any Liabilities or obligations of any
nature (whether accrued, absolute, contingent or otherwise), except for Liabilities or obligations (i) incurred in the ordinary course
of business consistent with past practice since the most recent balance sheet set forth in the Summit REIT SEC Filing and (ii) that that
have not had, and would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on Summit REIT
and Summit OP on a consolidated basis.

 

6.12         Absence
of Certain Changes.

 

6.12.1   
Except as contemplated by this Agreement and the Ancillary Agreements or as disclosed in the Summit REIT SEC Filings, since January
1, 2021, Summit OP and Summit REIT have conducted, in all material respects, their business in the ordinary course consistent with past
practice.

 

    44 

     

    

 

6.12.2   
 Since January 1, 2021, no event, fact, circumstance or condition has occurred that would, individually or in the aggregate, reasonably
be expected to have a material adverse effect on Summit REIT or Summit OP.

 

6.13         Tax.

 

6.13.1   
Summit OP is now, and has been at all times since its formation, treated as a disregarded entity or partnership, and not as an
association taxable as a corporation for income tax purposes.

 

6.13.2   
Summit REIT (i) for each of its taxable years commencing with its taxable year that ended on December 31, 2017 has been subject
to taxation as a REIT and has satisfied all requirements to qualify as a REIT, and has so qualified, for U.S. federal tax purposes for
each such taxable year; (ii) has operated since January 1, 2021 to the date hereof in such a manner so as to qualify as a REIT for U.S.
federal tax purposes; (iii) intends to continue to operate in such a manner so as to qualify as a REIT; and (iv) has not taken or omitted
to take any action that could reasonably be expected to result in a challenge by the Internal Revenue Service or any other Governmental
Authority to its status as a REIT, and, to the Knowledge of Summit, no such challenge is pending or threatened.

 

ARTICLE
VII

SUMMIT’S INSPECTION; TITLE AND SURVEY

 

7.1           Inspection
Right. Subject to the provisions of this Section 7.1, and pursuant to the Access Agreement, Summit and its agents, employees,
consultants, inspectors, appraisers, engineers and contractors (collectively "Summit's Representatives") shall have
the right, commencing on the effective date (i.e., September 23, 2021) of the Access Agreement and continuing through 5:00 p.m. (Central
time) on January 6, 2022 (the “Due Diligence Period”), from time to time, upon the advance notice required pursuant
to this Section 7.1, to enter upon and pass through the Projects during normal business hours for the sole purpose of making non-intrusive
examinations and inspection of the same. The Access Agreement is hereby incorporated into this Agreement in its entirety and Summit’s
right of access to and inspection of the Projects is subject to all of the terms, provisions and conditions set forth in the Access Agreement,
including, without limitation, the indemnification obligations provided for in the Access Agreement which will survive the termination
of this Agreement to the extent provided for in the Access Agreement. If Summit, in its sole discretion, shall determine that any of
the Projects, the Subject Interests or any matter related to the Projects or the Subject Interests is unsatisfactory, then Summit may
terminate this Agreement by written notice (“Termination Notice”) to Investor and Escrow Agent prior to the end of
the Due Diligence Period, in which event this Agreement shall terminate, Escrow Agent shall return the Initial Deposit (and any interest
thereon) to Summit and neither party to this Agreement shall thereafter have any further rights or liabilities under this Agreement,
other than those that expressly survive termination of this Agreement. If Summit elects not to terminate this Agreement in such manner,
then Summit shall deliver the Additional Deposit to Escrow Agent in accordance with Section 2.8.1. Time is of the essence
with respect to the giving of a Termination Notice and the delivery of the Additional Deposit in accordance with this Section 7.1.

 

    45 

     

    

 

 

7.2             
 Title and Survey.

 

7.2.1       
As a condition to Summit's obligation to purchase the Projects and the Subject Interests on the Closing Date, the Title Company
shall be prepared to issue to Summit, at standard rates, a Title Policy for each Project in the amount of the applicable Allocated Purchase
Price, subject only to the Permitted Exceptions, matters caused by Summit or its activities at the Projects, or other matters approved
in writing by Summit.

 

7.2.2       
The Parties acknowledge that Summit shall obtain, and its sole cost and expense, an updated to the existing surveys in the Company
Diligence Website (each an “Updated Survey”), and Investor shall reasonably cooperate with Summit and each surveyor
with respect to each such Updated Survey in accordance with the Access Agreement. Summit acknowledges and agrees that the Updated Surveys
are not a condition to the Closing.

 

7.2.3       
Notwithstanding anything to the contrary contained in this Agreement, Investor shall not be required to take or bring any action
or proceeding or any other steps to remove any defect in or objection to title or to fulfill any condition precedent to Summit's obligations
under this Agreement or to expend any moneys therefor, nor shall Summit have any right of action against Investor therefor, at law or
in equity, except that Investor shall be obligated to, on or prior to the Closing, pay, discharge or remove of record or cause to be paid,
discharged or removed of record, or insured over and omitted from Summit's title policy, at Investor's sole cost and expense all of the
following items (the “Investor Cure Items”): (i) Voluntary Liens (as hereinafter defined), other than the Assumed Debt,
(ii) any mechanic's lien or materialmen's lien relating to work contracted by Investor, (iii) any deeds of trust of Investor encumbering
the Property (other than the Assumed Debt), and (iv) other monetary liens encumbering the Property (including, judgments, federal, state
and municipal tax liens) (other than real estate taxes and water and sewer charges that are subject to adjustment in accordance with Section
6: hereof and other than Permitted Exceptions) which result from the actions or inactions of Investor and do not exceed Two Hundred Fifty
Thousand and 00/100 Dollars ($250,000.00) per Project, or One Million and 00/100 Dollars ($1,000,000.00) in the aggregate for all Projects.
The term "Voluntary Liens" as used herein shall mean liens and other encumbrances (other than Permitted Exceptions) which
Investor has knowingly and intentionally placed (or affirmatively allowed to be placed) on the Property, including, without limitation,
deeds of trust. The amount of any unpaid taxes, assessments and water and sewer charges which Investor is obligated to pay and discharge
may, at the option of Investor, be paid by Summit out of the balance of the Purchase Price at the Closing, if bills therefor with any
interest and penalties thereon figured to the Closing Date (as the same may be extended) are furnished to or obtained by the Title Company
at the Closing for payment thereof. Notwithstanding the foregoing or anything in this Agreement to the contrary, if and to the extent
that any Voluntary Liens with respect the Canopy New Orleans exist after the Closing Date, Summit shall have the right to seek reimbursement
from Investor, and Investor shall be obligated to pay, discharge or remove of record or cause to be paid, discharged or removed of record,
at Investor's sole cost and expense, any such Voluntary Lien for a period of ninety (90) days following the Closing Date. This Section
7.2.3 shall survive the Closing.

 

7.3             
 The acceptance of a Deed (as hereinafter defined) or an Assignment of Ground Lease for each Project by Summit shall be deemed
to be full performance of, and discharge of, every agreement and obligation on Investor's part to be performed under this Agreement, except
for such matters which are expressly stated to survive the Closing hereunder.

 

    46 

     

    

 

ARTICLE
VIII

SURVIVAL; LIMITATIONS AND INDEMNIFICATION

 

8.1             
Survival of Warranties. Subject to the terms of this Article VIII, all representations and warranties of Investor
and the Investor Parties, on the one hand, and Summit, on the other hand, set forth in this Agreement shall survive the Closing for a
period of nine (9) months, except all Fundamental Representations which shall survive the Closing for a period of forty-eight (48) months.
All agreements and covenants contained in Section 9.3 of this Agreement that are to be performed following the Closing shall survive
until fully performed. Each of the survival periods referred to in this Section 8.1 are referred to herein, as the context requires,
as a “Survival Period”.

 

8.2             
AS IS.

 

8.2.1       
Summit represents that by reason of its business and financial experience and the business and financial experience of those persons
retained by Summit to advise it with respect to its investment in the Project, Summit has sufficient knowledge, sophistication, and experience
in business and financial matters to evaluate the merits and risks of the prospective investment. Summit has, or will have, an adequate
opportunity and time to review and analyze the risks attendant to the transactions contemplated in this Agreement with the assistance
and guidance of competent professionals. Summit represents, warrants, and agrees that, except for the Investor Warranties, Summit is relying
on its own inspections, examinations, and investigations in making the decision to purchase the Projects. SUMMIT ACKNOWLEDGES FOR ITSELF
AND ITS SUCCESSORS AND ASSIGNEES, (I) SUMMIT HAS BEEN OR WILL PRIOR TO CLOSING BE GIVEN A REASONABLE OPPORTUNITY TO INSPECT AND INVESTIGATE
THE PROJECT, ALL IMPROVEMENTS THEREON AND ALL ASPECTS RELATING THERETO, INCLUDING ALL DOCUMENTS, EITHER INDEPENDENTLY OR THROUGH AGENTS
AND EXPERTS OF SUMMIT’S CHOOSING AND (II) EXCEPT FOR THE INVESTOR WARRANTIES, THAT SUMMIT IS ACQUIRING THE PROJECT BASED UPON SUMMIT’S
OWN INVESTIGATION AND INSPECTION THEREOF.

 

8.2.2       
Except for the Investor Warranties, Summit has not relied, and is not relying, upon any due diligence materials or the truth, accuracy
or completeness of any such due diligence materials provided or made available to Summit from any source, including, without limitation,
all materials and other information posted to a data site, information, documents, sales brochures, or other literature, maps or sketches,
projections, proformas, statements, representations, guaranties, or warranties (whether express or implied, oral or written, material
or immaterial).

 

8.2.3        EXCEPT
FOR THE REPRESENTATIONS AND WARRANTIES OF INVESTOR EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS EXECUTED
AND DELIVERED IN CONNECTION WITH THE CLOSING, INCLUDING WITHOUT LIMITATION THE REQUIRED TRANSFER DOCUMENTS (COLLECTIVELY, THE
 “INVESTOR WARRANTIES”), THE SALE AND CONVEYANCE BY INVESTOR TO SUMMIT OF ALL RIGHT, TITLE AND INTEREST OF
INVESTOR IN AND TO THE PROPERTY WILL BE MADE WITHOUT ANY WARRANTY OR RECOURSE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ANY
WARRANTY OF TITLE (EXCEPT AS TO ACTS OF INVESTOR AND AS TO EACH INVESTOR’S OWNERSHIP OF THE PERSONAL PROPERTY), ABSENCE OF
VICES OR DEFECTS (WHETHER APPARENT OR LATENT, KNOWN OR UNKNOWN, EASILY DISCOVERABLE OR HIDDEN), FITNESS FOR ANY ORDINARY USE, OR
FITNESS FOR ANY INTENDED USE OR PARTICULAR PURPOSE. EXCEPT FOR THE INVESTOR WARRANTIES, THE SOLE PERIL AND RISK OF EVICTION (EXCEPT
AS A RESULT OF ACTS OF INVESTOR) WITH RESPECT TO THE REAL PROPERTY SHALL BE ASSUMED BY THE SUMMIT, BUT WITH FULL SUBSTITUTION AND
SUBROGATION IN AND TO ALL OF THE RIGHTS AND ACTIONS OF WARRANTY WHICH SUMMIT HAS OR MAY HAVE AGAINST ALL PRECEDING OWNERS OR
INVESTOR; IT BEING UNDERSTOOD THAT, EXCEPT FOR THE INVESTOR WARRANTIES, SUMMIT WILL TAKE EACH PROPERTY “AS IS”
AND “WHERE IS.”.

 

    47 

     

    

 

8.2.4        WITHOUT
LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT FOR THE INVESTOR WARRANTIES, SUMMIT ACKNOWLEDGES THAT INVESTOR HAS MADE NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY PROPERTY INCLUDING, WITHOUT
LIMITATION, ANY WARRANTIES OR REPRESENTATIONS AS TO TITLE (EXCEPT AS TO ACTS OF INVESTOR AND AS TO INVESTOR'S OWNERSHIP OF THE
PERSONAL PROPERTY), ABSENCE OF VICES OR DEFECTS (WHETHER APPARENT OR LATENT, KNOWN OR UNKNOWN, EASILY DISCOVERABLE OR HIDDEN),
HABITABILITY, MERCHANTABILITY, FITNESS FOR ANY ORDINARY USE, FITNESS FOR ANY INTENDED USE OR PARTICULAR PURPOSE, ZONING, TAX
CONSEQUENCES, PHYSICAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF
THE PROPERTY WITH LEGAL REQUIREMENTS, INCLUDING WITHOUT LIMITATION THE AMERICANS WITH DISABILITIES ACT OF 1990, 42 U.S.C. §
12101, ET SEQ., THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA OR INFORMATION PROVIDED BY OR ON BEHALF OF INVESTORS TO
SUMMIT, OR THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS INCORPORATED INTO THE PROPERTY OR THE MANNER OF REPAIR, QUALITY,
STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY OR ANY PORTION THEREOF. EXCEPT FOR THE INVESTOR WARRANTIES, ALL SUCH WARRANTIES
WITH RESPECT TO THE PROPERTY ARE HEREBY DISCLAIMED BY INVESTORS AND EXPRESSLY WAIVED BY SUMMIT. EXCEPT FOR THE INVESTOR WARRANTIES,
SUMMIT HAS NOT RELIED AND WILL NOT RELY ON, AND INVESTORS ARE NOT LIABLE FOR OR BOUND BY, ANY EXPRESS OR IMPLIED WARRANTIES,
GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING OR RELATING TO THE PROPERTY MADE OR FURNISHED BY INVESTORS, ANY
PARTY ACTING OR PURPORTING TO ACT FOR INVESTORS OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT
INVESTORS, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING. EXCEPT FOR THE INVESTOR WARRANTIES, SUMMIT
FURTHER HAS NOT RELIED ON ANY INVESTORS' SKILL OR JUDGMENT IN SELECTING THE PROPERTY.

 

8.2.5       
EXCEPT FOR THE INVESTOR WARRANTIES OR AS OTHERWISE PROVIDED FOR IN THIS AGREEMENT, INVESTOR HAS NOT, DOES NOT AND WILL NOT MAKE
ANY REPRESENTATIONS OR WARRANTIES WITH REGARD TO (A) COMPLIANCE WITH ANY ENVIRONMENTAL LAWS OR LAND USE LAWS, RULES, REGULATIONS, ORDERS
OR REQUIREMENTS INCLUDING, BUT NOT LIMITED TO, THOSE PERTAINING TO THE HANDLING, GENERATING, TREATING, STORING OR DISPOSING OF ANY HAZARDOUS
SUBSTANCE OR (B) ABSENCE OF ANY CLAIMS, WHETHER ASSERTED OR UNASSERTED, WITH RESPECT TO COMPLIANCE WITH ENVIRONMENTAL LAWS OR ENVIRONMENTAL
CONDITIONS AT THE PROPERTY. SUMMIT RELEASES INVESTOR FROM ANY AND ALL CLAIMS SUMMIT MAY HAVE AGAINST INVESTOR OF WHATEVER KIND OR NATURE
NOW OR HEREAFTER RESULTING FROM OR IN ANY WAY CONNECTED WITH THE ENVIRONMENTAL CONDITION OF THE PROPERTY, INCLUDING ANY AND ALL CLAIMS
SUMMIT MAY HAVE AGAINST INVESTOR UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT, 42 U.S.C. §9601
ET SEQ., AS AMENDED OR REAUTHORIZED, ANY APPLICABLE STATE LAW EQUIVALENT OR ANY OTHER ENVIRONMENTAL LAW OR COMMON LAW, PROVIDED, THAT,
NO RELEASE IS INTENDED WITH RESPECT TO CLAIMS THAT SUMMIT MAY HAVE AGAINST INVESTOR'S PREDECESSORS IN TITLE UNDER APPLICABLE LAW.

 

8.2.6       
NEITHER SUMMIT NOR INVESTOR SHALL BE LIABLE FOR ANY SPECULATIVE PROFITS, OR SPECIAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES,
WHETHER BASED UPON CONTRACT, TORT (EXCEPT FOR THE TORT OF FRAUD) OR NEGLIGENCE OR IN ANY OTHER MANNER ARISING FROM THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

8.2.7        EXCEPT
FOR THE INVESTOR WARRANTIES OR AS OTHERWISE PROVIDED FOR IN THIS AGREEMENT, SUMMIT HEREBY RELEASES INVESTOR FROM ALL CLAIMS, LOSSES,
DAMAGES, LIABILITIES, COSTS AND EXPENSES WHICH SUMMIT HAS OR MAY HAVE ARISING FROM OR RELATED TO ANY MATTER OR THING RELATED TO THE
PHYSICAL CONDITION OF THE PROPERTY, ANY CONSTRUCTION DEFECTS, ANY ERRORS OR OMISSIONS IN THE DESIGN OR CONSTRUCTION OF THE PROPERTY
AND ANY ENVIRONMENTAL CONDITIONS AT, IN OR UNDER THE PROPERTY AND SUMMIT WILL NOT LOOK TO INVESTORS OR ANY INVESTOR-RELATED PARTY IN
CONNECTION WITH THE FOREGOING FOR ANY REDRESS OR RELIEF, PROVIDED, THAT: (A) NO RELEASE IS INTENDED WITH RESPECT TO CLAIMS THAT
SUMMIT MAY HAVE AGAINST INVESTOR'S PREDECESSORS IN TITLE UNDER APPLICABLE LAW; AND (B) SUMMIT DOES NOT SO RELEASE INVESTORS FROM ANY
CLAIMS, LOSSES, DAMAGES, LIABILITIES, COSTS OR EXPENSES TO THE EXTENT, AND ONLY TO THE EXTENT, THAT INVESTOR ACTUALLY RECEIVES
INSURANCE PROCEEDS, REIMBURSEMENT OR OTHER COMPENSATION WITH RESPECT TO THE CONDITION GIVING RISE TO SUCH CLAIMS, LOSSES, DAMAGES,
LIABILITIES, COSTS OR EXPENSES OR SUCH CLAIM IS COVERED BY INVESTOR'S LIABILITY INSURANCE.

 

    48 

     

    

 

8.2.8       
SUMMIT AND INVESTOR FURTHER DECLARE AND ACKNOWLEDGE THAT THE FOREGOING RELEASES HAVE BEEN BROUGHT TO THE ATTENTION OF SUMMIT AND
INVESTOR, AND EXPLAINED IN DETAIL, AND THAT SUMMIT AND INVESTOR HAVE VOLUNTARILY AND KNOWINGLY CONSENTED TO THE FOREGOING RELEASES.

 

8.2.9       
SUMMIT AND INVESTOR FURTHER DECLARE AND ACKNOWLEDGE THAT THE FOREGOING RELEASES WILL BE GIVEN FULL FORCE AND EFFECT ACCORDING TO
EACH OF THEIR EXPRESS TERMS AND PROVISIONS, INCLUDING THOSE RELATING TO UNKNOWN AND UNSUSPECTED CLAIMS, DAMAGES AND CAUSES OF ACTION AND
STRICT LIABILITY CLAIMS. THE FOREGOING RELEASES INCLUDE CLAIMS OF WHICH THE PARTIES ARE PRESENTLY UNAWARE OR WHICH THE PARTIES DO NOT
PRESENTLY SUSPECT TO EXIST WHICH, IF KNOWN BY PURCHASERS OR SELLERS, WOULD MATERIALLY AFFECT SUMMIT'S RELEASE TO INVESTOR AND EACH INVESTOR'S
RELEASE TO SUMMIT, RESPECTIVELY.

 

	Investor's Initials 	Summit's Initials

 

	________	_______

 

8.3              Indemnification
by Investor. Subject to any express provisions of this Agreement to the contrary, from and after the Closing, Investor shall be
responsible for and shall indemnify, hold harmless and defend Summit, Summit’s Affiliates and their respective direct and
indirect owners, partners, members, shareholders, officers, directors, employees and agents, and their respective personal
representatives, successors and assigns, from and against any Losses arising out of or caused by: (a) the Loan Assumption Agreement
or the Assumed Debt; (b) any insured Claim by any third Person in connection with the operation or ownership of any Project prior to
the Closing (including without limitation any Ground Lessor); (c) any Pre-Closing Entity Taxes; (d) the reimbursement obligation for
Voluntary Liens with respect to the Canopy New Orleans under Section 7.2; and (f) the indemnity provisions of Article X hereof;
excluding (i) Claims arising out of the Assumed Project Liabilities, or (ii) Claims for which a specific adjustment or apportionment
was made and reflected in a written agreement between Investor and Summit at the Closing. Notwithstanding anything to
the contrary in this Agreement, the obligations of Investor
under this Section 8.3 shall not extend to (a)
any special, incidental, consequential
or punitive damages or lost profits, or (b) with respect
to the matters described in clause (c) of this Section
8.3 any Losses that are not payable to third parties.

 

    49 

     

    

 

8.4             
Indemnification by Summit. Subject to any express provisions of this Agreement to the contrary, from and after the Closing,
Summit shall be responsible for and shall indemnify, hold harmless and defend Investor and its Affiliates and respective direct and indirect
owners, partners, members, shareholders, officers, directors, employees and agents and their respective personal representatives, successors
and assigns, from and against any Losses arising out of or caused by (a) the indemnity provisions of Article X hereof; and (b) any insured
Claim by any third Person in connection with the operation or ownership of any Project from and after the Closing (including without limitation
any Ground Lessor). Notwithstanding anything to the contrary in this Agreement, the obligations of Summit under this Section 8.4
shall not extend to any special, incidental,
consequential or punitive damages or lost profits.

 

8.5             
Liability - General. Solely for purposes of third-party claims, the following provisions shall apply to any claim for defense
or indemnity made by a Party (“Injured Party”) of the other Party (“Responsible Party”):

 

(a)              
An Injured Party shall give Responsible Party written notice of any Claim, assertion, event or proceeding by or in respect of a
third party as to which such Injured Party may request payment, reimbursement or indemnification hereunder as soon as is practicable and
in any event within sixty (60) days of the time that such Injured Party learns of such Claim, assertion, event or proceeding; provided,
however, that the failure to so notify Responsible Party shall not affect rights to indemnification or otherwise hereunder except to the
extent that Responsible Party is actually prejudiced by such failure.

 

(b)               Responsible
Party shall have the right by notice given to the Injured Party within sixty (60) days of receipt of notice of the Claim to direct,
through counsel of its own choosing reasonably acceptable to the Injured Party, the defense or settlement of any such Claim or
proceeding at its own expense, provided that Responsible Party shall not settle any such Claim or proceeding without arranging for
the release of the Injured Party and the partners, members, shareholders or other owners of the Injured Party. If Responsible Party
elects to assume the defense of any such Claim or proceeding, Responsible Party shall consult with the Injured Party and the Injured
Party may participate in such defense, but in such case the expenses of the Injured Party shall be paid by the Injured Party. The
Injured Party shall provide Responsible Party with access to its records and personnel relating to any such Claim, assertion, event
or proceeding during normal business hours and shall otherwise cooperate with Responsible Party in the defense or settlement
thereof, and Responsible Party shall reimburse the Injured Party for all its reasonable out-of-pocket expenses in connection
therewith. If Responsible Party elects to direct the defense of any such Claim or proceeding, the Injured Party shall not pay, or
permit to be paid, any part of any Claim or demand arising from such asserted Liability unless Responsible Party consents in writing
to such payment or unless a final judgment from which no appeal may be taken by or on behalf of Responsible Party is entered against
the Injured Party for such Liability. If Responsible Party fails to defend or if, after commencing or undertaking any such defense,
Responsible Party fails to diligently prosecute or withdraws from such defense (or an unacceptable conflict of interest shall exist
or arise), the Injured Party shall have the right to undertake the defense or settlement thereof, at Responsible Party’s
expense and in that event the Injured Party may settle such Claim or proceeding prior to a final judgment thereon or elect to forego
any appeal with respect thereto.

 

    50 

     

    

 

(c)              
All amounts owed by the Responsible Party to the Injured Party, after a final judgment (without further right of appeal) determining
the amount owed is rendered, or after a final settlement or agreement as to the amount owed is executed, shall be paid in full to the
Injured Party in readily available funds. If the amounts owed by the Responsible Party to the Injured Party are not paid when due, interest
shall accrue on such amount at the rate of five percent (5%) per annum compounded annually until paid in full.

 

(d)              
Responsible Party may procure and maintain liability insurance, at its own expense, for itself and for the benefit of any Injured
Party, and Responsible Party may satisfy, in whole or in part, its obligation to defend or indemnify an Injured Party as set forth in
this Section 8.5 through the proceeds of liability insurance. Injured Party will cooperate in good faith with Responsible Party
to comply with the terms and conditions of such liability insurance and to maximize the proceeds of such liability insurance, if any.
Notwithstanding the foregoing, the availability or lack of insurance coverage under any insurance policy, whether required herein or otherwise,
is not intended, nor shall such availability or lack thereof be argued to, alter, limit, change or modify any defense or indemnity obligation
undertaken in this Agreement.

 

(e)              
Anything herein to the contrary notwithstanding, no breach of any representation, warranty, covenant or agreement contained herein
shall give rise to any right on the part of any party, after the consummation of the transactions contemplated hereby, to rescind this
Agreement or any of the transactions contemplated hereby.

 

(f)               
Notwithstanding anything to the contrary contained herein: (i) the maximum aggregate liability of Investor, and the maximum aggregate
amount that may be awarded to and collected by Summit, under this Agreement and any Ancillary Agreements shall, under no circumstances
whatsoever, exceed the sum of One Million and 00/100 Dollars ($1,000,000.00) per Project, and Fifteen Million and 00/100 Dollars ($15,000,000.00)
in the aggregate for all Projects (the “Cap Amount”); and (ii) no Claim by Summit alleging a breach by Investor of
any representation, warranty and/or covenant of Investor contained herein or any of the Ancillary Agreements may be made, and Investor
shall not be liable for any judgment in any action based upon any such claim, unless and until such Claim, either alone or together with
any other Claims by Investor alleging a breach by Investor of any such representation, warranty and/or covenant, is for an aggregate amount
in excess of One Million and 00/100 Dollars ($1,000,000.00) (the “Floor Amount”), in which event Investor’s aggregate
liability respecting any final judgment concerning such Claim or Claims shall be for the entire amount thereof, subject to the Cap Amount
set forth in clause (i) above; provided, however, that if any such final judgment is for an amount that is less than or equal to the Floor
Amount, then Investor shall have no liability with respect thereto. Summit shall be deemed to have waived any Claim against Investor unless
Summit provides written notice of a claim to Investor prior to the end of the Survival Period and commences a legal action against Investor
within sixty (60) days after the end of the Survival Period. Investor shall be deemed to have waived any Claim against Summit unless Investor
provides written notice of a claim to Summit prior to the end of the Survival Period and commences a legal action against Summit within
sixty (60) days after the end of the Survival Period.

 

(g)              
 Notwithstanding anything to the contrary contained herein, neither the Floor Amount nor the Cap Amount shall apply to, nor shall
the Cap Amount be reduced by, any Claims made by Summit with respect to: (A) the indemnities of Summit set forth in Article X;
(B) any Claims relating to the fraud or intentional misrepresentation of Summit as determined by a final unappealable judgment; (C) any
amounts that must be paid or reconciled pursuant to Article III; or (D) any Pre-Closing Entity Taxes.

 

(h)              
The provisions of this Article VIII shall survive the Closing.

 

    51 

     

    

 

ARTICLE
IX

OTHER COVENANTS

 

9.1             
Confidentiality. Unless Investor specifically and expressly otherwise agrees in writing, Summit agrees that (a) the results
of all inspections, analyses, studies and similar reports relating to the Projects prepared by or for Summit utilizing any information
acquired in whole or in part through the exercise of Summit’s inspection rights; and (b) all information regarding Investor, the
Project Owners or the Projects of whatsoever nature made available to Summit by Investor or Investor’s agents or representatives
(collectively, the “Proprietary Information”), is confidential and shall not be disclosed to any other person except
those assisting Summit with this transaction (including, without limitation, Investor’s Agents and their respective attorneys, accountants,
professional consultants, financial advisors, rating agencies, or similar type parties, as the case may be), Summit’s officers,
directors and investors and Summit’s lenders or potential lenders, if any. Proprietary Information shall not include any materials
or information that (x) is or becomes generally available to the public through no action by Summit or Summit’s Agents; (y) is or
becomes available to Summit from a source, other than Investor not actually known by Summit or any of Summit’s Agents to be subject
to any confidentiality obligations to Investor or (z) has been acquired or developed by Summit independently without violating any confidentiality
agreement. If Summit is required by applicable law (including pursuant to a court order or other legal process, or governmental regulations,
governmental disclosures, or for tax and other reporting requirements) to disclose to a third party any Proprietary Information, (i) Summit
shall (if permitted by law) promptly notify Investor by electronic mail prior to such disclosure and (ii) unless a protective order is
obtained, Summit may disclose that part of the Proprietary Information as is required to be disclosed based on advice of counsel. If this
Agreement terminates prior to the Closing, Summit agrees to either return all Proprietary Information to Summit or cause such to be destroyed;
provided, however, that Summit may retain copies of such: (1) that has been created electronically pursuant to archiving or back-up procedures;
(2) if necessary to comply with its record keeping requirements; (3) to demonstrate compliance with fiduciary duties; or (4) for purposes
of defending any legal action relating to this Agreement. Summit shall inform each of Summit’s Agent that received any of the Proprietary
Information of the requirements of this Agreement. The provisions of this Section 9.1 shall survive any termination of this
Agreement but shall not survive the Closing.

 

9.2              Public
Announcements. Each Party to this Agreement shall have the right to publicly discuss the transactions contemplated hereby and
make any required securities filings (if applicable) or other regulatory filings that may be required by law with respect to this
Agreement or the transactions contemplated by this Agreement without the prior consent of the other Party, provided, that, no Party
shall make any public announcement in respect of this Agreement or the transactions contemplated hereby (including without
limitation any press release) or otherwise communicate with any news media without the prior written consent of the other Party,
which shall not be unreasonably withheld or delayed, and the Parties shall each consult with the other as to the timing and contents
of any such announcement or press release. Without the other Party’s prior written consent, which each Party may withhold in
their sole discretion, no Party shall reference the name of any member, partner, parent, subsidiary, Affiliate or investor of the
other Party in any announcement of the transaction contemplated hereby. The provisions of this Section 9.2 shall survive
the Closing.

 

    52 

     

    

 

9.3             
Further Assurances. Each of the Parties hereto shall, acting in good faith, use its commercially reasonable efforts to take
or cause to be taken all appropriate action, do or cause to be done all things necessary, proper or advisable, and execute and deliver
such documents and other papers, as may be required to carry out the provisions of this Agreement and consummate and make effective the
transactions contemplated by this Agreement. Notwithstanding the foregoing, nothing in this Section shall require any Party to execute
and deliver any document or agreement that expands the scope or nature of its respective liability or obligations under this Agreement.
This Section 9.3 shall survive the Closing.

 

9.4             
Parking Option Agreement. The Parties shall negotiate in good faith to enter into an agreement to provide parking spaces,
in accordance with local zoning code, in the parking garage described in Exhibit A-15 [Frisco Parking Garage] for use Investor
(or its Affiliate) if and to the extent Investor (or its Affiliate) develops a project on an adjacent property.

 

9.5             
Ownership Limit Waiver. The Parties will work in good faith to grant to Newcrest a customary ownership limit waiver as contemplated
by, and in accordance with, the Summit REIT charter, delivered by Summit REIT or its board of directors, in a form and amount reasonably
acceptable to Newcrest, subject, however, to receipt by Summit REIT from Newcrest of information reasonably requested with respect
to the granting of such waiver and a customary representation letter executed by Newcrest (including, but not limited to, a representation
that no “individual,” within the meaning of Section 542(a) of the Code, as modified by Section 856(h)(3) thereof to exclude
pension trusts from such definition, will Beneficially Own or Constructively Own (as defined in the Summit REIT charter) more than 9.8%
in value or in number of shares, whichever is more restrictive, of any class or series of stock of Summit REIT as a result of ownership
by Newcrestimage).

 

9.6             
Operation of the Projects. Prior to the Closing, unless Summit consents otherwise, which consent will not be unreasonably
withheld, conditioned or delayed:

 

9.6.1          
Investor shall use commercially reasonable efforts to (i) cause Existing Manager to continue to operate each Project in the
ordinary course pursuant to the Existing Management Agreement and consistent with the practices and procedures in effect as of the Effective
Date, except to the extent that this Agreement expressly provides otherwise, and (ii) not, without prior approval of Summit (which
approval shall not be unreasonably withheld, conditioned or delayed), voluntarily encumber or create any new Encumbrances on any portion
of any Project that are not Permitted Exceptions unless the same will be removed at or before the Closing or any such Encumbrance will
have a Material Adverse Effect on any Project.

 

    53 

     

    

 

9.6.2          
 Investor shall (and shall cause the Project Owners to) continue to maintain the insurance currently carried by Investor or the
Project Owners with respect to any Project.

 

9.6.3          
From and after two (2) Business Days prior to the expiration of the Due Diligence Period, Investor shall not enter into, amend
or otherwise modify any Contract or Lease unless (i) any such new Contract or Lease or such amendment or modification will not be
binding after the Closing, (ii) any such new, amended or modified Contract or Lease is an extension or renewal of, or replacement
for, a Contract or Lease existing as of the Effective Date on substantially similar terms, allowing for a reasonable adjustment in the
price or rent charged thereunder to reflect market conditions in Investor’s reasonable judgment, and which new, amended or modified
Contract or Lease may be with a new contracting third party or parties in Investor’s or reasonable judgment, (iii) any such
new, amended or modified Contract or Lease is terminable by Summit at no cost to Summit after the Closing on no more than thirty (30)
days’ notice, or (iv) the same is a purchase order for goods or services, or a reservation for rooms or other facilities, or
a written agreement, entered into in the ordinary course of business of each Project consistent with the practices and procedures in effect
as of the Contract Date. Nothing set forth in this Section 9.6.3 shall restrict the right of Existing Manager under any Existing
Management Agreement to enter into, amend or otherwise modify any Contracts or Leases, except that Investor shall not consent or approve
of the same (to the extent that Investor has the right under any Existing Management Agreement to withhold such consent or approval) except
in accordance with the requirements of this Section 9.6.3. Investor shall promptly provide to Summit a true and complete copy
of any such new Contract or Lease or amendment, modification, extension or renewal of any Contract or Lease if and when received by Existing
Manager.

 

9.6.4          
From and after two (2) Business Days prior to the expiration of the Due Diligence Period, Investor shall not terminate any Contract
or Lease unless the same expires or is terminated as a result of the default or nonperformance of a party thereto other than Investor.
Nothing set forth in this Section 9.6.4 shall restrict the right of Existing Manager under the Existing Management Agreement
to terminate such Contract or Lease, except that Investor shall not consent or approve of the same (to the extent that Investor has the
right under the Existing Management Agreement to withhold such consent or approval) except in accordance with the requirements of this
Section 9.6.4. Investor shall promptly provide to Summit notice of the termination of any Contract or Lease if and when received
by Existing Manager.

 

9.6.5          
Investor shall not market, sell, pledge, convey, remove or permit or suffer the removal of or offer to sell any portion of any
Project, except for Inventories or Consumables sold or consumed in the ordinary course of business and except for obsolete or worn out
Furnishings sold or disposed and replaced in the ordinary course of business.

 

9.6.6          
Investor shall reasonably cooperate (without any out-of-pocket cost or expense to Investor) with Summit in all reasonable respects
in connection with the transfer of the existing Permits (other than the Liquor Licenses, which shall be subject to the provisions of Section 9.10)
to Summit or Summit’s Designee or the issuance of new licenses and permits to Summit or Summit’s Designee, each to be effective
no earlier than the Closing.

 

9.6.7          
 Except as expressly set forth in below in Section 9.9, Investor shall not amend, modify or terminate the Existing Management
Agreements or the Existing Franchise Agreements.

 

    54 

     

    

 

9.7             
Group 3 Project Owners. Investor shall not (i) amend or modify any of the Group 3 Project Owner Organizational Documents
without the prior written consent of Summit; (ii) admit any additional members, limited partners or general partners (as applicable) into
any of the Group 3 Project Owners; (iii) transfer or grant any Encumbrance on any of the Subject Interests (including any of the membership
interests in any Group 3 Project Owner); (iv) consent to any of the Group 3 Project Owners acquiring or agreeing to acquire, by merging
or consolidating with, or by purchasing a substantial equity interest in or a substantial portion of the assets of, or by any other manner,
any business or any corporation, partnership, association or business organization or division thereof, or otherwise acquiring or agreeing
to acquire any material amount of assets other than in the ordinary course of business; (v) cause or allow any of the Group 3 Project
Owners to (A) make or rescind any express or deemed material election relating to Taxes; (B) materially change any of its methods of reporting
income or deductions for Federal income tax purposes, except as may be required by applicable law; or (C) file any material Tax Return
other than in a manner consistent with past custom and practice of the Group 3 Project Owners. The Group 3 Project Owners shall each provide
an IRS Schedule K-1 to each of Summit OP, Master REIT 2, and SubJV showing no income, gain, loss or deduction allocated to each such entity
during such each Group 3 Project Owner’s final taxable year.

 

9.8             
[Intentionally Omitted.]

 

9.9             
Management and Franchise Agreements.

 

9.9.1       
Prior to the expiration of the Due Diligence Period, but in no event later than the Closing Date, Summit and Investor shall use
commercially reasonable efforts to negotiate new Management Agreements for the Projects with Project Manager on the terms agreed-to between
the Parties on or about the Effective Date. Prior to the Closing, Investor shall execute and deliver, and shall use commercially reasonable
efforts to cause Project Manager to execute and deliver (or acknowledge, as applicable) (i) the Management Agreements, and (ii) an Assignment
of Management Agreement for each Project, in the form agreed to by Summit and Project Manager prior to the expiration of the Due Diligence
Period. Notwithstanding the foregoing, the Projects shall be delivered at the Closing free and clear of the Existing Management Agreements.
Investor will (and shall use commercially reasonable efforts to cause Existing Manager to) reasonably cooperate with Summit and Project
Manager in the transition of the management of the Projects.

 

9.9.2       
Within three (3) days of the Effective Date, Summit shall submit applications with each Franchisor to obtain new Franchise Agreements
on substantially the same terms and conditions as the Existing Franchise Agreements (other than the PIPs attached to each Franchise Agreement
which shall be replaced with new PIPs negotiated in good faith between Summit and each Franchisor), including an assumption of the Key
Money Obligations. Summit shall indemnify, and hold Investor harmless from, any liquidated damages, fees, fines or penalties resulting
from the termination of the Existing Franchise Agreements. This Section 9.9.2 shall survive the Closing.

 

    55 

     

    

 

9.10         
 Liquor Licenses. Summit (or Summit’s designee) shall use commercially reasonable efforts to obtain and/or transfer
all licenses, permits and approvals required under any Legal Requirements for the continued sale and service of alcoholic beverages at
each Project within one hundred twenty (120) days of the Closing Date (the “Liquor Licenses”). The current holder of
each of the Liquor Licenses for each Project is listed on Exhibit G (in such capacity, the “Liquor Licensee”).
Summit (or Summit’s Designee), at its sole cost and expense, shall submit all necessary applications and other materials to the
appropriate governmental authority, shall thereafter use commercially reasonable efforts to effect the transfer of the Liquor Licenses
to Summit (or Summit’s Designee). Investor shall reasonably cooperate (and cause Liquor Licensee to cooperate), at no material cost
or expense to Investor or Liquor Licensee, with Summit’s (or Summit’s Designee’s) efforts to cause the Liquor Licenses
to be transferred in accordance with the terms hereof, including without limitation execute and deliver and forms or other documents necessary
to effectuate the transfer of the Liquor License. If requested by Summit or required or permitted by Law, Investor shall cause Liquor
Licensee to execute and deliver to Summit (or Summit’s Designee), an interim concession agreement (the “Interim Liquor
Agreement”), in form and substance reasonably satisfactory to Investor and Summit, that will permit Seller (or Seller’s
Designee) to continue the purchase, storage, sale and service of alcoholic beverages at each Project consistent with the practices and
procedures in effect as of the Effective Date, and shall provide for customary indemnities from Summit for the benefit of Liquor Licensee.
Notwithstanding anything to the contrary in this Section 9.10, the issuance or the transfer of the Liquor Licenses or execution
and delivery of the Interim Liquor Agreement by Investor or Liquor Licensee shall be a condition to the Closing.

 

9.11          Tax
Incentive Projects and Historic Tax Credit Projects. At the Closing, Investor shall assign, and Summit shall assume, all tax
rebates, tax increment financing, tax and development incentives and benefits (collectively, the “Financial
Incentives”) accruing for the benefit of the Tax Incentive Projects, as set forth in Exhibit H-1, subject to Sections
3.3 and 4.1, other than the Historic Tax Credits. In addition, the Franchise Agreement for the Project described in Exhibit
A-7 [Springhill Suites Dallas Downtown] will include the obligation of Franchisor to make a key money contribution of Five
Hundred Thousand and 00/100 Dollars ($500,000.00) to owner thereunder upon completion of the property improvement plan required
pursuant to such Franchise Agreement (“Key Money”), as further set forth in Exhibit H-1. Summit’s
assumption shall be subject to the Receipt Allocation Methodology detailed in Exhibit H-2. Prior to the Closing, Investor
shall use commercially reasonable efforts to cause each applicable Governmental Authority (or other applicable party) to acknowledge
such assignment prior to the Closing. Summit shall not assume, and Investor shall use commercially reasonable efforts to cause to be
terminated or unwound prior to the Closing, all Historic Tax Credit Agreements for the Historic Tax Credit Projects except with
respect to (a) subject to this Section 9.11, the state historic rehabilitation credits related to the Canopy New Orleans,
which shall be retained by Investor along with any liabilities related to such credits, and (b) AC/Residence Inn Dallas, for which
the Parties shall cooperate in good faith, prior to the expiration of the Due Diligence Period, to structure the contribution of
such Project to maintain the Historic Tax Credits, agree to the applicable Required Transfer Documents and agree to appropriate and
commercially reasonable representations, warranties and covenants with respect thereof. In connection with the foregoing, from and
after the Closing Date, Summit shall cooperate in a commercially reasonable manner with Investor to permit Investor, its consultants
and contractors, to review and audit the Books and Records of the Canopy New Orleans, during normal business hours upon reasonable
notice, in order to obtain final approval from the applicable Governmental Authority of the state historic rehabilitation tax
credits generated from the development of such Project, at no cost to Summit (or its Affiliates). In addition, if and to the extent
that a Financial Incentive is not assigned to Summit on the Closing Date, Summit shall enter into a separate written agreement to
permit Inventor to comply with reporting requirements for any such unassigned Financial Incentives on mutually agreeable terms at no
cost to Summit, which agreement shall include, among other things, the right of the applicable State or other Governmental Authority
to inspect the applicable Project. This Section 9.11 is a material component of the Purchase Price, and if any of the
Financial Incentives or Key Money is not assignable to or assumable by Summit at the Closing, or the Historic Tax Credit Agreements
are not unwound pursuant to this Section 9.11 at or prior to the Closing, then the Parties shall have the rights set forth in Section
3.3.

 

    56 

     

    

 

9.12         
WARN Act. Investor shall not (and shall request that the Existing Managers not) give any termination notices under the WARN
Act to any Employees or governmental authorities. Summit shall (or shall cause Project Manager to) employ a sufficient number of Employees
on sufficient terms and conditions to avoid applicability of the WARN Act to the transaction contemplated by this Agreement. Summit shall
indemnify, defend and hold harmless the Investor Parties from and against any Damages that may be incurred by, or asserted against, any
such indemnified party arising out of or relating to Summit’s or any Investor Party’s failure to comply with the WARN Act
in connection with the transactions described in this Agreement. Subject to this Section 9.12, Investor shall reasonably cooperate
(and, subject to the terms of the Existing Management Agreement, direct Existing Manager to cooperate) with Summit in such manner as Summit
may reasonably request to enable Summit to meet with the Employees regarding the sale of the Projects to Summit. This Section 9.12
shall survive the Closing.

 

9.13         
Assumed Debt. Within three (3) days of the Effective Date, Investor shall notify each Lender listed in Exhibit E-1
of Summit’s proposed purchase of the Property and/or the Subject Interests, and the intention of Investor to assign, and Summit
(or Summit’s Designee) to assume, the applicable Assumed Debt. Notwithstanding the foregoing, Investor’s failure to assign
the Assumed Debt shall not be a default hereunder. For the avoidance of doubt, the Assumed Debt listed in Exhibit E-2 is intended
to be repaid at the Closing.

 

9.14         
Effect of Casualty or Condemnation.

 

9.14.1     Investor shall give Summit written notice of the following promptly upon becoming aware of the same: (i) any pending or threatened
condemnation affecting any Project prior to the Closing, and (ii) any material fire or other casualty affecting any Project and
occurring prior to the Closing.

 

9.14.2       If
prior to the Closing, (i) condemnation proceedings are commenced against all or any portion of any Project, and such
proceedings are not reasonably expected to have a Material Adverse Effect on a Project; or (ii) any Project is damaged by fire
or other casualty and the cost of repairing such damage is reasonably estimated by Investor and Summit, each acting reasonably and
in good faith, is an amount that is, in each case, less than seventeen and one-half percent (17.5%) of the Allocated Purchase Price
for such Project (the matters described in clauses (i) and (ii) above, collectively, the “Casualty and Condemnation
Termination Threshold”), then this Agreement shall continue in full force and effect and the Purchase Price shall not be
reduced except as hereinafter set forth, but Summit shall be entitled to an assignment of, and the right to make a claim for and to
retain, all of the proceeds payable to Investor of fire or other casualty insurance (other than those proceeds expended by or on
behalf of Investor prior to the Closing to restore the applicable Project), all business interruption insurance proceeds (if any)
payable with respect to the period from and after the Closing, and all condemnation awards payable to Investor (other than any
portion of the award in respect of income lost prior to the Closing or expended by or on behalf of Investor prior to the Closing to
restore the Project or in connection with the collection of the award), as the case may be, and Investor shall have no obligation to
repair or restore the applicable Project; provided, however, that in the case of any insured casualty,
(A) Investor shall promptly file appropriate claims under all applicable insurance policies and use commercially reasonable
efforts both before and after the Closing to collect the maximum amount of insurance proceeds available under such policies on
behalf of Summit, (B) Summit shall receive a credit against the cash due at the Closing for the amounts of any uninsured
damage, any self-insured retention and the deductible on such casualty insurance policy, less any amounts reasonably and actually
expended by Investor to remedy any unsafe conditions at the applicable Project, to repair or restore any damages or otherwise file
and pursue a claim under paragraph (A) (including without limitation the cost of a public adjuster), in no event to exceed the
amount of the proceeds, (C) all right, title and interest of Investor in and to any insurance proceeds resulting from such
casualties shall be the property of Summit (other than on account of business or rental interruption relating to the period prior to
the Closing), less any amounts reasonably and actually expended by Investor to remedy any unsafe conditions at the Project, to
repair or restore any damages or otherwise file and pursue a claim under paragraph (A) (including without limitation the cost of a
public adjuster), in no event to exceed the amount of the proceeds, and (D) Investor will provide to Summit at the Closing, or
as soon thereafter as practicable, written assignments of the applicable insurance policies with respect to the casualty, or if the
policies themselves are not assignable, the proceeds collectible thereunder, to the extent permitted by the terms of such policies
and by the insurers.

 

    57 

     

    

 

9.14.3       If
prior to the Closing, (i) condemnation proceedings are commenced against all or any portion of the Project and such
condemnation will likely exceed the Casualty and Condemnation Termination Threshold, or (ii) the Project is damaged by fire or
other casualty and such damage will likely exceed the Casualty and Condemnation Threshold, Summit shall have the right, upon notice
in writing to Investor delivered within ten (10) days after Investor gives Summit notice of such matter as described in this Section
9.14.3, to terminate this Agreement with respect to the applicable Project, whereupon this Agreement shall terminate as to such
Project, and such Project shall be removed from the transactions contemplated by this Agreement pursuant to Sections 3.3 and 4.3.2
and the Purchase Price shall be reduced in accordance with Section 3.3 and Exhibit D. If Summit does not timely elect,
or is not entitled, to terminate this Agreement with respect to a Project as set forth above, the Purchase Price shall not be
reduced except as hereinafter set forth, but Summit shall be entitled to an assignment of, and the right to make a claim for and to
retain, all of the proceeds payable to Investor of fire or other casualty insurance (other than those proceeds expended by or on
behalf of Investor prior to the Closing to restore such Project), all business interruption insurance proceeds (if any) payable with
respect to the period from and after the Closing, and all condemnation awards payable to Investor (other than any portion of the
award in respect of income lost prior to the Closing or expended by or on behalf of Investor prior to the Closing to restore the
Project or in connection with the collection of the award), as the case may be, and Investor shall have no obligation to repair or
restore the applicable Project; provided, however, that in the case of any insured casualty, (A) Investor shall promptly file
appropriate claims under all applicable insurance policies and use commercially reasonable efforts both before and after the Closing
to collect the maximum amount of insurance proceeds available under such policies on behalf of Summit, (B) Summit shall receive
a credit against the cash due at the Closing for the amounts of any uninsured damage, any self-insured retention and the deductible
on such casualty insurance policy, less any amounts reasonably and actually expended by Investor to remedy any unsafe conditions at
the applicable Project or to repair or restore any damages, in no event to exceed the amount of the proceeds, (C) all right,
title and interest of Investor in and to any insurance proceeds resulting from such casualties shall be the property of Summit
(other than on account of business or rental interruption relating to the period prior to the Closing), less any amounts reasonably
and actually expended by Investor to remedy any unsafe conditions at the applicable Project or to repair or restore any damages, in
no event to exceed the amount of the proceeds, and (D) Investor will provide to Summit at the Closing, or as soon thereafter as
practicable, written assignments of the applicable insurance policies with respect to the casualty, or if the policies themselves
are not assignable, the proceeds collectible thereunder, to the extent permitted by the terms of such policies and by the
insurers.

 

9.14.4      
If necessary to allow Summit the full ten (10) day period described in Section 9.14.3, the Closing Date shall be automatically
extended until three (3) Business Days after Summit has made, or has or is deemed to have waived, its election pursuant to Section
9.14.3.

 

    58 

     

    

 

9.15         
Ground Leases. From and after the Effective Date, Investor shall use commercially reasonable efforts, and shall cooperate
with Summit, to obtain (a) the Ground Lease Consent, and (b) an estoppel certificate from each Ground Lessor, completed and duly executed
by such Ground Lessor, in substantially the form required by the underlying Ground Lease or otherwise in a form to be reasonably agreed
to by Summit and such Ground Lessor (a "Ground Lease Estoppel") prior to the expiration of the Due Diligence Period.
Prior to the Closing Date, (i) Investor shall comply with its obligations under each Ground Lease, and (ii) without the prior written
consent of Summit (such consent not to be unreasonably withheld or delayed), Investor shall not modify or amend (or permit any Project
Owner to modify or amend) any Ground Lease.

 

9.16         
Claim for Breach. In connection with this Article IX, if any covenant that expressly survives the Closing is not
performed in accordance with its terms, then, subject to Sections 8.1 and 8.5, the Party entitled to receive or demand performance
shall have a claim against the breaching Party under this Agreement and the Ancillary Agreements.

 

    59 

     

    

 

 

ARTICLE
X

BROKERS

 

Investor and Summit
represent to each other that they have dealt with no agent or broker who in any way has participated as a procuring cause of the
contribution or the entering into of the transactions contemplated hereby. Investor shall indemnify Summit for any Losses suffered
by Summit by reason of a Claim against Summit brought by any broker, agent, or finder with whom Investor has dealt arising out of
this Agreement in violation of the foregoing representation and warranty. Summit shall indemnify Investor for any Losses suffered by
Investor by reason of any Claim against Investor brought by any other broker, agent, or finder with whom Summit has dealt arising
out of this Agreement in violation of the foregoing representation and warranty. The provisions of this Article X shall
survive the Closing and any termination of this Agreement.

 

ARTICLE
XI

MISCELLANEOUS

 

11.1         
Notices. All notices, demands, requests or other communications (collectively, “Notices”) that may be
or are required to be given, served, or sent by any party to any other party pursuant to this Agreement shall be in writing and shall
be: (i) hand delivered; (ii) transmitted by e-mail; or (iii) sent by Federal Express or other nationally recognized overnight delivery
service addressed to the recipient at its address set forth below (or at such other address as the recipient may theretofore have designated
in writing). Each Notice that shall be hand delivered or sent by Federal Express in the manner described shall be deemed sufficiently
given, served, sent, received, or delivered for all purposes on the day the Notice is delivered to the addressee (with the return receipt,
the delivery receipt, or the affidavit of messenger being deemed conclusive (but not exclusive) evidence of such delivery), provided,
that, such day is a Business Day (if such day is not a Business Day, such Notice shall be deemed given and received on the first Business
Day following such day), or if delivery is refused, then on the day that delivery of the Notice is refused by the addressee upon presentation,
provided, that, such day is a Business Day (if such day is not a Business Day, such Notice shall be deemed given and received on
the first Business Day following such day). Each Notice that shall be e-mailed shall be deemed sufficiently given, served, sent, received,
or delivered for all purposes on the date of such e-mail provided that such e-mail is received prior to 5:00 P.M. (Central Time) on a
Business Day (if such email is received on a day that is not a Business Day or such email is received after 5:00 P.M. (Central Time) on
a Business Day, such Notice shall be deemed given and received on the first Business Day following such day). Subject to the above, all
Notices shall be addressed as follows:

 

	If to Investor:	
    NewcrestImage Holdings, LLC

    1785 State Highway 26 – Suite 400

    Grapevine, Texas 76051

    Attention:

    e-mail:

    Attention:

    e-mail:

	 	 
	with a copy to:	
    Goodwin Procter LLP

    520 Broadway, Suite 500

    Santa Monica, California 90401

    Attention:

    e-mail:

 

    60

     

    

 

	If to Summit:	
    c/o Summit Hotel Properties, Inc.

    13215 Bee Cave Parkway, Suite B-300

    Austin, Texas 78738

    Attention:

    e-mail:

	 	 
	with a copy to:	
    Hunton Andrews Kurth LLP

    951 Byrd Street

    Richmond, Virginia 23219

    Attention:

    e-mail:

 

11.2         
Assignment/Successors and Assigns. Neither Summit nor Investor shall have the right to assign this Agreement without the
prior consent of the other Party. Subject to the foregoing, all of the terms and conditions of this Agreement are hereby made binding
upon the executors, heirs, administrators, successors and assigns of the respective parties hereto, subject to the provisions of this
Agreement. Notwithstanding the foregoing, if Summit desires to assign the right to receive the Projects at the Closing to one or more
recently formed entities that are affiliated with Summit (each, a “Summit’s Designee”), Summit shall give notice
to Investor of such assignment no later than two (2) Business Days prior to the scheduled Closing Date. No such assignment shall delay
or otherwise adversely affect the Closing. Upon any such assignment, Summit’s Designee shall be deemed to have assumed for the benefit
of Investor all obligations of Summit under this Agreement, but such assignment shall not relieve Summit of its obligations under this
Agreement, which obligations shall remain the joint and several obligations of Summit. Investor may, in its sole and absolute discretion,
pursue any Claim against, or seek to enforce or demand performance from Summit or Summit’s Designee, in respect to any Required
Transfer Document, without prejudice to its rights thereafter to pursue such Claim or demand against Summit or Summit’s Designee,
as the case may be.

 

11.3         
Gender and Number. Words of any gender used in this Agreement shall be held and construed to include any other gender, and
words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

 

11.4         
Captions. The captions in this Agreement are inserted only for the purpose of convenient reference and in no way define,
limit or prescribe the scope or intent of this Agreement or any part hereof.

 

11.5         
Not Construed Against Drafter. No provision in this Agreement shall be construed by any court or other judicial authority
against any party hereto by reason of such party’s being deemed to have drafted or structured such provisions.

 

    61

     

    

 

11.6         
Entire Agreement. This Agreement and the Exhibits attached hereto constitute the entire contract between the Parties hereto
and there are no other oral or written promises, conditions, representations, understandings or terms of any kind as conditions or inducements
to the execution hereof and none have been relied upon by either Party.

 

11.7         
 Recording. The Parties agree that neither this Agreement nor any memorandum hereof shall be recorded in any office for
the recording of real property records.

 

11.8         
Attorneys’ Fees. If there is any proceeding to enforce any provisions or rights arising under this Agreement or any
Ancillary Agreement, the unsuccessful party in such proceeding, as determined by the fact finder, agrees to pay the successful party,
as determined by the court, all costs and expenses, including, but not limited to, reasonable attorneys’ fees incurred by the successful
party, such fees to be determined by the court. For purposes of this Section 11.8, a party will be considered to be the “successful
party” if (a) such party initiated the proceeding and substantially obtained the relief which it sought (whether by judgment, voluntary
agreement or action of the other party, trial, or alternative dispute resolution process), or (b) such party did not initiate the proceeding
and either (i) received a judgment in its favor, or (ii) did not receive judgment in its favor, but the party receiving the judgment did
not substantially obtain the relief which it sought.

 

11.9         
Time of Essence. Time is of the essence of each and every provision of this Agreement. If any of the dates contemplated
herein shall not fall on a Business Day, such deadline or expiration date shall be deemed to fall upon the next Business Day.

 

11.10     
Execution. This Agreement may be executed by the parties in counterparts in which event each shall be deemed an original,
but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by
facsimile or electronic PDF shall be effective as delivery of an original. Delivery of an executed counterpart of this Agreement by facsimile
or electronic PDF shall be effective as delivery of an original. Further, the parties irrevocably and unreservedly agree that the Agreements,
the Ancillary Agreements and all documents delivered in connection therewith may be executed by way of electronic signatures and the parties
agree that such document(s), or any part thereof, shall not be challenged or denied any legal effect, validity and/or enforceability solely
on the ground that it is in the form of an electronic record.

 

11.11     
Governing Law. This Agreement shall be governed and construed in accordance with the internal Laws of the State of Texas
without reference to choice of Law principles which might indicate that the Law of some other jurisdiction should apply.

 

11.12     
Affiliate Performance. If and to the extent that any of the transactions outlined herein shall require an Affiliate of a
Party to execute and deliver any of the Required Transfer Documents or to perform any act necessary to accomplish the transactions, each
Party shall be required to cause such respective Affiliate to execute the Required Transfer Document or perform the applicable act (failing
which such shall be a default by the Party hereunder).

 

11.13     
Waiver of Jury Trial. EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY PROCEEDINGS BROUGHT BY THE OTHER PARTY IN CONNECTION
WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

    62

     

    

 

11.14      No
Third-Party Beneficiaries. This Agreement is a contract between Summit and Investor for their mutual benefit and no third person
or party other than the Escrow Agent or Title Company shall have any right, claim or benefit by virtue of the provisions hereof.
Notwithstanding the foregoing, each Debt Financing Source shall be an express and intended third party beneficiary of the Lender
Designated Sections and each of such Sections shall expressly inure to the benefit of the Debt Financing Source and each Debt
Financing Source (and its successors and assigns) shall be entitled to rely on and enforce the provisions of such Sections.

 

11.15     
Exculpation For Liability. No constituent partner or member in or agent of Summit or Investor, nor any advisor, trustee,
director, officer, employee, beneficiary, shareholder, member, partner, participant, representative or agent of any partnership, limited
liability company, corporation, trust or other entity that has or acquires a direct or indirect interest in Summit or Investor, shall
have any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into
under or pursuant to the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times,
heretofore or hereafter, and each Party to this Agreement and their successors and assigns and, without limitation, all other persons
and entities, shall look solely to the other Party’s assets for the payment of any claim or for any performance, and each Party,
on behalf of itself and its successors and assigns, hereby waives any and all such personal liability.

 

11.16     
Submission to Jurisdiction. ANY ACTION OR PROCEEDING AGAINST THE PARTIES RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE
BROUGHT AND ENFORCED IN THE COURTS OF THE STATE OF TEXAS OR (TO THE EXTENT SUBJECT MATTER JURISDICTION EXISTS THEREFORE) OF THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS, AND THE PARTIES IRREVOCABLY SUBMIT TO THE JURISDICTION OF SUCH COURTS IN RESPECT
OF ANY SUCH ACTION OR PROCEEDING. THE PARTIES IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT
THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH ACTION OR PROCEEDING IN THE COURTS OF THE STATE OF TEXAS OR THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS AND ANY CLAIM THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

11.17     
Exclusivity. Investor shall not, and will not permit any agent, partner or affiliate, to accept or entertain any offers,
negotiate, solicit interest or otherwise enter into discussions involving the sale or disposition of all or any of part of the Projects
or the Subject Interests (or any beneficial interest therein) during the Due Diligence Period, and if Summit elects to proceed with the
transactions described herein and deposits the Additional Deposit with Escrow Agent in accordance with Section 2.8.1, then this
Section 11.17 shall remain in effect through the Closing Date.

 

    63

     

    

 

11.18     
Bulk Sales Compliance. Investor and Summit acknowledge that they do not intend to comply with and have agreed to
waive the provisions of any statutory bulk sale or similar requirements applicable to the transactions contemplated by this Agreement,
and Investor and Summit agree to rely upon the adjustment and indemnification provisions of this Agreement to address any matters that
would otherwise be subject to such bulk sale requirements. This Section 11.18 shall survive the Closing.

 

11.19     
 Investors’ Representative. Each Investor and Investor Party hereby irrevocably designates and appoints Newcrest (“Investor’s
Representative”) as the agent of each such Investor and Investor Party under this Agreement and the Access Agreement. Each such
Investor and Investor Party irrevocably authorizes Investor’s Representative, as the agent for such Investor, to take such action
on its behalf and in Investor's Representative’s designated capacity under the provisions of this Agreement and the Access Agreement
and to exercise such powers and perform such duties as are expressly delegated to Investor’s Representative by the terms of this
Agreement and any separate power of attorney or other agreement which gives Investor’s Representative such authority and power (a
copy of which has been provided by each Investor to Summit). Summit is hereby authorized to rely on all actions and/or communications
(oral or written) by, from and/or with Investor’s Representative as the action or communication of each such Investor.

 

11.20     
Indemnification of Escrow Agent . In no event shall Escrow Agent be liable for any act or failure to act under the provisions
of this Agreement applicable to Escrow Agent except where its acts or omissions are the result of its gross negligence or willful misconduct.
Summit and Investor hereby indemnify and hold harmless Escrow Agent against and from any loss, liability, or damage (including actual
and reasonable costs of litigation and counsel fees) arising from or in connection with the performance of its duties under this Agreement.

 

11.21      Debt
Financing Source; Exculpation. Notwithstanding anything to the contrary contained in this Agreement, each Party: (1) except for
claims by Summit against any Debt Financing Source pursuant to the Debt Commitment Letter and any definitive documents related
thereto, agrees that (A) none of the Parties nor any of their respective subsidiaries, Affiliates, directors, officers, employees,
agents, partners, managers, members or shareholders shall have any rights or claims against any Debt Financing Source in any way
relating to this Agreement or any of the transactions contemplated hereby, or in respect of any oral representations made or alleged
to have been made in connection herewith or therewith, including any dispute arising out of or relating in any way to the Debt
Commitment Letter or the performance thereof or the financings contemplated thereby, whether at law or equity, in contract, in tort
or otherwise and (B) no Debt Financing Source shall have any liability (whether in contract, in tort or otherwise) to any Party or
any of their respective subsidiaries, Affiliates, directors, officers, employees, agents, partners, managers, members or
shareholders for any obligations or liabilities of any Party under this Agreement or for any claim based on, in respect of, or by
reason of, the transactions contemplated hereby or in respect of any oral representations made or alleged to have been made in
connection herewith or therewith, including any dispute arising out of or relating in any way to the Debt Commitment Letter or the
performance thereof or the financings contemplated thereby, whether at law or equity, in contract, in tort or otherwise, and any
such actions are disclaimed and released in full, and (2)(i) agrees that it will not bring or support any Person in any Legal
Proceeding, cause of action, claim, cross-claim or third-party claim of any kind or description, whether in law or in equity,
whether in contract or in tort or otherwise, against any Debt Financing Source in respect of the transactions contemplated by this
Agreement, including, but not limited to, any dispute arising out of or relating in any way to any Debt Commitment Letter or the
performance thereof or the financings contemplated thereby, in any forum other than the federal and New York State courts located in
the Borough of Manhattan of the City of New York; (ii) agrees that, except as specifically set forth in the any Debt Commitment
Letter, all claims or causes of action (whether at law, in equity, in contract, in tort or otherwise) against any Debt Financing
Source, in any way relating to a Debt Commitment Letter, or the performance thereof or the financings contemplated thereby, shall be
exclusively governed by, and construed in accordance with, the laws of the State of New York; and (iii) hereby irrevocably and
unconditionally waives any right such party may have to a trial by jury in respect of any litigation (whether in law or in equity,
whether in contract or in tort or otherwise) directly or indirectly arising out of or relating in any way to the Debt Commitment
Letter or the performance thereof or the financings contemplated thereby. Each Debt Financing Source is an intended third-party
beneficiary of this Section 11.21 and shall be entitled to the protections of this provision.

 

    64

     

    

 

11.22     
Waiver; Amendment. Before the Closing, any provision of this Agreement may be (a) waived by the Party benefited by
the provision, but only in writing, or (b) subject to applicable Law, amended or modified at any time, but only by a written agreement
executed in the same manner as this Agreement. The failure of any Party to assert any of its rights hereunder or under applicable Law
shall not constitute a waiver of such rights and, except as otherwise expressly provided herein, no single or partial exercise by any
Party of any of its rights hereunder precludes any other or further exercise of such rights or any other rights hereunder or under applicable
Law. Notwithstanding anything to the contrary contained herein, the Lender Designated Sections and any definitions used in such Sections
of this Agreement, to the extent a modification, waiver or termination of such definition would modify the substance of any Lender Designated
Section, may not be modified, waived or terminated in a manner that is adverse in any respect to any Debt Financing Source without the
prior written consent of such Debt Financing Source.

 

11.23     
Survival. The provisions of this Article XI shall survive the Closing or termination of this Agreement.

  

[Signatures appear on the two pages S-1 and S-2.]

 

    65

     

    

 

IN WITNESS WHEREOF
the parties hereto have executed this Contribution and Purchase Agreement effective as of the date first written above.

 

	 	SUMMIT:
	 	 
	 	SUMMIT HOTEL OP, LP,

a Delaware limited partnership
	 	 
		By:	SUMMIT HOTEL GP, LLC, its general partner
	 	 
	 	 	By:	/s/ Christopher Eng
	 	 	 	Name:	Christopher Eng
	 	 	 	Title:	Secretary

 

	 	SUMMIT HOSPITALITY JV, LP,

a Delaware limited partnership

 

		By:	SUMMIT HOTEL OP, LP,

a Delaware limited partnership

 

		 	By:	SUMMIT HOTEL GP, LLC,

its general partner

 

	 	 	By:	/s/ Christopher Eng
	 	 	 	Name:	Christopher Eng
	 	 	 	Title: 	Secretary

  

[Signatures of Newcrest appear on next page S-2.]

 

     

     

    

 

IN WITNESS WHEREOF
the parties hereto have executed this Contribution and Purchase Agreement effective as of the date first written above.

 

	 	INVESTOR:
	 	 
	 	NEWCRESTIMAGE HOLDINGS, LLC,

a Delaware limited liability company
	 	 
	 	By:	/s/ Mehul Patel
	 	 	Name:	Mehul Patel
	 	 	Title:	Manager

  

	 	NEWCRESTIMAGE HOLDINGS II, LLC,

a Texas limited liability company
	 	 
	 	By:	/s/ Mehul Patel
	 	 	Name:	Mehul Patel
	 	 	Title:	Manager

 

     

     

    

  

List of Exhibits and Schedules

 

	A-1-A-25	Description of Projects/Project Exhibits
	B 	Form of Assignment of Membership Interests
	C	[Intentionally Omitted]
	D	Purchase Price Allocations
	E-1	Assumed Debt
	E-2	Assumed Debt (to be repaid at the Closing)
	F	[Intentionally Omitted]
	G	Liquor License Holders
	H-1	Financial Incentives
	H-2	Key Money Obligations
	 	 
	2.8.1	Escrow Agent’s wiring instructions
	3.1	Prorations and Adjustments
	5.1.13	Capital Expenditure Projects
	1	[Intentionally Omitted]
	2	[Intentionally Omitted]
	3	Disclosure Schedule
	4	Ownership Chart

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]