Document:

EX-10.1

 Exhibit 10.1 

[EXECUTION COPY] 
 Bank
of America, N.A. 
 100 Federal Street 

Boston, Massachusetts 02110 

September 26, 2018 
 Destination Maternity Corporation 

232 Strawbridge Drive 
 Moorestown, New Jersey 08057 

			
	 Attention:
	  	Thomas J. McCracken
		  	Senior Vice President, Finance

 Commitment Letter 

$76,000,000 Senior Credit Facilities 

Ladies and Gentlemen: 
 Destination Maternity Corporation, a
Delaware corporation (“Company” or “you”) has advised Bank of America, N.A. (“Bank of America”) that the Borrowers (as defined in the Summary of Terms referred to below) are
seeking a new senior secured asset-based credit facility in an aggregate principal amount of $76,000,000 comprised of (i) a first-in last-out asset-based term loan
facility of $24,000,000 (the “FILO Term Loan Facility”) and (ii) a senior asset-based revolving credit facility of $52,000,000 (the “ABL Facility”, and together with the FILO Term Loan Facility,
the “Senior Credit Facilities”). In connection with the foregoing, Bank of America is pleased to offer to be the sole administrative agent and collateral agent (in such capacities, the “Administrative
Agent”) for the Senior Credit Facilities and is pleased to offer its commitment to lend the entire amount of the Senior Credit Facilities, upon and subject to the terms and conditions set forth in this letter and in the Summary of Terms
and Conditions attached as Exhibit A hereto and incorporated herein by this reference (the “Summary of Terms” and together with this commitment letter, collectively, the “Commitment Letter”).
Bank of America is pleased to advise you of its willingness in connection with the foregoing commitment to act as sole lead arranger and sole bookrunner for the Senior Credit Facilities (in such capacities, the “Lead
Arranger” and, together with Bank of America in its capacity as a lender and as Administrative Agent, collectively the “Commitment Parties”). 

Bank of America will act as sole Administrative Agent and the sole Lead Arranger for the Senior Credit Facilities. No additional agents, co-agents or arrangers will be appointed and no other titles will be awarded without the prior written approval of Bank of America. 

The commitment of Bank of America hereunder and the undertaking of the Lead Arranger to provide the services described herein are subject to the satisfaction
of each of the following conditions precedent in a manner acceptable to the Commitment Parties: (a) the completion of a due diligence review of the assets, liabilities (including contingent liabilities) and businesses of the Company and its
subsidiaries in scope and with results satisfactory to the Commitment Parties in our sole and absolute discretion; (b) the 

 
accuracy and completeness in all material respects of all representations that you and your affiliates make to the Commitment Parties pursuant to this Commitment Letter and the Fee Letter and
your compliance with the terms of this Commitment Letter (including the Summary of Terms) and the Fee Letter (as hereinafter defined); (c) prior to the Closing Date (as hereinafter defined), there shall be no competing offering, placement or
arrangement of any debt securities or bank financing by or on behalf of the Company or any of its subsidiaries; (d) the negotiation, execution and delivery of definitive documentation for the Senior Credit Facilities consistent with the Summary
of Terms and otherwise satisfactory to the Commitment Parties; and (e) no change, occurrence or development shall have occurred or become known to Bank of America since February 3, 2018, that has had or could reasonably be expected to have
(a) a material adverse effect upon the operations, business, assets, liabilities (actual or contingent), or financial condition of any Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of any Borrower
or any Guarantor to perform its obligations under any Loan Document to which it is a party; or (c) a material impairment of the rights and remedies of the Administrative Agent or the Lenders under any Loan Document or a material adverse effect
upon the legality, validity, binding effect or enforceability against any Borrower or any Guarantor of any Loan Document to which it is a party (a “Material Adverse Effect”). 

It is anticipated that, other than Bank of America, no additional lenders will provide any portion of the Senior Credit Facilities as of the Closing Date (as
hereinafter defined); provided, however, that the Lead Arranger retains the right to syndicate the Senior Credit Facilities to achieve a syndication of the Senior Credit Facilities that is satisfactory to the Lead Arranger and you. If
the Lead Arranger commences syndication of the Senior Credit Facilities, you agree to actively assist the Lead Arranger in achieving a syndication of the Senior Credit Facilities that is satisfactory to the Lead Arranger and you. Such assistance
shall include your (a) providing and causing your advisors to provide the Commitment Parties and any lenders upon request with all information reasonably deemed necessary by the Commitment Parties to complete syndication (including the
Projections (as hereinafter defined), the “Information”), (b) assisting in the preparation of materials to be used in connection with the syndication of the Senior Credit Facilities (collectively with the Summary of Terms,
the “Information Materials”), (c) using your commercially reasonable efforts to ensure that any syndication efforts of Bank of America benefit materially from your existing banking relationships, and (d) otherwise
assisting the Commitment Parties in their syndication efforts, including by making your officers and advisors available from time to time to attend and make presentations regarding the business and prospects of the Company and its subsidiaries, as
appropriate, at one or more meetings of prospective lenders. 
 It is understood and agreed that Bank of America will manage and control all aspects of the
syndication, if any, in consultation with you, including decisions as to the selection of prospective lenders and any titles offered to proposed lenders, when commitments will be accepted and the final allocations of the commitments among the
lenders. It is understood that no lender participating in the Senior Credit Facilities will receive compensation from you in order to obtain its commitment, except on the terms contained herein and in the Summary of Terms and the Fee Letter. 

You represent, warrant and covenant that (a) all financial projections concerning the Company and its subsidiaries that have been or are hereafter made
available to Bank of America or any lender by you or any of your representatives (or on your or their behalf) or by the Company or any of its subsidiaries or representatives (or on their behalf) (the “Projections”) have been
or will be prepared in good faith based upon assumptions you believe to be reasonable at the time and (b) all Information, other than Projections, which has been or is hereafter made available to Bank of America or any lender by you or any of
your representatives (or on your or their behalf) in connection with any aspect of the transactions contemplated under the Senior Credit Facilities, as and when furnished (and giving effect to all supplements and updates thereto), is and will be
complete and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the 

  
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statements contained therein not misleading. You agree to furnish us with further and supplemental information from time to time until the date of the initial borrowing under the Senior Credit
Facilities (the “Closing Date”) and, if requested by us, for a reasonable period thereafter as is necessary to complete any syndication of the Senior Credit Facilities so that the representation, warranty and covenant in the
immediately preceding sentence are correct on the Closing Date and on such later date on which any syndication of the Senior Credit Facilities is completed as if the Information were being furnished, and such representation, warranty and
covenant were being made, on such date. In issuing this commitment and in arranging the Senior Credit Facilities, the Commitment Parties are and will be using and relying on the Information without independent verification thereof. 

You acknowledge that Bank of America on your behalf may make available Information Materials to proposed lenders by posting the Information Materials on
IntraLinks, SyndTrak or another similar electronic system. In connection with any syndication of the Senior Credit Facilities, unless the parties hereto otherwise agree in writing, you shall be under no obligation to provide Information Materials
suitable for distribution to any prospective lender (each, a “Public Lender”) that has personnel who do not wish to receive material non-public information (within the
meaning of the United States federal securities laws, “MNPI”) with respect to the Company, its respective affiliates or any other entity, or the respective securities of any of the foregoing. You agree, however,
that the definitive loan documentation will contain provisions concerning Information Materials to be provided to Public Lenders and the absence of MNPI therefrom. Prior to distribution of Information Materials to prospective lenders, you shall
provide us with a customary letter authorizing the dissemination thereof. 
 By executing this Commitment Letter, you agree to reimburse Bank of America
from time to time on demand for all reasonable and documented out-of-pocket fees and expenses (including, but not limited to, (a) the reasonable fees, disbursements
and other charges of Choate, Hall & Stewart LLP, as the sole primary counsel to the Lead Arranger and the Administrative Agent, and of special and local counsel retained by the Lead Arranger or the Administrative Agent (after consultation
with the Company) and (b) due diligence expenses) incurred in connection with the Senior Credit Facilities, the syndication thereof (if applicable) and the preparation of the definitive documentation therefor, and with any other aspect of the
Senior Credit Facilities and any similar transaction and any of the other transactions contemplated thereby, in each case, whether or not the Senior Credit Facilities closes (it being understood and agreed that, assuming reasonable negotiation of
the definitive documentation for the Senior Credit Facilities, the fees of Choate, Hall & Stewart LLP (as counsel to the Lead Arranger and the Administrative Agent) is anticipated to range between (and not exceed) $125,000 to $150,000
through the Closing Date; provided, however, that if the Commitment Parties shall have (x) breached their obligations under the Commitment Letter to provide the Senior Credit Facilities subject to and upon the terms and conditions
set forth in the Commitment Letter or (y) terminated their commitments under the Commitment Letter prior to its stated termination date, your obligation to reimburse Bank of America for the fees of Choate, Hall & Stewart LLP shall be
limited to $100,000). You acknowledge that we may receive a benefit, including without limitation, a discount, credit or other accommodation, from any of such counsel based on the fees such counsel may receive on account of their relationship with
us including, without limitation, fees paid pursuant hereto. 
 You agree to indemnify and hold harmless each Commitment Party, each lender and each of
their affiliates and their respective officers, directors, employees, agents, advisors and other representatives (each an “Indemnified Party”) from and against (and will reimburse each Indemnified Party as the same are
incurred for) any and all claims, damages, losses, liabilities and expenses (including, without limitation, the reasonable fees, disbursements and other charges of counsel) that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (a) any aspect of the
transactions contemplated herein or 

  
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(b) the Senior Credit Facilities, or any use made or proposed to be made with the proceeds thereof (IN ALL CASES, WHETHER OR NOT CAUSED OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE,
CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNIFIED PARTY), except to the extent such claim, damage, loss, liability or expense is found in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from (i) such
Indemnified Party’s gross negligence or willful misconduct or (ii) such Indemnified Party’s material breach in bad faith of its obligations under this Commitment Letter. In the case of an investigation, litigation or proceeding to
which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by you, your equityholders or creditors or an Indemnified Party, whether or not an Indemnified
Party is otherwise a party thereto and whether or not any aspect of the transactions contemplated herein is consummated. You also agree that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise)
to you or your subsidiaries or affiliates or to your or their respective equity holders or creditors arising out of, related to or in connection with the Senior Credit Facilities or any other aspect of the transactions contemplated herein, except to
the extent of direct, as opposed to special, indirect, consequential or punitive, damages determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or
willful misconduct. Notwithstanding any other provision of this Commitment Letter, no Indemnified Party shall be liable for any damages arising from the use by others of information or other materials obtained through electronic telecommunications
or other information transmission systems, other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnified Party as determined by a final and nonappealable judgment of a court of competent
jurisdiction. 
 This Commitment Letter, the fee letter between you and Bank of America of even date herewith (the “Fee Letter”) and
the contents hereof and thereof are confidential and, except for disclosure hereof or thereof on a confidential basis to your accountants, attorneys and other professional advisors retained by you in connection with the transactions contemplated
herein or as otherwise required by law, may not be disclosed by you in whole or in part to any person or entity without our prior written consent; provided, however, it is understood and agreed that you may disclose this Commitment Letter
(including the Summary of Terms) but not (solely with respect to clause (b) of this sentence) the Fee Letter (a) on a confidential basis to your board of directors and advisors of in connection with their consideration of the transactions
contemplated herein, and (b) after your acceptance of this Commitment Letter and the Fee Letter, in filings with the Securities and Exchange Commission and other applicable regulatory authorities and stock exchanges. Bank of America hereby
notifies you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Act”), it is required to obtain, verify
and record information that identifies you, which information includes your name and address and other information that will allow each Commitment Party to identify you in accordance with the Act. 

Each Commitment Party shall use all confidential information provided to them by or on behalf of you or any of your affiliates hereunder or in connection with
the transactions contemplated hereby solely for the purpose of providing the services which are the subject of this letter agreement and otherwise in connection with the transactions contemplated herein and shall treat confidentially all such
information; provided, however, that nothing herein shall prevent any Commitment Party from disclosing any such information (i) pursuant to the order of any court or administrative agency or in any pending legal or administrative
proceeding, or otherwise as required by applicable law or compulsory legal process (in which case such Commitment Party agrees to inform you promptly thereof prior to such disclosure to the extent not prohibited by law, rule or regulation),
(ii) upon the request or demand of any regulatory authority having jurisdiction over such Commitment Party or any of its respective affiliates, (iii) to the extent that such information becomes publicly available other than
by reason of disclosure in violation of this agreement by such Commitment Party, (iv) to such Commitment Party’s affiliates, and it’s and such 

  
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affiliates’ respective employees, legal counsel, independent auditors, advisors and other experts or agents who need to know such information in connection with the transactions contemplated
herein and are informed of the confidential nature of such information, (v) for purposes of establishing a “due diligence” defense, (vi) to the extent that such information is or was received by such Commitment Party from
a third party that is not to such Commitment Party’s knowledge subject to confidentiality obligations to you, (vii) to the extent that such information is independently developed by such Commitment Party or its affiliates or
(viii) to potential lenders, participants assignees, the holders of the Term Loan (as defined in the Summary of Terms) or potential counterparties to any swap or derivative transaction relating to the Borrowers or any of the
Borrowers’ subsidiaries or any of their respective obligations, in each case, who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph or as otherwise reasonably acceptable to you and such
Commitment Party, including as may be agreed in any confidential information memorandum or other marketing material). This paragraph shall terminate on the second anniversary of the date hereof. 

You acknowledge that the Commitment Parties or their affiliates may be providing financing or other services to parties whose interests may conflict with
yours. Each Commitment Party agrees that it will not furnish confidential information obtained from you to any of their other customers and that they will treat confidential information relating to the Company and its respective affiliates with the
same degree of care as they treat their own confidential information. Each Commitment Party further advises you that they will not make available to you confidential information that they have obtained or may obtain from any other customer. In
connection with the services and transactions contemplated hereby, you agree that the Commitment Parties are permitted to access, use and share with any of their bank or non-bank affiliates, agents, advisors
(legal or otherwise) or representatives any information concerning you or any of your or its respective affiliates that is or may come into the possession of any such Commitment Party or any of such affiliates. 

In connection with all aspects of each transaction contemplated by this Commitment Letter, you acknowledge and agree, and acknowledge your affiliates’
understanding, that: (a) (i) the arranging and other services described herein regarding the Senior Credit Facilities are arm’s-length commercial transactions between you and your affiliates, on the
one hand, and Bank of America and each other Commitment Party, on the other hand, (ii) you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate, and (iii) you are capable of
evaluating, and understand and accept, the terms, risks and conditions of the transactions contemplated hereby; (b) (i) Bank of America and each other Commitment Party has been, is, and will be acting solely as a principal and, except as
otherwise expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for you, any of your affiliates or any other person or entity and (ii) neither Bank of America nor any
other Commitment Party has any obligation to you or your affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein; and (c) Bank of America and each other Commitment Party and their
respective affiliates may be engaged in a broad range of transactions that involve interests that differ from yours and those of your affiliates, Bank of America and any other Commitment Party have no obligation to disclose any of such interests to
you or your affiliates. To the fullest extent permitted by law, you hereby waive and release any claims that you may have against Bank of America and any other Commitment Party with respect to any breach or alleged breach of agency or fiduciary duty
in connection with any aspect of any transaction contemplated by this Commitment Letter. 
 This Commitment Letter (including the Summary of Terms) and the
Fee Letter shall be governed by, and construed in accordance with, the laws of the State of New York. You and each Commitment Party hereby irrevocably waives any and all right to trial by jury in any action, proceeding or counterclaim (whether based
on contract, tort or otherwise) arising out of or relating to this Commitment Letter (including the Summary of Terms), the Fee Letter, and the transactions contemplated hereby and thereby 

  
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or the actions of the Commitment Parties in the negotiation, performance or enforcement hereof. Each of the Commitment Parties and you hereby irrevocably and unconditionally submits to the
exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in the Borough of Manhattan in New York City in respect of any suit, action or proceeding arising out of or relating to the provisions of
this Commitment Letter (including the Summary of Terms), the Fee Letter and the transactions contemplated hereby and thereby and irrevocably agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in any
such court. Nothing in this Commitment Letter (including the Summary of Terms) or the Fee Letter shall affect any right that any Commitment Party or any affiliate thereof may otherwise have to bring any claim, action or proceeding relating to this
Commitment Letter (including the Summary of Terms), the Fee Letter and/or the transactions contemplated hereby and thereby in any court of competent jurisdiction to the extent necessary or required as a matter of law to assert such claim, action or
proceeding against any assets of the Company or any of its subsidiaries or enforce any judgment arising out of any such claim, action or proceeding. Each of the Commitment Parties and you agree that service of any process, summons, notice or
document by registered mail addressed to you shall be effective service of process against you for any suit, action or proceeding relating to any such dispute. Each of the Commitment Parties and you waives, to the fullest extent permitted by
applicable law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceedings brought in any such court, and any claim that any such suit, action or proceeding brought in any such court has been
brought in an inconvenient forum. A final judgment in any such suit, action or proceeding brought in any such court may be enforced in any other courts to whose jurisdiction you are or may be subject by suit upon judgment. The commitments and
undertakings of the Commitment Parties may be terminated by us if you fail to perform your obligations under this Commitment Letter or the Fee Letter on a timely basis. 

The provisions of the immediately preceding seven paragraphs shall remain in full force and effect regardless of whether any definitive documentation for the
Senior Credit Facilities shall be executed and delivered, and notwithstanding the termination of this Commitment Letter or any commitment or undertaking of the Commitment Parties hereunder. 

This Commitment Letter and the Fee Letter may be executed in counterparts which, taken together, shall constitute an original. Delivery of an executed
counterpart of this Commitment Letter or the Fee Letter by facsimile or other electronic transmission (e.g., a “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart hereof or thereof. 

This Commitment Letter (including the Summary of Terms) and the Fee Letter embody the entire agreement and understanding among the Commitment Parties, you and
your affiliates with respect to the Senior Credit Facilities and supersedes all prior agreements and understandings relating to the specific matters hereof. However, please note that the terms and conditions of the commitment of Bank of America and
the undertaking of the Lead Arranger hereunder are not limited to those set forth herein or in the Summary of Terms. Those matters that are not covered or made clear herein or in the Summary of Terms or the Fee Letter are subject to mutual agreement
of the parties. No party has been authorized by any the Commitment Party to make any oral or written statements that are inconsistent with this Commitment Letter. 

This Commitment Letter is not assignable by any party hereto without the prior written consent of each other party hereto and is intended to be solely for the
benefit of the parties hereto and the Indemnified Parties. 
 This Commitment Letter and all commitments and undertakings of the Commitment Parties
hereunder will expire at 5:00 p.m. (New York City time) on September 26, 2018 unless you execute this Commitment Letter and the Fee Letter and return them to Bank of America prior to that time (which may

  
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be by email or facsimile transmission), whereupon this Commitment Letter (including the Summary of Terms) and the Fee Letter (each of which may be signed in one or more counterparts) shall become
binding agreements. Thereafter, all commitments and undertakings of the Commitment Parties hereunder will expire on December 26, 2018, unless the Closing Date occurs on or prior thereto. In consideration of the time and resources that the
Commitment Parties will devote to the Senior Credit Facilities, you agree that, until the earlier of such expiration or the occurrence of the Closing Date, you will not solicit, initiate, entertain or permit, or enter into any discussions in respect
of, any offering, placement or arrangement of any competing senior credit facility or facilities for you and your subsidiaries (other than the Term Loan Facility referred to in the Summary of Terms). 

[THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
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 We are pleased to have the opportunity to work with you in connection with this important
financing. 
  

					
	Very truly yours,
	
	BANK OF AMERICA, N.A.
		
	By:	 	/s/ Christine Hutchinson
		 	Name:	 	Christine Hutchinson
		 	Title:	 	Director

  
 [Signature Page to
Commitment Letter] 

 ACCEPTED AND AGREED TO 

AS OF THE DATE FIRST ABOVE WRITTEN: 
 DESTINATION MATERNITY
CORPORATION 
  

					
	By:	 	/s/ Marla A. Ryan
		 	Name:	 	Marla A. Ryan
		 	Title:	 	Chief Executive Officer

  
 [Signature Page to
Commitment Letter] 

 EXHIBIT A 

SUMMARY OF TERMS AND CONDITIONS 

$76,000,000 SENIOR CREDIT FACILITIES 

Capitalized terms not otherwise defined herein have the same meanings 

as specified therefor in the commitment letter (the “Commitment Letter”) to which 

this Summary of Terms and Conditions (this “Summary of Terms”) is attached. 

 

	 BORROWERS: 
	Destination Maternity Corporation, a Delaware corporation (the “Company”) and any other wholly-owned subsidiary of the Company organized under the laws of the United States of America or a State or instrumentality thereof
with assets to be included in the Borrowing Base (collectively, the “Borrowers” and each individually, a “Borrower”). 

 

	 GUARANTORS: 
	The obligations under the Senior Credit Facilities and under any interest rate protection or other hedging arrangements entered into with a Lender or any affiliate of a Lender (“Hedging Obligations”) and under any cash
management, treasury management (including p-cards), supply chain financing, leasing or other banking product arrangements entered into with a Lender or any affiliate of a Lender (“Banking Product
Obligations”) will be unconditionally guaranteed jointly and severally on a senior secured basis by each existing and future direct and indirect domestic and, to the extent no material adverse tax consequences would result, foreign
subsidiary of the Company that is not a Borrower (the “Guarantors” and, together with the Borrowers, collectively referred to as the “Loan Parties” and individually as a “Loan
Party”). All guarantees will be guarantees of payment and not of collection. 

 ADMINISTRATIVE
AND 

	 COLLATERAL AGENT: 
	Bank of America, N.A. (“Bank of America”) will act as sole administrative and collateral agent (in such capacities, the “Administrative Agent”). 

LEAD ARRANGER AND 

	 BOOKRUNNER: 
	Bank of America will act as sole lead arranger and sole bookrunner (the “Lead Arranger”). 

  

	 LENDERS: 
	 Bank of America and other banks, financial institutions and institutional lenders acceptable to the Lead Arranger and the Administrative Agent, and
reasonably acceptable to the Company (collectively, the “Lenders” and each individually, a “Lender”). 

	 	 
Lenders holding commitments under the ABL Facility (as hereinafter defined) are referred to herein, collectively, as the “ABL Lenders”. Lenders holding commitments or term
loans under the FILO Term Loan Facility (as hereinafter defined) are referred to herein, collectively, as the FILO Term Loan Lenders”. 

  

	 SWING LINE LENDER: 
	Bank of America, as the swing line lender (in such capacity, the “Swing Line Lender”). 

  

	 ISSUING BANK: 
	Bank of America and other Lenders who shall agree to become an issuing bank (in such capacity, each an “Issuing Bank” and collectively, the “Issuing Banks”). 

SENIOR CREDIT 

	 FACILITIES: 
	An aggregate principal amount of up to $76,000,000 will be available through the following facilities: 

  

	 	ABL Facility: a senior secured asset-based revolving credit facility in an aggregate principal amount of $52,000,000, subject to the Borrowing Base as provided herein and other terms and conditions herein
(the “ABL Facility” and, together with the FILO Term Loan Facility referred to below, collectively, the “Senior Credit Facilities”), available from time to time until the maturity of the Senior Credit
Facilities, which will include a $10,000,000 sublimit for the issuance of letters of credit (each a “Letter of Credit”) and a $10,000,000 sublimit for swingline loans (each a “Swingline Loan”). Letters
of Credit will be issued by the Issuing Banks and Swingline Loans may be made available by the Swing Line Lender, and each of the Lenders under the ABL Facility will purchase an irrevocable and unconditional participation in each Letter of Credit
and each Swingline Loan. The revolving credit loans (including the Swingline Loans) under the ABL Facility (collectively, the “ABL Loans”) may be drawn, repaid and reborrowed. 

 

	 	 FILO Term Loan Facility: a senior secured asset-based term loan facility advanced on a “first-in, last-out” basis in an aggregate principal amount of $24,000,000, subject to the FILO Borrowing Base as provided herein and other terms and conditions
contained herein (the “FILO Term Loan Facility”), all of which will be drawn on the Closing Date (as hereinafter defined) (subject to the implementation of any applicable FILO Term Loan Pushdown Reserve (as hereinafter
defined) as provided herein). The term loans advanced under the FILO Term Loan Facility (collectively, the “FILO Term Loans” and, together with the Revolving Credit Loans, collectively, the “Loans”)
may not be repaid or prepaid, except (a) in connection with a termination of all commitments under the Senior Credit Facilities and payment in full in cash of all 

  
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secured obligations under or described in the Credit Facilities Documentation (as hereinafter defined), (b) in connection with any mandatory prepayments required under the Credit Facilities
Documentation (as hereinafter defined) and (c) at any time when the FILO Payment Conditions (as hereinafter defined) are satisfied, subject, in each case to the payment of any applicable Prepayment Fee (as defined in the Fee Letter). The FILO
Term Loans that are repaid or prepaid may not be reborrowed. 

  

	 	As used herein, “FILO Payment Conditions” shall mean (a) as of the date of any such payment, and after giving effect thereto, no default or event of default shall exist or have occurred and
be continuing; and (b) as of the date of any such payment, on a pro forma basis, and after giving effect thereto, Excess Availability on such date and as projected at all times for the immediately succeeding six (6) month period shall be
equal to or greater than 25% of the Combined Loan Cap. The Administrative Agent shall have received a certificate of an authorized officer of the Borrowers certifying as to compliance with the preceding sentence and demonstrating (in reasonable
detail) the calculations required thereby. 

  

	 SWINGLINE OPTION: 
	Swingline Loans may be made available on a same day basis in the discretion of the Swing Line Lender. The Borrowers shall repay each Swingline Loan in full no later than ten (10) business days after such loan is made.

  

	 INCREASE OPTION: 
	Provided that no default or event of default exists, and subject to the satisfaction of other customary terms and conditions, the Borrowers shall have the right from time to time to increase the commitments under the ABL Facility, without
obtaining the approval of the Lenders for such increase, by a maximum aggregate principal amount equal to $20,000,000 (the “Increase Option”). Unless a commitment is evidenced in writing, under no circumstances shall any
Lender under the Senior Credit Facilities be deemed to have committed to provide any portion of such increase. 

  

	 BORROWING BASES: 
	ABL Loans, Swingline Loans and Letters of Credit shall be provided to the Borrowers subject to the terms and conditions of the Credit Facilities Documentation (as hereinafter defined) and availability under the ABL Facility will be calculated as
follows (the “Borrowing Base”): 

  

	 	(a) 90% of eligible credit card receivables of the Borrowers, plus 

  
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	 (b)
	  	80% of eligible wholesale accounts receivable of the Borrowers (provided, however that (x) amounts included in the Borrowing Base pursuant to this clause (b) shall not exceed $5,000,000),
plus
		
	 (c)
	  	80% of eligible leased department receivables of the Borrowers, plus
		
	 (d)
	  	90% of the appraised net orderly liquidation value of eligible inventory (other than in-transit inventory) of the Borrowers (including, eligible leased department inventory in an aggregate
amount not to exceed $10,000,000), plus
		
	 (e)
	  	90% of the appraised net orderly liquidation value of eligible in-transit inventory of the Borrowers, plus
		
	 (f)
	  	100% of all Qualified Cash, minus
		
	 (g)
	  	the FILO Term Loan Push Down Reserve (as hereinafter defined); minus
		
	 (h)
	  	in each case, applicable reserves determined by the Administrative Agent in its Permitted Discretion (as hereinafter defined.

  

	 	The FILO Term Loan Facility shall be provided to the Borrowers subject to the terms and conditions of the Credit Facilities Documentation (as hereinafter defined). The borrowing base for the FILO Term Loan Facility will
be calculated as follows (the “FILO Borrowing Base”): 

  

			
	 (a)
	  	the FILO Inventory Advance Rate (as hereinafter defined) of the appraised net orderly liquidation value of eligible inventory (other than in-transit inventory or leased department
inventory) of the Borrowers; plus
		
	 (b)
	  	the FILO IP Advance Rate (as hereinafter defined) of the forced liquidation value (net of operating expenses, liquidation expenses and commissions reasonably anticipated in the disposition of intellectual property) of eligible
intellectual property of the Borrowers, provided that the aggregate amount of the FILO Borrowing Base attributable to this clause (c) shall in no event exceed 30% of the Combined Loan Cap (as hereinafter defined); minus
		
	 (c)
	  	applicable reserves established by the Administrative Agent in its Permitted Discretion (provided that such reserves shall not be duplicative of reserves maintained against the Borrowing Base).

  
 4 

	 CERTAIN DEFINED TERMS: 
	“Combined Loan Cap” means, at any time, (a) the lesser of (i) the Borrowing Base at such time and (ii) the Revolver Loan Cap at such time (determined in the case of both clauses (i) and
(ii) without giving effect to the FILO Term Loan Push Down Reserve) plus (b) the lesser of (x) the principal amount of the FILO Term Loans and (y) the FILO Borrowing Base at such time. 

 

	 	“Excess Availability” shall mean the result of (a) the Revolver Loan Cap at such time minus (b) the aggregate principal amount of ABL Loans and the maximum drawing amount of
Letters of Credit issued under the ABL Facility at such time. 

  

	 	“FILO Inventory Advance Rate” means with respect to eligible inventory, (a) prior to the eighteen (18) month anniversary of the Closing Date, 7.5%, and (b) from and after the
eighteen (18) month anniversary of the Closing Date, 5%. 

  

	 	“FILO IP Advance Rate” means with respect to eligible intellectual property, (a) prior to the first anniversary of the Closing Date, 65%, (b) from and after the first anniversary of the
Closing Date, but prior to the second anniversary thereof, 60%, (c) from and after the second anniversary of the Closing Date, but prior to the third anniversary thereof, 55%, (d) from and after the third anniversary of the Closing Date, but prior
to the fourth anniversary thereof, 50%, and (e) from and after the fourth anniversary of the Closing Date, 45%. 

  

	 	“FILO Term Loan Push Down Reserve” shall mean at any time the outstanding amount of the FILO Term Loans under the FILO Term Loan Facility exceeds the FILO Borrowing Base, a reserve maintained
against the Borrowing Base in an amount equal to the amount of such excess. 

  

	 	“Permitted Discretion” shall mean a determination made by the Administrative Agent in good faith in the exercise of its reasonable (from the perspective of an asset-based lender) business
judgment. 

  

	 	“Qualified Cash” means, at any time, all designated cash and cash equivalents of the Borrowers and Guarantors maintained at such time in one or more segregated accounts at Bank of America, under
the sole control and dominion of the Administrative Agent. 

  

	 	“Revolver Loan Cap” shall mean the lesser of (a) the Borrowing Base at such time and (b) the aggregate commitments of the Lenders under the ABL Facility. 

  
 5 

	 ELIGIBILITY: 
	Criteria for eligible credit card receivables, eligible wholesale accounts receivable, eligible leased department receivables, eligible inventory (including eligible in-transit inventory and
eligible leased department inventory), eligible intellectual property and Qualified Cash will be defined in the Credit Facilities Documentation in accordance with the Administrative Agent’s customary practices and as appropriate under the
circumstances, as determined by the Administrative Agent pursuant to field examinations and other due diligence. The Administrative Agent will retain the right from time to time to establish or modify standards of eligibility that it deems necessary
or appropriate in its Permitted Discretion. 

  

	 PURPOSE: 
	The proceeds of the Senior Credit Facilities shall be used to (i) refinance certain existing indebtedness of the Company and its subsidiaries (including, without limitation, indebtedness under the Existing Credit Agreements (as hereinafter
defined)), (ii) pay fees and expenses incurred in connection with the Transactions; and (iii) provide ongoing working capital and for other general corporate purposes of the Borrower and its subsidiaries. 

 

	 TRANSACTIONS: 
	The (a) entering into, and funding of, the Senior Credit Facilities, (b) repayment in full of the Existing Credit Agreements and the release of the liens securing such indebtedness and (c) the related obligations and
related transactions (collectively, the “Transactions”). 

  

	 CLOSING DATE: 
	The date on which execution of definitive loan documentation occurs and the conditions precedent to the initial funding of the advances are satisfied under the Senior Credit Facilities, which shall occur on or before November 30, 2018 (the
“Closing Date”). 

  

	 INTEREST RATES: 
	As set forth in Addendum I attached hereto. 

  

	 MATURITY: 
	The Senior Credit Facilities shall terminate and all amounts outstanding thereunder shall be due and payable in full five (5) years after the Closing Date. 

 

	 AVAILABILITY: 
	The ABL Loans under the ABL Facility may be made, and Letters of Credit may be issued, on a revolving basis up to the full amount of the ABL Facility, subject to compliance with the Borrowing Base requirements. 

MANDATORY 

	 PREPAYMENTS: 
	 Borrowers will be required to repay the ABL Loans and provide cash collateral to the extent that the ABL Loans and Letters of

  
 6 

	 	 
Credit exceed the Revolver Loan Cap, in each case, in cash without any prepayment premium or penalty (but including all breakage or similar costs; provided that, if after giving effect to any
such prepayment and cash collateralization of ABL Loans, the FILO Term Loans under the FILO Term Loan Facility exceeds the FILO Borrowing Base, the Borrowers will be required to repay the FILO Term Loans in an amount equal to such excess).

  

	 	At any time there is a Cash Dominion Event (as hereinafter defined), all proceeds of Collateral and all amounts deposited in the collection account with the Administrative Agent shall be applied to the obligations under
the Senior Credit Facilities in a manner to be agreed, provided, however, that, (x) except during the existence and continuation of an event of default, no such proceeds shall be required to be applied to the FILO Term Loans and
(y) any such application of proceeds to the ABL Facility shall be made without a reduction in the commitments thereunder. 

OPTIONAL PREPAYMENTS 

AND COMMITMENT 

	 REDUCTIONS: 
	The ABL Facility may be prepaid in whole or in part at any time without premium or penalty, subject to reimbursement of the ABL Lenders’ breakage and redeployment costs in the case of prepayment of LIBOR borrowings. The FILO Term Loans may
not be prepaid except as expressly provided under the “Senior Credit Facilities” above. The unutilized portion of the commitments under the ABL Facility may be irrevocably reduced or terminated by the Borrowers at any time without penalty.

  

	 SECURITY: 
	 Each Borrower and each of the Guarantors shall grant the Administrative Agent and the Lenders valid and perfected liens and security interests in
substantially all of its assets (subject to certain exceptions to be set forth in the Credit Facilities Documentation (as hereinafter defined), collectively “Collateral”); provided that the Administrative Agent (for
the benefit of the Lenders and the other secured parties) shall at all times be granted a valid and perfected first priority lien and security interest in all assets of the Borrowers and each Guarantor consisting of the following
property and assets, in each case, whether now owned or hereafter acquired (“ABL Priority Collateral”): (i) inventory, (ii) accounts receivable (including wholesale accounts receivable and eligible leased department
receivables), (iii) payment intangibles (including such payment intangible consisting of credit card accounts receivable), (iv) bank accounts and securities accounts, money, cash and cash equivalents (including, without limitation, all Qualified
Cash), (v) intellectual property, including customer lists, (vi) to the extent evidencing, governing, securing or 

  
 7 

	 	 
otherwise reasonably related to any of the foregoing: all documents, instruments, general intangibles, supporting obligations, commercial tort claims, letters of credit, letter of credit rights,
and all customer lists, (vi) all books, records and documents related to the foregoing (including databases, customer lists and other records, whether tangible or electronic, which contain any information relating to any of the foregoing), and
(vii) all proceeds and products of any or all of the foregoing (including, without limitation, insurance proceeds, general intangibles, chattel paper, investment property, instruments and letter of credit rights relating to any of the foregoing
and other proceeds or products of any of the foregoing), proceeds of business interruption and other insurance and claims against third parties. 

  

	 	The Administrative Agent and its agents shall at all times have a license (the “ABL License”) to use all Collateral not consisting of ABL Priority Collateral (hereinafter “Other
Collateral”) including, without limitation, all machinery and equipment, owned real estate, leaseholds and fixtures of the Borrowers and each Guarantor, in connection with the exercise of remedies with respect to, or the sale or other
disposition of, Collateral. 

  

	 	The Security shall ratably secure the relevant party’s obligations in respect of the Senior Credit Facilities and any Hedging Obligations and Banking Product Obligations. 

 

	 	Notwithstanding the foregoing to the contrary, real property of the Loan Parties shall not be subject to any mortgages in favor of the Administrative Agent. 

 

	 CASH MANAGEMENT: 
	 All collections and proceeds from Collateral (the “Cash Proceeds”) will be deposited either directly into the concentration
account with Bank of America or concentrated into an account at an institution for which the Administrative Agent has in place a control agreement reasonably satisfactory to it and the Borrowers. The Borrowers, the Guarantors and their subsidiaries
shall establish cash management procedures reasonably acceptable to the Administrative Agent. Not later than 60 days after the Closing Date, (x) the Administrative Agent shall have received control agreements in form and substance reasonably
satisfactory to it and the Borrowers with respect to each concentration account, deposit account and securities account owned by the Borrowers and Guarantors (other than fiduciary and payroll accounts) and (y) the Loan Parties shall cause, upon
the occurrence of a Cash Dominion Event (as hereinafter defined), all amounts received in the concentration accounts and any other blocked accounts established by the Borrowers and the Guarantors to be swept to the collection

  
 8 

	 	 
account maintained with the Administrative Agent and applied to the obligations under the Senior Credit Facilities in the manner specified under the section entitled “Mandatory
Prepayments” above. 

  

	 	“Cash Dominion Event” shall mean (a) the occurrence of an event of default or (b) the date on which Excess Availability is less than the greater of (i) $8,000,000 and (ii) 12.5% of the
Combined Loan Cap at such time; provided, however, that to the extent that the Cash Dominion Event has occurred due to (i) clause (a) of this definition, if all events of default are cured or waived or otherwise no longer exist,
or (ii) clause (b) of this definition, if Excess Availability shall be equal to or greater than the greater of (x) 12.5% of the Combined Loan Cap and (y) $8,000,000 for at least sixty (60) consecutive days, in each case, the Cash Dominion
Event shall no longer be deemed to exist or be continuing until such time as an event of default shall have occurred or Excess Availability may again be less than the amount in clause (b) of this definition. In no event shall a Cash Dominion
Event terminate more than two (2) times in any twelve (12) month period or more than four (4) times during the term of the Senior Credit Facilities. 

 

	 TREASURY MANAGEMENT: 
	No later than 60 days after the Closing Date or except as otherwise agreed to by the Administrative Agent, Borrowers agree to maintain their primary domestic operating, disbursement and investment accounts, and all related cash management and
treasury banking business, with Bank of America or its affiliates. 

 CONDITIONS
PRECEDENT 

	 TO CLOSING: 
	The closing and the initial extension of credit under the Senior Credit Facilities will be subject to satisfaction of the conditions precedent deemed appropriate by the Administrative Agent for asset based credit facilities generally and
for this transaction in particular, including, but not limited to, the following: 

  

			
	 (i)
	  	The negotiation, execution and delivery of definitive documentation with respect to the Senior Credit Facilities satisfactory to the Lead Arranger, the Administrative Agent, the Loan Parties and the Lenders (collectively, the
“Credit Facilities Documentation”).
		
	 (ii)
	  	All filings, recordations and searches necessary or desirable in connection with the perfection of liens and security interests referred to under the section entitled “Security” set forth above shall have
been duly made; all filing and recording fees and taxes shall have been duly paid. The Lenders shall be satisfied with the amount, types and terms

  
 9 

 
			
		  	and conditions of all insurance maintained by the Borrowers and their subsidiaries; and the Lenders shall have received customary endorsements naming the Administrative Agent, on behalf of the Lenders, as an additional insured or
loss payee, as the case may be, under all insurance policies.
		
	 (iii)
	  	The Administrative Agent shall have received satisfactory opinions of counsel to the Borrowers and the Guarantors (which shall cover, among other things, authority, legality, validity, binding effect and enforceability of the
documents for the Senior Credit Facilities) and of appropriate local counsel and such corporate resolutions, certificates and other documents as the Administrative Agent shall reasonably require.
		
	 (iv)
	  	Receipt of all governmental, shareholder and third party consents and approvals necessary (if any) in connection with the Transactions and the related financings and other transactions contemplated hereby and expiration of all
applicable waiting periods (if any) without any action being taken by any authority that could restrain, prevent or impose any material adverse conditions on the Borrower and its subsidiaries or such other transactions or that could seek or threaten
any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative Agent could have such effect.
		
	 (v)
	  	Absence of any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to result in a Material Adverse Effect (as defined in the Commitment Letter).
		
	 (vi)
	  	The absence of any action, suit, investigation or proceeding pending or, to the knowledge of any Loan Party, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a
Material Adverse Effect.
		
	 (vii)
	  	Receipt of pro forma consolidated financial statements as to the Company and its subsidiaries giving effect to all elements of the Transactions to be effected on or before the Closing Date, and forecasted balance
sheet, statements of income and cash flows, prepared on a quarterly basis for the first year following the Closing Date and on an annual basis through the maturity date (including, without limitation, twelve (12) month Excess Availability
projections) prepared by management of the Company and its subsidiaries, each in form satisfactory to the Administrative Agent and the Lenders, as the Administrative Agent shall reasonably request.

  
 10 

			
	 (viii)
	  	The Lenders shall have received certification as to the financial condition and solvency of the Borrowers and each Guarantor (after giving effect to the Transactions and the incurrence of indebtedness related thereto) from the
chief financial officer of the appropriate entities.
		
	 (ix)
	  	The Lenders shall have completed a due diligence investigation of the Company and its subsidiaries in scope, and with results, satisfactory to the Lenders.
		
	 (x)
	  	The Administrative Agent shall have received a borrowing base certificate dated as of a date mutually agreed, executed by a financial officer of the Borrowers, which shall be in form and substance reasonably acceptable to the
Administrative Agent, demonstrating Excess Availability under the ABL Facility, after giving effect to the Transactions and all extensions of credit under the Senior Credit Facilities on such date, of not less than thirty-five percent (35%) of the
Combined Loan Cap.
		
	 (xi)
	  	The Administrative Agent shall have received an inventory appraisal, intellectual property appraisal and field exam in respect of the assets of the Borrowers and their subsidiaries, which shall be in form and substance and with
results satisfactory to Administrative Agent and the Lead Arranger.
		
	 (xii)
	  	The Administrative Agent shall have received acceptable payoff letters and other evidence reasonably satisfactory to Administrative Agent with respect to that certain (A) Amended and Restated Credit Agreement, dated as of
March 25, 2016, among the Borrowers, the other Loan Parties party thereto, the lenders and other parties party thereto and Wells Fargo Bank, National Association, as administrative agent (as amended, supplemented or otherwise modified prior to
the date hereof, the “Existing ABL Credit Agreement”) and (B) Term Loan Credit Agreement, dated as of February 1, 2018, among the Borrowers, the other Loan Parties party thereto, the lenders and other parties party
thereto and Pathlight Capital, LLC, as administrative agent (as amended, supplemented or otherwise modified prior to the date hereof, the “Existing Term Credit Agreement” and, together with the Existing ABL Credit Agreement,
the “Existing Credit Agreements”) which, among other things, (x) evidence that,

  
 11 

			
		  	upon the making of the initial extension of credit on the Closing Date and the application of such funds in accordance with such payoff letters, all obligations under such facilities will have been paid and satisfied in full, and
all commitments thereunder will terminate, and (y) confirm that all liens securing such existing indebtedness will be, contemporaneously with the initial funding under the Senior Credit Facilities, released and terminated.
		
	 (xiii)
	  	Payment of all accrued fees and expenses (including fees and expenses of counsel to the Administrative Agent).

 CONDITIONS PRECEDENT
TO 
 ALL EXTENSIONS

	 OF CREDIT: 
	Each extension of credit under the Senior Credit Facilities will be subject to satisfaction of the following conditions precedent: (i) all of the representations and warranties in the Credit Facilities Documentation shall be true and
correct in all material respects (or, to the extent qualified by materiality, in all respects) as of the date of such extension of credit; (ii) no event of default under the Senior Credit Facilities or incipient default shall have occurred and
be continuing or would result from such extension of credit; and (iii) the aggregate principal amount of all outstanding ABL Loans and the aggregate undrawn amount of all Letters of Credit outstanding on such date, after giving effect to the
applicable borrowing or issuance or renewal of a Letter of Credit, shall not exceed the Revolver Loan Cap. 

REPRESENTATIONS AND 

	 WARRANTIES: 
	Usual and customary for transactions of this type. 

  

	 COVENANTS: 
	Those affirmative, negative and financial covenants (applicable to the Borrowers and their subsidiaries) customarily found in transactions of this type, provided that the definitive loan documents shall: 

 

			
	 (a)
	  	Borrowing Base Certificates – Require delivery of borrowing base certificates on a monthly basis, or weekly at any time after (i) the occurrence of an event of default or (ii) the date on which Excess
Availability is less than the greater of (x) $8,000,000 or (y) 12.5% of the Combined Loan Cap at such time; provided that weekly Borrowing Base Certificates shall continue to be delivered until the date that no default or event of default is
continuing, and/or as, applicable, Excess Availability as required above, shall have exceeded such levels, at all times, for a period of sixty (60) consecutive days.

  
 12 

			
	 (b)
	  	Field Exams and Appraisals – Permit one (1) field examination, one (1) inventory appraisal and one (1) intellectual property appraisal during each twelve (12) month period at the expense of the
Borrowers; provided that (a) (i) if at any time Excess Availability is less than the greater of (x) $10,000,000 or (y) 17.5% of the Combined Loan Cap, the Administrative Agent may conduct two (2) field examinations, two
(2) inventory appraisals and two (2) intellectual property appraisals during the following twelve (12) month period at the expense of the Borrowers and (ii) at any time during the continuation of an event of default, field
examinations and inventory appraisals may be conducted (at the expense of the Borrowers) as frequently as determined by the Administrative Agent in its reasonable discretion and (b) one (1) additional field examination, one (1) additional
inventory appraisal, and one (1) additional intellectual property appraisal during any twelve (12) consecutive month period may be conducted by the Administrative Agent at the expense of the Lenders.
		
	 (c)
	  	Acquisitions; Prepayments of Debt; Restricted Payments – Permit the Borrowers to make dividends, restricted payments or other distributions, investments, acquisitions, voluntary prepayments of other debt (subject to
any applicable subordination provisions), subject to the satisfaction of the Payment Conditions. The term “Payment Conditions” means, at the time of determination with respect to any specified transaction or payment the
following:

  

			
	 (A)
	  	as of the date of any such specified transaction or payment, and after giving effect thereto, no default or event of default shall exist or have occurred and be continuing;
		
	 (B)
	  	as of the date of any such specified transaction or payment, on a pro forma basis, and after giving effect thereto, either:

  

			
	 (1)
	  	Excess Availability on such date and as projected at all times for the immediately succeeding six (6) month period shall be equal to or greater than the greater of (I) 17.5% (or, in the case of any dividend, restricted
payment or other distribution, 20%) of the Combined Loan Cap and (II) $10,000,000 (or, in the case of any dividend, restricted payment or other distribution, $12,500,000), or

  
 13 

 
			
	 (2)
	  	(x) Excess Availability on such date and as projected at all times for the immediately succeeding six (6) month period shall be equal to or greater than 12.5% (or, in the case of any dividend, restricted payment or other
distribution, 15%) of the Maximum Borrowing Amount, and (y) the Consolidated Fixed Charge Coverage Ratio (to be defined as (with financial definitions to be agreed) the ratio of (A) (i) EBITDA (defined in a manner consistent with the
Existing Term Credit Agreement) minus (ii) the sum of (1) unfinanced capital expenditures (other than from the proceeds of Loans) plus (2) cash tax expense to (B) the sum of (i) debt service charges,
plus (ii) restricted payments and distributions) based on the most recent financial statements received by the Administrative Agent prior to the date thereof for the period of twelve (12) months) most recently ended, shall not be
less than 1.00:1.00; and,
		
		  	The Administrative Agent shall have received a certificate of an authorized officer of the Borrowers certifying as to compliance with the preceding clauses and demonstrating (in reasonable detail) the calculations required
thereby.

  

			
	 (f)
	  	Excess Availability – Require that the Borrowers shall at all times maintain Excess Availability of not less than the greater of (i) $7,500,000 and (ii) 10.0% of the Combined Loan
Cap.

  

	 EVENTS OF DEFAULT:

	Usual and customary in transactions of this type. 

 ASSIGNMENTS
AND 

	 PARTICIPATIONS: 
	ABL Facility Assignments: Subject to the consents described below (which consents will not be unreasonably withheld or delayed), each Lender will be permitted to make assignments to other financial institutions in respect of the
ABL Facility in a minimum amount equal to $5 million. 

  

	 	FILO Term Loan Facility Assignments: Subject to the consents described below (which consents will not be unreasonably withheld or delayed), each Lender will be permitted to make assignments to other
financial institutions in respect of the FILO Term Loan Facility in a minimum amount equal to $1 million. 

  

	 	 Consents: The consent of the Borrowers will be required unless (i) an Event of Default has occurred and is
continuing or (ii) the assignment is to a Lender, an affiliate of a Lender or an Approved 

  
 14 

	 	 
Fund (as such term shall be defined in the Credit Facilities Documentation). The consent of the Administrative Agent will be required for any assignment (i) in respect of the ABL Facility or
an unfunded commitment under either FILO Term Loan Facility to an entity that is not a Lender with a commitment in respect of the applicable Senior Credit Facility, an affiliate of such Lender or an Approved Fund in respect of such Lender or
(ii) of any outstanding term loan to an entity that is not a Lender, an affiliate of a Lender or an Approved Fund. The consent of the Issuing Banks and the Swingline Lender will be required for any assignment under the ABL Facility. The
Borrowers’ consent shall be deemed to have been given if the Borrowers have not responded within ten (10) business days of an assignment request made in writing. 

 

	 	Assignments Generally: An assignment fee in the amount of $3,500 will be charged with respect to each assignment unless waived by the Administrative Agent in its sole discretion. Each Lender will also have
the right, without consent of the Borrowers or the Administrative Agent, to assign as security all or part of its rights under the Credit Facilities Documentation to any Federal Reserve Bank. No assignment or participation may be made to natural
persons, any Loan Party or any of their affiliates or subsidiaries, or any holder of any subordinated debt of a Loan Party. 

  

	 	Participations: Lenders will be permitted to sell participations with voting rights limited to significant matters such as changes in amount, rate, maturity date and releases of all or substantially all of
the collateral securing the Senior Credit Facilities or all or substantially all of the value of the guaranty of the Borrowers’ obligations made by the Guarantors. 

WAIVERS AND 

	 AMENDMENTS: 
	 Amendments and waivers of the provisions of the credit agreement and other definitive Credit Facilities Documentation will require the approval of
Lenders holding loans and commitments representing more than 50% of the aggregate amount of the loans and commitments under the Senior Credit Facilities (the “Required Lenders”), except that (a) the consent of each
Lender shall be required with respect to (i) the amendment of certain of the pro rata sharing provisions, (ii) the amendment of the voting percentages of the Lenders, (iii) the release of (or subordination of the liens on) all or
substantially all of the collateral securing the Senior Credit Facilities, and (iv) the release of all or substantially all of the value of the guaranty of the Borrowers’ obligations made by the Guarantors; (b) the consent of each
Lender directly and adversely affected thereby shall be required with respect to (i) increases or 

  
 15 

	 	 
extensions in the commitment of such Lender (it being understood and agreed that the waiver of any default, event of default or mandatory prepayment shall not constitute an extension or increase
of any commitment), (ii) reductions of principal (it being understood and agreed that the waiver of any default, event of default or mandatory prepayment shall not constitute a reduction or forgiveness of principal), interest (other than the waiver
of default interest) or fees, and (iii) extensions of scheduled maturities (it being understood and agreed that the waiver of any default, event of default or mandatory prepayment shall not constitute an extension of any maturity date) or times
for payment; (c) the consent of 66-2/3% of the ABL Lenders (the “Supermajority ABL Lenders”) will be required with respect to: (i) increases in the percentages applied to
eligible assets in the Borrowing Base and (ii) modifications to the Borrowing Base or any components thereof which would result in an increase in the amount of the Borrowing Base (but exclusive of the right of the Administrative Agent to add,
increase, eliminate or reduce the amount of reserves or to exercise other discretion it may have pursuant to such provisions), and (d) the consent of 66-2/3% of the FILO Term Loan Lenders (the
“Supermajority FILO Lenders”) will be required with respect to certain matters, including (i) increase in the percentages applied to eligible assets in the Borrowing Base and/or the FILO Borrowing Base,
(ii) modifications to the Borrowing Base and/or the FILO Borrowing Base or any components thereof which would result in an increase in the amount of the Borrowing Base and/or the FILO Borrowing Base, as applicable (but exclusive of the right of
the Administrative Agent to add, increase, eliminate or reduce the amount of reserves or to exercise other discretion it may have pursuant to such provisions), and (iii) modifications of the FILO Term Loan Push Down Reserve. Matters affecting
the Administrative Agent, the Swing Line Lender, or the Fronting Bank will require the approval of such party. 

  

	 	The Credit Facilities Documentation shall contain customary provisions for replacing defaulting Lenders, replacing Lenders claiming increased costs, tax gross-ups and similar
required indemnity payments and replacing non-consenting Lenders in connection with amendments and waivers requiring the consent of all Lenders or of all Lenders adversely affected thereby or Supermajority ABL
Lenders or Supermajority FILO Lenders, as applicable, so long as Lenders holding at least 50% of the aggregate amount of the loans and commitments under the Senior Credit Facilities shall have consented thereto. 

  
 16 

	 INDEMNIFICATION: 
	The Loan Parties will indemnify and hold harmless the Administrative Agent, the Lead Arranger, each Lender and their respective affiliates and their partners, directors, officers, employees, agents and advisors from and against all losses,
claims, damages, liabilities and expenses arising out of or relating to the Senior Credit Facilities, any other aspect of the Transactions, the Borrowers’ use of loan proceeds or the commitments, including, but not limited to, reasonable
attorneys’ fees and settlement costs. This indemnification shall survive and continue for the benefit of all such persons or entities. 

  

	 GOVERNING LAW: 
	State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the State of New York (other than certain security documents that will be
governed by local law as applicable or as the parties may otherwise agree), subject to the provisions set forth in the governing law paragraph of the Commitment Letter. 

PRICING/FEES/ 

	 EXPENSES: 
	As set forth in Addendum I. 

 COUNSEL TO
THE 
 ADMINISTRATIVE 

	 AGENT: 
	Choate, Hall & Stewart LLP. 

  

	 OTHER: 
	Each of the parties shall (i) waive its right to a trial by jury and (ii) submit to New York jurisdiction. The Credit Facilities Documentation will contain customary ERISA, successor LIBOR, beneficial ownership, increased cost,
withholding tax, capital adequacy and yield protection provisions and EU Bail-In language. 

  
 17 

 ADDENDUM I 

PRICING, FEES AND EXPENSES 
  

	 INTEREST RATES: 
	The interest rates per annum applicable to the Senior Credit Facilities (other than in respect of Swingline Loans) will be LIBOR plus the Applicable Margin (as hereinafter defined) or, at the option of the Borrowers, the Base Rate (to be
defined as the highest of (a) the Federal Funds Rate plus  1⁄2 of 1%, (b) the Bank of America prime rate and
(c) one-month LIBOR plus 1.00%) plus the Applicable Margin. 

  

	 	The term “Applicable Margin” means with respect to (a) with respect to the ABL Facility, a percentage per annum to be determined in accordance with the applicable pricing grid set forth
below based on the Quarterly Average Excess Availability (as hereinafter defined), and (b) with respect to the FILO Term Loan Facility, a percentage per annum to be determined in accordance with the applicable pricing grid set forth below,
based on the Quarterly Average Excess Availability; provided that from and after the Closing Date until the end of the second full calendar quarter ending after the Closing Date, the percentages set forth in Level II of the applicable pricing grid
below shall apply. Each Swingline Loan shall bear interest at the Base Rate plus the Applicable Margin for Base Rate loans under the ABL Facility. Notwithstanding anything to the contrary contained herein, to the extent that, at any time, LIBOR or
Base Rate shall be less than zero, LIBOR or Base Rate (as applicable) shall be deemed to be zero for purposes of the Senior Credit Facilities. 

  

	 	“Quarterly Average Excess Availability” shall mean, for any fiscal quarter, the result, expressed as a percentage, of (a) the average daily Revolver Loan Cap, minus the average daily
aggregate principal amount of loans outstanding and the average daily maximum drawing amount of Letters of Credit issued under the ABL Facility, divided by (b) the Revolver Loan Cap. 

 

	 	The Borrowers may select interest periods of one, two, three or six months for LIBOR loans. Interest shall be payable at the end of the selected interest period, but no less frequently than quarterly. 

 

	 	During the continuance of any default under the Credit Facilities Documentation, the Applicable Margin on obligations owing under the Credit Facilities Documentation shall increase by 2.00% per annum (subject, in all
cases other than a default in the payment of principal when due, to the request of the Required Lenders). 

  
 18 

	 COMMITMENT FEE: 
	Commencing on the Closing Date, a commitment fee of 0.25% shall be payable on the actual daily unused portions of the Senior Credit Facilities. Such fee shall be payable quarterly in arrears, commencing on the first quarterly payment date to
occur after the Closing Date. Swingline Loans will not be considered utilization of the ABL Facility for purposes of this calculation. 

  

	 LETTER OF CREDIT
FEES: 
	Letter of Credit fees shall be payable on the maximum amount available to be drawn under each Letter of Credit at a rate per annum equal to the Applicable Margin from time to time applicable to ABL Loans accruing interest at the LIBOR rate. Such
fees will be (a) payable quarterly in arrears, commencing on the first quarterly payment date to occur after the Closing Date, and (b) shared proportionately by the Lenders under the ABL Facility. In addition, a fronting fee shall be
payable to each Issuing Bank for its own account, in an amount equal (i) with respect to each commercial Letter of Credit, 0.125% of the stated amount of such Letter of Credit, payable upon the issuance thereof, and (ii) with respect to
each standby Letter of Credit issued and outstanding, 0.125% per annum of the amount available to be drawn under such Letter of Credit, payable quarterly in arrears, commencing on the first quarterly payment date to occur after the Closing Date.

 PRICING GRID 

ABL FACILITY 
  

							
	 Level
	  	 Quarterly Average

Excess Availability
	  	 Applicable Margin for

LIBOR Loans/
 Letter of
Credit Fees
	  	 Applicable

Margin for
 Base
Rate
 Loans

	 I
	  	Greater than 67% of the Revolver Loan Cap	  	1.50%	  	0.50%
	 II
	  	Less than or equal to 67% of the Revolver Loan Cap and greater than 33% of the Revolver Loan Cap	  	1.75%	  	0.75%
	 III
	  	Less than or equal to 33% of the Revolver Loan Cap	  	2.00%	  	1.00%

  
 19 

 PRICING GRID 

FILO TERM LOAN FACILITY 
  

							
	 Level
	  	 Quarterly Average

Excess Availability
	  	 Applicable Margin for

LIBOR Loans
	  	 Applicable

Margin for
 Base
Rate
 Loans

	 I
	  	Greater than 67% of the Revolver Loan Cap	  	3.25%	  	2.25%
	 II
	  	Less than or equal to 67% of the Revolver Loan Cap and greater than 33% of the Revolver Loan Cap	  	3.50%	  	2.50%
	 III
	  	Less than or equal to 33% of the Revolver Loan Cap	  	3.75%	  	2.75%

 CALCULATION OF 

	 INTEREST AND FEES: 
	Other than calculations in respect of interest at the Bank of America prime rate (which shall be made on the basis of actual number of days elapsed in a 365/366 day year), all calculations of interest and fees shall be made on the basis of
actual number of days elapsed in a 360 day year. 

 COST AND
YIELD 

	 PROTECTION: 
	Customary for transactions and facilities of this type, including, without limitation, in respect of breakage or redeployment costs incurred in connection with prepayments, changes in capital adequacy and capital requirements or their
interpretation, illegality, unavailability, reserves without proration or offset and payments free and clear of withholding or other taxes. 

  

	 EXPENSES: 
	The Borrowers will pay all reasonable costs and expenses associated with the preparation, due diligence, administration, syndication and closing of all loan documentation, including, without limitation, the legal fees of counsel to the
Administrative Agent and the Lead Arranger, regardless of whether or not the Senior Credit Facilities are closed. The Borrowers will also pay the expenses of the Administrative Agent and each Lender in connection with the enforcement of any of the
loan documentation. 

  
 20ex_124733.htm

Exhibit 4.6

 

 

 

 

 

 

FNCB BANCORP, INC.

 

SENIOR DEBT INDENTURE

 

DATED AS OF                  , 20

 

WILMINGTON TRUST, NATIONAL ASSOCIATION, AS TRUSTEE

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
			 

				
			Page Number

			
	
			 

				
			 

			
	
			Article I DEFINITIONS AND INCORPORATION BY REFERENCE

				1
	
			 

				
			 

				 
	
			Section 1.1

				
			Definitions

				1
	
			Section 1.2

				
			Other Definitions

				4
	
			Section 1.3

				
			Incorporation by Reference of Trust Indenture Act

				4
	
			Section 1.4

				
			Rules Of Construction

				4
	
			 

				
			 

				 
	
			Article II THE SECURITIES

				4
	
			 

				
			 

				 
	
			Section 2.1

				
			Issuable In Series

				4
	
			Section 2.2

				
			Establishment Of Terms Of Series Of Securities

				5
	
			Section 2.3

				
			Execution and Authentication

				6
	
			Section 2.4

				
			Registrar and Paying Agent

				6
	
			Section 2.5

				
			Paying Agent to Hold Money in Trust

				7
	
			Section 2.6

				
			Securityholder Lists

				7
	
			Section 2.7

				
			Transfer and Exchange

				7
	
			Section 2.8

				
			Mutilated, Destroyed, Lost and Stolen Securities

				7
	
			Section 2.9

				
			Outstanding Securities

				8
	
			Section 2.10

				
			Treasury Securities

				8
	
			Section 2.11

				
			Temporary Securities

				9
	
			Section 2.12

				
			Cancellation

				9
	
			Section 2.13

				
			Defaulted Interest

				9
	
			Section 2.14

				
			Global Securities

				9
	
			Section 2.15

				
			CUSIP Numbers

				10
	
			 

				
			 

				 
	
			Article III REDEMPTION

				10
	
			 

				
			 

				 
	
			Section 3.1

				
			Notice To Trustee

				10
	
			Section 3.2

				
			Selection of Securities to be Redeemed

				10
	
			Section 3.3

				
			Notice of Redemption

				11

 

 

 

 

	
			Section 3.4

				
			Effect of Notice of Redemption

				11
	
			Section 3.5

				
			Deposit of Redemption Price

				11
	
			Section 3.6

				
			Securities Redeemed in Part

				11
	
			 

				
			 

				 
	
			Article IV COVENANTS

				12
	
			 

				
			 

				 
	
			Section 4.1

				
			Payment of Principal and Interest

				12
	
			Section 4.2

				
			SEC Reports

				12
	
			Section 4.3

				
			Compliance Certificate

				12
	
			Section 4.4

				
			Stay, Extension and Usury Laws

				12
	
			Section 4.5

				
			Corporate Existence

				12
	
			Section 4.6

				
			Taxes

				12
	
			 

				
			 

				 
	
			Article V SUCCESSORS

				12
	
			 

				
			 

				 
	
			Section 5.1

				
			When Company May Merge, Etc

				12
	
			Section 5.2

				
			Successor Corporation Substituted

				13
	
			 

				
			 

				 
	
			Article VI  DEFAULTS AND REMEDIES

				13
	
			 

				
			 

				 
	
			Section 6.1

				
			Events of Default

				13
	
			Section 6.2

				
			Acceleration of Maturity; Rescission and Annulment

				14
	
			Section 6.3

				
			Collection Of Indebtedness And Suits For Enforcement By Trustee

				14
	
			Section 6.4

				
			Trustee May File Proofs Of Claim

				15
	
			Section 6.5

				
			Trustee May Enforce Claims Without Possession Of Securities

				15
	
			Section 6.6

				
			Application of Money Collected

				15
	
			Section 6.7

				
			Limitation On Suits

				15
	
			Section 6.8

				
			Unconditional Right of Holders to Receive Principal and Interest

				16
	
			Section 6.9

				
			Restoration of Rights and Remedies

				16
	
			Section 6.10

				
			Rights and Remedies Cumulative

				16
	
			Section 6.11

				
			Delay or Omission Not Waiver

				16
	
			Section 6.12

				
			Control by Holders

				16

 

ii

 

 

	
			Section 6.13

				
			Waiver Of Past Defaults

				16
	
			Section 6.14

				
			Undertaking For Costs

				17
	
			 

				
			 

				 
	
			Article VII TRUSTEE

				17
	
			 

				
			 

				 
	
			Section 7.1

				
			Duties of Trustee

				17
	
			Section 7.2

				
			Rights of Trustee

				18
	
			Section 7.3

				
			Individual Rights of Trustee

				19
	
			Section 7.4

				
			Trustee’s Disclaimer

				19
	
			Section 7.5

				
			Notice Of Defaults

				19
	
			Section 7.6

				
			Reports by Trustee to Holders

				19
	
			Section 7.7

				
			Compensation and Indemnity

				19
	
			Section 7.8

				
			Replacement of Trustee

				20
	
			Section 7.9

				
			Successor Trustee by Merger, Etc

				20
	
			Section 7.10

				
			Eligibility; Disqualification

				20
	
			Section 7.11

				
			Referential Collection of Claims Against Company

				21
	
			 

				
			 

				 
	
			Article VIII  SATISFACTION AND DISCHARGE; DEFEASANCE

				21
	
			 

				
			 

				 
	
			Section 8.1

				
			Satisfaction and Discharge of Indenture

				21
	
			Section 8.2

				
			Application of Trust Funds; Indemnification

				21
	
			Section 8.3

				
			Legal Defeasance of Securities of any Series

				22
	
			Section 8.4

				
			Covenant Defeasance

				23
	
			Section 8.5

				
			Repayment to Company

				23
	
			 

				
			 

				 
	
			Article IX  AMENDMENTS AND WAIVERS

				23
	
			 

				
			 

				 
	
			Section 9.1

				
			Without Consent of Holders

				23
	
			Section 9.2

				
			With Consent of Holders

				24
	
			Section 9.3

				
			Limitations

				24
	
			Section 9.4

				
			Compliance With Trust Indenture Act

				25
	
			Section 9.5

				
			Revocation and Effect of Consents

				25

 

iii

 

 

	
			Section 9.6

				
			Notation on or Exchange of Securities

				25
	
			Section 9.7

				
			Trustee Protected

				25
	
			 

				
			 

				 
	
			Article X MISCELLANEOUS

				25
	
			 

				
			 

				 
	
			Section 10.1

				
			Trust Indenture Act Controls

				25
	
			Section 10.2

				
			Notices

				25
	
			Section 10.3

				
			Communication by Holders with Other Holders

				26
	
			Section 10.4

				
			Certificate and Opinion as to Conditions Precedent

				26
	
			Section 10.5

				
			Statements Required in Certificate or Opinion

				26
	
			Section 10.6

				
			Rules by Trustee and Agents

				27
	
			Section 10.7

				
			Legal Holidays

				27
	
			Section 10.8

				
			No Recourse Against Others

				27
	
			Section 10.9

				
			Counterparts

				27
	
			Section 10.10

				
			Governing Laws

				27
	
			Section 10.11

				
			No Adverse Interpretation of Other Agreements

				27
	
			Section 10.12

				
			Successors

				27
	
			Section 10.13

				
			Severability

				27
	
			Section 10.14

				
			Table of Contents, Headings, Etc

				27
	
			 

				
			 

				 
	
			Article XI SINKING FUNDS

				27
	
			 

				
			 

				 
	
			Section 11.1

				
			Applicability of Article

				27
	
			Section 11.2

				
			Satisfaction Of Sinking Fund Payments With Securities

				28
	
			Section 11.3

				
			Redemption Of Securities For Sinking Fund

				28

 

iv

 

 

CROSS REFERENCE TABLE

 

	
			Trust Indenture

				
			 

				
			 

				
			 

				
			Indenture

			
	
			Act Section

				
			 

				
			 

				
			 

				
			Section

			
	
			Section 310

				
			 

				
			(a)(1)

				
			 

				
			7.10

			
	
			 

				
			 

				
			(a)(2)

				
			 

				
			7.10

			
	
			 

				
			 

				
			(a)(3)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(a)(4)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(a)(5)

				
			 

				
			7.10

			
	
			 

				
			 

				
			(b)

				
			 

				
			7.10

			
	
			Section 311

				
			 

				
			(a)

				
			 

				
			7.11

			
	
			 

				
			 

				
			(b)

				
			 

				
			7.11

			
	
			 

				
			 

				
			(c)

				
			 

				
			N/A

			
	
			Section 312

				
			 

				
			(a)

				
			 

				
			2.6

			
	
			 

				
			 

				
			(b)

				
			 

				
			10.3

			
	
			 

				
			 

				
			(c)

				
			 

				
			10.3

			
	
			Section 313

				
			 

				
			(a)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(b)(1)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(b)(2)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(c)(1)

				
			 

				
			7.6

			
	
			 

				
			 

				
			(d)

				
			 

				
			7.6

			
	
			Section 314

				
			 

				
			(a)

				
			 

				
			4.2, 10.5

			
	
			 

				
			 

				
			(b)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(c)(1)

				
			 

				
			10.4

			
	
			 

				
			 

				
			(c)(2)

				
			 

				
			10.4

			
	
			 

				
			 

				
			(c)(3)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(d)

				
			 

				
			N/A

			
	
			 

				
			 

				
			(e)

				
			 

				
			10.5

			
	
			 

				
			 

				
			(f)

				
			 

				
			N/A

			
	
			Section 315

				
			 

				
			(a)

				
			 

				
			7.1

			
	
			 

				
			 

				
			(b)

				
			 

				
			7.5

			
	
			 

				
			 

				
			(c)

				
			 

				
			7.1

			
	
			 

				
			 

				
			(d)

				
			 

				
			7.1

			
	
			 

				
			 

				
			(e)

				
			 

				
			6.14

			
	
			Section 316

				
			 

				
			(a)

				
			 

				
			2.10

			
	
			 

				
			 

				
			(a)(1)(A)

				
			 

				
			6.12

			
	
			 

				
			 

				
			(a)(1)(B)

				
			 

				
			6.13

			
	
			 

				
			 

				
			(b)

				
			 

				
			6.8

			
	
			Section 317

				
			 

				
			(a)(1)

				
			 

				
			6.3

			
	
			 

				
			 

				
			(a)(2)

				
			 

				
			6.4

			
	
			 

				
			 

				
			(b)

				
			 

				
			2.5

			
	
			Section 318

				
			 

				
			(a)

				
			 

				
			10.1

			

 

* This Cross Reference Table shall not, for any purpose, be deemed to be part of this Indenture.

 

v

 

 

This Senior Debt Indenture, dated as of             , 20     is made by and between FNCB BANCORP, INC., a Pennsylvania corporation (the “Company”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, not in its individual capacity but solely as trustee (the “Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture:

 

Article I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1           Definitions.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Service Agent.

 

“Authorized Newspaper” means a newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and of general circulation in the place in connection with which the term is used. If it shall be impractical in the opinion of the Trustee to make any publication of any notice required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice.

 

“Bearer Security” means any Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday, a legal holiday or any other day on which banking institutions in the City of New York, New York, or any Place of Payment are authorized or required by law, regulation or executive order to close.

 

“Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock.

 

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

 

 

 

“Company Request” means a written request signed in the name of the Company by its Chief Executive Officer, the President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date hereof is located at 1100 North Market Street, Wilmington, DE 19890, Attention: FNCB Bancorp, Inc. Administrator, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Depository” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depository for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depository” as used with respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the Stated Maturity thereof pursuant to Section 6.2.

 

“Dollars” and “$” means the currency of the United States of America.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Federal Reserve” means the Board of Governors of the Federal Reserve System, or its designated district bank, as applicable, and any successor federal agency that is primarily responsible for regulating the activities of bank holding companies.

 

“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect as of the date of determination.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee.

 

“Holder” or “Securityholder” means a person in whose name a Security is registered or the holder of a Bearer Security.

 

“Indenture” means this Senior Debt Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

 

“Maturity,” when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, or otherwise.

 

“Officer” means the Chief Executive Officer, the President, any Vice President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

2

 

 

“Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

“Opinion of Counsel” means a written opinion of legal counsel who is reasonably acceptable to the Trustee. The counsel may be an employee of or counsel to the Company.

 

OTS” means the Office of Thrift Supervision and any successor federal agency that is primarily responsible for regulating the activities of savings and loan holding companies.

 

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Place of Payment”, when used with respect to the Securities of or within any Series, means the place or places where the principal of (and premium, if any) and interest, if any, on such Securities are payable as specified and as contemplated by Section 2.1.

 

“principal” or “principal amount” of a Security means the principal amount of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject, in each case, who has direct responsibility for the administration of this Indenture.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2.

 

“Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” of any specified person means any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of that person or a combination thereof.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are (a) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (b) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, and which in the case of clauses (a) and (b) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

 

3

 

 

Section 1.2           Other Definitions.

 

	
			Term

				
			 

				
			Defined in Section

			
	
			“Bankruptcy Law”

				
			 

				
			6.1

			
	
			“Custodian”

				
			 

				
			6.1

			
	
			“Event of Default”

				
			 

				
			6.1

			
	
			“Legal Holiday”

				
			 

				
			10.7

			
	
			“mandatory sinking fund payment”

				
			 

				
			11.1

			
	
			“optional sinking fund payment”

				
			 

				
			11.1

			
	
			“Paying Agent”

				
			 

				
			2.4

			
	
			“Registrar”

				
			 

				
			2.4

			
	
			“Service Agent”

				
			 

				
			2.4

			
	
			“successor person”

				
			 

				
			5.1

			

 

Section 1.3           Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.4           Rules of Construction. Unless the context otherwise requires:

 

	 	
			(a)

				
			a term has the meaning assigned to it;

			

	 	
			(b)

				
			an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

			

	 	
			(c)

				
			references to “generally accepted accounting principles” and “GAAP” shall mean generally accepted accounting principles, consistently applied, in effect as of the time when and for the period as to which such accounting principles are to be applied;

			

	 	
			(d)

				
			“or” is not exclusive;

			

	 	
			(e)

				
			words in the singular include the plural, and in the plural include the singular; and

			

	 	
			(f)

				
			provisions apply to successive events and transactions.

			

 

Article II

THE SECURITIES

 

Section 2.1           Issuable in Series. The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided in a Board Resolution, supplemental indenture or Officers’ Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters; provided that all Series of Securities shall be equally and ratably entitled to the benefits of this Indenture.

 

4

 

 

Section 2.2           Establishment of Terms of Series of Securities. At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Section 2.2(a) and either as to such Securities within the Series or as to the Series generally, in the case of Sections 2.2(b) through 2.2(q)) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture or an Officers’ Certificate:

 

	 	
			(a)

				
			the title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

			

	 	
			(b)

				
			the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

			

	 	
			(c)

				
			any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

			

	 	
			(d)

				
			the date or dates on which the principal of the Securities of the Series is payable;

			

	 	
			(e)

				
			the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

			

	 	
			(f)

				
			the Place of Payment where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served, and the method of such payment, if by wire transfer, mail or other means;

			

	 	
			(g)

				
			if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

			

	 	
			(h)

				
			the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

			

	 	
			(i)

				
			the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

			

	 	
			(j)

				
			if other than minimum denominations of $1,000 and any integral multiple in excess thereof, the denominations in which the Securities of the Series shall be issuable;

			

	 	
			(k)

				
			the forms of the Securities of the Series in bearer or fully registered form (and, if in fully registered form, whether the Securities will be issuable as Global Securities);

			

	 	
			(l)

				
			if other than the entire principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

			

	 	
			(m)

				
			the provisions, if any, relating to any lien, security or encumbrance provided for the Securities of the Series;

			

	 	
			(n)

				
			any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.2;

			

 

5

 

 

	 	
			(o)

				
			any addition to or change in the covenants set forth in Article IV or V which applies to Securities of the Series;

			

	 	
			(p)

				
			any other terms of the Securities of the Series (which may modify or delete any provision of this Indenture insofar as it applies to such Series); and

			

	 	
			(q)

				
			any depositories, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein.

			

 

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officers’ Certificate referred to above, and the authorized principal amount of any Series may not be increased to provide for issuances of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers’ Certificate.

 

Section 2.3           Execution and Authentication.

 

Two Officers shall sign the Securities for the Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. Such a signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith shall determine that such action would expose the Trustee to personal liability.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

Section 2.4           Registrar and Paying Agent. The Company shall maintain, with respect to each Series of Securities, at the Place of Payment specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (the “Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (the “Registrar”) and where notices and demands (other than service of process) to or upon the Company in respect of the Securities of such Series and this Indenture may be served (the “Service Agent”). The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands (other than any service of process).

 

6

 

 

The Company may also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Service Agent” includes any additional service agent.

 

The Company hereby appoints the Trustee as the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

Section 2.5           Paying Agent to Hold Money in Trust. The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money. If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.

 

Section 2.6           Securityholder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.7           Transfer and Exchange. Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Section 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business 15 days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

Section 2.8           Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and make available for delivery in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

7

 

 

If there shall be delivered to the Company and the Trustee (a) evidence to their satisfaction of the destruction, loss or theft of any Security and (b) such security or satisfactory indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

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

 

Section 2.9           Outstanding Securities. The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue (to the extent of the Maturity of such Security if less than the entire principal amount is due and payable on such date of Maturity).

 

A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

Section 2.10         Treasury Securities. In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Securities of a Series that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

 

8

 

 

Section 2.11         Temporary Securities. Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon request shall authenticate definitive Securities of the same Series and Stated Maturity in exchange for temporary Securities. Until so exchanged, temporary Securities shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12         Cancellation. All Securities and coupons surrendered for payment, redemption, repayment at the option of the Holder, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such Securities and coupons and Securities and coupons surrendered directly to the Trustee for any such purpose shall be promptly cancelled by the Trustee. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are surrendered to the Trustee for cancellation. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. Cancelled Securities and coupons held by the Trustee shall be destroyed by the Trustee in accordance with its customary procedures. The Company by Company Order may direct the Trustee to deliver a certificate of such destruction to the Company.

 

Section 2.13         Defaulted Interest. If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment date. At least 10 days before the record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14         Global Securities.

 

	 	
			(a)

				
			Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depository for such Global Security or Securities.

			

	 	
			(b)

				
			Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 for Securities registered in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository registered as a clearing agency under the Exchange Act within 90 days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

			

 

Except as provided in this Section 2.14(b), a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.

 

9

 

 

	 	
			(c)

				
			Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form:

			

 

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository. This Security is exchangeable for Securities registered in the name of a person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.”

 

	 	
			(d)

				
			Acts of Holders. The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under this Indenture.

			

	 	
			(e)

				
			Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

			

	 	
			(f)

				
			Consents, Declaration and Directions. Except as provided in Section 2.14(e), the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depository with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

			

 

Section 2.15         CUSIP Numbers. The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.

 

Article III

REDEMPTION

 

Section 3.1           Notice to Trustee. The Company may, with respect to any Series of Securities, reserve the right (subject to the receipt by the Company of prior approval (i) if the Company is a bank holding company, from the Federal Reserve, if then required under applicable capital guidelines or policies of the Federal Reserve or (ii) if the Company is a savings and loan holding company, from the OTS, if then required under applicable capital guidelines or policies of the OTS) to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice at least 45 days before the redemption date (or such shorter notice as may be acceptable to the Trustee).

 

Section 3.2           Selection of Securities to be Redeemed. Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if less than all the Securities of any Series issued on the same day with the same terms are to be redeemed, the particular Securities to be redeemed shall be selected not more than 45 days prior to the redemption date by the Trustee, from the Outstanding Securities of such Series issued on such date with the same terms not previously called for redemption, by such method as the Trustee shall deem fair and appropriate, and, in the case of global Securities, in accordance with the procedures of the depositary; provided that such method complies with the rules of any national securities exchange or quotation system on which the Securities are listed, and may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that Series or any integral multiple thereof) of the principal amount of Securities of such Series of a denomination larger than the minimum authorized denomination for Securities of that Series; provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Security not redeemed to less than the minimum authorized denomination for Securities of such Series.

 

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The Trustee shall promptly notify the Company and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.

 

Notwithstanding the foregoing, if any Security to be redeemed is a Global Security then any partial redemption of that Series of Securities will be made in accordance with the Depository’s applicable procedures among all Holders of such Series of Securities.

 

Section 3.3           Notice of Redemption. Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 30 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed and, if any Bearer Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper.

 

The notice shall identify the Securities of the Series to be redeemed and shall state:

 

	 	
			(a)

				
			the redemption date;

			

	 	
			(b)

				
			the redemption price and accrued interest, if any, to the redemption date payable as provided;

			

	 	
			(c)

				
			the name and address of the Paying Agent;

			

	 	
			(d)

				
			that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

			

	 	
			(e)

				
			that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date;

			

	 	
			(f)

				
			the CUSIP number, if any;

			

	 	
			(g)

				
			any conditions precedent that must be satisfied prior to the redemption; and

			

	 	
			(h)

				
			any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

			

 

At the Company’s request given at least five Business Days prior to the date such notice is given to Holders, the Trustee shall give the notice of redemption in the Company’s name and at its expense.

 

Section 3.4           Effect of Notice of Redemption. Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price, subject to, with respect to any redemption that is conditioned upon the satisfaction of any conditions precedent, (i) the delay of such redemption date until such time as any or all of such conditions precedent have been satisfied or (ii) the revocation of such redemption if the Company determines that such conditions precedent will not be satisfied. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to, but excluding, the redemption date; provided that installments of interest whose Stated Maturity is on or prior to the redemption date shall be payable to the Holders of such Securities (or one or more predecessor Securities) registered at the close of business on the relevant record date therefor according to their terms and the terms of this Indenture.

 

Section 3.5           Deposit of Redemption Price. On or before the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.6           Securities Redeemed in Part. Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

11

 

 

Article IV

COVENANTS

 

Section 4.1           Payment of Principal and Interest. The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.2           SEC Reports. The Company shall deliver to the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a). Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officers’ Certificate).

 

Section 4.3           Compliance Certificate. The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his/her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have knowledge).

 

The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.4           Stay, Extension and Usury Laws. The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

Section 4.5           Corporate Existence. Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the rights (charter and statutory), licenses and franchises of the Company; provided, however, that the Company shall not be required to preserve any such right, license or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.

 

Section 4.6           Taxes. The Company shall pay prior to delinquency all taxes, assessments and governmental levies, except as contested in good faith and by appropriate proceedings.

 

Article V

SUCCESSORS

 

Section 5.1           When Company May Merge, Etc. The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”), nor shall the Company permit any other person to consolidate with or merge into it or convey, transfer or lease all or substantially all of its properties and assets to it, in either case unless:

 

12

 

 

	 	
			(a)

				
			the Company is the surviving corporation or the successor person (if other than the Company) is a corporation organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the Securities and under this Indenture; and

			

	 	
			(b)

				
			immediately after giving effect to the transaction, and treating any indebtedness that becomes the obligation of the Company or any of its Subsidiaries as having been incurred at the effective date of such transaction no Default or Event of Default shall have occurred and be continuing.

			

 

The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture.

 

Section 5.2           Successor Corporation Substituted. Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities.

 

Article VI

DEFAULTS AND REMEDIES

 

Section 6.1           Events of Default.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

	 	
			(a)

				
			default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such period of 30 days);

			

	 	
			(b)

				
			default in the payment of principal of any Security of that Series at its Maturity;

			

	 	
			(c)

				
			default in the deposit of any sinking fund payment, when and as due in respect of any Security of that Series;

			

	 	
			(d)

				
			default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty for which the consequences of nonperformance or breach are addressed elsewhere in this Section 6.1 and other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default or breach continues uncured or unwaived in accordance with the provisions of this Indenture for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of not less than 25.0% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

			

	 	
			(e)

				
			the Company pursuant to or within the meaning of any Bankruptcy Law:

			

	 	
			i.

				
			commences a voluntary case,

			

	 	
			ii.

				
			consents to the entry of an order for relief against it in an involuntary case,

			

	 	
			iii.

				
			consents to the appointment of a Custodian of it or for all or substantially all of its property,

			

	 	
			iv.

				
			makes a general assignment for the benefit of its creditors, or

			

	 	
			v.

				
			generally is unable to pay its debts as the same become due; or

			

	 	
			(f)

				
			a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

			

	 	
			i.

				
			is for relief against the Company in an involuntary case,

			

	 	
			ii.

				
			appoints a Custodian of the Company or for all or substantially all of its property, or

			

	 	
			iii.

				
			orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or

			

 

13

 

 

	 	
			(g)

				
			any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.2(n).

			

 

The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

Section 6.2           Acceleration of Maturity; Rescission and Annulment. Except to the extent provided otherwise in the establishing Board Resolution, supplemental indenture or Officers’ Certificate for such Series, if an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(e) or 6.1(f)), then in every such case the Trustee or the Holders of not less than 25.0% in aggregate principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or portion thereof) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 6.1(e) or 6.1(f) shall occur, the principal amount (or portion thereof) of and accrued and unpaid interest, if any, on all outstanding Securities shall automatically become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13.

 

No such rescission shall affect any subsequent Default or impair any right consequent thereon.

 

Section 6.3           Collection of Indebtedness and Suits for Enforcement by Trustee. The Company covenants that if:

 

	 	
			(a)

				
			default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days,

			

	 	
			(b)

				
			default is made in the payment of principal of any Security at the Maturity thereof, or

			

	 	
			(c)

				
			default is made in the deposit of any sinking fund payment when and as due by the terms of a Security,

			

 

then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal and any overdue interest at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

14

 

 

Section 6.4           Trustee may File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, (a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and (b) to collect and receive any moneys 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 Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.5           Trustee may Enforce Claims Without Possession of Securities. All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.6           Application of Money Collected. Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

First: To the payment of all amounts due the Trustee under Section 7.7; and

 

Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

 

Third: To the Company.

 

Section 6.7           Limitation on Suits. No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 

	 	
			(a)

				
			such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that Series;

			

	 	
			(b)

				
			the Holders of not less than 25.0% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

			

 

15

 

 

	 	
			(c)

				
			such Holder or Holders have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

			

	 	
			(d)

				
			the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

			

	 	
			(e)

				
			no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series;

			

 

it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 

Section 6.8           Unconditional Right of Holders to Receive Principal and Interest. Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 6.9           Restoration of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 6.10         Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.11         Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 6.12         Control by Holders. The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series; provided that:

 

	 	
			(a)

				
			such direction shall not be in conflict with any rule of law or with this Indenture;

			

	 	
			(b)

				
			the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and

			

	 	
			(c)

				
			the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability.

			

 

Section 6.13         Waiver of Past Defaults. The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default (a) in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration) or (b) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each outstanding Security of such Series affected. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

16

 

 

Section 6.14         Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date).

 

Article VII

TRUSTEE

 

Section 7.1           Duties of Trustee.

 

	 	
			(a)

				
			If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of their own affairs.

			

	 	
			(b)

				
			Except during the continuance of an Event of Default:

			

	 	
			i.

				
			The Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee. The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within its rights or powers. The Trustee is not required to give any bond or surety with respect to the performance of its duties or the exercise of its powers under this Indenture. The permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

			

	 	
			ii.

				
			In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture.

			

	 	
			(c)

				
			The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act, its own bad faith or its own willful misconduct, except that:

			

	 	
			i.

				
			This paragraph does not limit the effect of paragraph (b) of this Section.

			

	 	
			ii.

				
			The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

			

	 	
			iii.

				
			The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

			

	 	
			(d)

				
			Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (g) of this Section.

			

	 	
			(e)

				
			The Trustee may refuse to perform any duty or exercise any right or power at the request or direction of any Holder unless it receives security or indemnity satisfactory to it against any loss, liability or expense.

			

 

17

 

 

	 	
			(f)

				
			The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

			

	 	
			(g)

				
			No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or satisfactory indemnity against such risk is not assured to it.

			

	 	
			(h)

				
			The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections, immunities and standard of care as are set forth in paragraphs (b) and (c) of this Section with respect to the Trustee.

			

 

Section 7.2           Rights of Trustee.

 

	 	
			(a)

				
			The Trustee may rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document.

			

	 	
			(b)

				
			Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate, an Opinion of Counsel, or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate and/or Opinion of Counsel.

			

	 	
			(c)

				
			The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care. No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depository.

			

	 	
			(d)

				
			The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute negligence or willful misconduct.

			

	 	
			(e)

				
			The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

			

	 	
			(f)

				
			The Trustee may consult with counsel of its selection and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance thereon.

			

	 	
			(g)

				
			The Trustee may conclusively rely upon and shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

			

	 	
			(h)

				
			The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities of a particular Series and this Indenture.

			

	 	
			(i)

				
			Delivery of reports, information and documents (including, without limitation, reports contemplated in this Section) to the Trustee is for information purposes only, and the Trustee’s receipts thereof shall not constitute actual or constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with covenants under this Indenture, Securities, and guarantees (if any), as to which the Trustee is entitled to rely exclusively on Officers’ Certificates.

			

	 	
			(j)

				
			The Trustee shall have no responsibility for monitoring the Company’s compliance with any of its covenants under this Indenture.

			

	 	
			(k)

				
			The Trustee shall not be responsible or liable for punitive, special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of actions.

			

	 	
			(l)

				
			Any permissive right of the Trustee to take or refrain from taking actions enumerated in this Indenture shall not be construed as a duty.

			

 

18

 

 

	 	
			(m)

				
			The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including, without limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunction of utilities, computer (hardware or software) or communication services; accidents; labor disputes; and acts of civil or military authorities and governmental action.

			

	 	
			(n)

				
			The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of any Series, relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

			

 

Section 7.3           Individual Rights of Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.4           Trustee’s Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.5           Notice of Defaults. If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an Authorized Newspaper, notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as it in good faith determines that withholding the notice is in the interests of Securityholders of that Series.

 

Section 7.6           Reports by Trustee to Holders. Within 60 days after September 15 in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as of such September 15, in accordance with, and to the extent required under, TIA Section 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange, if any, on which the Securities of that Series are listed. The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange.

 

Section 7.7           Compensation and Indemnity. The Company shall pay to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable expenses incurred by it. Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify each of the Trustee and any predecessor Trustee (including the cost of defending itself) against any loss, liability, claim (including any between the parties to this Indenture), suit or expense, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee to the extent of its negligence or willful misconduct.

 

19

 

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(e) or 6.1(f) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The provisions of this Section shall survive the resignation or removal of the Trustee and the termination of this Indenture.

 

Section 7.8           Replacement of Trustee. A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company. The Company may remove the Trustee with respect to Securities of one or more Series if:

	 	
			(a)

				
			the Trustee fails to comply with Section 7.10;

			

	 	
			(b)

				
			the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

			

	 	
			(c)

				
			a Custodian or public officer takes charge of the Trustee or its property; or

			

	 	
			(d)

				
			the Trustee becomes incapable of acting.

			

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper. Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it prior to such replacement.

 

Section 7.9           Successor Trustee by Merger, Etc. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another person, the successor person without any further act shall be the successor Trustee.

 

Section 7.10         Eligibility; Disqualification. This Indenture shall always have a Trustee who satisfies the requirements of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA Section 310(b).

 

20

 

 

Section 7.11         Referential Collection of Claims Against Company. The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

 

Article VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.1           Satisfaction and Discharge of Indenture. This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

	 	
			(a)

				
			either:

			

	 	
			i.

				
			all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

			

	 	
			ii.

				
			all such Securities not theretofore delivered to the Trustee for cancellation

			

	 	
			(1)

				
			have become due and payable, or

			

	 	
			(2)

				
			will become due and payable at their Stated Maturity within one year, or

			

	 	
			(3)

				
			are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company; or

			

	 	
			(4)

				
			are deemed paid and discharged pursuant to Section 8.3, as applicable;

			

 

and the Company, in the case of clauses (1), (2) and (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

	 	
			(b)

				
			the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

			

	 	
			(c)

				
			the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

			

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1, 8.2 and 8.5 shall survive.

 

Section 8.2           Application of Trust Funds; Indemnification.

 

	 	
			(a)

				
			Subject to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (other than the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Section 8.3 or 8.4.

			

	 	
			(b)

				
			The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations deposited pursuant to Section 8.3 or 8.4 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders.

			

	 	
			(c)

				
			The Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or money held by it as provided in Section 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations held under this Indenture.

			

 

21

 

 

Section 8.3           Legal Defeasance of Securities of any Series. Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2(p), to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 90th day after the date of the deposit referred to in subparagraph (c) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to:

 

	 	
			(a)

				
			the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (c) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

			

	 	
			(b)

				
			the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3, and 8.5; and

			

	 	
			(c)

				
			the rights, powers, trust and immunities of the Trustee hereunder; provided that, the following conditions shall have been satisfied:

			

	 	
			i.

				
			the Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities, cash in Dollars and/or U.S. Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a regionally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

			

	 	
			ii.

				
			such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

			

	 	
			iii. 

				
			no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 90th day after such date;

			

	 	
			iv. 

				
			the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (B) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amounts and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

			

	 	
			v. 

				
			the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

			

	 	
			vi. 

				
			the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

			

 

22

 

 

Section 8.4           Covenant Defeasance. Unless this Section 8.4 is otherwise specified pursuant to Section 2.2(p) to be inapplicable to Securities of any Series, on and after the 91st day after the date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.6, and 5.1 as well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2(p) (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2(n) and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series; provided that the following conditions shall have been satisfied:

 

	 	
			(a)

				
			With reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities, cash in Dollars and/or U.S. Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a regionally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

			

	 	
			(b)

				
			Such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

			

	 	
			(c)

				
			No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 90th day after such date;

			

	 	
			(d)

				
			The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred; and

			

	 	
			(e)

				
			The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with.

			

 

Section 8.5           Repayment to Company. The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for six months. After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

Article IX

AMENDMENTS AND WAIVERS

 

Section 9.1           Without Consent of Holders. The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder by indentures supplemental hereto:

 

	 	
			(a)

				
			to cure any ambiguity, defect or inconsistency;

			

	 	
			(b)

				
			to comply with Article V;

			

	 	
			(c)

				
			to evidence the succession of another corporation to the Company, or successive successions, pursuant to Article XI, and the assumption by the successor corporation of the covenants, agreements and obligations of the Company herein and in the Securities;

			

	 	
			(d)

				
			to add to the covenants of the Company such further covenants, restrictions, conditions or provisions as its Board of Directors shall consider to be for the protection of the holders of Securities, and to make the occurrence, or the occurrence and continuance, of a default in any of such additional covenants, restrictions, conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth, with such period of grace, if any, and subject to such conditions as such supplemental indenture may provide;

			

 

23

 

 

	 	
			(e)

				
			to add to or change any of the provisions of this Indenture to provide that Bearer Securities may be registrable as to principal, to change or eliminate any restrictions on the payment of principal of or any premium or interest on Bearer Securities, to permit Bearer Securities to be issued in exchange for Registered Securities, to permit Bearer Securities to be issued in exchange for Bearer Securities of other authorized denominations or to permit or facilitate the issuance of Securities in uncertificated form; provided that any such action shall not adversely affect the interests of the holders of Securities of any Series or any related coupons in any material respect;

			

	 	
			(f)

				
			to modify, eliminate or add to the provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA, or under any similar federal statute hereafter enacted, and to add to this Indenture such other provisions as may be expressly permitted by the TIA, excluding however, the provisions referred to in Section 316(a)(2) of the TIA or any corresponding provision in any similar federal statute hereafter enacted;

			

	 	
			(g)

				
			to add any additional Events of Default (and if such Events of Default are to be for the benefit of less than all Series of Securities, stating that such are expressly being included solely for the benefit of such Series);

			

	 	
			(h)

				
			to modify, eliminate or add to any of the provisions of this Indenture; provided that any such change or elimination (i) shall become effective only when there is no Security of any Series Outstanding and created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision or (ii) shall not apply to any Security Outstanding;

			

	 	
			(i)

				
			to provide for uncertificated Securities in addition to or in place of certificated Securities;

			

	 	
			(j)

				
			to make any change that does not adversely affect the rights of any Securityholder;

			

	 	
			(k)

				
			to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

			

	 	
			(l)

				
			to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; or

			

	 	
			(m)

				
			to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

			

 

Section 9.2           With Consent of Holders. The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of any Series by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture or waiver under this Section becomes effective, the Company shall mail to the Holders of Securities affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Section 9.3           Limitations. Without the consent of each Securityholder affected, an amendment or waiver may not:

 

	 	
			(a)

				
			reduce the amount of Securities whose Holders must consent to an amendment, supplement or waiver;

			

	 	
			(b)

				
			reduce the rate of or extend the time for payment of interest (including default interest) on any Security;

			

 

24

 

 

	 	
			(c)

				
			reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

			

	 	
			(d)

				
			reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

			

	 	
			(e)

				
			waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

			

	 	
			(f)

				
			make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

			

	 	
			(g)

				
			make any change in Section 6.8, 6.13, or 9.3 (this sentence); or

			

	 	
			(h)

				
			waive a redemption payment with respect to any Security.

			

 

Section 9.4           Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.5           Revocation and Effect of Consents. Until an amendment is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date of the supplemental indenture or the date the waiver becomes effective.

 

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.6           Notation on or Exchange of Securities. The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.7           Trustee Protected. In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon, an Officers’ Certificate and Opinion of Counsel stating that all conditions precedent have been satisfied, the execution of such supplemental indenture is authorized or permitted by this Indenture and that such supplemental indenture is the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms. The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that adversely affects it.

 

Article X

MISCELLANEOUS

 

Section 10.1         Trust Indenture Act Controls. If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.2         Notices. Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed by first-class mail:

 

if to the Company:

 

FNCB Bancorp, Inc.

102 East Drinker Street

Dunmore, Pennsylvania 18512

Attention: James M. Bone, Jr., CPA, Executive Vice President and Chief Financial Officer

Telephone: (570) 346-7667

 

25

 

 

if to the Trustee:

 

Wilmington Trust, National Association

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: FNCB Bancorp, Inc. Administrator

Telephone: (302) 636-6398

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication to a Securityholder shall be mailed by first-class mail to his address shown on the register kept by the Registrar and, if any Bearer Securities are outstanding, published in an Authorized Newspaper. Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other Series.

 

If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If the Company mails a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time. Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event or any other communication (including any notice of redemption or repurchase) to a Securityholder of a Security (whether by mail or otherwise), such notice shall be sufficiently given if given to Depository (or its designee) pursuant to the applicable procedures from Depository or its designee, including by electronic mail in accordance with accepted practices at Depository.

 

Section 10.3         Communication by Holders with Other Holders. Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 10.4         Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

	 	
			(a)

				
			an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

			

	 	
			(b)

				
			an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

			

 

Section 10.5         Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

	 	
			(a)

				
			a statement that the person making such certificate or opinion has read such covenant or condition;

			

	 	
			(b)

				
			a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

			

	 	
			(c)

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

			

	 	
			(d)

				
			a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

			

 

26

 

 

Section 10.6         Rules by Trustee and Agents. The Trustee may make reasonable rules for action by, or a meeting of, Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 10.7         Legal Holidays. Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 10.8         No Recourse Against Others. A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities.

 

Section 10.9         Counterparts. This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. The exchange of copies of this Indenture and of signature pages by facsimile or electronic format (e.g., “.pdf” or “.tif”) transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or electronic format (e.g., “.pdf” or “.tif”) shall be deemed to be their original signatures for all purposes.

 

Section 10.10         Governing Laws. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

Section 10.11         No Adverse Interpretation of Other Agreements. This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 10.12         Successors. All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.13         Severability. In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 10.14         Table of Contents, Headings, Etc. The Table of Contents, Cross-Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Article XI

SINKING FUNDS

 

Section 11.1         Applicability of Article. The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

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Section 11.2         Satisfaction of Sinking Fund Payments with Securities. The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (a) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (b) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment; provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

Section 11.3         Redemption of Securities for Sinking Fund. Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

[Signature page follows]

 

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

 

	
			 

				
			FNCB BANCORP, INC.

			
	
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			 

			
	
			 

				
			 

				
			Name:

			
	
			 

				
			 

				
			Title:

			
	
			 

				
			 

			
	
			 

				
			WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee

			
	
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			 

			
	
			 

				
			 

				
			Name:

			
	
			 

				
			 

				
			Title:

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