Document:

Document

EXHIBIT 4.1

Execution Version

FISCAL AGENCY AGREEMENT

Between

NORTHERN NATURAL GAS COMPANY,
as Issuer
and

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Fiscal Agent

Dated as of April 9, 2021

3.400% Senior Bonds due 2051

US-DOCS\122006522.7

EXHIBIT 4.1

TABLE OF CONTENTS
												
				Page
	1.	The Securities..........................................................................................................................	1
				
		(a)	General............................................................................................................................	1
		(b)	Form of Securities; Denominations of Securities...........................................................	1
		(c)	Temporary Securities......................................................................................................	4
		(d)	Legends...........................................................................................................................	5
		(e)	Book-Entry Provisions...................................................................................................	5
				
	2.	Fiscal Agent; Other Agents.....................................................................................................	6
				
	3.	Authentication.........................................................................................................................	7
				
	4.	Payment and Cancellation.......................................................................................................	7
				
		(a)	Payment..........................................................................................................................	7
		(b)	Cancellation....................................................................................................................	8
				
	5.	Transfer and Exchange of Securities.......................................................................................	8
				
		(a)	Transfers of Global Securities as Such...........................................................................	8
		(b)	Exchanges of Global Securities for Definitive Securities..............................................	8
		(c)	Beneficial Interests.........................................................................................................	9
		(d)	Special Provisions Regarding Transfer of Beneficial Interests in a Regulation S Global Security........................	9
		(e)	Special Provisions Regarding Transfer of Beneficial Interests in a Rule 144A Global Security........................................	13
		(f)	Special Provisions Regarding Transfer of Restricted Definitive Securities...................	15
				
	6.	Mutilated, Destroyed, Stolen or Lost Securities......................................................................	17
				
	7.	Register; Record Date for Certain Actions..............................................................................	18
				
	8.	Delivery of Certain Information..............................................................................................	20
				
		(a)	Non-Reporting Issuer.....................................................................................................	20
		(b)	Information After One Year...........................................................................................	20
		(c)	Periodic Reports.............................................................................................................	20
				
				
				
				

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EXHIBIT 4.1

												
	9.	Conditions of Fiscal Agent's Obligations................................................................................	21
				
		(a)	Compensation and Indemnity.........................................................................................	21
		(b)	Agency............................................................................................................................	21
		(c)	Advice of Counsel..........................................................................................................	22
		(d)	Reliance..........................................................................................................................	22
		(e)	Interest in Securities, etc.................................................................................................	22
		(f)	Certifications..................................................................................................................	22
		(g)	No Implied Obligations..................................................................................................	22
		(h)	No Liability.....................................................................................................................	22
		(i)	No Inquiry.......................................................................................................................	23
		(j)	Agents.............................................................................................................................	23
		(k)	Directors, Officers..........................................................................................................	23
				
	10.	Resignation and Appointment of Successor............................................................................	23
				
		(a)	Fiscal Agent and Paying Agent......................................................................................	23
		(b)	Resignation.....................................................................................................................	23
		(c)	Successors.......................................................................................................................	24
		(d)	Acknowledgment............................................................................................................	24
		(e)	Merger, Consolidation, etc.............................................................................................	25
				
	11.	Payment of Taxes....................................................................................................................	25
				
	12.	Amendments............................................................................................................................	25
				
		(a)	Approval.........................................................................................................................	25
		(b)	Binding Nature of Amendments, Notice, Notations, etc................................................	26
		(c)	"Outstanding" Defined....................................................................................................	26
				
	13.	GOVERNING LAW...............................................................................................................	27
				
	14.	Notices.....................................................................................................................................	27
				
	15.	Defeasance (Legal and Covenant)...........................................................................................	27
				
		(a)	Issuer's Option to Effect Defeasance or Covenant Defeasance......................................	27
		(b)	Defeasance and Discharge..............................................................................................	28
		(c)	Covenant Defeasance......................................................................................................	28
		(d)	Conditions to Defeasance and Covenant Defeasance.....................................................	28
		(e)	Deposit in Trust; Miscellaneous.....................................................................................	30
		(f)	Reinstatement.................................................................................................................	31

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	16.	Headings..................................................................................................................................	31
				
	17.	Counterparts............................................................................................................................	31
				
	18.	Successors and Assigns...........................................................................................................	31
				
	19.	Separability Clause..................................................................................................................	31
				
	20.	Waiver of Jury Trial................................................................................................................	31
				
	21.	Force Majeure..........................................................................................................................	32
				
	22.	FATCA....................................................................................................................................	32
				
	23.	Electronic Signatures...............................................................................................................	32

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EXHIBIT 4.1

FISCAL AGENCY AGREEMENT (this “Agreement”), dated as of April 9, 2021, between NORTHERN NATURAL GAS COMPANY, a corporation duly organized under the laws of the State of Delaware (the “Issuer”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as Fiscal Agent (as defined in Section 2 hereof).
RECITALS OF THE ISSUER
The Issuer has duly authorized the creation of an issue of its 3.400% Senior  Bonds due October 16, 2051 (the “Securities”) of substantially the tenor and amount hereinafter set forth, and to provide therefor the Issuer has duly authorized the execution and delivery of this Agreement.

All things necessary to make the Securities, when executed by the Issuer and authenticated and delivered hereunder and duly issued by the Issuer, the valid and  legally binding obligations of the Issuer, and to make this Agreement a valid and legally binding agreement of the Issuer, in accordance with their and its terms, have been done.

1.The Securities General The initial aggregate principal amount of Securities issued under this Agreement will be $550,000,000. The aggregate principal amount of Securities which may be authenticated and delivered under this Agreement is unlimited, including without limitation, Securities authenticated and delivered upon registration of transfer, or in exchange for, or in lieu of other Securities pursuant to the provisions of this Agreement or the Securities. The Securities and any additional Securities subsequently issued under this Agreement will be treated as a single class for all purposes under this Agreement.

The Securities shall be known and designated as the “3.400% Senior Bonds due 2051” of the Issuer. The Securities will be unsecured, direct, unconditional and general obligations of the Issuer and will rank pari passu with all other unsecured and unsubordinated indebtedness of the Issuer.

(b) Form of Securities; Denominations of Securities The Securities will be issued in registered form without coupons in substantially the form, and including the terms, provided for herein and on Exhibit A. The Securities shall be executed manually or in facsimile on behalf of the Issuer by its Chairman of the Board, President or a Vice President and by its Secretary or an Assistant Secretary (the “Authorized Officers”), notwithstanding that such officers, or any one of them, shall have ceased, for any reason, to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities. The Securities may also have such additional provisions, omissions, variations or substitutions as are not inconsistent with the provisions of this Agreement and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with any law or with any rules made pursuant thereto or with the rules of any securities exchange or governmental agency or as may, consistently herewith, be determined by the Authorized Officers of the Issuer executing such Securities, as conclusively evidenced by their execution of such Securities. All of the Securities shall be otherwise substantially identical except as to denominations of Securities and as provided herein.

EXHIBIT 4.1

(i)Except as otherwise set forth in this Agreement, the Securities offered and sold in their initial resale distribution to a qualified institutional buyer (as defined in Rule 144A (“Rule 144A”) under the United States Securities Act of 1933, as amended (the “Act”), each a “QIB”) in reliance on Rule 144A (“Rule 144A Securities”) shall initially be issued in the form of one or more Global Securities (as defined in Section 1(e) hereof) in definitive, fully registered form, substantially in the form set forth on Exhibit A, with such applicable legends as are provided for herein and on Exhibit A, and in minimum denominations of $2,000 and in integral multiples of $1,000 in excess of $2,000. Such Global Securities shall be duly executed by the Issuer and authenticated by the Fiscal Agent as hereinafter provided, and deposited with the U.S. Depository (as defined in Section 1(e) hereof). Until such time as the Holding Period (as defined below) shall have terminated, each such Security shall be referred to as a “Rule 144A Global Security.” The aggregate principal amount of any Rule 144A Global Security may be adjusted by endorsements to Schedule A on the reverse thereof in any situation where adjustment is permitted or required by this Agreement or provided for on Exhibit A. Unless the Issuer determines otherwise in accordance with applicable law, the legend setting forth transfer restrictions shall be removed or deemed removed from a Rule 144A Security in accordance with the procedures set forth in Section 1(d) after such time as the applicable Holding Period shall have terminated, and each such Security shall thereafter be held as an unrestricted Security. As used herein, the term “Holding Period,” with respect to Rule 144A Securities, means the period referred to in Rule 144(d) under the Act or any successor provision thereto (“Rule 144(d)”) and as may be amended or revised from time to time, beginning from the later of (i) the original issue date of such Securities or (ii) the last date on which the Issuer or any affiliate of the Issuer was the beneficial owner of such Securities (or any predecessor thereof).
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(ii)Except as otherwise set forth in this Agreement, Securities offered and sold in reliance on Regulation S under the Act (“Regulation S”) will be issued initially in the form of one or more temporary Global Securities in the form provided for herein and on Exhibit A, with such applicable legends as are provided for herein and on Exhibit A, and in minimum denominations of $2,000 and in integral multiples of $1,000 in excess of $2,000 equal to the outstanding principal amount of the Securities initially sold in reliance on Rule 903 of Regulation S under the Act (the “Regulation S Temporary Global Securities”). The Regulation S Temporary Global Securities, which will be deposited on behalf of the purchasers of the Securities represented thereby with the Fiscal Agent, as custodian for the U.S. Depository, and registered in the name of the U.S. Depository or the nominee of the U.S. Depository for the accounts of designated agents holding on behalf of Euroclear Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”), or Clearstream Banking, S.A. (“Clearstream”), shall be duly executed by the Issuer and authenticated by the Fiscal Agent as hereinafter provided. Following the termination of the Distribution Compliance Period (as defined below) and upon the receipt by the Fiscal Agent of:

a.a written certificate from the U.S. Depository, together with copies of certificates from Euroclear and Clearstream, certifying that they have received certification of non-United States beneficial ownership of 100% of the aggregate principal amount of the Regulation S Temporary Global Securities (except to the extent of any beneficial owners thereof who acquired an interest therein during the Distribution Compliance Period pursuant to another exemption from registration under the Act and who will take delivery of a beneficial ownership interest in a Rule 144A Global Security or a Restricted Definitive Security (as defined below), all as contemplated by Section 5(d) hereof); and

b.a certificate signed by the Authorized Officers (“ Officers’ Certificate”),

beneficial interests in the Regulation S Temporary Global Securities will be exchanged for beneficial interests in a permanent global Security in the form provided for herein and on Exhibit A, issued in a denomination equal to the outstanding principal amount of the Regulation S Temporary Global Securities (the “Regulation S Permanent Global Securities”) pursuant to the rules and regulations of the U.S. Depository, Euroclear or Clearstream, as applicable, in each case pertaining to beneficial interests in Global Securities (“Applicable Procedures”). Simultaneously with the authentication of the Regulation S Permanent Global Securities, the Fiscal Agent will cancel the Regulation S Temporary Global Securities. As used herein, “Regulation S Global Securities” means the Regulation S Temporary Global Securities or the Regulation S Permanent Global Securities, as applicable.

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EXHIBIT 4.1

The aggregate principal amount of the Regulation S Temporary Global Securities and the Regulation S Permanent Global Securities may be adjusted by endorsements to Schedule A on the reverse thereof in any situation where adjustment is permitted or required by this Agreement. As used herein, the term “Distribution Compliance Period,” with respect to Regulation S Securities, means the period of 40 consecutive days beginning on and including the later of (i) the date on which interests in such Securities are offered to Persons (as defined below) other than distributors (as defined in Regulation S) and (ii) the original issue date of such Securities. Except as otherwise provided in this Agreement, no Regulation S Global Security shall be issued except as provided in this paragraph to evidence Securities offered and sold in reliance on Regulation S. Unless the Issuer determines otherwise in accordance with applicable law, the legend setting forth transfer restrictions shall be removed or deemed removed from a Regulation S Security in accordance with the procedures set forth in Section 1(d) hereof, and each such Security shall thereafter be held as an unrestricted Security. As used herein, “Person” means any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

The provisions of the “Operating Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream Banking” and “Customer Handbook” of Clearstream will be applicable to transfers of beneficial interests in the Regulation S Temporary Global Securities and the Regulation S Permanent Global Securities that are held by Agent Members (as defined in Section 1(e)) through Euroclear or Clearstream.
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(iii)Except as otherwise provided in this Agreement, upon resale of the Securities to purchasers who are institutional “accredited investors” as described in Rule 501(a)(1), (2), (3) or (7) under the Act and who are not QIBs shall be issued in the form of fully registered, definitive, physical certificates, substantially in the form set forth herein and on Exhibit A, with such applicable legends as are provided for on Exhibit A, and in minimum denominations of $200,000 and in integral multiples of $1,000 in excess of $200,000 (such securities are herein referred to as “Restricted Definitive Securities”). Unless the Issuer determines otherwise in accordance with applicable law, the legend setting forth transfer restrictions shall be removed or deemed removed from a Restricted Definitive Security in accordance with the procedures set forth in Section 1(d) after such time as the applicable Holding Period shall have terminated, and each such Security shall thereafter be held as an unrestricted Security. As used herein, the term “Holding Period,” with respect to Restricted Definitive Securities, means the period referred to in Rule 144(d) or any successor provision thereto and as may be amended or revised from time to time, beginning from the later of (i) the original issue date of such Securities or (ii) the last date on which the Issuer or any affiliate of the Issuer was the beneficial owner of such Securities (or any predecessor thereof).

(c)Temporary Securities Until definitive Securities are prepared, the Issuer may execute, and there shall be authenticated and delivered in accordance with the provisions of Section 3 hereof (in lieu of definitive printed Securities), temporary Securities. Such temporary Securities may be in registered global form. Such temporary Securities shall be subject to the same limitations and conditions and entitled to the same rights and benefits as definitive Securities, except as provided herein or therein. Temporary Securities shall be exchangeable for definitive Securities, when such definitive Securities are available for delivery; and upon the surrender for exchange of such temporary Securities, the Issuer shall execute and there shall be authenticated and delivered, in accordance with the provisions of Sections 6 and 7 hereof, in exchange for such temporary Securities, a like aggregate principal amount of definitive Securities of like tenor. The Issuer shall pay all charges, including (without limitation) stamp  and other taxes and governmental charges, incident to any exchange of temporary Securities for definitive Securities. All temporary Securities shall be identified as such and shall describe the right of the holder thereof to effect an exchange for definitive Securities and the manner in which such an exchange may be effected.
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(d)Legends Securities shall be stamped or otherwise be imprinted with the legends set forth on the face of the text of the Securities attached as Exhibit A, including any legend provided for pursuant to Section 1(e) hereof. The legends so provided on the face of the text of the Securities may be removed from any Security, upon written order signed in the name of the Issuer by the Authorized Officers and delivered to the Fiscal Agent (“Order”), (i) one year from the later of issuance of the Security or the date such Security (or any predecessor) was last acquired from an “affiliate” of the Issuer within the meaning of Rule 144 (“Rule 144”) under the Act or (ii) in connection with a sale made pursuant to the volume (and other restrictions) of Rule 144 following one year from such time, provided that, if the legend is removed and the Security is subsequently held by such an affiliate of the Issuer, the legend shall be reinstated. Any  legends provided pursuant to Section 1(e) hereof may be removed in the event the applicable Global Securities cease to be Global Securities in accordance with Section 5 hereof.

(e)Book-Entry Provisions Subject to the other provisions of this Section 1, the Securities may be issued initially in the form of one or more registered global Securities (“Global Securities”) deposited with or on behalf of a depository located in the United States, which initially shall be The Depository Trust Company together with its nominee Cede & Co. (the “U.S. Depository”), that (i) shall be registered in the name of the U.S. Depository for such Global Security or Securities or the nominee of such U.S. Depository, (ii) shall be delivered by the Fiscal Agent to such U.S. Depository or pursuant to such U.S. Depository’s instruction and
(iii)shall bear a legend substantially similar to the following:

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE FISCAL AGENCY AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE U.S. DEPOSITORY OR A NOMINEE OF THE U.S. DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE U.S. DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE FISCAL AGENCY AGREEMENT, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE U.S. DEPOSITORY TO A NOMINEE OF THE U.S. DEPOSITORY OR BY A NOMINEE OF THE U.S. DEPOSITORY TO THE U.S. DEPOSITORY OR ANOTHER NOMINEE OF THE U.S. DEPOSITORY OR BY THE U.S. DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR U.S. DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR U.S. DEPOSITORY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE U.S. DEPOSITORY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE IS ISSUED IN THE NAME OR NAMES AS DIRECTED IN WRITING BY THE U.S. DEPOSITORY, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED HOLDER HEREOF, THE U.S. DEPOSITORY, HAS AN INTEREST HEREIN.”
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Members of, or direct or indirect participants in, the U.S. Depository (“Agent Members”) shall have no rights under this Agreement with respect to any Global Security held on their behalf by the U.S. Depository or under the Global Security, and such U.S. Depository may be treated by the Issuer, the Fiscal Agent, and any agent of the Issuer or the Fiscal Agent as the owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Fiscal Agent, or any agent of the Issuer or the Fiscal Agent from giving effect to any written certification, proxy or other authorization furnished by the U.S. Depository or impair, as between the U.S. Depository and its Agent Members, the operation of customary practices governing the exercise of the rights of a holder of any Security.

So long as the U.S. Depository or its nominee is the registered holder of the Securities, the U.S. Depository or such nominee will for all purposes of the Securities and this Agreement be considered the sole owner or holder of such Securities. Until such time as definitive Securities may be issued, beneficial owners of Securities will not be entitled to have Securities registered in their names, will not receive or be entitled to receive physical delivery of Securities in definitive form, and will not be considered the owners or holders thereof under this Agreement for any purpose.

The Issuer initially appoints the Fiscal Agent to serve as custodian for the Global Securities.

This Section 1(e) shall apply only to Global Securities deposited with or on behalf of the U.S. Depository.

2.Fiscal Agent; Other Agents The Issuer hereby appoints The Bank of New York Mellon Trust Company, N.A., acting through its corporate trust office in Chicago, Illinois (the “Corporate Trust Office”), as fiscal agent of the Issuer in respect of the Securities, upon the terms and subject to the conditions herein set forth, and The Bank of New York Mellon Trust Company, N.A., hereby accepts such appointment. The Bank of New York Mellon Trust Company, N.A., and any successor or successors as such fiscal agent qualified and appointed in accordance with Section 10 hereof, are herein called the “Fiscal Agent.” The Fiscal Agent shall have the powers and authority granted to and conferred upon it in the Securities and hereby and such further powers and authority to act on behalf of the Issuer as may be mutually agreed upon by the Issuer and the Fiscal Agent. All of the terms and provisions with respect to such powers and authority contained in the Securities are subject to and governed by the terms and provisions hereof.

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EXHIBIT 4.1

The Issuer may appoint one or more agents (a “Paying Agent” or “Paying Agents”) for the payment (subject to applicable laws and regulations) of the principal of and interest on the Securities, and one or more agents (a “Transfer Agent” or “Transfer Agents”) for the transfer and exchange of securities, at such place or places as the Issuer may determine; provided, however, the Issuer shall at all times maintain a Paying Agent or agent thereof and Transfer Agent or agent thereof in the Borough of Manhattan, The City of New York (which Paying Agent and Transfer Agent may be the Fiscal Agent or any of its affiliates). The Issuer initially appoints the Fiscal Agent, acting through its offices in the Borough of Manhattan, The City of New York, as Paying Agent and Transfer Agent. The Issuer shall promptly notify the Fiscal Agent of the name and address of each Paying Agent and Transfer Agent appointed, and will notify the Fiscal Agent of the resignation or termination of any Paying Agent or Transfer Agent. Subject to the provisions of Section 10(c) hereof, the Issuer may vary or terminate the appointment of any such Paying Agent or Transfer Agent at any time and from time to time upon giving not less than 90 days’ notice to such Paying Agent or Transfer Agent, as the case may be, and to the Fiscal Agent.

The Issuer shall cause notice of any resignation, termination or appointment of any Paying Agent or Transfer Agent or of the Fiscal Agent and of any change in the office through which any such Agent will act to be given to registered holders of the Securities.

3.Authentication The Fiscal Agent is authorized, upon receipt of Securities duly executed on behalf of the Issuer for the purposes of the original issuance of the Securities, (i) to authenticate said Securities in an aggregate principal amount of $550,000,000 and to deliver said Securities in accordance with an Order or Orders and thereafter to authenticate such additional Securities for which it has received subsequent Orders and (ii) thereafter to authenticate and deliver said Securities in accordance with the provisions hereinafter set forth.

The Fiscal Agent may, with the consent of the Issuer, appoint by an instrument or instruments in writing one or more agents (which may include itself) for the authentication of Securities and, with such consent, vary or terminate any such appointment upon written notice and approve any change in the office through which any authenticating agent acts. The Issuer  (by written notice to the Fiscal Agent and the authenticating agent whose appointment is to be terminated) may also terminate any such appointment at any time. The Fiscal Agent hereby agrees to acknowledge written acceptances from the entities concerned (in form and substance satisfactory to the Issuer) of such appointments. In its acceptance of such appointment, each  such authenticating agent shall agree to act as an authenticating agent pursuant to the terms and conditions of this Agreement.

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EXHIBIT 4.1

4.Payment and Cancellation.

(a)Payment Subject to the following provisions, the Issuer shall provide to the Fiscal Agent in funds available on or prior to each date on which a payment of principal of or any interest on the Securities shall become due, as set forth in the text of the Securities, such amount, in such coin or currency, as is necessary to make such payment, and the Issuer hereby authorizes and directs the Fiscal Agent from funds so provided to it to make or cause to be made payment of the principal of and interest on, as the case may be, the Securities set forth herein and in the text of the Securities. The Fiscal Agent shall arrange directly with any Paying Agent who may have been appointed pursuant to the provisions of Section 2 hereof for the payment from funds so paid by the Issuer of the principal of and interest on the Securities as set forth herein  and in the text of the Securities. Notwithstanding the foregoing, the Issuer may provide directly to a Paying Agent funds for the payment of the principal thereof and premium and interest, if any, payable thereon under an agreement with respect to such funds containing substantially the same terms and conditions set forth in this Section 4(a) and in Section 9(b) hereof; and the Fiscal Agent shall have no responsibility with respect to any funds so provided by the Issuer to any such Paying Agent.
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EXHIBIT 4.1

Any interest on the Securities shall be paid, unless otherwise provided in the text of the Securities, to the Persons in whose names such Securities are registered on the register maintained pursuant to Section 7 hereof at the close of business on the record dates designated in the text of the Securities (the “registered holders”). Payments of principal of Securities shall be payable against surrender thereof at the Corporate Trust Office or office of an agent of the Fiscal Agent and at the offices of such other Paying Agents as shall have been appointed pursuant to Section 2 hereof. Payments of principal shall be made against surrender of Securities, and payments of interest on Securities shall be made, in accordance with the foregoing and subject to applicable laws and regulations, by check mailed on or before the due date for such payment to the Person entitled thereto at such Person’s address appearing on the register of the Securities maintained pursuant to Section 7 hereof, or, in the case of payments of principal, to such other address as the registered holder shall provide in writing at the time of such surrender; provided, however, that such payments may be made, in the case of a registered holder of greater than $1,000,000 aggregate principal amount of Securities, by wire transfer to an account maintained by the payee with a bank if such registered holder so elects by giving notice to the Fiscal Agent, not less than 15 days (or such fewer days as the Fiscal Agent may accept at its discretion) prior  to the date of the payments to be obtained, of such election and of the account to which payment is to be made.

(b)Cancellation All Securities delivered to the Fiscal Agent (or any other Agent appointed pursuant to Section 2 hereof) for payment, registration of transfer or exchange as herein or in the Securities provided shall be forwarded to the Fiscal Agent by the Agent to which they are delivered. All such Securities shall be canceled and disposed of by the Fiscal Agent or such other Person as may be jointly designated by the Issuer and the Fiscal Agent, which shall thereupon furnish certificates of such disposal to the Issuer upon the Issuer’s request.

5.Transfer and Exchange of Securities Transfers of Global Securities as Such Except as otherwise expressly set forth in this Agreement or any amendment hereto, a Global Security representing all or a portion of the Securities may not be transferred in global form, except as a whole (i) by the U.S. Depository to a nominee of such U.S. Depository, (ii) by a nominee of such U.S. Depository to such U.S. Depository or another nominee of such U.S. Depository or (iii) by such U.S. Depository or any such nominee to a successor U.S. Depository or a nominee of such successor U.S. Depository.
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(b)Exchanges of Global Securities for Definitive Securities A Global Security shall be exchangeable, in whole but not in part, for definitive Securities if (a) the U.S. Depository notifies the Issuer that it is unwilling or unable to continue to hold book-entry interests in such Global Security or the U.S. Depository at any time ceases to be a “clearing agency” registered as such under the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, in either case, a successor is not appointed by the Issuer within 120 days, (b) while a Global Security is a restricted Security the book-entry interests in such Global Security cease to be eligible for the U.S. Depository’s services because the Securities are neither (i) rated in one of the top four categories by a nationally recognized statistical rating organization nor (ii) included within a Self-Regulatory Organization system approved by the U.S. Securities and Exchange Commission (the “Commission”) for the reporting of quotation and trade information of securities eligible for transfer pursuant to Rule 144A, such as the PORTAL system, (c) the U.S. Depository for Securities notifies the Issuer that it is unwilling or unable to continue as U.S. Depository with respect to such Global Security and no successor is appointed within 120 days or (d) the Issuer in its sole discretion executes and delivers to the Fiscal Agent an Officers’ Certificate providing that such Global Security shall be so exchangeable; provided, however, that in no event shall the Regulation S Temporary Global Securities be exchanged by the Issuer for definitive Securities prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the Transfer Agent of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Act. Securities so issued in exchange for any such Global Security shall have the same interest rate, if any, and maturity and have the same terms as such Global Security, in authorized denominations and in the aggregate having the same principal amount as such Global Security and registered in such names as the U.S. Depository for such Global Security shall direct. Upon such exchange, the surrendered Global Security shall be cancelled by the Fiscal Agent.
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EXHIBIT 4.1

A Global Security shall be exchangeable, in whole or in part, for definitive registered Securities if there shall have occurred and be continuing an event of default (as set forth in paragraph 7 of the Securities) and the registered holder, in such circumstances, shall  have requested in writing that all or a part of the Global Security be exchanged for one or more definitive Securities (an “Optional Definitive Security Request”), provided, however, that in no event shall the Regulation S Temporary Global Securities be exchanged by the Issuer for definitive registered Securities prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the Transfer Agent of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Act. Upon any such surrender, (i) the Issuer shall execute and the Fiscal Agent shall authenticate and deliver without charge to each Person specified by the U.S. Depository, in exchange for such Person’s beneficial interest in the Global Security, a new Security or Securities in definitive registered form having the same interest rate, if any, and maturity and having the same terms as such Global Security, in any authorized denomination requested by such Person and in an aggregate principal amount equal to such Person’s beneficial interest in the Global Security, and (ii) if the Global Security is being exchanged (x) as a whole, then the surrendered Global Security shall be cancelled by the Fiscal Agent, or (y) in part, then the principal amount of the surrendered Global Security shall be reduced by an endorsement on Schedule A thereto in the appropriate amount.

Unless otherwise provided by the Issuer, definitive Securities issued in exchange for a Global Security pursuant to this Section 5(b) shall be issued only in registered form and shall be registered in such names and in such authorized denominations as the U.S. Depository for such Global Security, pursuant to instructions of its Agent Members or otherwise, shall instruct the Fiscal Agent. The Fiscal Agent shall deliver such Securities to the Persons in whose names such Securities are so registered.

(c)Beneficial Interests.Subject to the provisions herein, beneficial interests in a Global Security may be transferred in any manner consistent with the Applicable Procedures.

(d)Special Provisions Regarding Transfer of Beneficial Interests in a Regulation S Global Security The transfer of beneficial interests in a Regulation S Global Security shall be effected in a manner not inconsistent with the following provisions:
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EXHIBIT 4.1

(i)Transfer Through a Rule 144A Global Security. If the holder of a beneficial interest in a Regulation S Global Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in a Rule 144A Global Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(d)(i), provided, however, that prior to the expiration of the Distribution Compliance Period, transfers of beneficial interests in the Regulation S Temporary Global Securities may not be made to a U.S. person (as defined under Regulation S) or for the account or benefit of a U.S. person (other than an initial purchaser). Upon receipt by the U.S. Depository of the instructions, order and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from the U.S. Depository at the Corporate Trust Office of (1) written instructions given in accordance with the Applicable Procedures from an Agent Member directing the U.S. Depository to cause to be credited to a specified Agent Member’s account a beneficial interest in the Rule 144A Global Security equal to that of the beneficial interest in the Regulation S Global Security to be so transferred, (2) a written order given in accordance with the Applicable Procedures containing information regarding the account of the Agent Member to be credited with, and the account of the Agent Member held for Euroclear or Clearstream to be debited for, such beneficial interest, and (3) a certificate substantially in the form set forth in or contemplated by Exhibit B given by the transferor of such beneficial interest, the Transfer Agent, shall (A) reduce the principal amount of the Regulation S Global Security, and increase the principal amount of the Rule 144A Global Security, in each case by an amount equal to the principal amount of the beneficial interest in the Regulation S Global Security to be so transferred, as evidenced by appropriate endorsements on Schedule A of the respective Global Securities, and (B) instruct the U.S. Depository, (x) to make corresponding reductions and increases in the amounts represented by the respective Global Securities and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Security having a principal amount equal to the amount by which the principal amount of the Regulation S Global Security was reduced upon such transfer.

Delivery of a beneficial interest in the Regulation S Global Security may not be taken in the form of a beneficial interest in the Rule 144A Global Security if immediately prior to the contemplated transfer no Rule 144A Global Security is then Outstanding (as defined in Section 12(c) hereof).
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EXHIBIT 4.1

(ii)Interests in Regulation S Global Security Initially to be Held Through Euroclear or Clearstream. Beneficial interests in a Regulation S Temporary Global Security may be held only through Agent Members acting for and on behalf of Euroclear or Clearstream.

(iii)Transfer Through Restricted Definitive Security. If the holder of a beneficial interest in a Regulation S Global Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a Restricted Definitive Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(d)(iii), provided, however, that in no event shall the Regulation S Temporary Global Securities be exchanged by the Issuer for Restricted Definitive Securities prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the Transfer Agent of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Act. Upon receipt by the U.S. Depository of the instructions and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from the U.S. Depository at the Corporate Trust Office of (1) written instructions given in accordance with the Applicable Procedures from an Agent Member directing the U.S. Depository to cause to be issued a Restricted Definitive Security to such Person in a principal amount equal to that of the beneficial interest in the Global Security to be so transferred and (2) a certificate substantially in the form set forth in or contemplated by Exhibit C given by the transferor of such beneficial interest and, if the transferee is an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act), a certificate substantially in the form set forth in or contemplated by Exhibit I given by such transferee, the Transfer Agent shall (A) reduce the principal amount of the Regulation S Global Security by an amount equal to the principal amount of the beneficial interest in the Regulation S Global Security to be so transferred, as evidenced by appropriate endorsement on Schedule A of the Regulation S Global Security and (B) cause to be issued a Restricted Definitive Security to such Person in a principal amount equal to the amount by which the principal amount of the Regulation S Global Security was reduced upon such transfer.

14

EXHIBIT 4.1

(iv)Transfer Through an Unrestricted Global Security. If the holder of a beneficial interest in a Regulation S Global Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in an unrestricted Global Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with  this  Section 5(d)(iv). Upon receipt by the U.S. Depository of the instructions, order and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from   the   U.S.   Depository  at   the   Corporate   Trust   Office of (1) written instructions given in accordance with the Applicable Procedures from an Agent Member directing the U.S. Depository to cause to be credited to a specified Agent Member’s account a beneficial interest in the unrestricted Global Security equal to that of the beneficial interest in the Regulation S Global Security to be so transferred, (2) a written order given in accordance with the Applicable Procedures containing information regarding the account of the Agent Member, and the Euroclear or Clearstream account for which such Agent Member’s account is held, to be credited with, and the account of the Agent Members to be debited for, such beneficial interest, and (3) a certificate substantially in the form set forth in or contemplated by Exhibit D given by the transferor  of  such  beneficial  interest,   the  Transfer  Agent  shall (A) reduce the principal amount of the Regulation S Global Security, and increase the principal amount of the unrestricted Global Security, in each case by an amount equal to the principal amount of the beneficial interest in the Regulation S Global Security to be so transferred, as evidenced by appropriate endorsements on Schedule A of the respective Global Securities and (B) instruct the U.S. Depository, (x) to make corresponding reductions and increases to the transferor’s beneficial interests in the respective Global Securities and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the unrestricted Global Security having a principal amount equal to the amount by which the principal amount of the Regulation S Global Security was reduced upon such transfer.
15

EXHIBIT 4.1

(v)Beneficial Interests in Regulation S Temporary Global Securities to Definitive Securities. Notwithstanding the foregoing, a beneficial interest in a Regulation S Temporary Global Security may not be exchanged for a definitive Security or transferred to a Person who takes delivery thereof in the form of a definitive Security prior to (A) the expiration of the Distribution Compliance Period and (B) the receipt by the Registrar of any certificates required pursuant to Rule 903(b)(3)(ii)(B) under the Act, except in the case of a transfer pursuant to an exemption from the registration requirements of the Act other than Rule 903 or Rule 904.
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EXHIBIT 4.1

(e)Special Provisions Regarding Transfer of Beneficial Interests in a Rule 144A Global Security The transfer of beneficial interests in a Rule 144A Global Security shall be effected in a manner not inconsistent with the following provisions:

(i)Transfer Through a Regulation S Global Security.  If the holder of a beneficial interest in a Rule 144A Global Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in a Regulation S Global Security, such transfer may be effected, subject to the Applicable   Procedures,   only   in   accordance   with   this Section 5(e)(i). Upon receipt by the U.S. Depository of the instructions, order and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from   the   U.S.   Depository  at   the   Corporate   Trust   Office of
(1)written instructions given in accordance with the Applicable Procedures from an Agent Member directing the U.S. Depository to cause to be credited to a specified Agent Member’s account a beneficial interest in the Regulation S Global Security equal to that of the beneficial interest in the Rule 144A Global Security to be so transferred, (2) a written order given in accordance with the Applicable Procedures containing information regarding the account of the Agent Members held for Euroclear to be credited with, and the account of the Agent Members to be debited for, such beneficial interest, and (3) a certificate substantially in the form set forth in or contemplated by Exhibit E given by the transferor of such beneficial interest, the Transfer Agent shall (A) reduce the principal amount of the Rule 144A Global Security, and increase the principal amount of the Regulation S Global Security, in each case by an amount equal to the principal amount of the beneficial interest in the Rule 144A Global Security to be so transferred, as evidenced by appropriate endorsements on Schedule A of the respective Global Securities and (B) instruct the U.S. Depository, (x) to make corresponding reductions and increases to the amounts represented by the respective Global Securities and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Regulation S Global Security having a principal amount equal to the amount by which the principal amount of the Rule 144A Global Security was reduced upon such transfer.

Delivery of a beneficial interest in the Rule 144A Global Security may not be taken in the form of a beneficial interest in the Regulation S Global Security if immediately prior to the contemplated transfer no Regulation S Global Security is then Outstanding.
17

EXHIBIT 4.1

(ii)Transfer Through Restricted Definitive Security. If the holder of a beneficial interest in a Rule 144A Global Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a Restricted Definitive Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(e)(ii). Upon receipt by the U.S. Depository of the instructions and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from the U.S. Depository at the Corporate Trust Office of (1) written instructions given in accordance with the Applicable Procedures from an Agent Member directing the U.S. Depository to cause to be issued a Restricted Definitive Security to such Person in a principal amount equal to that of the beneficial interest in the Rule 144A Global Security to be so transferred and (2) a certificate substantially in the form set forth in or contemplated by Exhibit F given by the transferor of such beneficial interest and, if the transferee is an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act), a certificate substantially in the form set forth in or contemplated by Exhibit I given by such transferee, the Transfer Agent shall (A) reduce the principal amount of the Rule 144A Global Security by an amount equal to the principal amount of the beneficial interest in the Rule 144A Global Security to be so transferred, as evidenced by appropriate endorsement on Schedule A of the Rule 144A Global Security and cause to be issued a Restricted Definitive Security to such Person in a principal amount equal to the amount by which the principal amount of the Rule 144A Global Security was reduced upon such transfer and (B) instruct the U.S. Depository to make a corresponding reduction to the transferor’s beneficial interest in the Rule 144A Global Security.
18

EXHIBIT 4.1

(iii)Transfer Through an Unrestricted Global Security. If the holder of a beneficial interest in a Rule 144A Global Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in an unrestricted Global Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with  this  Section 5(e)(iii). Upon receipt by the U.S. Depository of the instructions, order and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from the U.S. Depository at the Corporate Trust Office of (1) written instructions given in accordance with the Applicable Procedures from an Agent Member directing the U.S. Depository to cause to be credited to a specified Agent Member’s account a beneficial interest in the unrestricted Global Security equal to that of the beneficial interest in the Rule 144A Global Security to be so transferred, (2) a written order given in accordance with the Applicable Procedures containing information regarding the account of the Agent Members to be credited with, and the account of the Agent Members to be debited for, such beneficial interest, and (3) a certificate substantially in the form set forth in or contemplated by Exhibit G given by the transferor of such beneficial interest, the Transfer Agent shall (A) reduce the principal amount of the Rule 144A Global Security, and increase the principal amount of the unrestricted Global Security, in each case by an amount equal to the principal amount of the beneficial interest in the Rule 144A Global Security to be so transferred, as evidenced by appropriate endorsements on Schedule A of the respective Global Securities and (B) instruct the U.S. Depository, (x) to make corresponding reductions and increases to the transferor’s beneficial interests in the respective Global Securities and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the unrestricted Global Security having a principal amount equal to the amount by which the principal amount of the Rule 144A Global Security was reduced upon such transfer.
19

EXHIBIT 4.1

(f)Special Provisions Regarding Transfer of Restricted Definitive Securities Unless expressly provided otherwise in this Agreement, whenever any Restricted Definitive Security is presented or surrendered for registration of transfer, such Restricted Definitive Security must be accompanied by a certificate in substantially the form set forth in or contemplated by Exhibit H (which may be attached to or set forth in the Restricted Definitive Security), appropriately completed, dated the date of such surrender and signed by the holder of such Restricted Definitive Security, as to compliance with such restrictions on transfer, unless the Issuer shall have notified the Fiscal Agent that there is an effective registration statement under the Act with respect to such Restricted Definitive Security. The Transfer Agent shall not be required to accept for such registration of transfer or exchange any Restricted Definitive Security not so accompanied by a properly completed certificate. The transfer of Restricted Definitive Securities shall be effected in a manner not inconsistent with the following provisions:

(i)Transfer Through Regulation S Global Security. If the holder of a Restricted Definitive Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in a Regulation S Global Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(f)(i). Upon receipt by the Transfer Agent at the Corporate Trust Office of (1) written instructions from the transferor directing it to cause the U.S. Depository to cause to be credited to such Person a beneficial interest in the Regulation S Global Security in a principal amount equal  to  that  of  the  Restricted  Definitive  Security  to  be  so transferred and (2) a certificate substantially in the form set forth in or contemplated by Exhibit H given by the transferor of such Restricted Definitive Security, the Transfer Agent shall (A) increase the principal amount of the Regulation S Global Security by an amount equal to the principal amount of the beneficial interest in the Regulation S Global Security to be received by such Person, as evidenced by appropriate endorsement on Schedule A of the Regulation S Global Security, and cancel such Restricted Definitive Security, and (B) instruct the U.S. Depository, (x) to make corresponding increases in the amount represented by the Regulation S Global Security and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Regulation S Global Security having a principal amount equal to the principal amount of the Restricted Definitive Security that was cancelled.
20

EXHIBIT 4.1

(ii)Transfer Through Rule 144A Global Security. If the holder of a Restricted Definitive Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in the Rule 144A Global Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(f)(ii). Upon receipt by the Transfer Agent at the Corporate Trust Office of (1) written instructions from the transferor directing it to cause the U.S. Depository to cause to be credited to such Person a beneficial interest in the Rule 144A Global Security in a principal amount equal to that of the Restricted Definitive Security to be so transferred and (2) a certificate substantially in the form set forth in or contemplated by Exhibit H given by the transferor of such Restricted Definitive Security, the Transfer Agent shall (A) increase the principal amount of the Rule 144A Global Security by an amount equal to the principal amount of the beneficial interest in the Rule 144A Global Security to be received by such Person, as evidenced by appropriate endorsement on Schedule A of the Rule 144A Global Security, and cancel such Restricted Definitive Security, and (B) instruct the U.S. Depository, (x) to make corresponding increases in the amount represented by the Rule 144A Global Security and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Security having a principal amount equal to the principal amount of the Restricted Definitive Security that was cancelled.

21

EXHIBIT 4.1

(iii)Transfer Through Unrestricted Global Security. If the holder of a Restricted Definitive Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of a beneficial interest in the unrestricted Global Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(f)(iii). Upon receipt by the Transfer Agent at the Corporate Trust Office of (1) written instructions from the transferor directing it to cause the U.S. Depository to cause to be credited to such Person a beneficial interest in the unrestricted Global Security in a principal amount equal to that of the Restricted Definitive Security to be so transferred and (2) a certificate substantially in the form set forth in or contemplated by Exhibit H given by the transferor of such Restricted Definitive Security, the Transfer Agent shall (A) increase the principal amount of the unrestricted Global Security by an amount equal to the principal amount of the beneficial interest in the unrestricted Global Security to be  received by such Person, as evidenced by appropriate endorsement on Schedule A of the unrestricted Global Security, and cancel such Definitive Security, and (B) instruct the U.S. Depository, (x) to make corresponding increases in the amount represented by the Rule 144A Global Security and (y) to cause to be credited to the account of the Person specified in such instructions a beneficial interest in the unrestricted Global Security having a principal amount equal to the principal amount of the Restricted Definitive Security that was cancelled.

(iv)Transfer Through Restricted Definitive Security. If the holder of a Restricted Definitive Security wishes at any time to transfer such interest to a Person who wishes to take delivery thereof in the form of another Restricted Definitive Security, such transfer may be effected, subject to the Applicable Procedures, only in accordance with this Section 5(f)(iv). Upon receipt by the U.S. Depository of the instructions and certificate set forth below, the U.S. Depository shall promptly forward the same to the Transfer Agent at the Corporate Trust Office. Upon receipt by the Transfer Agent from the U.S. Depository at the Corporate Trust Office of a certificate substantially in the form set forth in or contemplated by Exhibit H given by the transferor of such Restricted Definitive Security and, if the transferee is an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act), a certificate substantially in the form set forth in or contemplated by Exhibit I given by such transferee, the Transfer Agent shall register the transfer of such Restricted Definitive Security.
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EXHIBIT 4.1

6.Mutilated, Destroyed, Stolen or Lost Securities The Fiscal Agent, or its agent duly authorized by the Fiscal Agent, is hereby authorized from time to time in accordance with the provisions of the Securities, Section l(e), Section 5 and of this Section to authenticate and deliver:

(i)Securities in exchange for or in lieu of Securities of like tenor and of like form which become mutilated, destroyed, stolen or lost; and 

(1)registered Securities of authorized denominations in exchange for a like aggregate principal amount of Securities of like tenor and of like form.

The Securities shall be dated the date of their authentication by the Fiscal Agent. Each Security authenticated and delivered upon any transfer or exchange for or in lieu of the whole or any part of any Security shall carry all the rights if any, to interest accrued and unpaid and to accrue which were carried by the whole or such part of such Security.

7.Register; Record Date for Certain Actions The Fiscal Agent, as agent of the Issuer, shall maintain at its Corporate Trust Office in Chicago, Illinois and at its agent’s office in the Borough of Manhattan, The City of New York, a register for the Securities for the registration and registration of transfers of the Securities. Upon presentation for the purpose at the  said office of the Fiscal Agent or its agent of any Security, accompanied by a written instrument of transfer in the form approved by the Issuer and the Fiscal Agent (it being understood that, until notice to the contrary is given to holders of Securities, the Issuer and the Fiscal Agent shall each be deemed to have approved the form of instrument of transfer, if any, printed on any definitive Security), executed by the registered holder, in person or by such registered holder’s attorney thereunto duly authorized in writing, such Security shall be transferred upon the register for the Securities, and a new Security of like tenor shall be authenticated and issued in the name of the transferee. Transfers and exchanges of Securities shall be subject to Section 1(e) and Section 5 hereof, to such restrictions as shall be set forth in the text of the Securities and to such reasonable regulations as may be prescribed by the Issuer and the Fiscal Agent. Successive registrations and registrations of transfers as aforesaid may be made from time to time as desired and each such registration shall be noted on the Security register. No service charge shall be made for any registration, registration of transfer or exchange of Securities, but, except as otherwise provided herein with respect to the exchange of temporary Securities for definitive Securities, the Fiscal Agent (and any Transfer Agent or authenticating agent appointed pursuant to Section 2 or 3 hereof, respectively) may require payment of a sum sufficient to cover any stamp or other tax or governmental charge in connection therewith and any other amounts required to be paid by the provisions of the Securities.

Any Transfer Agent appointed pursuant to Section 2 hereof shall provide to the Fiscal Agent such information as the Fiscal Agent may reasonably require in connection with the delivery by such Transfer Agent of Securities in exchange for other Securities.

Neither the Fiscal Agent nor any Transfer Agent shall be required to make registrations of transfer or exchange of Securities except as set forth in this Agreement.
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EXHIBIT 4.1

Upon receipt by the Fiscal Agent of any written demand, request or notice with respect to any matter on which the holders of Securities are entitled to act under this Agreement, a record date shall be established for determining registered holders of Outstanding Securities entitled to join in such demand, request or notice, which record date shall be at the close of business on the day the Fiscal Agent receives such demand, request or notice. The holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to join in such demand, request or notice, whether or not such holders remain holders after such record date; provided, however, unless the holders of the requisite principal amount of the Outstanding Securities shall have joined in such demand, request or notice prior to the day which is 90 days after such record date, such demand, request or notice shall automatically and without further action by any holder be cancelled and of no further effect. Nothing in this paragraph shall prevent a holder, or a proxy of a holder, from giving, (i) after expiration of such 90-day period, a new demand, request or notice identical to a demand, request or notice which has been cancelled pursuant to the proviso in the preceding sentence or (ii) during any such 90-day period, a new demand, request or notice contrary to or different from such demand, request or notice, in either of which events a new record date shall be established pursuant to the provisions of this paragraph.
The Issuer may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to consent to or approve any action or waive any term, provision or condition of any covenant of this Agreement. If a record date is fixed, the holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to consent to or approve any such action or waive any such term, provision, condition or covenant, whether or not such holders remain holders after such record date; provided, however, that unless such consent, waiver or approval is obtained from the requisite principal amount of holders of Outstanding Securities, or their duly designated proxies, prior to the date which is ninety (90) days after such record date, any such consent, waiver or approval previously given shall automatically and without further action by any holder be cancelled and of no further effect.
24

EXHIBIT 4.1

8.Delivery of Certain Information Non-Reporting Issuer Subject to Section 8(b), as long as the Issuer is not subject to Section 13 or 15(d) of the Exchange Act, at any time, upon the request of a holder of a Security who is a QIB or, a prospective investor who is a QIB designated by such holder, the Issuer, or the Fiscal Agent upon request by and at the expense of the Issuer, will promptly furnish or cause to be furnished “Rule 144A Information” (as defined below) with respect to the Issuer to such holder or to a prospective purchaser of such Security designated by such holder in order to permit compliance by such holder with Rule 144A under the Act in connection with the resale of such Security by such holder. “Rule 144A Information” with respect to the Issuer shall be such information with respect to it as is specified pursuant to Rule 144A(d)(4)(i) under the Act (or any successor provision thereto) which, at the date of this Agreement, consists of (x) a very brief statement of the nature of the business, products and services of the Issuer, as the case may be, (which statement shall be as of a date within 12 months prior to the date of the intended resale) and (y) the most recent financial statements of the Issuer and its financial statements for the two fiscal years preceding the period covered in the most recent financial statements. Such financial statements of the Issuer shall include its balance sheet (as of a date less than 16 months before the date of the intended resale) and its profit and loss and retained earnings statements (for the twelve-month period preceding the date of such balance sheet and, if the balance sheet is not as of a date less than six months before the date of the intended resale, the most recent profit and loss and retained earnings statements shall be for the period from the date of such balance sheet to a date less than six months before the date of the intended resale) and shall be audited to the extent reasonably available.

(b)Information After One Year Neither the Issuer nor the Fiscal Agent shall be required to furnish Rule 144A Information with respect to the Issuer as contemplated by Section 8(a) hereof, (x) to the holder or a prospective purchaser of a Security in connection with any request made on or after the date which is one year from the later of (i) the date such Security (or any predecessor Security) was acquired from the Issuer or (ii) the date such Security (or any predecessor Security) was last acquired from an “affiliate” of the Issuer within the meaning of Rule 144 under the Act or (y) at any time to a prospective purchaser located outside the United States who is not a U.S. person within the meaning of Regulation S under the Act.

25

EXHIBIT 4.1

(c)Periodic Reports So long as any Securities are Outstanding, the Issuer, or the Fiscal Agent upon request by and at the expense of the Issuer, will furnish or cause to be furnished to holders of Securities and to the Fiscal Agent, (i) at any time when the Issuer is subject to Section 13 or 15(d) of the Exchange Act, copies of its annual and quarterly reports to stockholders and of each report or definitive proxy statement filed with the Commission under the Exchange Act, such reports or statements to be so furnished within 15 days after the due date for filing with the Commission, and (ii) at any time when the Issuer is not subject to Section 13 or 15(d) of the Exchange Act, (A) its annual financial statements prepared in accordance with generally accepted accounting principles applied consistently (except as otherwise noted therein) with those of the prior years (together with notes thereto and a report thereon by an independent accounting firm of established national reputation), such report to be so furnished as soon as reasonably available and in any event within 120 days after the end of the fiscal year covered thereby, (B) its unaudited comparative financial statements for each of the first three fiscal quarters and the corresponding quarter of the prior year prepared in accordance with generally accepted accounting principles applied consistently (except as otherwise noted therein) with those of the most recent annual financial statements (which unaudited statements and related notes may be condensed to the extent permitted by Form 10-Q under the Exchange Act or any successor form), such statements to be so furnished as soon as reasonably available and in any event within 60 days after the end of the fiscal quarter covered thereby, (C) any other interim reports or financial statements prepared generally for its nonaffiliated investors or lenders, such reports or statements to be so furnished concurrently with their distribution to such investors or lenders, and (D) at each time of delivery of the financial statements in (A), an Officers’ Certificate stating whether or not to the best knowledge of the signers thereof the Issuer is in default in the performance and observance of any of the terms, provisions and conditions of the Securities or this Agreement and, if the Issuer shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge; provided that if the Issuer cannot reasonably furnish the financial statements specified in clause (i) or (ii) (A) or (B) above within the time periods specified, the Issuer shall have such additional period as required to finish such reports and statements so long as it is diligently pursuing the finishing of such reports and statements.

9.Conditions of Fiscal Agent’s Obligations The Fiscal Agent accepts its obligations herein set forth upon the terms and conditions hereof, including the following, to all of which the Issuer agrees and to all of which the rights of holders from time to time of Securities are subject:
26

EXHIBIT 4.1

(a)Compensation and Indemnity The Fiscal Agent shall be entitled to reasonable compensation as agreed with the Issuer for all services rendered by it, and the Issuer agrees promptly to pay such compensation and to reimburse the Fiscal Agent for the reasonable out-of-pocket expenses (including reasonable counsel fees and expenses) incurred by it or its agents in connection with its services hereunder. The Issuer also agrees to indemnify the Fiscal Agent for, and to hold it harmless against, any loss, liability or expense, including, without limitation, damages, claims, fines, suits, actions, demands, penalties, costs, out-of-pocket or incidental expenses, legal fees and expenses, and the allocated costs and expenses of in-house counsel, incurred without gross negligence or willful misconduct, arising out of or in connection with its acting as Fiscal Agent or in any other capacity hereunder, as well as the reasonable costs and expenses of defending against any claim of liability in the premises. The obligations of the Issuer under this Section 9(a) shall survive payment of all the Securities, the termination of this Agreement or the resignation or removal of the Fiscal Agent.

(b)Agency In acting under this Agreement and in connection with the Securities, the Fiscal Agent is acting solely as agent of the Issuer and does not assume any responsibility for the correctness of the recitals herein or in the Securities (except for the correctness of the statement in its certificate of authentication on the Securities) or any obligation or relationship of agency or trust, for or with any of the owners or holders of the Securities, except that all funds held by the Fiscal Agent for the payment of principal of, premium, if any, and any interest on the Securities shall be held in trust for such owners or holders, as the case may be, as set forth herein and in the Securities; provided, however, that monies held in respect of the Securities remaining unclaimed at the end of two years after any principal of, premium, if any, or any interest on the Securities shall have become due and payable (whether at maturity or otherwise) and monies sufficient therefor shall have been duly made available for payment shall, together with any interest made available for payment thereon, if any, be repaid to the Issuer upon an Order. Upon such repayment, the aforesaid trust with respect to the Securities shall terminate and all liability of the Fiscal Agent and Paying Agents with respect to such funds shall thereupon cease. In the absence of an Order from the Issuer to return unclaimed funds to the Issuer, the Fiscal Agent shall from time to time deliver all unclaimed funds to or as directed by applicable escheat authorities, as determined by the Fiscal Agent in its sole discretion, in accordance with the customary practices and procedures of the Fiscal Agent.

(c)Advice of Counsel The Fiscal Agent and any Paying Agent or Transfer Agent appointed by the Issuer pursuant to Section 2 hereof may consult with their respective counsel or other counsel satisfactory to them, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by them hereunder in good faith and without gross negligence and in accordance with such opinion.

(d)Reliance The Fiscal Agent and any Paying Agent or Transfer Agent appointed by the Issuer pursuant to Section 2 hereof each may conclusively rely upon and shall be protected and shall incur no liability for or in respect of any action taken or thing suffered by it in reliance upon any Security, notice, direction, consent, certificate, affidavit, statement, or other paper or document believed by it, in good faith and without gross negligence, to be genuine and to have been passed or signed by the proper party or parties.
27

EXHIBIT 4.1

(e)Interest in Securities, etc The Fiscal Agent, any authenticating agent, and any Paying Agent or Transfer Agent appointed by the Issuer pursuant to Section 2 hereof and their respective officers, directors and employees may become the owners of, or acquire any interest in, any Securities, with the same rights that they would have if they were not the Fiscal Agent, such authenticating agent, such other Paying Agent or Transfer Agent or such Person, and may engage or be interested in any financial or other transaction with the Issuer, and may act on, or as depository, trustee or agent for, any committee or body of holders of Securities or other obligations of the Issuer, as freely as if they were not the Fiscal Agent, such authenticating agent, such other Paying Agent or Transfer Agent or such Person. The provisions of this Section 9(e) shall extend to affiliates of the Fiscal Agent, such authenticating agent, any Paying Agent or any Transfer Agent.

(f)Certifications Whenever in the administration of this Agreement the Fiscal Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Fiscal Agent (unless other evidence be herein specifically prescribed) may, in the absence of willful misconduct or gross negligence on its part, request and conclusively rely upon a certificate signed by any Authorized Officer of the Issuer and delivered to the Fiscal Agent.

(g)No Implied Obligations The duties and obligations of the Fiscal Agent shall be determined solely by the express provisions of this Agreement, and the Fiscal Agent shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Fiscal Agent. In no event shall the Fiscal Agent be liable for any lost profits, lost savings or other special, exemplary, indirect, punitive, consequential or incidental damages.

(h)No Liability The Fiscal Agent shall not be liable for any interest on any funds held by the Fiscal Agent and shall never be required to use, advance or risk its own funds or otherwise incur financial liability in the performance of its duties hereunder. The Fiscal Agent shall not be liable for any action taken, suffered, or omitted to be taken by it, in the absence of its own gross negligence, and in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Agreement.

(i)No Inquiry The Fiscal Agent shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements of the Securities or other documents on the part of the Issuer or as to the existence of any event of default thereunder.

(j)Agents The Fiscal Agent may execute any of its trusts or powers or perform any duties under this Agreement either directly or by or through agents or attorneys, may in all cases pay (with reimbursement from the Issuer) such reasonable compensation as it deems proper to all such agents and attorneys reasonably employed or retained by it, and shall not be responsible for any misconduct or negligence of any agent or attorney appointed with due care by it.
28

EXHIBIT 4.1

(k)Directors, Officers The protections from liability provided to the Fiscal Agent hereunder, including the right to indemnification, shall extend to its directors, officers, employees and agents. The rights, privileges, protections, immunities and benefits given to the Fiscal Agent, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Fiscal Agent in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

10.Resignation and Appointment of Successor Fiscal Agent and Paying Agent The Issuer agrees, for the benefit of the holders from time to time of the Securities, that there shall at all times be a Fiscal Agent hereunder which shall be a bank or trust company organized and doing business under the laws of the United States of America, any state thereof or the District of Columbia, in good standing and having an established place of business or agency in the Borough of Manhattan, The City of New York, and authorized under such laws to exercise corporate trust powers until all the Securities authenticated and delivered hereunder (i) shall have been delivered to the Fiscal Agent for cancellation or (ii) become due and payable and monies sufficient to pay the principal of and any interest on the Securities shall have been made available for payment and either paid or returned to the Issuer as provided herein and in such Securities.

(b)Resignation The Fiscal Agent may at any time resign by giving written notice to the Issuer of such intention on its part, specifying the date on which its desired resignation shall become effective, provided that such date shall not be less than 30 days from the date on which such notice is given, unless the Issuer agrees to accept shorter notice. The Fiscal Agent hereunder may be removed at any time by the filing with it of an instrument in writing signed on behalf of the Issuer and specifying such removal and the date when it shall become effective. Notwithstanding the dates of effectiveness of resignation or removal, as the case may be, to be specified in accordance with the preceding sentences, such resignation or removal shall take effect only upon the appointment by the Issuer of a successor Fiscal Agent (which, to qualify as such, shall be a bank or trust company organized and doing business under the laws of the United States of America, any state thereof or the District of Columbia, in good standing and having and acting through an established place of business or agency in the Borough of Manhattan, The City of New York, authorized under such laws to exercise corporate trust powers and having a combined capital and surplus in excess of U.S. $100,000,000) and the acceptance of such appointment by such successor Fiscal Agent. Upon its resignation  or removal, the Fiscal Agent shall be entitled to payment by the Issuer pursuant to Section 9 hereof of compensation for services rendered and to reimbursement of reasonable out-of-pocket expenses incurred or any other amounts due hereunder.
29

EXHIBIT 4.1

(c)Successors In case at any time the Fiscal Agent or any Paying Agent in respect of the Securities (if such Paying Agent is the only Paying Agent located in a place where, by the terms of the Securities or this Agreement, the Issuer is required to maintain a Paying Agent) shall resign, or shall be removed, or shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or shall file a voluntary petition in bankruptcy or make an assignment for the benefit of its creditors or consent to the appointment of a receiver of all or any substantial part of its property, or shall admit in writing its inability to pay or meet its debts as they severally mature, or if a receiver of it or of all or any substantial part of its property shall be appointed, or if an order of any court shall be entered approving any petition filed by or against it under the provisions of the Federal Bankruptcy Act or under the provisions of any similar legislation, or if a receiver of it or its property shall be appointed, or if any public officer shall take charge or control of it or of its property or affairs, for the purpose or rehabilitation, conservation or liquidation, a successor Fiscal Agent or Paying Agent, as the case may be, qualified as aforesaid, shall be appointed by the Issuer by an instrument in writing, filed with the successor Fiscal Agent or Paying Agent, as the case may be, and the predecessor Fiscal Agent or Paying Agent, as the case may be. Upon the appointment as aforesaid of a successor Fiscal Agent or Paying Agent, as the case may be, and acceptance by such successor of such appointment, the Fiscal Agent or Paying Agent, as the case may be, so succeeded shall cease to be Fiscal Agent or Paying Agent, as the case may be, hereunder. If no successor Fiscal Agent or other Paying Agent, as the case may be, shall have been so appointed by the Issuer and shall have accepted appointment as hereinafter provided, and, in the case of such other Paying Agent, if such other Paying Agent is the only Paying Agent located in a place where, by the terms of the Securities or this Agreement, the Issuer is required to maintain a Paying Agent, then any holder of a Security who has been a bona fide holder of a Security for at least 6 months, on behalf of such holder and all others similarly situated, or the Fiscal Agent may petition any court of competent jurisdiction at the expense of the Issuer for the appointment of a successor agent. The Issuer shall give prompt written notice to each other Paying Agent of the appointment of a successor Fiscal Agent.

(d)Acknowledgment Any successor Fiscal Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the Issuer an instrument accepting such appointment hereunder, and thereupon such successor Fiscal Agent, without any further act, deed or conveyance, shall become vested with all the authority, rights, powers, trusts, immunities, duties and obligations of such predecessor with like effect as if originally named as Fiscal Agent hereunder, and such predecessor, upon payment of its charges hereunder, including compensation, and reimbursement of its disbursements then unpaid, shall thereupon become obligated to transfer, deliver and pay over, and such successor Fiscal Agent shall be entitled to receive, all monies, securities, books, records or other property on deposit with or held by such predecessor as Fiscal Agent hereunder.
30

EXHIBIT 4.1

(e)Merger, Consolidation, etc.Any corporation into which the Fiscal Agent hereunder may be merged, or any corporation resulting from any merger or consolidation to which the Fiscal Agent shall be a party, or any corporation to which the Fiscal Agent shall sell or otherwise transfer all or substantially all of the corporate trust business of the Fiscal Agent, provided that it shall be qualified as aforesaid, shall be the successor Fiscal Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto.

11.Payment of Taxes The Issuer will pay all stamp and other duties, if any, which may be imposed by the United States of America or any political subdivision thereof or taxing authority of or in the foregoing with respect to this Agreement or the issuance of the Securities.

12.Amendments Approval With the written consent of the registered holders of not less than a majority in aggregate principal amount of the Securities then Outstanding (or of such other percentage as may be set forth in the text of the Securities with respect to the action being taken), the Issuer and the Fiscal Agent may modify, amend or supplement the terms of the Securities and this Agreement in any way, and the holders of Securities may make, take or give any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Agreement or the Securities to be made, given or taken by holders of Securities; provided, however, that no such action may, without the consent of the holder of each Security affected thereby, (A) change the due date for the payment of the principal of or any installment of interest on any Security, (B) reduce the principal amount of any Security or the interest rate thereon (C) change the coin or currency in which or the place at which payment with respect to interest or principal in respect of Securities are payable as required by the proviso of the first sentence of the second paragraph of Section 2 hereof, or (D) reduce the proportion of the principal amount of Securities, the consent of the holders of which is necessary to modify, amend or supplement this Agreement or the terms and conditions of the Securities or to make, take or give any request, demand, authorization, direction, notice, consent, waiver or other action provided hereby or thereby to be made, taken or given. The Issuer and the Fiscal Agent may, without the consent of any holder of Securities, amend this Agreement or the Securities for the purpose of (i) adding to the covenants of the Issuer for the benefit of the holders of Securities, (ii) surrendering any right or power conferred upon the Issuer, (iii) securing the Securities pursuant to the requirements of the Securities or otherwise, (iv) evidencing the succession of another corporation to the Issuer and the assumption by any such successor of the covenants and obligations of the Issuer in the Securities or in this Agreement, (v) providing for the issuance of additional Securities in accordance with this Agreement, or (vi) correcting or supplementing any defective provision contained in the Securities or in this Agreement, and in any manner which the Issuer may determine that shall not be inconsistent with the Securities and shall not adversely affect the interest of any holder of Securities.

It shall not be necessary for the consent of the holders of Securities to approve the particular form of any proposed modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action, but it shall be sufficient if such consent shall approve the substance thereof.
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EXHIBIT 4.1

In entering into any amendment hereof, the Fiscal Agent shall receive, and may conclusively rely on, an opinion of counsel that such amendment is authorized or permitted by the terms of this Agreement.

(b)Binding Nature of Amendments, Notice, Notations, etc. Any instrument given by or on behalf of any holder of a Security in connection with any consent to any such modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action will be irrevocable once given and will be conclusive and binding on all subsequent holders of such Security or any Security issued directly or indirectly in exchange or substitution therefor or in lieu thereof. Any such modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action will be conclusive and binding on all holders of Securities, whether or not they have given such consent, and whether or not notation of such modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action is made upon the Securities. Notice of any modification or amendment of, supplement to, or request, demand, authorization, direction, notice, consent, waiver or other action with respect to the Securities or this Agreement (other than for purposes of curing any ambiguity or of curing, correcting or supplementing any defective provision hereof or thereof) shall be given to each holder of Securities affected thereby.

Securities authenticated and delivered after the effectiveness of any such modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action may bear a notation in the form approved by the Fiscal Agent and the Issuer as to any matter provided for in such modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action. New Securities modified to conform, in the opinion of the Fiscal Agent and the Issuer, to any such modification, amendment, supplement, request, demand, authorization, direction, notice, consent, waiver or other action may be prepared by the Issuer, authenticated by the Fiscal Agent (or any authenticating agent appointed pursuant to Section 3 hereof) and delivered in exchange for Outstanding Securities.

(c) “Outstanding” Defined For purposes of the provisions of this Agreement and the Securities, any Security authenticated and delivered pursuant to this Agreement shall, as of any date of determination, be deemed to be “Outstanding,” except:

(i)Securities theretofore canceled by the Fiscal Agent or delivered to the Fiscal Agent for cancellation or held by the Fiscal Agent for reissuance but not reissued by the Fiscal Agent;

(ii)Securities which have become due and payable at maturity or otherwise and with respect to which monies sufficient to pay the principal thereof and any interest thereon shall have been made available to the Fiscal Agent;

(iii)Securities which have been defeased pursuant to Section 15(b) hereof; or
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EXHIBIT 4.1

(iv)Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant to this Agreement;

provided, however, that in determining whether the holders of the requisite principal amount of Outstanding Securities have consented to any request, demand, authorization, direction, notice, consent, waiver, amendment, modification or supplement hereunder, Securities owned directly or indirectly by the Issuer or any affiliate of the Issuer shall be disregarded and deemed not to be Outstanding.

13.GOVERNING LAW THIS AGREEMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA.

14.Notices All notices or communications hereunder, except as herein otherwise specifically provided, shall be in writing and if sent to the Fiscal Agent shall be mailed, delivered or transmitted by facsimile to it at 2 N. LaSalle Street, Suite 700, Chicago, Illinois 60602, Attention: Corporate Trust Administration, facsimile no. (312) 827-8542 or if sent to the Issuer shall be mailed, delivered or transmitted by facsimile to it at 1111 South 103rd Street, Omaha, Nebraska 68124, Attention: General Counsel, facsimile no. (402) 398-7426 and electronic mail address Kirk.Lavengood@nngco.com. The foregoing addresses for notices or communications may be changed by written notice given by the addressee to each party hereto, and the addressee’s address shall be deemed changed for all purposes from and after the giving of such notice.
If the Fiscal Agent shall receive any notice or demand addressed to the Issuer by the holder of a Security, the Fiscal Agent shall promptly forward such notice or demand to the Issuer.
The Fiscal Agent agrees to accept and act upon instructions or directions pursuant to this Fiscal Agency Agreement sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods, provided, however, that the Fiscal Agent shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. The Fiscal Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Fiscal Agent’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The Issuer agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Fiscal Agent, including without limitation the risk of the Fiscal Agent acting on unauthorized instructions, and the risk or interception and misuse by third parties.
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EXHIBIT 4.1

15.Defeasance (Legal and Covenant)Issuer’s Option to Effect Defeasance or Covenant Defeasance The Issuer may at its option, by an Order of the Issuer delivered to the Fiscal Agent, elect to have either Section 15(b) or Section 15(c) applied to the Outstanding Securities upon compliance with the conditions set forth below in this Section 15.

(b)Defeasance and Discharge Upon exercise by the Issuer of the option provided in Section 15(a) applicable to this Section 15(b), the Issuer shall be deemed to have been discharged from its obligations with respect to the Outstanding Securities on the date the conditions set forth below are satisfied (hereinafter, “Defeasance”). For this purpose, such Defeasance means that the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by the Outstanding Securities and to have satisfied all its other obligations under such Securities and this Agreement insofar as the Securities are concerned (and the Issuer and the Fiscal Agent shall execute proper instruments acknowledging the same), except for the following, which shall survive until otherwise terminated or discharged hereunder: (i) the rights of holders of the Securities to receive, solely from the trust fund described in Section 15(d) and as more fully set forth in such Section, payments in respect of the principal of, premium, if any, and any interest on the Securities when such payments are due, (ii) the Issuer’s obligations with respect to the Securities under Sections 1(d), 2, 4, 6, 7, 8(a), 8(b) and 10 of this Agreement and paragraphs 3, 4, 6, 10 (insofar as it relates to Sections 8(a) and 8(b) of this Agreement), 11 and 12 of the Securities and (iii) this Section 15. Subject to compliance with this Section 15, the Issuer may exercise its option under this Section 15(b) notwithstanding the prior exercise of its option under Section 15(c).

(c)Covenant Defeasance Upon the Issuer’s exercise of the option provided in Section 15(a) applicable to this Section 15(c), the Issuer shall be released from its obligations under paragraphs 7(iii), 8, and 9(a)(iii) of the Securities on and after the date the conditions set forth below are satisfied (hereinafter, “Covenant Defeasance”). For this purpose, such Covenant Defeasance means that the Issuer may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such Section, whether directly or indirectly by reason of any reference elsewhere herein to any such Section or by reason of any reference in any such Section to any other provision herein or in any other document, but the remainder of the Issuer’s obligations shall be unaffected thereby.

(d)Conditions to Defeasance and Covenant Defeasance The following shall be the conditions to application of either Section 15(b) or Section 15(c) to the then Outstanding Securities:
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EXHIBIT 4.1

(i)The Issuer shall irrevocably have deposited or caused to be deposited with a trustee, who may be the Fiscal Agent and who shall agree to comply with the provisions of this Section 15 applicable to it (the “Defeasance 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 the Securities, (A) money in an amount, or (B) U.S. Government Obligations and/or Eligible Obligations which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (C) a combination thereof, sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Defeasance Trustee, to pay and discharge, and which shall be applied by the Defeasance Trustee to pay and discharge, the principal of, premium, if any, and each installment of interest on the Securities not later than one day before the stated maturity of such principal or installment of interest in accordance with the terms of this Agreement and of the Securities. For this purpose: “U.S. Government Obligations” means securities that are (x) direct obligations of the United States of America for the payment of which its full faith and credit are pledged or (y) 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, which, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Act) as custodian with respect to any such U.S. Government Obligation or a specific payment of principal of or interest on any such U.S. Government Obligation held by such custodian for the account of the holder of such 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 or the specific payment of principal of or interest on the U.S. Government Obligation evidenced by such depository receipt; and “Eligible Obligations” means interest bearing obligations as a result of the deposit of which the Securities are rated in the highest generic long-term debt rating category assigned to legally defeased debt by one or more nationally recognized rating agencies.
35

EXHIBIT 4.1

(ii)     In the case of an election under Section 15(b), the Issuer shall have delivered to the Defeasance Trustee an opinion of counsel stating that (x) the Issuer has received from, or there has been published by, the U.S. Internal Revenue Service a ruling, or (y) since the date of this Agreement there has been a change in the applicable U.S. Federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the holders of the Outstanding Securities will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to U.S. Federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred.

(iii)In the case of an election under Section 15(c), the Issuer shall have delivered to the Defeasance Trustee an opinion of counsel to the effect that the holders of the Outstanding Securities will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such deposit and Covenant Defeasance and will be subject to U.S. Federal income tax on the same amount, in the same manner and at the same times as would have been the case if such deposit and Covenant Defeasance had not occurred.

(iv)No event of default under paragraph 7 of the Securities or event which with notice or lapse of time or both would become such an event of default shall have occurred and be continuing on the date of such deposit or, insofar as paragraphs 7(iv) and (v) of the Securities are concerned, at any time during the period ending on the 121st day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period).

(v)Such Defeasance or Covenant Defeasance shall not result in a breach or violation of or constitute a default under, any other agreement or instrument to which the Issuer is a party or by which it is bound.

(vi)The Issuer shall have delivered to the Fiscal Agent and the Defeasance Trustee an Officers’ Certificate and an opinion of counsel, each stating that all conditions precedent provided for relating to either the Defeasance under Section 15(b) or the Covenant Defeasance under Section 15(c) (as the case may be) have been complied with.

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EXHIBIT 4.1

(vii)Such Defeasance or Covenant Defeasance shall not result in the trust arising from such deposit constituting an investment company as defined in the United States Investment Company Act of 1940, as amended, or such trust shall be qualified under such act or exempt from regulation thereunder.

(e)Deposit in Trust; MiscellaneousAll money, U.S. Government Obligations and Eligible Obligations (including the proceeds thereof) deposited with the Defeasance Trustee pursuant to Section 15(d) in respect of the Securities shall be held in trust (which in the case of cash, shall be uninvested) and applied by the Defeasance Trustee, in accordance with the provisions of the Securities and this Agreement, to the payment, either directly or through any Paying Agent as the Defeasance Trustee may determine, to the holders of the Securities, of all sums due and to become due thereon in respect of principal, premium, if any, and any interest, but such money need not be segregated from other funds except to the extent required by law. Any money deposited with the Defeasance Trustee for the payment of the principal of, premium, if any, or any interest on any Security and remaining unclaimed for two years after such principal, premium, if any, or interest has become due and payable shall be paid to the Issuer upon an Order; and the holder of such Security shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof and all liability of the Defeasance Trustee with respect to such trust money shall thereupon cease. In the absence of an Order from the Issuer to return unclaimed funds to the Issuer, the Defeasance Trustee shall from time to time deliver all unclaimed funds to or as directed by applicable escheat authorities, as determined by the Defeasance Trustee in its sole discretion, in accordance with the customary practices and procedures of the Defeasance Trustee.
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EXHIBIT 4.1

The Issuer shall pay and indemnify the Defeasance Trustee against any tax, fee or other charge imposed on or assessed against the U.S. Government Obligations or Eligible Obligations deposited pursuant to Section 15(d) or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the holders of the Outstanding Securities.

Anything in this Section 15 to the contrary notwithstanding, the Defeasance Trustee shall deliver or pay to the Issuer from time to time upon the request of the Issuer any money, U.S. Government Obligations or Eligible Obligations held by  it  as  provided  in  Section 15(d) which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Defeasance Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent defeasance or covenant defeasance.

(f)Reinstatement If the Defeasance Trustee is unable to apply any money in accordance with Section 15(b) or 15(c) by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuer’s obligations under this Agreement and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to this Section 15 until such time as the Defeasance Trustee is permitted to apply all such money in accordance with Section 15(b) or 15(c); provided, however, that if the Issuer makes any payment of principal of, premium, if any, or interest on any Security following the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the holders of such Securities to receive such payment from the money held by the Defeasance Trustee.

16.Headings The section headings herein are for convenience only and shall not affect the construction hereof.

17.Counterparts This Agreement may be executed in one or more counterparts, and by each party separately on a separate counterpart, and each such counterpart when executed and delivered shall be deemed to be an original. Such counterparts shall together constitute one and the same instrument.

18.Successors and Assigns All covenants and agreements in this Agreement by the Issuer shall bind its respective successors and assigns, whether so expressed or not.

19.Separability Clause In case any provision in this Agreement 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.

20.Waiver of Jury Trial. EACH OF THE ISSUER AND THE FISCAL AGENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY.
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EXHIBIT 4.1

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

22.FATCA. The Issuer agrees (i) to provide the Fiscal Agent with such reasonable information as it has in its possession to enable the Fiscal Agent to determine whether any payments pursuant to this Agreement are subject to the withholding requirements described in Section 1471(b) of the US Internal Revenue Code of 1986 (the “Code”) or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations, or agreements thereunder or official interpretations thereof (“Applicable Law”), and (ii) that the Fiscal Agent shall be entitled to make any withholding or deduction from payments under this Agreement to the extent necessary to comply with Applicable Law, for which the Fiscal Agent shall not have any liability.

23.Electronic Signatures. Any signature to this Agreement may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent permitted by applicable law. For the avoidance of doubt, the foregoing also applies to any amendment, extension or renewal of this Agreement.

(SIGNATURE PAGE FOLLOWS)
39

EXHIBIT 4.1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

NORTHERN NATURAL GAS COMPANY
									
		By:	/s/ Joseph Lillo
		Name:	Joseph Lillo
		Title:	Vice President, Finance

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Fiscal Agent
									
		By:	
		Name:	
		Title:	

[Signature Page to Fiscal Agency Agreement]

EXHIBIT 4.1

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

NORTHERN NATURAL GAS COMPANY
									
		By:	
		Name:	
		Title:	

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Fiscal Agent
									
		By:	/s/ Lawrence M. Kusch
		Name:	Lawrence M. Kusch
		Title:	Vice President

EXHIBIT 4.1

EXHIBIT A
FORM OF SECURITY
[Form of Face of Security]

[If this Security is a Global Security, insert—THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE FISCAL AGENCY AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE U.S. DEPOSITORY OR A NOMINEE OF THE U.S. DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE U.S. DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE FISCAL AGENCY AGREEMENT, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE U.S. DEPOSITORY TO A NOMINEE OF THE U.S. DEPOSITORY OR BY A NOMINEE OF THE U.S. DEPOSITORY TO THE U.S. DEPOSITORY OR ANOTHER NOMINEE OF THE U.S. DEPOSITORY OR BY THE U.S. DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR U.S. DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR U.S. DEPOSITORY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

UNLESS THIS GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE U.S. DEPOSITORY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE IS ISSUED IN THE NAME OR NAMES AS DIRECTED IN WRITING BY THE U.S. DEPOSITORY, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED HOLDER HEREOF, THE U.S. DEPOSITORY, HAS AN INTEREST HEREIN.]

[If this Security is a Regulation S Temporary Global Security, insert—THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL SECURITY, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE SECURITIES, ARE AS SPECIFIED IN THE FISCAL AGENCY AGREEMENT (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS  OF THIS REGULATION S TEMPORARY GLOBAL SECURITY SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON.]

[If this Security is a Regulation S Global Security, insert—THIS BOND (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) AND MAY NOTE BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.]
A-1

EXHIBIT 4.1

THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. BY ITS ACQUISITION OF THIS SECURITY OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER:

1.REPRESENTS THAT [(A)] IT IS A QUALIFIED INSTITUTIONAL BUYER, AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT OR (B) [If this Security is a Regulation S Global Security, insert the following text and delete all other text in this Section 1—IT IS NOT A U.S. PERSON AND IT HAS ACQUIRED THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT];

2.AGREES THAT IT WILL OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY, PRIOR TO THE DATE WHICH IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH NORTHERN NATURAL GAS COMPANY, OR ANY OF ITS AFFILIATES WAS THE HOLDER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO NORTHERN NATURAL GAS COMPANY OR ANY OF ITS SUBSIDIARIES, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, AS DEFINED IN RULE 144A, THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL ‘‘ACCREDITED INVESTOR’’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
A-2

EXHIBIT 4.1

3.AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND; AND

4.AGREES THAT, BEFORE THE HOLDER OFFERS, SELLS OR OTHERWISE TRANSFERS THIS SECURITY PURSUANT TO CLAUSES (D), (E) OR (G) OF SECTION 2 ABOVE, NORTHERN NATURAL GAS COMPANY MAY REQUIRE THE HOLDER OF THIS SECURITY TO DELIVER A WRITTEN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION THAT IT REASONABLY REQUIRES TO CONFIRM THAT SUCH PROPOSED TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

AS USED IN THIS SECURITY, THE TERMS “OFFSHORE TRANSACTION,” “U.S. PERSON” AND “UNITED STATES” HAVE THE MEANINGS GIVEN TO THEM WITHIN REGULATION S.

[If this Security is a Rule 144A Global Security, insert—EACH PURCHASER OF THE SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.]

THE FOREGOING LEGENDS MAY BE REMOVED FROM THE SECURITIES ON THE CONDITIONS SPECIFIED IN THE FISCAL AGENCY AGREEMENT.
A-3

EXHIBIT 4.1

NORTHERN NATURAL GAS COMPANY
3.400% Senior Bonds due 2051
									
			$[                                             ]

	No.                                                                      
		
			CUSIP No. [                                                                 ]

			[ISIN No. [                                                 ]]

NORTHERN NATURAL GAS COMPANY, a corporation duly organized under the laws of the State of Delaware (herein called the “Issuer”), for value received, hereby promises to pay to [name of registered holder or its registered assigns] [if this Security is a Global Security, insert- the Initial Principal Amount specified on Schedule A hereto (such Initial Principal Amount, as it may from time to time be adjusted by endorsement on Schedule A hereto, is hereinafter referred to as the “Principal Amount”)] [if this Security is not a Global Security, insert- the principal sum of     Dollars (the “Principal Amount”)] on October 16, 2051 and to pay interest thereon from April 9, 2021 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on April 15 and October 15 in each year, commencing October 15, 2021 (each an “Interest Payment Date”), at the rate of 3.400% per annum, until the principal hereof is paid or made available for payment and (to the extent that the payment of such interest shall be legally enforceable) at the rate per annum equal to the above rate plus 1% per annum on any overdue principal and on any overdue installment of interest. Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Fiscal Agency Agreement hereinafter referred to, be paid to the person (the “registered holder”) in whose name this Security (or one or more predecessor Securities) is registered at the close of business on April 1 or October 1 (whether or not a Business Day), as the case may be (each a “Regular Record Date”), next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the registered holder on such Regular Record Date and shall be paid to the person in whose name this Security (or one or more predecessor Securities) is registered at the close of business on a special record date for the payment of such interest to be fixed by the Issuer, notice whereof shall be given to registered holders of Securities not less than 10 days prior to such special record date.

[If this Security is a Regulation S Temporary Global Security, insert--Until this Regulation S Temporary Global Security is exchanged for one or more Regulation S Permanent Global Securities, the holder hereof shall not be entitled to receive payments of interest hereon; until so exchanged in full, this Regulation S Temporary Global Security shall in all other respects be entitled to the same benefits as other Securities under the Fiscal Agency Agreement.]
A-4

EXHIBIT 4.1

Principal of this Security shall be payable against surrender hereof at the corporate trust office or office of an agent of the Fiscal Agent hereinafter referred to or at such other offices or agencies as the Issuer may designate and at the offices of such other Paying Agents as the Issuer shall have appointed pursuant to the Fiscal Agency Agreement. Payments  of principal shall be made against surrender of this Security, and payments of interest on this Security shall be made, in accordance with the foregoing and subject to applicable laws and regulations, by check mailed on or before the due date for such payment to the person entitled thereto at such person’s address appearing on the aforementioned register or, in the case of payments of principal to such other address as the registered holder may specify upon such surrender; provided, however, that any payments shall be made, in the case of a registered holder of at least $1,000,000 aggregate principal amount of Securities, by transfer to an account maintained by the payee with a bank if such registered holder so elects by giving notice to the Fiscal Agent, not less than 15 days (or such fewer days as the Fiscal Agent may accept at its discretion) prior to the date of the payments to be obtained, of such election and of the account to which payments are to be made. The Issuer covenants that until this Security has been delivered to the Fiscal Agent for cancellation, or monies sufficient to pay the principal of, premium, if any, and interest on this Security have been made available for payment and either paid or returned to the Issuer as provided herein, it will at all times maintain an established place of business or agency in the Borough of Manhattan, The City of New York for the payment of the principal of and interest on the Securities as herein provided.

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

Unless the certificate of authentication hereon has been executed by the Fiscal Agent by manual signature, this Security shall not be valid or obligatory for any purpose.
A-5

EXHIBIT 4.1

IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed.

												
	Date:			NORTHERN NATURAL GAS COMPANY
				
			By:	
			Name:	
			Title:	
				
	Attest:			
				
	By:			
	Name:			
	Title:			

A-6

EXHIBIT 4.1

FISCAL AGENT’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Fiscal Agency Agreement.

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Fiscal Agent

By:
Authorized Signatory

Date of Authentication:     
A-7

EXHIBIT 4.1

[Form of reverse of Security]

1.This Security is one of a duly authorized issue of securities of the Issuer designated as its 3.400% Senior Bonds due 2051 (herein called the “Securities”), issued in aggregate principal amount of $550,000,000 and to be issued in accordance with a Fiscal Agency Agreement, dated as of April 9, 2021 (herein called the “Fiscal Agency Agreement”), between the Issuer and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent (herein called the “Fiscal Agent,” which term includes any successor fiscal agent under the Fiscal Agency Agreement), copies of which Fiscal Agency Agreement are on file and available for inspection at the corporate trust office of the Fiscal Agent which at the date hereof is at 2 N. LaSalle Street, Suite 700, Chicago, Illinois 60602.

The Securities are unsecured direct, unconditional and general obligations of the Issuer and will rank equally with all other unsecured and unsubordinated indebtedness of the Issuer.

2.[If this Security is a Global Security, insert—This Security is issuable only in fully registered form, without coupons, in minimum denominations of U.S. $2,000 and integral multiples of $1,000 in excess of $2,000.] [If this Security is a Restricted Definitive Security, insert—This Security is issuable only in fully registered form, without coupons, in minimum denominations of U.S. $200,000 and integral multiples of $1,000 in excess of
$200,000.]

3.The Issuer shall maintain in the Borough of Manhattan, The City of New York, an established place of business or agency where Securities may be surrendered for registration of transfer or exchange. The Issuer has initially appointed the Fiscal Agent acting through its corporate trust office in Chicago, and at its agent’s office in the Borough of Manhattan, The City of New York, as its agent for such purpose and the Issuer has agreed to cause to be kept at such offices a register in which, subject to such reasonable regulations as it may prescribe, the Issuer will provide for the registration of Securities and of transfers of Securities. The Issuer reserves the right to vary or terminate the appointment of the Fiscal Agent as security registrar or of any Transfer Agent or to appoint additional or other registrars or Transfer Agents or to approve any change in the office through which any security registrar or any Transfer Agent acts, provided that there will at all times be a security registrar or agent thereof in the Borough of Manhattan, The City of New York. Registered holders of  the Securities will receive notice of any such change.
A-8

EXHIBIT 4.1

The transfer of a Security is registrable on the aforementioned register upon surrender of such Security at the corporate trust office of the Fiscal Agent or the office of the agent of the Fiscal Agent or any Transfer Agent duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Fiscal Agent duly executed by, the registered holder thereof or such holder’s attorney duly authorized in writing. Upon such surrender of this Security for registration of transfer, the Issuer shall execute, and the Fiscal Agent shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities, dated the date of authentication thereof of any authorized denominations and of a like aggregate principal amount.

At the option of the registered holder upon request confirmed in writing, Securities may be exchanged for Securities of any authorized denominations and of a like tenor, form and aggregate principal amount upon surrender of the Securities to be exchanged at the office of any Transfer Agent or at the corporate trust office of the Fiscal Agent or agent thereof. Whenever any Securities are so surrendered for exchange, the Issuer shall execute, and the Fiscal Agent shall authenticate and deliver, the Securities which the registered holder making the exchange is entitled to receive. Any registration of transfer or exchange will be effected upon  the Transfer Agent or the Fiscal Agent, as the case may be, being satisfied with the documents of title and identity of the person making the request and subject to such reasonable regulations as the Issuer may from time to time agree with the Transfer Agent and the Fiscal Agent.

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Issuer evidencing the same debt, and entitled to the same benefits, as the Securities surrendered upon such registration of transfer or exchange. No service charge shall be made for any registration of transfer or exchange, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the Issuer, the Fiscal Agent and any agent of the Issuer or the Fiscal Agent may treat the person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Issuer, the Fiscal Agent nor any such agent shall be affected by notice to the contrary.
[If this Security is a Regulation S Temporary Global Security, insert--This Regulation S Temporary Global Security is exchangeable in whole or in part for one or more Global Securities only (i) on or after the termination of the 40-day Distribution Compliance Period (as defined in Regulation S) and (ii) upon presentation of certificates required by Section 5(d) of the Fiscal Agency Agreement. Upon exchange of this Regulation S Temporary Global Security for one or more Global Securities, the Fiscal Agent shall cancel this Regulation S Temporary Global Security.]
A-9

EXHIBIT 4.1

(a)The Issuer shall pay to the Fiscal Agent at its Corporate Trust Office, on  or prior to each Interest Payment Date and the maturity date of the Securities, in such amounts sufficient (with any amounts then held by the Fiscal Agent and available for the purpose) to pay the interest on, principal of and premium, if any, on the Securities due and payable on such Interest Payment Date or maturity date, as the case may be, in funds available on such date. The Fiscal Agent shall apply the amounts so paid to it to the payment of such interest and principal in accordance with the terms of the Securities. Any monies paid by the Issuer to the Fiscal Agent for the payment of the principal of, premium, if any, or interest on any Securities and remaining unclaimed at the end of two years after such principal, premium, if any, or interest shall have become due and payable (whether at maturity or otherwise) shall then be repaid to the Issuer upon its written request, and upon such repayment all liability of the Fiscal Agent with respect thereto shall cease, without, however, limiting in any way any obligation the Issuer may have to pay the principal of, premium, if any, and interest on this Security as the same shall become due.

(b)In any case where the due date for the payment of the principal of, premium, if any, or interest on any Security shall be at any place of payment on a day on which banking institutions are authorized or obligated by law to close, then payment of principal, premium, if any, or interest need not be made on such date at such place but may be made on the next succeeding day at such place which is not a day on which banking institutions are authorized or obligated by law to close, with the same force and effect as if made on the date for such payment, and no interest shall accrue for the period after such date.

5.The Securities are subject to redemption upon not less than 15 or more than 60 days’ notice to the registered holders of such Securities, at any time, as a whole or in part, at the election of the Issuer, at a redemption price equal to the greater of: (i) 100% of the Principal Amount of the Securities being redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal of and interest on the Securities being redeemed discounted to the Par Call Date (as defined below) determined by discounting on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Yield plus 20 basis points, plus, for (i) or (ii) above, whichever is applicable, accrued and unpaid interest on the Securities to, but excluding, the Redemption Date.

The Securities are also subject to redemption upon not less than 15 or more than 60 days’ notice to the registered holders of such Securities, at any time on or after April 15, 2051 (the “Par Call Date”) (which is the date that is six months prior to the maturity date of the Securities), as a whole or in part, at the election of the Issuer, at a redemption price equal to 100% of the Principal Amount of the Securities being redeemed, plus accrued and unpaid interest on the Securities to, but excluding, the Redemption Date. 

If fewer than all the Securities are to be redeemed, selection of Securities for redemption will be made (i) in the case of Securities held in definitive form, such selection will be by lot, and (ii) in the case of Securities in Global form, such selection by the U.S. Depository in accordance with its applicable procedures.
A-10

EXHIBIT 4.1

Unless the Issuer defaults in payment of the redemption price, from and after the Redemption Date, the Securities or portions thereof called for redemption will cease to bear interest, and the holders thereof will have no right in respect of such Securities except the right to receive the redemption price thereof.

[If this Security is a Global Security, insert—In the event of redemption of this Security in part only, the Fiscal Agent will reduce the Principal Amount hereof by endorsement on Schedule A hereto such that the Principal Amount shown on Schedule A after such endorsement will reflect only the unredeemed portion hereof.]

For purposes of the Securities,

“Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions in The City of New York or the City of Chicago or at a place of payment are authorized by law, regulation or executive order to remain closed.

“Comparable Treasury Issue” means the U.S. Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Securities (assuming for this purpose that the Securities matured on the Par Call Date).

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Issuer obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Issuer.

“Redemption Date” means any date on which the Issuer redeems all or any portion of the Securities in accordance with the terms hereof.

“Reference Treasury Dealer” means (i) Mizuho Securities USA LLC, RBC Capital Markets, LLC, an affiliate of Scotia Capital (USA) Inc. and Wells Fargo Securities, LLC, each of whom is a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”) and (ii) a Primary Treasury Dealer selected by U.S. Bancorp Investments, Inc., or its respective affiliates or successors; provided, however, that if any of the foregoing or their affiliates or successors shall cease to be a Primary Treasury Dealer, the Issuer shall substitute therefor another Primary Treasury Dealer.
A-11

EXHIBIT 4.1

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) and quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day in New York City preceding such Redemption Date.

“Treasury Yield” means, with respect to any Redemption Date, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

6.The Issuer shall pay all stamp and other duties, if any, which may be imposed by the United States or any political subdivision thereof or taxing authority of or in the foregoing with respect to the Fiscal Agency Agreement or the issuance of this Security. Except as otherwise provided in this Security, the Issuer shall not be required to make any payment with respect to any tax, assessment or other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein.

7.In the event of:

(i)default in the payment of any interest on any Security for a period of 30 days after the date when due; or

(ii)default in the payment of the principal of any Security when due (whether at maturity or otherwise); or

(iii)default in the performance or breach of any other covenant or agreement of the Issuer contained in the Securities or in the Fiscal Agency Agreement for a period of 60 days after the date on which written notice of such default requiring the Issuer to remedy the same and stating that such notice is a “Notice of Default” shall first have been given to the Issuer and the Fiscal Agent by the holders of at least 25% in principal amount of the Securities at the time Outstanding (as defined in the Fiscal Agency Agreement); or

(iv)the entry by a court having jurisdiction in the premises of (1) a decree or order for relief in respect of the Issuer in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or a decree or order adjudging the Issuer bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Issuer under any applicable Federal or State law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Issuer or of any substantial part of the property of the Issuer, or ordering the winding up or liquidation of the affairs of the Issuer, and any such decree or order for relief or any such other decree or order shall continue unstayed and in effect for a period of 60 consecutive days; or
A-12

EXHIBIT 4.1

(v)commencement by the Issuer of a voluntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by the Issuer to the entry of a decree or order for relief in respect of the Issuer in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against the Issuer, or the filing by the Issuer of a petition or answer or consent seeking reorganization or relief under any such applicable Federal or State law, or the consent by the Issuer to the filing of such petition or to the appointment of or the taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Issuer or of any substantial part of its property, or the making by the Issuer of an assignment for the benefit of creditors, or the taking of action by the Issuer in furtherance of any such action;

the registered holders of this Security may, at such holder’s option, declare the principal of this Security and the interest accrued hereon to be due and payable immediately by written notice to the Issuer and the Fiscal Agent at its Corporate Trust Office, and unless all such defaults shall have been cured by the Issuer prior to receipt of such written notice, the principal of the Security and the interest accrued thereon shall become and be immediately due and payable.  For purposes of the Securities, “Subsidiary” of the Issuer means a corporation all of the outstanding voting stock of which is owned, directly or indirectly, by the Issuer and/or one or more Subsidiaries of the Issuer. For the purposes of this definition, “voting stock” means stock which ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency.

8.So long as any of the Securities are Outstanding, the Issuer will not pledge, mortgage or hypothecate, or permit to exist, and will not cause, suffer or permit any Subsidiary of it to pledge, mortgage or hypothecate, or permit to exist, except in favor of the Issuer or any Subsidiary of it, any mortgage, pledge or other lien upon, any Principal Property  (as hereinafter defined) at any time owned by it, to secure any Indebtedness (as hereinafter defined) of it, without making effective provision whereby the Outstanding Securities shall be equally and ratably secured with any and all such Indebtedness of the Issuer and with any other Indebtedness of it similarly entitled to be equally and ratably secured; provided, however, that this restriction shall not apply to or prevent the creation or existence of:

(i)undetermined or inchoate liens and charges incidental to construction, maintenance, development or operation;

(ii)any liens of taxes and assessments for the then current year;

(iii)any liens of taxes and assessments not at the time delinquent;

(iv)any liens of specified taxes and assessments which are delinquent but the validity of which is being contested in good faith at the time by the Issuer or any Subsidiary of it;

(v)any liens reserved in leases for rent and for compliance with the terms of the lease in the case of leasehold estates;
A-13

EXHIBIT 4.1

(vi)any obligations or duties, affecting the property of the Issuer or any Subsidiary of it, to any municipality or public authority with respect to any franchise, grant, license, permit or similar arrangement;

(vii) the liens of any judgments or attachments in an aggregate amount not in excess of $10,000,000, or the lien of any judgment or attachment the execution or enforcement of which has been stayed or which has been appealed and secured, if necessary, by the filing of an appeal bond;

(viii)any mortgage, pledge, lien or encumbrance on any property held or used by the Issuer or any Subsidiary of it in connection with the exploration for, development of or production of oil, gas, natural gas (including liquefied gas and storage gas), other hydrocarbons, helium, coal, metals, minerals, steam, timber, geothermal or other natural resources or synthetic fuels, such properties to include, but not be limited to, the interest of the Issuer or such Subsidiary in any mineral fee interests, oil, gas or other mineral leases, royalty, overriding royalty or net profits interests, production payments and other similar interests, wellhead production equipment, tanks, field gathering lines, leasehold or field separation and processing facilities, compression facilities and other similar personal property and fixtures;

(ix)any mortgage, pledge, lien or encumbrance on oil, gas, natural gas (including liquefied gas and storage gas), and other hydrocarbons, helium, coal, metals, minerals, steam, timber, geothermal or other natural resources or synthetic fuels produced or recovered from any property, an interest in which is owned or leased by the Issuer or any Subsidiary of it;

(x)mortgages, pledges, liens or encumbrances upon any property heretofore or hereafter acquired, created at the time of acquisition or within 365 days thereafter to secure all or a portion of the purchase price thereof, or existing thereon at the date of acquisition, whether or not assumed by the Issuer or any Subsidiary of it, provided that every such mortgage, pledge, lien or encumbrance shall apply only to the property so acquired and fixed improvements thereon;

(xi)any extension, renewal or refunding, in whole or in part, of any mortgage, pledge, lien or encumbrance permitted by Section (x) above, if limited to the same property or any portion thereof subject to, and securing not more than the amount secured by, the mortgage, pledge, lien or encumbrance extended, renewed or refunded;
A-14

EXHIBIT 4.1

(xii) mortgages, pledges, liens or encumbrances upon any property heretofore or hereafter acquired by any corporation that is or becomes such a Subsidiary of the Issuer after the date of the Fiscal Agency Agreement (“Acquired Entity”), provided that every such mortgage, pledge, lien or encumbrance (1) shall either (a) exist prior to the time the Acquired Entity becomes such a Subsidiary or (b) be created at the time the Acquired Entity becomes such a Subsidiary or within 365 days thereafter to secure all or a portion of the acquisition price thereof and (2) shall only apply to those properties owned by the Acquired Entity at the time it becomes such a Subsidiary or thereafter acquired by it from sources other than the Issuer or any other Subsidiary of it;

(xiii)the pledge of current assets, in the ordinary course of business, to secure current liabilities;

(xiv)mechanics’ or materialmen’s liens, any liens or charges arising by reason of pledges or deposits to secure payment of workmen’s compensation or other insurance, good faith deposits in connection with tenders, leases of real estate, bids or contracts (other than contracts for the payment of money), deposits to secure duties or public or statutory obligations, deposits to secure, or in lieu of, surety, stay or appeal bonds, and deposits as security for the payment of taxes or assessments or similar charges;

(xv) any lien arising by reason of deposits with, or the giving of any form of security to, any governmental agency or any body created or approved by law or governmental regulation for any purpose at any time in connection with the financing of the acquisition or construction of property to be used in the business of the Issuer or any Subsidiary of it or as required by law or governmental regulation as a condition to the transaction of any business or the exercise of any privilege or license, or to enable the Issuer or any such Subsidiary to maintain self-insurance or to participate in any funds established to cover any insurance risks or in connection with workmen’s compensation, unemployment insurance, old age pensions or other social security, or to share in the privileges or benefits required for companies participating in such arrangements;

(xvi)any lien to secure Indebtedness of the Issuer other than Funded Debt (as hereinafter defined);

(xvii)any mortgage, pledge, lien or encumbrance of or upon any office equipment, data processing equipment (including, without limitation, computer and computer peripheral equipment), or transportation equipment (including without limitation, motor vehicles, tractors, trailers, marine vessels, barges, towboats, rolling stock and aircraft);
A-15

EXHIBIT 4.1

(xviii)any mortgage, pledge, lien or encumbrance created or assumed by the Issuer or any Subsidiary of it in connection with the issuance of debt securities the interest on which is excludable from gross income of the holder of such security pursuant to the Internal Revenue Code of 1986, as amended, for the purpose of financing, in whole or in part, the acquisition or construction of property to be used by the Issuer or any such Subsidiary;

(xix)the pledge or assignment of accounts receivable, or the pledge or assignment of conditional sales contracts or chattel mortgages and evidences of indebtedness secured thereby, received in connection with the sale by the Issuer or any Subsidiary of it of goods or merchandise to customers of the Issuer or any Subsidiary;

(xx) mortgages, pledges, liens or encumbrances upon any property (i) arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business (provided such Indebtedness is extinguished within five business days of its incurrence), and (ii) in favor of banking institutions arising as a matter of law encumbering deposits (including the right of set-off) and which are within the general parameters customary in  the banking industry;

(xxi)mortgages, pledges, liens or encumbrances upon any property arising out of conditional sale, title retention, consignment or similar arrangements for the sale or purchase of goods or services or arrangements for the treatment, separation or processing of gas liquids entered into by us or any Subsidiary in the ordinary course of business; or

(xxii)rights reserved to or vested in any Government Authority to use, control or regulate any property of us or any of our Subsidiaries.

In case the Issuer or any Subsidiary of it shall propose to pledge, mortgage or hypothecate any Principal Property at any time owned by it to secure any of its Indebtedness, other than as permitted by subdivisions (i) to (xxii), inclusive, of this Paragraph 8, the Issuer will prior thereto give written notice thereof to the Fiscal Agent, and the Issuer will, or will cause such Subsidiary to, prior to or simultaneously with such pledge, mortgage or hypothecation, effectively secure all the Securities equally and ratably with such Indebtedness.

Notwithstanding the foregoing provisions of this Paragraph 8, the Issuer or any Subsidiary of it may incur, assume or guarantee indebtedness secured by a mortgage which would otherwise be subject to the foregoing restrictions in an aggregate amount which, together with all other Indebtedness of the Issuer or a Subsidiary of it secured by a mortgage which (if originally issued, assumed or guaranteed at such time) would otherwise be subject to the foregoing restrictions (not including Indebtedness permitted to be secured under clauses (i) through (xix) above), does not at the time exceed 10% of the Consolidated Net Tangible Assets of the Issuer as shown on its audited consolidated financial statements as of the end of the fiscal year preceding the date of determination.
A-16

EXHIBIT 4.1

For purposes of the Securities,

“Consolidated Net Tangible Assets” of any corporation means total assets less (a) total current liabilities (excluding Indebtedness due within 365 days) and (b) goodwill, patents and trademarks, all as reflected in such corporation’s audited consolidated balance sheet preceding the date of a determination under the immediately preceding paragraph of this Paragraph 8.

“Funded Debt” as applied to any corporation means all Indebtedness incurred, created, assumed or guaranteed by such corporation, or upon which it customarily pays interest charges; provided, however, that the term “Funded Debt” shall not include (i) Indebtedness incurred in the ordinary course of business representing borrowings, regardless of when payable, of such corporation from time to time against, but not in excess of the face amount of, its installment accounts receivable for the sale of appliances and equipment sold in the regular course of business or (ii) advances for construction and security deposits received by such corporation in the ordinary course of business.

“Government Authority” means any nation or government, any state, province, territory or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative function of or pertaining to government.

A-17

EXHIBIT 4.1

“Indebtedness” as applied to any corporation, means bonds, debentures, notes and other instruments representing obligations created or assumed by any such corporation for the repayment of money borrowed (other than unamortized debt discount or premium). All Indebtedness secured by a lien upon property owned by any corporation and upon which Indebtedness any such corporation customarily pays interest, although any such corporation has not assumed or become liable for the payment of such Indebtedness, shall for all purposes of the Securities be deemed to be Indebtedness of any such corporation. All Indebtedness for money borrowed or incurred by other persons which is directly guaranteed as to payment of principal by any corporation shall for all purposes of the Securities be deemed to be Indebtedness of such corporation, but no other contingent obligation of such corporation in respect of Indebtedness incurred by other persons shall for any purpose be deemed Indebtedness of such corporation. Indebtedness of any corporation shall not include: (i) amounts which are payable only out of all or a portion of the oil, gas, natural gas, helium, coal, metal, mineral, steam, timber, hydrocarbons, or geothermal or other natural resources produced, derived or extracted from properties owned or developed by such corporation; (ii) any amount representing capitalized lease obligations; (iii) any indebtedness incurred to finance oil, gas, natural gas, helium, coal, metals, minerals, steam, timber, hydrocarbons or geothermal or other natural resources or synthetic fuel exploration or development, payable with respect to principal and interest, solely out of proceeds of oil, gas, natural gas, helium, coal, metals, minerals, steam, timber, hydrocarbons or geothermal or other natural resources or synthetic fuel to be produced, sold and/or delivered by any such corporation; (iv) indirect guarantees or other contingent obligations in connection with the Indebtedness of others, including agreements, contingent or otherwise, with such other persons or with third persons with respect to, or to permit or ensure the payment of, obligations of such other persons, including, without limitation, agreements to purchase or repurchase obligations of such other persons, agreements to advance or supply funds to or to invest in such other persons, or agreements to pay for property, products or services of such other persons (whether or not conferred, delivered or rendered), and any demand charge, throughput, take-or-pay, keep-well, make-whole, cash deficiency, maintenance of working capital or earnings or similar agreements; and (v) any guarantees with respect to lease or other similar periodic payments to be made by other persons.
“Principal Property” of the Issuer means any oil or gas pipeline, gas processing plant or chemical plant located in the United States, except any such pipeline, facility, station or plant that in the opinion of the Board of Directors of the Issuer is not of material importance to the total business conducted by the Issuer or its Subsidiaries. “Principal Property” shall not include any oil or gas property or the production or any proceeds of production from an oil or gas producing property or the production or any proceeds of production of gas processing plants or oil or gas or petroleum products in any pipeline. “Principal Property” shall also include any gas storage facility or gas compressor station located in the United States, except any such facility or station that in the opinion of the Board of Directors of the Issuer is not of material importance to the total business conducted by the Issuer or its Subsidiaries, and “Principal Property” shall not include any liquefied natural gas plants and related storage facilities or any natural gas liquids processing plants.
A-18

EXHIBIT 4.1

(a)The Issuer shall not consolidate with or merge into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person, and the Issuer shall not permit any person to consolidate with or merge into the Issuer or convey, transfer or lease its properties and assets substantially as an entirety to the Issuer unless:

(i)in case the Issuer shall consolidate with or merge into another person or convey, transfer or lease its properties and assets substantially as an entirety to any person, the person formed by such consolidation or into which the Issuer is merged or the person which acquires by conveyance or transfer, or which leases, the properties and assets of the Issuer substantially as an entirety shall be a corporation, partnership or trust, shall be organized and validly existing under the laws of the United States of America, any State thereof or the District of Columbia (the “Successor Person”) and shall expressly assume, by amendment to the Fiscal Agency Agreement signed by the Issuer and such Successor Person and delivered to the Fiscal Agent, the due and punctual payment of the principal of and interest on at the Securities and the performance or observance of every covenant hereof and of the Fiscal Agency Agreement on the part of the Issuer to be performed or observed;

(ii)immediately after giving effect to such transaction and treating any indebtedness which becomes an obligation of the Issuer or any Subsidiary of it as a result of such transaction as having been incurred by the Issuer or any such Subsidiary at the time of such transaction, no event of default (as set forth in Paragraph 7), and no event which, with notice or lapse of time or both, would become such an event of default, shall have happened and be continuing;

(iii)if, as a result of any such consolidation or merger or such conveyance, transfer or lease, properties or assets of the Issuer or any Subsidiary of it would become subject to a mortgage, pledge, lien, security interest or other encumbrance which would not be permitted by Paragraph 8 hereof, the Issuer, or the Successor Person, as the case may be, shall take such steps as shall be necessary effectively to secure the Securities equally and ratably with (or prior to) all Indebtedness secured by such mortgage, pledge, lien, security interest or other encumbrance; and

(iv)the Issuer has delivered to the Fiscal Agent an Officers’ Certificate and a written opinion or opinions of counsel satisfactory to the Fiscal Agent (who may be counsel to the Issuer), stating that such consolidation, merger, conveyance, transfer or lease and such amendment to the Fiscal Agency Agreement comply with this Paragraph 9 and that all conditions precedent herein provided for relating to such transaction have been complied with.
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EXHIBIT 4.1

(b)Upon any such consolidation or merger, or any conveyance, transfer or lease of the properties and assets of the Issuer substantially as an entirety in accordance with Paragraph 9(a), the Successor Person shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under the Fiscal Agency Agreement and the Securities with the same effect as if the Successor Person had been named as the Issuer in the Fiscal Agency Agreement and the Securities, and thereafter the Issuer, except in the case of a lease of its properties and assets, shall be released from its liability as obligor on any of the Securities and under the Fiscal Agency Agreement.

10.Section 8 of the Fiscal Agency Agreement, which requires the Issuer to provide registered holders of Securities or, in the case of clauses (a) and (b) thereof, designated prospective purchasers of Securities with certain information and an Officers’ Certificate, is hereby incorporated mutatis mutandis by reference herein.

11.Until the date that is one year from the date of original issuance of the Securities, the Issuer will not, and will not permit any of its “affiliates” (as defined under Rule 144 under the Act or any successor provision thereto) to, resell any Securities which constitute “restricted securities” under Rule 144 that have been reacquired by any of them.

12.If any mutilated Security is surrendered to the Fiscal Agent, the Issuer shall execute, and the Fiscal Agent shall authenticate and deliver in exchange therefor, a new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding.

If there be delivered to the Issuer and the Fiscal Agent (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of each of them harmless, then, in the absence of notice to the Issuer or the Fiscal Agent that such Security has been acquired by a bona fide purchaser, the Issuer shall execute, and upon its written request the Fiscal Agent shall authenticate and deliver in lieu of any such destroyed, lost or stolen Security a new Security of like tenor and principal amount and bearing a number not contemporaneously outstanding.

Upon the issuance of any new Security under this Paragraph 12, the Issuer 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 the expenses of the Fiscal Agent) connected therewith.

Every new Security issued pursuant to this Paragraph 12 in lieu of any destroyed, lost or stolen Security, shall constitute an original additional contractual obligation of the Issuer, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone.

Any new Security delivered pursuant to this Paragraph 12 shall be so dated that neither gain nor loss in interest shall result from such exchange.

The provisions of this Paragraph 12 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.
A-20

EXHIBIT 4.1

13.Section 12 of the Fiscal Agency Agreement, which Section is hereby incorporated mutatis mutandis by reference herein, provides that, with certain exceptions as therein provided and by written consent of a majority in the principal amount of all Outstanding Securities, the Issuer and the Fiscal Agent may modify, amend or supplement the Fiscal Agency Agreement or the terms of the Securities or may give consents or waivers or take other actions with respect thereto. Any such modification, amendment, supplement, consent, waiver or other action shall be conclusive and binding on the holder of this Security and on all future holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange heretofore or in lieu hereof, whether or not notation thereof is made upon this Security. The Fiscal Agency Agreement and the terms of the Securities may be modified or amended by the Issuer and the Fiscal Agent, without the consent of any holders of Securities, for the purpose of (i) adding to the covenants of the Issuer for the benefit of the holders of Securities, or (ii) surrendering any right or power conferred upon the Issuer, or (iii) securing the Securities pursuant to the requirements of the Securities or otherwise, or (iv) evidencing the succession of another corporation to the Issuer and the assumption by any such successor of the covenants and obligations of the Issuer in the Securities or in the Fiscal Agency Agreement pursuant to Paragraph 9 hereof, (v) providing for the issuance of additional Securities in accordance with the Fiscal Agency Agreement, or (vi) correcting or supplementing any defective provision contained in the Securities or in the Fiscal Agency Agreement, to all of which each holder of any Security, by acceptance thereof, consents.

14.No reference herein to the Fiscal Agency Agreement and no provision of this Security or of the Fiscal Agency Agreement shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.

15.This Security is subject to the provisions of Section 15 of the Fiscal Agency Agreement (which are incorporated mutatis mutandis by reference herein) which  provide for the defeasance at any time of (i) the entire indebtedness of this Security or (ii) certain covenants and events of default, in each case upon compliance with certain conditions set forth therein.

16.Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures (“CUSIP”), the Issuer will cause CUSIP numbers to  be printed on the Securities as a convenience to the holders of the Securities. This Security will also bear an ISIN number. No representation is made as to the accuracy of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

17.THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
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EXHIBIT 4.1

[IF THIS SECURITY IS A GLOBAL SECURITY, INSERT AS A SEPARATE PAGE]

Schedule A

SCHEDULE OF ADJUSTMENTS

Initial Principal Amount: U.S. $                 

															
	

Date adjustment made
	

Principal amount increase
	

Principal amount decrease
	Principal amount following
adjustment
	

Notation made on behalf of the Transfer Agent

A-1

EXHIBIT 4.1

EXHIBIT B

FORM OF TRANSFER CERTIFICATE
FOR TRANSFER OR EXCHANGE FROM REGULATION S GLOBAL SECURITY TO RULE 144A GLOBAL SECURITY

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re :    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This letter relates  to U.S. $     principal amount of Securities which are evidenced by one or more Regulation S Global Securities in fully registered form (CUSIP No. U66480 AK7; ISIN No. USU66480AK74) and held with the U.S. Depository by means of a book-entry interest through Euroclear or Clearstream in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such beneficial interest in the Regulation S Global Security to a Person that will take delivery thereof (the “Transferee”) in the form of any equal principal amount of Securities evidenced by one or more Rule 144A Global Securities (CUSIP No. 665501 AM4).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that the interests in the Regulation S Global Security are being transferred pursuant to and in accordance with Rule 144A under United States Securities Act of 1933, as amended (the “Act”), and, accordingly, the Transferor does hereby further certify that the interests in the Regulation S Global Security are being transferred to a Person that the Transferor reasonably believes is purchasing the Securities for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A, in each case in a transaction meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States.
B-1

EXHIBIT 4.1

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters and initial purchasers of the Securities being transferred.

															
					[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Dated:				

cc:    NORTHERN NATURAL GAS COMPANY

Signature Guaranty:                         

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
B-2

EXHIBIT 4.1

EXHIBIT C

FORM OF TRANSFER CERTIFICATE FOR TRANSFER OR EXCHANGE FROM REGULATION S GLOBAL
SECURITY TO RESTRICTED DEFINITIVE SECURITY

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re :    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This letter relates to U.S. $     principal amount of Securities which are evidenced by one or more Regulation S Global Securities in fully registered form (CUSIP No. U66480 AK7; ISIN No. USU66480AK74) and held with the U.S. Depository by means of a book-entry interest through Euroclear or Clearstream in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such beneficial interest in the Regulation S Global Security to a Person that will take delivery thereof (the “Transferee”) in the form of an equal principal amount of Securities evidenced by a Restricted Definitive Security.

In connection with such request and in respect of such Securities, the Transferor does hereby certify that the interests in the Regulation S Global Security are being transferred to a Person that the Transferor reasonably believes is purchasing the Securities for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or (7) under the Unites States Securities Act of 1933, as amended (the “Act”), and is purchasing such Securities for investment purposes and not with a view to, or for offer or sale in connection with, any distribution in violation of the Act, in a transaction in accordance with any applicable securities laws of the United States or any state thereof.
C-1

EXHIBIT 4.1

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters and initial purchasers of the Securities being transferred.
															
					[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Dated:				

cc:    NORTHERN NATURAL GAS COMPANY

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
C-2

EXHIBIT 4.1

EXHIBIT D

FORM OF TRANSFER CERTIFICATE
FOR EXCHANGE OR TRANSFER FROM REGULATION S GLOBAL SECURITY TO UNRESTRICTED GLOBAL SECURITY

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re:    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This letter relates  to U.S.$     principal amount of Securities which are evidenced by one or more Regulation S Global Securities (CUSIP No. U66480 AK7; ISIN No. USU66480AK74) and held with the U.S. Depository by means of a book-entry interest through Euroclear or Clearstream in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such beneficial interest in the Securities to a Person who will take delivery thereof in the form of an equal principal amount of Securities evidenced by one or more unrestricted Global Securities (CUSIP No.     ).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such transfer has been effected pursuant to and in accordance with either Rule 903, Rule 904 or Rule 144 under the Unites States Securities Act of 1933, as amended (the “Act”), and accordingly the Transferor does hereby further certify that:

(1)if the transfer has been effected pursuant to Rule 903 or Rule 904:
(a)the offer of the Securities was not made to a Person in the United States;
D-1

EXHIBIT 4.1

(b)either:

(i)at the time the buy order was originated, the transferee was outside the United States or the Transferor and any Person acting on its behalf reasonably believed that the transferee was outside the United States, or

(ii)the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any Person acting on its behalf knows that the transaction was pre- arranged with a buyer in the United States;

(c)no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; and

(d)the transaction is not part of a plan or scheme to evade the registration requirements of the Act; or

(2)if the transfer has been effected pursuant to Rule 144, the Securities have been transferred in a transaction permitted by Rule 144.

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters and initial purchasers, if any, of the Securities being transferred. Terms used in this certificate and not otherwise defined in the Fiscal Agency Agreement have the meanings set forth in Regulation S under the Act.
															
				[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Date:				

cc: NORTHERN NATURAL GAS COMPANY

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
D-2

EXHIBIT 4.1

EXHIBIT E

FORM OF TRANSFER CERTIFICATE
FOR EXCHANGE OR TRANSFER FROM RULE 144A GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re:    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This  letter  relates to U.S.$     principal amount of Securities which are evidenced by one or more Rule 144A Global Securities (CUSIP No. 665501 AM4) and held through the U.S. Depository in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such beneficial interest in the Securities to a non-U.S. person who will take delivery thereof in the form of an equal principal amount of Securities evidenced by one or more Regulation S Global Securities (CUSIP No. U66480 AK7; ISIN No. USU66480AK74), which amount, immediately after such transfer, is to be held with the U.S. Depository through Euroclear or Clearstream.

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such transfer has been effected pursuant to and in accordance with Rule 903 or Rule 904 under the Unites States Securities Act of 1933, as amended (the “Act”), and accordingly the Transferor does hereby further certify that:

(1)the offer of the Securities was not made to a Person in the United States;

(2)either:

(a)at the time the buy order was originated, the transferee was outside the United States or the Transferor and any Person acting on its behalf reasonably believed that the transferee was outside the United States, or
E-1

EXHIBIT 4.1

(b)the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any Person acting on its behalf knows that the transaction was pre-arranged with a buyer in the United States;

(3)no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable;

(4)the transaction is not part of a plan or scheme to evade the registration requirements of the Act; and

(5)upon completion of the transaction, the beneficial interest being transferred as described above is to be held with the U.S. Depository through Euroclear or Clearstream.

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters or initial purchasers, if any, of the initial offering of such Securities being transferred. Terms used in this certificate and not otherwise defined in the Fiscal Agency Agreement have the meanings set forth in Regulation S under the Act.

															
				[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Dated:				

cc:    NORTHERN NATURAL GAS COMPANY

Signature Guaranty:     

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
E-2

EXHIBIT 4.1

EXHIBIT F

FORM OF TRANSFER CERTIFICATE
FOR EXCHANGE OR TRANSFER FROM RULE 144A GLOBAL SECURITY TO RESTRICTED DEFINITIVE SECURITY

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re:    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This letter relates  to U.S.$     principal amount of Securities which are evidenced by one or more Rule 144A Global Securities (CUSIP No. 665501 AM4) and held through the U.S. Depository in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such beneficial interest in the Securities to a Person who will take delivery thereof in the form of an equal principal amount of Securities evidenced by a Restricted Definitive Security.

In connection with such request and in respect of such Securities, the Transferor does hereby certify that the interests in the Rule 144A Global Security are being transferred to a Person that the Transferor reasonably believes is purchasing the Securities for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or (7) under the Unites States Securities Act of 1933, as amended (the “Act”), and is purchasing such Securities for investment purposes and not with a view to, or for offer or sale in connection with, any distribution in violation of the Act, in a transaction in accordance with any applicable securities laws of the United States or any state thereof.
F-1

EXHIBIT 4.1

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters and initial purchasers, if any, of the Securities being transferred.

															
					[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Dated:				

cc: NORTHERN NATURAL GAS COMPANY

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
F-2

EXHIBIT 4.1

EXHIBIT G

FORM OF TRANSFER CERTIFICATE
FOR EXCHANGE OR TRANSFER FROM RULE 144A GLOBAL SECURITY TO UNRESTRICTED GLOBAL SECURITY

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re:    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This letter relates  to U.S.$     principal amount of Securities which are evidenced by one or more Rule 144A Global Securities (CUSIP No. 665501 AM4) and held through the U.S. Depository in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such beneficial interest in the Securities to a Person who will take delivery thereof in the form of an equal principal amount of Securities evidenced by one or more unrestricted Global Securities (CUSIP No.     ).

In connection with such request and in respect of such Securities, the Transferor does hereby certify that such transfer has been effected pursuant to and in accordance with either Rule 903, Rule 904 or Rule 144 under the Unites States Securities Act of 1933, as amended (the “Act”), and accordingly the Transferor does hereby further certify that:

(1)if the transfer has been effected pursuant to Rule 903 or Rule 904:
(a)the offer of the Securities was not made to a Person in the United States;
G-1

EXHIBIT 4.1

(b)either:

(i)at the time the buy order was originated, the transferee was outside the United States or the Transferor and any Person acting on its behalf reasonably believed that the transferee was outside the United States, or

(ii)the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any Person acting on its behalf knows that the transaction was pre- arranged with a buyer in the United States;

(c)no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; and

(d)the transaction is not part of a plan or scheme to evade the registration requirements of the Act; or

(2)if the transfer has been effected pursuant to Rule 144, the Securities have been transferred in a transaction permitted by Rule 144.

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters and initial purchasers, if any, of the Securities being transferred. Terms used in this certificate and not otherwise defined in the Fiscal Agency Agreement have the meanings set forth in Regulation S under the Act.

															
					[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Dated:				

cc: NORTHERN NATURAL GAS COMPANY

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
G-2

EXHIBIT 4.1

EXHIBIT H

FORM OF TRANSFER CERTIFICATE
FOR TRANSFER AND EXCHANGE OF RESTRICTED DEFINITIVE SECURITIES

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602

Attention: Corporate Trust Administration

Re:    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent. Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

This  letter  relates  to U.S. $     principal amount of Securities presented or surrendered on the date hereof (the “Surrendered Securities”) which are registered in the name of [insert name of transferor] (the “Transferor”). The Transferor has requested a transfer of such Surrendered Securities registered in the name of a Person (the “Transferee”) other than the Transferor (each such transaction being referred to herein as a “transfer”).

In connection with such request and in respect of such Surrendered Securities, the Transferor does hereby certify that:

[CHECK ONE]

									
	☐	(1)
	the Surrendered Securities are being transferred to the Issuer or an Affiliate thereof;

	☐	(2)
	the Surrendered Securities are being transferred pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “Act”) and, accordingly, the Transferor does hereby further certify that the Surrendered Securities are being transferred to a Person that the Transferor reasonably believes is purchasing the Surrendered Securities for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A, in each case in a transaction meeting the requirements of Rule 144A and in accordance with any applicable securities laws of any state of the United States;

H-1

EXHIBIT 4.1

									
	☐	(3)
	the Surrendered Securities are being transferred to a Person that the Transferor reasonably believes is purchasing the Surrendered Securities for its own account or for one or more accounts with respect to which such Person exercise sole investment discretion, and such Person and each such account is an institutional “accredited investor” as described in Rule 501(a)(1), (2), (3) or (7) under the Act and is purchasing such Surrendered Securities for investment purposes and not with a view to, or for offer or sale in connection with, any distribution in violation of the Act in a transaction in accordance with any applicable securities laws of the United States or any state thereof;

	☐	(4)	the Surrendered Securities are being transferred pursuant to and in accordance with Regulation S and:

(a)the offer of the Surrendered Securities was not made to a Person in the United States;

(b)either:

(i)at the time the buy order was originated, the transferee was outside the United States or the Transferor and any Person acting on its behalf reasonably believed that the transferee was outside the  United States, or

(ii)the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States;

(c)no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; and

(d)the transaction is not part of a plan or scheme to evade the registration requirements of the Act;

or

									
	☐	(5)	the Surrendered Securities are being transferred in a transaction permitted by
Rule 144.

H-2

EXHIBIT 4.1

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuer and the underwriters and initial purchasers of the Securities being transferred.

															
					[Insert Name of Transferor]
				By:	
				Name:	
				Title:	
	Dated:				

cc:    NORTHERN NATURAL GAS COMPANY

Signature Guaranty:     

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Transfer Agent, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Transfer Agent in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.
H-3

EXHIBIT 4.1

EXHIBIT I

FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

The Bank of New York Mellon Trust Company, N.A. 2 N. LaSalle Street
Suite 700
Chicago, Illinois 60602
Attention: Corporate Trust Administration

Re:    NORTHERN NATURAL GAS COMPANY 3.400% SENIOR BONDS DUE 2051

Reference is hereby made to the Fiscal Agency Agreement, dated as of April 9, 2021 (the “Fiscal Agency Agreement”), between Northern Natural Gas Company (the “Company”) and The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent (the “Fiscal Agent”). Capitalized terms used but not defined herein shall have the meanings given to them in the Fiscal Agency Agreement.

In connection with our proposed purchase  of $     aggregate principal amount of the Company’s 3.400% Senior Bonds due 2051 (the “Bonds”) we confirm that:

1.We will take delivery of the entire aggregate principal amount of Bonds we are acquiring only in the form of a Restrictive Definitive Security.

2.We understand that any subsequent transfer of the Bonds or any interest therein is subject to certain restrictions and conditions set forth in the Fiscal Agency Agreement and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Bonds or any interest therein except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”).
I-1

EXHIBIT 4.1

3.We understand that the offer and sale of the Bonds have not been registered under the Securities Act, and that the Bonds and any interest therein may not be offered or sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the securities we are acquiring or any interest therein prior to the date which is one year after the later of the original issue date of the Bonds and the last date on which Northern Natural Gas Company, or any of its affiliates, was the holder of such securities (or any predecessor securities thereof), such sales will be made only (A) to Northern Natural Gas Company or any of its Subsidiaries, (B) pursuant to a registration statement that has been declared effective under the Securities Act, (C) for so long as the securities are eligible for resale pursuant to Rule 144, to a person reasonably believed to be a qualified institutional buyer (as defined in Rule 144A) that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the transfer is being made in reliance on Rule 144A, (D) in a transaction meeting the requirements of Rule 144 under the Securities Act, (E) to an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is purchasing for its own account or for the account of an institutional accredited investor, and that executes and delivers a certificate substantially in the form of this certificate, (F) pursuant to offers and sales that occur outside the United States in an offshore transaction in accordance with Rule 904 under the Securities Act, or (G) pursuant to any other available exemption from the registration requirements of the Securities Act and, in each of the cases above, in accordance with the applicable Securities laws of any state of the United States or any other applicable jurisdiction, and, for so long as the Bonds we are acquiring are represented by a Restricted Definitive Security, we further agree to provide (i) to any Person purchasing the Restrictive Definitive Security or a beneficial interest in a Global Security from us in a transaction meeting the requirements of clauses (A) or (C) through (G) of this paragraph a notice advising such  purchaser that resales thereof are restricted as stated herein and (ii) to the Fiscal Agent and the Company, a duly completed certificate in the form of Exhibit H to the Fiscal Agency Agreement.

4.We understand that, on any proposed resale of the Bonds or beneficial interest therein, we will be required to furnish to you and the Company such certifications, legal opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Bonds purchased by us will bear a legend to the foregoing effect.

5.We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Bonds, and we and any accounts for which we are acting are each able to bear the economic risk of our or its investment.

6.We are acquiring the Bonds purchased by us for our own account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

You and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.
I-2

EXHIBIT 4.1

															
					[Insert Name of Accredited Investor]
				By:	
				Name:	
				Title:	
	Dated:				

I-3EXECUTION VERSION
US 7920599v.8 CHA715/20025
AMENDMENT NO. 3 TO
CREDIT AGREEMENT
AMENDMENT  NO.  3  TO  CREDIT  AGREEMENT,  dated  as  of  April  28,  2021  (this
“Third Amendment”), to the Five-Year Credit Agreement, dated as of May 13, 2015 (as amended
by that certain Amendment No. 1 to Credit Agreement dated as of August 9, 2017, by that certain
Amendment  No.  2  to  Credit  Agreement  dated  as  of  April  30,  2020  and  as  further  amended,
restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”),
among DILLARD’S,  INC.,  a  Delaware  corporation  (the  “Parent  Borrower”),  the  other
BORROWERS party thereto, the LENDERS party thereto and JPMORGAN CHASE BANK,
N.A., a national banking association, as administrative agent and collateral agent for the Lenders
(in such capacities, the “Agent”).  Capitalized terms used but not defined herein shall have the
meanings given them in the Amended Credit Agreement (as defined below).
WITNESSETH
WHEREAS, the Borrowers have requested that each of PNC Bank, National Association,
TD  Bank,  N.A.  and  Texas  Capital  Bank,  National  Association  (each  a  “New  Lender”  and,
collectively, the “New Lenders”) become a Lender under the Amended Credit Agreement with
each New Lender having a Commitment in the amount shown opposite such New Lender’s name
on Schedule 1.1 to the Amended Credit Agreement, on the terms and subject to the conditions set
forth herein;
WHEREAS, the Borrowers have requested to enter into this Third Amendment to amend
the Credit Agreement as set forth herein effective as of the Third Amendment Effective Date (as
defined below);
WHEREAS,  the  Agent,  the  Borrowers,  and  the  Lenders  (including  the  New  Lenders)
signatory hereto have agreed, subject to the terms and conditions set forth herein, to enter into this
Third Amendment;
NOW, THEREFORE, the parties hereto, in consideration of the mutual covenants and
agreements  herein  contained and intending to  be legally bound  hereby,  covenant and agree as
follows:
1. Amendment.    In  reliance  on  the  representations,  warranties,  covenants  and
agreements contained in this Third Amendment, but subject to the satisfaction of each condition
precedent set forth in Section 3 hereof, effective as of the Third Amendment Effective Date:
(a) The  Credit  Agreement  is  hereby  amended  to  delete  the  stricken  text
(indicated textually in the same manner as the following example: stricken text) and to add the
double-underlined text (indicated textually in the same manner as the following example: double-
underlined text) as set forth in the pages of the Credit Agreement attached as Annex I hereto (the
Credit Agreement as amended hereby, the “Amended Credit Agreement”); and
(b) Schedule 1.1 to the Credit Agreement is hereby deleted in its entirety and
replaced with Schedule 1.1 attached as Annex II hereto.  Immediately after giving effect to this
Third Amendment and any Borrowings made on the Third Amendment Effective Date, (a) each 

	
	2
Lender  (including  each  New  Lender)  who  holds  Loans  in  an  aggregate  amount  less  than  its
Commitment Percentage of all Loans shall advance new Loans which shall be disbursed to the
Agent  and  used  to  repay  Loans  outstanding  to  each  Lender  who  holds  Loans  in  an  aggregate
amount greater than its Commitment Percentage of all Loans, (b) each Lender’s (including each
New Lender’s) participation in each Letter of Credit, if any, shall be automatically adjusted to
equal its Commitment Percentage, (c) such other adjustments shall be made as the Agent shall
specify  so  that  the  Credit  Extensions  applicable  to  each  Lender  (including  each  New  Lender)
equals its Commitment Percentage of the Credit Extensions of all Lenders and (d) each applicable
Lender hereby waives any Breakage Costs owing to such Lender as a result of the reallocation of
Loans and adjustments described in this Section 1(b).
(c) Exhibit  D  to  the  Credit  Agreement  is  hereby  deleted  in  its  entirety  and
replaced with Exhibit D attached as Annex III hereto.
2. Representations and Warranties.  In order to induce the Agent and the Lenders
to enter into this Third Amendment, the Borrowers hereby jointly represent and warrant to the
Agent and the Lenders that as of the Third Amendment Effective Date, after giving effect to this
Third Amendment:
(a) no Default or Event of Default has occurred and is continuing;
(b) the  representations  and  warranties  of  the  Borrowers  set  forth  in  the
Amended Credit Agreement are true and correct in all material respects (except to the extent that
any such representation and warranty is qualified by materiality or Material Adverse Effect, in
which case such representation and warranty is true and correct in all respects) on and as of the
date hereof, except to the extent that any such representation and warranty relates to an earlier date
(in which case such representation and warranty is true and correct in all material respects (except
to  the  extent  that  any  such  representation  and warranty is  qualified  by  materiality or Material
Adverse Effect, in which case such representation and warranty is true and correct in all respects)
as of such earlier date);
(c) this  Third  Amendment  has  been  duly  executed  and  delivered  by  the
Borrowers, and the Amended Credit Agreement constitutes a legal, valid and binding obligation
of the Borrowers, enforceable in accordance with its terms, except as such enforceability may be
limited  by  (i)  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  laws  of  general
applicability  affecting  the  enforcement  of  creditors’  rights  and  (ii)  the  application  of  general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law); and
(d) no Borrower has any defense to payment, counterclaim or rights of set-off
with respect to the Obligations on the date hereof.
3. Conditions  Precedent.    The  effectiveness  of  this  Third  Amendment  and  the
obligations of the Lenders to make Loans and of the Issuing Lenders to issue Letters of Credit
under the Amended Credit Agreement is subject to satisfaction (or waiver by the Lenders) of the 

	
	3
following  conditions precedent (the date on  which such conditions precedent are satisfied, the
“Third Amendment Effective Date”):
(a) The Agent (or its counsel) shall have received from the Borrowers and the
Lenders (including the New Lenders) either (i) a counterpart of this Third Amendment signed on
behalf of such party or (ii) written evidence satisfactory to the Agent (which may include telecopy
or other electronic transmission of a signed signature page of this Third Amendment) that such
party has signed a counterpart of this Third Amendment.
(b) The Agent shall have received a favorable written opinion (addressed to the
Agent and the Lenders on the Third Amendment Effective Date and dated the Third Amendment
Effective Date) of Simpson Thacher & Bartlett LLP, counsel for the Borrowers, and such other
opinions of counsel as the Agent may reasonably request, and covering such matters relating to
the Borrowers, the Loan Documents or the transactions contemplated hereby as is customary for
transactions of this type.  The Borrowers hereby request such counsel to deliver such opinion.
(c) The Agent shall have received such documents and certificates as the Agent
or its counsel may reasonably request relating to the organization, existence and good standing of
each Borrower, the authorization of the transactions contemplated by the Loan Documents and
any  other  legal  matters  relating  to  the  Borrowers,  the  Loan  Documents  or  the  transactions
contemplated thereby, all in form and substance reasonably satisfactory to the Agent and their
counsel.
(d) The Agent shall have received the Borrowing Base Certificate most recently
required to be delivered pursuant to Section 6.01(e) of the Credit Agreement.
(e) The Agent shall have received a certificate, reasonably satisfactory in form
and substance to the Agent, with respect to the solvency of the Parent Borrower and its Subsidiaries
on a consolidated basis, as of the Third Amendment Effective Date.
(f) There is no pending litigation or other Proceeding, as to which there is a
reasonable possibility of an adverse determination and that, if adversely determined, the result of
which would reasonably be expected to have a Material Adverse Effect.
(g) The  consummation  of  the  transactions  contemplated  hereby  shall  not
conflict  with,  or  result  in  a  default  or  event  of  default  under,  any  material  agreement  of  any
Borrower,  including,  without  limitation,  under  the  Bonds  or  under  any  agreement  relating  to
Material Indebtedness, except for a conflict, default or event of default (other than under the Bonds
as to which no conflict, default or event of default may exist) which would not reasonably be
expected to have a Material Adverse Effect.
(h) The  Agent  shall  have  received  results  of  searches  or  other  evidence
reasonably satisfactory to the Agent (in each case dated as of a date reasonably satisfactory to the
Agent)  indicating  the  absence  of  Liens  on  the  Borrowers’  Inventory  and  proceeds  thereof,
including without limitation, receivables from credit card processors, except for Liens for which
termination  statements  and  releases  reasonably  satisfactory  to  the  Agent  are  being  tendered
concurrently with such extension of credit. 

	
	4
(i) All fees due and payable on the Third Amendment Effective Date and all
reasonable  and  documented  out-of-pocket  expenses  incurred  by  the  Agent  and  the  Third
Amendment Arrangers in connection with this Third Amendment (including the reasonable fees
and expenses of a single outside counsel to the Agent and the Third Amendment Arrangers) for
which  invoices  have  been  presented  not  later  than  three  (3)  Business  Days  prior  to  the  Third
Amendment Effective Date, shall have been paid in full.
(j) The Agent shall have received a certificate of the Parent Borrower (i) stating
that the representations and warranties made by the Borrowers to the Agent and the Lenders in the
Loan  Documents  are  true  and  correct  in  all  material  respects  (except  any  representations  and
warranties qualified by materiality shall be true and correct in all respects) as of the date of such
certificate, (ii) stating that no event has occurred which is or which, solely with the giving of notice
or passage of time (or both) would be an Event of Default, and (iii) certifying and attaching a list
of the DDAs, Excluded Accounts and credit card arrangements of the Borrowers as of the Third
Amendment Effective Date.
(k) (i) The Agent shall have received, at least three (3) days prior to the Third
Amendment Effective  Date, all  documentation  and other information  regarding the  Borrowers
requested  by  a  Lender  in  connection  with  applicable  “know  your  customer”  and  anti-money
laundering rules and regulations, including the USA PATRIOT Act, to the extent requested in
writing of the Borrowers by such Lender at least seven (7) days prior to the Third Amendment
Effective Date, and (ii) to the extent any Borrower qualifies as a “legal entity customer” under the
Beneficial Ownership Regulation, at least three (3) days prior to the Third Amendment Effective
Date, any Lender that has requested, in a written notice to the Borrowers at least seven (7) days
prior to the Third Amendment Effective Date, a Beneficial Ownership Certification in relation to
each Borrower shall have received such Beneficial Ownership Certification (provided that, upon
the execution and delivery by such Lender of its signature page to this Third Amendment, the
condition set forth in this clause (k)(ii) shall be deemed to be satisfied).
Without limiting the generality of the provisions of Section 9.02(c) of the Credit Agreement, for
purposes of determining compliance with the conditions specified in this Section 3, each Lender
that has signed this Third Amendment shall be deemed to have consented to, approved or accepted
or to be satisfied with, each document or other matter required under this Section 3 to be consented
to or approved by or acceptable or satisfactory to a Lender unless the Agent shall have received
notice from such Lender prior to the Third Amendment Effective Date specifying its objection
thereto.  All documents executed or submitted pursuant to this Section 3 by and on behalf of the
Borrowers shall be in form and substance reasonably satisfactory to the Agent and its counsel.  The
Agent shall notify the Borrowers and the Lenders of the Third Amendment Effective Date, and
such notice shall be conclusive and binding.
4. New Lenders.  Each New Lender hereby joins in, becomes a party to, and agrees
to comply with and be bound by the terms and conditions of the Amended Credit Agreement as a
Lender thereunder and under each and every other Loan Document to which any Lender is required
to be bound by the Amended Credit Agreement, to the same extent as if such New Lender were an
original signatory thereto.  Each New Lender hereby appoints and authorizes the Agent to take
such  action  as  the  Agent  on  its  behalf  and  to  exercise  such  powers  and  discretion  under  the
Amended Credit Agreement as are delegated to the Agent by the terms thereof, together with such 

	
	5
powers  and  discretion  as  are  reasonably  incidental  thereto.    Each  New  Lender  represents  and
warrants that (a) it has full power and authority, and has taken all action necessary, to execute and
deliver  this  Third  Amendment,  to  consummate  the  transactions  contemplated  hereby  and  to
become a Lender under the Amended Credit Agreement, (b) it has received a copy of the Amended
Credit Agreement and copies of the most recent financial statements delivered pursuant to Section
6.01  of  the  Credit  Agreement,  and  such  other  documents  and  information  as  it  has  deemed
appropriate to make its own credit analysis and decision to enter into this Third Amendment and
to become a Lender on the basis of which it has made such analysis and decision independently
and  without  reliance  on  the  Agent  or  any  other  Lender,  and  (c)  from  and  after  the  Third
Amendment Effective Date, it shall be a party to and be bound by the provisions of the Amended
Credit Agreement and the other Loan Documents and have the rights and obligations of a Lender
thereunder.
5. Reference to and Effect on Credit Agreement and Loan Documents.
(a) On and after the Third Amendment Effective Date, (x) each reference in the
Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import referring to
the Credit Agreement and (y) all references to the “Credit Agreement” in any other document or
instrument,  agreement  or  writing,  in  each  case,  will  mean  and  be  a  reference  to  the  Credit
Agreement, as amended by this Third Amendment (i.e., the Amended Credit Agreement).
(b) The  Credit  Agreement  and  each  of  the  other  Loan  Documents,  as
specifically amended by this Third Amendment are and will continue to be in full force and effect
and are hereby in all respects ratified and confirmed and each Borrower reaffirms its obligations
under the Loan Documents to which it is party.
(c) The Borrowers hereby extend the Liens securing the Obligations until the
Obligations have been Paid in Full, and agree that the amendments and waivers herein contained
shall in no manner affect or impair the Obligations or the Liens securing payment and performance
thereof, all of which are ratified and confirmed.
(d) The execution, delivery and effectiveness of this Third Amendment will
not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any
Lender or the Agent under any of the Loan Documents, nor constitute a waiver of any provision
of any of the Loan Documents or serve to effect a novation of the Obligations, and the failure of
the Lenders at any time or times hereafter to require strict performance by the Borrowers of any
provision thereof shall not waive, affect or diminish any right of the Lenders to thereafter demand
strict compliance therewith.  The Agent and the Lenders hereby reserve all rights granted under
the Amended Credit Agreement, the other Loan Documents, this Third Amendment and any other
contract or instrument between the Borrowers and the Lenders.
(e) On and after the Third Amendment Effective Date, this Third Amendment
will for all purposes constitute a Loan Document.
6. Counterparts.  This Third Amendment may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original, but
all  of  which  when  taken  together  shall  constitute  a  single  contract.    Delivery  of  an  executed 

	
	6
counterpart  of  a  signature  page  of  this  Third  Amendment  by  telecopy  or  other  electronic
transmission  shall  be  effective  as  delivery  of  a  manually  executed  counterpart  of  this  Third
Amendment.
7. Severability.  Any provision of this Third Amendment held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of  the  remaining  provisions  hereof;  and  the  invalidity  of  a  particular  provision  in  a  particular
jurisdiction shall not invalidate such provision in any other jurisdiction.
8. Headings.  Section headings used herein are for convenience of reference only, are
not  part  of  this  Third  Amendment  and  shall  not  affect  the  construction  of,  or  be  taken  into
consideration in interpreting, this Third Amendment.
9. Review and Construction of Documents.  Each Borrower hereby acknowledges,
and represents and warrants to the Agent and the Lenders, that  (a) such Borrower has had the
opportunity to consult with legal counsel of its own choice and has been afforded an opportunity
to review this Third Amendment with its legal counsel, (b) such Borrower has reviewed this Third
Amendment  and  fully  understands  the  effects  thereof  and  all  terms  and  provisions  contained
herein, (c) such Borrower has executed this Third Amendment of its own free will and volition,
and (d) this Third Amendment shall be construed as if jointly drafted by the Borrowers and the
Lenders.
10. Arms-Length/Good Faith.  This Third Amendment has been negotiated at arms-
length and in good faith by the parties hereto.
11. Fees  and  Expenses.    As  provided  in  Section  10.04  of  the  Amended  Credit
Agreement and subject to the limitations expressly set forth therein, the Borrowers hereby agree
to pay all reasonable and documented out-of-pocket fees, costs and expenses incurred by the Agent
in connection with the negotiation, preparation, and execution of this Third Amendment and all
related documents (including the reasonable fees and expenses of a single outside counsel to the
Agent).
12. Successors and Assigns.  This Third Amendment is binding upon and shall inure
to the benefit of the Credit Parties and the Borrowers and their respective successors and assigns.
13. Effect of Consent.  No consent or waiver, express or implied, by the Agent to or
for any breach of or deviation from any covenant, condition or duty by the Borrowers shall be
deemed a consent or waiver to or of any other breach of the same or any other covenant, condition
or duty.
14. Governing Law; Jurisdiction.
(a) THIS  THIRD  AMENDMENT  SHALL  BE  GOVERNED  BY,  AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW
YORK. 

	
	7
(b) Each of the parties hereto agrees that any suit for the enforcement of this
Third Amendment may be brought in any New York state or federal court sitting in the Borough
of Manhattan in New York City and consents to the non-exclusive jurisdiction of such courts.
Each of the parties hereto hereby waives any objection which they may now or hereafter have to
the venue of any such suit or any such court or that such suit is brought in an inconvenient forum.
15. Waiver  of  Jury  Trial.    EACH  PARTY  HERETO  HEREBY  IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL  BY JURY  IN ANY  LEGAL PROCEEDING  DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS THIRD AMENDMENT OR ANY
OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY  (WHETHER  BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER  THEORY).
EACH  PARTY  HERETO  (A) CERTIFIES  THAT  NO  REPRESENTATIVE,  AGENT  OR
ATTORNEY  OF  ANY  OTHER  PERSON  HAS  REPRESENTED,  EXPRESSLY  OR
OTHERWISE,  THAT  SUCH  OTHER  PERSON  WOULD  NOT,  IN  THE  EVENT  OF
LITIGATION,  SEEK  TO  ENFORCE  THE  FOREGOING  WAIVER  AND
(B) ACKNOWLEDGES  THAT  IT  AND  THE  OTHER  PARTIES  HERETO  HAVE  BEEN
INDUCED TO ENTER INTO THIS THIRD AMENDMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
[SIGNATURES APPEAR ON FOLLOWING PAGES] 

	
	[Dillard’s - Amendment No. 3 Signature Page]
IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized,
have executed this Third Amendment as of the day and year first above written.
PARENT BORROWER:
DILLARD’S, INC.
By:  /s/ Alex Dillard
Name: Alex Dillard
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
SUBSIDIARY BORROWERS:
600 CARNAHAN DRIVE OPERATIONS, LLC
By:  /s/ Chris Johnson
Name: Chris Johnson
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
600 CARNAHAN DRIVE PROPERTY, LLC
By:  /s/ Chris Johnson
Name: Chris Johnson
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
BTK DEVELOPMENT, L.L.C.
By:  /s/ Jim Northup
Name: Jim Northup
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
CONDEV NEVADA, INC.
By:  /s/ Mike Dillard
Name: Mike Dillard
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
CONSTRUCTION DEVELOPERS, LLC
By:  /s/ Bill Dillard, III
Name: Bill Dillard, III
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD INTERNATIONAL, LLC
By:  /s/ Dean Worley
Name: Dean Worley
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD INVESTMENT CO. INC.
By:  /s/ Michael Draper
Name: Michael Draper
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD STORE SERVICES, INC.
By:  /s/ Leslie Argo
Name: Leslie Argo
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD TENNESSEE OPERATING LIMITED
PARTNERSHIP
By:  /s/ Donna Moye
Name: Donna Moye
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD TEXAS CENTRAL, LLC
By:  /s/ Brett Gunn
Name: Brett Gunn
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD TEXAS EAST, LLC
By:  /s/ Jennifer McKindsey
Name: Jennifer McKindsey
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD TEXAS FOUR-POINT, LLC
By:  /s/ Drue Matheny
Name: Drue Matheny
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD TEXAS SOUTH, LLC
By:  /s/ Michael Draper
Name: Michael Draper
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD TEXAS, LLC
By:  /s/ Drue Matheny
Name: Drue Matheny
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD’S UTAH, INC.
By:  /s/ Dean Worley
Name: Dean Worley
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DILLARD’S DOLLARS, INC.
By:  /s/ Tom Bolin
Name: Tom Bolin
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
D-SERF COMPANY, LLC
By:  /s/ Jim Northup
Name: Jim Northup
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DSS NEIL OPERATIONS, LLC
By:  /s/ Armando Gonzalez
Name: Armando Gonzalez
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
DSS UNITER, LLC
By:  /s/ Julie Taylor
Name: Julie Taylor
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
FORT WORTH BORROWER LLC
By:  /s/ Chris Johnson
Name: /s/ Chris Johnson
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
FREMAUX HOLDINGS, LLC
By:  /s/ Amy Carrasquillo
Name: Amy Carrasquillo
Title:  Vice President, Treasurer and
Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
GAK GP, LLC
By:  /s/ Kim Smith
Name: Kim Smith
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
GAK INVESTCO, LLC
By:  /s/ Kim Smith
Name: Kim Smith
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE GAK, LP
By:  /s/ Kim Smith
Name: Kim Smith
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE INVESTCO, LLC
By:  /s/ Kay White
Name: Kay White
Title:  Vice President and Treasurer 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE LANCOMS, LP
By:  /s/ Brant Musgrave
Name: Brant Musgrave
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE LOUISIANA, LLC
By:  /s/ Brad Baker
Name: Brad Baker
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE SALVA, LP
By:  /s/ Amy Carrasquillo
Name: Amy Carrasquillo
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE WEST MAIN, LP
By:  /s/ Bobby Barrett
Name: Bobby Barrett
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
LANCOMS GP, LLC
By:  /s/ Brant Musgrave
Name: Brant Musgrave
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
LITTLE ROCK BORROWER LLC
By:  /s/ Chris Johnson
Name: Chris Johnson
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
CALIFORNIA DSS, INC.
By:  /s/ Alex Dillard
Name: Alex Dillard
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
PULASKI REALTY COMPANY
By:  /s/ Chris Johnson
Name: Chris Johnson
Title:  Vice President and Assistant
Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
SALVA GP, LLC
By:  /s/ Amy Carrasquillo
Name: Amy Carrasquillo
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
THE HIGBEE COMPANY, LLC
By:  /s/ Jim Northup
Name: Jim Northup
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
TNLP INVESTCO, LLC
By:  /s/ Donna Moye
Name: Donna Moye
Title:  President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
U.S. ALPHA, INC.
By:  /s/ Mark Galvan
Name: Mark Galvan
Title:  President and Assistant Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
WEST MAIN GP, LLC
By:  /s/ Bobby Barrett
Name: Bobby Barrett
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
HIGBEE KYG, LP
By:  /s/ Kim Smith
Name: Kim Smith
Title:  Vice President and Secretary 

	
	[Dillard’s - Amendment No. 3 Signature Page]
JPMORGAN CHASE BANK, N.A., individually
and as Administrative Agent, Collateral Agent, a
Lender and an Issuing Lender
By:  /s/ Kody J. Nerios
Name: Kody J. Nerios
Title:  Authorized Officer 

	
	[Dillard’s - Amendment No. 3 Signature Page]
PNC BANK, NATIONAL ASSOCIATION, as a
Lender
By:  /s/ Joseph F. Nemia
Name: Joseph F. Nemia
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
REGIONS BANK, as a Lender
By:  /s/ Ankur Shah
Name: Ankur Shah
Title:  Managing Director 

	
	[Dillard’s - Amendment No. 3 Signature Page]
TRUIST BANK, as a Lender
By:  /s/ Stephen D. Metts
Name: Stephen D. Metts
Title:  Director 

	
	[Dillard’s - Amendment No. 3 Signature Page]
BANK OF AMERICA, N.A., as a Lender
By:  /s/ Matthew Potter
Name: Matthew Potter
Title:  Senior Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
CITIZENS BANK, N.A., as a Lender
By:  /s/ Madison Burns
Name: Madison Burns
Title:  Assistant Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
TD BANK, N.A., as a Lender
By:  /s/ Donald J. Cavanagh
Name: Donald J. Cavanagh
Title:  Vice President 

	
	[Dillard’s - Amendment No. 3 Signature Page]
WELLS FARGO BANK, N.A., as a Lender
By:  /s/ Joseph Burt
Name: Joseph Burt
Title:  Director 

	
	[Dillard’s - Amendment No. 3 Signature Page]
TEXAS CAPITAL BANK, NATIONAL
ASSOCIATION, as a Lender
By:  /s/ Jerra Hayden
Name: Jerra Hayden
Title:  SVP 

	
	[Dillard’s - Amendment No. 3 Signature Page]
CITIBANK, N.A., as a Lender
By:  /s/ Brendan Mackay
Name: Brendan Mackay
Title:  Vice President & Director 

	
	[Dillard’s - Amendment No. 3 Signature Page]
SIMMONS BANK, as a Lender
By:  /s/ S. Scott Heady
Name: S. Scott Heady
Title:  S.V.P. 

	
	ANNEX I
AMENDED CREDIT AGREEMENT
[See attached] 

	
	EXECUTION VERSION
US 6985404v.12 US 7895685v.13 CHA715/20025
FIVE-YEAR CREDIT AGREEMENT
dated as of
May 13, 2015,
as amended as of August 9, 2017 and , as of April 30, 2020 and as of April 28, 2021

among

DILLARD’S, INC.,
as Parent Borrower for the Borrowers,

The Other BORROWERS Party Hereto,

The LENDERS Party Hereto,

and

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and as Collateral Agent

JPMORGAN CHASE BANK, N.A., WELLS FARGO BANK, N.A.,REGIONS CAPITAL
MARKETSandCITIZENS BANK, N.A.,as Second Amendment Arrangers
WELLS FARGO BANK, N.A. andREGIONS CAPITAL MARKETS,as Second
Amendment Syndication Agents
CITIZENS BANK, N.A., as Second Amendment Documentation
Agent___________________________

JPMORGAN CHASE BANK, N.A.,
PNC CAPITAL MARKETS LLC,
REGIONS CAPITAL MARKETS,
and
TRUIST SECURITIES, INC.,
as Third Amendment Arrangers

BANK OF AMERICA, N.A.,
CITIZENS BANK, N.A.,
and
TD BANK, N.A.,
as Third Amendment Syndication Agents

 

	
	
 i

TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS ........................................................................................................... 1
Section 1.01 Defined Terms ............................................................................................ 1
Section 1.02 Terms Generally.................................................................................... 4346
Section 1.03 Accounting Terms; GAAP .................................................................... 4447
Section 1.04 Classification of Loans, Commitments and Borrowings ...................... 4447
Section 1.05 Status of Obligations ............................................................................. 4447
Section 1.06 Divisions ............................................................................................... 4448
Section 1.07 Interest Rates; LIBOR Notification ...................................................... 4548
Section 1.08 Letters of Credit ........................................................................................ 48
ARTICLE II AMOUNT AND TERMS OF CREDIT .............................................................. 4549
Section 2.01 Commitment of the Lenders ................................................................. 4549
Section 2.02 Reserves; Changes to Reserves ............................................................. 4650
Section 2.03 Making of Loans ................................................................................... 4650
Section 2.04 Overadvances ........................................................................................ 4851
Section 2.05 Swingline Loans.................................................................................... 4852
Section 2.06 Letters of Credit .................................................................................... 5053
Section 2.07 Settlements Amongst Lenders .............................................................. 5761
Section 2.08 Notes; Repayment of Loans .................................................................. 5862
Section 2.09 Termination  or  Reduction  of  Commitments;  Increase  of
Commitments ........................................................................................ 5962
Section 2.10 Letter of Credit Fees ............................................................................. 6165
Section 2.11 Certain Fees .......................................................................................... 6266
Section 2.12 Unused Commitment Fee ..................................................................... 6266
Section 2.13 Interest on Loans ................................................................................... 6266
Section 2.14 Nature of Fees ....................................................................................... 6367
Section 2.15 [Reserved] ............................................................................................. 6367
Section 2.16 Alternate Rate of Interest ...................................................................... 6367
Section 2.17 Conversion and Continuation of Loans ................................................ 6570
Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Setoffs.............. 6671
Section 2.19 [Reserved] ............................................................................................. 6974
Section 2.20 Extension Offers ................................................................................... 6974
Section 2.21 Mandatory Prepayment; Cash Collateral .............................................. 7377
Section 2.22 Optional Prepayment of Loans; Reimbursement of Lenders ................ 7478
Section 2.23 Maintenance of Loan Account; Statements of Account ....................... 7580
Section 2.24 Cash Receipts ........................................................................................ 7680
Section 2.25 [Reserved] ............................................................................................. 7883
Section 2.26 Increased Costs ..................................................................................... 7983
Section 2.27 Change in Legality ................................................................................ 8085
Section 2.28 Withholding of Taxes; Gross-Up .......................................................... 8085
Section 2.29 [Reserved] ............................................................................................. 8489
Section 2.30 Mitigation Obligations; Replacement of Lenders ................................. 8489 

	
	
  ii

Section 2.31 Defaulting Lenders................................................................................ 8590
Section 2.32 Hedging Agreements and other Bank Products .................................... 8792
ARTICLE III LOAN GUARANTY ......................................................................................... 8792
Section 3.01 Guaranty ................................................................................................ 8792
Section 3.02 Guaranty of Payment ............................................................................ 8893
Section 3.03 No Discharge or Diminishment of Loan Guaranty ............................... 8893
Section 3.04 Defenses Waived .................................................................................. 8994
Section 3.05 Rights of Subrogation ........................................................................... 8994
Section 3.06 Reinstatement; Stay of Acceleration ..................................................... 9094
Section 3.07 Information ............................................................................................... 90
Section 3.07 Information ............................................................................................... 95
Section 3.08 Taxes ..................................................................................................... 9095
Section 3.09 Maximum Liability ............................................................................... 9095
Section 3.10 Contribution .......................................................................................... 9095
Section 3.11 Liability Cumulative ............................................................................. 9196
Section 3.12 Keepwell ............................................................................................... 9196
Section 3.13 Release of Guarantees ........................................................................... 9296
ARTICLE IV REPRESENTATIONS AND WARRANTIES ................................................. 9297
Section 4.01 Organization; Powers ............................................................................ 9297
Section 4.02 Authorization; Enforceability ............................................................... 9297
Section 4.03 Governmental Approvals; No Conflicts ............................................... 9297
Section 4.04 Financial Condition ............................................................................... 9398
Section 4.05 Properties .............................................................................................. 9398
Section 4.06 Litigation and Environmental Matters .................................................. 9398
Section 4.07 Compliance with Laws and Agreements .............................................. 9499
Section 4.08 Investment Company Status ................................................................. 9499
Section 4.09 Taxes ......................................................................................................... 94
Section 4.10ERISA944.09 ................................................................................................... Taxes
99
Section 4.11Disclosure944.10 .......................................................................................... ERISA
99
Section 4.12Subsidiaries954.11 ................................................................................. Disclosure
99
Section 4.12 Subsidiaries ............................................................................................. 100
Section 4.13 Insurance ............................................................................................. 95100
Section 4.14 Security Documents ............................................................................ 95100
Section 4.15 Federal Reserve Regulations............................................................... 95100
Section 4.16 Solvency .............................................................................................. 95100
Section 4.17 Use of Proceeds................................................................................... 95100
Section 4.18 Anti-Corruption Laws and Sanctions.................................................. 96100
Section 4.19 Affected Financial Institutions ............................................................ 96101
Section 4.20 Plan Assets; Prohibited Transactions .................................................. 96101
ARTICLE V CONDITIONS .................................................................................................. 96101
Section 5.01 Second Amendment Effective Date .................................................... 96101 

	
	
  iii

Section 5.02 Conditions Precedent to Each Loan and Each Letter of Credit .......... 99103
ARTICLE VI AFFIRMATIVE COVENANTS ................................................................... 100104
Section 6.01 Financial Statements and Other Information .................................... 100104
Section 6.02 Notices of Material Events................................................................ 102107
Section 6.03 Information Regarding Collateral ..................................................... 103107
Section 6.04 Existence; Conduct of Business ........................................................ 103108
Section 6.05 Payment of Obligations..................................................................... 103108
Section 6.06 Maintenance of Properties ................................................................ 103108
Section 6.07 Insurance ........................................................................................... 104108
Section 6.08 Casualty and Condemnation ............................................................. 104109
Section 6.09 Books and Records; Inspection and Audit Rights; Appraisals ......... 104109
Section 6.10 Compliance with Laws ..................................................................... 105110
Section 6.11 Use of Proceeds and Letters of Credit .............................................. 105110
Section 6.12 Accuracy of Information ................................................................... 106110
Section 6.13 Additional Borrowers; Further Assurances ...................................... 106111
Section 6.14 Post-Closing Obligations ........................................................................ 107
ARTICLE VII NEGATIVE COVENANTS ......................................................................... 108112
Section 7.01 Indebtedness and Other Obligations ................................................. 108112
Section 7.02 Liens .................................................................................................. 109113
Section 7.03 Fundamental Changes ....................................................................... 110114
Section 7.04 Restrictive Agreements ..................................................................... 111116
Section 7.05 Asset Sales ........................................................................................ 112116
Section 7.06 Restricted Payments; Certain Payments of Indebtedness ................. 114118
Section 7.07 Transactions with Affiliates .............................................................. 115119
Section 7.08 Fixed Charge Coverage Ratio ........................................................... 116119
Section 7.09 Subsidiaries ....................................................................................... 116120
Section 7.10 Investments, Loans, Advances, Guarantees and Acquisitions .......... 116120
ARTICLE VIII EVENTS OF DEFAULT ............................................................................ 117121
Section 8.01 Events of Default .............................................................................. 117121
Section 8.02 When Continuing .............................................................................. 121124
Section 8.03 Remedies on Default ......................................................................... 121125
ARTICLE IX THE AGENT ................................................................................................. 121125
Section 9.01 Authorization and Action .................................................................. 121125
Section 9.02 Administrative Agent’s  Reliance, IndemnificationLimitation  of
Liability, Etc. ................................................................................... .124127
Section 9.03 Posting of Communications .............................................................. 125129
Section 9.04 The Agent Individually ..................................................................... 127130
Section 9.05 Successor Agent ................................................................................ 127130
Section 9.06 Acknowledgment of Lenders and Issuing Lender ............................ 128132
Section 9.07 Collateral Matters.............................................................................. 129133
Section 9.08 Credit Bidding ................................................................................... 130134
Section 9.09 Certain ERISA Matters ..................................................................... 131135
Section 9.10 Flood Laws........................................................................................ 132136 

	
	
 iv

Section 9.11 Acknowledgements with Respect to Payments. ..................................... 136
ARTICLE X MISCELLANEOUS ....................................................................................... 132137
Section 10.01 Notices .............................................................................................. 132137
Section 10.02 Waivers; Amendments ...................................................................... 134139
Section 10.03 Special Amendment Rules ................................................................ 136141
Section 10.04 Expenses; Limitation  of  Liability; Indemnity; Damage
Waiver138Etc ......................................................................................... 143
Section 10.05 Designation of Parent Borrower as Borrowers’ Agent ..................... 140145
Section 10.06 Successors and Assigns..................................................................... 141146
Section 10.07 Survival ............................................................................................. 144149
Section 10.08 Counterparts; Integration; Effectiveness ........................................... 144149
Section 10.09 Severability ....................................................................................... 145151
Section 10.10 Right of Setoff................................................................................... 145151
Section 10.11 Governing Law; Jurisdiction; Consent to Service of Process ........... 145151
Section 10.12 WAIVER OF JURY TRIAL ............................................................. 146152
Section 10.13 Headings ........................................................................................... 146152
Section 10.14 Interest Rate Limitation .................................................................... 146152
Section 10.15 Additional Waivers ........................................................................... 147153
Section 10.16 No Fiduciary Duty, etc148Etc ................................................................ 154
Section 10.17 Confidentiality .................................................................................. 149155
Section 10.18 Non-Public Information .................................................................... 149155
Section 10.19 USA PATRIOT Act .......................................................................... 150156
Section 10.20 Specified Subsidiaries ....................................................................... 150156
Section 10.21 Marketing Consent ............................................................................ 150156
Section 10.22 Acknowledgement  and  Consent  to  Bail-In  of  Affected  Financial
Institutions......................................................................................... 150156
Section 10.23 Acknowledgement Regarding Any Supported QFCs ....................... 151157
Section 10.24 Several Obligations; Violation of Law ............................................. 152157
Section 10.25 Disclosure ......................................................................................... 152158
Section 10.26 Appointment for Perfection .............................................................. 152158
Section 10.27 Joint and Several ..................................................................................... 158

  

	
	
 v

EXHIBITS
A  Form of Assignment and Assumption
B-1  Form of Revolving Notes
B-2  Form of Swingline Note
C  [Reserved]
D  Form of Borrowing Base Certificate
E  Form of Breakage Costs Certificate
F-1  U.S. Tax Certificate (For Foreign Lenders that are not Partnerships for U.S. Federal Income
Tax Purposes)
F-2  U.S. Tax Certificate (For Foreign Participants that are not Partnerships for U.S. Federal
Income Tax Purposes)
F-3  U.S. Tax Certificate (For Foreign Participants that are Partnerships for U.S. Federal Income
Tax Purposes)
F-4  U.S. Tax Certificate (For Foreign Lenders that are Partnerships for U.S. Federal Income
Tax Purposes)
G  Form of Borrowing Request
  

	
	
 vi

SCHEDULES
1.1    Lenders and Commitments
1.2    Bonds
2.24(a)   DDAs
2.24(b)   Credit Card Arrangements
4.05(c)(i)   Title to Properties; Real Estate Owned
4.05(c)(ii)   Leased Properties
4.06    Disclosed Matters
4.12    Subsidiaries
4.13    Insurance
7.01    Indebtedness
7.02    Liens
7.04    Restrictive Agreements
7.10    Investments

 

	
	
 1

FIVE-YEAR CREDIT AGREEMENT
FIVE-YEAR CREDIT AGREEMENT dated as of May 13, 2015, as amended by that
certain Amendment No. 1 to Credit Agreement dated as of August 9, 2017 and , by that certain
Amendment No. 2 to Credit Agreement dated as of April 30, 2020 and by that certain Amendment
No. 3 to Credit Agreement dated as of April 28, 2021 (this “Agreement”), among DILLARD’S,
INC., a corporation organized under the laws of the State of Delaware, as Parent Borrower, the
other BORROWERS from time to time party hereto, the LENDERS from time to time party
hereto and JPMORGAN CHASE BANK, N.A., a national banking association, as Administrative
Agent and as Collateral Agent for the Lenders.
The Borrowers have requested that the Lenders make extensions of credit (by means of
loans and letters of credit) to the Borrowers in an original aggregate principal or face amount not
exceeding $800,000,000 at any one time outstanding in Dollars.  The Lenders are prepared to
extend such credit upon the terms and conditions hereof, and, accordingly, the parties hereto agree
as follows:
ARTICLE I

DEFINITIONS
Section 1.01 Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:
“ACH” shall mean automated clearing house transfers.
“Activation Period” means any period commencing (a) on the first date on which an a
Specified Event of Default has occurred and is continuing or (b) when Excess Availability is less
than $150,000,000 120,000,000 for a period of three consecutive Business Days, and, in each case,
continuing until the date upon which both (i) Excess Availability has been equal to or greater than
$150,000,000 120,000,000 at all times during the preceding thirty (30) consecutive day period and
(ii) no Specified Event of Default has occurred during such thirty (30) consecutive day period.
“Adjusted LIBO Rate” means, for the Interest Period for with respect to any Eurocurrency
Borrowing for any Interest Period or for any Borrowing of Base Rate Loans, an interest rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such
Interest Period multiplied by (b) the Statutory Reserve Rate for such Interest Period.
“Administrative Agent” means JPMorgan, in its capacity as administrative agent for the
Lenders hereunder.
“Administrative  Questionnaire”  means  an  Administrative  Questionnaire  in  a  form
supplied by the Agent.
“Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK
Financial Institution. 

	
	
 2

“Affiliate”  means,  with  respect  to  a  specified  Person,  another  Person  that  directly,  or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the specified Person.
“Agent” means JPMorgan, in its capacity as Administrative Agent and Collateral Agent
for  the  Lenders  hereunder,  and  any  successors  and  assigns  pursuant  to Section  9.05  of  this
Agreement.
“Agent  Indemnitee-Related  Person”  has  the  meaning  assigned  to  it  in Section
10.04(c10.04(d).
“Agreement” shall have the meaning set forth in the preamble.
“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the
Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% per
annum and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day
is not a Business Day, the immediately preceding Business Day) plus 1%.  For purposes of clause
(c) above; provided that, for the purpose of this definition, the Adjusted LIBO Rate on for any day
shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one
month Interest Period, the Interpolated Rate) at approximately 11:00 a.m., London time, on such
day; provided that if such rate shall be less than 2.00%, such rate shall be deemed to be 2.00%.
Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the
Adjusted LIBO Rate shall be effective from and including the effective date of such change in the
Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, as the case may be.  respectively.  If the
Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.16 (for the
avoidance  of  doubt,  only  until  the  Benchmark  Replacement  has  been  determined  pursuant  to
Section 2.16(c)), then the Alternate Base Rate shall be the greater of clause (a) and (b) above and
shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the
Alternate Base Rate as determined pursuant to the foregoing would be less than 1.00%, such rate
shall be deemed to be 1.00% for purposes of this Agreement.
“Ancillary Document” has the meaning assigned to it in Section 10.08.
“Anti-Corruption  Laws”  means  all  laws,  rules,  and  regulations  of  any  jurisdiction
applicable to any Borrower or any of its Subsidiaries from time to time concerning or relating to
bribery, corruption or money laundering.
“Applicable Parties” has the meaning assigned to it in Section 9.03(c).
“Applicable Rate” means, on any day with respect to Base Rate Loans or Eurocurrency
Loans, the applicable per annum percentage set forth in the table shown below:
“Applicable Rate” means, for any day, with respect to any Loan, the applicable rate per
annum set forth below under the caption “Base Rate Spread” or “Eurocurrency Spread”, as the
case may be, based upon the Average Quarterly Availability during the most recently ended fiscal
quarter of the Parent Borrower:
Base Rate Loans Eurocurrency Loans 

	
	
 3

0.750% 1.750%

Average Quarterly
Availability
Base Rate Spread Eurocurrency Spread
Category 1
Less than 50% of the Total
Commitment
0.750% 1.750%
Category 2
Greater than or equal to 50%
of the Total Commitment
0.500% 1.500%

For purposes of the foregoing, each change in the Applicable Rate resulting from a change
in  Average  Quarterly  Availability  shall  be  effective  during  the  period  commencing  on  and
including the first day of each fiscal quarter of the Parent Borrower and ending on the last day of
such fiscal quarter, it being understood and agreed that, for purposes of determining the Applicable
Rate  on  the  first  day  of  any  fiscal  quarter  of  the  Parent  Borrower,  the  Average  Quarterly
Availability during the most recently ended fiscal quarter of the Parent Borrower shall be used.
Notwithstanding  the  foregoing,  the  Average  Quarterly  Availability  shall  be  deemed  to  be  in
Category 1 at the option of the Agent or at the request of the Required Lenders if the Borrowers
fail to deliver any Borrowing Base Certificate or related information required to be delivered by
them  pursuant  to Section  6.01,  during  the  period  from  the  expiration  of  the  time  for  delivery
thereof until each such Borrowing Base Certificate and related information is so delivered.
If  at  any  time  the  Agent  determines  that  any  Borrowing  Base  Certificate  or  related
information based on which Excess Availability and/or such Average Quarterly Availability and
the corresponding Applicable Rate was determined, as applicable, was incorrect (whether based
on a restatement, fraud or otherwise), the Borrowers shall be required to retroactively pay any
additional amount that the Borrowers would have been required to pay if such Borrowing Base
Certificate  or  related  information  based  upon  which  Excess  Availability  and/or  such  Average
Quarterly Availability was determined had been accurate at the time it was delivered.
As of the Third Amendment Effective Date, the Applicable Rate is the applicable rates per
annum set forth above in Category 2.
The Applicable Rate shall be applied by the Agent, and such application shall be conclusive
absent manifest error.
“Appraised Value” means the amount which represents the net percentage of the Cost of
the Borrowers’ Inventory realizable in the event of a liquidation of such Inventory determined
from a net orderly liquidation value appraisal of such Inventory undertaken from time to time by
an independent appraiser satisfactory to the Agent.
“Approved Electronic Platform” has the meaning provided therefor in Section 9.03(a). 

	
	
 4

“Approved  Fund”  means  any  Person  (other  than  a  natural  person)  that  is  engaged  in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate
of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Arranger” means each of the Effective Date Arrangers, the First Amendment Arrangers
and , the Second Amendment Arrangers and the Third Amendment Arrangers.
“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of each party whose consent is required by
Section 10.06), and accepted by the Agent, in the form of Exhibit A or any other form (including
electronic records generated by the use of an electronic platform) approved by the Agent.
“Auto-Renewal Letter of Credit” means a Letter of Credit with an initial expiry date of
one year or less after the date of its issuance that has automatic renewal provisions.
“Availability Reserves” means the sum of (i) such reserves as the Agent from time to time
determines  in  its  Permitted  Discretion  as  being  appropriate  to reflect  the  impediments  to  the
Agent’s ability to realize upon the Collateral and (ii) with respect to Specified Bank Products then
provided or outstanding, the Bank Product Reserve in effect at such time; provided that reserves
with  respect  to  Specified  Bank  Products  then  provided  or  outstanding  shall  not  exceed  the
Specified Bank Product Amount.  Without limiting the generality of the foregoing, Availability
Reserves may include (but are not limited to) reserves based on (a) rent; (b) Customer Credit
Liabilities; (c) customs, duties, and other costs to release Inventory which is being imported into
the  United  States;  and  (d)  outstanding  taxes  and  other  governmental  charges,  including,  ad
valorem, real estate, personal property, and other taxes which might have priority over the interests
of the Agent in the Collateral and either which have not been paid when due or which the Agent,
in its Permitted Discretion, believes may impede the Agent’s ability to realize upon the Collateral.
“Available Tenor” means, as of any date of determination and with respect to the then-
current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest
calculated with reference to such Benchmark, as applicable, that is or may be used for determining
the length of an Interest Period pursuant to this Agreement as of such date and not including, for
the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of
“Interest Period” pursuant to clause (g) of Section 2.16.
“Average Quarterly Availability” means, for any fiscal quarter of the Parent Borrower,
an amount equal to the average daily Excess Availability during such fiscal quarter, as determined
by the Agent’s system of records; provided that in order to determine Excess Availability on any
day  for  purposes  of  this  definition,  the  Borrowing  Base  for  such  day  shall  be  determined  by
reference to the most recent Borrowing Base Certificate delivered to the Agent pursuant to Section
6.01 as of such day.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the
applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation” means, (a) with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European 

	
	
 5

Union, the implementing law, rule, regulation or requirement for such EEA Member Country from
time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the
United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time)
and any other law, regulation or rule applicable in the United Kingdom relating to the resolution
of unsound or failing banks, investment firms or other financial institutions or their affiliates (other
than through liquidation, administration or other insolvency proceedings).
“Bank Product Obligations” means any and all obligations of the Borrowers and their
Subsidiaries, including, without limitation, Hedging Obligations, whether absolute or contingent
and howsoever and whensoever created, arising, evidenced or acquired (including all renewals,
extensions and modifications thereof and substitutions therefor) in connection with Bank Products
owed to any Person that (a) at the time it enters into a Bank Product is a Lender or any of its
Affiliates or (b) at the time it (or its Affiliate) becomes a Lender, is a party to a Bank Product with
any Borrower or any of its Subsidiaries, in each case in its capacity as a party to such Bank Product
(even if such Person ceases to be a Lender or such Person’s Affiliate ceases to be a Lender).
“Bank Product Reserve” means, at any time, an amount equal to the sum of all Specified
Bank Product Amounts associated with all of the then outstanding Specified Bank Products or,
with respect to any particular Specified Bank Product, such lesser amount as may equal to the
actual obligation of the applicable Borrower as determined utilizing the methodology agreed to
with respect to such Specified Bank Product by the Agent with respect to Bank Products provided
by JPMorgan (or one of its Affiliates) or between the applicable Lender (or its Affiliate) and the
Parent Borrower, as applicable.  With respect to any calculation of the amounts to be included in
the Bank Product Reserve which is less than an established Specified Bank Product Amount, the
Agent shall have no obligation to determine the amount thereof.  The Parent Borrower and/or the
applicable Lender (other than JPMorgan) or its Affiliate shall provide the Agent written notice of
such lower amount and calculation thereof.  In absence of any such notice, the amount included in
the Bank Product Reserve shall equal the Specified Bank Product Amount established with respect
to the Specified Bank Product in question. Notwithstanding the foregoing, in no event can the
Bank Product Reserve exceed $25,000,00050,000,000.
“Bank  Products”  shall  mean  any  one  or  more  of  the  following  types  of  services or
facilities extended to any Borrower or any of its Subsidiaries by the Agent, any Lender, or any of
their  respective  Affiliates:  (a)  credit  cards,  including  the  Borrowers’  commercial  credit  cards,
stored value cards and purchase cards, (b) Hedging Agreements, (c) merchant processing services
and any deposit, lock box, other cash management arrangement or treasury management services
(including,  without  limitation,  controlled  disbursement,  automated  clearinghouse  transactions,
return  items,  any  direct  debit  scheme  or  arrangement,  overdrafts,  cash  pooling  services,  and
interstate depository network services), (d) foreign exchange, (e) supply chain financing, open
account services and similar trade finance services, or (f) any other product or service provided by
any such Person.
“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as
now and hereafter in effect, or any successor statute.
“Bankruptcy Event” means, with respect to any Person, when such Person becomes the
subject of a voluntary or involuntary bankruptcy or insolvency proceeding, or has had a receiver, 

	
	
 6

conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person
charged with the reorganization or liquidation of its business, appointed for it, or, in the good faith
determination of the Agent, has taken any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any such proceeding or appointment or has had any order for relief
in such proceeding entered in respect thereof, provided that a Bankruptcy Event shall not result
solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such
Person by a Governmental Authority or instrumentality thereof, unless such ownership interest
results in or provides such Person with immunity from the jurisdiction of courts within the United
States or from the enforcement of judgments or writs of attachment on its assets or permits such
Person  (or  such  Governmental  Authority  or  instrumentality),  to reject,  repudiate,  disavow  or
disaffirm any contracts or agreements made by such Person.
“Base Rate Loan” shall mean any Loan bearing interest at a rate determined by reference
to the Alternate Base Rate in accordance with the provisions of Article II.
“Benchmark Replacement” means “Benchmark” means, initially, LIBO Rate; provided
that if a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election,
as applicable, and its related Benchmark Replacement Date have occurred with respect to LIBO
Rate  or  the  then-current  Benchmark,  then  “Benchmark”  means  the  applicable  Benchmark
Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark
rate pursuant to clause (c) or clause (d) of Section 2.16.
“Benchmark Replacement” means, for any Available Tenor, the first alternative set forth
in the order below that can be determined by the Agent for the applicable Benchmark Replacement
Date:
(1) the  sum  of:  (a)  Term  SOFR  and  (b)  the  related  Benchmark  Replacement
Adjustment;
(2) the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement
Adjustment;
(3) the sum of: (a) the alternate benchmark rate (which may be a SOFR-Based Rate)
that has been selected by the Agent and the Parent Borrower as the replacement for the then-current
Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection
or recommendation of a replacement benchmark rate or the mechanism for determining such a rate
by the Relevant Governmental Body and/or (ii) any evolving or then-prevailing market convention
for determining a benchmark rate of interest as a replacement to the LIBO Rate for U.S. for the
then-current Benchmark for dollar-denominated syndicated credit facilities at such time and (b)
the related Benchmark Replacement Adjustment;
provided that, if the Benchmark Replacement as so determined would be less than 1.00%,
the Benchmark Replacement will be deemed to be 1.00% for the purposes of this Agreement;
provided  further  that  any  such  Benchmark  Replacement  shall  be  administratively  feasible  as
determined  by  the  Agent  in  its  sole  discretion. in  the  case  of  clause  (1),  such  Unadjusted
Benchmark Replacement is displayed on a screen or other information service that publishes such
rate from time to time as selected by the Agent in its reasonable discretion; provided further that, 

	
	
 7

notwithstanding anything to the contrary in this Agreement or in any other Loan Document, upon
the occurrence of a Term SOFR Transition Event, and the delivery of a Term SOFR Notice, on
the applicable Benchmark Replacement Date the “Benchmark Replacement” shall revert to and
shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement
Adjustment, as set forth in clause (1) of this definition (subject to the first proviso above).
If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would
be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes
of this Agreement and the other Loan Documents.
“Benchmark Replacement Adjustment” means, with respect to any replacement of the
then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest
Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:
(1) for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,”
the first alternative set forth in the order below that can be determined by the Agent:
(a) “Benchmark Replacement Adjustment” means the spread adjustment, or method
for calculating or determining such spread adjustment, (which may be a positive or negative value
or zero) that has been selected by the Agent and the Parent Borrower giving due consideration to
(i)  any  selection  or  recommendation  of  a  spread  adjustment,  or method  for  calculating  or
determining such spread adjustment, for the replacement of the LIBO Rate with the applicable
Unadjusted Benchmark Replacement by the Relevant Governmental Body and/or (ii) any evolving
or  then-prevailing  market  convention  for  determining  a  spread  adjustment,  or  method  for
calculating or determining such spread adjustment, for the replacement of the LIBO Rate with the
applicable  Unadjusted  Benchmark  Replacement  for U.S. dollar-denominated  syndicated  credit
facilities at such time (for the avoidance of doubt, such Benchmark Replacement Adjustment shall
not be in the form of a reduction to the Applicable Rate). as of the Reference Time such Benchmark
Replacement is first set for such Interest Period that has been selected or recommended by the
Relevant  Governmental  Body  for  the  replacement  of  such  Benchmark  with  the  applicable
Unadjusted Benchmark Replacement for the applicable Corresponding Tenor;
(b) the spread adjustment (which may be a positive or negative value or zero) as of the
Reference Time such Benchmark Replacement is first set for such Interest Period that would apply
to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective
upon an index cessation event with respect to such Benchmark for the applicable Corresponding
Tenor; and
(2) for  purposes  of  clause  (3)  of  the  definition  of  “Benchmark  Replacement,”  the
spread adjustment, or method for calculating or determining such spread adjustment, (which may
be a positive or negative value or zero) that has been selected by the Agent and the Parent Borrower
for  the  applicable  Corresponding  Tenor giving  due  consideration  to  (i)  any  selection  or
recommendation of a spread adjustment, or method for calculating or determining such spread
adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark
Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date
or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or
method  for  calculating  or  determining  such  spread  adjustment,  for  the  replacement  of such 

	
	
 8

Benchmark with  the  applicable  Unadjusted  Benchmark  Replacement  for  dollar-denominated
syndicated credit facilities;
provided that, in the case of clause (1) above, such adjustment is displayed on a screen or
other information service that publishes such Benchmark Replacement Adjustment from time to
time as selected by the Agent in its reasonable discretion.
“Benchmark  Replacement  Conforming  Changes”  means,  with  respect  to  any
Benchmark Replacement, any technical, administrative or operational changes (including changes
to  the  definition  of  “Alternate  Base  Rate,”  the  definition  of  “Business  Day,”  the  definition  of
“Interest Period,” timing and frequency of determining rates and making payments of interest and
other , timing of borrowing requests or prepayment, conversion or continuation notices, length of
lookback periods, the applicability of breakage provisions, and other technical, administrative or
operational matters)  that  the  Agent  decides  in  its  reasonable  discretion  may  be  appropriate  to
reflect  the  adoption  and  implementation  of  such  Benchmark  Replacement  and  to  permit  the
administration thereof by the Agent in a manner substantially consistent with market practice (or,
if the Agent decides that adoption of any portion of such market practice is not administratively
feasible  or  if  the  Agent  determines  that  no  market  practice  for  the  administration  of the such
Benchmark Replacement exists, in such other manner of administration as the Agent decides is
reasonably necessary in connection with the administration of this Agreement and the other Loan
Documents).
“Benchmark  Replacement  Date”  means  the earlier earliest to  occur  of  the  following
events with respect to the LIBO Ratethen-current Benchmark:
(1) (1) in  the  case  of  clause  (1)  or  (2)  of  the  definition  of  “Benchmark  Transition
Event,” the later of (a) the date of the public statement or publication of information referenced
therein and (b) the date on which the administrator of the LIBO Screen Rate such Benchmark (or
the published component used in the calculation thereof) permanently or indefinitely ceases to
provide the LIBO Screen Rate; orall Available Tenors of such Benchmark (or such component
thereof);
(2) (2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the
date of the public statement or publication of information referenced therein.;
(3) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after
the date a Term SOFR Notice is provided to the Lenders and the Parent Borrower pursuant to
Section 2.16(d); or
(4) in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date
notice of such Early Opt-in Election is provided to the Lenders, so long as the Agent has not
received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice
of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early
Opt-in Election from Lenders comprising the Required Lenders.
For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date
occurs on the same day as, but earlier than, the Reference Time in respect of any determination,
the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time 

	
	
 9

for  such  determination  and  (ii)  the  “Benchmark  Replacement  Date”  will  be  deemed  to  have
occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the
applicable event or events set forth therein with respect to all then-current Available Tenors of
such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event” means the occurrence of one or more of the following
events with respect to the LIBO Ratethen-current Benchmark:
(1) (1) a  public  statement  or  publication  of  information  by  or  on  behalf  of  the
administrator of the LIBO Screen Rate such Benchmark (or the published component used in the
calculation thereof) announcing that such administrator has ceased or will cease to provide the
LIBO  Screen  Rateall  Available  Tenors  of  such  Benchmark  (or  such  component  thereof),
permanently or indefinitely, provided that, at the time of such statement or publication, there is no
successor administrator that will continue to provide the LIBO Screen Rate; any Available Tenor
of such Benchmark (or such component thereof);
(2) (2) a public statement or publication of information by the regulatory supervisor for
the administrator of the LIBO Screen Rate, the U.S. such Benchmark (or the published component
used in the calculation thereof), the Federal Reserve SystemBoard, the NYFRB, an insolvency
official with jurisdiction over the administrator for the LIBO Screen Ratesuch Benchmark (or such
component), a resolution authority with jurisdiction over the administrator for the LIBO Screen
Rate such  Benchmark  (or  such  component) or  a  court  or  an  entity  with  similar  insolvency  or
resolution authority over the administrator for the LIBO Screen Rate, in each case such Benchmark
(or such component), which states that the administrator of the LIBO Screen Rate such Benchmark
(or such component) has ceased or will cease to provide the LIBO Screen Rate all Available Tenors
of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the
time of such statement or publication, there is no successor administrator that will continue to
provide the  LIBO  Screen  Rate;  and/or any  Available  Tenor  of  such  Benchmark  (or  such
component thereof); or
(3) (3) a public statement or publication of information by the regulatory supervisor for
the administrator of the LIBO Screen Rate such Benchmark (or the published component used in
the calculation thereof) announcing that the LIBO Screen Rate is all Available Tenors of such
Benchmark (or such component thereof) are no longer representative.
“Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition
Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark
Transition Event is a public statement or publication of information of a prospective event, the
90th day prior to the expected date of such event as of such public statement or publication of
information (or if the expected date of such prospective event is fewer than 90 days after such
statement or publication, the date of such statement or publication) and (b) in the case of an Early
Opt-in Election, the date specified by the Agent or the Required Lenders, as applicable, by notice
to the Borrower, the Agent (in the case of such notice by the Required Lenders) and the Lenders.
For  the  avoidance  of  doubt,  a  “Benchmark  Transition  Event”  will  be  deemed  to  have
occurred with respect to any Benchmark if a public statement or publication of information set 

	
	
  10

forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or
the published component used in the calculation thereof).
“Benchmark  Unavailability  Period”  means, if  a  Benchmark  Transition  Event and  its
related Benchmark Replacement Date have occurred with respect to the LIBO Rate and solely to
the extent that the LIBO Rate has not been replaced with a Benchmark Replacement, the period
the period (if any) (x) beginning at the time that such a Benchmark Replacement Date pursuant to
clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has
replaced the LIBO Rate then-current Benchmark for all purposes hereunder and under any Loan
Document in  accordance  with Section 2.16 and (y) ending at the time that a Benchmark
Replacement  has  replaced  the LIBO  Rate then-current  Benchmark for  all  purposes  hereunder
pursuant to and under any Loan Document in accordance with Section 2.16.
“Beneficial  Ownership  Certification”  means  a  certification  regarding  beneficial
ownership or control as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of
ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to
which Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of
the Plan Asset Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the
Code) the assets of any such “employee benefit plan” or “plan”.
“BHC Act Affiliate” means, as to any Person, an “affiliate” (as such term is defined under,
and interpreted in accordance with, 12 U.S.C. 1841(k)) of such Person.
“Blocked Account Agreements” has the meaning set forth in Section 2.24(c).
“Blocked Account Banks” shall mean the banks with whom the Borrowers have entered
into  Blocked  Account  Agreements,  including,  with  respect  to  the  Parent  Borrower  Blocked
Account, JPMorgan (or such other bank which has entered into a Blocked Account Agreement
with respect to the Parent Borrower Blocked Account).
“Blocked Accounts” shall have the meaning set forth in Section 2.24(c).
“Board” means the Board of Governors of the Federal Reserve System of the United States
of America.
“Bonds” means those obligations of the Parent Borrower for borrowed money under those
certain indentures described on Schedule 1.2 hereto.
“Borrowers”  means  collectively,  the  Parent  Borrower,  Dillard  Tennessee  Operating
Limited  Partnership,  Dillard  Store  Services,  Inc.,  The  Higbee  Company,  LLC,  Construction
Developers, LLC, Dillard International, LLC, Condev Nevada, Inc., U.S. Alpha, Inc., Dillard’s
Dollars,  Inc.,  Higbee  Louisiana,  LLC,  Dillard  Texas  Central,  LLC,  Dillard  Texas  East,  LLC,
Dillard  Texas  Four-Point,  LLC,  Dillard  Texas  South,  LLC,  DSS  Neil  Operations,  LLC,  DSS
Uniter, LLC, Higbee GAK, LP, Higbee Lancoms, LP, Higbee Salva, LP, Higbee West Main, LP, 

	
	
  11

600 Carnahan Drive Operations, LLC, 600 Carnahan Drive Property, LLC, BTK Development
L.L.C., Dillard Investment Co., Inc., Dillard Texas, LLC, Dillard’s Utah, Inc., D-SERF Company,
LLC, Fort Worth Borrower LLC, Fremaux Holdings, LLC, GAK GP, LLC, GAK Investco, LLC,
Higbee  Investco,  LLC,  Lancoms  GP,  LLC,  Little  Rock  Borrower  LLC,  California  DSS,  Inc.,
Pulaski Realty Company, Salva GP, LLC, TNLP Investco, LLC, West Main GP, LLC, and Higbee
KYG, LP and any Domestic Subsidiary that becomes a Borrower pursuant to Section 6.13 of this
Agreement.
“Borrowing” shall mean (a) the incurrence of Loans of a single Type, on a single made,
converted or continued on the same date and having, in the case of Eurocurrency Loans, having a
single Interest Period, or (b) a Swingline Loan.
“Borrowing Base” means (a) as of the Second Amendment Effective Date and until the
Deemed Borrowing Base Termination Date, the Deemed Borrowing Base and (b) at any time after
the Deemed Borrowing Base Termination Date, an amount equal to (i) 90% multiplied by the
Appraised  Value  multiplied  by  Eligible  Inventory  (valued  at  Cost),  minus  (ii)  the  aggregate
amount of all Availability Reserves.
“Borrowing Base Certificate” has the meaning assigned to such term in Section 6.01(e).
“Borrowing Request” means a request by the Parent Borrower on behalf of the Borrowers
for a Borrowing substantially in the form of Exhibit G or any other form reasonably approved by
the Agent, in each case, in accordance with Section 2.03.
“Breakage Costs” shall have the meaning set forth in Section 2.22(b).
“Business  Day”  means  any  day  that  is  not  a  Saturday,  Sunday  or  other  day  on which
commercial banks in New York, New York or Little Rock, Arkansas are authorized or required by
law to remain closed, provided that, when used in connection with a Eurocurrency Loan, the term
“Business Day” shall also exclude any day on which banks are not open for dealings in Dollar
deposits in the London interbank market.
“Capital Expenditures” means, for any period, (a) the additions to property, plant and
equipment and other capital expenditures of the Borrowers and their Subsidiaries that are (or would
be) set forth in a consolidated statement of cash flows of the Borrowers and their Subsidiaries for
such period prepared in accordance with GAAP and (b) Capital Lease Obligations incurred by the
Borrowers and their Subsidiaries during such period.
“Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases or financing leases on a balance sheet of such Person under GAAP,
and  the  amount  of  such  obligations  shall  be  the  capitalized  amount  thereof  determined  in
accordance with GAAP.
“Cash  Collateral  Account”  shall  mean  an  interest-bearing  account  established  by  the
Borrowers with the Agent at JPMorgan under the sole and exclusive dominion and control of the
Agent designated as the “Dillard’s Cash Collateral Account”. 

	
	
  12

“Cash  Control  Event”  means  that  Excess  Availability  is  less  than  $125,000,000
100,000,000 for  three  (3)  consecutive  Business  Days.    For  purposes  of Section 2.24(g),  the
occurrence  of  a  Cash  Control  Event  shall  be  deemed  continuing  notwithstanding  that  Excess
Availability may thereafter exceed the amount set forth in the preceding sentence unless and until
Excess Availability exceeds $125,000,000 100,000,000 for sixty (60) consecutive days, in which
event  a  Cash  Control  Event  shall  no  longer  be  deemed  to  be  continuing  for  purposes  of
Section 2.24(g).
“Cash Receipts” has the meaning provided therefor in Section 2.24(c).
“CFC” means a “controlled foreign corporation” within the meaning of Section 957(a) of
the Code.
“Change in Control” means either (a) after the Second Amendment Effective Date, any
Person  or  two  or  more  Persons  acting  in  concert  acquiring  beneficial  ownership  (within  the
meaning of Rule 13d-3 of the Exchange Act), directly or indirectly, of common stock of the Parent
Borrower representing 50% or more of the combined voting power of all common stock of the
Parent Borrower entitled to vote in the election of directors, (b) during any period of up to twelve
consecutive months, whether commencing before or after the Second Amendment Effective Date,
individuals  who  at  the  beginning  of  such  twelve-month  period  were directors of the Parent
Borrower, ceasing for any reason (other than by reason of death, disability or scheduled retirement)
to constitute a majority of the Board of Directors of the Parent Borrower, unless such directors
were replaced by new directors whose election to the Board of Directors of the Parent Borrower,
or whose nomination for election by the shareholders of the Parent Borrower, was approved by a
majority of the directors then still in office who either were directors at the beginning of such
period or whose election or nomination for election was previously so approved, or (c) the failure
of the Parent Borrower to directly or indirectly Control all of the Subsidiary Borrowers.
Notwithstanding the preceding or any provision of Section 13d-3 or 13d-5 of the Exchange Act,
(i) a Person or group shall not be deemed to beneficially own Equity Interests subject to a stock or
asset  purchase  agreement,  merger  agreement,  option  agreement,  warrant  agreement  or  similar
agreement (or voting or option or similar agreement related thereto) until the consummation of the
acquisition  of  the  Equity  Interests  in  connection  with  the  transactions  contemplated  by  such
agreement and (ii) a Person or group will not be deemed to beneficially own the common stock of
another Person as a result of its ownership of the common stock or other securities of such other
Person’s parent entity (or related contractual rights) unless it owns 50% or more of the total voting
power of the common stock entitled to vote for the election of directors of such parent entity having
a majority of the aggregate votes on the board of directors (or similar body) of such parent entity.
“Change in Law” means the occurrence after the Effective Date (or, with respect to any
Lender, such later date on which such Lender becomes a party to this Agreement) of any of the
following: (a) the adoption of or taking effect of any law, rule, regulation or treaty (including any
rules or regulations issued under or implementing any existing law), (b) any change in any law,
rule, regulation or treaty or in the administration, interpretation, implementation or application
thereof by any Governmental Authority; or (c) compliance by any Lender or any Issuing Lender
(or, for purposes of Section 2.26(b), by any lending office of such Lender or by such Lender’s or
such  Issuing  Lender’s  holding  company,  if  any)  with  any  request,  guideline,  requirement  or 

	
	
  13

directive (whether or not having the force of law) of any Governmental Authority made or issued
after the Effective Date; provided that notwithstanding anything herein to the  contrary, (i) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines,
requirements or directives thereunder or issued in connection therewith or in the implementation
thereof, and (ii) all requests, rules, guidelines, requirements or directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States or foreign regulatory authorities, in each case pursuant to
Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted, issued or implemented; and provided, further, that the determination by any Lender of
any additional amount owing to it (other than such amounts payable under Section 2.28), to the
extent  claimed  in  reliance  on  the  preceding  proviso,  shall  be  made  in  good  faith  in  a  manner
generally  consistent  with  such  Lender’s  standard  practices  and only  if  such  Lender  seeks,  or
intends to seek, reimbursement for such additional amounts under other syndicated credit facilities
involving similarly situated borrowers under which such Lender is a lender and may seek such
reimbursement.
“Charges” has the meaning provided therefor in Section 10.14.
“Class” when used in reference to any Loan or Borrowing, refers to whether such Loan, or
the Loans comprising such Borrowing, are Existing Loans, Extended Loans (of the same Extension
Series) or Swingline Loans, when used in reference to any Commitment, refers to whether such
Commitment is an Existing Commitment, an Extended Commitment (of each Extension Series) or
a Swingline Commitment and when used in reference to any Lender, refers to whether such Lender
has a Loan or Commitment with respect to a single class.
“Code” means the Internal Revenue Code of 1986, as amended from time to time.
“Collateral”  means  any  and  all  “Collateral”  as  defined  in  any  applicable  Security
Document.  In no event shall Other Store Proceeds constitute Collateral hereunder.
“Collateral Agent” means JPMorgan in its capacity as collateral agent for the Lenders
hereunder.
“Commercial  Letter  of  Credit”  means  any  Letter  of  Credit  issued  for  the  purpose  of
providing  the  primary  payment  mechanism  in  connection  with  the purchase  of  any  materials,
goods or services by a Borrower in the ordinary course of business of such Borrower.
“Commercial Letter of Credit Outstandings” means, at any time, the sum of (a) the
aggregate undrawn amount of all outstanding Commercial Letters of Credit at such time plus (b)
the aggregate amount of all LC Disbursements relating to Commercial Letters of Credit that have
not yet been reimbursed by or on behalf of the Borrowers at such time.  The Commercial Letter of
Credit Outstandings of any Lender at any time shall be its Commitment Percentage of the total
Commercial Letter of Credit Outstandings at such time.
“Commitment” shall mean, with respect to each Lender, the commitment of such Lender
which is available to be borrowed in the amount set forth opposite its name as its Commitment on
Schedule 1.1 or as may subsequently be set forth in the Register from time to time, as the same
may be increased or reduced from time to time pursuant to Section 2.09. 

	
	
  14

“Commitment Fee” has the meaning provided therefor in Section 2.12.
“Commitment Fee Rate” means , on any day with respect to the Commitment Fee, a per
annum percentage equal to 0.30%.the applicable rate per annum set forth below under the caption
“Commitment Fee Rate” as determined based on the average utilization of the Commitments
during a fiscal quarter:
Average Amount Utilized Commitment Fee Rate
Less than 35% of the Total Commitment 0.30%
Greater than or equal to 35% of the Total
Commitment 0.25%

“Commitment  Increase  Lender”  has  the  meaning  assigned  to  such  term  in
Section 2.09(c).
“Commitment Percentage” shall mean, with respect to each Lender, at any time, except
as otherwise provided herein, that percentage of the Commitments of all Lenders hereunder in the
amount set forth opposite its name on Schedule 1.1 or as may subsequently be set forth in the
Register from time to time, as the same may be reduced or increased from time to time pursuant
to Section 2.09.  Notwithstanding the foregoing, in the case of Section 2.31 when a Defaulting
Lender shall exist, “Commitment Percentage” as used in such Section 2.31 with respect to any
Non-Defaulting Lender shall mean the percentage of the Total Commitment (disregarding any
Defaulting Lender’s Commitment) represented by such Non-Defaulting Lender’s Commitment.
“Commitment Termination Date” means August 9April 28, 2022  2026 (or, if such date
is not a Business Day, the immediately preceding Business Day).
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S. C. § 1 et. seq.),
as  amended  from  time  to  time,  and  any  successor  statute  and  any  regulations  promulgated
thereunder.
“Communications” has the meaning assigned to such term in Section 9.03(c).
“Compounded  SOFR”  means  the  compounded  average  of  SOFRs for  the  applicable
Corresponding Tenor, with the rate, or methodology for this rate, and conventions for this rate
(which may  include  compounding  in  arrears  with  a  lookback  and/or  suspension  period  as  a
mechanism to determine the interest amount payable prior to the end of each Interest Period) being
established by the Agent in accordance with:
(1)  the  rate,  or  methodology  for  this  rate,  and conventions  for  this  rate  selected  or
recommended by the Relevant Governmental Body for determining compounded SOFR; provided
that:
(2) if, and to the extent that, the Agent determines that Compounded SOFR cannot be
determined in accordance with clause (1) above, then the rate, or methodology for this rate, and
conventions for this rate that the Agent determines in its reasonable discretion are substantially 

	
	
  15

consistent with any evolving or then-prevailing market convention for determining compounded
SOFR for U.S. dollar-denominated syndicated credit facilities at such time;
provided, further, that if the Agent decides that any such rate, methodology or convention
determined  in  accordance  with  clause  (1)  or  clause  (2) is not  administratively feasible for the
Agent,  then Compounded  SOFR  will  be  deemed  unable  to  be  determined  for  purposes  of  the
definition of “Benchmark Replacement.”
“Consolidated  Cash  Balance”  means,  at  any  time,  the  aggregate  amount  of  cash,
marketable  securities,  treasury bonds  and  bills,  certificates  of  deposit,  investments  in  money
market funds and commercial paper and other cash equivalents (other than Excluded Cash), in
each  case,  held  or  owned  by  (whether  directly  or  indirectly),  credited  to  the  account  of,  or
otherwise reflected as an asset on the balance sheet (prepared in accordance of GAAP) of, the
Parent Borrower and its Subsidiaries.
“Consolidated Cash Balance Threshold” means $250,000,000.
“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to exercise voting
power,  by  contract  or  otherwise.    “Controlling”  and  “Controlled”  have  meanings  correlative
thereto.
“Corresponding Tenor” with respect to a Benchmark Replacement means any Available
Tenor means, as applicable, either a tenor (including overnight) or an interest payment period
having approximately the same length (disregarding business day adjustment) as the applicable
tenor for the applicable Interest Period with respect to the LIBO Ratesuch Available Tenor.
“Cost” means the cost value of Inventory as reported on the Borrowers’ financial stock
ledger using the retail method of accounting based on practices which are in effect on the date of
this Agreement.
“Covered  Entity”  means  any  of  the  following:    (a)  a  “covered  entity”  as  that  term  is
defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (b) a “covered bank” as that
term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (c) a “covered FSI”
as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Covered Party” has the meaning given to such term in Section 10.23.
“Credit Card Notifications” has the meaning provided therefor in Section 2.24(c).
“Credit Extensions” as of any day, shall be equal to the sum of (a) the principal balance
of all Loans then outstanding, and (b) the then amount of the Letter of Credit Outstandings.
“Credit  Party”  means  the  Administrative  Agent,  the  Collateral  Agent,  the  Issuing
Lenders, the Swingline Lenders or any other Lender.
“Customer Credit Liabilities” means, at any time, the aggregate face value at such time
of (a) outstanding gift certificates and gift cards of the Subsidiary Borrowers entitling the holder 

	
	
  16

thereof to use all or a portion of the certificate to pay all or a portion of the purchase price for any
Inventory,  and  (b)  outstanding  merchandise  credits  and  customer  deposits  of  the  Subsidiary
Borrowers.
“Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which
will include a lookback) being established by the Agent in accordance with the conventions for
this rate selected or recommended by the Relevant Governmental Body for determining “Daily
Simple SOFR” for business loans; provided that if the Agent decides that any such convention is
not administratively feasible for the Agent, then the Agent may establish another convention in its
reasonable discretion.
“DDA Notification” has the meaning provided therefor in Section 2.24(c).
“DDAs”  means  any  checking  or  other  demand  deposit  account,  investment  account,
securities account, commodity account or other account maintained by any Borrower (other than
any Excluded Account).
“Deemed  Borrowing  Base”  means  an  amount  equal  to  (a)  75%  multiplied  by  the
difference between (A) the Cost of Eligible Inventory and (B) Inventory Reserves, minus (b) the
aggregate amount of all Availability Reserves.
“Deemed Borrowing Base Termination Date” means the date that the Parent Borrower
delivers to the Agent (a) a field examination and appraisal of the Subsidiary Borrowers’ Inventory
completed by a reasonably acceptable examiner and a reasonably acceptable appraiser, in each
case  to  the  Agent,  and  (b)  a  completed  Borrowing  Base  Certificate  using  the  borrowing  base
formula described in clause (b) of the definition of “Borrowing Base”.
“Deemed Borrowing Base” has the meaning assigned to such term in this Agreement prior
to giving effect to the Third Amendment.
“Default” means any event or condition that constitutes an Event of Default or that upon
notice, lapse of time or both would, unless cured or waived, become an Event of Default.
“Default  Right”  has  the  meaning  assigned  to  that  term  in,  and  shall  be  interpreted  in
accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“Defaulting Lender” means, any Lender that (a) has failed to (i) fund all or any portion of
its  Loans  within  two (2)  Business  Days  of  the  date  such  Loans were  required  to  be  funded
hereunder, or (ii) pay to the Agent, any Issuing Lender, any Swingline Lender or any other Lender
any other amount required to be paid by it hereunder (including in respect of its participation in
Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due, (b) has
notified the Parent Borrower, the Agent, any Issuing Lender or any Swingline Lender in writing
that it does not intend to comply with its funding obligations hereunder, or has made a public
statement to that effect, (c) has failed, within three (3) Business Days after written request by the
Agent or the Parent Borrower, to confirm in writing to the Agent and the Borrowers that it will
comply with its prospective funding obligations hereunder (provided that such Lender shall cease
to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by
the Agent and the Parent Borrower), or (d) has, or has a direct or indirect Lender Parent that has, 

	
	
  17

(i)  become  the  subject  of  a  Bankruptcy  Event,  (ii)  had  appointed  for  it  a  receiver,  custodian,
conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged
with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance
Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii)
become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender
solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct
or indirect Lender Parent thereof by a Governmental Authority so long as such ownership interest
does not result in or provide such Lender with immunity from the jurisdiction of courts within the
United States or from the enforcement of judgments or writs of attachment on its assets or permit
such  Lender  (or  such  Governmental  Authority)  to  reject,  repudiate,  disavow  or  disaffirm  any
contracts or agreements made with such Lender.  Any determination by the Agent that a Lender is
a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive
and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender
upon delivery of written notice of such determination to the Parent Borrower, each Issuing Lender,
each Swingline Lender and each Lender.
“Depository” means any bank, broker, depository, institution or other entity that maintains
a DDA.
“DICL” means Dillard’s Insurance Company Limited, a company registered and existing
under the laws of Bermuda.
“Disposition” has the meaning set forth in Section 7.05.
“Dividing Person” has the meaning given to such term in the definition of “Division”.
“Division” means the division of the assets, liabilities and/or obligations of a Person (the
“Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or
similar arrangement), which may or may not include the Dividing Person and pursuant to which
the Dividing Person may or may not survive.
“Division Successor” means any Person that, upon the consummation of a Division of a
Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held
by such Dividing Person immediately prior to the consummation of such Division.  A Dividing
Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed
a Division Successor upon the occurrence of such Division.
“Documentation Agents” means each of the Effective Date Documentation Agent, the
First Amendment Documentation Agent and the Second Amendment Documentation Agent.
“Dollars” or “$” refers to lawful money of the United States of America.
“Domestic Subsidiary” means any Subsidiary of a Borrower organized or incorporated
under the laws of a jurisdiction located in the U.S.
“Early  Opt-in  Election”  means , if the then-current Benchmark is LIBO Rate, the
occurrence of: 

	
	
  18

(1) (1) (i) a determination by the Agent or (ii) a notification by the Required Lenders
to the Agent (with a copy to the Parent Borrower) that the Required Lenders have determined that
U.S. dollar-denominated a notification by the Agent to (or the request by the Parent Borrower to
the  Agent  to  notify)  each  of  the  other  parties  hereto  that  at  least  five  currently  outstanding
syndicated credit facilities being executed at such time, or that include language similar to that
contained in Section 2.16 are being executed or amended, as applicable, to incorporate or adopt a
new benchmark interest rate to replace the LIBO Rate, and dollar-denominated syndicated credit
facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based
rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and
such syndicated credit facilities are identified in such notice and are publicly available for review),
and
(2) (2) (i) the the joint election by the Agent or (ii) the election by the Required Lenders
to declare that an Early Opt-in Election has occurred and the provision, as applicable, and the
Parent Borrower to trigger a fallback from LIBO Rate and the provision by the Agent of written
notice of such election to the Parent Borrower  and the Lendersor by the Required Lenders of
written notice of such election to the Agent.
“EBITDA”  means,  for  any  period,  the  Net  Income  for  the  Parent  Borrower  and  its
Subsidiaries  on  a  consolidated  basis  determined  in  accordance  with  GAAP  plus  (a)  without
duplication to the extent deducted in determining such Net Income, the sum of (i) Interest Expense,
provision  for  Taxes  based  on  income  and  depreciation  and  amortization,  all  as  determined  in
accordance with GAAP, (ii) extraordinary, non-recurring or unusual charges or losses, (iii) charges
resulting from the application of FASB Statement Number 123 (Revised), (iv) other non-cash
charges and (v) losses arising from the sale of assets other than in the ordinary course of business,
minus (b) to the extent included in such consolidated Net Income, extraordinary, non-recurring or
unusual gains and gains arising from the sale of assets other than in the ordinary course of business.
Notwithstanding anything to the contrary contained herein, all calculations of EBITDA shall be
calculated, determined and adjusted to exclude, for any applicable period or date of determination,
any income, loss, results of operations, deduction, charge or other adjustments with respect to the
Specified Subsidiaries, except, without duplication, for any earnings of any Specified Subsidiary
that are actually received in cash by any Borrower and included in such Borrower’s Net Income.
“EBITDAR”  means  for  any  period  for  the  Parent  Borrower  and  its  Subsidiaries  on  a
consolidated basis determined in accordance with GAAP, the sum of (a) EBITDA plus (b) Rental
and Lease Expense of the Parent Borrower and its Subsidiaries.  Notwithstanding anything to the
contrary  contained  herein,  all  calculations  of  EBITDAR  shall  be  calculated,  determined  and
adjusted to exclude, for any applicable period or date of determination, any income, loss, results
of operations, deduction, charge or other adjustments with respect to the Specified Subsidiaries,
except, without duplication, for any earnings of any Specified Subsidiary that are actually received
in cash by any Borrower and included in such Borrower’s Net Income.
“ECP”  means  an  “eligible  contract  participant”  as  defined  in  Section  1(a)(18)  of  the
Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules
issued by the Commodity Futures Trading Commission and/or the SEC. 

	
	
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“EEA  Financial  Institution”  means  (a)  any credit institution or  investment  firm
established in any EEA Member Country which is subject to the supervision of an EEA Resolution
Authority, (b) any entity established in an EEA Member Country which is a parent of an institution
described in clause (a) of this definition, or (c) any financial institution established in an EEA
Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this
definition and is subject to consolidated supervision with its parent.
“EEA  Member  Country”  means  any  of  the  member  states  of  the  European  Union,
Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any Person
entrusted  with  public  administrative  authority  of  any  EEA  Member  Country  (including  any
delegee) having responsibility for the resolution of any EEA Financial Institution.
“Effective Date” means May 13, 2015.
“Effective  Date  Arrangers”  means  each  of  J.P.  Morgan  Securities  LLC,  Wells  Fargo
Securities, LLC, Regions Capital Markets, a division of Regions Bank, and Citizens Bank, N.A.,
in  its  capacity  as  joint  lead  arranger  and  joint  bookrunner  for  the  credit  facility  established
hereunder as of the Effective Date.
“Effective Date Documentation Agent” means Citizens Bank, N.A., in its capacity as
documentation agent for the credit facility established hereunder as of the Effective Date.
“Effective Date Syndication Agents” means each of Wells Fargo Bank, N.A. and Regions
Capital Markets, in their capacity as syndication agents for the credit facility established hereunder
as of the Effective Date.
“Electronic  Signature”  means  an  electronic  sound,  symbol,  or  process  attached  to,  or
associated  with,  a  contract  or  other  record  and  adopted  by  a  Person  with  the  intent  to  sign,
authenticate or accept such contract or record.
“Electronic  System”  means  any  electronic  system,  including  e-mail,  e-fax,  web  portal
access for such Borrower and any other Internet or extranet-based site, whether such electronic
system is owned, operated or hosted by the Agent or any Issuing Lender and any of its respective
Related Parties or any other Person, providing for access to data protected by passcodes or other
security system.
“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender and (c) an Approved
Fund, other than, in each case, (i) a Defaulting Lender or its Lender Parent, (ii) the Parent Borrower
or any Subsidiary or other Affiliate of the Parent Borrower, (iii) a natural person or (iv) a holding
company, investment vehicle or trust for, or owned and operated for the primary benefit of, a
natural person, other than, in the case of this clause (iv), any such holding company, investment
vehicle or trust that (A) has not been established for the primary purpose of acquiring Loans or
Commitments, (B) is managed by a professional advisor, who is not a natural person or a relative
thereof, having significant experience in the business of making or purchasing commercial loans,
(C) has assets greater than $25,000,000 and (D) makes or purchases commercial loans and similar
extensions of credit in the ordinary course of its business as significant part of its activities. 

	
	
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“Eligible  Inventory”  shall  mean,  as  of  the  date  of  determination  thereof,  items  of
Inventory of the Subsidiary Borrowers that are finished goods, merchantable and readily saleable
to the public in the ordinary course deemed by the Agent in its Permitted Discretion to be eligible
for inclusion in the calculation of the Borrowing Base. “Eligible Inventory” shall include, without
duplication of other Eligible Inventory, Eligible Letter of Credit Inventory.  Without limiting the
foregoing,  unless  otherwise  approved  in  writing  by  the  Agent,  none  of  the  following  shall  be
deemed to be Eligible Inventory:
(a) Inventory that is not owned solely by the Subsidiary Borrowers, or is leased
or on consignment or the Subsidiary Borrowers do not have good and valid title thereto;
(b) Inventory (including any portion thereof in transit from vendors, except for
Eligible Letter of Credit Inventory) that is not located at a warehouse facility or store that
is owned or leased by a Subsidiary Borrower;
(c) Inventory  that  represents  (i)  goods  damaged,  defective  or  otherwise
unmerchantable,  (ii)  goods  that  do  not  conform  in  all  material respects  to  the
representations  and  warranties  contained  in  this  Agreement  or  any  of  the  Security
Documents, or (iii) goods to be returned to the vendor or goods for which reclamation
rights have been asserted by the seller;
(d) Inventory that is not located in the United States of America (excluding
territories and possessions thereof and Eligible Letter of Credit Inventory);
(e) Inventory that is not subject to a perfected first priority security interest in
favor of the Agent for the benefit of the Secured Parties;
(f) Inventory  which  consists  of  samples,  labels,  bags,  packaging,  and  other
similar non-merchandise categories;
(g) Inventory  as  to  which  insurance  in  compliance  with  the  provisions  of
Section 6.07 hereof is not in effect;
(h) Inventory which has been sold but not yet delivered or as to which  any
Subsidiary Borrower has accepted a deposit;
(i) Perishable Inventory;
(j) Inventory which is subject to any Lien other than (i) a Lien in favor of the
Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in
favor of the Agent;
(k) Inventory (except for Eligible Letter of Credit Inventory) which is being
processed offsite at a third party location or outside processor, or is in-transit to or from
such third party location or outside processor; or
(l) Inventory which has been acquired from a Sanctioned Person. 

	
	
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In the event that Inventory of a Subsidiary Borrower which was previously Eligible Inventory
ceases to be Eligible Inventory hereunder, such Subsidiary Borrower or the Parent Borrower shall
notify the Agent thereof on and at the time of submission to the Agent of the next Borrowing Base
Certificate.
“Eligible  Letter  of  Credit  Inventory”  means  Inventory  (a)  not  yet  delivered  to  a
Subsidiary Borrower, (b) the purchase of which is supported by a Commercial Letter of Credit
having an expiry within sixty (60) days of such date of determination, (c) subject to a negotiable
document showing Agent, or with consent of the Agent, for which the document of title reflects a
Subsidiary Borrower as consignee (along with delivery to the Agent or a Subsidiary Borrower, as
applicable, of the documents of title with respect thereto), (d) as to which, if so required by the
Agent in its discretion, the Agent has possession or control over the documents of title which
evidence ownership of the subject Inventory (such as by the delivery of a customs broker agency
agreement, satisfactory to the Agent), (e) which is insured to the reasonable satisfaction of the
Agent, and (f) which otherwise would constitute Eligible Inventory.
“Environmental Laws” means all applicable laws, rules, regulations, codes, ordinances,
orders,  decrees,  judgments,  injunctions,  notices  or  binding  agreements  issued,  promulgated  or
entered into by or with any Governmental Authority, relating in any way to (a) the environment,
(b) the preservation or reclamation of natural resources, (c) the management, handling, treatment,
storage, disposal, Release or threatened Release of any Hazardous Material or (d) health and safety
matters (to the extent related to exposure to any Hazardous Materials).
“Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, natural resource damage, costs of environmental remediation, administrative
oversight  costs,  fines,  penalties  or  indemnities),  of  any  Borrower  or  Subsidiary  directly  or
indirectly  resulting  from  or  based  upon  (a)  any  violation  of  any  Environmental  Law,  (b)  the
generation,  use,  handling,  transportation,  storage,  treatment  or  disposal  of  any  Hazardous
Materials, (c) any exposure to any Hazardous Materials, (d) the Release or threatened Release of
any Hazardous Materials into the environment or (e) any contract, agreement or other consensual
arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity  Interests”  means  shares  of  capital  stock,  partnership  interests,  membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests  in  a  Person,  and  any  warrants,  options  or  other  rights  entitling  the  holder  thereof  to
purchase or acquire any of the foregoing, but excluding any debt securities convertible into any of
the foregoing.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the rules and regulations promulgated thereunder.
“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together
with any Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or
Section 4001(14) of ERISA or, solely for purposes of Section 302 of ERISA and Section 412 of
the Code, is treated as a single employer under Section 414 of the Code. 

	
	
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“ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA
or the regulations issued thereunder, with respect to a Plan (other than an event for which the 30-
day notice period is waived); (b) the failure by any Plan to satisfy the minimum funding standards
(within the meaning of Section 412 of the Code or Section 302 of ERISA applicable to such Plan),
whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of
ERISA of an application for a waiver of the minimum funding standard with respect to any Plan;
(d)  the  incurrence  by  any  Borrower  or  any  ERISA  Affiliate  of  any  liability under  Title IV  of
ERISA with respect to the termination of any Plan; (e) the receipt by any Borrower or any ERISA
Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate
any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by any Borrower
or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal of any
Borrower or any ERISA Affiliate from any Plan or Multiemployer Plan; or (g) the receipt by any
Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from
any Borrower or any ERISA Affiliate of any notice, concerning the imposition upon any Borrower
or any ERISA Affiliate of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent, in critical status or in reorganization, within the meaning of Title IV
of ERISA.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published
by the Loan Market Association (or any successor Person), as in effect from time to time.
“Eurocurrency Borrowing” shall mean a Borrowing comprised of Eurocurrency Loans.
“Eurocurrency  Loan”  shall  mean  any  Loan  bearing  interest  at  a  rate  determined  by
reference to the Adjusted LIBO Rate in accordance with the provisions of Article II.
“Event of Default” has the meaning assigned to such term in Section 8.01.
“Excess Availability” means, as of any date of determination, the excess, if any, of (a) the
lesser  of  the  Borrowing  Base  or  the  Total  Commitment,  minus  (b)  the  outstanding  Credit
Extensions.
“Excess  Availability  Threshold” is satisfied as of any date of determination if, with
respect to any transaction, Excess Availability (calculated on a pro forma basis after giving effect
to such transaction and any Borrowings to be made on such date of determination and at all times
during the 60-day 30-day period immediately prior to such transaction) is at least $200,000,000
(or, if such transaction is to be permitted by Section 7.10(g) or Section 7.10(k), $300,000,000) on
such date of determination.
“Excess Cash” means, at any time, the amount by which the Consolidated Cash Balance
exceeds the Consolidated Cash Balance Threshold.
“Exchange Act” means the Securities Exchange Act of 1934.
“Excluded Accounts” means (a) accounts maintained in the ordinary course of business
containing  cash  amounts  that  do  not  exceed  at  any  time  $250,000  for  any  such  account  and
$1,250,000 in the aggregate for all such accounts under this clause (a), (b) an account which is
used exclusively for the payment of payroll, payroll taxes, employee benefits or escrow deposits 

	
	
  23

related to payroll, payroll taxes and employee benefits, (c) an account which exclusively holds
amounts in trust for third parties or on behalf of third parties including those held for the benefit
of  employees,  officers,  directors  or  taxing  authorities,  (d)  zero  balance  accounts,  (e)  accounts
consisting exclusively of Other Store Proceeds and (f) escrow accounts and other accounts used
exclusively to hold (i) proceeds of newly issued Indebtedness permitted under this Agreement
(other than  any advances under this Agreement) and (ii) cash or  cash equivalents constituting
purchase price deposits held in escrow by an unaffiliated third party pursuant to a binding and
enforceable purchase and sale agreement with an unaffiliated third party containing customary
provisions regarding the payment and refunding of such deposits.
“Excluded Cash” means (a) any cash to be used to pay obligations of the Borrowers then
due and owing to unaffiliated third parties and for which the Borrowers have issued checks or have
initiated wires or ACH transfers in order to pay such obligations, (b) cash held in (i) accounts
designated and used solely for payroll or employee benefits, (ii) cash collateral accounts with
respect to Letters of Credit, (iii) trust accounts designated and used exclusively for the payment of
taxes of the Borrowers or for the sole benefit of third parties, and (iv) escrow accounts and accounts
where solely proceeds of newly issued Indebtedness permitted under this Agreement (other than
any  advances  under  this  Agreement)  are  deposited,  and  (c)  any  cash  or  cash  equivalents
constituting purchase price deposits held in escrow by an unaffiliated third party pursuant to a
binding and enforceable purchase and sale agreement with an unaffiliated third party containing
customary provisions regarding the payment and refunding of such deposits.
“Excluded Hedging Obligation” means, with respect to any Borrower, (a) any Hedging
Obligation if, and to the extent that, all or a portion of the Guarantee of such Borrower of, or the
grant by such Borrower of a security interest to secure, such Hedging Obligation (or any Guarantee
thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order
of the Commodity Futures Trading Commission (or the application or official interpretation of any
thereof), by virtue of such Borrower’s failure for any reason to constitute an ECP at the time the
Guarantee  of  such  Borrower  or  the  grant  of  such  security  interest becomes or would become
effective with respect to such Hedging Obligation, (b) in the case of a Hedging Obligation subject
to  a  clearing  requirement  pursuant  to  Section  2(h)  of  the  Commodity  Exchange  Act  (or  any
successor  provision  thereto),  because  such  Borrower  is  a  “financial  entity,”  as  defined  in
Section 2(h)(7)(C) of the Commodity Exchange Act (or any successor provision thereto), at the
time the Guarantee of such Borrower becomes or would become effective with respect to such
related  Hedging  Obligation  or  (c) any  other  Hedging  Obligation designated  as  an  “Excluded
Hedging  Obligation”  of  such  Borrower  as  specified  in  any  agreement  between  the  relevant
Borrower and counterparty applicable to such Hedging Obligations.  If a Hedging Obligation arises
under a master agreement governing more than one swap, such exclusion shall apply only to the
portion  of  such  Hedging  Obligation  that  is  attributable  to  swaps  for  which  such  Guarantee  or
security interest is or becomes illegal.
“Excluded Subsidiary” means any Subsidiary  of the Parent Borrower  that is (i) not a
Material Subsidiary, (ii) a Foreign Subsidiary, (iii) a Subsidiary of a CFC, which Subsidiary is
organized or incorporated under the laws of a jurisdiction located in the U.S., (iv) a FSHCO or (v)
a Specified Subsidiary.  As of the Second Third Amendment Effective Date, Condev Mission, Inc.,
Dillard Travel, Inc., Dillard’s Properties, Inc., DSS HQ Properties, LLC, DSS NEIL Properties, 

	
	
  24

LLC,  Westminster  Fashion  Place  LLC,  and  Westminster  Mall  Investing  LLC  are  Excluded
Subsidiaries.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a
Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed
on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes,
in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having
its  principal  office  or,  in  the  case  of  any  Lender,  its  applicable  lending  office  located  in,  the
jurisdiction  imposing  such  Tax  (or  any  political  subdivision  thereof)  or  (ii)  that  are  Other
Connection  Taxes;  (b)  in  the  case  of  a  Lender,  U.S.  Federal  withholding  Taxes  imposed  on
amounts payable to or for the account of such Lender with respect to an applicable interest in a
Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such
Lender acquires such interest in the Loan, Letter of Credit or Commitment (other than pursuant to
an assignment request by the Borrowers under Section 2.30(b)) or (ii) such Lender changes its
lending  office,  except  in  each  case  to  the  extent  that,  pursuant  to Section 2.28,  amounts  with
respect  to  such  Taxes  were  payable  either  to  such  Lender’s  assignor immediately before such
Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment or to such
Lender immediately before it changed its lending office; (c) Taxes attributable to such Recipient’s
failure to comply with Section 2.28(f); and (d) any withholding Taxes imposed under FATCA.
“Existing Blocked Account” shall have the meaning provided in Section 2.24(a).
“Existing Class” shall have the meaning provided in Section 2.20.
“Existing Commitment” shall have the meaning provided in Section 2.20.
“Existing Credit Card Notification” shall have the meaning provided in Section 2.24(b).
“Existing Loans” shall have the meaning provided in Section 2.20.
“Existing Revolving Borrowings” shall have the meaning provided in Section 2.09(d).
“Extended Commitments” shall have the meaning provided in Section 2.20.
“Extended Loans” shall have the meaning provided in Section 2.20.
“Extending Lender” shall have the meaning provided in Section 2.20.
“Extension Amendment” shall have the meaning provided in Section 2.20.
“Extension Date” shall have the meaning provided in Section 2.20.
“Extension Election” shall have the meaning provided in Section 2.20.
“Extension Request” shall have the meaning provided in Section 2.20.
“Extension Series” shall mean all Extended Commitments that are established pursuant to
the same Extension Amendment (or any subsequent Extension Amendment to the extent such 

	
	
  25

Extension Amendment expressly provides that the Extended Commitments provided for therein
are intended to be a part of any previously established Extension Series) and that provide for the
same interest margins, extension fees, maturity and other terms.
“FATCA” means Sections 1471 through 1474 of the Code, as of the Effective Date (or
any  amended  or  successor  version  that  is  substantively  comparable and not materially more
onerous to comply with), any current or future regulations or official interpretations thereof and
any agreement entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory
legislation,  rules  or  practices  adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or
convention among Governmental Authorities and implementing such Sections of the Code.
“Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB
based on such day’s federal funds transactions by depositary institutions (as determined in such
manner as shall be set forth on the Federal Reserve Bank of New York’s NYFRB’s Website from
time to time) and published on the next succeeding Business Day by the NYFRB as the effective
federal funds rate, provided that, if the Federal Funds Effective Rate as so determined would be
less than zero, such rate shall be deemed to zero for the purposes of this Agreement.
“Federal Reserve Bank of New York’s Website” means the website of the NYFRB at
http://www.newyorkfed.org, or any successor source.
“Fee Letter” means, collectively, (a) the fee letter dated April 22, 2015 executed by the
Agent and the Parent Borrower with respect to any administrative agent fee set forth therein, (b)
the letter agreement entitled “Engagement Letter” dated April 7, 2020, regarding fees, executed
by the Agent and accepted and agreed to by the Parent Borrower, and (c(c) the letter agreement
entitled “Engagement Letter” dated March 31, 2021, regarding fees, executed by the Agent and
agreed to by the Parent Borrower, and (d) any other agreement now or at anytime hereafter entered
into between one or more Borrower and the Agent, JPMorgan and/or any of their Affiliates, in
each case providing for the payment of fees to the Agent, JPMorgan and/or any of their Affiliates
in connection with this Agreement or any transactions contemplated hereby or related thereto, as
such letter agreement and such other agreements may from time to time be amended.
“Financial  Officer”  means,  with  respect  to  any  Borrower,  the  chief  financial  officer,
principal financial officer, principal accounting officer, treasurer, controller or assistant controller
of such Borrower.  Unless otherwise specified, each reference to Financial Officer shall be deemed
to be a Financial Officer of the Parent Borrower.
“First Amendment” means that certain Amendment No. 1 to Credit Agreement dated as
of  August  9,  2017  among  the  Parent  Borrower  and  Dillard  Store  Services,  Inc.,  an  Arizona
corporation, as borrowers, certain subsidiaries of the Parent Borrower as guarantors, the Lenders
party thereto and the Agent.
“First  Amendment  Arrangers”  means  each  of  JPMorgan,  Wells  Fargo  Bank,  N.A.,
Regions Capital Markets and Citizens Bank, N.A., in their capacity as joint lead arranger and joint
bookrunner for the First Amendment.
“First Amendment Documentation Agent” means Citizens Bank, N.A., in its capacity as
documentation agent for the First Amendment. 

	
	
  26

“First Amendment Syndication Agents”  means  each  of  Wells  Fargo  Bank,  N.A.  and
Regions Capital Markets, in their capacity as syndication agent for the First Amendment.
“Fixed Charge Coverage Ratio” means, with respect to any fiscal period of the Parent
Borrower and its Subsidiaries (other than the Specified Subsidiaries) on a consolidated basis, the
ratio of (a) the sum of EBITDAR for such period, minus Capital Expenditures incurred by the
Parent Borrower and its Subsidiaries (other than the Specified Subsidiaries) during such period
minus federal, state, local and foreign income Taxes paid in cash during such period, to (b) Fixed
Charges for such period.  The Fixed Charge Coverage Ratio shall be calculated on a trailing twelve
fiscal months basis.
“Fixed Charges” means, with respect to any fiscal period of the Parent Borrower and its
Subsidiaries on a consolidated basis, without duplication, the sum of (a) cash Interest Expense
during such fiscal period, (b) Rental and Lease Expense during such fiscal period, (c) Scheduled
Payments during such fiscal period, and (d) Restricted Payments made in cash in respect of Equity
Interests of the Parent Borrower during such fiscal period, but only to the extent such Restricted
Payments are paid on or after the Second Amendment Effective Date.  Notwithstanding anything
to the contrary contained herein, all calculations of Fixed Charges shall be calculated, determined
and adjusted to exclude, for any applicable period or date of determination, any amount, charge or
other adjustment with respect to the Specified Subsidiaries determined in accordance with GAAP
for such period or date of determination.
“Flood Laws” has the meaning assigned to such term in Section 9.10.
“Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of
the execution of this Agreement, the modification, amendment or renewal of this Agreement or
otherwise) with respect to LIBO Rate.
“Foreign Lender” means any Lender that is not a U.S. Person.
“Foreign  Subsidiary”  means  any  Subsidiary  of  a  Borrower  that  is  not  a  Domestic
Subsidiary.
“FSHCO” means any Domestic Subsidiary that has no material assets other than the capital
stock of one or more Foreign Subsidiaries that are CFCs.
“GAAP” means, subject to Section 1.03, generally accepted accounting principles in the
United States of America, as in effect from time to time.
“Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality,  regulatory body,  court,  central  bank  or  other  entity  exercising  executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European
Central Bank).
“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise,  of  the  guarantor  guaranteeing  or  having  the  economic  effect  of  guaranteeing  any 

	
	
  27

Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a)
to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation or to purchase (or to advance or supply funds for the purchase of) any security
for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of
assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as
an account party in respect of  any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation, ; provided that the term “Guarantee” shall not include endorsements
for  collection  or  deposit  in  the  ordinary  course  of  business;  provided,  further,  that  the  term
Guarantee  shall  not,  with  respect  to  any  Subsidiary  Borrower,  include  any  Excluded  Hedging
Obligation of such Subsidiary Borrower.
“Guaranteed Obligations” has the meaning assigned to such term in Section 3.01.
“Guarantor Payment” has the meaning assigned to such term in Section 3.10.
“Hazardous  Materials”  means:    (a)  any  substance,  material,  or  waste  that  is  included
within the definitions of “hazardous substances,” “hazardous materials,” “hazardous waste,” “toxic
substances,” “toxic materials,” “toxic waste,” or words of similar import in any Environmental
Law;  (b)  those  substances  listed  as  hazardous  substances  by  the  United  States  Department  of
Transportation (or any successor agency) (49 C.F.R. 172.101 and amendments thereto) or by the
Environmental Protection Agency (or any successor agency) (40 C.F.R. Part 302 and amendments
thereto);  and  (c)  any  substance,  material,  or  waste  that  is  petroleum,  petroleum-related,  or  a
petroleum  by-product,  asbestos  or  asbestos-containing  material,  polychlorinated  biphenyls,
flammable,  explosive,  radioactive,  freon  gas,  radon,  or  a  pesticide,  herbicide,  or  any  other
agricultural chemical.
“Hedging  Agreement”  means  any  agreement  with  respect  to  any  swap,  forward,  spot,
future or derivative transaction or option or similar agreement involving, or settled by reference
to,  one  or  more  rates,  currencies,  commodities,  equity  or  debt instruments  or  securities,  or
economic, financial or pricing indices or measures of economic, financial or pricing risk or value
or any similar transaction or any combination of these transactions; provided that no phantom stock
or similar plan providing for payments only on account of services provided by current or former
directors,  officers,  employees  or  consultants  of  the  Borrowers or the Subsidiaries shall be a
Hedging Agreement.
“Hedging  Obligation”  means,  with  respect  to  any  Person,  any  obligation  under  any
Hedging Agreement, including, without limitation the obligation to pay or perform thereunder.
“IBA” has the meaning assigned to such term in Section 1.07.
“Impacted Interest Period” has the meaning set forth in the definition of “LIBO Rate”.
“Indebtedness”  of  any  Person  means,  without  duplication,  (a)  all  obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, (c) all obligations of such Person upon which interest charges are 

	
	
  28

customarily paid or accrued by such Person, (d) all obligations of such Person under conditional
sale  or  other  title  retention  agreements  relating  to  property  acquired  by  such  Person,  (e)  all
obligations  of  such  Person  in  respect  of  the  deferred  purchase price  of  property  or  services
(excluding  current  accounts  payable  incurred  in  the  ordinary  course  of  business),  (f)  all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others (including, without limitation, under any Synthetic Leases),
(h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of
such  Person  as  an  account  party  in  respect  of  letters  of  credit  and  letters  of  guaranty,  (j)  all
obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) all
Hedging Agreements, and (l) all mandatorily redeemable preferred stock of such Person, valued
at the applicable redemption price, plus accrued and unpaid dividends payable in respect of such
redeemable preferred stock.  The Indebtedness of any Person shall include the Indebtedness of any
other entity (including any partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness provide that such Person is not
liable therefor.  It is understood that the term “Indebtedness” does not include obligations in respect
of  operating  leases  (which,  for  purposes  hereof,  shall  be  determined  in  accordance  with
Section 1.03), including any operating leases arising under sale and leaseback transactions.
“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with
respect to any payment made by or on account of any obligation of the Borrowers under any Loan
Document and (b) to the extent not otherwise described in the foregoing clause (a) hereof, Other
Taxes.
“Indemnitee” has the meaning provided therefor in Section 10.04(b).
“Initial FCCR Test Period” has the meaning provided therefor in Section 7.08.
“Initial Loans” shall have the meaning provided in Section 2.01(a).
“Inspection Trigger Period” means any period commencing on the first date on which (a)
Excess Availability is less than $150,000,000 120,000,000 for three (3) consecutive Business Days
or (b) an a Specified Event of Default has occurred and is continuing, and continuing until the date
on  which both (i)  Excess  Availability  is  greater  than  $150,000,000 120,000,000 and  (ii)  no
Specified Event of Default has occurred and is continuing during such period.
“Interest  Expense”  means,  for  any  period,  total  interest  expense  (including  that
attributable to Capital Lease Obligations) of the Parent Borrower and its Subsidiaries for such
period with respect to all outstanding Indebtedness of the Parent Borrower and its Subsidiaries
(including all commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptances and net costs under Hedging Agreements in respect of interest
rates to the extent such net costs are allocable to such period in accordance with GAAP), calculated
on a consolidated basis for the Parent Borrower and its Subsidiaries for such period in accordance
with GAAP. 

	
	
  29

“Interest Payment Date” means (a) with respect to any Base Rate Loan and any Swingline
Loan, each Quarterly Date and (b) with respect to any Eurocurrency Loan, the last day of each
Interest Period therefor and, in the case of any Interest Period for a Eurocurrency Loan of more
than three (3) months’ duration, each day prior to the last day of such Interest Period that occurs
at three-month intervals after the first day of such Interest Period.
“Interest  Period”  means,  with  respect  to  any  Eurocurrency  Borrowing,  the  period
commencing on the date of such Eurocurrency Borrowing and ending on the day that is seven days
or  the  numerically  corresponding  day  in  the  calendar  month  that  is  one,  three  or  six  months
thereafter (or the day that is two months or twelve months thereafter if, at the time of the relevant
Borrowing, LIBOR funding for such a period is available to all Lenders participating therein), as
the Parent Borrower may elect, provided that (a) if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next succeeding Business Day
unless, in the case of a Eurocurrency Borrowing only, such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end on the next preceding
Business Day, (b) any Interest Period pertaining to a Eurocurrency Borrowing that commences on
the  last  Business  Day  of  a  calendar  month  (or  on  a  day  for  which  there  is  no  numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last Business
Day of the last calendar month of such Interest Period, and (c) any Interest Period which would
otherwise end after the Maturity Date shall end on the Maturity Date.  For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of such Borrowing.
“Interpolated  Rate”  means,  at  any  time,  for  any  Interest  Period,  the  rate  per  annum
(rounded  to  the  same  number  of  decimal  places  as  the  LIBO Screen Rate)  determined  by  the
Administrative Agent (which determination shall be conclusive and binding absent manifest error)
to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen
Rate for the longest period (for the longest period for which the LIBO Screen Rate is available)
that is shorter than the Impacted Interest Period;  and (b) the LIBO Screen Rate for the shortest
period (for which that the LIBO Screen Rate is available) that exceeds the Impacted Interest Period,
in each case, at such time; provided that if any Interpolated Rate shall be less than zero, such rate
shall be deemed to be zero for purposes of this Agreement.
“Inventory” has the meaning assigned to such term in the Security Agreement.
“Inventory Reserves” means such reserves as may be established from time to time by the
Agent in its Permitted Discretion with respect to the determination of the saleability, at retail, of
the Eligible Inventory or which reflect such other factors as affect the Appraised Value of the
Eligible  Inventory.    Without  limiting the  generality  of the  foregoing,  Inventory  Reserves  may
include (but are not limited to) reserves based on (a) obsolescence; (b) seasonality; (c) Shrink; (d)
imbalance; (e) change in Inventory character; (f) change in Inventory composition; (g) change in
Inventory mix; (h) markdowns (both permanent  and point of sale); and (i) retail markons and
markups  inconsistent  with  prior  period  practice  and  performance;  industry  standards;  current
business plans; or advertising calendar and planned advertising events.
“Investments” has the meaning set forth in Section 7.10. 

	
	
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“ISDA  Definitions”  means  the  2006  ISDA  Definitions  published  by  the  International
Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented
from time to time, or any successor definitional booklet for interest rate derivatives published from
time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.
“Issuing Lenders” means (a) JPMorgan, in its capacity as an issuer of Letters of Credit
hereunder, and any successor to JPMorgan in such capacity and (b) each other Lender, other than
JPMorgan, designated by the Parent Borrower as an Issuing Lender through written notice to the
Agent,  including  any  replacement  thereof  with  another  Lender;  provided  that  if  the  Parent
Borrower appoints a Lender (other than JPMorgan) as an Issuing Lender, the Parent Borrower
shall  furnish  prompt  written  notice  thereof  to  the  Agent  and  such  Lender  has  accepted  such
designation  in  writing  pursuant  to  documentation  reasonably  acceptable  to  the  Agent.    Each
Issuing Lender may, in its reasonable discretion, arrange for one or more Letters of Credit to be
issued by Affiliates of such Issuing Lender (including, for the avoidance of doubt, JPMorgan Hong
Kong as an Affiliate of JPMorgan), in which case the term “Issuing Lender” shall include any such
Affiliate with respect to Letters of Credit issued by such Affiliate.  Each Issuing Lender shall act
commercially reasonably and otherwise in accordance with the standard of care set forth in Section
2.06(g).
“JPMCB Parties” has the meaning assigned to such term in Section 10.21.
“JPMorgan” means JPMorgan Chase Bank, N.A., a national banking association.
“JPMorgan Hong Kong” means JPMorgan Chase Bank, N.A., Hong Kong Branch.
“JPMorgan Concentration Account” shall have the meaning set forth in Section 2.24(c).
“Latest Maturity Date” shall mean at any date of determination, the latest Maturity Date
applicable to any Class of Commitments or Loans that is outstanding hereunder on such date of
determination, as extended in accordance with this Agreement from time to time.
“LC Disbursement” means a payment made by an Issuing Lender pursuant to a Letter of
Credit.
“LC Sublimit” means (a) with respect to JPMorgan, in its capacity as an Issuing Lender,
$30,000,000 in the aggregate , provided that no more than $10,000,000 of JPMorgan’s LC Sublimit
may be attributable to Letters of Credit issued by JPMorgan Hong Kong, and (b) with respect to
any other Issuing Lender, an amount agreed to by such Issuing Lender and the Parent Borrower.
“Lender Parent” means, with respect to any Lender, any Person as to which such Lender
is, directly or indirectly, a Subsidiary.
“Lender-Related Person” means, collectively, the Agent, any Arranger, any Syndication
Agent, any Documentation Agent, any Issuing Lender and any Lender, and any Related Party of
any of the foregoing Persons.
“Lenders” shall mean the Persons identified on Schedule 1.1 and any other Person that
shall have become a Lender hereunder pursuant to Section 2.09 or an Assignment and Assumption 

	
	
  31

or  otherwise,  other  than  any  such  Person  that  ceases  to  be  a  Lender hereunder pursuant to an
Assignment  and  Assumption  or  otherwise.    Unless  the  context  otherwise requires, the term
“Lenders” includes the Swingline Lender Lenders and the Issuing LenderLenders.
“Letter of Credit” shall mean a letter of credit that is (a) issued pursuant to this Agreement
for the account of a Borrower or a direct or indirect Subsidiary of the Parent Borrower, (b)  a
Standby Letter of Credit or Commercial Letter of Credit, (c) issued in connection with the purchase
of Inventory by a Borrower or for any other purpose that is reasonably acceptable to the Agent,
and (d) in form and substance reasonably satisfactory to the applicable Issuing Lender.
“Letter of Credit Fees” shall mean the fees payable in respect of Letters of Credit pursuant
to Section 2.10.
“Letter  of  Credit  Outstandings”  means  the  sum  of  Commercial  Letter  of  Credit
Outstandings and Standby Letter of Credit Outstandings.  The Letter of Credit Outstandings of any
Lender  at  any  time  shall  be  its  Commitment  Percentage  of  the  aggregate  Letter  of  Credit
Outstandings.
“Liabilities” means any losses, claims (including intraparty claims), demands, damages or
liabilities of any kind.
“LIBO  Rate”  means,  with  respect  to  any  Eurocurrency  Borrowing  for  any applicable
Interest Period or for any Borrowing of Base Rate Loans, a  an interest rate per annum equal to the
LIBO Screen Rate at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period; provided that if such rate shall be less than 1.00%, such
rate shall be deemed to be 1.00%; provided, further, that if such rate the LIBO Screen Rate shall
not be available at such time for such Interest Period (an “Impacted Interest Period”) then the
LIBO Rate shall be the Interpolated Rate, subject to Section 2.16 in the event that the Agent shall
conclude that it shall not be possible to determine such Interpolated Rate (which conclusion shall
be conclusive and binding absent manifest error); provided that if any Interpolated Rate shall be
less  than  1.00%,  such  rate  shall  be  deemed  to  be 1.00% for  purposes  of  this  Agreement.
Notwithstanding the foregoing, to the extent that the “LIBO Rate” or the “Adjusted LIBO Rate”
is used in connection with a Borrowing of Base Rate Loans, such rate shall be determined  as
modified by the definition of Alternate Base Rate.
“LIBO  Screen  Rate” means, for any day and time, with respect to any Eurocurrency
Borrowing for any Interest Period or for any Borrowing of any Base Rate Loans, the London
interbank offered rate as administered by ICE Benchmark Administration (or any other Person that
takes over the administration of such rate for Dollars) for a period equal in length to such Interest
Period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen
that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on
any successor or substitute page on such screen that displays such rate, or on the appropriate page
of such other information service that publishes such rate from time to time as selected by the
Agent in its reasonable discretion); provided that if the LIBO Screen Rate as so determined would
be  less  than 1.000.00%,  such  rate  shall  be  deemed  to 1.000.00%  for  the  purposes  of  this
Agreement. 

	
	
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“Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of
a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase option, call or similar right of
a third party with respect to such securities.
“Loan Account” has the meaning assigned to such term in Section 2.23(a).
“Loan  Documents”  means  this  Agreement,  the  First  Amendment,  the  Second
Amendment,  the  Third Amendment,  the  Notes,  the  Letters  of  Credit,  any  Letter  of  Credit
applications, the Fee Letter, all Borrowing Base Certificates, the Blocked Account Agreements,
the DDA Notifications, the Security Documents, any Extension Amendment, all other agreements,
instruments, documents and certificates identified in Section 5.01 executed and delivered to, or in
favor of, the Agent or any Lenders and any other instrument or agreement executed and delivered
in connection herewith or therewith.  Any reference in this Agreement or any other Loan Document
to  a  Loan  Document  shall  include  all  appendices,  exhibits  or  schedules  thereto,  and  all
amendments,  restatements,  supplements  or  other  modifications  thereto,  and  shall  refer  to  this
Agreement or such Loan Document as the same may be in effect at any and all times such reference
becomes operative.
“Loan Guarantor” means each Borrower.
“Loan Guaranty” means Article III of this Agreement.
“Loans”  shall  mean  all  loans  (including,  without  limitation,  Revolving  Loans,  Initial
Loans, Extended Loans and Swingline Loans) at any time made to the Borrowers or for account
of the Borrowers pursuant to this Agreement.
“Margin Stock” means “margin stock” within the meaning of Regulation T, Regulation U
and Regulation X, as applicable.
“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
property, assets, or condition, financial or otherwise, of the Parent Borrower and its Subsidiaries
taken as a whole, (b) the validity or enforceability of this Agreement or any of the other Loan
Documents or (c) any of the material rights or remedies of the Agent, the Issuing Lenders or the
Lenders hereunder or thereunder; provided that, on or prior to January 30, 2021, no such material
adverse  effect  directly  related  to  or  solely  arising  from  any  effects  publicly  disclosed  by  the
Borrower of the COVID-19 pandemic on the Parent Borrower and its Subsidiaries taken as a whole
and  their  business,  or  the  reasonably  foreseeable  consequences and duration of the continuing
effect of the COVID-19 pandemic so long as such consequences are not having a disproportionate
impact on the Parent Borrower and its Subsidiaries taken as a whole when compared to other
similarly situated companies, shall be deemed by itself, either alone or in combination, to constitute
a Material Adverse Effect.
“Material Indebtedness” means (a) the Bonds and (b) Indebtedness (other than the Loans
and Letters of Credit), or obligations in respect of one or more Hedging Agreements, of any one
or more of the Borrowers in an aggregate principal amount exceeding $100,000,000.  For purposes 

	
	
  33

of determining Material Indebtedness, the “principal amount” of the obligations of the Borrowers
or  any  Subsidiary  in  respect  of  any  Hedging  Agreement  at  any  time  shall  be  the  maximum
aggregate amount (giving effect to any netting agreements) that such Borrower or such Subsidiary
would be required to pay if such Hedging Agreement was terminated at such time.
“Material Subsidiary” means any Domestic Subsidiary which, at any time, owns property
of the same type as the Collateral, the book value of which property exceeds $500,000; provided
that if the aggregate book value of all such property of Domestic Subsidiaries which are not then
Subsidiary  Borrowers  is  in  excess  of  $1,000,000,  then  the  Parent  Borrower  shall  promptly
designate Domestic Subsidiaries which are not then Subsidiary Borrowers and which own any
such property as Material Subsidiaries (and cause such designated Material Subsidiaries to comply
with the requirements of Section 6.13(a)) to the extent necessary so that the aggregate book value
of all such property of Domestic Subsidiaries which are not then Subsidiary Borrowers is less than
$1,000,000; provided further that a Subsidiary will be considered to be a Material Subsidiary if it
is a Subsidiary Borrower.
“Maturity Date” means, (a) as to the Initial Loans, the Commitment Termination Date,
(b) as to any Extended  Loans, the applicable maturity date related to any Extension Series of
Extended Commitments, or (c) as to the Swingline Loans, the Swingline Maturity Date.
“Maximum Rate” has the meaning provided therefor in Section 10.14.
“Minority Interests” means, with respect to any Person, an amount not to exceed 30% of
the Equity Interests in such Person.
“Minority Lenders” has the meaning provided therefor in Section 10.03(c).
“Moody’s” means Moody’s Investors Service, Inc., and any successor to its rating agency
business.
“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.
“Net  Income”  means,  for  any  period  with  respect  to  the  Parent  Borrower  and its
Subsidiaries, on a consolidated basis, the net income (or loss) of such Persons for such period taken
as a single accounting period determined in conformity with GAAP, provided that there shall be
excluded (a) the income (or loss) of any Person in which any other Person has an interest, except
to the extent of the amount of dividends or other distributions actually paid to the Parent Borrower
or  any  Subsidiary  by  such  Person  during  such  period,  (b)  the  income  (or  loss)  of  any  Person
accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Parent
Borrower or any Subsidiary or that Person’s assets are acquired by the Parent Borrower or any
Subsidiary, and (c) the income of any direct or indirect Subsidiary of the Parent Borrower or a
Subsidiary to the extent that the declaration or payment of dividends or similar distributions by
that Subsidiary of that income is not at the time permitted by operation of the terms of its charter
or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to that Subsidiary.
“New Blocked Accounts” has the meaning provided therefor in Section 2.24(c). 

	
	
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“Non-Defaulting Lender” means, at any time, any Lender that is not a Defaulting Lender
at such time.
“Non-Extending Lender” has the meaning provided therefor in Section 2.20(b).
“Non-Renewal Notice” has the meaning provided therefor in Section 2.06(b)(ii).
“Non-Renewal Notice Date” has the meaning provided therefor in Section 2.06(b)(ii).
“Non-Borrower Credit Card Proceeds” means the proceeds of any credit card charges
from major credit card processors such as MasterCard, Visa, Discover, and the like attributable to
the business operations of any Person which is not a Subsidiary Borrower.
“Notes” shall mean (a) the promissory notes of the Borrowers substantially in the form of
Exhibit B-1, each payable to the applicable Lender, evidencing the Revolving Loans, and (b) the
promissory  note  of  the  Borrowers  substantially  in  the  form  of Exhibit B-2,  payable  to  the
Swingline Lender, evidencing the Swingline Loans.
“NYFRB” means the Federal Reserve Bank of New York.
“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in
effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day
that is not a Business Day, for the immediately preceding Business Day); provided that if none of
such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the
rate  for  a  federal  funds  transaction  quoted  at  11:00  a.m.  on  such  day  received to by the
Administrative Agent from a Federal federal funds broker of recognized standing selected by it;
provided, further, that if any of the aforesaid rates shall as so determined would be less than zero,
such rate shall be deemed to be zero for purposes of this Agreement.
“NYFRB’s Website” means the website of the NYFRB at http://www.newyorkfed.org, or
any successor source.
“Obligated Party” has the meaning assigned to such term in Section 3.02.
“Obligations” means (a) the payment by the Borrowers of (i) the principal of, and interest
on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set
for prepayment or otherwise (including any interest that accrues after the commencement of any
case or proceeding by or against any Borrower in a bankruptcy, whether or not allowed in such
case or proceeding), (ii) each payment required to be made by the Borrowers under this Agreement
in  respect  of  any  Letter  of  Credit,  when  and  as  due,  including payments  in  respect  of
reimbursement of disbursements, interest thereon and obligations to provide cash collateral and
(iii)  all  other  monetary  obligations,  including  fees,  costs,  expenses  and  indemnities,  whether
primary, secondary, direct, contingent, fixed or otherwise, of the Borrowers to the Secured Parties
under  this  Agreement  and  the  other  Loan  Documents,  (b)  the  performance  of  all  covenants,
agreements, obligations and liabilities of the Borrowers under or pursuant to this Agreement and
the other Loan Documents, (c) the payment and performance of all the covenants, agreements,
obligations and liabilities of each Borrower under or pursuant to this Agreement, and the other
Loan  Documents,  and  (d)  all  Bank  Product  Obligations;  provided that  Excluded  Hedging 

	
	
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Obligations of any Borrower shall in any event be excluded from “Obligations” owing by such
Borrower.
“Obligor” means each Borrower.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a
result of a present or former connection between such Recipient and the jurisdiction imposing such
Taxes (other than a connection arising from such Recipient having executed, delivered, become a
party to, performed its obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to, or enforced, any Loan Document, or
sold or assigned an interest in any Loan, Letter of Credit, any other Guaranteed obligation or any
Loan Document).
“Other Store Proceeds” means any amounts collected by any Subsidiary Borrower from
any Person and deposited into a DDA of such Subsidiary Borrower representing payments made
by any Person on account of such Person’s liabilities on account of the Parent Borrower’s private
label credit card receivables.
“Other Taxes” means any and all present or future stamp, court, documentary, intangible,
recording, filing, excise, property or similar Taxes arising from any payment made hereunder or
under any other Loan Document or from the execution, delivery, performance, enforcement or
registration  of,  or  from  the  registration,  receipt  or  perfection  of  a  security  interest  under,  or
otherwise with respect to, this Agreement or any other Loan Document, except (i) any such Taxes
that are Other Connection Taxes imposed with respect to an assignment (other than an assignment
under Section 2.30(b)) and (ii) any Excluded Taxes.
“Overadvance”  means,  at  any  time  of  calculation,  a  circumstance  in  which  the Credit
Extensions exceed the lesser of (a) the Total Commitment or (b) the Borrowing Base.
“Overnight  Bank  Funding  Rate”  means,  for  any  day,  the  rate  comprised  of  both
overnight federal funds and overnight eurodollar borrowings by U.S.-managed banking offices of
depository institutions, as such composite rate shall be determined by the NYFRB as set forth on
its public website the NYFRB’s Website from time to time, and published on the next succeeding
Business Day by the NYFRB as an overnight bank funding rate (from and after such date as the
NYFRB shall commence to publish such composite rate).
“Paid in Full” or “Payment in Full” means, (a) the indefeasible payment in full in cash
of all outstanding Loans and LC Disbursements, together with accrued and unpaid interest thereon,
(b) the termination, expiration, or cancellation and return of all outstanding Letters of Credit (or
alternatively, with respect to each such Letter of Credit, the furnishing to the Agent of a cash
deposit, or at the discretion of the Agent a backup standby letter of credit satisfactory to the Agent
and the applicable Issuing Lender, in an amount equal to 103% of the Letter of Credit Outstandings
with respect to such Letter of Credit as of the date of such payment), (c) the indefeasible payment
in full in cash of the accrued and unpaid fees, (d) the indefeasible payment in full in cash of all
reimbursable expenses and other Obligations (other than Unliquidated Obligations for which no
claim  has  been  made  and  other  obligations  expressly  stated  to  survive  such  payment  and
termination  of  this  Agreement),  together  with  accrued  and  unpaid  interest  thereon,  (e)  the 

	
	
  36

termination  of  all  Commitments,  and  (f)  the  termination  of  the Bank  Product  Obligations  or
entering into other arrangements satisfactory to the Secured Parties counterparties thereto.
“Parent” means,  with  respect  to  any  Lender,  any  Person  as  to  which  such Lender  is,
directly or indirectly, a Subsidiary.
“Parent Borrower” means Dillard’s, Inc., a Delaware corporation.
“Parent  Borrower  Blocked  Account”  has  the  meaning  provided  therefor  in
Section 2.24(c).
“Parent Borrower Blocked Account Agreement” means that certain Blocked Account
Control Agreement by and among the Parent Borrower, the Agent, and JPMorgan, as depositary
bank, with respect to the Parent Borrower Blocked Account.
“Participant” has the meaning set forth in Section 10.06(e).
“Participant Register” has the meaning set forth in Section 10.06(e).
“Payment” has the meaning set forth in Section 9.11(a).
“Payment Notice” has the meaning set forth in Section 9.11(b).
“PBGC”  means  the  Pension  Benefit  Guaranty  Corporation  referred  to  and  defined  in
ERISA and any successor entity performing similar functions.
“Perfection  Certificate” means a certificate in the form of Annex 1 to the Security
Agreement or any other form approved by the Agent.
“Perishable Inventory” means Inventory that is subject to decay, spoilage, or destruction
solely due to the passage of time.
“Permitted Discretion” means a determination made in good faith and in the exercise of
reasonable (from the perspective of a secured asset-based lender) business judgment.
“Permitted Encumbrances” means:
(a) Liens imposed by law for Taxes that are not yet due or are being contested
in compliance with Section 6.05;
(b) landlord’s,  carriers’,  warehousemen’s,  mechanics’,  materialmen’s,
repairmen’s and other like Liens imposed by law, arising in the ordinary course of business
and securing obligations that are not overdue by more than 90 days or are being contested
in compliance with Section 6.05;
(c) pledges and deposits made in the ordinary course of business in compliance
with workers’ compensation, unemployment insurance, old-age pension and other social
security laws or regulations; 

	
	
  37

(d) deposits to secure the performance of bids, trade contracts, leases, contracts
(other than for the repayment of borrowed money), statutory obligations, surety and appeal
bonds,  performance  bonds  and  other  obligations  of  a  like  nature,  in  each  case  in  the
ordinary course of business;
(e) judgment Liens in respect of judgments that do not constitute an Event of
Default under clause (k) of Article VIII;
(f) easements,  zoning  restrictions,  rights-of-way  and  similar  encumbrances
(and  with  respect  to  leasehold  interests,  mortgages,  obligations, liens and other
encumbrances incurred, created, assumed or permitted to exist and arising by, through or
under or asserted by a landlord or owner of leased property, with or without the consent of
the lessee) on real property imposed by law or arising in the ordinary course of business
that do not secure any monetary obligations and do not materially detract from the value
of the affected property or interfere with the ordinary conduct of business of any Borrower
or any Subsidiary;
(g) licenses,  leases,  or  subleases  granted  to  third  Persons  or  to  the  Parent
Borrower or its Subsidiaries by the Parent Borrower and its Subsidiaries in the ordinary
course of business;
(h) Liens encumbering pledges and deposits made to secure obligations arising
from statutory, regulatory, contractual or warranty requirements of the Parent Borrower
and its Subsidiaries, including workers’ compensation, unemployment insurance, old-age
pension  and  other  social  security  laws  or  regulations  (excluding  deposits  securing  the
repayment of Indebtedness);
(i) Liens  encumbering  customary  initial  deposits  and  margin  deposits,  and
other Liens incurred in the ordinary course of business and which are within the general
parameters customary in the industry securing obligations, under commodities agreements;
(j) any (i) interest or title of a lessor or sublessor under any lease, (ii) restriction
or encumbrance that the interest or title of such lessor or sublessor may be subject to, or
(iii)  subordination  of  the  interest  of  the  lessee  or  sublessee  under  such  lease  to  any
restriction or encumbrance referred to in the preceding clause (ii);
(k) Liens  on  any  property  or  assets  of  any  Person  existing  at  the  time  such
Person  is  merged  into  or  consolidated  with  the  Parent  Borrower or  any  Subsidiary,
provided that such Lien was not incurred in contemplation thereof and does not extend to
any other property of the Parent Borrower or any of its Subsidiaries;
(l) Liens arising from filing UCC financing statements relating solely to leases
not prohibited by this Agreement;
(m) Liens in favor of customs and revenue authorities arising as a matter of law
to secure payment of customs duties in connection with the importation of goods; 

	
	
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(n) Liens solely on cash earnest money deposits made by the Parent Borrower
or any Subsidiary in connection with any letter of intent or purchase agreement permitted
hereunder; provided that such Liens are granted on customary business terms and in the
ordinary course of business of the Parent Borrower or such Subsidiary; and
(o) Liens (i) of a collection bank arising under Section 4-210 of the UCC on
items in the course of collection and (ii) in favor of a banking institution arising as a matter
of  law  encumbering  deposits  (including  the  right  of  set-off)  and  which  are  within  the
general parameters customary in the banking industry, in each case existing solely with
respect to cash or cash equivalents.
provided that, except as provided in any one or more of clauses (a) through (o) above, the term
“Permitted Encumbrances” shall not include any Lien securing Indebtedness.
“Permitted Investments” means each of the following:
(a) direct obligations of, or obligations the principal of and interest on which
are unconditionally guaranteed by, the United States of America (or by any agency thereof
to the extent such obligations are backed by the full faith and credit of the United States of
America), in each case maturing within one year from the date of acquisition thereof;
(b) investments in commercial paper maturing within 270 days from the date
of acquisition thereof and having, at such date of acquisition, a credit rating of at least A-1
or P-1 from S&P or from Moody’s;
(c) investments  in  certificates  of  deposit,  banker’s  acceptances  and  time
deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed
by  or  placed  with,  and  demand  deposit  and  money  market  deposit accounts  issued  or
offered by, any domestic office of any commercial bank organized under the laws of the
United States of America or any State thereof that has a combined capital and surplus and
undivided profits of not less than $500,000,000; and
(d) fully collateralized repurchase agreements with a term of not more than 30
days  for  securities  described  in clause (a)  above  (without  regard  to  the  limitation  on
maturity contained in such clause) and entered into with a financial institution satisfying
the criteria described in clause (c) above or with any primary dealer;
provided that, notwithstanding the foregoing, after the occurrence and during the continuance of a
Cash Control Event, no such investments shall be permitted by a Subsidiary Borrower unless (i)
either (A) no Loans are then outstanding, or (B) the investment is a temporary investment pending
expiration of an Interest Period for a Eurocurrency Loan, the proceeds of which investment will
be applied to the Obligations after the expiration of such Interest Period,  and (ii) such investments
are pledged by the Subsidiary Borrower to the Agent as additional collateral for the Obligations
pursuant to such agreements as may be reasonably required by the Agent.
“Permitted  Joint  Venture” means, with respect to any Subsidiary Borrower, a joint
venture or partnership in which each of the following conditions are satisfied: 

	
	
  39

(a) The Parent Borrower shall have furnished the Agent with five (5) days prior
notice of such intended joint venture or partnership and shall have furnished the Agent with
a  current  draft  of  the  joint  venture  or  partnership  agreement  and  other  applicable
organizational documents, and a summary of the structure and terms of the transaction, and
such other information as the Agent may reasonably require;
(b) No Default or Event of Default shall exist at the time of, or arise from, the
Subsidiary Borrower’s entering into such joint venture or partnership; and
(c) The  joint  venture  or  partnership  shall  be  for  the  purpose  of  acquiring,
constructing, managing and/or operating an enclosed mall, an open-air shopping center or
a stand alone store, in each case in which a store operated by a Borrower or a Subsidiary
of a Borrower is to be located.
“Permitted  Overadvance”  means  an  Overadvance  determined  by  the  Agent,  in  its
reasonable discretion, (a) which is made to maintain, protect or preserve the Collateral and/or the
Lenders’ rights under the Loan Documents, or (b) which is otherwise in the Lenders’ interests;
provided that Permitted Overadvances shall not (i) exceed ten percent (10%) of the lesser of the
then Borrowing Base or the then Total Commitment, in the aggregate outstanding at any time or
(ii) remain outstanding for more than thirty (30) consecutive Business Days, unless in case of
clause (ii), the Required Supermajority Lenders otherwise agree; and provided further that the
foregoing shall not (A) modify or abrogate any of the provisions of Section 2.06(f) regarding the
Lenders’ obligations with respect to LC Disbursements, or  (B) result in  any claim or liability
against the Agent (regardless of the amount of any Overadvance) for “inadvertent Overadvances”
(i.e. where an Overadvance results from changed circumstances beyond the control of the Agent
(such as a reduction in the collateral value)), and further provided that in no event shall the Agent
make an Overadvance, if after giving effect thereto, the principal amount of the Credit Extensions
would exceed the Total Commitment.
“Person”  means  any  natural  person,  corporation,  limited  liability  company,  trust,  joint
venture, association, company, partnership, Governmental Authority or other entity.
“Plan”  means  any  employee  pension  benefit  plan  (other  than  a  Multiemployer  Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which any Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5)
of ERISA or which is currently or as of the date on which the representations herein are deemed
made is, or was at any time during the six (6) calendar years preceding the date hereof, sponsored,
maintained or contributed to by any Borrower or any ERISA Affiliate.
“Plan  Asset  Regulations”  means  29  CFR  §  2510.3-101  et  seq.,  as  modified  by
Section 3(42) of ERISA, as amended from time to time.
“Pledge Agreement” means the Pledge and Security Agreement dated as of the Second
Amendment Effective Date between the Parent  Borrower and the Agent for the benefit of the
Secured Parties, as amended and in effect from time to time.
“Prepayment” has the meaning set forth in Section 7.06(b)(iii). 

	
	
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“Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan as its prime rate in effect at its principal office in New York Citylast quoted by The
Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote
such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal
Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or,
if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Agent)
or any similar release by the Federal Reserve Board (as determined by the Agent).  Each change
in the Prime Rate shall be effective from and including the date such change is publicly announced
or quoted as being effective.
“Proceeding”  means  any claim,  litigation,  investigation,  action,  suit,  arbitration  or
administrative, judicial or regulatory action or proceeding in any jurisdiction.
“PTE” means a prohibited transaction class exemption issued by the U.S. Department of
Labor, as any such exemption may be amended from time to time.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be
interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
“QFC Credit Support” has the meaning given to such term in Section 10.23.
“Qualified ECP Guarantor” means, in respect of any Hedging Obligation, each Borrower
that has total assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the
relevant  security  interest  becomes  or  would  become  effective  with  respect  to  such  Hedging
Obligation  or  such  other  person  as  constitutes  an  “eligible  contract  participant”  under  the
Commodity  Exchange  Act  or  any  regulations  promulgated  thereunder  and  can  cause  another
person to qualify as an “eligible contract participant” at such time by entering into a keepwell
under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
“Quarterly  Dates”  means  the  last  Business  Day  of  each  fiscal  quarter  of  the  Parent
Borrower in each of its fiscal years, the first of which shall be the first such day after the Effective
Date.
“Real Estate” means all land, together with the buildings, structures, parking areas, and
other improvements thereon, now or hereafter owned or leased by any Borrower, including all
easements,  rights-of-way,  and  similar  rights  relating  thereto  and  all  leases,  tenancies,  and
occupancies thereof.
“Recipient” means, as applicable, (a) the Agent, (b) any Lender and (c) any Issuing Lender,
or any combination thereof (as the context requires).
“Reference Time” with respect to any setting of the then-current Benchmark means (1) if
such Benchmark is LIBO Rate, 11:00 a.m. (London time) on the day that is two London banking
days preceding the date of such setting, and (2) if such Benchmark is not LIBO Rate, the time
determined by the Agent in its reasonable discretion.
“Register” has the meaning set forth in Section 10.06(c). 

	
	
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“Regulated Lender Entity” has the meaning assigned to such term in Section 6.13(b).
“Regulation T” means Regulation T of the Federal Reserve Board, as from time to time
in effect and all official rulings and interpretations thereunder or thereof.
“Regulation U” means Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.
“Regulation X” means Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.
“Related Parties” means, with respect to any specified Person, such Person’s Affiliates
and  the  respective  directors,  officers,  partners,  members,  trustees,  employees,  agents,
administrators,  managers,  representatives  and  advisors  of  such Person  and  of  such  Person’s
Affiliates.
“Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, migrating, disposing or dumping of any substance into
the environment.
“Relevant Governmental Body” means the Federal Reserve Board and/or the NYFRB,
or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB
or, in each case, any successor thereto.
“Rental and Lease Expense” means, for any period, all items that, in accordance with
GAAP would be classified as rental and lease expense of the Parent Borrower and its Subsidiaries
on a consolidated basis that are included on the consolidated statement of earnings of the Parent
Borrower, in each case determined in accordance with GAAP; provided that Rental and Lease
Expense shall not include any Rental and Lease Expense incurred during such period under leases
that  have  been  assigned  to  and  assumed  by  any  Person  (other  than  the  Parent  Borrower  or  a
Subsidiary) or that constitute or relate to discontinued operations, in each case, for which the Parent
Borrower and its Subsidiaries are no longer obligated.
“Replacement Deposit Accounts” has the meaning provided therefor in Section 2.24(c).
“Replacement Institutions” has the meaning provided therefor in Section 2.24(c).
“Report” means reports prepared by the Agent or another Person showing the results of
appraisals, field examinations or audits pertaining to the assets of the Borrowers from information
furnished by or on behalf of the Borrowers, after the Agent has exercised its rights of inspection
pursuant to this Agreement, which Reports may be distributed to the Lenders by the Agent.
“Repurchase” has the meaning set forth in Section 7.06(a)(iv).
“Required Lenders” means, (a) Lenders having Commitments outstanding representing
more  than  50%  of  the  Total  Commitments,  or  (b)  if  the  Commitments  have  been  terminated,
Lenders whose percentage of the outstanding Credit Extensions (after settlement and repayment
of all Swingline Loans by the Lenders) represent more than 50% of all such Credit Extensions. 

	
	
  42

“Required  Supermajority  Lenders”  means,  (a)  Lenders  having  Commitments
outstanding  representing  at  least  66  2/3%  of  the  Total  Commitments  outstanding  or  (b)  if  the
Commitments  have  been  terminated,  Lenders  whose  percentage  of  the  outstanding  Credit
Extensions (after settlement and repayment of all Swingline Loans by the Lenders) represent not
less than 66 2/3% of all such Credit Extensions.
“Reserves” means the Inventory Reserves and Availability Reserves, as applicable.
“Resolution Authority” means an EEA Resolution Authority or, with respect to any UK
Financial Institution, a UK Resolution Authority.
“Responsible Officer” means the president, chief executive officer or Financial Officer of
a Borrower.
“Restricted  Payment”  means  any  dividend  or  other  distribution  (whether  in  cash,
securities  or  other  property)  with  respect  to  any  shares  of  any class of capital stock of any
Borrower, or any payment (whether in cash, securities or other property), including any sinking
fund  or  similar  deposit,  on  account  of  the  purchase,  redemption,  retirement,  acquisition,
cancellation or termination of any such shares of capital stock of any Borrower or any option,
warrant or other right to acquire any such shares of capital stock of any Borrower.
“Restrictions” has the meaning set forth in Section 7.04.
“Resulting Revolving Borrowings” shall have the meaning provided in Section 2.09(d).
“Revolving  Loans”  means  all  Loans  at  any  time  made  by  a  Lender  pursuant  to
Section 2.01.
“S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services
LLC business, and any successor to its rating agency business.
“Sanctioned Country” means, at any time, a country, region or territory which is itself the
subject or target of any Sanctions (at the Second Third Amendment Effective Date, Crimea, Cuba,
Iran, North Korea and Syria).
“Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related
list  of  designated  Persons  maintained  by  the  Office  of  Foreign Assets Control of the U.S.
Department of the Treasury, the U.S. Department of State, the United Nations Security Council,
the European Union or , any European Union member state, Her Majesty’s Treasury of the United
Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in
a Sanctioned Country, or (c) any Person more than 50% owned or controlled by any such Person
or Persons described in the foregoing clauses (a) or (b).
“Sanctions”  means  all  economic  or  financial  sanctions  or  trade  embargoes imposed,
administered  or  enforced  from  time  to  time  by  (a)  the  U.S.  government,  including  those
administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or
the U.S. Department of State, or (b) the United Nations Security Council, the European Union, 

	
	
  43

any  European  Union  member  state,  Her  Majesty’s  Treasury  of  the United  Kingdom  or  other
relevant sanctions authority.
“Scheduled  Payments”  means,  as  of  any  date  of  determination,  scheduled  principal
payments on account of Indebtedness of the Parent Borrower and its Subsidiaries which were
required to have been made during the preceding twelve fiscal month period, as determined in
accordance with GAAP.
“SEC” means the Securities and Exchange Commission of the U.S.
“Section 2.20 Additional Amendment” shall have the meaning provided in Section 2.20.
“Second Amendment” means that certain Amendment No. 2 to Credit Agreement dated
as of the Second Amendment Effective Date among the Borrowers, as borrowers, the Lenders
party thereto and the Agent.
“Second Amendment Arrangers” means each of JPMorgan, Wells Fargo Bank, N.A.,
Regions Capital Markets and Citizens Bank, N.A., in their capacity as joint lead arranger and joint
bookrunner for the Second Amendment.
“Second Amendment Documentation Agent” means Citizens Bank, N.A., in its capacity
as documentation agent for the Second Amendment.
“Second Amendment Effective Date” means the date on which the conditions specified
in Section 5.01 are satisfied (or waived by the Required Lenders), which, for the avoidance of
doubt was April 30, 2020.
“Second Amendment Syndication Agents” means each of Wells Fargo Bank, N.A. and
Regions Capital Markets, in their capacity as syndication agent for the Second Amendment.
“Secured Parties” has the meaning assigned to such term in the Security Agreement.
“Security Agreement” means the Security Agreement dated as of the Second Amendment
Effective  Date  among  the  Subsidiary  Borrowers  and  the  Agent  for  the  benefit  of  the  Secured
Parties, as amended and in effect from time to time.
“Security Documents” means the Security Agreement, the Pledge Agreement, and each
other  security  agreement  or  other  instrument  or  document  executed  and  delivered  pursuant  to
Section 6.13 to secure any of the Obligations.
“Settlement Date” has the meaning provided in Section 2.07(b).
“Shrink” means Inventory which has been lost, misplaced, stolen, or which is otherwise
unaccounted for.
“SOFR” means, with respect to any dayBusiness Day, means a rate per annum equal to
the secured overnight financing rate published for such day by the NYFRB, as the administrator
of the benchmark (or a successor administrator), on the Federal Reserve Bank of New York’s 

	
	
  44

Website.for  such  Business  Day  published  by  the  SOFR  Administrator  on  the  SOFR
Administrator’s Website at approximately 8:00 a.m. (New York City time) on the immediately
succeeding Business Day.
“SOFR Administrator” means the NYFRB (or a successor administrator of the secured
overnight financing rate).
“SOFR  Administrator’s  Website”  means  the  NYFRB’s  Website,  currently  at
http://www.newyorkfed.org,  or  any  successor  source  for  the  secured  overnight  financing  rate
identified as such by the SOFR Administrator from time to time.
“SOFR-Based Rate” means SOFR, Compounded SOFR or Term SOFR.
“Solvent” means, with respect to any Person and its Subsidiaries on a consolidated basis
on a particular date, that on such date (a) at fair valuations, all of the properties and assets of such
Person and its Subsidiaries are greater than the sum of the debts, including contingent liabilities,
of such Person and its Subsidiaries, on a consolidated basis, (b) the present fair saleable value of
the properties and assets of such Person and its Subsidiaries is not less than the amount that would
be required to pay the probable liability of such Person and its Subsidiaries on its debts as they
become absolute and matured, on a consolidated basis, (c) such Person and its Subsidiaries, on a
consolidated basis, is able to realize upon its properties and assets and pay its debts and other
liabilities, contingent obligations and other commitments as they mature in the normal course of
business, (d) such Person and its Subsidiaries, on a consolidated basis, does not intend to, and does
not believe that it will, incur debts beyond such Person’s and its Subsidiaries’ ability to pay as such
debts mature, and (e) such Person and its Subsidiaries, on a consolidated basis, is not engaged in
a business or a transaction, and is not about to engage in a business or transaction, for which such
Person’s or its Subsidiaries’ properties and assets would constitute unreasonably small capital after
giving due consideration to the prevailing practices in the industry in which such Person or its
Subsidiaries is engaged.
“Specified Bank Product Amount” or “Specified Bank Product Amounts” have the
meanings set forth in the definition of “Specified Bank Products”; provided that at no such time
shall the Specified Bank Product Amounts exceed $25,000,00050,000,000.
“Specified Bank Products” shall mean any Bank Product for which the applicable Lender
(or  its  Affiliate)  and  the  Parent  Borrower  have  provided  the  Agent  written  notice  of:  (a)  the
existence and nature of  the accommodation that is to be a “Specified Bank Product”, (b) with
respect to each Specified Bank Product, the Lender’s (or its Affiliate’s) and the Parent Borrower’s
agreement as to the maximum dollar amount of the applicable Borrower’s obligations arising under
such Specified Bank Product (each such amount, the “Specified Bank Product Amount” and,
collectively, all such amounts, the “Specified Bank Product Amounts”) that shall be included in
the Bank Product Reserves, and (c) the methodology agreed upon by the applicable Lender (or its
Affiliate) and the Parent Borrower to determine the Specified Bank Product Amount.  After any
of the foregoing have been established as a Bank Product hereunder, the Specified Bank Product
Amount  may  thereafter  be  changed  by  the  Agent  with  respect  to  Bank  Products  provided  by
JPMorgan (or one of its Affiliates) or by written notice to the Agent pursuant to an agreement
between the applicable Lender (or its Affiliate) and the Parent Borrower, as applicable; provided 

	
	
  45

that no change in a Specified Bank Product Amount may cause Excess Availability to be less than
zero.  Notwithstanding the foregoing, the notification requirements set forth in this definition do
not need to be complied with when JPMorgan (or one of its Affiliates)  is the provider of the
applicable Bank Product.
“Specified Event of Default” means the occurrence of any Event of Default described in
(a) Section 8.01(d) (but as it relates to Section 7.09, only), which is not cured within five (5)
Business Days, (b) Section 8.01(d) (but as it relates to Section 2.24, only), which is not cured
within three (3) days, or (c) Section 8.01(a), Section 8.01(b), Section 8.01(d) (but as it relates to
Section 6.01(e) and Section 7.08, only), Section 8.01(h), Section 8.01(i), or Section 8.01(j).
“Specified Existing Commitment” shall mean any Existing Commitments belonging to a
Specified Existing Commitment Class.
“Specified  Existing  Commitment  Class”  shall  have  the  meaning  provided  in
Section 2.20.
“Specified Subsidiaries” means, collectively, DICL, CDI Contractors, LLC, CDI-Hunt
Arkansas JV, Dillard’s Benelux, LLC and UT Center, Inc.
“Standby Letter of Credit” means any Letter of Credit other than a Commercial Letter of
Credit.
“Standby  Letter  of  Credit  Outstandings” means, at any time, the sum of (a) the
aggregate undrawn amount of all outstanding Standby Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements relating to Standby Letters of Credit that have not yet
been reimbursed by or on behalf of the Borrowers at such time.  The Standby Letter of Credit
Outstandings of any Lender at any time shall be its Commitment Percentage of the total Standby
Letter of Credit Outstandings at such time.
“Standby  Letters  of  Credit  Sublimit”  has  the  meaning  assigned  to  such  term  in
Section 2.06(c).
“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of
the  maximum  reserve percentages percentage (including  any  marginal,  special,  emergency  or
supplemental  reserves) expressed  as  a  decimal established  by  the  Board  to  which  the
Administrative Agent is subject with respect to the Adjusted LIBO Rate, for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve
percentages  shall  include  those  imposed  pursuant  to  such  Regulation  D  of  the  Board.
Eurocurrency Loans shall be deemed to constitute eurocurrency funding and to be subject to such
reserve requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under Regulation D of the Board or any comparable
regulation.  The Statutory Reserve Rate shall be adjusted automatically on and as of the effective
date of any change in any reserve percentage.
“Subsidiary”  means,  with  respect  to  any  Person  (the  “parent”)  at  any  date,  any
corporation,  limited  liability  company,  partnership,  association  or  other  entity  the  accounts  of 

	
	
  46

which  would  be  consolidated  with  those  of  the  parent  in  the  parent’s  consolidated  financial
statements if such financial statements were prepared in accordance with GAAP as of such date,
as well as any other corporation, limited liability company, partnership, association or other entity
of which securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held by the parent and/or
one  or  more  subsidiaries  of  the  parent.    Unless  otherwise  specified,  “Subsidiary”  means  a
Subsidiary of the Parent Borrower.  In no event shall (a) a Permitted Joint Venture be deemed a
Subsidiary for purposes of Article VII or (b) a Specified Subsidiary be deemed a Subsidiary for
purposes of Article III, Article IV, Article VI, or Article VII.
“Subsidiary Borrowers” means all Borrowers other than the Parent Borrower; provided
that no Excluded Subsidiary shall be required to be a Subsidiary Borrower.
“Subsidiary Guarantor” has the meaning assigned to such term in this Agreement prior
to giving effect to the Second Amendment.
“Supported QFC” has the meaning given to such term in Section 10.23.
“Swingline  Commitment”  means,  with  respect  to  each  Swingline  Lender,  the
commitment of such Swingline Lender to make Swingline Loans pursuant to Section 2.05 in an
aggregate  principal  amount  at  any  one  time  outstanding  not  to  exceed  $100,000,000.    The
Swingline Commitment is part of, and not in addition to, the Total Commitment.
“Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline
Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be the
sum of (a) its Commitment Percentage of the aggregate principal amount of all Swingline Loans
outstanding  at  such  time  (excluding,  in  the  case  of  any  Lender that  is  a  Swingline  Lender,
Swingline Loans made by it outstanding at such time) and (b) in the case of any Lender that is a
Swingline Lender, the aggregate principal amount of all Swingline Loans made by such Lender
outstanding  at  such  time  to  the  extent  that  the  other  Lenders  shall  not  have  funded  their
participations in such Swingline Loans, in each case adjusted to give effect to any reallocation
under Section 2.31(c) of the Swingline Exposure of Defaulting Lenders in effect at such time.
“Swingline Lender” means JPMorgan and any other Lender designated as a Swingline
Lender  in  accordance  with Section  2.05(c),  in  their  capacity  as  a  lender  of  Swingline  Loans
hereunder, and any successor or replacement thereof.
“Swingline Loan” has the meaning assigned to such term in Section 2.05(a).
“Swingline  Maturity  Date”  shall  mean,  with  respect  to  any  Swingline  Loan,  the
Commitment Termination Date, or such later date as the Swingline Lender may hereafter consent
to pursuant to an Extension Amendment or another amendment hereto.
“Syndication Agents” means each of the Effective Date Syndication Agents, the First
Amendment  Syndication  Agents,  the  Second  Amendment  Syndication Agents  and  the Second
Third Amendment Syndication Agents.  

	
	
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“Synthetic  Lease”  means  any  lease  or  other  agreement  for  the  use  or  possession of
property creating obligations which do not appear as Indebtedness on the balance sheet of the
lessee  thereunder  but  which,  upon  the  insolvency  or  bankruptcy of  such  Person,  would  be
characterized as Indebtedness of such lessee without regard to the accounting treatment.
“Taxes” means any  and all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), value added taxes, or any other goods and services,
use or sales taxes, assessments, fees or other charges imposed by any Governmental Authority,
including any interest, additions to tax or penalties applicable thereto.
“Term  SOFR”  means ,  for  the  applicable  Corresponding  Tenor  as  of  the  applicable
Reference  Time, the  forward-looking  term  rate  based  on  SOFR  that  has  been  selected  or
recommended by the Relevant Governmental Body.
“Term SOFR Notice” means a notification by the Agent to the Lenders and the Parent
Borrower of the occurrence of a Term SOFR Transition Event.
“Term SOFR Transition Event” means the determination by the Agent that (a) Term
SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration
of Term SOFR is administratively feasible for the Agent and (c) a Benchmark Transition Event or
an  Early  Opt-in  Election,  as  applicable,  has  previously  occurred  resulting  in  a  Benchmark
Replacement in accordance with Section 2.16 that is not Term SOFR.
“Termination Date” shall mean the earliest to occur of (a) with respect to any Class of
Commitments or Loans, the Maturity Date applicable to such Class, (b) the date on which the
maturity of the Loans are accelerated and the Commitments are terminated in accordance with
Section 8.01, or (c) the date of the occurrence of any Event of Default pursuant to Section 8.01(h)
or Section 8.01(i).
“Third Amendment” means that certain Amendment No. 3 to Credit Agreement dated as
of the Third Amendment Effective Date among the Borrowers, as borrowers, the Lenders party
thereto and the Agent.
“Third Amendment Arrangers” means each of JPMorgan, PNC Capital Markets LLC,
Regions Capital Markets and Truist Securities, Inc., in their capacity as joint lead arranger and
joint bookrunner for the Third Amendment.
“Third Amendment Effective Date” means April 28, 2021.
“Third  Amendment  Syndication  Agents”  means  each  of  Bank  of  America,  N.A.,
Citizens  Bank,  N.A.  and  TD  Bank,  N.A.,  in  their  capacity  as  syndication  agent  for  the  Third
Amendment.
“Total Commitment” shall mean the sum of the Commitments of all the Lenders at such
time.  The Total Commitment as of the Second Third Amendment Effective Date is $800,000,000. 

	
	
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“Transactions” means the execution, delivery and performance by the Borrowers of this
Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions,
the use of the proceeds thereof and the issuance of Letters of Credit hereunder.
“Trigger Period” has the meaning provided therefor in Section 7.08.
“Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to
the Adjusted LIBO Rate or the Alternate Base Rate.
“UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York or in any other state the laws of which are required to be applied in connection with the
issue of perfection of security interests.
“UK Financial Institution” means any BRRD Undertaking (as such term is defined under
the PRA Rulebook (as amended form from time to time) promulgated by the United Kingdom
Prudential Regulation Authority) or any Person falling within IFPRU 11.6 of the FCA Handbook
(as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority,
which includes certain credit institutions and investment firms, and certain affiliates of such credit
institutions or investment firms.
“UK  Resolution  Authority”  means  the  Bank  of  England  or  any  other  public
administrative authority having responsibility for the resolution of any UK Financial Institution.
“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement
excluding  the related Benchmark  Replacement  Adjustment;  provided  that,  if  the Unadjusted
Benchmark Replacement as so determined would be less than 1.00%, the Unadjusted Benchmark
Replacement will be deemed to be 1.00% for the purposes of this Agreement..
“Unliquidated Obligations” means, at any time, any Obligations (or portion thereof) that
are  contingent  in  nature  or  unliquidated  at  such  time,  including  any  Obligation  that  is:  (a)  an
obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (b)
any other obligation (including any guarantee) that is contingent in nature at such time; or (c) an
obligation to provide collateral to secure any of the foregoing types of obligations.
“Unused Commitment” shall mean, on any day, (a) the Total Commitment then in effect,
minus (b) the Credit Extensions on such day.
“U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30)
of the Code.
“U.S. Special Resolution Regimes” has the meaning given to such term in Section 10.23.
“U.S.  Tax  Compliance  Certificate”  has  the  meaning  assigned  to  such  term  in
Section 2.28(f)(ii)(B)(3).
“USA  PATRIOT  Act”  means  the  Uniting  and  Strengthening  America  by  Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001. 

	
	
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“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.
“Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution
Authority, the write-down and conversion powers of such EEA Resolution Authority from time to
time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect
to  the  United  Kingdom,  any  powers  of  the  applicable  Resolution Authority  under  the  Bail-In
Legislation  to  cancel,  reduce,  modify  or  change  the  form  of  a  liability  of  any  UK  Financial
Institution  or any contract or instrument under which that liability arises, to convert all or part of
that liability into shares, securities or obligations of that Person or any other Person, to provide
that any such contract or instrument is to have effect as if a right had been exercised under it or to
suspend  any  obligation  in  respect  of  that  liability  or  any  of  the  powers  under  that  Bail-In
Legislation that are related to or ancillary to any of those powers.
Section 1.02 Terms Generally.  The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall  include  the  corresponding  masculine,  feminine  and  neuter forms.    The  words  “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.
The word “law” shall be construed as referring to all statutes, rules, regulations, codes and other
laws  (including  official  rulings  and  interpretations  thereunder  having  the  force  of  law  or  with
which  affected  Persons  customarily  comply)  and  all  judgments,  orders  and  decrees  of  all
Governmental Authorities.  The word “will” shall be construed to have the same meaning and
effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference
to any agreement, instrument or other document herein shall be construed as referring to such
agreement, instrument or other document as from time to time amended, restated, supplemented
or otherwise modified (subject to any restrictions on such amendments, restatements, supplements
or modifications set forth herein), (b) any definition of or reference to any statute, rule or regulation
shall be construed as referring thereto as from time to time amended, supplemented or otherwise
modified (including by succession of comparable successor laws), (c) any reference herein to any
Person  shall  be  construed  to  include  such  Person’s  successors  and  assigns  (subject  to  any
restrictions on assignments set forth herein) and, in the case of any Governmental Authority, any
other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the
words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein
to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections
of, and Exhibits and Schedules to, this Agreement, (f) any reference in any definition to the phrase
“at any time” or “for any period” shall refer to the same time or period for all calculations or
determinations within such definition, and (g) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.
Section 1.03 Accounting  Terms;  GAAP.    Except  as  otherwise  expressly  provided
herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP,
as in effect from time to time, provided that, if the Parent Borrower notifies the Agent that the
Parent Borrower requests an amendment to any provision hereof to eliminate the effect of any 

	
	
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change occurring after the Effective Date in GAAP or in the application thereof on the operation
of such provision (or if the Agent notifies the Parent Borrower that the Required Lenders request
an amendment to any provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then such provision shall
be interpreted on the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such provision amended in
accordance herewith.  Notwithstanding the foregoing, (a) all liabilities under or in respect of any
lease (whether now outstanding or at any time entered into or incurred) that, under GAAP as in
effect on the Effective Date, would be accrued as a Rental and Lease Expense and would not
constitute a Capital Lease Obligation, shall continue to be treated as Rental and Lease Expense in
accordance with GAAP as in effect on the Effective Date and shall not constitute a Capital Lease
Obligation, in each case, for purposes of the covenants set forth herein and all defined terms as
used  therein,  (b)  Indebtedness  shall  be  determined  without  giving  effect  to  the  application  of
Financial  Accounting  Standards  Board  Accounting  Standards  Codification  815  (and  related
interpretations) to the extent such application would otherwise increase or decrease the principal
amount of Indebtedness for any purpose hereunder as a result of accounting for any embedded
derivatives created by the terms of such Indebtedness and (c) all terms of an accounting or financial
nature used herein shall be construed, and all computations of amounts and ratios referred to herein
shall be made, (i) without giving effect to any election under Statement of Financial Accounting
Standards  159,  The  Fair  Value  Option  for  Financial  Assets  and  Financial  Liabilities,  or  any
successor  thereto  (including  pursuant  to  the  Accounting  Standards  Codification),  to  value  any
Indebtedness of the Parent Borrower or any Subsidiary at “fair value” as defined therein and (ii)
without giving effect to any treatment of Indebtedness in respect of convertible debt instruments
under Financial Accounting Standards Board Accounting Standards Codification 470-20 or 2105-
03 (or any other Accounting Standards Codification or Financial Accounting Standard having a
similar  result  or  effect)  to  value  any  such  Indebtedness  in  a  reduced  or  bifurcated  manner  as
described therein, it being agreed that such Indebtedness shall at all times be valued at the full
stated principal amount thereof.
Section 1.04 Classification of Loans, Commitments and Borrowings.  For purposes
of this Agreement, Loans and Commitments may be classified and referred to by Class (e.g., an
“Extended Loan” or “Extended Commitments”) or by Type (e.g., a “Eurocurrency Loan”) or by
Class and Type (e.g., a “Eurocurrency Extended Loan”).
Section 1.05 Status of Obligations.  The Borrowers agree that the Obligations hereunder
are senior in respect of any outstanding subordinated Indebtedness.
Section 1.06 Divisions.  For all purposes under the Loan Documents, in connection with
an any Division or plan of division under Delaware law (or any comparable event under a different
jurisidiction’s jurisdiction’s laws); : (a) if any asset, right, obligation or liability of any Person
becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to
have been transferred from the original Person to the subsequent Person, and (b) if any new Person
comes into existence, such new Person shall be deemed to have been organized and acquired on
the first date of its existence by the holders of its Equity Interests at such time.
Section 1.07 Interest Rates; LIBOR Notification.  The interest rate on Eurocurrency
Loans is determined by reference to the LIBO Rate, which is derived from the London interbank 

	
	
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offered  rate.    The  London  interbank  offered  rate  is  intended  to represent the rate at which
contributing banks may obtain short-term borrowings from each other in the London interbank
market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021,
it would no longer persuade or compel contributing banks to make rate submissions to the ICE
Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the
“IBA”) for purposes of the IBA setting the London interbank offered rate.  As a result, it is possible
that commencing in 2022, the London interbank offered rate may no longer be available or may
no longer be deemed an appropriate reference rate upon which to determine the interest rate on
Eurocurrency Loans.  In light of this eventuality, public and private sector industry initiatives are
currently underway to identify new or alternative reference rates to be used in place of the London
interbank offered rate.  Upon the occurrence of a Benchmark Transition Event , a Term SOFR
Transition Event or an Early Opt-In Opt-in Election, Section 2.16(c) provides a and (d) provide
the mechanism for determining an alternative rate of interest.  The Agent will promptly notify the
Parent Borrower, pursuant to Section 2.16(e2.16(f), of any change to the reference rate upon which
the interest rate on Eurocurrency Loans is based.  However, the Agent does not warrant or accept
any  responsibility  for,  and  shall  not  have  any  liability  with  respect  to,  the  administration,
submission or any other matter related to the London interbank offered rate or other rates in the
definition  of  “LIBO  Rate”  or  with  respect  to  any  alternative  or  successor  rate  thereto,  or
replacement  rate  thereof  (including,  without  limitation,  (ia)  any  such  alternative,  successor  or
replacement rate implemented pursuant to Section 2.16(c) or (d), whether upon the occurrence of
a Benchmark Transition Event , a Term SOFR Transition Event or an Early Opt-in Election, and
(iib)  the  implementation  of  any  Benchmark  Replacement  Conforming  Changes  pursuant  to
Section 2.16(d2.16(e)), including without limitation, whether the composition or characteristics
of any such alternative, successor or replacement reference rate will be similar to, or produce the
same value or economic equivalence of, the LIBO Rate or have the same volume or liquidity as
did the London interbank offered rate prior to its discontinuance or unavailability.
Section 1.08 Letters  of  Credit.    Unless  otherwise  specified  herein,  the  amount  of  a
Letter of Credit at any time shall be deemed to be the amount of such Letter of Credit available to
be drawn at such time; provided that with respect to any Letter of Credit that, by its terms or the
terms  of  any  agreement  related  thereto,  provides  for  one  or  more  automatic  increases  in  the
available amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum
amount  of  such  Letter  of  Credit  after  giving  effect  to  all  such  increases,  whether  or  not  such
maximum amount is available to be drawn at such time.  For all purposes of this Agreement, if on
any date of determination a Letter of Credit has expired by its terms but any amount may still be
drawn thereunder by reason of the operation of Article 29(a) of the Uniform Customs and Practice
for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later
version  thereof  as  may  be  in  effect  at  the  applicable  time)  or Rule  3.13  or  Rule  3.14  of  the
International Standby Practices, International Chamber of Commerce Publication No. 590 (or such
later version thereof as may be in effect at the applicable time) or similar terms of the Letter of
Credit itself, or if compliant documents have been presented but not yet honored, such Letter of
Credit shall be deemed to be “outstanding” and “undrawn” in the amount so remaining available
to be paid, and the obligations of the Borrowers and each Lender shall remain in full force and
effect until the Issuing Lenders and the Lenders shall have no further obligations to make any
payments or disbursements under any circumstances with respect to any Letter of Credit. 

	
	
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ARTICLE II

AMOUNT AND TERMS OF CREDIT
Section 2.01 Commitment of the Lenders.
(a) Each Lender severally and not jointly with any other Lender, agrees, upon
the terms and subject to the conditions set forth herein, to extend credit (each an “Initial Loan”
and,  collectively,  the  “Initial  Loans”)  to  the  Borrowers  on  a  revolving  basis,  in  the  form  of
Revolving Loans and Letters of Credit and in an amount not to exceed the lesser of such Lender’s
Commitment or such Lender’s Commitment Percentage of the Borrowing Base, subject to the
following limitations:
(i) The aggregate outstanding amount of the Credit Extensions shall not
at any time exceed the lower of (A) the Total Commitment then in effect (as the same may
be adjusted from time to time pursuant to Section 2.09), or (B) the then amount of the
Borrowing Base.
(ii) No  Lender  shall  be  obligated  to  issue  any  Letter  of  Credit,  and
Letters  of  Credit  shall  be  available  from  any  Issuing  Lender,  subject  to  the  ratable
participation of all Lenders, as set forth in Section 2.06.  The Borrowers will not at any
time permit the aggregate Letter of Credit Outstandings to exceed the lesser of (x) the
aggregate LC Sublimits for all Issuing Lenders and (y) $200,000,000.
(iii) Subject to all of the other provisions of this Agreement, each Class
of  Revolving  Loans  that  are  repaid  may  be  reborrowed  prior  to  the  Termination  Date
applicable to such Class.  No new Credit Extension under any Class of Commitments,
however, shall be made to the Borrowers after the Termination Date applicable to such
Class.
(b) Subject  to  the  provisions  of Section 2.01(c),  each  Borrowing  of  Initial
Loans under this Agreement shall be made by the Lenders pro rata in accordance with their then
applicable Commitment Percentages with respect to the applicable Class.  Each Borrowing of
Extended Loans under this Agreement shall be made by the Lenders of the relevant Extension
Series  thereof  pro  rata  on  the  basis  of  their  then  applicable  Extended  Commitments  for  the
applicable Extension Series.  The failure of any Lender to make any Loan shall neither relieve any
other Lender of its obligation to fund its Loan in accordance with the provisions of this Agreement
nor increase the obligation of any such other Lender.
(c) Notwithstanding  anything  to  the  contrary  herein  contained,  Credit
Extensions shall be made by the Lenders pro rata in accordance with their respective Commitment
Percentages.
Section 2.02 Reserves; Changes to Reserves.
(a) The  initial  Availability  Reserves  as  of  the Second Third Amendment
Effective Date are the following: 

	
	
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(i) Gift  Certificates:  An  amount  equal  to  fifty  percent  (50%)  of  the
Subsidiary Borrowers’ gift certificates, gift cards and cardholder rewards cards outstanding
from time to time.
(ii) Rent:  An  amount  equal  to  two  (2)  months  rent  for each  leased
location of each Subsidiary Borrower; provided that no such Reserve shall be imposed for
any location for which a landlord’s waiver reasonably satisfactory to the Agent has been
obtained.
(iii) Sales Tax: An amount equal to one hundred percent (100%) of the
credit for sales tax payable included in the financial statements of the Parent Borrower and
its Subsidiaries most recently delivered to the Agent pursuant to this Agreement.
(b) The Agent may on and after the Second Third Amendment Effective Date
establish additional Reserves or change any of the foregoing Reserves in its Permitted Discretion.
Section 2.03 Making of Loans.
(a) Except  as  set  forth  in Section 2.16  and Section 2.27,  Loans  (other  than
Swingline Loans) by the Lenders shall be either Base Rate Loans or Eurocurrency Loans as the
Parent Borrower on behalf of the Borrowers may request subject to and in accordance with this
Section 2.03, provided that all Swingline Loans shall be only Base Rate Loans.  All Loans made
pursuant to the same Borrowing shall, unless otherwise specifically provided herein, be Loans of
the same Type.  Each Lender may fulfill its Commitment with respect to any Loan by causing any
lending office of such Lender to make such Loan; but any such use of a lending office shall not
affect the obligation of the Borrowers to repay such Loan in accordance with the terms of the
applicable Note.  Each Lender shall, subject to its overall policy considerations, use reasonable
efforts (but shall not be obligated) to select a lending office which will not result in the payment
of increased costs by the Borrowers pursuant to Section 2.26.  Subject to the other provisions of
this Section 2.03 and the provisions of Section 2.27, Borrowings of Loans of more than one Type
may be incurred at the same time, but no more than fifteen (15) Borrowings of Eurocurrency Loans
may be outstanding at any time.
(b) The Parent Borrower shall give the Agent three (3) Business Days’ prior
telephonic (thereafter confirmed in writing) or e-mail notice of each Borrowing of Eurocurrency
Loans  and  same-day  notice  of  each  Borrowing  of  Base  Rate  Loans.  Any such notice, to be
effective, must be received by the Agent not later than 11:00 a.m., New York City time, on the
third Business Day in the case of Eurocurrency Loans prior to the date on which such Borrowing
is to be made, and on the date of the proposed Borrowing in the case of Base Rate Loans.  Such
Borrowing Request shall be irrevocable and shall specify the amount of the proposed Borrowing
(which shall be in an integral multiple of $1,000,000, but not less than $5,000,000 in the case of
Eurocurrency Loans and shall be in an integral multiple of $250,000, but not less than $1,000,000
in the case of Base Rate Loans) and the date thereof (which shall be a Business Day) and shall
contain disbursement instructions.  Such Borrowing Request shall specify whether the Borrowing
then being requested is to be a Borrowing of Base Rate Loans or Eurocurrency Loans and, if
Eurocurrency Loans, the Interest Period with respect thereto.  If no election of Interest Period is
specified in any such Borrowing Request for a Borrowing of Eurocurrency Loans, such Borrowing 

	
	
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Request shall be deemed a request for an Interest Period of one month.  If no election is made as
to the Type of Loan, such Borrowing Request shall be deemed a request for a Borrowing of Base
Rate  Loans.    The  Agent  shall  promptly  notify  each  Lender  of  its  proportionate  share  of  such
Borrowing, the date of such Borrowing, the Type of Borrowing being requested and the Interest
Period or Interest Periods applicable thereto, as appropriate.  On the borrowing date specified in
such Borrowing Request, each Lender shall make its share of the Borrowing available at the office
of the Agent at 10 South Dearborn Street, 22nd Floor, Chicago, Illinois, no later than 12:00 noon,
New York City time, in immediately available funds.  Unless the Agent shall have received notice
from  a  Lender  prior  to  the  proposed  date  of  any  Borrowing  that such  Lender  will  not  make
available to the Agent such Lender’s share of such Borrowing, the Agent may assume that such
Lender has made such share available on such date in accordance with this Section and may, in
reliance upon such assumption, make available to the Borrowers a corresponding amount.  In such
event, if a Lender has not in fact made its share of the applicable Borrowing available to the Agent,
then the applicable Lender and the Borrowers severally agree to pay to the Agent forthwith on
demand such corresponding amount with interest thereon, for each day from and including the
date such amount is made available to the Borrowers to but excluding the date of payment to the
Agent, at (i) in the case of such Lender, the greater of the NYFRB Rate and a rate determined by
the Agent in accordance with banking industry rules on interbank compensation or (ii) in the case
of the Borrowers, the interest rate applicable to Base Rate Loans.  If such Lender pays such amount
to the Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing.
Upon receipt of the funds made available by the Lenders to fund any Borrowing hereunder, the
Agent shall disburse such funds in the manner specified in the Borrowing Request delivered by
the  Parent  Borrower  and  shall  use  reasonable  efforts  to  make  the  funds  so  received  from  the
Lenders available to the Borrowers no later than 3:00 p.m., New York City time.
(c) If the Borrowers fail to make any payment when due hereunder or under
any other Loan Document, the Agent, without the request of the Parent Borrower, shall make a
Base Rate Loan in order to pay interest, fees, or other such payments to which the Agent, any
Lender or any of their Affiliates is entitled from any Borrower and shall charge the same to the
Loan Account.  The Agent shall advise the Parent Borrower of any such Base Rate Loan promptly
after the making thereof.  The making of such Loan shall not constitute a waiver of the Borrowers’
obligations under Section 2.21(a) hereof or of the provisions of Section 2.04.
Section 2.04 Overadvances.  The Agent and the Lenders have no obligation to make any
Loan or to provide any Letter of Credit if an Overadvance would result.  The Agent may, in its
discretion, make Permitted Overadvances without the consent of the Lenders and each Lender
shall  be  bound  thereby.    Any  Permitted  Overadvances  may  constitute  Swingline  Loans.    The
making  of  any  Permitted  Overadvance  is  for  the  benefit  of  the  Borrowers;  such  Permitted
Overadvances constitute Loans and Obligations.  The making of any such Permitted Overadvances
on any one occasion shall not obligate the Agent or any Lender to make or permit any Permitted
Overadvances  on  any  other  occasion  or  to  permit  such  Permitted Overadvances  to  remain
outstanding.  The Agent’s authorization to make Permitted Overadvances may be revoked at any
time by the Required Supermajority Lenders.  Any such revocation must be in writing and shall
become effective prospectively upon the Agent’s receipt thereof.
Section 2.05 Swingline Loans. 

	
	
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(a) General.  The Agent, the Swingline Lenders and the Lenders agree that in
order to facilitate the administration of this Agreement and the other Loan Documents, promptly
after the Parent Borrower requests a Borrowing of Base Rate Loans, the Swingline Lenders may
elect to have the terms of this Section 2.05(a) apply to such Borrowing Request by advancing, on
behalf of the Lenders and in the amount requested, same day funds to the Borrowers, on the date
of the applicable Borrowing to the account specified by the Parent Borrower in such Borrowing
Request (each such Loan made solely by the Swingline Lenders pursuant to this Section 2.05(a)
is referred to in this Agreement as a “Swingline Loan”), with settlement among them as to the
Swingline Loans to take place on a periodic basis as set forth in Section 2.07(a).  Each Swingline
Loan shall be subject to all the terms and conditions applicable to other Base Rate Loans funded
by the Lenders, except that all payments thereon shall be payable to the applicable Swingline
Lender solely for its own account.  The aggregate amount of Swingline Loans outstanding at any
time shall not exceed the Swingline Commitment.  The Swingline Lenders shall not make any
Swingline Loan if the requested Swingline Loan would cause the aggregate outstanding amount
of the Credit Extensions to exceed the lower of (A) the Total Commitment then in effect (as the
same may be adjusted from time to time pursuant to Section 2.09), or (B) the then amount of the
Borrowing Base (before or after giving effect to such Swingline Loan), and the Swingline Lenders
(other than JPMorgan) will receive confirmation from the Agent that such requirement is satisfied
before making the requested Swingline Loan.  All Swingline Loans shall be Base Rate Loans.
(b) Participations by Lenders in Swingline Loans.  Each Swingline Lender may
by  written  notice  given  to  the  Agent  not  later  than  12:00  p.m.,  New  York  City  time,  on  any
Business Day require the Lenders to acquire participations on such Business Day in all or a portion
of its Swingline Loans outstanding.  Such notice shall specify the aggregate amount of Swingline
Loans in which Lenders will be required to participate.  Promptly upon the receipt of such notice,
the  Agent  will  give  notice  thereof  to  each  Lender,  specifying  in  such  notice  such  Lender’s
Commitment Percentage of such Swingline Loan or Loans.  Each Lender hereby absolutely and
unconditionally agrees to pay, upon receipt of notice as provided above in this paragraph, to the
Agent, in Dollars, for the account of the applicable Swingline Lender, such Lender’s Commitment
Percentage of such Swingline Loan or Loans.   Each Lender acknowledges  and  agrees  that  its
obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each
Lender  further  acknowledges and agrees that, in making any Swingline  Loan,  each  Swingline
Lender shall be entitled to rely, and shall not incur any liability for relying, upon the representation
and warranty of the Parent Borrower deemed made pursuant to Section 5.02, unless, at least two
Business Days prior to the time such Swingline Loan was made, the Required Lenders shall have
notified such Swingline Lender (with a copy to the Agent) in writing that, as a result of one or
more events or circumstances described in such notice, one or more of the conditions precedent
set forth in Section 5.02 would not be satisfied if such Swingline Loan were then made (it being
understood and agreed that, in the event any Swingline Lender shall have received any such notice,
no Swingline Lender shall make any Swingline Loan until and unless it shall be satisfied that the
events and circumstances described in such notice shall have been cured or otherwise shall have
ceased to exist).  Each Lender shall comply with its obligation under this paragraph by wire transfer
of immediately available funds, in the same manner as provided in Section 2.07 with respect to
Loans  made  by  such  Lender  (and Section 2.07  shall  apply, mutatis mutandis, to the payment 

	
	
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obligations  of  the  Lenders  under  this  paragraph),  and  the  Agent  shall  promptly  pay  to  the
applicable Swingline Lender the amounts so received by it from the Lenders.
The Agent shall notify the Parent Borrower of any participations in any Swingline
Loan acquired pursuant to the preceding paragraph, and thereafter payments in respect of such
Swingline Loan shall be made to the Agent and not to the applicable Swingline Lender.  Any
amounts received  by  a  Swingline  Lender  from  the  Borrowers  (or  other  party on behalf of the
Borrowers) in respect of a Swingline Loan after receipt by such Swingline Lender of the proceeds
of a sale of partcipations therein shall be promptly remitted to the Agent; and any such amounts
received by the Agent shall be promptly remitted by the Agent to the Lenders that shall have made
their payments pursuant to the preceding paragraph and to such Swingline Lender, as their interests
may appear; provided that any such payment so remitted shall be repaid to such Swingline Lender
or to the Agent, as applicable, if and to the extent such payment is required to be refunded to the
Borrowers for any reason.  The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve the Borrowers of any default in the payment thereof.
(c) Additional  Swingline  Lenders;  Replacement  of  Swingline  Lender.   Any
Swingline Lender may be added or an existing Swingline Lender may be replaced at any time by
written agreement among the Parent Borrower, the Agent and the relevant Swingline Lender(s).
The Agent shall notify the Lenders of any such addition or replacement of a Swingline Lender.  At
the time any such replacement shall become effective, the Borrowers shall pay all unpaid interest
accrued for the account of the replaced Swingline Lender pursuant to Section 2.13(a).  From and
after the effective date of any such addition or replacement, (x) the new Swingline Lender shall
have all the rights and obligations of a Swingline Lender under this Agreement with respect to
Swingline Loans made thereafter and (y) references herein to the term “Swingline Lender” shall
be deemed to refer to such new Swingline Lender, successor to any previous Swingline Lender, or
to  such  successor  and  all  previous  Swingline  Lenders,  as  the  context  shall  require.    After  the
replacement of a Swingline Lender hereunder, the replaced Swingline Lender shall remain a party
hereto and shall continue to have all the rights and obligations of a Swingline Lender under this
Agreement with respect to Swingline Loans made by it prior to its replacement, but shall not be
required to make additional Swingline Loans.
(d) Resignation  of  Swingline  Lender.    Subject  to  the  appointment  and
acceptance of a successor Swingline Lender, any Swingline Lender may resign as a Swingline
Lender at any time upon thirty days’ prior written notice to the Agent, the Parent Borrower and
the  Lenders,  in  which  case,  such  Swingline  Lender  shall  be  replaced  in  accordance  with
Section 2.05(c) above.
Section 2.06 Letters of Credit.
(a) General.  Subject to the terms and conditions set forth herein, in addition to
the Loans provided for in Section 2.01, the Parent Borrower may request any Issuing Lender to
issue  Letters  of  Credit  denominated  in  Dollars  for  the  account of  any  Borrower  or  one  of  its
Subsidiaries in such form as is acceptable to the Agent and such Issuing Lender in its reasonable
determination.  Letters of Credit issued hereunder shall constitute utilization of the Commitments.
Notwithstanding anything herein to the contrary, the  Issuing Lenders shall have no obligation
hereunder to issue, and shall not issue, An Issuing Lender shall not be under any obligation to issue 

	
	
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any Letter of Credit (a) the proceeds of which would be made available to any Person (A) to fund
any activity or business of or with any Sanctioned Person, or in any country or territory that, at the
time of such funding, is the subject of any Sanctions or (B) in any manner that would result in a
violation of any Sanctions by any party to this Agreement, (a) if if: (i) any order, judgment or
decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain
the such Issuing Lenders from issuing such Letter of Credit, or any applicable law relating to the
such Issuing Lenders Lender or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the such Issuing Lenders Lender shall
prohibit, or request that the such Issuing Lenders Lender refrain from, the issuance of letters of
credit generally or such Letter of Credit in particular or shall impose upon the such Issuing Lenders
Lender with respect to such Letter of Credit any restriction, reserve or capital requirement (for
which the such Issuing Lenders are Lender is not otherwise compensated hereunder) not in effect
on the Second Amendment Effective Date, or shall impose upon the such Issuing Lenders Lender
any  unreimbursed  loss,  cost  or  expense  which  was  not  applicable  on  the  Second  Amendment
Effective Date and which the such Issuing Lenders Lender in good faith deems material to it, or
(ii) if the issuance of such Letter of Credit would violate one or more policies of the such Issuing
Lenders Lender applicable to letters of credit generally; provided that, notwithstanding anything
herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all  requests,  rules,  guidelines,  requirements  or  directives  thereunder  or  issued  in  connection
therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or
directives promulgated by the Bank for International Settlements, the Basel Committee on Banking
Supervision  (or  any  successor  or  similar  authority)  or  the  United  States  or  foreign  regulatory
authorities, in each case pursuant to Basel III, shall in each case be deemed not to be in effect on
the Second Amendment Effective Date for purposes of clause (ii) above, regardless of the date
enacted, adopted, issued or implemented.
(b) Notice  of  Issuance,  Amendment,  Renewal  or  Extension;  Auto-Renewal
Letters of Credit.
(i) To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit, other than an automatic renewal
of  an  Auto-Renewal  Letter  of  Credit  permitted  pursuant  to clause (ii)  of  this
Section 2.06(b)),  the  Parent  Borrower  shall  hand  deliver,  fax  or  e-mail  (in  .pdf  or  .tif
format)  to  the  relevant  Issuing  Lender  and  the  Agent  (reasonably  in  advance  of  the
requested  date  of  issuance,  amendment,  renewal  or  extension)  a notice  requesting  the
issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed
or extended, and specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day), the date on which such Letter of Credit is to expire (which shall
comply with paragraph (d) of this Section), the amount of such Letter of Credit, the name
and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit.  If requested by the relevant Issuing
Lender, the Parent Borrower also shall submit a letter of credit application on such Issuing
Lender’s standard form in connection with any request for a Letter of Credit.  In the event
of any inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement submitted by
the Parent Borrower to, or entered into by the Parent Borrower with, an Issuing Lender
relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 

	
	
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(ii) Any Letter of Credit issuable under this Agreement may be issued,
if the Parent Borrower so requests and the relevant Issuing Lender so agrees, in the form
of an Auto-Renewal Letter of Credit; provided that any such Auto-Renewal Letter of Credit
must permit such Issuing Lender to prevent any such renewal at least once in each twelve-
month period (commencing with the date of issuance of such Letter of Credit) by giving
prior notice to the beneficiary thereof of such Issuing Lender’s option not to extend the
Letter  of  Credit  beyond  the  expiration  date  (a  “Non-Renewal  Notice”).    Such  Issuing
Lender shall have the option to issue a Non-Renewal Notice during a specified period in
each such twelve-month period to be agreed upon by the Parent Borrower, such Issuing
Lender and the Agent at the time such Letter of Credit is issued (the date of such notice
shall be referred to herein as the “Non-Renewal Notice Date”).  Once an Auto-Renewal
Letter of Credit has been issued, each Lender shall be deemed to have authorized (but may
not require) the relevant Issuing Lender to permit the renewal of such Letter of Credit at
any time to an expiry date not later than one year after its date of issuance or renewal;
provided that such Issuing Lender shall not permit any such renewal if such Issuing Lender
has reasonably determined that it would have no obligation at such time to issue such Letter
of Credit in its renewed form under the terms of this Agreement (by reason of the provisions
of paragraph (c) or (d) of this Section or otherwise).
(c) Limitations  on  Amounts.    A  Letter  of  Credit  shall  be  issued,  amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter
of Credit the Parent Borrower shall be deemed to represent and warrant that), after giving effect to
such issuance, amendment, renewal or extension (i) the aggregate Letter of Credit Outstandings
shall  not  exceed  the  lesser  of  (x)  the  aggregate  LC  Sublimits  for  all  Issuing  Lenders  and  (y)
$200,000,000 and, subject to the last sentence of this subsection (c), no more than $100,000,000
of  which  may  be  in  respect  of  Standby  Letters  of  Credit  (the  “Standby  Letters  of  Credit
Sublimit”), (ii) the aggregate amount of the Letter of Credit Outstandings attributable to Letters
of Credit issued by any Issuing Lender shall not exceed the LC Sublimit of such Issuing Lender,
(iii) the Credit Extensions of any Lender shall not exceed the Commitment of such Lender, (iv)
the Credit Extensions shall not exceed the Total Commitment and (v) in the event the Maturity
Date shall have been extended as provided in Section 2.20, the sum of (x) the Letter of Credit
Outstandings attributable to Letters of Credit expiring after any Maturity Date before giving effect
to such extension plus (y) the Swingline Exposure attributable to Swingline Loans maturing after
such Maturity Date shall not exceed the total Commitments that shall have been extended to a date
after  the  latest  expiration  date  of  such  Letters  of  Credit  and the  latest  maturity  date  of  such
Swingline Loans.  Each Issuing Lender (other than JPMorgan) will receive confirmation from the
Agent that the requirements in clauses (i) and (iv) of the foregoing sentence are satisfied before
issuing, amending, renewing or extending a Letter of Credit.  Notwithstanding the foregoing, the
Parent Borrower may adjust the amount of the Standby Letters of Credit Sublimit by providing
three (3) Business Days prior written notice to the Agent, so long as the total of such Standby
Letters of Credit Sublimit plus any Commercial Letter of Credit Outstandings does not exceed the
aggregate sublimit for Letter of Credit Outstandings set forth in Section 2.06(c)(i).  The Agent
shall promptly confirm to the Parent Borrower, the Issuing Lenders and the Lenders the amount
and the effective date of the revised sublimits.
(d) Expiration Date.  Each Letter of Credit shall expire at or prior to the close
of business on the earlier of (i) the date twelve-months after the date of the issuance of such Letter 

	
	
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of Credit (or, in the case of any renewal or extension thereof, twelve months after the then-current
expiration date of such Letter of Credit), subject to automatic renewal of any Auto-Renewal Letter
of Credit as provided in Section 2.06(b)(ii), and (ii) the date that is five Business Days prior to the
Maturity Date.
(e) Participations.  By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) by any Issuing Lender, and without any further
action on the part of such Issuing Lender or the Lenders, such Issuing Lender hereby grants to each
Lender, and each Lender hereby acquires from such Issuing Lender, a participation in such Letter
of Credit equal to such Lender’s Commitment Percentage of the aggregate amount available to be
drawn under such Letter of Credit.  Each Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional  and  shall  not  be  affected  by  any  circumstance  whatsoever,  including  any
amendment, renewal or extension of any Letter of Credit, the occurrence and continuance of a
Default or reduction or termination of the Commitments, or any force majeure or other event that
under any rule of law or uniform practices to which any Letter of Credit is subject (including
Section 3.14 of ISP 98 or any successor publication of the International Chamber of Commerce)
permits a drawing to be made under such Letter of Credit after the expiration thereof or of the
Commitments.  Each Lender further acknowledges and agrees that, in issuing, amending, renewing
or extending any Letter of Credit, the relevant Issuing Lender shall be entitled to rely, and shall
not incur any liability for relying, upon the representation and warranty of the Borrowers deemed
made pursuant to Section 5.02, unless, at least two Business Days prior to the time of issuance, or
the time of any amendment, renewal or extension subject to Section 5.02, of any Letter of Credit
by such Issuing Lender (or, in the case of an automatic renewal permitted pursuant to clause (ii)
of Section 2.06(b), at least two Business Days prior to the time by which the election not to permit
renewal must be made by the relevant Issuing Lender), the Required Lenders shall have notified
the applicable Issuing Lender (with a copy to the Agent) in writing that, as a result of one or more
events or circumstances described in such notice, one or more of the conditions precedent set forth
in Section 5.02 would not be satisfied if such Letter of Credit were then issued or so amended,
renewed or extended (it being understood and agreed that, in the event any Issuing Lender shall
have received any such notice, no Issuing Lender shall issue, amend, renew or extend any Letter
of Credit until and unless it shall be satisfied that the events and circumstances described in such
notice shall have been cured or otherwise shall have ceased to exist).
In consideration and in furtherance of the foregoing, each Lender hereby absolutely
and unconditionally agrees to pay to the Agent, for account of the relevant Issuing Lender, such
Lender’s Commitment Percentage of each LC Disbursement made by an Issuing Lender (i) in the
event  the  Borrowers  fail  to  reimburse  such  LC  Disbursement  when  due,  as  provided  in
paragraph (f) of this Section, promptly upon the receipt of notice from the Agent referred to in
paragraph (f) of this Section and (ii) if any reimbursement payment is required to be refunded to
the Borrowers for any reason, at any time thereafter, promptly upon the request of such Issuing
Lender.  Such payment shall be made without any offset, abatement, withholding or reduction
whatsoever.  Each such payment shall be made in the same manner as provided in Section 2.03
with respect to Loans made by such Lender (and Section 2.03 shall apply, mutatis mutandis, to
the payment obligations of the Lenders under this paragraph), and the Agent shall promptly pay to
the relevant Issuing Lender the amounts so received by it from the Lenders.  Promptly following
receipt by the Agent of any payment from any Borrower pursuant to paragraph (f) of this Section, 

	
	
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the Agent shall distribute such payment to the relevant Issuing Lender or, to the extent that the
Lenders have made payments pursuant to this paragraph to reimburse such Issuing Lender, then to
such Lenders and such Issuing Lender as their interests may appear.  Any payment made by a
Lender pursuant to this paragraph to reimburse an Issuing Lender for any LC Disbursement shall
not constitute a Loan and shall not relieve the applicable Borrower of its obligation to reimburse
such LC Disbursement.
(f) Disbursement and Reimbursement.  If an Issuing Lender shall make any LC
Disbursement in respect of a Letter of Credit, such Issuing Lender shall give prompt notice thereof
to the Agent and the Parent Borrower by telephone (confirmed by hand delivery, facsimile or e-
mail), and the Borrowers shall reimburse such Issuing Lender in respect of such LC Disbursement
by paying to the Agent an amount equal to such LC Disbursement not later than 12:00 noon, New
York City time, on (i) the Business Day that the Parent Borrower receives notice of such LC
Disbursement,  if  such  notice  is  received  prior  to  10:00  a.m.,  New  York  City  time,  or  (ii)  the
Business Day immediately following the day that the Parent Borrower receives such notice, if such
notice is not received prior to such time; provided that if such LC Disbursement is not less than
(x) $2,000,000 in the case of a Borrowing of Base Rate Loans and (y) $1,000,000 in the case of a
Borrowing of Swingline Loans, the Parent Borrower may, subject to the conditions to borrowing
set forth herein, request in accordance with Section 2.03 or 2.05 that such payment be financed
with a Borrowing of Base Rate Loans or a Borrowing of Swingline Loans in an equivalent amount
and, to the extent so financed, the Borrowers’ obligation to make such payment shall be discharged
and replaced by the resulting Borrowing of Base Rate Loans or Borrowing of Swingline Loans.
If the Borrowers fail to make such payment when due, the Agent shall notify each
Lender of the applicable LC Disbursement, the payment then due from the Borrowers in respect
thereof and such Lender’s Commitment Percentage thereof.
(g) Obligations  Absolute.    The  Borrowers’  obligation  to  reimburse  LC
Disbursements as provided in paragraph (f) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability
of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) any payment by an
Issuing Lender under a Letter of Credit against presentation of a draft or other document that does
not comply strictly with the terms of such Letter of Credit, (iv) the failure to perfect any lien or
security interest granted to, or in favor of, the Agent or any of the Lenders as security for any
reimbursement obligations in respect of any LC Disbursement, (v)  any force majeure or other
event that under any rule of law or uniform practices to which any Letter of Credit is subject
(including Section 3.14 of ISP 98 or any successor publication of the International Chamber of
Commerce) permits a drawing to be made under such Letter of Credit after the stated expiration
date thereof or of the Commitments or (vi) any other event or circumstance whatsoever, whether
or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute
a legal or equitable discharge of, or provide a right of setoff against, the Borrowers’ obligations
hereunder. 

	
	
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None of Neither the Agent, the Lenders or the , nor any Issuing Lenders, Lender or
any of their respective Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit by any Issuing Lender or any
payment  or  failure  to  make  any  payment  thereunder  (irrespective  of  any  of  the  circumstances
referred  to  in  the  preceding  sentence),  or  any  error,  omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or relating to any Letter
of  Credit  (including  any  document  required  to  make  a  drawing  thereunder),  any  error  in
interpretation of technical terms , any error in translation or any consequence arising from causes
beyond  the  control  of  the  relevant  Issuing  Lender;  provided  that  the  foregoing  shall  not  be
construed to excuse an Issuing Lender from liability to the Borrowers to the extent of any direct
damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of
which are hereby waived by the Borrowers to the extent permitted by applicable law) suffered by
the Borrowers that are caused by such Issuing Lender’s failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply with the terms
thereof.  The parties hereto expressly agree, to the fullest extent permitted by law, that, in the
absence of gross negligence or willful misconduct on the part of an Issuing Lender (with such
absence to be presumed unless otherwise determined by a court of competent jurisdiction in a final
and nonappealable judgment), such Issuing Lender shall be deemed to have exercised care in each
such determination, and that:
(i) an Issuing Lender may accept documents that appear on their face
to be in substantial compliance with the terms of a Letter of Credit without responsibility
for further investigation, regardless of any notice or information to the contrary, and may
make payment upon presentation of documents that appear on their face to be in substantial
compliance with the terms of such Letter of Credit;
(ii) an  Issuing  Lender  shall  have  the  right,  in  its  sole  discretion, to
decline to accept such documents and to make such payment if such documents are not in
strict compliance with the terms of such Letter of Credit; and
(iii) this sentence shall establish the standard of care to be exercised by
an Issuing Lender when determining whether drafts and other documents presented under
a Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to
the  extent  permitted  by  applicable  law,  any  standard  of  care  inconsistent  with  the
foregoing).
(h) Disbursement  Procedures.    The  Issuing  Lender  for  any  Letter  of Credit
shall, within a reasonable time the time allowed by applicable law or the specific terms of the
Letter of Credit following its receipt thereof, examine all documents purporting to represent a
demand for payment under such Letter of Credit.  Such Issuing Lender shall promptly after such
examination notify the Agent and the Parent Borrower by telephone (confirmed by hand delivery,
facsimile or e-mail) of such demand for payment and whether if such Issuing Lender has made or
will make an LC Disbursement thereunder; provided that any failure to give or delay in giving
such notice shall not relieve the Borrowers of their obligation to reimburse such Issuing Lender
and the Lenders with respect to any such LC Disbursement. 

	
	
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(i) Interim Interest.  If the Issuing Lender for any Letter of Credit shall make
any LC Disbursement, then, unless the Borrowers shall reimburse such LC Disbursement in full
on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each
day from and including the date such LC Disbursement is made to, but excluding the date that the
Borrowers reimburse such LC Disbursement, at the rate per annum then applicable to Base Rate
Loans; provided that, if the Borrowers fail to reimburse such LC Disbursement when due pursuant
to paragraph (f) of this Section, then Section 2.13(d) shall apply.  Interest accrued pursuant to
this paragraph shall be for the account of such Issuing Lender, except that interest accrued on and
after the date of payment by any Lender pursuant to paragraph (e) of this Section to reimburse
such Issuing Lender for such LC Disbursement shall be for the account of such Lender to the extent
of such payment, and shall be payable on demand or, if no demand has been made, on the date on
which the Borrowers reimburse the applicable LC Disbursement in full.
(j) Additional Issuing Lenders; Replacement of Issuing Lenders.  An Issuing
Lender may be added, or an existing Issuing Lender may be replaced, under this Agreement at any
time  by  written  agreement  between  the  Parent  Borrower,  the  Agent  and  the  relevant  Issuing
Lender.  The Agent shall notify the Lenders of any such addition or replacement.  At the time any
such replacement shall become effective, the Borrowers shall pay all unpaid fees accrued for the
account  of  the  Issuing  Lender  being  replaced  pursuant  to Section 2.10.    From  and  after  the
effective date of any such addition, the new Issuing Lender shall have all the rights and obligations
of an Issuing Lender under this Agreement with respect to Letters of Credit to be issued thereafter.
After the replacement of an Issuing Lender hereunder, the replaced Issuing Lender shall remain a
party hereto and shall continue to have all the rights and obligations of an Issuing Lender under
this  Agreement  with  respect  to  any  outstanding  Letters  of  Credit  issued  by  it  prior  to  such
replacement, but shall not be required to issue any new Letters of Credit or to amend, renew or
extend any such outstanding Letters of Credit.
(k) Resignation of Issuing Lender.  Subject to the appointment and acceptance
of a successor Issuing Lender, any Issuing Lender may resign as an Issuing Lender at any time
upon thirty days’ prior written notice to the Agent, the Parent Borrower and the Lenders, in which
case, such Issuing Lender shall be replaced in accordance with Section 2.06(j) above.
(l) Issuing Lender Reports to the Agent.  Unless otherwise agreed by the Agent,
each Issuing Lender (other than JPMorgan) shall, in addition to its notification obligations set forth
elsewhere in this Section, report in writing to the Agent (i) periodic activity (for such period or
recurrent periods as shall be requested by the Agent) in respect of Letters of Credit issued by such
Issuing Lender, including all issuances, extensions, amendments and renewals, all expirations and
cancellations and all disbursements and reimbursements, (ii) reasonably prior to the time that such
Issuing Lender issues, amends, renews or extends any Letter of Credit, the date of such issuance,
amendment, renewal or extension, and the stated amount of the Letters of Credit issued, amended,
renewed  or  extended  by  it  and  outstanding  after  giving  effect  to  such  issuance,  amendment,
renewal or extension (and whether the amounts thereof shall have changed), (iii) on each Business
Day on which such Issuing Lender makes any LC Disbursement, the date and amount of such LC
Disbursement,  (iv)  on  any  Business  Day  on  which  the  Borrowers  fail  to  reimburse  an  LC
Disbursement required to be reimbursed to such Issuing Lender on such day, the date of such
failure and the amount of such LC Disbursement and (v) on any other Business Day, such other 

	
	
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information as the Agent shall reasonably request as to the Letters of Credit issued by such Issuing
Lender.
(m) Cash  Collateralization.    If  any  Event  of  Default  shall  occur  and  be
continuing, on the Business Day that the Parent Borrower receives notice from the Agent or the
Required Lenders (or, if the maturity of the Loans has been accelerated pursuant to Article VIII,
Lenders with Letter of Credit Outstandings representing more than 50% of the total Letter of Credit
Outstandings) demanding the deposit of cash collateral pursuant to this paragraph, the Borrowers
shall immediately deposit into the Cash Collateral Account an amount in immediately available
funds in Dollars equal to 103% of the Letter of Credit Outstandings as of such date plus any
accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately due and payable,
without demand or other notice of any kind, upon the occurrence of any Event of Default with
respect to any Borrower described in clause (h) or (i) of Article VIII.  The Borrowers also shall
deposit  cash  collateral  in  accordance  with  this  paragraph  as  and  to  the  extent  required  by
Section 2.31.  Each such deposit shall be held by the Agent as collateral for the Letter of Credit
Outstandings and other obligations of the Borrowers under this Agreement, and for this purpose
the Borrowers hereby grant a security interest to the Agent for the benefit of the Lenders and the
Issuing Lenders in such collateral account and in any financial assets (as defined in the UCC) or
other property held therein.  In addition, and without limiting the foregoing or paragraph (d)(ii)
of this Section, if there are any Letter of Credit Outstandings after the expiration date specified in
said paragraph (d)(ii), the Borrowers shall promptly deposit (but in any event within two (2)
Business Days after the  expiration date specified in paragraph (d)(ii)) in the Cash Collateral
Account an amount in cash equal to 103% of such Letter of Credit Outstandings as of such date
plus any accrued and unpaid interest thereon.
The Agent shall have exclusive dominion and control, including the exclusive right
of  withdrawal,  over  such  Cash  Collateral  Account.    All  amounts on  deposit  pursuant  to  this
paragraph (m) shall be invested by the Agent in interest bearing instruments or accounts, with
the selection of which instruments or accounts to be determined by the Agent in its sole discretion;
provided  that  the  Agent  shall  consult  with  the  Parent  Borrower as  to  the  selection  of  such
instruments or accounts; provided, further, that such investments shall be at the risk and expense
of the Borrowers.  Other than any interest earned on the investment of such deposits, such deposits
shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such
account.  Moneys in such Cash Collateral Account shall be applied by the Agent to reimburse the
relevant Issuing Lender for LC Disbursements for which it has not been reimbursed , together with
related fees, costs, and customary processing charges, and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrowers for the Letter of Credit
Outstandings at such time or, if the maturity of the Loans has been accelerated (but (i) subject to
the consent of Lenders with Letter of Credit Outstandings representing 100% of the total Letter of
Credit Outstandings and (ii) in the case of any such application at a time when any Lender is a
Defaulting Lender (but only if, after giving effect thereto, the remaining cash collateral shall be
less than the aggregate Letter of Credit Outstandings of all the Defaulting Lenders), the consent of
each  Issuing  Lender),  be  applied  to  satisfy  other  obligations  of  the  Borrowers  under  this
Agreement.  If the Borrowers are required to provide an amount of cash collateral hereunder as a
result of the occurrence of an Event of Default, the amount (including any interest and profits
earned thereon as aforesaid) standing to the credit of such account (to the extent not applied as 

	
	
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aforesaid) shall be returned to the Borrowers within three Business Days after all Events of Default
have been cured or waived.  If the Borrowers are required to provide an amount of cash collateral
hereunder pursuant to Section 2.31, such amount (to the extent not applied as aforesaid) shall be
returned to the Borrowers, as promptly as practicable, to the extent that, after giving effect to such
return, no Issuing Lender shall have any exposure in respect of any outstanding Letter of Credit
that is not fully covered by the Commitments of the Non-Defaulting Lenders and/or the remaining
cash collateral and no Event of Default shall have occurred and be continuing.
Section 2.07 Settlements Amongst Lenders.
(a) Each Swingline Lender may (but shall not be obligated to), at any time, on
behalf of the Borrowers (which hereby authorize each Swingline Lender to act in their behalf in
that regard) request the Agent to cause the Lenders to make a Revolving Loan (which shall be a
Base Rate Loan) in an amount equal to such Lender’s Commitment Percentage of the outstanding
amount of Swingline Loans made in accordance with Section 2.05, which request may be made
regardless of whether the conditions set forth in Article V have been satisfied.  Upon such request,
the Agent, on behalf of such Swingline Lender, shall request settlement with the Lenders on at
least a weekly basis or on any date that the Agent elects, by notifying the Lenders of such requested
settlement by facsimile, telephone, or e-mail no later than 2:00 p.m. New York City time on the
Settlement Date.  Upon such request, each Lender shall make available to the Agent the proceeds
of such Revolving Loan for the account of the applicable Swingline Lender.  If the applicable
Swingline Lender requires a Revolving Loan to be made by the Lenders and the request therefor
is received prior to 2:00 p.m., New York City time, on a Business Day, such transfers shall be
made in immediately available funds no later than 5:00 p.m., New York City time, that day; and,
if the request therefor is received after 2:00 p.m., New York City time, then no later than 5:00
p.m., New York City time, on the next Business Day.  The obligation of each Lender to transfer
such funds is irrevocable, unconditional and without recourse to or warranty by the Agent or the
applicable Swingline Lender.  If and to the extent any Lender shall not have so made its transfer
to the Agent, such Lender agrees to pay to the Agent, forthwith on demand such amount, together
with interest thereon, for each day from such date until the date such amount is paid to the Agent
at the NYFRB Rate.
(b) The  amount  of  each  Lender’s  Commitment  Percentage  of  outstanding
Revolving  Loans  shall  be  computed  on  at  least  a  weekly  (or  more  frequently  in  the  Agent’s
discretion) basis and shall be adjusted upward or downward based on all Revolving Loans and
repayments of Revolving Loans received by the Agent as of 3:00 p.m., New York City time, on
the  first  Business  Day  following  the  end  of  the  period  specified  by  the  Agent  (such  date,  the
“Settlement Date”).
(c) The Agent shall deliver to each of the Lenders promptly after the Settlement
Date a summary statement of the amount of outstanding Revolving Loans for the period and the
amount of repayments received for the period.  As reflected on the summary statement: (x) the
Agent shall transfer to each Lender its applicable Commitment Percentage of repayments, and (y)
each Lender shall transfer to the Agent (as provided below), or the Agent shall transfer to each
Lender, such amounts as are necessary to insure that, after giving effect to all such transfers, the
amount of Revolving Loans made by each Lender with respect to Revolving Loans shall be equal
to such Lender’s applicable Commitment Percentage of Revolving Loans outstanding as of such 

	
	
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Settlement Date.  If the summary statement requires transfers to be made to the Agent by the
Lenders and is received prior to 2:00 p.m., New York City time, on a Business Day, such transfers
shall be made in immediately available funds no later than 5:00 p.m., New York City time, that
day; and, if received after 2:00 p.m., New York City time, then no later than 5:00 p.m., New York
City time, on the next Business Day.  The obligation of each Lender to transfer such funds is
irrevocable, unconditional and without recourse to or warranty by the Agent.  If and to the extent
any Lender shall not have so made its transfer to the Agent, such Lender agrees to pay to the Agent,
forthwith on demand such amount, together with interest thereon, for each day from such date until
the date such amount is paid to the Agent at the NYFRB Rate.
Section 2.08 Notes; Repayment of Loans.
(a) The Loans made by each Lender (and to the applicable Swingline Lender,
with respect to Swingline Loans) may, upon request by such Lender (or such Swingline Lender),
be evidenced by a Note duly executed by the Borrowers, dated the Effective Date (or in the case
of a Note evidencing an increased or a new Commitment pursuant to Section 2.09, the effective
date  of  such  increased  or  new  Commitment),  in  substantially  the  form  attached  hereto  as
Exhibit B-1 or B-2,  as  applicable,  payable  to  such  Lender  (or  such  Swingline  Lender,  as
applicable)  in  an  aggregate  principal  amount  equal  to  such  Lender’s  Commitment  (or  the
applicable Swingline Lender’s Swingline Commitment).
(b) The  Borrowers  shall  repay  to  the  Agent  the  then  outstanding  principal
balance  of  all  Swingline  Loans  on  the  earlier  of  the  Swingline Maturity  Date  or,  on  the  date
otherwise  requested  by  the  applicable  Swingline  Lender  in  accordance  with  the  provisions  of
Section 2.05(a).  The Borrowers shall repay to the Agent, for the benefit of the applicable Lenders,
(i)  on  the  Commitment Termination  Date,  the  then  outstanding  principal  balance  of  all  Initial
Loans and (ii) on the relevant maturity date for any Extension Series of Extended Commitments,
the then outstanding principal balance of all Extended Loans in respect of such Extension Series.
The  Borrowers  shall  repay  to  the  Agent  the  then  outstanding  principal  balance  of  all  other
Obligations  (other  than  the  Initial  Loans,  Swingline  Loans  and Extended  Loans)  on  the
Termination Date (subject to earlier repayment as provided below).  Each Loan shall bear interest
from the date thereof on the outstanding principal balance thereof as set forth in this Article II.
Each Lender is hereby authorized by the Borrowers to endorse on a schedule attached to any Note
delivered to such Lender (or on a continuation of such schedule attached to such Note and made a
part thereof), or otherwise to record in such Lender’s internal records, an appropriate notation
evidencing the date and amount of each Loan from such Lender, each payment and prepayment of
principal of any such Loan, each payment of interest on any such Loan and the other information
provided for on such schedule; provided, however, that the failure of any Lender to make such a
notation or any error therein shall not affect the obligation of the Borrowers to repay the Loans
made by such Lender in accordance with the terms of this Agreement and the applicable Notes.
Section 2.09 Termination  or  Reduction  of  Commitments;  Increase  of
Commitments.
(a) Upon at least two (2) Business Days’ prior written notice to the Agent, the
Parent Borrower may at any time in whole permanently terminate, or from time to time in part
permanently reduce, the Commitments of any Class.  Each such partial reduction shall be in the 

	
	
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principal  amount  of  $5,000,000  or  any  integral  multiple  thereof.    Each  such  reduction  or
termination shall (i) be applied ratably to the Commitments of each Lender of such Class, except
that,  notwithstanding  the  foregoing,  (1)  the  Parent  Borrower  may  allocate  any  termination  or
reduction of Commitments among Classes of Commitments either (A) ratably among Classes or
(B)  first  to  the  Commitments  with  respect  to  any  Existing  Commitments  and  second  to  any
Extended Commitments, in each case, on a pro rata basis based on such Lender’s Commitment
Percentage of the applicable Class of Commitments and (2) in connection with the establishment
on any date of any Extended Commitments pursuant to Section 2.20, the Existing Commitments
of any one or more Lenders providing any such Extended Commitments on such date shall be
reduced in an amount equal to the amount of Specified Existing Commitments so extended on
such date (provided that (x) after giving effect to any such reduction and to the repayment of any
Loans  made  on  such  date,  the  Credit  Extensions  of  any  such  Lender  does  not  exceed  the
Commitment thereof (such Credit Extension and Commitment being determined in each case, for
the avoidance of doubt, exclusive of such Lender’s Extended Commitment and any exposure in
respect thereof) and (y) for the avoidance of doubt, any such repayment of Loans contemplated by
the preceding clause (x) shall be made in compliance with the requirements of Section 2.18 with
respect to the ratable allocation of payments hereunder, with such allocation being determined
after  giving  effect  to  any  conversion  pursuant  to Section 2.20  of  Existing  Commitments  and
Existing Loans into Extended Commitments and Extended Loans respectively, and prior to any
reduction being made to the Commitment of any other Lender) and (ii) be irrevocable when given.
At the effective time of each such reduction or termination, the Borrowers shall pay to the Agent
for  application  as  provided  herein  (i)  all  Commitment  Fees  accrued  on  the  amount  of  the
Commitments so terminated or reduced through the date thereof and (ii) any amount by which the
Credit Extensions outstanding on such date exceed the amount to which the Commitments are to
be reduced effective on such date, in each case pro rata based on the amount prepaid.
(b) The  Borrowers  shall  have  the  right  to  increase  the  Commitments by
obtaining additional Commitments, either from one or more of the Lenders or another lending
institution provided that (i) any such request for an increase shall be in a minimum amount of
$25,000,000, (ii) the Parent Borrower, on behalf of the Borrowers, may make a maximum of four
(4) such requests, (iii) the Agent has approved the identity of any such new Lender, such approval
not to be unreasonably withheld, (iv) any such new Lender assumes all of the rights and obligations
of a “Lender” hereunder, and (v) the procedures described in Section 2.09(c) have been satisfied;
provided that for purposes of clarity, no Lender shall have any obligation to agree to increase its
Commitments.
(c) Any amendment hereto for such an increase or addition of the Commitments
pursuant to Section 2.09(b) shall be in form and substance reasonably satisfactory to the Agent
and shall only require the written signatures of the Agent, the Borrowers and each Lender being
added or increasing its Commitment (each such Lender,  a “Commitment Increase Lender”),
subject only to the approval of the requisite Lenders pursuant to Section 10.02(b) if any such
increase would cause the Total Commitment to exceed $1,000,000,000.  As a condition precedent
to such an increase, the Borrowers shall deliver to the Agent a certificate of each Borrower signed
by an authorized officer of each Borrower (i) certifying and attaching the resolutions adopted by
such Borrower approving or consenting to such increase, and (ii) in the case of the Borrowers,
certifying  that,  before  and  after  giving  effect  to  such  increase,  (A)  the  representations  and
warranties  contained  in Article IV  and  the  other  Loan  Documents  are  true  and  correct  in  all 

	
	
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material respects (except any representations and warranties qualified by materiality shall be true
and  correct  in  all  respects),  except  to  the  extent  that  such  representations  and  warranties
specifically refer to an earlier date, in which case they are true and correct in all material respects
(except any representations and warranties qualified by materiality shall be true and correct in all
respects) as of such earlier date, and (B) no Default exists.
(d) On  the  effective  date  of  any  increase  or  addition  of  the  Commitments
pursuant  to Section 2.09(b),  (i) the  aggregate  principal  amount  of  the  Revolving  Loans
outstanding (the “Existing Revolving Borrowings”) immediately prior to the effectiveness of
such increase of the Commitments shall be deemed to be repaid, (ii) each Commitment Increase
Lender  that  shall  have  had  a  Commitment  prior  to  the  effectiveness  of  such  increase  of  the
Commitments shall pay to the Agent in dollars, in immediately available funds, an amount equal
to the difference between (A) the product of (1) such Lender’s Commitment Percentage (calculated
after giving effect to the effectiveness of such increase of the Commitments) multiplied by (2) the
aggregate amount of the Resulting Revolving Borrowings (as defined below) and (B) the product
of (1) such Lender’s Commitment Percentage (calculated without giving effect to the effectiveness
of such increase of the Commitments) multiplied by (2) the aggregate  amount of the Existing
Revolving  Borrowings,  (iii) each  Commitment  Increase  Lender  that  shall  not  have  had  a
Commitment prior to the effectiveness of such increase of the Commitments shall pay to the Agent
in dollars, in immediately available funds, an amount equal to the product of (1) such Lender’s
Commitment Percentage (calculated after giving effect to the effectiveness of such increase of the
Commitments) multiplied by (2) the aggregate amount of the Resulting Revolving Borrowings,
(iv) after the Agent receives the funds specified in clauses (ii) and (iii) above, the Agent shall pay
to each Lender the portion of such funds that is equal to the difference between (A) the product of
(1) such Lender’s Commitment Percentage (calculated without giving effect to the effectiveness
of such increase of the Commitments) multiplied by (2) the aggregate  amount of the Existing
Revolving  Borrowings,  and  (B)  the  product  of  (1)  such  Lender’s Commitment  Percentage
(calculated after giving effect to the effectiveness of such increase of the Commitments) multiplied
by (2) the aggregate amount of the Resulting Revolving Borrowings, (v) after the effectiveness of
such increase of the Commitments, the Borrowers shall be deemed to have made new Borrowings
of Revolving Loans (the “Resulting Revolving Borrowings”) in an aggregate amount equal to
the aggregate amount of the Existing Revolving Borrowings and of the Types and for the Interest
Periods specified in a Borrowing Request delivered to the Agent in accordance with Section 2.03
(and the Parent Borrower shall deliver such Borrowing Request), (vi) each Lender shall be deemed
to  hold  its  Commitment  Percentage  of  each  Resulting  Revolving  Borrowing  (calculated  after
giving effect to the effectiveness of such increase of the Commitments) and (vii) the Borrowers
shall pay each Lender any and all accrued but unpaid interest on its Loans comprising the Existing
Revolving  Borrowings.    The  deemed  payments  of  the  Existing  Revolving  Borrowings  made
pursuant to clause (i) above shall be subject to compensation by the Borrowers pursuant to the
provisions of Section 2.21(d) if the date of the effectiveness of such increase of the Commitments
occurs other than on the last day of the Interest Period relating thereto.  Upon each increase of the
Commitments, the participation interests of the Lenders in the then outstanding Letters of Credit
shall automatically be adjusted to reflect, and each Lender (including each Commitment Increase
Lender) shall have a participation in each such Letter of Credit equal to, the Lenders’ respective
Commitment Percentage of the aggregate amount available to be drawn under each such Letter of
Credit, after giving effect to such increase of the Commitments. 

	
	
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(e) Within a reasonable time after the effective date of any increase or addition
of the Commitments pursuant to Section 2.09(b), the Agent shall, and is hereby authorized and
directed  to,  revise Schedule  1.1  to  reflect  such  increase  and  shall  distribute  such  revised
Schedule 1.1 to each of the Lenders and the Borrowers, whereupon such revised Schedule 1.1
shall replace the old Schedule 1.1 and become part of this Agreement.
(f) On  the  effective  date  of  any  increase  or  addition  of  the  Commitments
pursuant to Section 2.09(b), the amount of any dollar threshold in this Agreement based on Excess
Availability  (including,  for  the  avoidance  of  doubt,  the  dollar  thresholds  included  in  (x)  the
definitions  of  “Activation  Period”,  “Cash  Control  Event”,  “Excess  Availability  Threshold”,
“Inspection Trigger Period” and “Trigger Period” and (y) Section 7.08) shall be increased so that
the percentage of the Total Commitment represented by such dollar threshold after giving effect
to such increase or addition of the Commitments equals the percentage of the Total Commitment
represented  by  such  dollar  threshold  before  giving  effect  to  such  increase  or  addition  of  the
Commitments.  Within a reasonable time after the effective date of any increase or addition of the
Commitments pursuant to Section 2.09(b), the Agent shall, and is hereby authorized and directed
to, amend this Agreement solely to reflect such changes to the amount of any dollar thresholds in
this Agreement based on Excess Availability as set forth above and shall distribute such revised
copy of this Agreement to each of the Lenders and the Borrowers, whereupon such revised copy
shall replace this Agreement.
Section 2.10 Letter of Credit Fees.
(a) The Borrowers shall pay the Agent, for the account of the Lenders, on the
third Business Day after each Quarterly Date and on the Latest Maturity Date, in arrears, a fee
(each, a “Letter of Credit Fee”) equal to the following per annum percentages of the average
daily  amount  of  Standby  Letter  of  Credit  Outstandings  or  Commercial  Letter  of  Credit
Outstandings,  as  applicable  (excluding  in  each  case  any  portion  thereof  attributable  to
unreimbursed LC Disbursements) during the period from and including the Effective Date to but
excluding the later of the date such Lender’s Commitment terminates and the date on which such
Lender ceases to have any Standby Letter of Credit Outstandings or Commercial Letter of Credit
Outstandings, as applicable (each computed on the basis of the actual number of days elapsed
(including the first day but excluding the last day) over a year of 360 days):
(i) Standby Letters of Credit:  At the then Applicable Rate per annum
for Eurocurrency Loans.
(ii) Commercial Letters of Credit:  At 50% of the then Applicable Rate
per annum for Eurocurrency Loans.
(iii) After  the  occurrence  and  during  the  continuance  of  an  Event  of
Default, at the option of the Agent or upon the direction of the Required Lenders, the Letter
of Credit Fee set forth in clauses (i) and (ii) above, shall be increased by an amount equal
to two percent (2%) per annum.
(b) The Borrowers shall pay to each Issuing Lender, in addition to all Letter of
Credit Fees otherwise provided for hereunder, such fronting fees and other fees and charges in 

	
	
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connection  with  the  issuance,  negotiation,  settlement,  amendment,  renewal,  extension,
administration  and  processing  of  each  Letter  of  Credit  issued  by  such  Issuing  Lender  as  are
customarily imposed by such Issuing Lender from time to time in connection with letter of credit
transactions.
(c) Participation fees and fronting fees, if any, accrued through and including
each Quarterly Date shall be payable on the third Business Day following such Quarterly Date,
commencing on the first such date to occur after the Second Third Amendment Effective Date;
provided that all such fees shall be payable on the date on which the Commitments terminate and
any such fees accruing after the date on which the Commitments terminate shall be payable on
demand.  Any other fees payable to any Issuing Lender pursuant to this Section 2.10 shall be
payable within 10 days after demand.  All participation fees and fronting fees, if any, shall be
computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).
Section 2.11 Certain Fees.
The  Borrowers  shall  pay  to  the  Agent  and  its  Affiliates,  as  applicable,  for  their  own
accounts, the fees set forth in the Fee Letter as and when payment of such fees is due as set forth
therein.
Section 2.12 Unused Commitment Fee.
The Borrowers agree to pay to the Agent for account of each Lender a commitment fee
(the “Commitment Fee”), which shall accrue at the Commitment Fee Rate on the daily unused
amount of the Commitment of such Lender during the period from and including the Effective
Date to but excluding the date such Commitment terminates; provided that Swingline Loans shall
be excluded for the purposes of this calculation.  Accrued commitment fees shall be payable in
arrears on each Quarterly Date and on the date the Commitments terminate, commencing on the
first such date to occur after the Effective Date; provided that any commitment fees accruing after
the date on which the Commitments terminate shall be payable on demand.  All commitment fees
shall be computed on the basis of a year of 360 days and shall be payable for the actual number of
days  elapsed  (including  the  first  day  but  excluding  the  last  day).    The  Agent  shall  pay  the
Commitment Fee to the Lenders based upon their pro rata share of the aggregate Commitment Fee
due to all Lenders on the date payment is due.
Section 2.13 Interest on Loans.
(a) Subject to Section 2.13(d), each Base Rate Loan shall bear interest at a rate
per annum that shall be equal to the then Alternate Base Rate, plus the Applicable Rate for Base
Rate Loans.
(b) Subject to Section 2.13(d), each Eurocurrency Loan shall bear interest at a
rate per annum equal, during each Interest Period applicable thereto, to the Adjusted LIBO Rate
for such Interest Period, plus the Applicable Rate for Eurocurrency Loans.
(c) [Reserved] 

	
	
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(d) Effective  upon  the  occurrence  of  any  Event  of  Default  and  at  all  times
thereafter while such Event of Default is continuing, interest shall accrue on all outstanding Loans
(including Swingline Loans) (after as well as before judgment, as and to the extent permitted by
law) at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2.00% plus the
rate (including the Applicable Rate  for Loans) otherwise applicable to such Loan  as provided
above or (ii) in the case of any other amount, 2.00% plus the rate applicable to Base Rate Loans
as provided in paragraph (a) of this Section, and such interest shall be payable on demand.
(e) Accrued interest on each Loan shall be payable in arrears on each Interest
Payment Date for such Loan and, in the case of Revolving Loans and Swingline Loans, upon
termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (d) of
this Section shall be payable on demand; (ii) in the event of any repayment or prepayment of any
Loan (other than a prepayment of a Base Rate Loan prior to the Maturity Date applicable to such
Loan), accrued interest on the principal amount repaid or prepaid shall be payable on the date of
such  repayment  or  prepayment;  and  (iii)  in  the  event  of  any  conversion  of  any  Eurocurrency
Borrowing prior to the end of the Interest Period therefor, accrued interest on such Eurocurrency
Borrowing shall be payable on the effective date of such conversion.
(f) All interest hereunder shall be computed on the basis of a year of 360 days,
except that interest computed by reference to the Alternate Base Rate at times when the Alternate
Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366
days  in  a  leap  year),  and  in  each  case  shall  be  payable  for  the actual number of days elapsed
(including the first day but excluding the last day).  The applicable Alternate Base Rate, Adjusted
LIBO  Rate  or  LIBO  Rate  shall  be  determined  by  the  Agent,  and  such  determination  shall  be
conclusive absent manifest error.
Section 2.14 Nature of Fees.
All fees shall be paid on the dates due, in Dollars and immediately available funds, to the
Agent, for the respective accounts of the Agent, the Issuing Lenders, and the Lenders, as provided
herein.    Once  paid,  all  fees  shall  be  fully  earned  and  shall  not  be  refundable  under  any
circumstances.
Section 2.15 [Reserved].
Section 2.16 Alternate Rate of Interest.
(a) If (a)  Subject to clauses (c), (d), (e), (f), (g) and (h) of this Section 2.16,
if prior to the commencement of any Interest Period for a Eurocurrency Borrowing:
(i) the Agent determines (which determination shall be conclusive and
binding  absent  manifest  error)  that  adequate  and  reasonable  means  do  not  exist  for
ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable (including, without
limitation,  by  means  of  an  Interpolated  Rate  or  because  the  LIBO  Screen  Rate  is  not
available  or  published  on  a  current  basis)  for  such  Interest  Period;  provided  that  no
Benchmark Transition Event shall have occurred at such time; or 

	
	
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(ii) the  Agent  is  advised  by  the  Required  Lenders  that  the  Adjusted
LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately
and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans
(or its Loan) included in such Borrowing for such Interest Period;
then the Agent shall give notice thereof to the Borrowers Parent Borrower and the Lenders through
Electronic System as provided in Section 10.01 as promptly as practicable thereafter and, until the
Agent notifies the Parent Borrower and the Lenders that the circumstances giving rise to such
notice no longer exist, (A) any notice from the Parent Borrower to the Agent in accordance with
Section 2.17 that requests the conversion of any Borrowing to, or continuation of any Borrowing
as, a Eurocurrency Borrowing shall be ineffective and any such Eurocurrency Borrowing shall be
repaid or converted into a Borrowing of Base Rate Loans on the last day of the then current Interest
Period applicable thereto, and (B) if any Borrowing Request requests a Eurocurrency Borrowing,
such Borrowing shall be made as a Borrowing of Base Rate Loans.
(b) If any Lender determines that any requirement of law has made it unlawful,
or if any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable
lending  office  to  make,  maintain,  fund  or  continue  any  Eurocurrency  Borrowing,  or  any
Governmental  Authority  has  imposed  material  restrictions  on  the  authority  of  such  Lender  to
purchase or sell, or to take deposits of, dollars in the London interbank market, then, on notice
thereof by such Lender to the Borrowers Parent Borrower through the Agent, any obligations of
such Lender to make, maintain, fund or continue Eurocurrency Loans or to convert Borrowings of
Base Rate Loans to Eurocurrency Borrowings will be suspended until such Lender notifies the
Agent and the Borrowers Parent Borrower that the circumstances giving rise to such determination
no longer exist.  Upon receipt of such notice, the Borrowers will upon demand from such Lender
(with a copy to the Agent), either prepay or convert all Euroccurency Borrowings of such Lender
to Borrowings of Base Rate Loans, either on the last day of the Interest Period therefor, if such
Lender  may  lawfully  continue  to  maintain  such  Eurocurrency  Borrowings  to  such  day,  or
immediately, if such Lender may not lawfully continue to maintain such Loans.  Upon any such
prepayment or conversion, the Borrowers will also pay accrued interest on the amount so prepaid
or converted.
(c) Notwithstanding  anything  to  the  contrary  herein  or  in  any  other  Loan
Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as
applicable, the Agent and the Borrowers may amend this Agreement to replace the LIBO Rate
with a Benchmark Replacement.  Any such amendment with respect to a Benchmark Transition
Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Agent has posted
such proposed amendment to all Lenders and the Borrower,  (and any Hedging Agreement shall
be  deemed  not  to  be  a  “Loan  Document”  for  purposes  of  this Section 2.16),  if a  Benchmark
Transition  Event  or  an  Early  Opt-in  Election,  as  applicable, and  its  related  Benchmark
Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-
current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause
(1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date,
such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under
any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings
without any amendment to, or further action or consent of any other party to, this Agreement or
any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with 

	
	
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clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date,
such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under
any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City
time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is
provided to the Lenders without any amendment to, or further action or consent of any other party
to, this Agreement or any other Loan Document so long as the Agent has not received, by such
time,  written  notice  of  objection  to  such proposed  amendment  from  Lenders  comprising  the
Required Lenders; provided that, with respect to any proposed amendment containing any SOFR-
Based Rate, the Lenders shall be entitled to object only to the Benchmark Replacement Adjustment
contained therein.  Any such amendment with respect to an Early Opt-in Election will become
effective on the date that Lenders comprising the Required Lenders have delivered to the Agent
written notice that such Required Lenders accept such amendment.  No replacement of LIBO Rate
with a Benchmark Replacement will occur prior to the applicable  Benchmark  Transition  Start
Date.Benchmark Replacement from Lenders comprising the Required Lenders.
(d) Notwithstanding  anything  to  the  contrary  herein  or  in  any  other  Loan
Document and subject to the proviso below in this paragraph, if a Term SOFR Transition Event
and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect
of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will
replace the then-current Benchmark for all purposes hereunder or under any Loan Document in
respect of such Benchmark setting and subsequent Benchmark settings, without any amendment
to, or further action or consent of any other party to, this Agreement or any other Loan Document;
provided that, this clause (d) shall not be effective unless the Agent has delivered to the Lenders
and the Parent Borrower a Term SOFR Notice.  For the avoidance of doubt, the Agent shall not be
required to deliver a Term SOFR Notice after a Term SOFR Transition Event and may do so in its
sole discretion.
(e) (d)In connection with the implementation of a Benchmark Replacement, the
Agent will have the right to make Benchmark Replacement Conforming Changes from time to
time and, notwithstanding anything to the contrary herein or in any other Loan Document, any
amendments  implementing  such  Benchmark  Replacement  Conforming  Changes  will  become
effective without any further action or consent of any other party to this Agreement or any other
Loan Document.
(f) (e)The Agent will promptly notify the Borrowers Parent Borrower and the
Lenders of (i) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event
or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the
implementation  of  any  Benchmark  Replacement,  (iii)  the  effectiveness  of  any  Benchmark
Replacement Conforming Changes and (iv) , (iv) the removal or reinstatement of any tenor of a
Benchmark  pursuant  to clause  (g)  below  and  (v) the  commencement  or  conclusion  of  any
Benchmark Unavailability Period.  Any determination, decision or election that may be made by
the  Agent  or , if  applicable, any Lender (or group of Lenders ) pursuant to this Section 2.16,
including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-
occurrence of an event, circumstance or date and any decision to take or refrain from taking any
action or any selection, will be conclusive and binding absent manifest error and may be made in
its or their sole discretion and without consent from any other party heretoto this Agreement or 

	
	
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any  other  Loan  Document,  except,  in  each  case,  as  expressly  required  pursuant  to  this
Section 2.16.
(g) Notwithstanding  anything  to  the  contrary  herein  or  in  any  other  Loan
Document,  at  any  time  (including  in  connection  with  the  implementation  of  a  Benchmark
Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or LIBO
Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information
service  that  publishes  such  rate  from  time  to  time  as  selected by  the  Agent  in  its  reasonable
discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided
a public statement or publication of information announcing that any tenor for such Benchmark is
or will be no longer representative, then the Agent may modify the definition of “Interest Period”
for any Benchmark settings at or after such time to remove such unavailable or non-representative
tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently
displayed  on  a  screen  or  information  service  for  a  Benchmark  (including  a  Benchmark
Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer
be representative for a Benchmark (including a Benchmark Replacement), then the Agent may
modify  the  definition  of  “Interest  Period”  for  all  Benchmark  settings  at  or  after  such  time  to
reinstate such previously removed tenor.
(h) (f)Upon the Parent Borrower’s receipt of notice of the commencement of a
Benchmark  Unavailability  Period, (i)  any  notice  from  the  Parent  Borrower  to  the  Agent  in
accordance with Section 2.17 that requests the conversion of any Borrowing to, or continuation of
any Borrowing as, the Borrowers may revoke any request for a Eurocurrency Borrowing shall be
ineffective and any such Eurocurrency Borrowing shall be repaid or converted into a Borrowing
of Base Rate Loans on the last day of the then current Interest Period applicable thereto, and (ii) if
any Borrowing Request requests a Eurocurrency Borrowing, such Borrowing shall be made as a
Borrowing of Base Rate Loansof, conversion to or continuation of Eurocurrency Loans to be made,
converted  or  continued  during  any  Benchmark  Unavailability  Period  and,  failing  that,  the
Borrowers will be deemed to have converted any such request into a request for a Borrowing of or
conversion to Base Rate Loans.  During any Benchmark Unavailability Period or at any time that
a tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate
Base  Rate  based  upon  the  then-current  Benchmark  or  such  tenor  for  such  Benchmark,  as
applicable, will not be used in any determination of the Alternate Base Rate.
Section 2.17 Conversion and Continuation of Loans.
The Parent Borrower on behalf of the Borrowers shall have the right at any time,
(a) on three (3) Business Days’ prior irrevocable notice to the Agent (which
notice, to be effective, must be received by the Agent not later than 11:00 a.m., New York City
time,  on  the  third  Business  Day  preceding  the  date  of  any  conversion),  (x)  to  convert  any
outstanding Borrowings of Base Rate Loans (but in no event Swingline Loans) to Borrowings of
Eurocurrency Loans or (y) to continue an outstanding Borrowing of Eurocurrency Loans for an
additional Interest Period, or
(b) on same-day notice to the Agent (which notice, to be effective, must be
received by the Agent not later than 11:00 a.m., New York City time, on the date of any conversion 

	
	
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which must be a Business Day), to convert any outstanding Borrowings of Eurocurrency Loans to
a Borrowing of Base Rate Loans,
subject to the following:
(i) no  Borrowing  of  Loans  may  be  converted  into,  or  continued  as,
Eurocurrency Loans at any time when an Event of Default has occurred and is continuing
and the Agent or the Required Lenders have determined in its or their sole discretion not
to  permit  such  conversions,  and  any  Eurocurrency  Loans  that  cannot  be  continued  as
Eurocurrency Loans as a result shall, unless repaid, be converted to a Borrowing of Base
Rate Loans at the end of the Interest Period therefor;
(ii) if less than a full Borrowing of Loans is converted, such conversion
shall be made pro rata among the Lenders, as applicable, in accordance with the respective
principal  amounts  of  the  Loans  comprising  such  Borrowing  held  by  such  Lenders
immediately prior to such refinancing;
(iii) the  aggregate  principal  amount  of  Loans  being  converted  into  or
continued  as  Eurocurrency  Loans  shall  be  in  an  integral  of  $1,000,000  and  at  least
$5,000,000;
(iv) the  Interest  Period  with  respect  to  a  Borrowing  of  Eurocurrency
Loans effected by a conversion or in respect to the Borrowing of Eurocurrency Loans being
continued  as  Eurocurrency  Loans  shall  commence  on  the  date  of  conversion  or  the
expiration of the current Interest Period applicable to such continuing Borrowing, as the
case may be;
(v) a Borrowing of Eurocurrency Loans may be converted only on the
last day of an Interest Period applicable thereto;
(vi) each  request  for  a  conversion  or  continuation  of  a  Borrowing  of
Eurocurrency Loans which fails to state an applicable Interest Period shall be deemed to
be a request for an Interest Period of one month; and
(vii) no more than fifteen (15) Borrowings of Eurocurrency Loans may
be outstanding at any time.
If the Parent Borrower does not give notice to convert any Borrowing of Base Rate Loans, or does
not give notice to continue, or does not have the right to continue, any Borrowing as Eurocurrency
Loans, in each case as provided above, such Borrowing shall automatically be converted to, or
continued as, as applicable, a Borrowing of Base Rate Loans at the expiration of the then-current
Interest Period.  The Agent shall, after it receives notice from the Parent Borrower, promptly give
each Lender notice of any conversion, in whole or part, of any Loan made by such Lender.
Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Setoffs.
(a) Payments by the Borrowers.  The Borrowers shall make each payme nt
required to be made by it hereunder or under any other Loan Document (whether of principal, 

	
	
  75

interest,  fees  or  reimbursement  of  LC  Disbursements,  or  of  amounts  payable  under
Section 2.22(b), Section 2.26 or Section 2.28, or otherwise) prior to 1:00 p.m., New York City
time, on the date when due, in immediately available funds, without setoff or counterclaim.  Any
amounts received after such time on any date may, in the discretion of the Agent, be deemed to
have  been  received  on  the  next  succeeding  Business  Day  for  purposes  of  calculating  interest
thereon.  All such payments shall be made to the Agent at its offices at 10 South Dearborn Street,
22nd  Floor,  Chicago,  Illinois,  except  payments  to  be  made  directly to  an  Issuing  Lender  or  a
Swingline  Lender  as  expressly  provided  herein  and  except  that  payments  pursuant  to
Section 2.22(b), Section 2.26, Section 2.28 and Section 10.04  shall  be  made  directly  to  the
Persons entitled thereto and payments pursuant to other Loan Documents shall be made to the
Persons specified therein.  The Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following receipt thereof.  If any
payment  under  any  Loan  Document  (other  than  payments  with  respect  to  Eurocurrency
Borrowings)  shall  be  due  on  a  day  that  is  not  a  Business  Day,  the  date  for  payment  shall  be
extended  to  the  next  succeeding  Business  Day,  and,  if  any  payment  due  with  respect  to
Eurocurrency Borrowings shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day, unless that succeeding Business Day is in
the next calendar month, in which event, the date of such payment shall be on the last Business
Day of subject calendar month, and, in the case of any payment accruing interest, interest thereon
shall be payable for the period of such extension.  All payments under each Loan Document shall
be made in dollars.
(b)Application  of  Insufficient  Payments.    If  at  any  time  insufficient  funds  are
received by and available to the Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, to pay
all fees then due, and all costs and expenses then due or reimbursable, to the Agent, in its capacity
as such, under any Loan Document, (ii) second, to pay all principal and interest then due hereunder
in respect of the Swingline Loans, ratably between the Swingline Lenders in accordance with the
amounts of such principal and interest then due to the Swingline Lenders, (iii) third, to reimburse
all unreimbursed LC Disbursements and to pay all letter of credit fronting fees, if any, then due
hereunder, ratably between the Issuing Lenders entitled thereto in accordance with the amounts
thereof then due to the Issuing Lenders, (iv) fourth, to pay all other interest and other fees then due
hereunder,  ratably  among  the  parties  entitled  thereto  in  accordance  with  the  amounts  of  such
interest and fees then due to such parties, (v) fifth, to pay all other principal then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of such principal then
due to such parties, and (vi) sixth, to pay all other Obligations then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of such Obligations then due to such
parties.
(b) Application  of  Payments.    All  payments  and  any  proceeds  of  Collateral
received by Agent (i) not constituting either (A) a specific payment of principal, interest, fees or
other sum payable under the Loan Documents (which shall be applied as specified by the Parent
Borrower), (B) a mandatory prepayment (which shall be applied in accordance with Section 2.21)
or (C) amounts to be applied from the JPMorgan Concentration Account when full cash dominion
is in effect (which shall be applied in accordance with Section 2.24) or (ii) after an Event of Default
has occurred and is continuing and the Agent so elects or the Required Lenders so direct, shall be
applied ratably: (i) first, to pay any fees, indemnities, or expense reimbursements then due to the 

	
	
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Agent and the Issuing Lenders from the Borrowers (other than in connection with Bank Product
Obligations); (ii) second, to pay any fees, indemnities, or expense reimbursements then due to the
Lenders from the Borrowers (other than in connection with Bank Product Obligations); (iii) third,
to pay interest due in respect of any Permitted Overadvances; (iv) fourth, to pay the principal of
any Permitted Overadvances, (v) fifth, to pay interest then due and payable on Credit Extensions
(other than any Permitted Overadvances) ratably; (vi) sixth, to repay outstanding Swingline Loans;
(vii)  seventh,  pro  rata,  to  repay  (x)  other  outstanding  Loans, (y) all  unreimbursed  LC
Disbursements to pay an amount to the Agent equal to one hundred three percent (103%) of the
Letter of Credit Outstandings to be held as cash collateral for such Obligations and to pay all letter
of credit fronting fees, if any, then due hereunder, ratably between the Issuing Lenders entitled
thereto in accordance with the amounts thereof then due to the Issuing Lenders, and (z) outstanding
obligations with respect to Specified Bank Products up to an aggregate amount not to exceed the
Specified Bank Product Amount; provided that outstanding Base Rate Loans shall be repaid before
outstanding  Eurocurrency  Loans  are  repaid;  and  further  provided  that  payments  to  repay
outstanding Eurocurrency Loans shall be accompanied by the payment of all “Breakage Costs”
due in respect of such repayment pursuant to Section 2.22(b); and (viii) eighth, to pay all other
Obligations  (including,  for  the  avoidance  of  doubt,  outstanding  obligations  with  respect  to
Specified Bank Products that were not otherwise repaid under the “seventh” step set forth above)
that are then outstanding and then due and payable (it being understood that undrawn Letters of
Credit shall not be required to be cash collateralized if no Event of Default has occurred and is
continuing).
(c) Pro Rata Treatment.  Except to the extent otherwise provided herein (for the
avoidance of doubt, as this Agreement is in effect from time to time), including Sections 2.20(f)
and 2.31: (i) each payment of commitment fees under Section 2.12 and letter of credit fees under
Section 2.10 shall be made for the account of the Lenders, and each termination or reduction of
the  amount  of  the  Commitments  under Section 2.09  shall  be  applied  to  the  respective
Commitments of the Lenders, pro rata according to the amounts of their respective Commitments
(or, in the case of any such payment of commitment fees at a time when the Commitments shall
have  terminated  or  expired,  pro  rata  according  to  the  amounts  of  their  respective  Credit
Extensions); (ii) each Borrowing of Revolving Loans shall be allocated pro rata among the Lenders
according to the amounts of their respective Commitments (in the case of the making of Revolving
Loans)  or  their  respective  Loans  that  are  to  be  included  in  such  Borrowing  (in  the  case  of
conversions and continuations of Loans); (iii) each payment or prepayment of any Borrowing of
Revolving Loans shall be applied ratably to the Loans included in the repaid or prepaid Borrowing
of  Revolving  Loans;  (iv)  each  Swingline  Borrowing  shall  be  allocated  pro  rata  between  the
Swingline Lenders according to the amounts of their respective Swingline Commitments; and (v)
each payment or prepayment of any Swingline Borrowing shall be applied ratably to the Swingline
Loans  included  in  the  repaid  or  prepaid  Swingline  Borrowing;  and  (vi)  each  payment  or
prepayment of any other Obligations shall be applied ratably to Bank Product Obligations included
in the repaid or prepaid other Obligations.
(d) Sharing of Payments by Lenders.  If (i) any Lender shall, by exercising any
right  of  setoff  or  counterclaim  or  otherwise,  obtain  payment  in  respect  of  any  principal  of  or
interest on any of its Loans or participations in LC Disbursements or Swingline Loans resulting in
such Lender’s receiving payment of a greater proportion of the aggregate amount of its Loans and
accrued  interest  thereon  than  the  proportion  received  by  any  other  Lender,  then  the  Lender 

	
	
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receiving such greater proportion shall (A) notify the Administrative Agent of such fact and (B)
purchase  (for  cash  at  face  value)  participations  in  the  Loans  and  participations  in  LC
Disbursements and Swingline Loans of other Lenders, or make such other adjustments as shall be
equitable,  so  that  the  benefit  of  all  such  payments  shall  be  shared  by  the  Lenders  ratably  in
accordance with the aggregate amounts of principal of and accrued interest on their Loans and
participations in LC Disbursements and Swingline Loans or (ii) any Swingline Lender shall, by
exercising  any  right  of  setoff  or  counterclaim  or  otherwise,  obtain  payment  in  respect  of  any
principal of or interest on any of its Swingline Loans resulting in such Swingline Lender receiving
payment  of  a  greater  proportion  of  the  aggregate  amount  of  its Swingline  Loans  and  accrued
interest thereon than the proportion received by the other Swingline Lender, then the Swingline
Lender receiving such greater proportion shall (A) notify the Administrative Agent and the other
Swingline  Lender  of  such  fact  and  (B)  purchase  (for  cash  at  face  value)  participations  in  the
Swingline Loans of the other Swingline Lender to the extent necessary so that the amount of all
such payments shall be shared by the Swingline Lenders ratably in accordance with the aggregate
amounts of principal of and accrued interest on their Swingline Loans, provided that:
(i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest; and
(ii) the provisions of this paragraph shall not be construed to apply to
(x) any payment made by any Borrower pursuant to and in accordance with the express
terms of this Agreement (for the avoidance of doubt, as this Agreement is in effect from
time to time), including Sections 2.09(d) and 2.20(f), or (y) any payment obtained by a
Lender as consideration for the assignment of or sale of a participation in any of its Loans
or participations in LC Disbursements or Swingline Loans to any Eligible Assignee.
Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements
may  exercise  against  each  Borrower  rights  of  setoff  and  counterclaim  with  respect  to  such
participation as fully as if such Lender were a direct creditor of each Borrower in the amount of
such participation.
(e) Payments by the Borrowers; Presumptions by the Agent.  Unless the Agent
shall have received notice from the Parent Borrower prior to the date on which any payment is due
to the Agent for the account of the Lenders or an Issuing Lender hereunder that the Borrowers will
not make such payment, the Agent may assume that the Borrowers have made such payment on
such date in accordance herewith and may, in reliance upon such assumption, distribute to the
Lenders or such Issuing Lender, as the case may be, the amount due.    In  such  event,  if  the
Borrowers have not in fact made such payment, then each of the Lenders or such Issuing Lender,
as the case may be, severally agrees to repay to the Agent forthwith on demand the amount so
distributed to such Lender or such Issuing Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to the
Agent, at the greater of the NYFRB Rate and a rate determined by the Agent in accordance with
banking industry rules on interbank compensation. 

	
	
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(f) Certain  Deductions  by  the  Agent.    If  any  Lender  shall  fail  to  make  any
payment required to be made by it hereunder to or for the account of the Agent, any Issuing Lender
or  any  Swingline  Lender,  then  the  Agent  may,  in  its  discretion (notwithstanding  any  contrary
provision hereof), (i) apply any amounts thereafter received by the Agent for the account of such
Lender to satisfy such Lender’s obligations in respect of such payment until all such unsatisfied
obligations have been discharged or (ii) hold any such amounts in a segregated account as cash
collateral for, and application to, any future funding obligations of such Lender pursuant to this
Agreement  (including  pursuant  to Sections  2.03(b), 2.05(b), 2.06(e), 2.06(f), 2.18(e)  and
10.04(c)), in each case in such order as shall be determined by the Agent in its discretion.
(g) Returned Payments.  If any item deposited to the JPMorgan Concentration
Account and credited to the Loan Account is dishonored or returned unpaid for any reason, whether
or not such return is rightful or timely, the Agent shall have the right to reverse such credit and
charge the amount of such item to the Loan Account and the Borrowers shall indemnify the Agent,
the Issuing Lenders and the Lenders against all claims and losses resulting from such dishonor or
return.  Without limiting the foregoing, the Agent may delay application of the items deposited in
the  JPMorgan  Concentration  Account  to  the  Obligations  until  the  Agent  has  received  a
reconciliation  of  Non-Borrower  Credit  Card  Proceeds  which  may  have  been  forwarded  to  the
JPMorgan Concentration Account.
Section 2.19 [Reserved]
Section 2.20 Extension Offers.
(a) The Borrowers may at any time and from time to time request that all or a
portion of the Commitments of any Class, existing at the time of such request (each, an “Existing
Commitment” and any related revolving credit loans under any such facility, “Existing Loans”;
each Existing Commitment and related Existing Loans together being referred to as an “Existing
Class”) be converted to extend the termination date thereof and the scheduled maturity date(s) of
any payment of principal with respect to all or a portion of any principal amount of Existing Loans
related  to  such  Existing  Commitments  (any  such  Existing  Commitments  which  have  been  so
extended, “Extended Commitments” and any related revolving credit loans, “Extended Loans”)
and  to  provide  for  other  terms  consistent  with  this Section 2.20.    Prior  to  entering  into  any
Extension Amendment with respect to any Extended Commitments, the Parent Borrower shall
provide a notice to the Agent (who shall provide a copy of such notice to each of the Lenders of
the applicable Class of Existing Commitments and which such request shall be offered equally to
all  Lenders)  (an  “Extension  Request”)  setting  forth  the  proposed  terms  of  the  Extended
Commitments to be established thereunder, which terms shall be substantially similar to those
applicable  to  the  Existing  Commitments  from  which  they  are  to  be  extended  (the  “Specified
Existing  Commitment  Class”)  except  that  (w)  all  or  any  of  the  final  maturity  dates  of  such
Extended Commitments may be delayed to later dates than the final maturity dates of the Existing
Commitments  of  the  Specified  Existing  Commitment  Class,  (x)(i) the  interest  rates,  interest
margins, rate floors, upfront fees, funding discounts, original issue discounts and premiums with
respect to the Extended Commitments may be different from those for the Existing Commitments
of the Specified Existing Commitment Class and/or (ii) additional fees and/or premiums may be
payable to the Lenders providing such Extended Commitments in addition to or in lieu of any of
the  items  contemplated  by  the  preceding clause (i),  (y)(A) the  undrawn  revolving  credit 

	
	
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commitment fee rate with respect to the Extended Commitments may be different from such rate
for Existing Commitments of the Specified Existing Commitment Class and (B) the Extension
Amendment may provide for other covenants and terms that apply to any period after the Latest
Maturity  Date  in  effect  prior  to  the  Extension  Amendment;  provided  that,  notwithstanding
anything to the contrary in this Section 2.20 or otherwise, (1) the borrowing and repayment (other
than in connection with a permanent repayment and termination of commitments (which shall be
governed by clause (3) below)) of the Extended Loans under any Extended Commitments shall be
made  on  a  pro  rata  basis  with  any  borrowings  and  repayments  of the  Existing  Loans  of  the
Specified Existing Commitment Class (the mechanics for which may be implemented through the
applicable Extension Amendment and may include technical changes related to the borrowing and
replacement  procedures  of  the  Specified  Existing  Commitment  Class),  (2) assignments  and
participations of Extended Commitments and Extended Loans shall be governed by the assignment
and participation provisions set forth in Section 10.06, (3) subject to the applicable limitations set
forth in Section 2.09, permanent repayments of Extended Loans (and corresponding permanent
reduction in the related Extended Commitments) shall be permitted as may be agreed between the
Parent Borrower and the Lenders thereof and (4) the Extension Amendment may provide for any
other  amendments  or  modifications  provided  such  other  amendments  or  modifications  are
consented  to  by  the  requisite  Lenders  in  accordance  with Section 10.02 and Section 10.03,  as
applicable.  No Lender shall have any obligation to agree to have any of its Loans or Commitments
of any Existing Class converted into Extended Loans or Extended Commitments pursuant to any
Extension  Request.    Any  Extended  Commitments  of  any  Extension  Series  shall  constitute  a
separate  Class  of  revolving  credit  commitments  from  Existing  Commitments  of  the  Specified
Existing Commitment Class and from any other Existing Commitments (together with any other
Extended Commitments so established on such date).
(b) The Parent Borrower shall provide the applicable Extension Request at least
five  (5)  Business  Days  (or  such  shorter  period  as  the  Agent  may  determine  in  its  reasonable
discretion) prior to the date on which Lenders under the Existing Class are requested to respond,
and shall agree to such procedures, if any, as may be established by, or acceptable to, the Agent,
in each case acting reasonably, to accomplish the purpose of this Section 2.20.  Any Lender (an
“Extending Lender”) wishing to have all or a portion of its Commitments (or any earlier Extended
Commitments) of an Existing Class subject to such Extension Request converted into Extended
Commitments shall notify the Agent (an “Extension Election”) on or prior to the date specified
in  such  Extension  Request  of  the  amount  of  its  Commitments  (and/or  any  earlier  Extended
Commitments)  which  it  has  elected  to  convert  into  Extended  Commitments  (subject  to  any
minimum denomination requirements imposed by the Agent); provided that any Lender that does
not so advise the Parent Borrower shall be deemed to have rejected such Extension Request (any
such Lender which shall have rejected or is deemed to have rejected such extension being a “Non-
Extending Lender”).  In the event that the aggregate amount of Commitments (and any earlier
Extended  Commitments)  subject  to  Extension  Elections  exceeds  the  amount  of  Extended
Commitments requested pursuant to the Extension Request, Commitments and (and any earlier
Extended  Commitments)  subject  to  Extension  Elections  shall  be  converted  to  Extended
Commitments on a pro rata basis based on the amount of Commitments (and any earlier Extended
Commitments) included in each such Extension Election or as may be otherwise agreed to in the
applicable Extension Amendment.  Notwithstanding the conversion of any Existing Commitment
into  an  Extended  Commitment,  such  Extended  Commitment  shall  be treated  identically  to  all
Existing  Commitments  of  the  Specified  Existing  Commitment  Class  for  purposes  of  the 

	
	
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obligations of a Lender in respect of Swingline Loans under Section 2.05 and Letters of Credit
under Section 2.06,  except  that  the  applicable  Extension  Amendment  may  provide  that  the
Swingline Maturity Date and/or the last day for issuing Letters of Credit may be extended and the
related  obligations  to  make  Swingline  Loans  and  issue  Letters  of  Credit  may  be  continued
(pursuant to mechanics to be specified in the applicable Extension Amendment) so long as the
applicable Swingline Lender and/or the applicable Issuing Lender, as applicable, have consented
to such extensions (it being understood that no consent of any other Lender shall be required in
connection with any such extension).
(c) Extended Commitments shall be established pursuant to an amendment (an
“Extension Amendment”) to this Agreement (which, notwithstanding anything to the contrary
set forth in Section 10.02 and Section 10.03, as applicable, shall not require the consent of any
Lender other than the Extending Lenders with respect to the Extended Commitments established
thereby) executed by the Borrowers, the Agent and the Extending Lenders.  It is understood and
agreed that each Lender hereunder has consented, and shall at the effective time thereof be deemed
to consent to each amendment to this Agreement and the other Loan Documents authorized by this
Section 2.20  and  the  arrangements  described  above  in  connection  therewith.   No  Extension
Amendment shall provide for any tranche of Extended Commitments in an aggregate principal
amount  that  is  less  than  $200,000,000.    Notwithstanding  anything  to  the  contrary  in  this
Section 2.20(c)  and  without  limiting  the  generality  or  applicability  of Section 10.02  and
Section 10.03, as applicable, to any Section 2.20 Additional Amendments (as defined below), any
Extension Amendment may provide for additional terms and/or additional amendments other than
those  referred  to  or  contemplated  above  (any  such  additional  amendment,  a  “Section 2.20
Additional Amendment”) to this Agreement and the other Loan Documents; provided that such
Section 2.20 Additional Amendments are within the requirements of Section 2.20(a) and do not
become  effective  prior  to  the  time  that  such  Section 2.20  Additional  Amendments  have  been
consented  to  (including,  without  limitation,  pursuant  to  consents  applicable  to  holders  of  any
Extended Loans provided for in any Extension Amendment) by such of the Lenders, Borrowers
and  other  parties  (if  any)  as  may  be  required  in  order  for  such  Section 2.20  Additional
Amendments  to  become  effective  in  accordance  with Section 10.02  and Section 10.03,  as
applicable.
(d) Notwithstanding anything to the contrary contained in this Agreement, (A)
on  any  date  on  which  any  Class  of  Existing  Commitments  is  converted  to  extend  the  related
scheduled maturity date(s) in accordance with paragraph (a) above (an “Extension Date”), in the
case  of  the  Existing  Commitments  of  each  Extending  Lender under  any  Specified  Existing
Commitment  Class,  the  aggregate  principal  amount  of  such  Existing  Commitments  shall  be
deemed reduced by an amount equal to the aggregate principal amount of Extended Commitments
so converted by such Lender on such date, and such Extended Commitments shall be established
as a separate Class of revolving credit commitments from the Specified Existing Commitment
Class and from any other Existing Commitments (together with any other Extended Commitments
so  established  on  such  date)  and  (B)  if,  on  any  Extension  Date,  any  Existing  Loans  of  any
Extending Lender are outstanding under the Specified Existing Commitment Class, such Existing
Loans (and any related participations) shall be deemed to be allocated as Extended Loans (and
related  participations)  in  the  same  proportion  as  such  Extending  Lender’s  Specified  Existing
Commitments  to  Extended  Commitments.    Promptly  following  each  Extension  Date,  the
Borrowers,  at  the  request  of  any  Extending  Lender,  will  deliver  to  such  Lender  a  new  or 

	
	
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replacement Note or Notes, conforming to the requirements of Section 2.08(a) but modified to
reflect  the  changes  to  such  Lender’s  Existing  Commitment  or  Extended  Commitment,  as
applicable. Upon receipt of any replacement Note or Notes hereunder the relevant Lender shall
cancel and return to the Borrowers each replaced Note held by such Lender.
(e) No  exchange  of  Loans  or  Commitments  pursuant  to  any  Extension
Amendment  in  accordance  with  this Section 2.20  shall  constitute  a  voluntary  or  mandatory
payment or prepayment for purposes of this Agreement.
(f) Notwithstanding anything to the contrary contained in this Agreement, (i)
with  respect  to  any  Non-Extending  Lender,  the  Maturity  Date  for  such  Lender  shall  remain
unchanged (and the Commitment of such Lender shall terminate, the Loans made by such Lender
to the Borrowers hereunder shall mature and be payable by the Borrowers, and all other amounts
owing to such Non-Extending Lender hereunder shall be payable, on such date), and on such date
the Borrowers shall also make such other prepayments of Loans as shall be required in order that,
after  giving  effect  to  the  termination  of  the  Commitments  of,  and  all  payments  to,  the  Non-
Extending  Lenders  pursuant  to  this  sentence,  the  Credit  Extensions  will  not  exceed  the
Commitments  and  (ii)  the  “Maturity  Date”  (without  taking  into  consideration  any  extension
pursuant to this Section 2.20), as such terms are used in reference to any Issuing Lender or any
Letters of Credit issued by such Issuing Lender or any Swingline Lender or any Swingline Loan
made by such Swingline Lender, may not be extended without the prior written consent of such
Issuing Lender and such Swingline Lender, as applicable (it being understood and agreed that, in
the event any Issuing Lender or Swingline Lender shall not have consented to any such extension,
(i) such Issuing Lender or Swingline Lender, as applicable, shall continue to have all the rights
and obligations of an Issuing Lender or a Swingline Lender, as applicable, hereunder through the
Maturity Date for such Issuing Lender or Swingline Lender, and thereafter shall have no obligation
to make any Swingline Loans or to issue, amend, extend or renew any Letter of Credit (but shall,
in each case, continue to be entitled to the benefits of Sections 2.05, 2.06, 2.13, 2.26, 2.28, 10.04
and 10.11, as applicable as to Letters of Credit or Swingline Loans issued or made prior to such
time), and (ii) the Borrowers shall cause the Letter of Credit Outstandings attributable to Letters
of Credit issued by such Issuing Lender and the Swingline Exposure attributable to Swingline
Loans made by such Swingline Lender to be zero no later than the day on which such Letter of
Credit Outstandings or Swingline Exposure, as applicable, would have been required to have been
reduced to zero in accordance with the terms hereof without giving effect to any effectiveness of
the extension of the applicable Maturity Date pursuant to this Section).
Section 2.21 Mandatory Prepayment; Cash Collateral.
The outstanding Obligations shall be subject to mandatory prepayment as follows:
(a) If at any time the amount of the Credit Extensions exceeds the lower of (i)
the then amount of the Total Commitment, and (ii) the then amount of the Borrowing Base, the
Borrowers  will  immediately upon  notice  from  the  Agent  (A)  prepay  the  Loans  in  an  amount
necessary to eliminate such excess, and (B) if, after giving effect to the prepayment in full of all
outstanding  Loans  such  excess  has  not  been  eliminated,  deposit cash  into  the  Cash  Collateral
Account  in  an  amount  equal  to  the  difference  between  (1)  103%  of  the  Letters  of  Credit 

	
	
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Outstanding, and (2) the lower of (x) the amount of the then Total Commitment, and (y) the then
amount of the Borrowing Base.
(b) To the extent required pursuant to Section 2.24(c)(ii), the Revolving Loans
shall be repaid daily in accordance with the provisions of said Section 2.24(c)(ii).
(c)  If, as of the close of business on any day on which (i) the Parent Borrower
delivers a Borrowing Base Certificate to the Agent pursuant to Section 6.01(e) or (ii) a Revolving
Loan is made or a Letter of Credit is issued, amended, renewed or extended, the Consolidated Cash
Balance after giving pro forma effect to (x) the Borrowing Base calculated by such Borrowing
Base Certificate but prior to giving effect to any payment required to be made by the Borrowers
pursuant to Section 2.21(a) above and (y) such Credit Extension after giving effect to the use of
proceeds  thereof,  in  each  case,  as  applicable,  would  exceed  the  Consolidated  Cash  Balance
Threshold,  then  the  Borrowers  shall  within  five  (5)  Business  Days  after  such  date  prepay  the
Revolving Loans in an amount equal to the amount of Excess Cash as of such date of payment
after  giving  effect  to  any  payment  required  to  be  made  by  the  Borrowers  pursuant  to
Section 2.21(a) above, if any, and any use of proceeds from such Credit Extension to be made
contemporaneously therewith.
(c) [Reserved].
(d) Subject  to  the  foregoing,  outstanding  Base  Rate  Loans  shall  be prepaid
before outstanding Eurocurrency Loans are prepaid.  Each partial prepayment of Eurocurrency
Loans shall be in an integral multiple of $1,000,000.  If any prepayment of Eurocurrency Loans is
made  other  than  on  the  last  day  of  an  Interest  Period  applicable  thereto,  the  Borrowers  shall
reimburse the Lenders for all “Breakage Costs” (as defined in Section 2.22  below)  associated
therewith.  In order to avoid such Breakage Costs, as long as no Event of Default has occurred and
is continuing, at the request of the Parent Borrower, the Agent shall hold all amounts required to
be applied to Eurocurrency Loans in the Cash Collateral Account and will apply such funds to the
applicable Eurocurrency Loans at the end of the then pending Interest Period therefor (provided
that  the  foregoing  shall  in  no  way  limit  or  restrict  the  Agent’s  rights  upon  the  subsequent
occurrence of an Event of Default).  No partial prepayment of a Borrowing of Eurocurrency Loans
pursuant to this Section 2.21 shall result in the aggregate principal amount of the Eurocurrency
Loans remaining outstanding pursuant to such Borrowing being less than $10,000,000 (unless all
such outstanding Eurocurrency Loans are being prepaid in full).  Any prepayment of the Revolving
Loans shall not permanently reduce the Commitments.
(e) All  amounts  required  to  be  applied  to  all  Loans  hereunder  (other  than
Swingline  Loans)  shall  be  applied  ratably  in  accordance  with  each  Lender’s  Commitment
Percentage.
(f) Upon  the  Termination  Date  applicable  to  a  Class  of  Commitments, the
Commitments of such Class shall be terminated in full and the Borrowers shall pay, in full and in
cash, all outstanding Loans of such Class.
Section 2.22 Optional Prepayment of Loans; Reimbursement of Lenders.  

	
	
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(a) The Borrowers shall have the right at any time and from time to time to
prepay outstanding Loans in whole or in part, (x) with respect to Eurocurrency Loans, upon at least
two (2) Business Days’ prior written, telex or facsimile (or other electronic transmission) notice to
the Agent prior to 11:00 a.m., New York City time, and (y) with respect to Base Rate Loans, on
the same Business Day if written, telex or facsimile (or other electronic transmission) notice is
received by the Agent prior to 1:00 p.m., New York City time, subject to the following limitations:
(i) Subject to Section 2.18, all prepayments shall be paid to the Agent
for application, first, to the prepayment of outstanding Swingline Loans, and second, to the
prepayment  of  other  outstanding  Loans  ratably  in  accordance  with  each  Lender’s
Commitment Percentage.
(ii) Subject  to  the  foregoing,  outstanding  Base  Rate  Loans  shall  be
prepaid before outstanding Eurocurrency Loans are prepaid.  Each partial prepayment of
Eurocurrency Loans shall be in an integral multiple of $1,000,000.  If any prepayment of
Eurocurrency Loans is made other than on the last day of an Interest Period applicable
thereto, the Borrowers shall reimburse the Lenders for all “Breakage Costs” (as defined
below) associated therewith.  No partial prepayment of a Borrowing of Eurocurrency Loans
pursuant  to  this Section 2.22  shall  result  in  the  aggregate  principal  amount  of  the
Eurocurrency Loans remaining outstanding pursuant to such Borrowing being less than
$10,000,000 (unless all such outstanding Eurocurrency Loans are being prepaid in full).
(iii) Each notice of prepayment shall specify the prepayment date, the
principal amount and Type of the Loans to be prepaid and, in the case of Eurocurrency
Loans, the Borrowing or Borrowings pursuant to which such Loans were made.  Each
notice of prepayment shall be irrevocable and shall commit the Borrowers to prepay such
Loan  by  the  amount  and  on  the  date  stated  therein.    The  Agent  shall,  promptly  after
receiving notice from the Borrowers hereunder, notify each Lender of the principal amount
and Type of the Loans held by such Lender which are to be prepaid, the prepayment date
and the manner of application of the prepayment.
(b) The  Borrowers  shall  reimburse  each  Lender  on  demand  for  any  loss
incurred or to be incurred by it in the reemployment of the funds released (i) resulting from any
prepayment (for any reason whatsoever, including, without limitation, conversion to Base Rate
Loans  or  acceleration  by  virtue  of,  and  after,  the  occurrence  of an Event of Default) of any
Eurocurrency Loan required or permitted under this Agreement, if such Loan is prepaid other than
on the last day of the Interest Period for such Loan or (ii) in the event that after the Parent Borrower
delivers a notice of borrowing under Section 2.03 in respect of Eurocurrency Loans, such Loans
are not borrowed on the first day of the Interest Period specified in such notice of borrowing for
any reason.  Such loss shall be the amount as reasonably determined by such Lender as the excess,
if any, of (A) the amount of interest which would have accrued to such Lender on the amount so
paid or not borrowed at a rate of interest equal to the Adjusted LIBO Rate for such Loan, for the
period from the date of such payment or failure to borrow to the last day (x) in the case of a
payment or refinancing of a Eurocurrency Loan other than on the last day of the Interest Period
for such Loan, of the then current Interest Period for such Loan or (y) in the case of such failure to
borrow, of the Interest Period for such Eurocurrency Loan which would have commenced on the
date of such failure to borrow, over (B) the amount of interest which would have accrued to such 

	
	
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Lender on such amount by placing such amount on deposit for a comparable period with leading
banks in the London interbank market (collectively, “Breakage Costs”).  Any Lender demanding
reimbursement  for  such  loss  shall  deliver  to  the  Borrowers  from  time  to  time  one  or  more
certificates setting forth the amount of such loss as determined by such Lender and setting forth in
reasonable  detail  the  manner  in  which  such  amount  was  determined,  such  certificates  to  be
substantially in the form of Exhibit E hereto.
(c) In the event the Borrowers fail to prepay any Loan on the date specified in
any prepayment notice delivered pursuant to Section 2.22(a), the Borrowers on demand by any
Lender shall pay to the Agent for the account of such Lender any amounts required to compensate
such Lender for any actual loss incurred by such Lender as a result of such failure to prepay,
including, without limitation, any loss, cost or expenses incurred by reason of the acquisition of
deposits or other funds by such Lender to fulfill deposit obligations incurred in anticipation of such
prepayment.  Any Lender demanding such payment shall deliver to the Borrowers from time to
time one or more certificates setting forth the amount of such loss as determined by such Lender
and setting forth in reasonable detail the manner in which such amount was determined, such
certificates to be substantially in the form of Exhibit E hereto.
(d) Whenever any partial prepayment of Loans of a particular Class are to be
applied to Eurocurrency Loans of such Class, such Eurocurrency Loans shall be prepaid in the
chronological order of their Interest Payment Dates.
Notwithstanding the foregoing (and as provided in clause (1) of the proviso to Section 2.20(a)),
the Borrowers may not optionally prepay Extended Loans of any Extension Series unless such
prepayment is accompanied by a pro rata repayment of Existing Loans of the Specified Existing
Commitment  Class  of  the  Existing  Class  from  which  such  Extended  Loans  and  Extended
Commitments  were  converted  (or  such  Loans  and  Commitments  of  the  Existing  Class  have
otherwise been repaid and terminated in full).
Section 2.23 Maintenance of Loan Account; Statements of Account.
(a) The  Agent  shall  maintain  an  account  on  its  books  in  the  name  of the
Borrowers  (the  “Loan Account”) which  will reflect (i)  all Loans made by the Lenders to the
Borrowers or for the Borrowers’ account, (ii) all LC Disbursements, fees and interest that have
become payable as set forth herein, and (iii) any and all other monetary Obligations that have
become payable.
(b) The Loan Account will be credited with all amounts received by the Agent
from the Borrowers, including all amounts received in the JPMorgan Concentration Account from
the  Blocked  Account  Banks,  and  the  amounts  so  credited  shall  be  applied  as  set  forth  in
Section 2.18(b).  After the end of each month, the Agent shall send to the Borrowers a statement
accounting for the charges, loans, advances and other transactions occurring among and between
the Agent, the Lenders and the Borrowers during that month.  The monthly statements shall, absent
manifest error, be an account stated, which is final, conclusive and binding on the Borrowers.
Section 2.24 Cash Receipts.  

	
	
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(a) Annexed hereto as Schedule 2.24(a) is a list of all DDAs as of the Second
Amendment Effective Date, which Schedule includes, with respect to each Depository and DDA,
as applicable, (i) the name and address of that Depository; (ii) the account number(s) maintained
with  such  Depository;  (iii)  to  the  extent  known,  a  contact  person  at  such  Depository  and  (iv)
indicating whether both a duly completed and executed DDA Notification and a Blocked Account
Agreement satisfying the requirements of Section 2.24(c) have been delivered to the Agent prior
to  the  Second  Amendment  Effective  Date  for  such DDA,  and  if  so  completed  and  delivered,
identifying such DDA Notification and such Blocked Account Agreement for such DDA (each
such DDA, an “Existing Blocked Account”).
(b) Annexed hereto as Schedule 2.24(b) is a list (i) describing all arrangements
to which any Borrower is a party as of the Second Amendment Effective Date with respect to the
payment to any Borrower of the proceeds of all credit card charges for sales by any Borrower and
(ii)  indicating  whether  a  duly  completed  and  executed  Credit  Card  Notification  satisfying  the
requirements of Section 2.24(c) has been delivered to the Agent prior to the Second Amendment
Effective Date for such arrangement, and if so completed and delivered, identifying such Credit
Card Notification (each such Credit Card Notification, an “Existing Credit Card Notification”).
(c) (i) (x) Within ninety (90) days (as such date may be extended by the Agent
in its sole discretion) after the Second Amendment Effective Date, (A) the Borrowers shall deliver
to the Agent notifications executed on behalf of the Borrowers to each Depository with which any
DDA  is  maintained  by  the  Borrowers  (other  than  an  Existing  Blocked  Account)  in  form
satisfactory to the Agent, of the Agent’s interest in such DDA (each, a “DDA Notification”), and
(B) the Borrowers shall either (1) enter into agency agreements with the Depositories maintaining
the deposit accounts or other accounts identified on Schedule 2.24(a) that maintain a DDA (other
than an Existing Blocked Account) (collectively, the “New Blocked Accounts”, and collectively
with the Existing Blocked Accounts, the “Blocked Accounts”), which agreements (the “Blocked
Account Agreements”) shall be in form and substance reasonably satisfactory to the Agent, or (2)
if  the  Borrowers  are  unable  to  enter  into  Blocked  Account  Agreements  in  form  reasonably
satisfactory  to  the  Agent  with  any  of  the  Depositories  identified  on  Schedule  2.24(a),  the
Borrowers shall (I) provide the Agent with evidence, reasonably satisfactory to the Agent, that the
Borrowers have closed the deposit accounts maintained with such banks, (II) establish new deposit
accounts or other accounts (the “Replacement Deposit Accounts”) with a different Depository
(the  “Replacement  Institution”),  (III)  enter  into  a  Blocked  Account  Agreement  in  form  and
substance reasonably satisfactory to the Agent with each Replacement Institution and the Agent
with respect to the Replacement Deposit Accounts, and (IV) in connection with the foregoing,
provide the Agent with an amended Schedule 2.24(a) reflecting the removal of the closed deposit
accounts and the addition of the Replacement Deposit Accounts, and (y) within ninety (90) days
(as such date may be extended by the Agent in its sole discretion) after the Second Amendment
Effective  Date,  the  Borrowers  shall  deliver  to  the  Agent  notifications  (the  “Credit  Card
Notifications”) executed on behalf of the Subsidiary Borrowers to each of their major credit card
processors that has not delivered an Existing Credit Card Notification instructing such credit card
processors to remit proceeds of all credit card charges to a Blocked Account with JPMorgan that
is reasonably acceptable to the Parent Borrower and the Agent (the “Parent Borrower Blocked
Account”), which Parent Borrower Blocked Account is subject to the Parent Borrower Blocked
Account Agreement. 

	
	
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(ii) The  DDA  Notifications  shall  require,  after  the  occurrence  and
during the continuance of an a Specified Event of Default or Cash Control Event, the sweep on
each Business Day of all available cash receipts and other proceeds from the sale of Inventory,
including, without limitation, the proceeds of all credit card charges (all such cash receipts and
proceeds, “Cash Receipts”), to a concentration account maintained by the Agent at JPMorgan and
designated  by  the  Agent  for  such  purpose  (the  “JPMorgan  Concentration  Account”).    The
Blocked  Account  Agreements  (including,  without  limitation, the Blocked  Account  Agreement
with  respect  to  the  Parent  Borrower  Blocked  Account)  shall  require,  after  the  occurrence  and
during the continuance of an a Specified Event of Default or Cash Control Event, the sweep on
each Business Day of all cash and other amounts, including, without limitation, all Cash Receipts,
held in such Blocked Account to the JPMorgan Concentration Account.
(d) The  Borrowers  shall  cause  all  Cash  Receipts  from  the  sale  of  each
Subsidiary Borrower’s  Inventory to be directly deposited into a Blocked Account subject to a
Blocked Account Agreement.
(e) The Borrowers may close DDAs or Blocked Accounts and/or open new
DDAs or Blocked Accounts, subject to the execution and delivery to the Agent of appropriate
DDA  Notifications  or  Blocked  Account  Agreements  consistent  with  the  provisions  of  this
Section 2.24 and Section 6.13(d).  Within thirty (30) days (or such longer period as the Agent may
reasonably agree) of any Borrower entering into any agreement with credit card processors, such
Borrower must execute and deliver a Credit Card Notification to the Agent.
(f) The JPMorgan Concentration Account is, and shall remain, under the sole
dominion  and  control  of  the  Agent.    Each  Borrower  acknowledges and  agrees  that  (i)  such
Borrower has no right of withdrawal from the JPMorgan Concentration Account, (ii) the funds on
deposit in the JPMorgan Concentration Account shall continue to be collateral security for all of
the Obligations and (iii) the funds on deposit in the JPMorgan Concentration Account shall be
applied as provided in Section 2.18(b).
(g) So long as (i) no Specified Event of Default has occurred and is continuing,
and (ii) no Cash Control Event has occurred and is continuing, the Borrowers may direct, and shall
have sole control over, the manner of disposition of its funds in the DDA Accounts and Blocked
Accounts.  After the occurrence and during the continuation of an a Specified Event of Default or
Cash Control Event, the Borrowers shall cause the ACH or wire transfer to a Blocked Account or
to the JPMorgan Concentration Account, no less frequently than daily (and whether or not there is
then an outstanding balance in the Loan Account, unless the Commitments have been terminated
hereunder and the Obligations have been Paid in Full) of the then contents of each DDA, each such
transfer  to  be  net  of  any  minimum  balance,  not  to  exceed  $10,000,  as  may  be  required  to  be
maintained in the subject DDA by the bank at which such DDA is maintained, and, in connection
with each such transfer, the Borrowers shall also provide the Agent with an accounting of the
contents  of  each DDA  which  shall  identify,  to the  satisfaction  of  the  Agent,  the  Other  Store
Proceeds.  Upon the receipt of (x) the contents of each such DDA, and (y) such accounting, the
Agent agrees to promptly remit to the Borrowers the Other Store Proceeds received by the Agent
for such day. 

	
	
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Further,  whether  or  not  any  Obligations  are  then  outstanding,  after  the  occurrence  and
during the continuation of an a Specified Event of Default or Cash Control Event, the Borrowers
shall cause the ACH or wire transfer to the JPMorgan Concentration Account, no less frequently
than  daily,  of  the  then  entire  ledger  balance  of  each  Blocked  Account  (including,  without
limitation, the Parent Borrower Blocked Account), net of such minimum balance, not to exceed
$10,000, as may be required to be maintained in the subject Blocked Account by the bank at which
such Blocked Account is maintained.  In addition to the foregoing, unless and until the Borrowers
have established procedures with their credit card processors to deposit the Non-Borrower Credit
Card  Proceeds  to  an  account,  other  than  the  Parent  Borrower  Blocked  Account,  which  is  not
subject to the Lien of the Agent, the Borrowers shall, in connection with the transfer of the ledger
balance of the Parent Borrower Blocked Account, net of the permitted balance, provide the Agent
with an accounting of the contents of the Parent Borrower Blocked Account, which shall identify,
to the satisfaction of the Agent, the Non-Borrower Credit Card Proceeds.  Upon the receipt of (x)
the contents of the Parent Borrower Blocked Account, and (y) such accounting, the Agent agrees
to promptly remit to the Borrowers the Non-Borrower Credit Card Proceeds received by the Agent
for such day.
In the event that, notwithstanding the provisions of this Section 2.24, after the occurrence
of an a Specified Event of Default or Cash Control Event, the Borrowers receive or otherwise have
dominion and control of any such proceeds or collections, such proceeds and collections shall be
held  in  trust  by  the  Borrowers  for  the  Agent  and  shall  not  be  commingled  with  any  of  the
Borrowers’ other funds or deposited in any account of any Borrower other than as instructed by
the Agent.
Effective upon notice to the Parent Borrower from the Agent, after the occurrence and
during the continuation of a Cash Control Event or an a Specified Event of Default (including,
without  limitation,  the  failure  of  the  Borrowers  to  comply  with  the  provisions  of  this
Section 2.24(g)) (which notice may be given by telephone if promptly confirmed in writing), (i)
the  Agent  may,  at  any  time  thereafter,  deliver  the  DDA  Notifications  and  the  Credit  Card
Notifications to the addressees thereof, and (ii) the DDA Accounts, Blocked Accounts and the
JPMorgan Concentration Account will, without any further action on the part of any Borrower or
the Agent convert into a closed  account under the exclusive dominion and control of the Agent in
which funds are held subject to the rights of the Agent hereunder.  In such event, all amounts in
the JPMorgan Concentration Account (other than Non-Borrower Credit Card Proceeds and Other
Store Proceeds) from time to time may be applied to the Obligations in such order and manner as
provided in Section 2.18(b) hereof.
Section 2.25 [Reserved].
Section 2.26 Increased Costs.
(a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit or
similar  requirement  (including  any  compulsory  loan  requirement or  insurance  charge)
against assets of, deposits with or for the account of, or credit extended by, any Lender or 

	
	
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any holding company of any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or any Issuing Lender; or
(ii) subject  any  Recipient  to  any  Taxes  (other  than  (A)  Indemnified
Taxes, (B) Other Taxes and (C) Excluded Taxes) of any kind whatsoever with respect to
its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits,
reserves, other liabilities or capital attributable thereto; or
(iii) impose  on  any  Lender  or  any  Issuing  Lender  or  the  London
interbank market any other condition, cost or expense affecting this Agreement or Loans
made by such Lender or any Letter of Credit or participation therein;
and the result of any of the foregoing shall be to increase the cost to such Lender or such other
Recipient  of  making,  continuing,  converting  or  maintaining  any Loan  (or  of  maintaining  its
obligation to make any such Loan) or to increase the cost to such Lender, an Issuing Lender or
such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce
the amount of any sum received or receivable by such Lender, such Issuing Lender or such other
Recipient hereunder (whether of principal, interest or otherwise) other than Taxes which shall be
governed by Section 2.28 hereof, then the Borrowers will pay to such Lender, such Issuing Lender
or such other Recipient, as the case may be, such additional amount or amounts as will compensate
such Lender, such Issuing Lender or such other Recipient, as the case may be, for such additional
costs incurred or reduction suffered.
(b) If any Lender or any Issuing Lender determines that any Change in Law
regarding capital or liquidity requirements has or would have the effect of reducing the rate of
return on such Lender’s or such Issuing Lender’s capital or on the capital of such Lender’s or such
Issuing Lender’s holding company, if any, as a consequence of this Agreement, the Commitments
of, or the Loans made by, or participations in Letters of Credit or Swingline Loans held by, such
Lender, or the Letters of Credit issued by such Issuing Lender, to a level below that which such
Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or such Issuing
Lender’s policies and the policies of such Lender’s or such Issuing Lender’s holding company
with respect to capital adequacy and liquidity), then from time to time the Borrowers will pay to
such Lender or such Issuing Lender, as the case may be, such additional amount or amounts as
will compensate such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s
holding company for any such reduction suffered.
(c) A certificate of a Lender or an Issuing Lender setting forth the amount or
amounts necessary to compensate such Lender or such Issuing Lender or its holding company, as
the case may be, as specified in paragraph (a) or (b) of this Section and setting forth in reasonable
detail the manner in which such amount or amounts were determined shall be delivered to the
Parent Borrower and shall be conclusive absent manifest error.  The Borrowers shall pay such
Lender or such Issuing Lender, as the case may be, the amount shown as due on any such certificate
within ten (10) days after receipt thereof.
(d) Failure or delay on the part of any Lender or the Issuing Lender to demand
compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing 

	
	
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Lender’s right to demand such compensation; provided that the Borrowers shall not be required to
compensate a Lender or the Issuing Lender pursuant to this Section for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender or the Issuing Lender,
as the case may be, notifies the Parent Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or the Issuing Lender’s intention to claim compensation
therefor;  provided  further  that,  if  the  Change  in  Law  giving  rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be extended to include
the period of retroactive effect thereof.
Section 2.27 Change in Legality.
(a) Notwithstanding  anything  to  the  contrary  contained  elsewhere  in this
Agreement, if (x) any Change in Law shall make it unlawful for a Lender or its applicable lending
office to make or maintain a Eurocurrency Loan or to give effect to its obligations as contemplated
hereby with respect to a Eurocurrency Loan or (y) at any time any Lender determines that the
making or continuance of any of its Eurocurrency Loans has become impracticable as a result of
a  contingency  occurring  after  the Second Third Amendment  Effective  Date  which  adversely
affects  the  London  interbank  market  or  the  position  of  such  Lender  in  the  London  interbank
market,  then,  by  written  notice  to  the  Parent  Borrower,  such  Lender may (i) declare that
Eurocurrency Loans will not thereafter be made by such Lender hereunder, whereupon any request
by the Borrowers for a Eurocurrency Borrowing shall, as to such Lender only, be deemed a request
for a Base Rate Loan unless such declaration shall be subsequently withdrawn; and (ii) require that
all outstanding Eurocurrency Loans made by it be converted to Base Rate Loans, in which event
all  such  Eurocurrency  Loans  shall  be  automatically  converted  to  Base  Rate  Loans  as  of  the
effective date of such notice as provided in paragraph (b) below.  In the event any Lender shall
exercise its rights under clause (i) or (ii) of this paragraph (a), all payments and prepayments of
principal which would otherwise have been applied to repay the Eurocurrency Loans that would
have been made by such Lender or the converted Eurocurrency Loans of such Lender shall instead
be applied to repay the Base Rate Loans made by such Lender in lieu of, or resulting from the
conversion of, such Eurocurrency Loans.
(b) For purposes of this Section 2.27, a notice to the Borrowers by any Lender
pursuant to paragraph (a) above shall be effective, if lawful, and if any Eurocurrency Loans shall
then be outstanding, on the last day of the then-current Interest Period; and otherwise such notice
shall be effective on the date of receipt by the Borrowers.
Section 2.28 Withholding of Taxes; Gross-Up.
(a) Payments Free of Taxes.  Any and all payments by or on account of any
obligation  of  any  Borrower  under  any  Loan  Document  shall  be  made  without  deduction  or
withholding  for  any  Taxes,  except  as  required  by  applicable  law.    If  any  applicable  law  (as
determined in the good faith discretion of an applicable withholding agent) requires the deduction
or withholding of any Tax from any such payment by a withholding agent, then the applicable
withholding agent shall be entitled to make such deduction or withholding and shall timely pay
the full amount deducted or withheld to the relevant Governmental Authority in accordance with
applicable law and, if such Tax is an Indemnified Tax, then the sum payable by any Borrower shall
be increased as necessary so that after such deduction or withholding has been made (including 

	
	
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such deductions and withholdings applicable to additional sums payable under this Section 2.28)
the applicable Recipient receives an amount equal to the sum it would have received had no such
deduction or withholding been made.
(b) Payment of Other Taxes by the Borrowers.  The Borrowers shall timely pay
to the relevant Governmental Authority in accordance with applicable law, or at the option of the
Agent timely reimburse it for, Other Taxes.
(c) Evidence of Payment.  As soon as practicable after any payment of Taxes
by any Borrower to a Governmental Authority pursuant to this Section 2.28, such Borrower shall
deliver to the Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Agent.
(d) Indemnification  by  the  Borrowers.    The  Borrowers  shall  jointly and
severally indemnify each Recipient, within ten (10) days after demand therefor, for the full amount
of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to
amounts payable under this Section) payable or paid by such Recipient or required to be withheld
or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or
with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment
or liability delivered to any Borrower by a Lender (with a copy to the Agent), or by the Agent on
its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.
(e) Indemnification by the Lenders.  Each Lender shall severally indemnify the
Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to
such Lender (but only to the extent that any Borrower has not already indemnified the Agent for
such Indemnified Taxes and without limiting the obligation of the Borrowers to do so), (ii) any
Taxes  attributable  to  such  Lender’s  failure  to  comply  with  the provisions  of Section 10.06(e)
relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to
such Lender, in each case, that are payable or paid by the Agent in connection with any Loan
Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not
such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.
A certificate as to the amount of such payment or liability delivered to any Lender by the Agent
shall be conclusive absent manifest error.  Each Lender hereby authorizes the Agent to setoff and
apply  any  and  all  amounts  at  any  time  owing  to  such  Lender  under  any  Loan  Document  or
otherwise payable by the Agent to such Lender from any other source against any amount due to
the Agent under this paragraph (e).
(f) Status of Lenders.
(i) Any Lender that is entitled to an exemption from or reduction of
withholding Tax with respect to payments made under any Loan Document shall deliver
to the Parent Borrower and the Agent, at the time or times reasonably requested by the
Parent  Borrower  or  the  Agent,  such  properly  completed  and  executed  documentation
reasonably requested by the Parent Borrower or the Agent as will permit such payments to
be made without withholding or at a reduced rate of withholding.  In addition, any Lender, 

	
	
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if  reasonably  requested  by  the  Parent  Borrower  or  the  Agent,  shall  deliver  such  other
documentation  prescribed  by  applicable  law  or  reasonably  requested  by  the  Parent
Borrower or the Agent as will enable the Borrowers or the Agent to determine whether or
not such Lender is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the completion,
execution and submission of such documentation (other than such documentation set forth
in Section 2.28(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s
reasonable judgment such completion, execution or submission would subject such Lender
to any material unreimbursed cost or expense or would materially prejudice the legal or
commercial position of such Lender.
(ii) Without limiting the generality of the foregoing, in the event that
any Borrower is a U.S. Person,
(A) any Lender that is a U.S. Person shall deliver to the Parent
Borrower and the Agent on or prior to the date on which such Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the reasonable
request of the Parent Borrower or the Agent), an executed copy of IRS Form W-9
certifying that such Lender is exempt from U.S. federal backup withholding tax;
(B) any Foreign Lender shall, to the extent it is legally entitled
to do so, deliver to the Parent Borrower and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the reasonable request of the Parent Borrower or the Agent), whichever of the
following is applicable:
(1) in the case of a Foreign Lender claiming the benefits
of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Loan Document, an executed copy of IRS
Form  W-8BEN  or  IRS  Form  W-8BEN-E,  as  applicable,  establishing  an
exemption from, or reduction of, U.S. federal withholding Tax pursuant to
the “interest” article of  such tax treaty and (y) with respect to any other
applicable payments under any Loan Document, IRS Form W-8BEN or IRS
Form  W-8BEN-E,  as  applicable,  establishing  an  exemption  from,  or
reduction  of,  U.S.  Federal  withholding  Tax  pursuant  to  the  “business
profits” or “other income” article of such tax treaty;
(2) in the case of a Foreign Lender claiming that its
extension  of  credit  will  generate  U.S.  effectively  connected  income,  an
executed copy of IRS Form W-8ECI;
(3) in the case of a Foreign Lender claiming the benefits
of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate substantially in the form of Exhibit F-1 to the effect that such
Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A)
of the Code, a “10 percent shareholder” of a Borrower within the meaning 

	
	
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of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation”
described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance
Certificate”) and (y) an executed copy of IRS Form W-8BEN or IRS Form
W-8BEN-E, as applicable; or
(4) to the extent a Foreign Lender is not the beneficial
owner, an executed copy of IRS Form W-8IMY, accompanied by IRS Form
W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a
U.S. Tax Compliance Certificate substantially in the form of Exhibit F-2
or Exhibit F-3, IRS Form W-9, and/or other certification documents from
each beneficial owner, as applicable; provided that if the Foreign Lender is
a partnership and one or more direct or indirect partners of such Foreign
Lender are claiming the portfolio interest exemption, such Foreign Lender
may provide a U.S. Tax Compliance Certificate substantially in the form of
Exhibit F-4 on behalf of each such direct and indirect partner;
(C) any Foreign Lender shall, to the extent it is legally entitled
to do so, deliver to the Parent Borrower and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the reasonable request of the Parent Borrower or the Agent), executed copies
of any other form prescribed by applicable law as a basis for claiming exemption
from or a reduction in U.S. federal withholding Tax, duly completed, together with
such  supplementary  documentation  as  may  be  prescribed  by  applicable  law  to
permit  the  Borrowers  or  the  Agent  to  determine  the  withholding or  deduction
required to be made; and
(D) if a payment made to a Lender under any Loan Document
would  be  subject  to  U.S.  Federal  withholding  Tax  imposed  by  FATCA  if  such
Lender  were  to  fail  to  comply  with  the  applicable  reporting  requirements  of
FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as
applicable), such Lender shall deliver to the Parent Borrower and the Agent at the
time or times prescribed by law and at such time or times reasonably requested by
the Parent Borrower or the Agent such documentation prescribed by applicable law
(including  as  prescribed  by  Section  1471(b)(3)(C)(i)  of  the  Code)  and  such
additional  documentation  reasonably  requested  by  the  Parent  Borrower  or  the
Agent as may be necessary for the Borrowers and the Agent to comply with their
obligations under FATCA and to determine that such Lender has complied with
such Lender’s obligations under FATCA or to determine the amount to deduct and
withhold from such payment.  Solely for purposes of this clause (D), “FATCA”
shall include any amendments made to FATCA after the date of this Agreement.
Each  Lender  agrees  that  if  any  form  or  certification  it  previously  delivered  expires  or
becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly
notify the Parent Borrower and the Agent in writing of its legal inability to do so. 

	
	
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(g) Treatment of Certain Refunds.  If any party determines, in its sole discretion
exercised  in  good  faith,  that  it  has  received  a  refund  of  any  Taxes  as  to  which  it  has  been
indemnified pursuant to this Section (including by the payment of additional amounts pursuant to
this Section), it shall pay to the indemnifying party an amount equal to such refund (but only to
the extent of indemnity payments made under this Section with respect to the Taxes giving rise to
such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and
without interest (other than any interest paid by the relevant Governmental Authority with respect
to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay
to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) in the event that such
indemnified  party  is  required  to  repay  such  refund  to  such  Governmental  Authority.
Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified
party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the
payment of which would place the indemnified party in a less favorable net after-Tax position than
the indemnified party would have been in if the Tax subject to indemnification and giving rise to
such  refund  had  not  been  deducted,  withheld  or  otherwise  imposed  and  the  indemnification
payments  or  additional  amounts  giving  rise  to  such  refund  had  never been paid.  This
paragraph (g) shall not be construed to require any indemnified party to make available its Tax
returns  (or  any  other  information  relating  to  its  Taxes  that  it  deems  confidential)  to  the
indemnifying party or any other Person.
(h) Survival.    Each  party’s  obligations  under  this  Section  shall  survive  the
resignation or replacement of the Agent or any assignment of rights by, or the replacement of, a
Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all
obligations under any Loan Document (including the Payment in Full of the Obligations).
(i) Defined  Terms.    For  purposes  of  this Section 2.28,  the  term  “Lender”
includes any Issuing Lender and the term “applicable law” includes FATCA.
Section 2.29 [Reserved].
Section 2.30 Mitigation Obligations; Replacement of Lenders.
(a) Designation  of  a  Direct  Lending  Office.    If  any  Lender  requests
compensation under Section 2.26, or requires the Borrowers to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.28,
then such Lender shall use reasonable efforts to designate a different lending office for funding or
booking  its  Loans  hereunder  or  to  assign  and  delegate  its  rights  and  obligations  hereunder  to
another of its offices, branches or Affiliates, if, in the judgment of such Lender, such designation
or  assignment  and  delegation  (i)  would  eliminate  or  reduce  amounts  payable  pursuant  to
Section 2.26 or Section 2.28, as the case may be, in the future and (ii) would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender.  The Borrowers hereby agree to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment and delegation; provided, however,
that  the  Borrowers  shall  not  be  liable  for  such  costs  and  expenses  of  a  Lender  requesting
compensation if (i) such Lender becomes a party to this Agreement on a date after the Second 

	
	
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Third Amendment Effective Date and (ii) the relevant Change in Law occurs on a date prior to the
date such Lender becomes a party hereto.
(b) Replacement  of  Lenders.    If  any  Lender  requests  compensation  under
Section 2.26, or if the Borrowers are required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.28, or if any Lender
becomes a Defaulting Lender, or if any Lender has become a Non-Extending Lender, or if any
Lender has become a Minority Lender, then the Borrowers may, at their sole expense and effort,
upon notice to such Lender and the Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and consents required by,
Section 10.06), all of its interests, rights (other than its existing rights to payment pursuant to
Section 2.26 or Section 2.28)  and  obligations  under  this  Agreement  and  the  related  Loan
Documents to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment), provided that (i) except in the case of an assignment
to another Lender, the Borrowers shall have received the prior written consent of the Agent, the
Issuing Lenders and the Swingline Lender, which consent shall not unreasonably be withheld, (ii)
the Borrowers shall have paid to the Agent the assignment fee specified in Section 10.06, (iii) such
Lender shall have received payment of an amount equal to the outstanding principal of its Loans
and  participations  in  LC  Disbursements  and  Swingline  Loans  that  have  been  funded  by  such
Lender, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and
under the other Loan Documents (including any amounts under Section 2.22(b)) from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the
case of all other amounts), (iv) in the case of any such assignment and delegation resulting from a
claim  for  compensation  under Section 2.26  or  payments  required  to  be  made  pursuant  to
Section 2.28, such assignment and delegation will result in a reduction in such compensation or
payments thereafter, (v) in the case of any assignment and delegation resulting from any Lender
becoming a Non-Extending Lender, upon the effectiveness of such assignment and delegation,
such assignee shall be deemed to have consented to the extension of the Maturity Date requested
in the relevant Extension Request (and, if such assignment and delegation shall become effective
after the effective date of the relevant Extension Amendment, the Maturity Date with respect to
such assignee (insofar as relating to the interests, rights and obligations under this Agreement and
the related Loan Documents so assigneed and delegated) shall automatically extend to the date
specified  in  the  relevant  Extension  Request),  and  (vi)  such  assignment  does  not  conflict  with
applicable law.  A Lender shall not be required to make any such assignment and delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrowers to require such assignment and delegation cease to apply.  Each party hereto agrees that
an assignment and delegation required pursuant to this paragraph may be effected pursuant to an
Assignment and Assumption executed by the Parent Borrower, the Agent and the assignee and
that the Lender required to make such assignment and delegation need not be a party thereto.
Section 2.31 Defaulting Lenders.  Notwithstanding any provision of this Agreement to
the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply
for so long as such Lender is a Defaulting Lender.
(a) fees shall cease to accrue on the Unused Commitment of such Defaulting
Lender pursuant to Section 2.12; 

	
	
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(b) such Defaulting Lender  shall not have the right  to vote on any issue on
which voting is required (other than to the extent expressly provided in Section 10.02(b)) and the
Commitment and Credit Extensions of such Defaulting Lender shall not be included in determining
whether the Required Lenders or the Required Supermajority Lenders have taken or may take any
action hereunder;
(c) if any Swingline Exposure or Letter of Credit Outstandings exists at the
time a Lender becomes a Defaulting Lender then:
(i) all  or  any  part  of  the  Swingline  Exposure  or  Letter  of  Credit
Outstandings of such Defaulting Lender shall be reallocated among the Non-Defaulting
Lenders in accordance with their respective Commitment Percentages but only to the extent
the sum of all Non-Defaulting Lenders’ Credit Extensions plus such Defaulting Lender’s
pro  rata  share  of  the  Swingline  Exposure  and  Letters  of  Credit Outstandings  does  not
exceed the total of all Non-Defaulting Lenders’ Commitments;
(ii) if the reallocation described in clause (i) above cannot, or can only
partially, be effected, the Borrowers shall within one Business Day following notice by the
Agent (x) first, prepay such Swingline Exposure and (y) second, cash collateralize, for the
benefit  of  the  Issuing  Lenders,  the  Borrowers’  obligations  corresponding  to  such
Defaulting  Lender’s  Letter  of  Credit  Oustandings  (after  giving effect  to  any  partial
reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 2.06(m) for so long as such Letter of Credit Outstandings is outstanding;
(iii) if the Borrowers cash collateralize any portion of such Defaulting
Lender’s Letter of Credit Outstandings pursuant to clause (ii) above, the Borrowers shall
not be required to pay any fees to such Defaulting Lender pursuant to Section 2.10(a) with
respect to such Defaulting Lender’s Letter of Credit Outstandings during the period such
Defaulting Lender’s Letter of Credit Outstandings is cash collateralized;
(iv) if the Letter of Credit Outstandings of the Non-Defaulting Lenders
is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to
Section 2.12  and Section 2.10(a)  shall  be  adjusted  in  accordance  with  such  Non-
Defaulting Lenders’ Commitment Percentages; and
(v) if all or any portion of such Defaulting Lender’s Letter of Credit
Outstandings  is  neither  reallocated  nor  cash  collateralized  pursuant  to clause (i) or (ii)
above, then, without prejudice to any rights or remedies of the Issuing Lenders or any
Lender hereunder, all letter of credit fees payable under Section 2.10(a) with respect to
such Defaulting Lender’s Letter of Credit Outstandings shall be payable to the Issuing
Lenders until such Letter of Credit Outstandings is reallocated and/or cash collateralized;
and
(d) so long as such Lender is a Defaulting Lender, the Swingline Lenders shall
not be required to fund any Swingline Loan and the Issuing Lenders shall not be required to issue,
amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100%
covered  by  the  Commitments  of  the  Non-Defaulting  Lenders  and/or  cash  collateral  will  be 

	
	
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provided by the Borrowers in accordance with Section 2.31(c), and participating interests in any
such newly made Swingline Loan or newly issued or increased Letter of Credit shall be allocated
among  Non-Defaulting  Lenders  in  a  manner  consistent  with Section 2.31(c)(i)  (and  such
Defaulting Lender shall not participate therein).
If (i) a Bankruptcy Event or a Bail-In Action with respect to the a Lender Parent of any
Lender shall occur following the date hereof and for so long as such event shall continue or (ii)
any Issuing Lender or any Swingline Lender has a good faith belief that any Lender has defaulted
in fulfilling its obligations under one or more other agreements in which such Lender commits to
extend credit, the Issuing Lenders shall not be required to issue, amend or increase any Letter of
Credit and the Swingline Lenders shall not be required to fund any Swingline Loan, unless the
Issuing Lenders or the Swingline Lenders, as the case may be, shall have entered into arrangements
with the Borrowers or such Lender, satisfactory to the Issuing Lenders or the Swingline Lenders,
as the case may be, to defease any risk  in respect of such Lender hereunder.
In the event that each of the Agent, the Borrowers, the Issuing Lenders and the Swingline
Lenders agrees that a Defaulting Lender has adequately remedied all matters that caused such
Lender to be a Defaulting Lender, then the Swingline Exposure and Letter of Credit Outstandings
of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on
the date of such readjustment such Lender shall purchase at par such of the Loans of the other
Lenders (other than Swingline Loans) as the Agent shall determine may be necessary in order for
such Lender to hold such Loans in accordance with its Commitment Percentage.
Section 2.32 Hedging Agreements and other Bank Products.  Each Lender (other than
JPMorgan) or Affiliate thereof providing Bank Products for, or having Hedging Agreements with,
any Borrower or any Subsidiary or Affiliate of a Borrower shall deliver to the Agent, promptly
after  entering  into  such  Bank  Product  or  Hedging  Agreement,  written  notice  setting  forth  the
aggregate amount of all Bank Product Obligations of such Borrower or Subsidiary or Affiliate
thereof to such Lender or Affiliate (whether matured or unmatured, absolute or contingent) and
the Specified Bank Product Amount agreed to between the Lender (or its Affiliate) and the Parent
Borrower, as applicable.  In addition, each such Lender (other than JPMorgan) or Affiliate thereof
shall deliver to the Agent, from time to time after a significant change therein or upon a request
therefor,  a  summary  of  the  amounts  due  or  to  become  due  in  respect  of  such  Bank  Product
Obligations and the Specified Bank Product Amount agreed to between the Lender (or its Affiliate)
and the Parent Borrower, as applicable.  The most recent information provided to the Agent shall
be used in determining the amounts to be applied in respect of such Bank Product Obligations
pursuant to Section 2.18(b).  For the avoidance of doubt, neither JPMorgan nor any of its Affiliates
providing  Bank  Products  for,  or  having  Hedging  Agreements  with,  any  Borrower  or  any
Subsidiary or Affiliate of a Borrower shall be required to provide any notice described in this
Section 2.32 in respect of such Bank Products or Hedging Agreements.
ARTICLE III

LOAN GUARANTY
Section 3.01 Guaranty.  The Loan Guarantors hereby jointly and severally, as a primary
obligor and not merely as a surety, guarantee to each Lender, each other holder of a Guaranteed 

	
	
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Obligation (as hereinafter defined) and the Agent and their respective successors and assigns the
prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the
principal  of  and  interest  on  the  Loans  made  by  the  Lenders  to  the Borrowers and all fees,
indemnification payments and other amounts whatsoever, whether direct or indirect, absolute or
contingent, now or hereafter from time to time owing to the Lenders or the Agent by a Borrower
under this Agreement and by any Borrower (other than, with respect to any Loan Guarantor, any
Excluded Hedging Obligations of such Loan Guarantor) under any of the other Loan Documents,
in  each  case  strictly  in  accordance  with  the  terms  thereof  and including  all  interest,  fees  and
expenses accrued or incurred subsequent to the commencement of any bankruptcy or insolvency
proceeding with respect to a Borrower, whether or not such interest, fees or expenses are allowed
as a claim in such proceeding (such obligations being herein collectively called the “Guaranteed
Obligations”).  The Loan Guarantors hereby further jointly and severally agree that if a Borrower
shall fail to pay in full when due (whether at stated maturity, by acceleration or otherwise) any of
the Guaranteed Obligations, the Loan Guarantors will promptly pay the same, without any demand
or notice whatsoever, and that in the case of any extension of time of payment or renewal of any
of  the  Guaranteed  Obligations,  the  same  will  be  promptly  paid  in  full  when  due  (whether  at
extended maturity, by acceleration or otherwise) in accordance with the terms of such extension
or renewal.  Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended
or renewed in whole or in part without notice to or further assent from it, and that it remains bound
upon its guarantee notwithstanding any such extension or renewal.  All terms of this Loan Guaranty
apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate of any
Lender that extended any portion of the Guaranteed Obligations.
Section 3.02 Guaranty of Payment.  This Loan Guaranty is a guaranty of payment and
not of collection.  Each Loan Guarantor waives any right to require the Agent, the Issuing Lender
or any Lender to sue any Borrower, any Loan Guarantor, any other guarantor of, or any other
Person obligated for, all or any part of the Guaranteed Obligations (each, an “Obligated Party”),
or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed
Obligations.
Section 3.03 No Discharge or Diminishment of Loan Guaranty.
(a) Except  as  otherwise  provided  for  herein,  the  obligations  of  each  Loan
Guarantor hereunder are unconditional and absolute and not subject to any reduction, limitation,
impairment  or  termination  for  any  reason  (other  than  Payment  in  Full  of  the  Guaranteed
Obligations), including:  (i) any claim of waiver, release, extension, renewal, settlement, surrender,
alteration or compromise of any of the Guaranteed Obligations, by operation of law or otherwise;
(ii) any change in the corporate existence, structure or ownership of any Borrower or any other
Obligated Party liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy,
reorganization or other similar proceeding affecting any Obligated Party or their assets or any
resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of any
claim, setoff or other rights which any Loan Guarantor may have at any time against any Obligated
Party,  the  Agent,  the  Issuing  Lender,  any  Lender  or  any  other  Person,  whether  in  connection
herewith or in any unrelated transactions.
(b) The obligations of each Loan Guarantor hereunder are not subject to any
defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, 

	
	
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illegality or unenforceability of any of the Guaranteed Obligations or otherwise, or any provision
of applicable law or regulation purporting to prohibit payment by any Obligated Party, of the
Guaranteed Obligations or any part thereof.
(c) Further, the obligations of any Loan Guarantor hereunder are not discharged
or impaired or otherwise affected by: (i) the failure of the Agent, the Issuing Lender or any Lender
to assert any claim or demand or to enforce any remedy with respect to all or any part of the
Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any
agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection or invalidity of
any  indirect  or  direct  security  for  the  obligations  of  any  Borrower  for  all  or  any  part  of  the
Guaranteed  Obligations  or  any  obligations  of  any  other  Obligated  Party  liable  for  any  of  the
Guaranteed Obligations; (iv) any action or failure to act by the Agent, the Issuing Lender or any
Lender with respect to any collateral securing any part of the Guaranteed Obligations; or (v) any
default,  failure  or  delay,  willful  or  otherwise,  in  the  payment  or  performance  of  any  of  the
Guaranteed  Obligations,  or  any  other  circumstance,  act,  omission  or  delay  that  might  in  any
manner or to any extent vary the risk of such Loan Guarantor or that would otherwise operate as a
discharge of any Loan Guarantor as a matter of law or equity (other than Payment in Full of the
Guaranteed Obligations).
Section 3.04 Defenses Waived.  To the fullest extent permitted by applicable law, each
Loan Guarantor hereby waives any defense based on or arising out of any defense of any Borrower
or any Loan Guarantor or the unenforceability of all or any part of the Guaranteed Obligations
from  any  cause,  or  the  cessation  from  any  cause  of  the  liability  of  any  Borrower,  any  Loan
Guarantor or any other Obligated Party, other than Payment in Full of the Guaranteed Obligations.
Without  limiting  the  generality  of  the  foregoing,  each  Loan  Guarantor  irrevocably  waives
acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any
notice not provided for herein, as well as any requirement that at any time any action be taken by
any Person against any Obligated Party or any other Person.  Each Loan Guarantor confirms that
it is not a surety under any state law and shall not raise any such law as a defense to its obligations
hereunder.  The Agent may, at its election, foreclose on any Collateral held by it by one or more
judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or
otherwise act or fail to act with respect to any collateral securing all or a part of the Guaranteed
Obligations,  compromise  or  adjust  any  part  of  the  Guaranteed  Obligations,  make  any  other
accommodation with any Obligated Party or exercise any other right or remedy available to it
against any Obligated Party, without affecting or impairing in any way the liability of such Loan
Guarantor under this Loan Guaranty except to the extent the Guaranteed Obligations have been
Paid in Full.  To the fullest extent permitted by applicable law, each Loan Guarantor waives any
defense  arising  out  of  any  such  election  even  though  that  election  may  operate,  pursuant  to
applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or
remedy of any Loan Guarantor against any Obligated Party or any security.
Section 3.05 Rights of Subrogation.  No Loan Guarantor will assert any right, claim or
cause  of  action,  including,  without  limitation,  a  claim  of  subrogation,  contribution  or
indemnification, that it has against any Obligated Party or any collateral, until the Borrowers and
the Loan Guarantors have fully performed all their obligations to the Agent, the Issuing Lender
and the Lenders. 

	
	
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Section 3.06 Reinstatement; Stay of Acceleration.  If at any time any payment of any
portion of the Guaranteed Obligations (including a payment effected through exercise of a right of
setoff) is rescinded, or must otherwise be restored or returned upon the insolvency, bankruptcy or
reorganization of any Borrower or otherwise (including pursuant to any settlement entered into by
a Secured Party in its discretion), each Loan Guarantor’s obligations under this Loan Guaranty
with respect to that payment shall be reinstated at such time as though the payment had not been
made and whether or not the Agent, the Issuing Lender and the Lenders are in possession of this
Loan Guaranty.  If acceleration of the time for payment of any of the Guaranteed Obligations is
stayed  upon  the  insolvency,  bankruptcy  or  reorganization  of  any  Borrower,  all  such  amounts
otherwise subject to acceleration under the terms of any agreement relating to the Guaranteed
Obligations shall nonetheless be payable by the Loan Guarantors forthwith on demand by the
Agent.
Section 3.07 Information.  Each Loan Guarantor assumes all responsibility for being
and  keeping  itself  informed  of  the  Borrowers’  financial  condition  and  assets,  and  of  all  other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature,
scope  and  extent  of  the  risks  that  each  Loan  Guarantor  assumes and  incurs  under  this  Loan
Guaranty, and agrees that none of the Agent, the Issuing Lender or any Lender shall have any duty
to advise any Loan Guarantor of information known to it regarding those circumstances or risks.
Section 3.08 Taxes.  Each payment of the Guaranteed Obligations will be made by each
Loan Guarantor without withholding for any Taxes, unless such withholding is required by law.
If any Loan Guarantor determines, in its sole discretion exercised in good faith, that it is so required
to withhold Taxes, then such Loan Guarantor may so withhold and shall timely pay the full amount
of withheld Taxes to the relevant Governmental Authority in accordance with applicable law.  If
such Taxes are Indemnified Taxes, then the amount payable by such Loan Guarantor shall be
increased as necessary so that, net of such withholding (including such withholding applicable to
additional amounts payable under this Section), the Agent, Lender or Issuing Lender (as the case
may be) receives the amount it would have received had no such withholding been made.
Section 3.09 Maximum Liability.  Notwithstanding any other provision of this Loan
Guaranty, the amount guaranteed by each Loan Guarantor hereunder shall be limited to the extent,
if  any,  required  so  that  its  obligations  hereunder  shall  not  be  subject  to  avoidance  under
Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer
Act, Uniform Fraudulent Conveyance Act, Uniform Voidable Transactions Act or similar statute
or common law.  In determining the limitations, if any, on the amount of any Loan Guarantor’s
obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto
that any rights of subrogation, indemnification or contribution which such Loan Guarantor may
have under this Loan Guaranty, any other agreement or applicable law shall be taken into account.
Section 3.10 Contribution.
(a) To the extent that any Loan Guarantor shall make a payment under this Loan
Guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor Payments then
previously  or  concurrently  made  by  any  other  Loan  Guarantor,  exceeds  the  amount  which
otherwise would have been paid by or attributable to such Loan Guarantor if each Loan Guarantor
had paid the aggregate Guaranteed Obligations satisfied by such Guarantor Payment in the same 

	
	
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proportion  as  such  Loan  Guarantor’s  “Allocable  Amount”  (as  defined  below)  (as  determined
immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each
of the Loan Guarantors as determined immediately prior to the making of such Guarantor Payment,
then, following indefeasible payment in full in cash of the Guarantor Payment and the Payment in
Full of the Guaranteed Obligations and the termination of this Agreement, such Loan Guarantor
shall be entitled to receive contribution and indemnification payments from, and be reimbursed
by, each other Loan Guarantor for the amount of such excess, pro rata based upon their respective
Allocable Amounts in effect immediately prior to such Guarantor Payment.
(b) As  of  any  date  of  determination,  the  “Allocable  Amount”  of  any Loan
Guarantor shall be equal to the excess of the fair saleable value of the property of such Loan
Guarantor  over  the  total  liabilities  of  such  Loan  Guarantor  (including  the  maximum  amount
reasonably  expected  to  become  due  in  respect  of  contingent  liabilities,  calculated,  without
duplication, assuming each other Loan Guarantor that is also liable for such contingent liability
pays its ratable share thereof), giving effect to all payments made by other Loan Guarantors as of
such date in a manner to maximize the amount of such contributions.
(c) This Section 3.10 is intended only to define the relative rights of the Loan
Guarantors, and nothing set forth in this Section 3.10 is intended to or shall impair the obligations
of the Loan Guarantors, jointly and severally, to pay any amounts as and when the same shall
become due and payable in accordance with the terms of this Loan Guaranty.
(d) The  parties  hereto  acknowledge  that  the  rights  of  contribution and
indemnification hereunder shall constitute assets of the Loan Guarantor or Loan Guarantors to
which such contribution and indemnification is owing.
(e) The  rights  of  the  indemnifying  Loan  Guarantors  against  other  Loan
Guarantors  under  this Section 3.10  shall  be  exercisable  upon  the  Payment  in  Full  of  the
Guaranteed Obligations and the termination of this Agreement.
Section 3.11 Liability Cumulative.  The liability of each Borrower as a Loan Guarantor
under this Article III is in addition to and shall be cumulative with all liabilities of each Borrower
to  the  Agent,  the  Issuing  Lender  and  the  Lenders  under  this  Agreement  and  the  other  Loan
Documents to which such Borrower is a party or in respect of any obligations or liabilities of the
other  Borrowers,  without  any  limitation  as  to  amount,  unless  the  instrument  or  agreement
evidencing or creating such other liability specifically provides to the contrary.
Section 3.12 Keepwell.    Each  Qualified  ECP  Guarantor  hereby  jointly  and  severally
absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as
may be needed from time to time by each other Borrower to honor all of its obligations under this
Guarantee  in  respect  of  a  Hedging  Obligation  (provided,  however,  that  each  Qualified  ECP
Guarantor shall only be liable under this Section 3.12 for the maximum amount of such liability
that can be hereby incurred without rendering its obligations under this Section 3.12 or otherwise
under  this  Loan  Guaranty  voidable  under  applicable  law  relating  to  fraudulent  conveyance  or
fraudulent transfer, and not for any greater amount).  Except as otherwise provided herein, the
obligations of each Qualified ECP Guarantor under this Section 3.12 shall remain in full force and
effect until the termination of all Hedging Obligations.  Each Qualified ECP Guarantor intends 

	
	
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that this Section 3.12 constitute, and this Section 3.12 shall be deemed to constitute, a “keepwell,
support, or other agreement” for the benefit of each other Borrower for all purposes of Section
1a(18)(A)(v)(II) of the Commodity Exchange Act.
Section 3.13 Release  of  Guarantees.    A  Loan  Guarantor  (other  than  the  Parent
Borrower)  will  automatically  be  released  from  its  obligations  under  this Article III  upon  the
consummation of any transaction permitted by this Agreement as a result of which neither the
Parent Borrower nor any of its Subsidiaries owns any Equity Interest in such Loan Guarantor or
such Loan Guarantor otherwise becomes an Excluded Subsidiary; provided that, if so required by
this Agreement, the Required Lenders shall have consented to such transactions and the terms of
such consent shall not have provided otherwise.  In connection with any release pursuant to this
Section, the Agent shall execute and deliver to any Loan Guarantor, at such Loan Guarantor’s
expense, all documents that such Loan Guarantor shall reasonably request to evidence such release.
Any execution and delivery of documents pursuant to this Section shall be without recourse to or
warranty by the Agent.
ARTICLE IV

REPRESENTATIONS AND WARRANTIES
Each Borrower, for itself and on behalf of such Borrower’s Subsidiaries represents and
warrants to the Agent and the Lenders that:
Section 4.01 Organization; Powers.  Each Borrower is, and each of its Subsidiaries is,
duly organized or formed, validly existing and in good standing under the laws of the jurisdiction
of its organization, and each such Person has all requisite power and authority to carry on its
business as now conducted and, except where the failure to do so, individually or in the aggregate,
would not reasonably be expected to result in a Material Adverse Effect, is qualified to do business
in, and is in good standing in, every jurisdiction where such qualification is required.
Section 4.02 Authorization;  Enforceability.  The Transactions are within each
Borrower’s corporate, limited liability company or partnership powers, as applicable, and have
been  duly  authorized  by  all  necessary  corporate,  limited  liability  company  or  partnership,  as
applicable,  and,  if  required,  stockholder  action.    This  Agreement  has  been  duly  executed  and
delivered by each Borrower that is a party hereto and constitutes, and each other Loan Document
to which any Borrower is a party, when executed and delivered by such Borrower will constitute,
a  legal,  valid  and  binding  obligation  of  such  Borrower  (as  the case  may  be),  enforceable  in
accordance  with  its  terms,  except  as  such  enforceability  may  be  limited  by  (a) bankruptcy,
insolvency,  reorganization,  moratorium  or  other  laws  of  general  applicability  affecting  the
enforcement of creditors’ rights and (b) the application of general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).
Section 4.03 Governmental  Approvals;  No  Conflicts.    The  Transactions  (a)  do  not
require  any  consent  or  approval  of,  registration  or  filing  with,  or  any  other  action  by,  any
Governmental Authority, except (i) for such as have been obtained or made and are in full force
and effect, (ii) for those which would not be reasonably be expected to have a Material Adverse
Effect, and (iii) for filings and recordings necessary to perfect Liens created pursuant to the Loan 

	
	
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Documents, (b) will not violate any applicable law or regulation or the charter, by laws or other
organizational documents of any Borrower or any order of any Governmental Authority, except
for such violation which would not reasonably be expected to have a Material Adverse Effect, (c)
will not violate or result in a default under any indenture, agreement or other instrument binding
upon any Borrower or any of its Subsidiaries or their respective assets, except for such violation
or default (other than under the Bonds as to which no violation or default may exist) which would
not reasonably be expected to have a Material Adverse Effect, or give rise to a right thereunder to
require any payment to be made by any Borrower or any of its Subsidiaries under any Material
Indebtedness, and (d) will not result in the creation or imposition of, or the requirement to create,
any Lien on any asset of any Borrower or any of its Subsidiaries, except Liens permitted hereunder.
Section 4.04 Financial Condition.  The Parent Borrower has heretofore furnished to the
Agent (for furnishing to the Lenders) its consolidated balance sheet and statements of income,
stockholders’ equity, and cash flows (a) as of and for the fiscal years ended February 2, 2019 and
February 1, 2020, in each case reported on by KPMG LLP, independent public accountants, and
(b) as of and for each fiscal quarter ended subsequent to the date of the latest financial statements
delivered  pursuant  to clause (a)  of  this  Section,  certified  by  a  Financial  Officer  of  the  Parent
Borrower.  Such financial statements present fairly, in all material respects, the financial position,
results of operations and cash flows of the Parent Borrower and its consolidated Subsidiaries as of
such dates and for such periods in accordance with GAAP.  No event, change or condition has
occurred, either individually or in the aggregate, that has had, or would reasonably be expected to
have, a Material Adverse Effect, since February 1, 20202021.
Section 4.05 Properties.
(a) Each  Borrower,  and  each  of  its  Subsidiaries,  has  good title  to,  or  valid
leasehold interests in, all its real and personal property material to its business, except to the extent
the failure to have such would not reasonably be expected to have a Material Adverse Effect.
(b) Each Borrower, and each of its Subsidiaries owns, or is licensed to use, all
trademarks,  trade  names,  copyrights,  patents  and  other  intellectual  property  material  to  its
business, and the use thereof by such Person does not infringe upon the rights of any other Person,
except for any such infringements that, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect.
(c) Schedule  4.05(c)(i)  sets  forth  the  address  (including  county)  of  all  Real
Estate that is owned by the Borrowers and each of their respective Subsidiaries as of the Second
Amendment Effective Date, together with  a list  of the holders of any mortgage or other Lien
thereon.  Schedule 4.05(c)(ii) sets forth the address (including county) of all Real Estate that is
leased by the Borrowers and each of their respective Subsidiaries as of the Second Amendment
Effective Date, together with a list of the landlord and the holders of any mortgage or other Lien
thereon.
Section 4.06 Litigation and Environmental Matters.
(a) There are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of any Borrower, threatened against 

	
	
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or affecting any Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility
of  an  adverse  determination  and  that,  if  adversely  determined, could  reasonably  be  expected,
individually or in the aggregate, to result in a Material Adverse Effect (other than those set forth
on Schedule 4.06) or (ii) that purport to question the validity, legality or enforceability of any Loan
Document or the Transactions.
(b) Except for the matters set forth on Schedule 4.06, and except as would not
reasonably be expected to have a Material Adverse Effect, no Borrower and no Subsidiary of any
Borrower (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.
(c) Since the Second Amendment Effective Date, there has been no change in
the status of the matters set forth on Schedule 4.06 that, individually or  in the aggregate, has
resulted in, or would reasonably be expected to result in, a Material Adverse Effect.
Section 4.07 Compliance with Laws and Agreements.  Each Borrower, and each of its
Subsidiaries, is in compliance with all laws, regulations and orders of any Governmental Authority
applicable  to  it  or  its  property  and  all  indentures  (including,  without  limitation,  the  Bonds),
material agreements (including, without limitation, any agreements relating to the securitization
of  the  Parent  Borrower’s  private  label  credit  cards  and  any  agreements  relating  to  Material
Indebtedness) and other instruments binding upon it or its property, except where the failure to do
so,  individually  or  in  the  aggregate,  would  not  reasonably  be  expected  to  result  in  a  Material
Adverse Effect.  No Default or Event of Default has occurred and is continuing.
Section 4.08 Investment Company Status.  Neither the Parent Borrower nor any of its
Subsidiaries  is  an  “investment  company”  as  defined  in,  or  subject  to  regulation under,  the
Investment Company Act of 1940.
Section 4.09 Taxes.  Each Borrower, and each of its Subsidiaries, has timely filed or
caused to be filed all Tax returns and reports required to have been filed and has paid or caused to
be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in
good faith by appropriate proceedings, for which such Person has set aside on its books adequate
reserves, and as to which no Lien has arisen, or (b) to the extent that the failure to do so would not
reasonably be expected to result in a Material Adverse Effect.
Section 4.10 ERISA.  No ERISA Event has occurred or is reasonably expected to occur
that,  when  taken  together  with  all  other  such  ERISA  Events  for which  liability  is  reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect.
Section 4.11 Disclosure.  The Borrowers have disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which any Borrower or any of its Subsidiaries,
is subject, and all other matters known to any of them, that, individually or in the aggregate, in
each case, could reasonably be expected to result in a Material Adverse Effect.  None of the reports,
financial statements, certificates or other information furnished by or on behalf of any Borrower
or any of its Subsidiaries to the Agent or any Lender in connection with the negotiation of this 

	
	
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Agreement or any other Loan Document or delivered hereunder or thereunder (as modified or
supplemented by other information so furnished) when taken as a whole contains any material
misstatement of fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not materially misleading.  As of
the Second Amendment Effective Date, to the best knowledge of any Borrower, the information
included in the Beneficial Ownership Certification provided on or prior to the Second Amendment
Effective Date to any Lender in connection with this Agreement is true and correct in all respects.
Section 4.12 Subsidiaries.    Schedule  4.12  sets  forth  the  name  of,  and  the  ownership
interest of each Borrower in each Subsidiary as of the Second Amendment Effective Date.  As of
the  Second  Amendment  Effective  Date,  except  as  set  forth  on  Schedule  4.12,  the  Subsidiary
Borrowers are not and each of their respective Subsidiaries is not party to any joint venture, general
or limited partnership, or limited liability company, agreements or any other business ventures or
entities.
Section 4.13 Insurance.  Schedule 4.13 sets forth a description of all insurance which
covers the Collateral maintained by or on behalf of the Borrowers and their respective Subsidiaries
as of the Second Amendment Effective Date.  As of the Second Amendment Effective Date, all
premiums in respect of such insurance that are due and payable have been paid.
Section 4.14 Security  Documents.  The Security Documents create in favor of the
Agent, for the ratable benefit of the Secured Parties, a legal, valid and enforceable security interest
in  the  Collateral,  and  the  Security  Documents  constitute,  or  will  upon  the  filing  of  financing
statements and the obtaining of “control”, in each case with respect to the relevant Collateral as
required under the applicable UCC, the creation of a fully perfected first priority Lien on, and
security  interest  in,  all  right,  title  and  interest  of  the  applicable  Borrowers  thereunder  in  such
Collateral,  in  each  case  prior  and  superior  in  right  to  any  other  Person,  except  as  permitted
hereunder or under any other Loan Document.
Section 4.15 Federal Reserve Regulations.
(a) Neither the Borrowers nor any of their respective Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the purpose
of buying or carrying Margin Stock.
(b) No part of the proceeds of any Loan or any Letter of Credit will be used,
whether directly or indirectly, and whether immediately, incidentally or ultimately, (i) to buy or
carry Margin Stock in violation of, or in a manner that is inconsistent with, the provisions of
applicable law and the regulations of the Board, including Regulation U or X, (ii) to extend credit
to others for the purpose of buying or carrying Margin Stock or to refund indebtedness originally
incurred for such purpose or (iii) for any purpose that entails a violation of, or that is inconsistent
with, the provisions of the regulations of the Board, including Regulation U or X.
Section 4.16 Solvency.    The  Parent  Borrower  and  its  Subsidiaries,  on  a  consolidated
basis, are Solvent.
Section 4.17 Use of Proceeds.  The proceeds of the Loans have been used and will be
used, whether directly or indirectly, as set forth in Section 6.11. 

	
	
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Section 4.18 Anti-Corruption Laws and Sanctions.  Each Borrower has implemented
and maintains in effect policies reasonably designed to ensure compliance in all material respects
by such Borrower, its Subsidiaries and their respective directors, officers and employees with Anti-
Corruption  Laws  and  applicable  Sanctions,  and  such  Borrower,  its  Subsidiaries  and  their
respective officers and directors and, to the knowledge of such Borrower, its employees, are in
compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are
not knowingly engaged in any activity that would reasonably be expected to result in any Borrower
being designated as a Sanctioned Person.  None of any Borrower, any Subsidiary or any of their
respective directors, officers or, to the knowledge of any such Borrower or Subsidiary, employees,
is a Sanctioned Person.  No Borrowing or Letter of Credit, or use of proceeds thereof, will be used
to violate Anti-Corruption Laws or applicable Sanctions.
Section 4.19 Affected Financial Institutions.  Neither the Borrowers nor any of their
respective Subsidiaries is an Affected Financial Institution.
Section 4.20 Plan  Assets;  Prohibited  Transactions.    No  Borrower  or  any  of  its
Subsidiaries  is  an  entity  deemed  to  hold  “plan  assets”  (within the  meaning  of  the  Plan  Asset
Regulations), and based on the assumption that Lenders are in compliance with Section 9.09(a)(i)
through Section 9.09(a)(iii) of this Agreement, neither the execution, delivery nor performance of
the transactions contemplated under this Agreement, including the making of any Loan and the
issuance of any Letter of Credit hereunder, will give rise to a non-exempt prohibited transaction
under Section 406 of ERISA or Section 4975 of the Code.
ARTICLE V

CONDITIONS
Section 5.01 Second  Amendment  Effective  Date.  The effectiveness of the Second
Amendment and the obligations of the Lenders to make Loans and of the Issuing Lenders to issue
Letters of Credit hereunder is subject to satisfaction (or waiver by the Required Lenders) of the
following conditions precedent:
(a) The Agent (or its counsel) shall have received from the Borrowers and the
Required Lenders either (i) a counterpart of the Second Amendment and all other Loan Documents
signed on behalf of such party or (ii) written evidence satisfactory to the Agent (which may include
telecopy or other electronic transmission of a signed signature page of the Second Amendment)
that such party has signed a counterpart of the Second Amendment and all other Loan Documents.
(b) The Agent shall have received a favorable written opinion (addressed to the
Agent  and  the  Lenders  on  the  Second  Amendment  Effective  Date  and  dated  the  Second
Amendment Effective Date) of Simpson Thacher & Bartlett LLP, counsel for the Borrowers, and
such other opinions of counsel as the Agent may reasonably request, and covering such matters
relating to the Borrowers, the Loan Documents or the Transactions as is customary for transactions
of this type.  The Borrowers hereby request such counsel to deliver such opinion.
(c) The Agent shall have received such documents and certificates as the Agent
or its counsel may reasonably request relating to the organization, existence and good standing of 

	
	
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each Borrower, the authorization of the transactions contemplated by the Loan Documents and
any  other  legal  matters  relating  to  the  Borrowers,  the  Loan  Documents  or  the  transactions
contemplated thereby, all in form and substance reasonably satisfactory to the Agent and their
counsel.
(d) The  Agent  shall  have  received  a  Borrowing  Base  Certificate  dated  the
Second Amendment Effective Date, relating to the month ended on March 31, 2020, calculating
the  Deemed  Borrowing  Base  on  such  date  with  customary  supporting  schedules  and
documentation.
(e) The Agent shall have received a certificate, reasonably satisfactory in form
and substance to the Agent, with respect to the solvency of the Parent Borrower and its Subsidiaries
on a consolidated basis, as of the Second Amendment Effective Date.
(f) All  necessary  consents  and  approvals  to  the  transactions  contemplated
hereby shall have been obtained and shall be reasonably satisfactory to the Agent.
(g) No event, change or condition, either individually or in the aggregate, that
has had, or could reasonably be expected to have, a Material Adverse Effect, since February 1,
2020.
(h) The  Agent  shall  have  received  and  be  reasonably  satisfied  with (i) the
audited financial statements of the Parent Borrower and its Subsidiaries for the fiscal year ended
February 2, 2019 and February 1, 2020; (ii) satisfactory unaudited interim consolidated financial
statements of the Parent Borrower for each fiscal quarter ended subsequent to the date of the latest
financial  statements  delivered  pursuant  to clause (i) of this paragraph (h)  and  (iii) the  Parent
Borrower’s most recent projected income statement, balance sheet and cash flows prepared on a
monthly basis through January 29, 2021.
(i) There is no pending litigation or other proceeding, the result of which would
reasonably be expected to have a Material Adverse Effect.
(j) The  consummation  of  the  Transactions  contemplated  hereby  shall not
conflict  with,  or  result  in  a  default  or  event  of  default  under,  any  material  agreement  of  any
Borrower,  including,  without  limitation,  under  the  Bonds  or  under  any  agreement  relating  to
Material  Indebtedness  (and  the  Agent  and  the  Lenders  shall  receive  a  satisfactory  opinion  of
Borrowers’ counsel to that effect).
(k) The  Agent  shall  have  received  results  of  searches  or  other  evidence
reasonably satisfactory to the Agent (in each case dated as of a date reasonably satisfactory to the
Agent)  indicating  the  absence  of  Liens  on  the  Borrowers’  Inventory  and  proceeds  thereof,
including without limitation, receivables from credit card processors, except for Liens for which
termination  statements  and  releases  reasonably  satisfactory  to the  Agent  are  being  tendered
concurrently with such extension of credit.
(l) Other than as set forth in Section 2.24(c), the Agent shall have received all
documents and instruments, including UCC financing statements, required by law or reasonably
requested by the Agent to be filed, registered or recorded to create or perfect the first priority Liens 

	
	
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intended to be created under the Loan Documents and all such documents and instruments shall
have been so filed, registered or recorded to the satisfaction of the Agent.
(m) All fees due on the Second Amendment Effective Date and all reasonable
and  documented  out-of-pocket  expenses  incurred  by  the  Agent  and  the  Second  Amendment
Arrangers in connection with the Second Amendment (including the reasonable fees and expenses
of counsel to the Agent and the Second Amendment Arrangers) for which invoices have been
presented not later than three (3) Business Days prior to the Second Amendment Effective Date,
shall have been paid in full.
(n) [reserved].
(o) [reserved].
(p) The Agent shall have received a certificate of the Parent Borrower stating
that the representations and warranties made by the Borrowers to the Agent and the Lenders in the
Loan  Documents  are  true  and  correct  in  all  material  respects  (except  any  representations  and
warranties qualified by materiality shall be true and correct in all respects) as of the date of such
certificate, and that no event has occurred which is or which, solely with the giving of notice or
passage of time (or both) would be an Event of Default.
(q) There  shall  be  no  Default  or  Event  of  Default  that  has  occurred  and  is
continuing on the Second Amendment Effective Date.
(r) The  Agent  shall  have  received  evidence  of  insurance  coverage  in form,
scope, and substance reasonably satisfactory to the Agent and otherwise in compliance with the
terms of Section 6.07 hereof and Section 4.15 of the Security Agreement.
(s) (i) The Agent shall have received, at least three (3) days prior to the Second
Amendment Effective Date, all documentation and other information  regarding the Borrowers
requested in connection with applicable “know your customer” and anti-money laundering rules
and  regulations,  including  the  USA  PATRIOT  Act,  to  the  extent  requested  in  writing  of  the
Borrowers at least seven (7) days prior to the Second Amendment Effective Date, and (ii) to the
extent  any  Borrower  qualifies  as  a  “legal  entity  customer”  under  the  Beneficial  Ownership
Regulation, at least three (3) days prior to the Second Amendment Effective Date, any Lender that
has requested, in a written notice to the Borrowers at least seven (7) days prior to the Second
Amendment Effective Date, a Beneficial Ownership Certification in relation to each Borrower
shall have received such Beneficial Ownership Certification (provided that, upon the execution
and delivery by such Lender of its signature page to the Second Amendment, the condition set
forth in this clause (ii) shall be deemed to be satisfied).
Without limiting the generality of the provisions of Section 9.02(c), for purposes of determining
compliance with the conditions specified in this Section 5.01, each Lender that has signed the
Second Amendment shall be deemed to have consented to, approved or accepted or to be satisfied
with,  each  document  or  other  matter  required  under  this Section 5.01  to  be  consented  to  or
approved by or acceptable or satisfactory to a Lender unless the Agent shall have received notice
from such Lender prior to the Second Amendment Effective Date specifying its objection thereto.
All  documents  executed  or  submitted  pursuant  to  this Section 5.01  by  and  on  behalf  of  the 

	
	
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Borrowers shall be in form and substance reasonably satisfactory to the Agent and its counsel.  The
Agent shall notify the Borrowers and the Lenders of the Second Amendment Effective Date, and
such notice shall be conclusive and binding.
Section 5.02 Conditions Precedent to Each Loan and Each Letter of Credit.
In addition to those conditions described in Section 5.01, the obligation of the Lenders to
make each Revolving Loan (other than any conversion or continuation of any Revolving Loan)
and of the Issuing Lenders to issue, amend, renew or extend any Letter of Credit, is subject to the
following conditions precedent:
(a) Notice.    The  Agent  shall  have  received  a  notice  with  respect  to such
Borrowing or issuance,  amendment, renewal or  extension, as the case may be,  as required by
Article II, certifying (a) as to the use of proceeds of such Borrowing on the date of such Borrowing
if the Consolidated Cash Balance after giving pro forma effect to such Borrowing and the use of
proceeds thereof would exceed the Consolidated Cash Balance Threshold, and (a) that at the time
of and after giving effect to such Borrowing (and the use of proceeds thereof) on or around such
date,  but  in  any  event  not  to  exceed  five  (5)  Business  Days  after  such  date  (as  certified  by  a
Responsible Officer of the Parent Borrower to the extent required under the foregoing clause (i))
or  the  issuance,  amendment,  renewal  or  extension  of  such  Letter  of  Credit,  as  applicable,  the
Consolidated Cash Balance shall not exceed the Consolidated Cash Balance Threshold.
(b) Representations  and  Warranties.    All  representations  and  warranties
contained  in  this  Agreement  and  the  other  Loan  Documents  or  otherwise  made  in  writing  in
connection herewith or therewith shall be true  and correct in all material respects (except any
representations and warranties qualified by materiality shall be true and correct in all respects) on
and as of the date of each Borrowing or the issuance, amendment, renewal or extension of any
Letter of Credit hereunder with the same effect as if made on and as of such date, other than
representations and warranties that relate solely to an earlier date.
(c) No Default.  On the date of each such Borrowing and the issuance of each
Letter of Credit, and after giving effect to such Borrowing or issuance, amendment, renewal or
extension of such Letter of Credit, no Default or Event of Default shall have occurred and be
continuing.
The request by the Borrowers for, and the acceptance by the Borrowers of, each extension of credit
hereunder shall be deemed to be a representation and warranty by the Borrowers that the conditions
specified in this Section 5.02 have been satisfied at that time and that after giving effect to such
extension of credit the aggregate of all Credit Extensions shall not exceed the amounts set forth in
Section 2.01(a) hereof.  The conditions set forth in this Section 5.02 are for the sole benefit of the
Agent and each Lender and may be waived by the Agent in whole or in part without prejudice to
the Agent or any Lender.  Notwithstanding the failure to satisfy the conditions precedent set forth
in this Section 5.02, unless otherwise directed by the Required Lenders, the Administrative Agent
may, but shall have no obligation to, continue to make Loans and an Issuing Lender may, but shall
have no obligation to, issue, amend, renew or extend, or cause to be issued, amended, renewed or
extended, any Letter of Credit for the ratable account and risk of Lenders from time to time if the
Agent believes that making such Loans or issuing, amending, renewing or extending, or causing 

	
	
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the issuance, amendment, renewal or extension of, any such Letter of Credit is in the best interests
of the Lenders.
ARTICLE VI

AFFIRMATIVE COVENANTS
Until all of the Obligations have been Paid in Full, each Borrower covenants and agrees
with the Agent and the Lenders that:
Section 6.01 Financial  Statements  and  Other  Information.    The  Borrowers  will
furnish to the Agent:
(a) as soon as available and in any event within ninety (90) days after the end
of  each  fiscal  year  of  the  Parent  Borrower,  the  audited  consolidated balance sheet and related
statements  of  earnings,  shareholders’  equity  and  cash  flows  of the  Parent  Borrower  and  its
Subsidiaries (together with an unaudited reconciliation, reflecting total assets, Inventory, capital
expenditures  and  cash  for  the  Parent  Borrower  and  its  Subsidiaries,  on  the  one  hand,  and  the
Specified Subsidiaries, on the other hand) as of the end of and for such year, setting forth in each
case in comparative form the figures for the previous fiscal year, all reported on by KPMG LLP
or another independent registered public accounting firm of recognized national standing (without
a “going concern” or like qualification or exception and without any qualification or exception as
to the scope of such audit) to the effect that such consolidated financial statements present fairly,
in all material respects, the financial condition and results of operations and cash flows of the
Parent Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP;
(b) as soon as available and in any event within forty-five (45) days after the
end  of  each  of  the  first  three  fiscal  quarters  of  each  fiscal  year of the Parent Borrower, the
consolidated balance sheet and related statements of earnings, shareholders’ equity and cash flows
of the Parent Borrower and its Subsidiaries (together with an unaudited reconciliation, reflecting
total assets, Inventory, capital expenditures and cash for the Parent Borrower and its Subsidiaries,
on the one hand, and the Specified Subsidiaries, on the other hand) as of the end of and for such
fiscal  quarter  and  the  then  elapsed  portion  of  the  fiscal  year,  setting  forth  in each  case  in
comparative form the figures for (or, in the case of the balanc e  sheet,  as  of  the  end  of)  the
corresponding period or periods of the previous fiscal year, all certified by a Financial Officer of
the Parent Borrower as presenting fairly, in all material respects, the financial condition and results
of operations and cash flows of the Parent Borrower and its Subsidiaries on a consolidated basis
in accordance with GAAP, subject to normal year-end audit adjustments and the absence of certain
footnotes;
(c) concurrently with any delivery of financial statements under clause (a) or
(b)  of  this  Section,  a  certificate  executed  by  a  Financial  Officer  of  the  Parent  Borrower  (i)
certifying as to whether, to the best knowledge of such Financial Officer (following due inquiry),
a Default has occurred and, if a Default has occurred, specifying the details thereof and any action
taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations
demonstrating  compliance  with Section 7.08  (if  a  Trigger  Period  is  in  effect)  and  (iii)  stating
whether any change in GAAP or in the application thereof has occurred since the date of the Parent 

	
	
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Borrower’s audited financial statements referred to in Section 4.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements accompanying such
certificate;
(d) within forty-five (45) days after the commencement of each fiscal year of
the Parent Borrower, a detailed consolidated budget by quarter for such fiscal year (including a
projected consolidated balance sheet and related statements of projected operations and cash flow
as of the end of and for such fiscal year) and, promptly when available, any significant revisions
of such budget;
(e) within five (5) days after the end of each month, a certificate in the form of
Exhibit D  or  any  other  form  reasonably  acceptable  to  the  Agent  (a  “Borrowing  Base
Certificate”)  showing  the  Borrowing  Base  as  of  the  close  of  business  on  the  last  day  of  the
immediately preceding month and supporting information reasonably requested by the Agent in
connection  therewith  (including,  in  respect  of any  Borrowing  Base  Certificate delivered  for  a
month which is also the end of any fiscal quarter of the Parent Borrower, a calculation of Average
Quarterly Availability for such quarter then ended and an indication of what the Applicable Rate
is as a result of such Average Quarterly Availability), each such Borrowing Base Certificate to be
certified as complete and correct on behalf of the Borrowers by a Financial Officer of the Parent
Borrower; provided, that, at any time an Activation Period exists, a Borrowing Base Certificate
(showing  the  Borrowing  Base  as  of  the  close  of  business  on  the last  day  of  the  immediately
preceding week) shall be furnished weekly on Wednesday of each week;
(f) promptly after the same become publicly available, copies of all periodic
and other reports, proxy statements and other materials filed by the Parent Borrower  with the
Securities and Exchange Commission, or any Governmental Authority succeeding to any or all of
the  functions  of  the  Securities  and  Exchange  Commission,  or  with  any  national  securities
exchange, as the case may be;
(g) promptly upon receipt thereof, copies of all reports submitted to the Parent
Borrower by independent certified public accountants in connection with each annual, interim or
special audit of the books of the Parent Borrower and its Subsidiaries made by such accountants,
including any management letter commenting on the Borrowers’ internal controls submitted by
such accountants to management in connection with their annual audit;
(h)promptly (but in any event within two (2) Business Days) after delivering any
Borrowing  Base  Certificate pursuant  to Section 6.01(e),  the  Parent  Borrower  shall  notify  the
Administrative Agent of the Consolidated Cash Balance as the close of business on the date such
Borrowing  Base  Certificate  was  delivered  and  whether  the  Borrowers  are  required  to  make  a
payment pursuant to Section 2.21(c); and
(h) [Reserved]; and
(i) promptly  following  any  request  therefor,  (i)  such  other  information
regarding the operations, changes in ownership of Equity Interests, business affairs and financial
condition of any Borrower or any Subsidiary, or compliance with the terms of this Agreement or
any other Loan Document, as the Agent or any Lender may reasonably request, and (ii) information 

	
	
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and documentation reasonably requested by the Agent or any Lender for purposes of compliance
with applicable “know your customer” and anti-money laundering rules and regulations, including
the USA PATRIOT Act and the Beneficial Ownership Regulation.
The Parent Borrower’s obligations under clauses (a) and (b) of this Section shall in any event be
deemed sufficiently performed if the financial statements referred to therein are delivered by the
time  required  under  the  applicable  clause  in  such  form  and  content  as  permitted under  the
Exchange Act.  Documents required to be delivered pursuant to clauses (a) and (b) of this Section
(to the extent any such documents are included in materials otherwise filed and publicly available
with the Securities and Exchange Commission) shall be deemed to have been delivered on the date
on which the Parent Borrower posts such documents on www.sec.gov, or provides a link thereto
on the Parent Borrower’s website.  All documents and notices required by this Section shall be
deemed sufficiently delivered when posted by the Agent on the Approved Electronic Platform to
which each Lender and the Agent have been granted access.
The Parent Borrower represents and warrants that it files its financial statements with the SEC and,
accordingly, the Parent Borrower hereby (i) authorizes the Agent to make the financial statements
to  be  provided  under Section 6.01(a) or (b),  along  with  the  Loan  Documents,  available  to  all
Lenders and (ii) agrees that at the time such financial statements are provided hereunder, they shall
already have been made available to holders of its securities.  The Parent Borrower will not request
that any other material be posted to all Lenders without expressly representing and warranting to
the Agent in writing that such materials do not constitute material non-public information or that
the  Parent  Borrower  has  no  outstanding  publicly  traded  securities.    In  no  event  shall  the
Administrative Agent post compliance certificates or budgets to public side lenders.
Section 6.02 Notices of Material Events.  The Borrowers will furnish to the Agent (to
furnish promptly to each Issuing Lender and each Lender) prompt written notice of the following:
(a) the occurrence of any Default or Event of Default;
(b) the filing or commencement of any action, suit or proceeding Proceeding
by or before any arbitrator or Governmental Authority against or affecting any Borrower or any
Subsidiary or any Affiliate thereof that, if adversely determined, could reasonably be expected to
result in a Material Adverse Effect;
(c) the occurrence of any ERISA Event that, alone or together with any other
ERISA  Events  that  have  occurred,  results  in,  or  could  reasonably  be  expected  to  result  in,  a
Material Adverse Effect;
(d) any other development that results in, or could reasonably be expected to
result in, a Material Adverse Effect;
(e) the discharge by any Borrower of their present independent accountants or
any withdrawal or resignation by such independent accountants; and
(f) any  change  in  the  information  provided  in  the  Beneficial  Ownership
Certification delivered to such Lender that would result in a change to the list of beneficial owners
identified in such certification. 

	
	
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Each notice delivered under this Section (i) shall be in writing, (ii) shall contain a heading or a
reference line that reads “Notice under Section 6.02 of that certain Five-Year Credit Agreement
dated  as  of  May  13,  2015,  by  and  among  Dillard’s,  Inc.,  a  Delaware  corporation,  the  other
Borrowers  from  time  to  time  party  thereto,  the  lenders  from  time  to  time  party  thereto  and
JPMorgan  Chase  Bank,  N.A.,  a  national  banking  association,  as  Administrative  Agent  and
Collateral Agent, as the same may be amended, restated, amended and restated, supplemented or
otherwise modified from time to time” and (iii) shall be accompanied by a statement of a Financial
Officer or other Responsible Officer of the Parent Borrower setting forth the details of the event
or development requiring such notice and, if applicable, any action taken or proposed to be taken
with respect thereto.
Section 6.03 Information Regarding Collateral.
(a) The Parent Borrower will furnish to the Agent prompt written notice of any
change in (i) any Borrower’s corporate name or in any trade name used to identify it in the conduct
of  its  business  or  in  the  ownership  of  its  properties,  (ii)  the  location  of  any  Borrower’s  chief
executive office, its principal place of business, any office in which it maintains books or records
relating to Collateral owned by it or any office or facility at which Collateral owned by it is located
(including the establishment of any such new office or facility), (iii) any Borrower’s identity or
corporate  structure  or  (iv)  any  Borrower’s  jurisdiction  of  organization,  Federal  Taxpayer
Identification Number or state organizational number.  The Parent Borrower also agrees promptly
to notify the Agent if any material portion of the Collateral is damaged or destroyed.
(b) Each year, at the time of delivery of annual financial statements with respect
to  the  preceding  fiscal  year  pursuant  to clause (a) of Section 6.01,  the  Parent  Borrower  shall
deliver to the Agent a certificate of a Financial Officer of the Parent Borrower setting forth the
information  required  pursuant  to  Section  3  and  Section  6  of  the  Perfection  Certificate  or
confirming  that  there  has  been  no  change  in  such  information  since  the  Second  Amendment
Effective  Date  or  the  date  of  the  most  recent  Perfection  Certificate  delivered  pursuant  to  this
Section.
Section 6.04 Existence; Conduct of Business.  Each Borrower will, and will cause each
of its Subsidiaries to, do or cause to be done all things necessary to comply with its respective
charter,  certificate  of  incorporation,  articles  of  organization,  and/or  other  organizational
documents,  as  applicable;  and  by  laws  and/or  other  instruments which  deal  with  corporate
governance, and to preserve, renew and keep in full force and effect its legal existence and the
rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks and trade names
material to the conduct of its business except, in each case, as otherwise permitted by Section 7.03
or except to the extent that failure to do so would not reasonably be expected to have a Material
Adverse Effect.
Section 6.05 Payment of Obligations.  Each Borrower will, and will cause each of its
Subsidiaries to, pay its Indebtedness and other obligations, including Tax liabilities, before the
same shall become delinquent or in default, except where (a) the validity or amount thereof is
being contested in good faith by appropriate proceedings, (b) such Borrower or such Subsidiary
has set aside on its books adequate reserves with respect thereto in accordance with GAAP, (c) no
Lien that is prohibited by Section 7.02 secures such obligation, and (d) the failure to make payment 

	
	
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pending such contest would not reasonably be expected to result in a Material Adverse Effect.
Nothing contained herein shall be deemed to limit the rights of the Agent under Section 2.02(a).
Section 6.06 Maintenance of Properties.  Each Borrower will, and will cause each of
its Subsidiaries to, keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted and with the exception of asset
dispositions permitted hereunder.
Section 6.07 Insurance.
(a) Each Borrower will, and will cause each of its Subsidiaries to, (i) maintain
insurance with financially sound and reputable insurers reasonably acceptable to the Agent (or, to
the extent consistent with prudent business practice, a program of self-insurance approved by the
Agent,  such  approval  not  to  be  unreasonably  withheld,  provided  that,  solely  with  respect  to
hurricane insurance, the Agent hereby approves a self-insurance program covering any store or
other inventory location that is in a tier 1 county) on such of its property and in at least such
amounts and against at least such risks as is customary with companies in the same or similar
businesses operating in the same or similar locations, including public liability insurance against
claims for personal injury or death occurring upon, in or about or in connection with the use of any
properties owned, occupied or controlled by it (including the insurance required pursuant to the
Security  Documents);  (ii)  maintain  such  other  insurance  as  may be  required  by  law;  and  (iii)
furnish to the Agent, upon written request, full information as to the insurance carried.
(b) Fire  and  extended  coverage  policies  maintained  with  respect  to any
Collateral shall be endorsed or otherwise amended to include (i) a provision to the effect that none
of the Borrowers, the Agent, or any other party shall be a coinsurer, (ii) naming the Agent as lender
loss payee and additional insured, and (iii) such other provisions as the Agent may reasonably
require from time to time to protect the interests of the Lenders.  Each such policy referred to in
this paragraph also shall provide that it shall not be canceled, modified or not renewed (A) by
reason of nonpayment of premium except upon not less than 30 days’ prior written notice thereof
by the insurer to the Agent (giving the Agent the right to cure defaults in the payment of premiums)
or (B) for any other reason except upon not less than 30 days’ prior written notice thereof by the
insurer  to  the  Agent.    The  Borrowers  shall  deliver  to  the  Agent,  prior  to  the  cancellation,
modification or nonrenewal of any such policy of insurance, a copy of a renewal or replacement
policy (or other evidence of renewal of a policy previously delivered to the Agent) together with
evidence satisfactory to the Agent of payment of the premium therefor.  The Agent may retain and
apply insurance proceeds which are paid to reimburse the Borrowers for any loss to the Collateral
in accordance with this Agreement, but only after a Cash Control Event or an a Specified Event of
Default has occurred and is continuing; all other insurance proceeds and all insurance proceeds
received when no Cash Control Event or Specified Event of Default has occurred and is continuing
may be retained by the Borrowers and the Agent shall endorse any instruments on which it is
named as payee to the applicable Borrower; provided that, in each case, the Borrowers shall be
required to make a mandatory prepayment pursuant to Section 2.21(a) to the extent such casualty
or condemnation event results in a loss of Collateral that causes the Credit Extensions to exceed
the lower of the (x) the then amount of the Total Commitment, and (y) the then amount of the
Borrowing Base after giving effect to such casualty or condemnation event. 

	
	
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Section 6.08 Casualty and Condemnation.  Each Borrower will furnish to the Agent
and the Lenders prompt written notice of any casualty or other insured damage to any material
portion of the Collateral or the commencement of any action or proceeding for the taking of any
material portion of the Collateral or any part thereof or interest therein under power of eminent
domain or by condemnation or similar proceeding.
Section 6.09 Books and Records; Inspection and Audit Rights; Appraisals.
(a) Each Borrower will, and will cause each of its Subsidiaries to, keep proper
books of record and account in such detail as is necessary to allow the delivery of the reports
required  by Section 6.01,  in  which  full,  true  and  correct  entries  are  made  of  all  dealings  and
transactions in relation to its business and activities in accordance with and as required by GAAP
in all material respects.  Each Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Agent (on its own behalf or as requested by any Lender), upon
reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its
books  and  records,  and  to  discuss  its  affairs,  finances  and  condition  with  its  officers  and
independent accountants, all at such reasonable times and as often as reasonably requested.
(b) Each Borrower will, and will cause each of the Subsidiaries to, from time
to time upon the reasonable request of the Agent or the Required Lenders through the Agent,
permit the Agent or other professionals (including investment bankers, consultants, accountants,
lawyers and appraisers) retained by the Agent to conduct appraisals, field examinations and other
evaluations, including, without limitation, of (i) the Borrowers’ practices in the computation of the
Borrowing  Base  and  (ii)  the  assets  included  in  the  Borrowing  Base  and  related  financial
information such as, but not limited to, sales, gross margins, payables, accruals and reserves, and
pay the reasonable fees  and expenses of the Agent or such professionals with respect to such
evaluations and appraisals.  Notwithstanding the foregoing, the Agent shall only undertake one
inventory  appraisal  and  one  field  examination  at  the  Borrowers’  expense  in  each  consecutive
twelve month period as long as an Inspection Trigger Period is not continuing; if an Inspection
Trigger Period has occurred and is continuing, the Agent may cause additional inventory appraisals
and field exams to be undertaken as it in its discretion deems necessary or appropriate, or as may
be required by applicable law; provided that any inventory appraisals or field exams commenced
while  an  Inspection  Trigger  Period  is  continuing  shall  be  at  the  expense  of  the  Borrowers;
provided, further, that two inventory appraisals shall be undertaken at the Borrowers’ expense in
the first twelve-month period after the Second Amendment Effective Date.
Section 6.10 Compliance with Laws.  Each Borrower will, and will cause each of its
Subsidiaries to, comply with all laws (including ERISA and Environmental Laws) and all rules,
regulations and orders of any Governmental Authority applicable to it or its property, except where
the failure to do so, individually or in the aggregate, would not reasonably be expected to result in
a  Material  Adverse  Effect.    Each  Borrower  will  maintain  in  effect  and  enforce  policies  and
procedures designed to ensure compliance by such Borrower, its Subsidiaries and their respective
directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.
Section 6.11 Use  of  Proceeds  and  Letters  of  Credit.    The  proceeds  of  Loans  made
hereunder and Letters of Credit issued hereunder will be used only (a) to finance the acquisition
of working capital assets of the Borrowers and their respective Subsidiaries, including the purchase 

	
	
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of  Inventory  in  the  ordinary  course  of  business,  (b)  to  finance  Capital  Expenditures  of  the
Borrowers  and  their  respective  Subsidiaries,  and  (c)  for  general  corporate  purposes,  including
repurchases of the Bonds and other Indebtedness.  No part of the proceeds of any Loan and no
Letter of Credit will be used, whether directly or indirectly, for any purpose that entails a violation
of the Bonds or of any of the regulations of the Board, including Regulations T, U and X.  No
Borrower will request any Borrowing or Letter of Credit, and no Borrower shall use, and each
Borrower  shall  procure  that  its  Subsidiaries  and  its  and  their respective  directors,  officers,
employees  and  agents  shall  not  use,  the  proceeds  of  any  Borrowing  or  Letter  of  Credit  (i)  in
furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of
money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for
the purpose of funding, financing or facilitating any activities, business or transaction of or with
any Sanctioned Person, or in any Sanctioned Country, except to the extent permitted for a Person
required to comply with Sanctions, or (iii) in any manner that would result in the violation of any
Sanctions applicable to any party hereto.
Section 6.12 Accuracy  of  Information.    The  Borrowers  will  ensure  that  any
information,  including  financial  statements  or  other  documents,  furnished  to  the  Agent  or  the
Lenders in connection with this Agreement or any other Loan Document or any amendment or
modification  hereof  or  thereof  or  waiver  hereunder  or  thereunder  contains  no  material
misstatement of fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, and the furnishing
of such information shall be deemed to be a representation and warranty by the Borrowers on the
date thereof as to the matters specified in this Section; provided that, with respect to projected
financial information, the Borrowers will only ensure that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time.
Section 6.13 Additional Borrowers; Further Assurances.
(a) Upon  the  formation  or  acquisition  of  any  Material  Subsidiary  of  any
Borrower (other than any Excluded Subsidiary), after the Second Amendment Effective Date, or
if any Subsidiary becomes a Material Subsidiary after the Second Amendment Effective Date, (i)
the Parent Borrower shall notify the Agent of such Material Subsidiary and provide the Agent with
such documents and information related to the Material Subsidiary to satisfy the requirements
under Section 10.19 and (ii) such Material Subsidiary shall execute and deliver a joinder to this
Agreement  and  to  the  Security  Agreement  as,  and  shall  become,  a  Borrower  hereunder  and  a
Grantor (as defined in the Security Agreement) thereunder within, in each case, thirty (30) days
(as such date may be extended by the Agent in its sole discretion) after such Subsidiary becomes
a Material Subsidiary.  Further, within sixty (60) days (as such date may be extended by the Agent
in its sole discretion) after such Person becomes a Material Subsidiary, such Person shall execute
and deliver, or  cause to  be executed  and delivered, such Blocked  Account  Agreements,  DDA
Notifications,  and  Credit  Card  Notifications  as  the  Agent  may  reasonably  request.    Nothing
contained in this Section 6.13 shall permit any Borrower to form or acquire any Subsidiary which
is otherwise prohibited by this Agreement.
(b) Each Borrower and its Subsidiaries (other than any Excluded Subsidiary)
will execute any and all further documents, financing statements, agreements and instruments, and
take all such further actions (including the filing and recording of financing statements and other 

	
	
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documents), that may be required under any applicable law, or which the Agent or the Required
Lenders  may  reasonably  request,  to  effectuate  the  transactions contemplated  by  the  Loan
Documents or to grant, preserve, protect or perfect the Liens created or intended to be created by
the Security  Documents or the validity or priority of any such Lien, all at the expense of the
Borrowers.  The Borrowers also agree to provide to the Agent, from time to time upon request,
evidence reasonably satisfactory to the Agent as to the perfection and priority of the Liens created
or intended to be created by the Security Documents, and to the extent any real property is included
in the Collateral, such other documents as the Agent may reasonably request on behalf of any
Lender that is a regulated financial institution or any Affiliate of such a Lender (each, a “Regulated
Lender Entity”), in each case, to the extent such other documents are required for compliance by
such  Regulated  Lender  Entity  with  applicable  law  with  respect  to  flood  insurance  diligence,
documentation and coverage under the Flood Disaster Protection Act of 1973, as amended.  Prior
to  signing  by  any  Borrower  of  any  mortgage  or  deed  of  trust  to secure  the  Obligations,  the
applicable Borrower and the Agent shall have provided each Regulated Lender Entity requesting
the same a copy of the life of loan flood zone determination relative to the property to be subject
to such mortgage or deed of trust delivered to the Agent and copies of the other documents required
by any such Regulated Lender Entity as provided in the preceding sentence and shall have received
confirmation  from  each  Regulated  Lender  Entity  that  flood insurance  due  diligence  and  flood
insurance compliance has been completed by such Regulated Lender Entity (such confirmation
not to be unreasonably withheld, conditioned or delayed, and shall be delivered promptly upon
such completion by the applicable Regulated Lender Entity).
(c) The  Borrowers  shall  cause  each  Subsidiary  which  is  not  a  Subsidiary
Borrower  and  which  owns  or  controls  any  trademark,  trade  name, logo,  any  other  General
Intangibles, or any furniture, Fixtures, or Equipment located at any store location, to execute and
deliver to the Agent a royalty free, non-exclusive license to use any such assets in connection with
any exercise of the Agent’s rights under the Security Agreement, including without limitation, in
connection with any sale or other disposition of Inventory.  As used herein, the term “General
Intangible”, “Fixtures” and “Equipment” shall each have the meaning provided in the Security
Agreement.
(d) Notwithstanding  anything  to  the  contrary  contained  herein,  subject  to
Section 2.24(c),  each  Subsidiary  Borrower  shall,  and  the  Parent  Borrower  shall cause each
Subsidiary Borrower to, execute and deliver, or cause to be executed and delivered, such Blocked
Account  Agreements, DDA  Notifications,  and  Credit  Card  Notifications  as  the  Agent  may
reasonably request for any DDA that is not subject to a Blocked Account Agreement and any credit
card processor that has not delivered a Credit Card Notification prior to the earlier of (i) Parent
Borrower, Subsidiary Borrower or their Subsidiaries depositing any amounts into such DDA or
using such credit card processor, and (ii) sixty (60) days (as such date may be extended by the
Agent in its sole discretion) after (x) opening such DDA or entering into an agreement with such
credit card processor, as applicable, or (y) any Subsidiary (other than any Excluded Subsidiary)
becomes a Material Subsidiary, in each case as applicable.
Section 6.14  Post-Closing Obligations.
(a)  On or prior to the date that is 90 days (as such date may be extended by the
Agent in its sole discretion) after the day that 80% of the Borrowers’ then existing stores are re-

	
	
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opened, the Agent shall have received (i) appraisals of the Collateral consisting of Inventory by a
third  party  appraiser  reasonably  acceptable  to  the  Agent  and  (ii)  a  field  examination  of  the
Borrowers’ books and records reasonably acceptable to the Agent.
(b)  On or prior to the date that is 30 days (as such date may be extended by the
Agent  in  its  sole  discretion)  after  the  Second  Amendment  Effecive  Date,  the  Borrowers  shall
deliver insurance endorsements in form, scope and substance reasonably acceptable to the Agent
evidencing  that  the  Agent  has  been  named  as  lender  loss  payee  and  additional  insured,  as
applicable, under each applicable insurance policy and otherwise in compliance with the terms of
the Loan Documents.
(c)  On or prior to the date that is 15 days (as such date may be extended by the
Agent in its sole discretion) after the Second Amendment Effective Date, the Agent shall have
received a favorable written opinion (addressed to the Agent and the Lenders on the date such
opinion is delivered) of Nevada, Missouri, Utah and Arizona counsel for the Borrowers, covering
such matters relating to the Borrowers, the Loan Documents or the Transactions as is customary
for transactions of this type. The Borrowers hereby request such counsel to deliver such opinion.
(d)  The Borrowers failure to comply with any requirement of this Section 6.14
on or before the date specified in this Section 6.14 shall constitute an immediate Event of Default.
ARTICLE VII

NEGATIVE COVENANTS
Until all of the Obligations have been Paid in Full, each Borrower covenants and agrees
with the Agent and the Lenders that:
Section 7.01 Indebtedness and Other Obligations.  The Subsidiary Borrowers will not,
and will not permit any of their respective Subsidiaries to, create, incur, assume or permit to exist
any Indebtedness, except:
(a)  Indebtedness created under the Loan Documents;
(a) the Obligations;
(b) Indebtedness existing on the Second Amendment Effective Date and set
forth in Schedule 7.01 and extensions, renewals and replacements of any such Indebtedness that
do not increase the outstanding principal amount thereof or result in an earlier maturity date or
decreased weighted average life thereof;
(c) Indebtedness of any Subsidiary Borrower to any other Subsidiary Borrower;
(d) Indebtedness of any Borrower to finance the acquisition or construction of
any fixed or capital assets, including Capital Lease Obligations and any Indebtedness assumed in
connection with the acquisition of any such assets or secured by a Lien on any such assets prior to
the  acquisition  thereof  (the  “Fixed  Capital  Asset  Debt”),  and  extensions,  renewals  and
replacements  of  such  Fixed  Capital  Asset  Debt  that  do  not  increase  the  outstanding  principal 

	
	
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amount thereof or result in an earlier maturity date or decreased weighted average life thereof,
provided that the aggregate principal amount of the Fixed Capital Asset Debt shall not exceed
$200,000,000 at any time outstanding;
(e) Indebtedness incurred to finance, refinance or otherwise monetize the value
of any Real Estate owned by any Borrower not otherwise permitted to be used as collateral for the
Fixed Capital Asset Debt; provided that the aggregate principal amount of Indebtedness permitted
by this clause (e) shall not exceed $500,000,000 750,000,000 at any time outstanding;
(f) Indebtedness under Hedging Agreements with any Lender or its Affiliates;
provided that no Hedging Agreement shall be entered into for speculative purposes;
(g) Guarantees  of  Indebtedness  incurred  in  connection  with  Permitted  Joint
Ventures, provided that at the time that such Guarantees are entered into, no Default or Event of
Default then exists or would result from the making of such Guarantees;
(h) Indebtedness  of  (A)  a  Person  that  becomes  a  Subsidiary  of  the  Parent
Borrower to the extent such Indebtedness exists at the time such Person becomes a Subsidiary and
is not created in contemplation of or in connection with such Person becoming a Subsidiary and
(B) a Subsidiary to the extent such Indebtedness is assumed in connection with an acquisition or
investment made by such Subsidiary and is not created in contemplation of such acquisition or
investment;  provided,  however,  that  such  Indebtedness  shall  not  be  guaranteed  by  any  other
Subsidiary; and
(i) other  unsecured  Indebtedness  in  an  aggregate  principal  amount  not
exceeding $100,000,000 at any time outstanding.
Notwithstanding anything to the contrary herein, (i) the Borrowers will not, and will not permit
any  of  their  respective  Subsidiaries  to,  create,  incur,  assume or  permit  to  exist  any  additional
Indebtedness  after  the  Second  Amendment  Effective  Date  (other  than  Indebtedness  incurred
pursuant to clauses (a), (b), (c) and (f) above) until the Deemed Borrowing Base Termination Date
has occurred and (ii) to the extent the Parent Borrower creates, incurs, assumes or permits to exist
any Indebtedness to finance the acquisition or construction of any fixed or capital asset, including
Capital Lease Obligations, or finance, refinance, or otherwise monetize  the value of  any Real
Estate, in  each  case,  on  or  after  the  Deemed  Borrowing  Base  Termination  Date, the  Parent
Borrower agrees to be bound by the caps on Indebtedness set forth in clauses (d) and (e) above.
Section 7.02 Liens.  The Borrowers will not, and will not permit any of their respective
Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or asset now
owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts
receivable) or rights in respect of any thereof, except:
(a) Permitted Encumbrances;
(b) any Lien on any property or asset of any Borrower set forth in Schedule
7.02, provided that (A) such Lien shall not apply to any other property or asset of any Borrower
and (B) such Lien shall secure only those obligations that it secures as of the Second Amendment 

	
	
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Effective  Date,  and  extensions,  renewals  and  replacements  thereof  that  do  not  increase  the
outstanding principal amount thereof;
(c) Liens on fixed or capital assets acquired by any Borrower, provided that (A)
such Liens secure Indebtedness permitted by clause (d) of Section 7.01, (B) such Liens and the
Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the
completion of such construction or improvement, (C) the Indebtedness secured thereby does not
exceed 100% of the cost of acquiring such fixed or capital assets and (D) such Liens shall not
apply to any other property or assets of the Borrowers;
(d) Liens  to  secure  Indebtedness  permitted  by clause (e) of Section 7.01;
provided that such Liens shall not apply to any property or assets of the Subsidiary Borrowers
other than the Real Estate so financed, refinanced or otherwise monetized or which is the subject
of a sale-leaseback transaction;
(e) deposits or pledges, or cash collateral given to any financial institution that
has  issued  a  letter  of  credit,  to  secure  payment  of  workers’  compensation,  unemployment
insurance,  old  age  pensions  or  other  social  security  or  employee  benefit  obligations,  daylight
overdraft  exposure  or  ACH  obligations,  or  liabilities under  or  in  respect  of  self-insurance
programs,  in  each  case  in  the  ordinary  course  of  business  of  the  Parent  Borrower  and  its
Subsidiaries;
(f) [Reserved];
(g) Liens  securing  Indebtedness  and  related  obligations  of  any  Subsidiary
which became a Subsidiary after the Second Amendment Effective Date if such Indebtedness and
Liens were outstanding prior to the time it became a Subsidiary and not incurred in contemplation
of its becoming a Subsidiary, and Liens on the same property (or, if such Lien attaches to a type
or class of property of any Person, on the same type or class of property of such Person) securing
Indebtedness and related obligations incurred by the same obligor to extend, renew, refinance,
refund or replace such Indebtedness or obligations so long as the outstanding principal thereof is
not increased; and
(h) Liens  created under  the pursuant  to  any Loan
DocumentsDocument.Notwithstanding anything to the contrary herein, the Borrowers will not,
and will not permit any of their respective Subsidiaries to, create, incur, assume or permit to exist
any additional Lien after the Second Amendment Effective Date on any property or asset now
owned or hereafter acquired by it, or assign or sell any additional income or revenues (including
accounts receivable) or rights in respect of any thereof, in each case, until the Deemed Borrowing
Base Termination Date has occurred, except as permitted by Sections 7.02(a), 7.02(b) and 7.02(h).
Without  limiting  the  provisions  of  this Section  7.02,  neither  the  Parent  Borrower  nor  its
Subsidiaries shall create, incur, assume or permit to exist any Lien (other than Liens incurred
pursuant to clause (a) and (b) of the definition of Permitted Encumbrances) on any Inventory now
owned or hereafter acquired by it other than in favor of the Agent.
Section 7.03 Fundamental Changes.  

	
	
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(a) The  Borrowers  and  their  respective  Subsidiaries  will  not  merge into  or
consolidate with any other Person, or permit any other Person to merge into or consolidate with it,
or liquidate or dissolve, except that, if at the time thereof  and immediately after giving effect
thereto, no Default shall have occurred and be continuing:
(i) any Subsidiary may merge, consolidate with, or liquidate or dissolve
into a Borrower in a transaction in which a Borrower is the surviving or continuing entity,
provided,  that,  no  Subsidiary  Borrower  shall  be  permitted  to  merge,  consolidate  with,
liquidate  or  dissolve  into  the  Parent  Borrower  unless  at  the  time of such merger,
consolidation,  liquidation  or  dissolution  into  the  Parent  Borrower, (x) the Excess
Availability Threshold is satisfied and (y) to the extent such Subsidiary Borrower owns
any Inventory that was included in the most recently delivered Borrowing Base Certificate
at  such  time,  then  (1)  the  Parent  Borrower  shall,  concurrently with  any  such  merger,
consolidation,  liquidation  or  dissolution,  deliver  a  revised  Borrowing  Base  Certificate
reflecting the removal of such Inventory from the Borrowing Base and (2) the aggregate
outstanding amount of the Credit Extension shall not exceed the lower of (A) the Total
Commitment then in effect or (B) the then amount of the Borrowing Base after giving
effect to such merger, liquidation or dissolution.
(ii) the Parent Borrower may merge with or consolidate with any other
Person (other than a Subsidiary Borrower) as long as the Parent Borrower is the surviving
or continuing entity;
(iii) any Subsidiary Borrower may merge, consolidate with, or liquidate
or dissolve into any Subsidiary in a transaction in which a Subsidiary that is not a Borrower
is  the  surviving  or  continuing  entity,  provided,  that  (x)(1)  at  the  time  of  such  merger,
consolidation, liquidation or dissolution, the Excess Availability Threshold is satisfied and
(2) to the extent such Subsidiary Borrower owns any Inventory that was included in the
most  recently  delivered  Borrowing  Base  Certificate  at  such  time,  then  (A)  the  Parent
Borrower  shall,  concurrently  with  any  such  merger,  consolidation,  liquidation  or
dissolution, deliver a revised Borrowing Base Certificate reflecting the removal of such
Inventory from the Borrowing Base and (B) the aggregate outstanding amount of the Credit
Extensions shall not exceed the lower of (A) the Total Commitment then in effect or (B)
the then amount of the Borrowing Base after giving effect to such merger, liquidation or
dissolution and (y) any such merger, consolidation, liquidation or dissolution involving a
Person  that  is  not  a  wholly  owned  Subsidiary  immediately  prior to  such  merger,
consolidation,  liquidation  or  dissolution  shall  not  be  permitted  if  such  merger,
consolidation,  liquidation  or  dissolution  would  constitute  an  Investment  prohibited  by
Section 7.10;
(iv) any Subsidiary that is not a Borrower may merge, consolidate with,
liquidate or dissolve into any other Subsidiary that is not a Borrower, provided that any
such  merger,  consolidation,  liquidation  or  dissolution  involving  a  Person  that  is  not  a
wholly owned Subsidiary immediately prior to such merger, consolidation, liquidation or
dissolution shall not be permitted if such merger, consolidation, liquidation or dissolution
would constitute an Investment prohibited by Section 7.10; and 

	
	
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(v) any  Investment  that  is  permitted  by Section  7.10  and  any
Disposition that is permitted by Section 7.05 may be structured as a merger, consolidation,
liquidation or dissolution.
(b) The  Borrowers  and  their  respective  Subsidiaries  will  not  engage  to  any
material extent in any business other than businesses of the type conducted by the Borrowers as of
the  Effective  Date  and  businesses  reasonably  related,  complementary,  synergistic  or  ancillary
thereto or reasonable extensions thereof.
Section 7.04 Restrictive Agreements.  The Parent Borrower will not, and will not permit
any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement
or  other  arrangement  that  prohibits,  restricts  or  imposes  any  condition  upon  (collectively,
“Restrictions”) (i) the ability of any Borrower to create, incur or permit to exist a first priority
Lien upon any of its Inventory securing its obligations hereunder, (ii) the ability of any Subsidiary
to pay dividends or similar distributions with respect to any shares of its capital stock (or similar
Equity Interests) or to make or repay loans or advances to an Borrower or (iii) the ability of any
wholly-owned Subsidiary to Guarantee any of the Guaranteed Obligations; provided that:
(a) the  foregoing  shall  not  apply  to  (A)  Restrictions  imposed  by  law,  rule,
regulation or order or by this Agreement or any other Loan Document, (B) Restrictions existing
on the Second Amendment Effective Date identified on Schedule 7.04 (but shall apply to any
amendment  or  modification  expanding  the  scope  of  any  such  Restrictions),  (C)  Restrictions
imposed by any agreement by which any Subsidiary is bound at the time such Subsidiary became
a Subsidiary, so long as such agreement was in effect at the time of such acquisition and was not
created in contemplation of such acquisition and such Restrictions only apply to such Subsidiary
(but shall apply to any amendment or modification expanding the scope of any such Restriction),
(D) customary Restrictions contained in agreements relating to the sale of a Subsidiary or assets
pending such sale, provided that (1) such Restrictions apply only to the Subsidiary or assets to be
sold and (2) such sale is permitted hereunder, (E) Restrictions on cash or other deposits under
contracts entered into in the ordinary course of business, (F) in the case of any Subsidiary that is
not a wholly-owned Subsidiary of the Parent Borrower, Restrictions imposed by its organizational
documents or any related joint venture or similar agreement, provided that such Restrictions apply
only  to  such  Subsidiary  and  to  any  Equity  Interests  in  such  Subsidiary,  and  (G)  Restrictions
customarily contained in lease agreements or agreements not relating to Indebtedness, in each case,
entered into by the Parent Borrower or any Subsidiary in the ordinary course of business; and
(b) clause (i) of the foregoing shall not apply to customary provisions in leases
and other contracts restricting the assignment thereof.
Section 7.05 Asset Sales.
(a) The Subsidiary Borrowers and their respective Subsidiaries will not sell,
transfer,  lease  or  otherwise  dispose  of  any  asset,  including  any  Equity  Interests,  nor  will  any
Subsidiary Borrower issue any additional shares of its Equity Interests, except: 

	
	
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(i) (A) sales of Inventory in the ordinary course of business, or (B) used
or surplus equipment, or (C) Permitted Investments, in each case in the ordinary course of
business;
(ii) sales,  transfers  and  dispositions  among  the  Borrowers  and  their
respective  Subsidiaries  (excluding,  however,  any  sales,  transfers  and  dispositions  of
Inventory and other Collateral or proceeds thereof, from any Subsidiary Borrower except
to another Subsidiary Borrower), provided that any such sales, transfers or dispositions
involving  a  Subsidiary  that  is  not  a  Borrower  shall  be  made  in compliance  with
Section 7.07 and further provided that within five (5) Business Days after consummation
of such sale, transfer or disposition, the provisions of Section 6.13(c) shall be satisfied, if
applicable;
(iii) sales of Minority Interests in the Equity Interests of any Subsidiary;
provided  that  (A)  no  Event  of  Default  has  occurred  and  is  continuing  or  would  arise
therefrom and (B) no Change in Control would result therefrom;
(iv) sales of real and personal property in connection with the closure of
any store location to the extent such property is not, in the Parent Borrower’s reasonable
judgment, necessary for the continued conduct of the Subsidiary Borrowers’ business; and
(v) sales of real property with a value not to exceed $25,000,000 for
cash in an aggregate amount not less than the fair market value of such property to the
extent that the proceeds of such sale are used to fund working capital and other general
corporate purposes of the Subsidiary Borrowers and their respective Subsidiaries;
provided that all sales, transfers, leases and other dispositions permitted hereby shall be made at
arm’s length and for fair value and solely for cash consideration (other than sales, transfers and
other dispositions among Borrowers permitted under clause (ii)); and further provided that the
authority  granted  hereunder  may  be  terminated  in  whole  or  in  part  by  the  Agent  upon  the
occurrence and during the continuance of any Event of Default;
(b) (i) The Parent Borrower will not sell, transfer, lease or otherwise dispose of
receipts from credit card processors of the Subsidiary Borrowers or the Parent Borrower except
among the Parent Borrower and the Subsidiary Borrowers;
(ii) The Parent Borrower will not, after the occurrence and during the
continuation of an Event of Default, sell, transfer, lease or otherwise dispose of any asset
(including  any  Equity  Interests  or  the  issuance  of  any  additional  shares  of  its  Equity
Interests unless done in accordance with Section 7.05(b)(iii) below), except:
(A) (1) sales of assets in the ordinary course of business, or (2)
used  or  surplus  equipment,  or  (3)  Permitted  Investments,  in  each  case  in  the
ordinary course of business;
(B) sales, transfers and dispositions among the Parent Borrower
and the Subsidiary Borrowers; and 

	
	
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(C) other  sales,  transfers,  or  dispositions  of  assets  not  in  the
ordinary course of business; provided that such sales do not exceed ten percent of
the book value of all of the consolidated tangible assets of the Parent Borrower as
of the date of such Event of Default; and
(D) sales of real and personal property in connection with the
closure  of  any  store  location  to  the  extent  such  property  is  not,  in  the  Parent
Borrower’s reasonable judgment, necessary for the continued conduct of the Parent
Borrower’s business;
(iii) The  Parent  Borrower  may  sell  additional  shares  of  its  Equity
Interests and any Minority Interests in the Equity Interests of any Subsidiary; provided that
(A) no Event of Default has occurred and is continuing or would result therefrom, (B) no
Change in Control would result therefrom and (C) all sales permitted hereby shall be made
at arm’s length and for fair value.
(c) Sections 7.05(a) and (b) will not prohibit the sale, transfer, lease or other
disposition (collectively, a “Disposition”) of any asset (other than Inventory and receipts from
credit  card  processors  of  the  Subsidiary  Borrowers  or  the  Parent  Borrower  Blocked  Account
which, for the avoidance of doubt, may be disposed of only in accordance with Sections 7.05(a)
and (b)) if, on the date on which such Disposition is consummated and after giving effect thereto,
(i) no Default or Event of Default shall exist immediately prior to or after giving effect to such
Disposition and (ii) the Excess Availability Threshold is satisfied.
Notwithstanding anything to the contrary herein, the Borrowers and their respective Subsidiaries
will not sell, transfer, lease or otherwise dispose of any asset, including any Equity Interests, nor
will any Borrower issue any additional shares of its Equity Interests, in each case, after the Second
Amendment Effective Date until the Deemed Borrowing Base Termination Date has occurred,
except as permitted by Sections 7.05(a)(i), (a)(ii), (a)(v), (b)(ii)(A), (b)(ii)(B) and (b)(iii).
Section 7.06 Restricted Payments; Certain Payments of Indebtedness.
(a) The Borrowers will not declare or make, or agree to pay or make, directly
or indirectly, any Restricted Payment, except:
(i) the Borrowers may declare and pay dividends with respect to their
Equity Interests in additional shares of their Equity Interests;
(ii) the  Subsidiary  Borrowers  may  declare  and  pay  dividends  with
respect to their Equity Interests in cash or in other property (other than Inventory) so long
as (A) no Default or Event of Default then exists or, after giving effect to such dividend,
would arise, and (B) on the date of and after giving effect to such dividend, the Excess
Availability Threshold is satisfied;
(iii) the Parent Borrower may declare and pay dividends with respect to
its Equity Interests in cash or in other property (other than Inventory) so long as (A) no
Event of Default exists or would arise, and (B) on the date of and after giving effect to such
dividend,  the  Excess  Availability  Threshold  is  satisfied;provided  that,  notwithstanding 

	
	
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anything to the contrary herein, the Parent Borrower may declare and pay dividends with
respect to its Equity Interests in cash for the fiscal quarters ending on or about May 4, 2020
and August 3, 2020 in an aggregate amount not to exceed $4,000,000 in each fiscal quarter;
(iv) the  Parent  Borrower  may  repurchase  its  Equity  Interests  (a
“Repurchase”) as long as (A) no Event of Default then exists or, after giving effect to such
Repurchase, would arise, and (B) on the date of and after giving effect to such Repurchase,
the Excess Availability Threshold is satisfied.
(b) The  Borrowers  will  not  at  any  time,  and  will  not  permit  any  of their
Subsidiaries  to  make  or  agree  to  pay  or  make,  directly  or  indirectly,  any  payment  or  other
distribution (whether in cash securities or other property) of or in respect of principal of or interest
on any Indebtedness, or any payment or other distribution (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any Indebtedness, except:
(i) required  payments  of  principal  and  interest  as  and  when  due  in
respect of any Indebtedness permitted under Section 7.01;
(ii) refinancings  of  Indebtedness  to  the  extent  permitted  by
Section 7.01; and
(iii) optional  prepayments,  redemptions,  retirements,  acquisition,
cancellation  or  termination  of  Indebtedness  of  any  Borrower  (collectively,  a
“Prepayment”) as long as (A) no Default or Event of Default then exists or, after giving
effect to such Prepayment, would arise; and (B) on the date of and after giving effect to
such Prepayment, the Excess Availability Threshold is satisfied.
(c) After the occurrence and during the continuation an Event of Default under
Section 8.01(h) or Section 8.01(i) hereof, the Parent Borrower will not at any time, make or agree
to pay or make, directly or indirectly any payment or other distribution (whether in cash securities
or other property) of or in respect of principal of or interest on any Indebtedness, or any payment
or other distribution (whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Indebtedness, except required payments of principal and interest as and when
due  in  respect  of  any  permitted  Indebtedness  and  refinancings  of  Indebtedness  to  the  extent
permitted by Section 7.01.
Notwithstanding anything to the contrary herein, the Borrowers will not (i) declare or make, or
agree to pay or make, directly or indirectly, any Restricted Payment after the Second Amendment
Effective  Date  until  the  Deemed  Borrowing  Base  Termination  Date  has  occurred,  except  as
permitted by Section 7.06(a)(i) and the proviso to Section 7.06(a)(iii), and (ii) at any time, and
will not permit any of their Subsidiaries to make or agree to pay or make, directly or indirectly,
any payment or other distribution (whether in cash securities or other property) of or in respect of
principal of or interest on any Indebtedness, or any payment or other distribution (whether in cash,
securities  or  other  property),  including  any  sinking  fund  or  similar  deposit,  on  account  of  the
purchase,  redemption,  retirement,  acquisition,  cancellation  or termination  of  any  Indebtedness 

	
	
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after the Second Amendment Effective Date until the Deemed Borrowing Base Termination Date
has occurred, except as permitted by Sections 7.06(b)(i) and (b)(ii).
Section 7.07 Transactions with Affiliates.  The Subsidiary Borrowers will not at any
time, and the Parent Borrower will not after the occurrence and during the continuation of an Event
of Default sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise
acquire any property or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) transactions in the ordinary course of business that are at prices and on terms
and conditions not less favorable to the Borrowers than could be obtained on an arm’s-length basis
from unrelated third parties, (b) transactions between or among the Borrowers and their respective
Subsidiaries not involving any other Affiliate, which would not otherwise violate the provisions
of the Loan Documents, and (c) other transactions otherwise permitted under this Agreement.
Section 7.08 Fixed Charge Coverage Ratio.  The Borrowers will not permit the Fixed
Charge Coverage Ratio to be less than 1.0:1.0; provided, that this covenant shall only be applicable
to the extent Excess Availability is ever less than $100,000,000 or an 80,000,000 or a Specified
Event of Default has occurred and is continuing (a “Trigger Period”); provided, further, that once
applicable,  this  covenant  will  be  tested  for  the  fiscal  quarter  most  recently  ended  for  which
financial statements have been (or were required to be) provided pursuant to Section 6.01(a) or
Section 6.01(b) (an “Initial FCCR Test Period”) on the date Excess Availability is less than
$100,000,000 or an 80,000,000 or a Specified Event of Default has occurred and is continuing,
and this covenant shall continue to be applicable and tested as of the end of each fiscal quarter
ending thereafter until (x) the date that Excess Availability has been greater than $100,000,000
80,000,000 at all times for ninety sixty (9060) consecutive calendar days, and (y) no Default or
Event of Default then exists or has existed during such ninety sixty (9060) consecutive calendar
day period.  To the extent this covenant shall be applicable as set forth above, within two (2)
Business Days of its becoming applicable, the Borrowers shall deliver to the Agent a certificate of
a Financial Officer, in form and substance acceptable to the Agent, setting forth and certifying to
reasonably detailed calculations of the Fixed Charge Coverage Ratio for such Initial FCCR Test
Period demonstrating compliance (or non compliance) with this Section 7.08 for such period.
Section 7.09 Subsidiaries.  The Borrowers shall not form, acquire, or cause to be formed
a Material Subsidiary or permit any Subsidiary to become a Material Subsidiary, unless and until
any such Material Subsidiary enters into a joinder agreement in accordance with the terms of, and
to the extent required by, Section 6.13(a) hereof.  The Borrowers shall not permit Subsidiaries
which are not then Subsidiary Borrowers to collectively own property of the same type as the
Collateral that has an aggregate book value in excess of $1,000,000.
Section 7.10 Investments,  Loans,  Advances,  Guarantees  and  Acquisitions.    The
Borrowers and their respective Subsidiaries will not purchase, hold or acquire (including pursuant
to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any
Equity Interests, evidences of indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to,
guarantee any obligations of, or make or permit to exist any investment or any other interest in,
any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions)
any assets of any other Person constituting a business unit (the foregoing collectively referred to
as “Investments”), except for: 

	
	
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(a) Permitted Investments;
(b) Investments  existing  on  the  Second  Amendment  Effective  Date,  and set
forth on Schedule 7.10, to the extent such investments would not be permitted under any other
clause of this Section;
(c) Investments  existing  on  the  Second  Amendment  Effective  Date  in any
Borrower or any Subsidiary (including the Specified Subsidiaries) of a Borrower;
(d) loans  or  advances  and  other  investments  by  any  Borrower  to  any other
Borrower or by any Subsidiary to any Borrower;
(e) Investments received in connection with the bankruptcy or reorganization
of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case
in the ordinary course of business;
(f) loans or advances to employees for the purpose of travel, entertainment or
relocation in the ordinary course of business;
(g) Investments  in  wholly  owned  Subsidiaries  which  are  not  Borrowers
(including the Specified Subsidiaries) in an amount not to exceed, in the aggregate after the Second
Amendment Effective Date, (i) $50,000,000, plus (ii) such additional amounts as the Borrowers
may determine, as long as on the date of and after giving effect to such Investment, the Excess
Availability  Threshold  is  satisfied;  provided  that  no  such  Investment may be made after the
occurrence and during the continuance of an Event of Default or if an Event of Default would arise
therefrom;
(h) Guaranties of Indebtedness permitted under Section 7.01;
(i) Investments  in  Permitted  Joint  Ventures,  provided  that  at  the  time  that
commitments to make such Investments become binding, no Default or Event of Default exists or
would result from the making of such Investment;
(j) acquisitions of real property assets with an aggregate value not to exceed
$10,000,000 so long as no Default or Event of Default shall have occurred and be continuing or
would result from the consummation of the proposed acquisition; and
(k) other Investments so long as at the time such Investment is made (i) no
Default  or  Event  of  Default  shall  exist  immediately  prior  to  or  after  giving  effect  to  such
Investment and (ii) the Excess Availability Threshold is satisfied.
Notwithstanding anything to the contrary herein, the Borrowers and their respective Subsidiaries
will not make any additional Investments after the Second Amendment Effective Date until the
Deemed Borrowing Base Termination Date has occurred, except as permitted by Section 7.10(d)
and Section 7.10(j). 

	
	
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ARTICLE VIII

EVENTS OF DEFAULT
Section 8.01 Events of Default.  If any of the following events (“Events of Default”)
shall occur:
(a) the  Borrowers  shall  fail  to  pay any principal  of  any  Loan  or  any
reimbursement obligation in respect of any LC Disbursement when and as the same shall become
due and payable, whether at the due date thereof or at a date fixed  for prepayment  thereof  or
otherwise;
(b) the Borrowers shall fail to pay any interest on any Loan or any fee or any
other amount (other than an amount referred to in clause (a) of this Article) payable under this
Agreement  or  any  other  Loan  Document  within  three  (3)  Business Days  after  the  same  shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof
or otherwise;
(c) any representation or warranty made or deemed made by or on behalf of
any  Borrower  in  or  in  connection  with  this  Agreement  or  any  other  Loan  Document  or  any
amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report,
certificate, financial statement or other document furnished pursuant to or in connection with this
Agreement or any other Loan Document or any amendment or modification hereof or thereof or
waiver hereunder or thereunder, shall prove to have been incorrect in any material respect when
made or deemed made;
(d) the Borrowers shall (i) fail to observe or perform any covenant, condition
or agreement contained in Section 2.24, Section 6.02(a), Section 6.04 (with respect to the Parent
Borrower’s  existence), Section 6.09(b), Section 6.11, Section  6.13, Section 6.14  or  in
Article VII, (ii) fail to observe or perform any covenant, condition or agreement contained in
Section 6.01(e) and such failure shall continue unremedied for a period of five (5) days after the
earlier of any Borrower’s knowledge of such breach or notice thereof from the Agent to the Parent
Borrower or (iii) fail to observe or perform any covenant, condition or agreement contained in
Section 6.07 or Section 6.09(a) and such failure shall continue unremedied for a period of three
(3) days after the earlier of any Borrower’s knowledge of such breach or notice thereof from the
Agent to the Parent Borrower;
(e) any Borrower shall fail to observe or perform any covenant, condition or
agreement contained in any Loan Document (other than those specified in clause (a), (b), (c), or
(d) of this Article), and such failure shall continue unremedied for a period of thirty (30) days after
the earlier of any Borrower’s knowledge of such breach or notice thereof from the Agent (which
notice will be given at the request of any Lender) to the Parent Borrower;
(f) any  Borrower  shall  fail  to  make  any  payment  (whether  of  principal  or
interest and regardless of amount) in respect of any Material Indebtedness when and as the same
shall become due and payable (after giving effect to the expiration of any grace or cure period set
forth therein); provided that any such failure with respect to any such Material Indebtedness that 

	
	
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is being contested in good faith by appropriate proceedings shall not constitute an Event of Default
as long as any Borrower’s title to any substantial part of its property is not materially adversely
affected, its use of such property in the ordinary course of business is not materially interfered with
and adequate reserves with respect thereto have been set aside on its books in conformity with
GAAP;
(g) any event or condition occurs that results in any Material Indebtedness (i)
becoming due or required to be prepaid, repurchased, redeemed or defeased or (ii) in the case of
any Hedging Agreement, terminated, in each case, prior to its scheduled maturity or that enables
or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of
any Material Indebtedness (other than in respect of any Hedging Agreement) or any trustee or
agent on its or their behalf to cause any such Material Indebtedness to become due, or to require
the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
provided that this clause (g) shall not apply to (A) secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the property or assets securing such Indebtedness to the
extent such sale or transfer is permitted by Section 7.05 or (B) any Indebtedness that becomes due
as a result of a voluntary refinancing thereof by any Borrower or any of its Subsidiaries or, in the
case of any Indebtedness in respect of a Hedging Agreement, a voluntary termination thereof by
any Borrower or any of its Subsidiaries;
(h) an involuntary proceeding shall be commenced or an involuntary petition
shall be filed seeking (i) liquidation, reorganization or other relief in respect of any Borrower or
any of its Material Subsidiaries or its debts, or of a substantial part of its assets, under any federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or
(ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for any Borrower or any of its Material Subsidiaries or for a substantial part of its assets, and, in
any such case, such proceeding or petition shall continue undismissed for a period of 60 or more
days or an order or decree approving or ordering any of the foregoing shall be entered;
(i) any  Borrower  or  any  of  its  Material  Subsidiaries  shall  (i)  voluntarily
commence any proceeding or file any petition seeking liquidation, reorganization or other relief
under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate
manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent
to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
any Borrower or any of its Material Subsidiaries or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any such proceeding, (v)
make a general assignment for the benefit of creditors or (vi) take any action for the purpose of
effecting any of the foregoing;
(j) any Borrower or any of its Material Subsidiaries shall become unable, admit
in writing its inability or fail generally to pay its debts as they become due;
(k) one or more judgments for the payment of money in an aggregate amount
in excess of $75,000,000 shall be rendered against any Borrower or any of its Subsidiaries or any
combination thereof and the same shall remain undischarged for a period of 60 consecutive days
during which execution shall not be effectively stayed, or any action shall be legally taken by a 

	
	
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judgment creditor to attach or levy upon any assets of any Borrower or any of its Subsidiaries to
enforce any such judgment;
(l) an ERISA Event shall have occurred that when, taken together with all other
ERISA Events that have occurred, would reasonably be expected to result in a Material Adverse
Effect;
(m) (i) any challenge by or on behalf of any Borrower to the validity of any Loan
Document or the applicability or enforceability of any Loan Document strictly in accordance with
the subject Loan Document’s terms or which seeks to void, avoid, limit, or otherwise adversely
affect any security interest (other than with respect to an immaterial portion of the Collateral (taken
as a whole) not of the type included in the Borrowing Base or accounts receivable) created by or
in any Loan Document or any payment made pursuant thereto.
(ii) any challenge by or on behalf of any other Person to the validity of
any Loan Document or the applicability or enforceability of any Loan Document strictly
in accordance with the subject Loan Document’s terms or which seeks to void, avoid, limit,
or otherwise adversely affect any security interest (other than with respect to an immaterial
portion of the Collateral (taken as a whole) not of the type included in the Borrowing Base
or accounts receivable) created by or in any Loan Document or any payment made pursuant
thereto, in each case, as to which an order or judgment has been entered adverse to the
Agent and the Lenders.
(iii) any Lien (other than with respect to an immaterial portion of the
Collateral (taken as a whole) not of the type included in the Borrowing Base or accounts
receivable) purported to be created under any Security Document shall cease to be, or shall
be asserted by any Borrower not to be, a valid and perfected Lien on any Collateral, with
the priority required by the applicable Security Document, except as a result of the sale or
other disposition of the applicable Collateral in a transaction permitted under the Loan
Documents;
(n) a Change in Control shall occur;
(o) the Loan Guaranty shall fail to remain in full force or effect with respect to
any  Loan  Guarantor  or  any  action  shall  be  taken  to  discontinue or to assert the invalidity or
unenforceability of the Loan Guaranty, or any Loan Guarantor shall fail to comply with any of the
terms or provisions of the Loan Guaranty, or any Loan Guarantor shall deny that it has any further
liability under the Loan Guaranty, or shall give notice to such effect;
(p) the  occurrence  of  any  uninsured  loss  to  any  material  portion  of the
Collateral; provided  that,  for  the  avoidance  of  doubt,  a  self-insurance  program  maintained  in
accordance with Section 6.07(a) shall constitute insurance for purposes of this clause (p);
(q) the indictment of, or institution of any legal process or proceeding against,
any  Borrower,  under  any  federal,  state,  municipal,  and  other  civil  or  criminal  statute,  rule,
regulation,  order,  or  other  requirement  having  the  force  of  law where the relief, penalties, or
remedies sought or available include the forfeiture of any material property of any Borrower and/or
the imposition of any stay or other order, the effect of which could reasonably be to restrain in any 

	
	
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material way the conduct by the Borrowers, taken as a whole, of their business in the ordinary
course; or
(r) except as otherwise permitted hereunder, the determination by the Parent
Borrower, whether by vote of the Parent Borrower’s board of directors or otherwise to: (i) suspend
the operation of the Borrowers’ business in the ordinary course except to the extent required in
accordance with applicable law or as required or requested by any Governmental Authority, (ii)
liquidate all or a material portion of the assets or store locations of all of the Borrowers (taken as
a whole), or (iii) employ an agent or other third party to conduct any so called store closing, store
liquidation or “Going Out Of Business” sales for all or a material portion of the assets or store
locations of all of the Borrowers (taken as a whole);
then, and in every such event (other than an event with respect to any Borrower or any of its
Material  Subsidiaries  described  in clause (h) or (i)  of  this  Article),  and at  any  time  thereafter
during the continuance of such event, the Agent may, and at the request of the Required Lenders
shall, by notice to the Parent Borrower, take either or both of the following actions, at the same or
different times:  (i) terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in
part, in which case any principal not so declared to be due and payable may thereafter be declared
to be due and payable), and thereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and all fees and other obligations of the Borrowers accrued
hereunder, shall become due and payable immediately, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrowers; and (iii) require the
Borrowers  to  furnish  cash  collateral  in  an  amount  equal  to  103%  of  the  Letter  of  Credit
Outstandings,  and  in  case  of  any  event  with  respect  to  any  Borrower  or  any  of  its  Material
Subsidiaries described in clause (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrowers.
Section 8.02 When Continuing.
For all purposes under this Agreement, each Default and Event of Default that has occurred
shall be deemed to be continuing at all times thereafter unless it either (a) is cured or corrected to
the  reasonable  written  satisfaction  of  the  Lenders  in  accordance  with Section 10.02,  or  (b)  is
waived in writing by the Lenders in accordance with Section 10.02.
Section 8.03 Remedies on Default.
In case any one or more of the Events of Default shall have occurred and be continuing,
and whether or not the maturity of the Loans shall have been accelerated pursuant hereto, the Agent
may, and at the request of the Required Lenders shall, proceed to protect and enforce its rights and
remedies under this Agreement, the Notes or any of the other Loan Documents by suit in equity,
action  at  law  or  other  appropriate  proceeding,  whether  for  the specific  performance  of  any
covenant  or  agreement  contained  in  this  Agreement  and  the  other  Loan  Documents  or  any
instrument  pursuant  to  which  the  Obligations  are  evidenced,  and,  if  such  amount  shall  have 

	
	
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become due, by declaration or otherwise, proceed to enforce the payment thereof or any other legal
or equitable right of the Agent or the Lenders.  No remedy herein is intended to be exclusive of
any other remedy and each and every remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or now or hereafter existing at law or in equity or by statute or any
other provision of law.
ARTICLE IX

THE AGENT
Section 9.01 Authorization and Action.
(a) Each Lender, on behalf of itself and any of its Affiliates that are Secured
Parties , and an each Issuing Lender hereby irrevocably appoints the entity named as Agent in the
heading of this Agreement and its successors and assigns to serve as the administrative agent and
collateral agent under the Loan Documents and each Lender and each Issuing Lender authorizes
the  Agent  to  take  such  actions  as  agent  on  its  behalf  and  to  exercise  such  powers  under  this
Agreement and the other Loan Documents as are delegated to the Agent under such agreements
and to exercise such powers as are reasonably incidental thereto.  In addition, to the extent required
under the laws of any jurisdiction other than within the United States, each Lender and each Issuing
Lender hereby grants to the Agent any required powers of attorney to execute and enforce any
Security Document governed by the laws of such jurisdiction on such Lender’s or such Issuing
Lender’s behalf.  Without limiting the foregoing, each Lender and each Issuing Lender hereby
authorizes the Agent to execute and deliver, and to perform its obligations under, each of the Loan
Documents to which the Agent is a party, and to exercise all rights, powers and remedies that the
Agent may have under such Loan Documents.
(b) As to any matters not expressly provided for herein and in the other Loan
Documents (including enforcement or collection), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the written instructions of the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the
terms in the Loan Documents), and, unless and until revoked in writing, such instructions shall be
binding upon each Lender and each Issuing Lender; provided, however, that the Agent shall not
be required to take any action that (i) the Agent in good faith believes exposes it to liability unless
the Agent receives an indemnification and is exculpated in a manner satisfactory to it from the
Lenders and the Issuing Lenders with respect to such action or (ii) is contrary to this Agreement
or any other Loan Document or applicable law, including any action that may be in violation of
the  automatic  stay  under  any  requirement  of  law  relating  to  bankruptcy,  insolvency  or
reorganization or relief of debtors or that may effect a forfeiture, modification or termination of
property of a Defaulting Lender in violation of any requirement of law relating to bankruptcy,
insolvency  or  reorganization  or  relief  of  debtors;  provided,  further,  that  the  Agent  may  seek
clarification or direction from the Required Lenders prior to the exercise of any such instructed
action and may refrain from acting until such clarification or direction has been provided. Except
as expressly set forth in the Loan Documents, the Agent shall not have any duty to disclose, and
shall  not  be  liable  for  the  failure  to  disclose,  any  information  relating  to  any  Borrower,  any
Subsidiary or any Affiliate of any of the foregoing that is communicated to or obtained by the 

	
	
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Person serving as Agent or any of its Affiliates in any capacity.  Nothing in this Agreement shall
require the Agent to expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall
have reasonable grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it.
(c) In performing its functions and duties hereunder and under the other Loan
Documents, the Agent is acting solely on behalf of the Lenders and the Issuing Lenders (except in
limited circumstances expressly provided for herein relating to the maintenance of the Register),
and its duties are entirely mechanical and administrative in nature.  Without limiting the generality
of the foregoing:
(i) the Agent does not assume and shall not be deemed to have assumed
any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for
any Lender, any Issuing Lender or any other Secured Party or holder of any other obligation
other than as expressly set forth herein and in the other Loan Documents, regardless of
whether  a  Default  or  an  Event  of  Default  has  occurred  and  is  continuing  (and  it  is
understood and agreed that the use of the term “agent” (or any similar term) herein or in
any  other  Loan  Document  with  reference  to  the  Agent  is  not  intended  to  connote  any
fiduciary duty or other implied (or express) obligations arising under agency doctrine of
any applicable law, and that such term is used as a matter of market custom and is intended
to  create  or  reflect  only  an  administrative  relationship  between  contracting  parties);
additionally, each Lender agrees that it will not assert any claim against the Agent based
on an alleged breach of fiduciary duty by the Agent in connection with this Agreement
and/or the transactions contemplated hereby; and
(ii) nothing in this Agreement or any Loan Document shall require the
Agent to account to any Lender for any sum or the profit element of any sum received by
the Agent for its own account.
(d) The Agent may perform any of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents appointed
by the Agent.  The Agent and any such sub-agent may perform any of their respective duties and
exercise  their  respective  rights  and  powers  through  their  respective  Related  Parties.    The
exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties
of the Agent and any such sub-agent, and shall apply to their respective activities pursuant to this
Agreement.  The Agent shall not be responsible for the negligence or misconduct of any sub-agent
except to the extent that a court of competent jurisdiction determines in a final and non-appealable
judgment that the Agent acted with gross negligence or willful misconduct in the selection of such
sub-agent.
(e) None of any Syndication Agent, any Documentation Agent or any Arranger
shall have obligations or duties whatsoever in such capacity under this Agreement or any other
Loan Document and shall incur no liability hereunder or thereunder in such capacity, but all such
persons shall have the benefit of the indemnities provided for hereunder. 

	
	
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(f) In case of the pendency of any proceeding with respect to any Borrower
under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter  in  effect,  the  Agent  (irrespective  of  whether  the  principal  of  any  Loan  or  any
reimbursement obligation in respect of any LC Disbursement shall then be due and payable as
herein expressed or by declaration or otherwise and irrespective of whether the Agent shall have
made  any  demand  on  any  Borrower)  shall  be  entitled  and  empowered  (but  not  obligated)  by
intervention in such proceeding or otherwise:
(i) to file and prove a claim for the whole amount of the principal and
interest  owing  and  unpaid  in  respect  of  the  Loans,  LC  Disbursements  and  all  other
Obligations  that  are  owing  and  unpaid  and  to  file  such  other  documents  as  may  be
necessary or advisable in order to have the claims of the Lenders, the Issuing Lenders and
the Agent (including any claim under Sections 2.10, 2.11, 2.12, 2.13, 2.26, 2.28 and 10.04)
allowed in such judicial proceeding; and
(ii) to  collect  and  receive  any  monies  or  other  property  payable  or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in
any such proceeding is hereby authorized by each Lender, each Issuing Lender and each other
Secured Party to make such payments to the Agent and, in the event that the Agent shall consent
to the making of such payments directly to the Lenders, the Issuing Lenders or the other Secured
Parties, to pay to the Agent any amount due to it, in its capacity as the Agent, under the Loan
Documents  (including  under Section 10.04).    Nothing  contained  herein  shall  be  deemed  to
authorize the Agent to authorize or consent to or accept or adopt on behalf of any Lender or Issuing
Lender  any  plan  of  reorganization,  arrangement,  adjustment  or  composition  affecting  the
Obligations or the rights of any Lender or Issuing Lender or to authorize the Agent to vote in
respect of the claim of any Lender or Issuing Lender in any such proceeding.
(g) The provisions of this Article are solely for the benefit of the Agent, the
Lenders and the Issuing Lenders, and, except solely to the extent of the Borrowers’ right to consent
pursuant to and subject to the conditions set forth in this Article, no Borrower nor any Subsidiary,
or any of their respective Affiliates, shall have any rights as a third party beneficiary under any
such  provisions.    Each  Secured  Party,  whether  or  not  a  party  hereto,  will  be  deemed,  by  its
acceptance of the benefits of the Collateral and of the Guarantees of the Obligations provided
under the Loan Documents, to have agreed to the provisions of this Article.
Section 9.02 Administrative Agent’s  Reliance, IndemnificationLimitation  of
Liability, Etc..
(a) Neither the Agent nor any of its Related Parties shall be (i) liable for any
action taken or omitted to be taken by such party, the Agent or any of its Related Parties under or
in connection with this Agreement or the other Loan Documents (x) with the consent of or at the
request of the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the
circumstances  as  provided  in  the  Loan  Documents)  or  (y)  in  the absence of its own gross
negligence or willful misconduct (such absence to be presumed unless otherwise determined by a 

	
	
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court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any
manner to any of the Lenders for any recitals, statements, representations or warranties made by
any Borrower or any officer thereof contained in this Agreement or any other Loan Document or
in any certificate, report, statement or other document referred to or provided for in, or received
by the Agent under or in connection with, this Agreement or any other Loan Document or for the
value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other  Loan  Document (including,  for  the  avoidance  of  doubt,  in  connection  with  the Agent’s
reliance on any Electronic Signature transmitted by facsimile, emailed pdf. or any other electronic
means that reproduces an image of an actual executed signature page) or for any failure of any
Borrower to perform its obligations hereunder or thereunder.
(b) The Agent shall be deemed not to have knowledge of any (i) notice of any
of the events or circumstances set forth or described in Section 6.02 unless and until written notice
thereof stating that it is a “Notice under Section 6.02” in respect of this Agreement and identifying
the specific clause under said Section is given to the Agent by the Parent Borrower or (ii) notice
of any Default or Event of Default unless and until written notice thereof (stating that it is a “notice
of default”) Notice of Default” or a “Notice of an Event of Default”) is given to the Agent by the
Parent Borrower, a Lender or an Issuing Lender.  Further, and the Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made
in or in connection with any Loan Document, (ii) the contents of any certificate, report or other
document delivered thereunder or in connection therewith, (iii) the performance or observance of
any of the covenants, agreements or other terms or conditions set forth in any Loan Document or
the occurrence of any Default or Event of Default, (iv) the sufficiency, validity, enforceability,
effectiveness  or  genuineness  of  any  Loan  Document  or  any  other agreement,  instrument  or
document, (v) the satisfaction of any condition set forth in Article V or elsewhere in any Loan
Document, other than to confirm receipt of items (which on their face purport to be such items)
expressly required to be delivered to the Agent or satisfaction of any condition that expressly refers
to the matters described therein being acceptable or satisfactory to the Agent, or (vi) the creation,
perfection or priority of Liens on the Collateral;
(c) Without limiting the foregoing, the Agent (i) may treat the payee of any
promissory note as its holder until such promissory note has been assigned in accordance with
Section 10.06, (ii) may rely on the Register to the extent set forth in Section 10.06(c), (iii) may
consult with legal counsel (including counsel to the Borrowers), independent public accountants
and other experts selected by it, and shall not be liable for any action taken or omitted to be taken
in good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes
no warranty or representation to any Lender or Issuing Lender and shall not be responsible to any
Lender or Issuing Lender for any statements, warranties or representations made by or on behalf
of  any  Borrower  in  connection  with  this  Agreement  or  any  other Loan  Document,  (v)  in
determining compliance with any condition hereunder to the making of a Loan, or the issuance of
a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing
Lender, may presume that such condition is satisfactory to such Lender or Issuing Lender unless
the  Agent  shall  have  received  notice  to  the  contrary  from  such Lender  or  Issuing  Lender
sufficiently in advance of the making of such Loan or the issuance of such Letter of Credit and
(vi) shall be entitled to rely on, and shall incur no liability under or in respect of this Agreement
or any other Loan Document by acting upon, any notice, consent, certificate or other instrument
or writing (which writing may be a fax, any electronic message, Internet or intranet website posting 

	
	
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or other distribution) or any statement made to it orally or by telephone and believed by it to be
genuine and signed or sent or otherwise authenticated by the proper party or parties (whether or
not such Person in fact meets the requirements set forth in the Loan Documents for being the maker
thereof).
Section 9.03 Posting of Communications.
(a) The Borrowers agree that the Agent may, but shall not be obligated to, make
any  Communications  available  to  the  Lenders  and  the  Issuing  Lenders  by  posting  the
Communications  on  IntraLinksTM,  DebtDomain,  SyndTrak,  ClearPar  or  any  other  electronic
system chosen by the Agent to be its electronic transmission system (the “Approved Electronic
Platform”).
(b) Although the Approved Electronic Platform and its primary web portal are
secured with generally-applicable security procedures and policies implemented or modified by
the  Agent  from  time  to  time  (including,  as  of  the  Second  Amendment  Effective  Date,  a  user
ID/password authorization system) and the Approved Electronic Platform is secured through a per-
deal authorization method whereby each user may access the Approved Electronic Platform only
on a deal-by-deal basis, each Lender, each Issuing Lender and each Borrower acknowledges and
agrees that the distribution of material through an electronic medium is not necessarily secure, that
the Agent is not responsible for approving or vetting the representatives or contacts of any Lender
that are added to the Approved Electronic Platform, and that there may be confidentiality and other
risks associated with such distribution.  Each Lender, each Issuing Lender and each Borrower
hereby approves distribution of the Communications through the Approved Electronic Platform
and understands and assumes the risks of such distribution.
(c) THE  APPROVED  ELECTRONIC  PLATFORM  AND  THE
COMMUNICATIONS  ARE  PROVIDED  “AS  IS”  AND  “AS  AVAILABLE”.  THE
APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY
OR  COMPLETENESS  OF  THE  COMMUNICATIONS,  OR  THE  ADEQUACY  OF  THE
APPROVED  ELECTRONIC  PLATFORM  AND  EXPRESSLY  DISCLAIM  LIABILITY  FOR
ERRORS  OR  OMISSIONS  IN  THE  APPROVED  ELECTRONIC  PLATFORM AND  THE
COMMUNICATIONS.  NO  WARRANTY  OF  ANY  KIND,  EXPRESS,  IMPLIED  OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR
A  PARTICULAR  PURPOSE,  NON-INFRINGEMENT  OF  THIRD  PARTY  RIGHTS  OR
FREEDOM  FROM  VIRUSES  OR  OTHER  CODE  DEFECTS,  IS  MADE  BY  THE
APPLICABLE  PARTIES  IN  CONNECTION  WITH  THE  COMMUNICATIONS  OR  THE
APPROVED  ELECTRONIC  PLATFORM.  IN  NO  EVENT  SHALL  THE  AGENT,  ANY
ARRANGER, ANY DOCUMENTATION AGENT, ANY SYNDICATION AGENT OR ANY
OF  THEIR  RESPECTIVE  RELATED  PARTIES  (COLLECTIVELY,  “APPLICABLE
PARTIES”) HAVE ANY LIABILITY TO ANY BORROWER, ANY LENDER, ANY ISSUING
LENDER  OR  ANY  OTHER  PERSON  OR  ENTITY  FOR  DAMAGES  OF  ANY  KIND,
INCLUDING  DIRECT  OR  INDIRECT,  SPECIAL,  INCIDENTAL  OR  CONSEQUENTIAL
DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE)
ARISING  OUT  OF  ANY  BORROWER’S  OR  THE  AGENT’S  TRANSMISSION  OF
COMMUNICATIONS  THROUGH  THE  INTERNET  OR  THE  APPROVED  ELECTRONIC
PLATFORM. 

	
	
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“Communications”  means,  collectively,  any  notice,  demand,  communication,
information, document or other material provided by or on behalf of any Borrower pursuant to any
Loan Document or the transactions contemplated therein which is distributed by the Agent, any
Lender or any Issuing Lender by means of electronic communications pursuant to this Section,
including through an Approved Electronic Platform.
(d) Each Lender and Issuing Lender agrees that notice to it (as provided in the
next  sentence)  specifying  that  Communications  have  been  posted to  the  Approved  Electronic
Platform shall constitute effective delivery of the Communications to such Lender for purposes of
the Loan Documents.  Each Lender and Issuing Lender agrees (i) to notify the Agent in writing
(which could be in the form of electronic communication) from time to time of such Lender’s or
Issuing Lender’s (as  applicable) e-mail address to which the foregoing notice may be sent by
electronic transmission and (ii) that the foregoing notice may be sent to such e-mail address.
(e) Each Lender, each Issuing Lender and each Borrower agrees that the Agent
may,  but  (except  as  may  be  required  by  applicable  law)  shall  not  be  obligated  to,  store  the
Communications on the Approved Electronic Platform in accordance with the Agent’s generally
applicable document retention procedures and policies.
(f) Nothing herein shall prejudice the right of the Agent, any Lender or any
Issuing Lender to give any notice or other communication pursuant to any Loan Document in any
other manner specified in such Loan Document.
Section 9.04 The  Agent  Individually.    With  respect  to  its  Commitment,  Loans
(including Swingline Loans) and Letters of Credit, the Person serving as the Agent shall have and
may exercise the same rights and powers hereunder and is subject to the same obligations and
liabilities as and to the extent set forth herein for any other Lender or Issuing Lender, as the case
may be.  The terms “Issuing Lenders”, “Lenders”, “Required Lenders”, “Required Supermajority
Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include the
Agent in its individual capacity as a Lender, Issuing Lender or as one of the Required Lenders or
Required Supermajority Lenders, as applicable.  The Person serving as the Agent and its Affiliates
may accept deposits from, lend money to, own securities of, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of banking, trust or other business
with, any Borrower, any Subsidiary or any Affiliate of any of the foregoing as if such Person was
not acting as the Agent and without any duty to account therefor to the Lenders or the Issuing
Lenders.
Section 9.05 Successor Agent.
(a) The Agent may resign at any time by giving thirty (30) days’ prior written
notice  thereof  to  the  Lenders,  the  Issuing  Lenders  and  the  Parent Borrower, whether or not a
successor Agent has been appointed.  Upon any such resignation, the Required Lenders shall have
the right,  to appoint a successor Agent.  If no successor Agent shall have been so appointed by
the Required Lenders , and shall have accepted such appointment , within thirty (30) days after the
retiring Agent’s giving of notice of resignation, then the retiring Agent may, on behalf of the
Lenders and the Issuing Lenders, appoint a successor Agent , which shall be a bank with an office
in the United States of America or an Affiliate of any such bank.  In either case, such appointment 

	
	
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shall be subject to the prior written approval of the Parent Borrower (which approval may not be
unreasonably withheld and shall not be required while an Event of Default has occurred and is
continuing).    Upon  the  acceptance  of  any  appointment  as  Agent  by  a  successor  Agent,  such
successor Agent shall succeed to and become vested with, all the rights, powers, privileges and
duties of the retiring Agent.  Upon the acceptance of appointment as Agent by a successor Agent,
the retiring Agent shall be discharged from its duties and obligations under this Agreement and
the other Loan Documents.  Prior to any retiring Agent’s resignation hereunder as Agent, the
retiring Agent shall take such action as may be reasonably necessary to assign to the successor
Agent its rights as Agent under the Loan Documents.
(b) Notwithstanding paragraph (a) of this Section, in the event no successor
Agent shall have been so appointed and shall have accepted such appointment within thirty (30)
days after the retiring Agent gives notice of its intent to resign, the retiring Agent may give notice
of  the  effectiveness  of  its  resignation  to  the  Lenders,  the  Issuing  Lender  and  the  Borrowers,
whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring
Agent shall be discharged from its duties and obligations hereunder and under the other Loan
Documents; provided that, solely for purposes of maintaining any security interest granted to the
Agent under any Security Document for the benefit of the Secured Parties, the retiring Agent shall
continue to be vested with such security interest as collateral agent for the benefit of the Secured
Parties and continue to be entitled to the rights set forth in such Security Document and Loan
Document, and, in the case of any Collateral in the possession of the Agent, shall continue to hold
such Collateral, in each case until such time as a successor Agent is appointed and accepts such
appointment in accordance with this Section (it being understood and agreed that the retiring Agent
shall have no duty or obligation to take any further action under any Security Document, including
any action required to maintain the perfection of any such security interest), and (ii) the Required
Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent until such time as the Required Lenders appoint a successor Agent as provided
for in paragraph (a) of this Section; provided that (A) all payments required to be made hereunder
or under any other Loan Document to the Agent for the account of any Person other than the Agent
shall be made directly to such Person and (B) all notices and other communications required or
contemplated to be given or made to the Agent shall directly be given or made to each Lender and
Issuing Lender.  Following the effectiveness of the Agent’s resignation from its capacity as such,
the  provisions  of  this  Article, Section 2.28(d)  and Section 10.04,  as  well  as  any  exculpatory,
reimbursement  and  indemnification  provisions  set  forth  in  any  other  Loan  Document,  shall
continue in effect for the benefit of such retiring Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them while the retiring
Agent  was  acting  as  Agent  and  in  respect  of  the  matters  referred  to  in  the  proviso  under
paragraph (a) above.
Section 9.06 Acknowledgment of Lenders and Issuing Lenders.
(a) Each Lender and each Issuing Lender represents that and warrants that (i)
the  Loan  Documents  set  forth  the  terms  of  a  commercial  lending facility, (ii) it is engaged in
making, acquiring or holding commercial loans and in providing other facilities set forth herein as
may be applicable to such Lender or Issuing Lender, in each case, in the ordinary course of its
business and that , and not for the purpose of purchasing, acquiring or holding any other type of
financial instrument (and each Lender and each Issuing Lender agrees not to assert a claim in 

	
	
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contravention of the foregoing), (iii) it has, independently and without reliance upon the Agent,
any Arranger, any Syndication Agent, any Documentation Agent, or any other Lender or Issuing
Lender, or any of the Related Parties of any of the foregoing, and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement as a Lender, and to make, acquire or hold Loans hereunder.  Each  and (iv) it is
sophisticated  with  respect  to  decisions  to  make,  acquire  and/or  hold  commercial  loans  and  to
provide  other  facilities  set  forth  herein,  as  may  be  applicable  to  such  Lender  or  such  Issuing
Lender, and either it, or the Person exercising discretion in making its decision to make, acquire
and/or hold such commercial loans or to provide such other facilities, is experienced in making,
acquiring or holding such commercial loans or providing such other facilities.  Each Lender and
each Issuing Lender also acknowledges that it will, independently and without reliance upon the
Agent, any Arranger, any Syndication Agent, any Documentation Agent, or any other Lender or
Issuing Lender, or any of the Related Parties of any of the foregoing, and based on such documents
and information (which may contain material, non-public information within the meaning of the
United States securities laws concerning the Borrowers and their Affiliates) as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not taking action under
or  based  upon  this  Agreement,  any  other  Loan  Document  or  any  related  agreement  or  any
document furnished hereunder or thereunder.
(b) Each Lender, each Issuing Lender and each Swingline Lender by delivering
its signature page to this Agreement on the Effective Date, or delivering its signature page to an
Assignment and Assumption or any other Loan Document pursuant to which it shall become a
Lender  hereunder,  shall  be  deemed  to  have  acknowledged  receipt of,  and  consented  to  and
approved,  each  Loan  Document  and  each  other  document  required  to  be  delivered  to,  or  be
approved by or satisfactory to, the Agent or the Lenders on the Effective Date or the effective date
of any such Assignment and Assumption or any other Loan Document pursuant to which it shall
have become a Lender hereunder.
(c) Each Lender hereby agrees that (i) it has requested a copy of each Report
prepared by or on behalf of the Agent; (ii) the Agent (A) makes no representation or warranty,
express or implied, as to the completeness or accuracy of any Report or any of the information
contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall
not be liable for any information contained in any Report; (iii) the Reports are not comprehensive
audits or examinations, and that any Person performing any field examination will inspect only
specific  information  regarding  the  Borrowers  and  will  rely  significantly  upon  the  Borrowers’
books and records, as well as on representations of the Borrowers’ personnel and that the Agent
undertakes no obligation to update, correct or supplement the Reports; (iv) it will keep all Reports
confidential and strictly for its internal use, not share the Report with any Borrower or any other
Person except as otherwise permitted pursuant to this Agreement; and (v) without limiting the
generality of any other indemnification provision contained in this Agreement, (A) it will hold the
Agent and any such other Person preparing a Report harmless from any action the indemnifying
Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in
connection with any extension of credit that the indemnifying Lender has made or may make to a
Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase
of, a Loan or Loans; and (B) it will pay and protect, and indemnify, defend, and hold the Agent
and any such other Person preparing  a Report harmless from and against, the claims, actions,
proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys’ fees) 

	
	
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incurred by the Agent or any such other Person as the direct or indirect result of any third parties
who might obtain all or part of any Report through the indemnifying Lender.
Section 9.07 Collateral Matters.
(a) Except  with  respect  to  the  exercise  of  setoff  rights  in  accordance  with
Section 10.10 or with respect to a Secured Party’s right to file a proof of claim in an insolvency
proceeding, no Secured Party shall have any right individually to realize upon any of the Collateral
or to enforce any Guarantee of the Obligations, it being understood and agreed that all powers,
rights and remedies under the Loan Documents may be exercised solely by the Agent on behalf of
the  Secured  Parties  in  accordance  with  the  terms  thereof.    In  its  capacity,  the  Agent  is  a
“representative” of the Secured Parties within the meaning of the term “secured party” as defined
in  the  UCC.    In  the  event  that  any  Collateral  is  hereafter  pledged by  any Person as collateral
security  for  the  Obligations,  the  Agent  is  hereby  authorized,  and hereby granted a power of
attorney, to execute and deliver on behalf of the Secured Parties any Loan Documents necessary
or appropriate to grant and perfect a Lien on such Collateral in favor of the Agent on behalf of the
Secured Parties.
(b) In  furtherance  of  the  foregoing  and  not  in  limitation  thereof, no
arrangements in respect of Hedging Agreements or other Bank Products the obligations under
which constitute Obligations, will create (or be deemed to create) in favor of any Secured Party
that is a party thereto any rights in connection with the management or release of any Collateral or
of the obligations of any Borrower under any Loan Document.  By accepting the benefits of the
Collateral,  each  Secured  Party  that  is  a  party  to  any  such  arrangement  in  respect  of  Hedging
Agreements or other Bank Products, as applicable, shall be deemed to have appointed the Agent
to serve as administrative agent and collateral agent under the Loan Documents and agreed to be
bound by the Loan Documents as a Secured Party thereunder, subject to the limitations set forth
in this paragraph.
(c) The Secured Parties irrevocably authorize the Agent, at its option and in its
discretion, to subordinate any Lien on any property granted to or held by the Agent under any Loan
Document to the holder of any Lien on such property that is permitted by Section 7.02(a).  The
Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or
warranty regarding the existence, value or collectability of the Collateral, the existence, priority or
perfection of the Agent’s Lien thereon or any certificate prepared by any Borrower in connection
therewith, nor shall the Agent be responsible or liable to the Lenders or any other Secured Party
for any failure to monitor or maintain any portion of the Collateral.
Section 9.08 Credit  Bidding.    The  Secured  Parties  hereby  irrevocably  authorize  the
Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations
(including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations
pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly
or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale
thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363,
1123 or 1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a
Borrower is subject, or (b) at any other sale, foreclosure or acceptance of collateral in lieu of debt
conducted by (or with the consent or at the direction of) the Agent (whether by judicial action or 

	
	
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otherwise) in accordance with any applicable law.  In connection with any such credit bid and
purchase, the Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit
bid by the Agent at the direction of the Required Lenders on a ratable basis (with Obligations with
respect to contingent or unliquidated claims receiving contingent interests in the acquired assets
on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to
the liquidated portion of the contingent claim amount used in allocating the contingent interests)
for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition
vehicle or vehicles that are issued in connection with such purchase).  In connection with any such
bid (i) the Agent shall be authorized to form one or more acquisition vehicles and to assign any
successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties’ ratable
interests in the Obligations which were credit bid shall be deemed without any further action under
this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale,
(iii) the  Agent  shall  be  authorized  to  adopt  documents  providing  for  the  governance  of  the
acquisition  vehicle  or  vehicles  (provided  that  any  actions  by  the  Agent  with  respect  to  such
acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof,
shall be governed, directly or indirectly, by, and the governing documents shall provide for, control
by the vote of the Required Lenders or their permitted assignees under the terms of this Agreement
or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be,
irrespective of the termination of this Agreement and without giving effect to the limitations on
actions by the Required Lenders contained in Section 10.02 of this Agreement), (iv) the Agent on
behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured
Parties, ratably on account of the relevant Obligations which were credit bid, interests, whether as
equity, partnership interests, limited partnership interests or membership interests, in any such
acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need
for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that
Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any
reason  (as  a  result  of  another  bid  being  higher  or  better,  because  the  amount  of  Obligations
assigned to the acquisition vehicle exceeds the amount of Obligations credit bid by the acquisition
vehicle or otherwise), such Obligations shall automatically be reassigned to the Secured Parties
pro  rata  with  their  original  interest  in  such  Obligations  and  the  equity  interests  and/or  debt
instruments issued by any acquisition vehicle on account of such Obligations shall automatically
be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further
action.  Notwithstanding that the  ratable portion of the Obligations of each Secured Party are
deemed  assigned  to  the  acquisition  vehicle  or  vehicles  as  set  forth  in clause (ii)  above,  each
Secured Party shall execute such documents and provide such information regarding the Secured
Party (and/or any designee of the Secured Party which will receive interests in or debt instruments
issued by such acquisition vehicle) as the Agent may reasonably request in connection with the
formation  of  any  acquisition  vehicle,  the  formulation  or  submission  of  any  credit  bid  or  the
consummation of the transactions contemplated by such credit bid.
Section 9.09 Certain ERISA Matters.
(a) Each Lender (x) represents and warrants, as of the date such Person became
a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party
hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Agent,
and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the
benefit of any Borrower, that at least one of the following is and will be true: 

	
	
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(i) such Lender is not using “plan assets” (within the meaning of the
Plan  Asset  Regulations)  of  one  or  more  Benefit  Plans  with  respect  to  such  Lender’s
entrance into, participation in, administration of and performance of the Loans, the Letters
of Credit, the Commitments or this Agreement,
(ii) the transaction exemption set forth in one or more PTEs, such as
PTE 84-14 (a class exemption for certain transactions determined by independent qualified
professional  asset  managers),  PTE  95-60  (a  class  exemption  for certain  transactions
involving insurance company general accounts), PTE 90-1 (a class exemption for certain
transactions involving insurance company pooled separate accounts), PTE 91-38 (a class
exemption for certain transactions involving bank collective investment funds) or PTE 96-
23 (a class exemption for certain transactions determined by in-house asset managers), is
applicable with respect to such Lender’s entrance into, participation in, administration of
and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,
(iii) (A) such Lender is an investment fund managed by a “Qualified
Professional  Asset  Manager”  (within  the  meaning  of  Part  VI  of  PTE  84-14),  (B)  such
Qualified Professional Asset Manager made the  investment decision on  behalf of such
Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit,
the  Commitments  and  this  Agreement,  (C)  the  entrance  into,  participation  in,
administration of and performance of the Loans, the Letters of Credit, the Commitments
and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of
PTE  84-14  and  (D)  to  the  best  knowledge  of  such  Lender,  the  requirements  of
subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance
into, participation in, administration of and performance of the Loans, the Letters of Credit,
the Commitments and this Agreement, or
(iv) such other representation, warranty and covenant as may be agreed
in writing between the Agent, in its sole discretion, and such Lender.
(b) In addition, unless sub-clause (i) in the immediately preceding clause (a)
is true with respect to a Lender or such Lender has provided another representation, warranty and
covenant  as provided in sub-clause (iv) in the immediately preceding clause (a),  such  Lender
further (x) represents and warrants, as of the date such Person became a Lender party hereto, to,
and (y) covenants, from the date such Person became a Lender party hereto to the date such Person
ceases being a Lender party hereto, for the benefit of, the Agent, and each Arranger and their
respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of any Borrower,
that none of the Agent, any Arranger, any Syndication Agent, any Documentation Agent, or any
of their respective Affiliates is a fiduciary with respect to the Collateral or the assets of such Lender
(including in connection with the reservation or exercise of any rights by the Agent under this
Agreement, any Loan Document or any documents related to hereto or thereto).
(c) The  Agent  and  each  Arranger,  Syndication  Agent  and  Documentation
Agent hereby inform the Lenders that each such Person is not undertaking to provide investment
advice or to give advice in a fiduciary capacity, in connection with the transactions contemplated
hereby, and that such Person has a financial interest in the transactions contemplated hereby in that
such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the 

	
	
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Loans, the Letters of Credit, the Commitments, this Agreement and any other Loan Documents,
(ii) may recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an
amount less than the amount being paid for an interest in the Loans, the Letters of Credit or the
Commitments by such Lender or (iii) may receive fees or other payments in connection with the
transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees,
commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees,
agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees,
letter  of  credit  fees,  fronting  fees,  deal-away  or  alternate  transaction  fees,  amendment  fees,
processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination
fees or fees similar to the foregoing.
Section 9.10 Flood Laws.  JPMorgan has adopted internal policies and procedures that
address requirements placed on federally regulated lenders under the National Flood Insurance
Reform Act of 1994 and related legislation (the “Flood Laws”).  JPMorgan, as administrative
agent or collateral agent on a syndicated facility, will post on the applicable electronic platform
(or otherwise distribute to each Lender in the syndicate) documents that it receives in connection
with the Flood Laws.  However, JPMorgan reminds each Lender and Participant in the facility
that, pursuant to the Flood Laws, each federally regulated Lender (whether acting as a Lender or
Participant in the facility) is responsible for assuring its own compliance with the flood insurance
requirements.
Section 9.11 Acknowledgements with Respect to Payments.
(a) Each Lender hereby agrees that (x) if the Agent notifies such Lender that
the Agent has determined in its sole discretion that any funds received by such Lender from the
Agent  or  any  of  its  Affiliates  (whether  as  a  payment,  prepayment  or  repayment  of  principal,
interest,  fees  or  otherwise;  individually  and  collectively,  a  “Payment”)  were  erroneously
transmitted to such Lender (whether or not known to such Lender), and demands the return of such
Payment (or a portion thereof), such Lender shall promptly, but in no event later than one (1)
Business Day thereafter, return to the Agent the amount of any such Payment (or portion thereof)
as to which such a demand was made in same day funds, together with interest thereon in respect
of each day from and including the date such Payment (or portion thereof) was received by such
Lender to the date such amount is repaid to the Agent at the greater of the NYFRB Rate and a rate
determined by the Agent in accordance with banking industry rules on interbank compensation
from time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall
not assert, and hereby waives, as to the Agent, any claim, counterclaim, defense or right of set-off
or recoupment with respect to any demand, claim or counterclaim by the Agent for the return of
any Payments received, including without limitation any defense based on “discharge for value”
or any similar doctrine.  A notice of the Agent to any Lender under this Section 9.11 shall be
conclusive, absent manifest error.
(b) Each Lender hereby further agrees that if it receives a Payment from the
Agent or any of its Affiliates (x) that is in a different amount than, or on a different date from, that
specified in a notice of payment sent by the Agent (or any of its Affiliates) with respect to such
Payment (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice,
it shall be on notice, in each such case, that an error has been made with respect to such Payment.
Each Lender agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion 

	
	
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thereof)  may  have  been  sent  in  error,  such  Lender  shall  promptly  notify  the  Agent  of  such
occurrence and, upon demand from the Agent, it shall promptly, but in no event later than one (1)
Business Day thereafter, return to the Agent the amount of any such Payment (or portion thereof)
as to which such a demand was made in same day funds, together with interest thereon in respect
of each day from and including the date such Payment (or portion thereof) was received by such
Lender to the date such amount is repaid to the Agent at the greater of the NYFRB Rate and a rate
determined by the Agent in accordance with banking industry rules on interbank compensation
from time to time in effect.
(c) The Borrowers hereby agree that (x) in the event an erroneous Payment (or
portion thereof) are not recovered from any Lender that has received such Payment (or portion
thereof) for any reason, the Agent shall be subrogated to all the rights of such Lender with respect
to such amount and (y) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise
satisfy any Obligations owed by the Borrowers, except, in each case, to the extent such erroneous
Payment  (or  any  portion  thereof)  is,  and  solely  with  respect  to  the  amount  of  such  erroneous
Payment that is, comprised of funds of a Borrower.
(d) Each  party’s  obligations  under  this Section  9.11  shall  survive  the
resignation  or  replacement  of  the  Agent  or  any  transfer  of  rights  or  obligations  by,  or  the
replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or
discharge of all Obligations under any Loan Document.
ARTICLE X

MISCELLANEOUS
Section 10.01 Notices.
(a) Except in the case of notices and other communications expressly permitted
to be given by telephone or Electronic Systems (and subject in each case to paragraph (b) below),
all notices and other communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy or
other electronic transmission, as follows:
(i) if to any Borrower, to it at Dillard’s, Inc., 1600 Cantrell Road, Little
Rock, Arkansas 72201, Attention: Chris Johnson, Principal Financial Officer (Telecopy
No. (501) 399-7502; E-mail: chris.johnson@dillards.com);
(ii) if to the Agent or to JPMorgan as an Issuing Lender or a Swingline
Lender  to  JPMorgan  Chase  Bank,  N.A.,  2200  Ross  Avenue,  9th  Floor,  Dallas,  Texas
75201,  Attention:  Credit  Risk  Manager/Portfolio  Manager  of  Dillard’s,  Inc.  (Telecopy
No. (214)  965-2594;  E-mail:  arpan.x.patel@jpmorgan.com),  with  a  copy  to  Vinson  &
Elkins  L.L.P.,  Trammell  Crow  Center,  2001  Ross  Avenue,  Suite  3900,  Dallas,  Texas
75201,  Attention:  Erec  R.  Winandy  (Telecopy  No. (214)  999-7756; E-mail:
ewinandy@velaw.com);  

	
	
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(iii) if to any other Lender, to it at its address (or telecopy number) set
forth on its Administrative Questionnaire or on any Assignment and Assumption for such
Lender.
Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto.  All such notices and other communications given
to  any  party  hereto  in  accordance  with  the  provisions  of  this  Agreement (A)  sent  by  hand  or
overnight courier service, or mailed by certified or registered mail, shall be deemed to have been
given on the date of receiptwhen received, (B) sent by facsimile shall be deemed to have been
given when sent, provided that if not given during normal business hours of the recipient, such
notice or communication shall be deemed to have been given at the opening of business on the
next Business Day of the recipient, or  (C) delivered through Electronic  Systems or Approved
Electronic  Platforms,  as  applicable,  to  the  extent  provided  in paragraph  (b)  below  shall  be
effective as provided in such paragraph.
(b) Notices and other communications to any Borrower, the Lenders and the
Issuing Lenders hereunder may be delivered or furnished by using Electronic Systems or Approved
Electronic Platforms, as applicable, or pursuant to procedures approved by the Agent; provided
that  the  foregoing  shall  not  apply  to  notices  pursuant  to Article II  or  to  certificates  delivered
pursuant to Section 6.01(e) unless otherwise agreed by the Agent and the applicable Lender.  Each
of the Agent and the Parent Borrower (on behalf of the Borrowers) may, in its discretion, agree to
accept  notices  and  other  communications  to  it  hereunder  by  Electronic  Systems  or  Approved
Electronic Platforms, as applicable, pursuant to procedures approved by it; provided that approval
of such procedures may be limited to particular notices or communications.  Unless the Agent
otherwise proscribes, all such notices and other communications (i) sent to an e-mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient
(such as by the “return receipt requested” function, as available, return e-mail or other written
acknowledgement), provided that if not given during the normal business hours of the recipient,
such notice or communication shall be deemed to have been given at the opening of business on
the next Business Day for the recipient, and (ii) posted to an Internet or intranet website shall be
deemed  received  upon  the  deemed  receipt  by  the  intended  recipient,  at  its  e-mail  address  as
described in the foregoing clause (i), of notification that such notice or communication is available
and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if
such notice, e-mail or other communication is not sent during the normal business hours of the
recipient,  such  notice  or  communication  shall  be  deemed  to  have  been  sent  at  the  opening  of
business on the next Business Day of the recipient.
Section 10.02 Waivers; Amendments.
(a) No Deemed Waivers; Remedies Cumulative.  No failure or delay by the
Administrative  Agent,  any  Issuing  Lender  or  any  Lender  in  exercising  any  right  or  power
hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of any
other right or power.  The rights and remedies of the Administrative Agent, the Issuing Lenders
and  the  Lenders  hereunder  and  under  the  other  Loan  Documents  are  cumulative  and  are  not
exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision 

	
	
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of  this  Agreement  or  any  other  Loan  Document  or  consent  to  any departure  by  any  Obligor
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of
this Section, and then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given.  Without limiting the generality of the foregoing, the execution
and delivery of this Agreement, the making of a Loan or the issuance of a Letter of Credit shall
not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any
Lender or any Issuing Lender may have had notice or knowledge of such Default at the time.
(b) Amendments.    Except  as  provided  for  in Sections  2.09, 2.16  and 2.20,
neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be
waived, amended or modified except pursuant to an agreement or agreements in writing entered
into  by  the  Parent  Borrower  and  the  Required  Lenders  or  by  the Parent  Borrower  and  the
Administrative Agent with the consent of the Required Lenders; provided that no such agreement
shall:
(i) increase the Commitment of any Lender without the written consent
of such Lender,
(ii) reduce  the  principal  amount  of  any  Loan  or  LC  Disbursement
outstanding to any Lender or reduce the rate of interest thereon (except in connection with
the  waiver  of  applicability  of  any  post-default  increase  in  interest  rates  pursuant  to
Section 2.13(d)), or reduce any fees payable to any Lender hereunder, without the written
consent of such Lender,
(iii) postpone the scheduled date of payment of the principal amount of
any Loan or LC Disbursement outstanding to any Lender, or any interest thereon, or any
fees payable to any Lender hereunder, or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment of any Lender,
without the written consent of such Lender,
(iv) change Section 2.18(b), 2.18(c) or 2.18(d) in a manner that would
alter the pro rata sharing of payments required thereby without the written consent of each
Lender directly and adversely affected thereby,
(v) subordinate the Obligations or the Liens granted under the Security
Documents  to  any  other  Indebtedness,  Lien  or  other  obligations,  as  the  case  may  be,
without the written consent of each Lender,
(vi) (v)change any of the provisions of this Section or the percentage in
the definition of the term “Required Lenders” or any other provision hereof specifying the
number or percentage of Lenders required to waive, amend or modify any rights hereunder
or make any determination or grant any consent hereunder, without the written consent of
each Lender directly and adversely affected thereby, or
(vii) (vi)release all or substantially all of the Subsidiary Loan Guarantors
from  their  guarantee  obligations  under Article III  without  the  written  consent  of  each
Lender, and 

	
	
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provided, further, that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent, any Issuing Lender or any Swingline Lender hereunder without
the prior written consent of the Administrative Agent, such  Issuing Lender or such Swingline
Lender, as the case may be.
Notwithstanding  the  foregoing  (but  subject  to  the  immediately  preceding  proviso),  (A)  any
amendment of the definition of the term “Applicable Rate” pursuant to the last sentence of such
definition shall require only the written consent of the Parent Borrower and the Required Lenders,
(B) no consent with respect to any amendment, waiver or other modification of this Agreement
shall be required of any Defaulting Lender, except with respect to any amendment, waiver or other
modification referred to in clause (i), (ii) or (iii) of the first proviso of this paragraph and then only
in the event such Defaulting Lender shall be directly affected by such amendment, waiver or other
modification,  (CB)  the Administrative  Agent  may  enter  into  one  or  more  security agreements
(including mortgages and pledge agreements) in connection with any grant of a security interest
securing Indebtedness under this Agreement as contemplated by Sections 7.02(h) and 7.04 without
the consent of any Lender and (DC) this Agreement may be amended (or amended and restated)
with  the  written  consent  of  the  Required  Lenders,  the  Administrative  Agent  and  the  Parent
Borrower (x) to add one or more additional credit facilities to this Agreement and to permit the
extensions of credit from time to time outstanding thereunder and the accrued interest and fees in
respect thereof to share in the benefits of this Agreement and the other Loan Documents and (y)
to  include  appropriately  the  Lenders  holding  such  credit  facilities  in  any  determination  of  the
Required Lenders.
Notwithstanding  the  foregoing,  the  Parent  Borrower,  Administrative  Agent  and  the  Issuing
Lenders may (i) reallocate the LC Sublimits among the Issuing Lenders without any further action
or consent of any other party to any Loan Document and (ii) the Parent Borrower, Administrative
Agent and any Issuing Lender may agree to increase or decrease the LC Sublimit of such Issuing
Lender.  The Administrative Agent shall promptly confirm to the Parent Borrower, the Issuing
Lenders and the Lenders the amount and the effective date of the revised sublimits.
(c) Administrative Agent Execution.  The Administrative Agent may, but shall
have no obligation to, with the written concurrence of any Lender, execute amendments, waivers
or other modifications on behalf of such Lender.  Any amendment, waiver or other modification
effected in accordance with this Section 10.02 shall be binding upon each Person that is at the time
thereof a Lender and each Person that subsequently becomes a Lender.
Section 10.03 Special Amendment Rules.
(a) Notwithstanding  anything  to  the  contrary  contained  herein,  no  such
agreement shall (i) change Section 6.02 of the Security Agreement or Section 6.02 of the Pledge
Agreement in a manner that would alter the pro rata sharing of payments required thereby, without
the written consent of each Lender directly and adversely affected thereby (other than a Defaulting
Lender),  (ii) change  any  of  the  provisions  of  this Section 10.03(a) or Section 10.03(b) or the
definition  of  the  term  “Required  Supermajority  Lenders”  without  the  written  consent  of  each
Lender directly and adversely affected thereby (other than a Defaulting Lender), (iii) except as
provided in Section 10.03(c) below or in any Security Document, release all or substantially all of
the Collateral or subordinate the Obligations hereunder, or the Liens granted hereunder or under 

	
	
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the other Loan Documents, to any other Indebtedness or Lien, or permit any Liens on the Collateral
in favor of any other Person, which Liens are pari passu with the Liens of the Agent under the
Security Documents, as the case may be, without the prior written consent of each Lender (other
than any Defaulting Lender), (iv) any increase in the advance rates set forth in the definition of the
term “Borrowing Base”, without the prior written consent of each Lender (other than a Defaulting
Lender), (v) except for the release of a Subsidiary Borrower in connection with a transaction that
is  expressly  permitted  hereunder,  release  any  Borrower  from  its  obligations  under  any  Loan
Document, or limit its liability in respect of such Loan Document, without the written consent of
each Lender (other than a Defaulting Lender) or (vi) modify the definition of the term “Permitted
Overadvance” so as to increase the amount permitted under clause (b)(i) of such definition or,
except as provided in such definition, the time period for which a Permitted Overadvance may
remain outstanding without the written consent of each Lender (other than a Defaulting Lender).
(b) Notwithstanding  anything  to  the  contrary  contained  herein,  no  such
agreement  shall  (i) change  the  definition  of  the  term  “Borrowing  Base”  or  any  component
definition thereof (other than any increase in advance rates set forth in the definition of the term
“Borrowing Base”, which shall be subject to Section 10.03(a)), if as a result thereof the amounts
available to be borrowed by the Borrowers would be increased, provided that the foregoing shall
not limit the Permitted Discretion of the Agent to change, establish or eliminate any Reserves and
(ii) modify the Excess Availability Threshold set forth in Section 7.08, in each case, without the
written  consent  of  the  Required  Supermajority  Lenders  and  provided  further  that  no  such
agreement shall amend, modify or otherwise affect the rights or duties of the Agent, the Issuing
Lenders  or  the  Swingline  Lenders  without  the  prior  written  consent  of  the  Agent,  the  Issuing
Lenders or the Swingline Lenders, as the case may be.
(c) The  Lenders  and  the  Issuing  Lenders  hereby  irrevocably  authorize  the
Agent, at its option and in its sole discretion, to release any Liens granted to the Agent by the
Borrowers  on  any  Collateral  (i) upon  the  Payment  in  Full  of  all  Obligations,  and  the  cash
collateralization of all Unliquidated Obligations in a manner satisfactory to each affected Lender,
(ii) constituting property being sold or disposed of if the Borrower disposing of such property
certifies to the Agent that the sale or disposition is made in compliance with the terms of this
Agreement (and the Agent may rely conclusively on any such certificate, without further inquiry),
and to the extent that the property being sold or disposed of constitutes 100% of the Equity Interests
of a Subsidiary Borrower or the Subsidiary Borrower otherwise becomes an Excluded Subsidiary,
the Agent is authorized to release the Subsidiary Borrower and any Loan Guaranty provided by
such Subsidiary Borrower, (iii) constituting property leased to a Borrower under a lease which has
expired or been terminated in a transaction permitted under this Agreement, or (iv) as required to
effect any sale or other disposition of such Collateral in connection with any exercise of remedies
of  the  Agent  and  the  Lenders  pursuant  to Article VIII.    Except  as  provided  in  the  preceding
sentence, the Agent will not release any Liens on Collateral without the prior written authorization
of  the  Required  Lenders;  provided  that,  the  Agent  may  in  its  discretion,  release  its  Liens  on
Collateral valued in the aggregate not in excess of $5,000,000 during any calendar year without
the prior written authorization of the Required Lenders (it being agreed that the Agent may rely
conclusively on one or more certificates of the Borrowers as to the value of any Collateral to be so
released, without further inquiry).  Any such release shall not in any manner discharge, affect, or
impair  the  Obligations  or  any  Liens  (other  than  those  expressly  being  released)  upon  (or
obligations of the Borrowers in respect of) all interests retained by the Borrowers, including the 

	
	
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proceeds of any sale, all of which shall continue to constitute part of the Collateral.  Any execution
and delivery by the Agent of documents in connection with any such release shall be without
recourse to or warranty by the Agent.
(d) Notwithstanding anything to the contrary contained in this Section 10.03 or
in Section 10.02 above, in the event that the Borrowers request that this Agreement or any other
Loan Document be modified, amended or waived in a manner which would require the consent of
the  Lenders  pursuant  to Section 10.02(b), Section 10.03(a) or Section 10.03(b) and such
amendment  is  approved  by  the  Required  Lenders,  but  not  by  the  requisite  percentage  of  the
Lenders, the Borrowers, and the Required Lenders shall be permitted to amend this Agreement
without  the  consent  of  the  Lender  or  Lenders  which  did  not  agree  to  the  modification  or
amendment  requested  by  the  Borrowers  (such  Lender  or  Lenders,  collectively  the  “Minority
Lenders”) to provide for (w) the termination of the Commitment of each of the Minority Lenders,
(x) the addition to this Agreement of one or more other financial institutions, or an increase in the
Commitment of one or more of the Required Lenders, so that the aggregate Commitments after
giving  effect  to  such  amendment  shall  be  in the same  amount  as the  aggregate  Commitments
immediately before giving effect to such amendment, (y) if any Loans are outstanding at the time
of such amendment, the making of such additional Loans by such new or increasing Lender or
Lenders, as the case may be, as may be necessary to repay in full the outstanding Loans (including
principal, interest, and fees) of the Minority Lenders immediately before giving effect to such
amendment and (z) such other modifications to this Agreement or the Loan Documents as may be
appropriate and incidental to the foregoing.
(e) No notice to or demand on any Borrower shall entitle any Borrower to any
other or further notice or demand in the same, similar or other circumstances.  Each holder of a
Note shall be bound by any amendment, modification, waiver or consent authorized as provided
herein, whether or not a Note shall have been marked to indicate such amendment, modification,
waiver or consent and any consent by a Lender, or any holder of a Note, shall bind any Person
subsequently  acquiring  a  Note,  whether  or  not  a  Note  is  so  marked.    No  amendment  to  this
Agreement shall be effective against the Borrowers unless signed by the Borrowers.
(f) Notwithstanding anything to the contrary herein the Agent may, with the
consent of the Parent Borrower only, amend, modify or supplement this Agreement or any of the
other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.
Section 10.04 Expenses; Limitation  of  Liability; Indemnity; Damage  WaiverEtc.
(a) Expenses.  The Borrowers shall jointly and severally pay (i) all reasonable and documented
out-of-pocket  expenses  incurred  by  the  Agent  and  its  Affiliates,  including  the  reasonable  and
documented fees, charges and disbursements of counsel for the Agent, the Issuing Lenders and the
Lenders, taken as a whole, outside consultants for the Agent for appraisals and field examinations,
in connection with the syndication and distribution (including, without limitation, via the internet
or through any Electronic System or Approved Electronic Platform) of the credit facilities provided
for herein, the preparation and administration of the Loan Documents or and any amendments,
modifications or waivers of the provisions thereof (whether or not the transactions contemplated
hereby  or  thereby  shall  be  consummated),  (ii)  all  reasonable  and  documented  out-of-pocket
expenses incurred by the Issuing Lenders in connection with the issuance, amendment, renewal or
extension of any Letter of Credit or any demand for payment thereunder, and (iii) all reasonable 

	
	
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and documented out-of-pocket expenses incurred by the Agent, the Issuing Lenders or any Lender,
including the reasonable and documented fees, charges and disbursements of counsel and any
outside  consultants  for  the  Agent,  the  Issuing  Lenders  or  any  Lender,  for  appraisals,  field
examinations, and environmental site assessments, in connection with the enforcement , collection
or protection of its rights in connection with the Loan Documents, including its rights under this
Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all
such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit; provided that the Administrative Agent, the Collateral Agent,
the Issuing Lenders, the Second Amendment Arrangers and the Lenders, taken as a whole, shall
be  entitled  to  no  more  than  one  counsel  and,  if  necessary,  of  a  single  local  counsel  in  each
appropriate  jurisdiction  (which  may  include  a  single  special  counsel  acting  in  multiple
jurisdictions) for all such Persons, taken as a whole (absent a conflict of interest in which case such
affected person may engage and be reimbursed for additional counsel).
(b) Limitation of Liability.  To the extent permitted by applicable law, no party
hereto shall assert, and each party hereto hereby waives, any claim against any other party (i) for
any Liabilities arising from the use by others of information or other materials obtained through
telecommunications, electronic or other information transmission systems (including the Internet)
or  (ii)  on  any  theory  of  liability,  for  special,  indirect,  consequential  or  punitive  damages  (as
opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby or
thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided
that, nothing in this Section 10.04(b) shall relieve any Borrower of any obligation it may have to
indemnify an Indemnitee pursuant to Section 10.04(a) or (c) or any other expense reimbursement
or indemnity obligations of any Borrower set forth herein or under any other Loan Document.  No
Indemnitee shall be liable for any damages arising from the use by any recipient of any information
or other materials distributed by it through telecommunications, electronic or other information
transmission  systems,  except  to  the  extent  they  are  determined by  a  final  and  non-appealable
judgment  of  a  court  of  competent  jurisdiction  to  have  resulted from  the  bad  faith,  willful
misconduct or gross negligence of such Indemnitee or any of its Controlled Affiliates, Persons
under  common  Control  or  Controlling  Persons,  or  any  of  their  respective  officers,  directors,
employees, agents or advisors, or for any special, indirect, consequential or punitive damages in
connection with this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby
(c) (b)Indemnity.  The Borrowers shall, jointly and severally, indemnify the
Agent, each Arranger, each Syndication Agent, each Documentation Agent, each Issuing Lender
and each Lender, and each Related Party of any of the foregoing Persons (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, penalties, liabilities Liabilities and related expenses, including the reasonable
and  documented  fees,  charges  and  disbursements  of  counsel  for  the  Indemnitees  and  of  any
separate counsel that may be required in light of any conflicting interests among Indemnitees,
incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of
(i)  the  execution  or  delivery  of  any  Loan  Document  or  any  other  agreement  or  instrument
contemplated hereby, the performance by the parties to the Loan Documents of their respective
obligations  thereunder  or  the  consummation  of  the  transactions contemplated  by  the  Loan
Documents or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the 

	
	
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use of the proceeds therefrom (including any refusal by any Issuing Lender to honor a demand for
payment under a Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or
release of Hazardous Materials on or from any property currently or formerly owned or operated
by any Borrower or any of the Subsidiaries, or any Environmental Liability related in any way to
any Borrower or any of the Subsidiaries, (iv) the failure of a Borrower to deliver to the Agent the
required receipts or other required documentary evidence with respect to a payment made by a
Borrower for Taxes pursuant to Section 2.28, or (v) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not such claim, litigation,
investigation, arbitration or proceeding Proceeding relating to any of the foregoing, whether or not
such Proceeding is brought by any Borrower or their respective equity holders, Affiliates, creditors
or any other third Person and whether based on contract, tort or any other theory and regardless of
whether  any  Indemnitee  is  a  party  thereto,  provided  that  such  indemnity  shall  not,  as  to  any
Indemnitee,  be  available  to  the  extent  that  such losses,  claims,  damages,  penalties,  liabilities
Liabilities or related expenses are determined by a court of competent jurisdiction by final and
non-appealable judgment to have resulted from the gross negligence, bad faith, willful misconduct
or material breach of any obligation under any Loan Document of such Indemnitee or any Affiliate
of  such  Indemnitee  (or  of  any  Related  Party  of  such  Indemnitee or  any  such  Indemnitee’s
Affiliates).  This Section 10.04(b10.04(c) shall not apply with respect to Taxes other than any
Taxes that represent losses or damages arising from any non-Tax claim.
(d) (c)Lender  Reimbursement.   Each  Lender  severally  agrees  to  pay  any
amount required to be paid by any Borrower under paragraph (aparagraphs (a), (b) or (bc) of
this Section 10.04 to the Agent, each Issuing Lender and each Swingline Lender, and each Related
Party of any of the foregoing Persons (each, an “Agent Indemnitee-Related Person”) (to the
extent not reimbursed by a Borrower and without limiting the obligation of any Borrower to do
so), ratably according to their respective Commitment Percentage in effect on the date on which
indemnification such payment is sought under this Section (or, if indemnification such payment is
sought after the date upon which the Commitments shall have terminated and the Loans shall have
been paid in full, ratably in accordance with such Commitment Percentage immediately prior to
such date), and indemnify and hold harmless from and against any and all losses, claims, damages,
penalties, liabilities Liabilities and related expenses, including the fees, charges and disbursements
of any kind whatsoever that may at any time (whether before or after the payment of the Loans)
be imposed on, incurred by or asserted against such Agent Indemnitee -Related Person in any way
relating to or arising out of the Commitments, this Agreement, any of the other Loan Documents
or any documents contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby or any action taken or omitted by such Agent Indemnitee -Related Person under
or in connection with any of the foregoing; provided that the unreimbursed expense or indemnified
loss, claim, damage, liability Liability or related expense, as the case may be, was incurred by or
asserted against such Agent Indemnitee -Related Person in its capacity as such; provided, further,
that  no  Lender  shall  be  liable  for  the  payment  of  any  portion  of  such liabilitiesLiabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
that are found by a final and non-appealable decision of a court of competent jurisdiction to have
resulted from such Agent Indemnitee’s -Related Person’s gross negligence or willful misconduct.
The agreements in this Section shall survive the termination of this Agreement and the Payment
in Full of the Obligations. 

	
	
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(d) To the extent permitted by applicable law, no party hereto shall assert, and
each party hereto hereby waives, any claim against any other party (i) for any damages arising
from the use by others of information or other materials obtained through telecommunications,
electronic or other information transmission systems (including the Internet) or (ii) on any theory
of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the Transactions, any
Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this paragraph
(d) shall relieve any Borrower of any obligation it may have to indemnify an Indemnitee pursuant
to clause (a) or (b) of this Section or any other expense reimbursement or indemnity obligations
of any Borrower set forth herein or under any other Loan Document.  No Indemnitee shall be liable
for  any  damages  arising  from  the  use  by  any  recipient  of  any  information  or  other  materials
distributed  by  it  through  telecommunications,  electronic  or  other  information  transmission
systems, except to the extent they are determined by a final and non-appealable judgment of a
court of competent jurisdiction to have resulted from the bad faith, willful misconduct or gross
negligence of such Indemnitee or any of its Controlled Affiliates, Persons under common Control
or Controlling Persons, or any of their respective officers, directors, employees, agents or advisors,
or for any special, indirect, consequential or punitive damages in connection with this Agreement
or the other Loan Documents or the transactions contemplated hereby or thereby.
(e) All amounts due under this Section Payments.  All amounts due under this
Section 10.04 shall be payable promptly after written demand therefor.
Section 10.05 Designation of Parent Borrower as Borrowers’ Agent.
(a) Each  Borrower  hereby  irrevocably  designates  and  appoints  the  Parent
Borrower as that Borrower’s agent (i) to execute the Fee Letter, and (ii) to obtain Loans and Letters
of Credit hereunder, the proceeds of which shall be available for those uses as those set forth
herein.  As the disclosed principal for its agent, each Borrower shall be obligated to the Agent and
each Lender on account of the amounts due under the Fee Letter, Loans so made and Letters of
Credit so issued hereunder as if made directly by the Lenders to such Borrower, notwithstanding
the manner by which such Loans and Letters of Credit are recorded on the books and records of
the Parent Borrower and of any Borrower.
(b) Each Borrower recognizes that credit available to it hereunder is in excess
of and on better terms than it otherwise could obtain on and for its own account and that one of the
reasons therefor is its joining in the credit facility contemplated herein with all other Borrowers.
Consequently, each Borrower hereby assumes and agrees to discharge all Obligations of all other
Borrowers as if the Borrower so assuming were each other Borrower.
(c) The Parent Borrower shall act as a conduit for each Borrower (including
itself, as a “Borrower”) on whose behalf the Parent Borrower has requested a Loan.
(i) The Parent Borrower shall cause the transfer of the proceeds of each
Loan to the (those) Borrower(s) on whose behalf such Loan was obtained.  Neither the
Agent nor any Lender shall have any obligation to see to the application of such proceeds. 

	
	
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(ii) If, for any reason, and at any time during the term of this Agreement,
(A) any Borrower, including the Parent Borrower, as agent for
the Borrowers, shall be unable to, or prohibited from carrying out the terms and
conditions of this Agreement (as determined by the Agent in the Agent’s sole and
absolute discretion); or
(B) the  Agent  deems  it  inexpedient  (in  the  Agent’s  sole  and
absolute discretion) to continue making Loans and cause Letters of Credit to be
issued to or for the account of any particular Borrower or its Subsidiaries, or to
channel such Loans and Letters of Credit through the Parent Borrower,
then the Lenders may make Loans directly to, and cause the issuance of Letters of Credit
directly for the account of such of the Borrowers as the Agent determines to be expedient,
which Loans may be made without regard to the procedures otherwise included herein.
(d) In the  event that the Agent determines to forgo  the procedures included
herein  pursuant  to  which  Loans  and  Letters  of  Credit  are  to  be channeled  through  the  Parent
Borrower, then the Agent may designate one or more of the Borrowers to fulfill the financial and
other reporting requirements otherwise imposed herein upon the Parent Borrower.
(e) Each of the Borrowers shall remain liable to the Agent and the Lenders for
the payment and performance of all Obligations (which payment and performance shall continue
to  be  secured  by  all  Collateral  granted  by  each  of  the  Borrowers)  notwithstanding  any
determination by the Agent to cease making Loans or causing Letters of Credit to be issued to or
for the benefit of any Borrower.
(f) The authority of the Parent Borrower to request Loans on behalf of, and to
bind, the Borrowers, shall continue unless and until the Agent acts as provided in paragraph (c),
above, or the Agent actually receives
(i) written notice of: (A) the termination of such authority, and (B) the
subsequent  appointment  of  a  successor  Parent  Borrower,  which  notice  is  signed  by  a
Responsible Officer of each Borrower (other than the President of the Parent Borrower
being replaced) then eligible for borrowing under this Agreement; and
(ii) written notice from such successive Parent Borrower (A) accepting
such  appointment;  (B)  acknowledging  that  such  removal  and  appointment  has  been
effected by the respective Responsible Officer of such Borrowers eligible for borrowing
under  this  Agreement;  and  (C)  acknowledging  that  from  and  after the date of such
appointment, the newly appointed Parent Borrower shall be bound by the terms hereof, and
that as used herein, the term “Parent Borrower” shall mean and include the newly appointed
Parent Borrower.
Section 10.06 Successors and Assigns.  (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Lender that issues any Letter of
Credit), except that (i) no Borrower may assign or otherwise transfer any of its rights or obligations 

	
	
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hereunder without the prior written consent of each Lender (and any such attempted assignment
or transfer without such consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this Section.  Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of
any  Issuing  Lender  that  issues  any  Letter  of  Credit),  Participants  (to  the  extent  provided  in
paragraph  (e)  of  this  Section)  and,  to  the  extent  expressly  contemplated  hereby,  the  Related
Parties of each of the Agent, the Issuing Lenders and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.
(b) Any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans
at  the  time  owing  to  it),  provided  that  (i)  except  in  the  case of  an  assignment  to  an  Eligible
Assignee, or as a result of a merger of a Lender with an Eligible Assignee, or the sale of all of the
loan portfolio of a Lender to an Eligible Assignee, each of the Parent Borrower (but (A) only if no
Event of Default described in Section 8.01(a), Section 8.01(b), Section 8.01(h), Section 8.01(i),
or Section 8.01(j) then exists and (B) the Parent Borrower shall be deemed to have consented to
any assignment unless it shall object thereto by written notice (which may be by e-mail) to the
Agent  within 10 15 Business  Days  after  delivery  of  a  written  request  for  consent  to  such
assignment, which written request shall be provided to two Responsible Officers of the Parent
Borrower,  with  one  such  Responsible  Officer  being  a  Financial  Officer),  the  Agent  and  each
Issuing Lender must give their prior written consent to such assignment (which consent shall not
be unreasonably withheld or delayed), (ii) except in the case of an assignment to a Lender or an
Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s
Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Agent) shall not be less than $10,000,000 unless the Agent
otherwise consents, (iii) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations, (iv) the parties to each assignment shall
execute and deliver to the Agent an Assignment and Assumption, and, after completion of the
syndication  of  the  Loans,  together  with  a  processing  and  recordation  fee  of  $3,500,  (v)  no
assignment shall be made to any Borrower or any of their Affiliates and (vi) the assignee, if it shall
not be a Lender, shall deliver to the Agent an Administrative Questionnaire in which the assignee
designates one or more credit contacts to whom all syndicate level-information (which may contain
material non-public information about the Parent Borrower, the other Borrowers and their Related
Parties or their respective securities) will be made available and who may receive such information
in accordance with the assignee’s compliance procedures and applicable laws, including federal
and state securities laws.  Subject to acceptance and recording thereof pursuant to paragraph (d)
of this Section, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and,  to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Section 2.22(b), Section 2.26, and Section 2.28 and Section 10.04).  Any assignment
or transfer by a Lender of rights or obligations under this Agreement that does not comply with 

	
	
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this  paragraph  shall  be  treated  for  purposes  of  this  Agreement as  a  sale  by  such  Lender  of  a
participation in such rights and obligations in accordance with paragraph (e) of this Section.
(c) The Agent, acting solely for this purpose as an a non-fiduciary agent of the
Borrowers, shall maintain at one of its offices in Dallas, Texas a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitment of, and principal amount (and stated interest) of the Loans and LC
Disbursements  owing  to,  each  Lender  pursuant  to  the  terms  hereof  from  time  to  time  (the
“Register”).    The  entries  in  the  Register  shall  be  conclusive  absent  manifest  error  and  the
Borrowers, the Agent, the Issuing Lenders and the Lenders shall treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection
by the Parent Borrower, any Issuing Lender and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.
(d) Upon  its  receipt  of  (x)  a  duly  completed  Assignment  and  Assumption
executed by an assigning Lender and an assignee, or (y) to the extent applicable, an agreement
incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic
Platform as to which the Agent and the parties to the Assignment and Assumption are participants,
the assignee’s  completed Administrative Questionnaire  (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section
and any written consent to such assignment required by paragraph (b) of this Section, the Agent
shall accept such Assignment and Assumption and record the information contained therein in the
Register; provided that if either the assigning Lender or the assignee shall have failed to make any
payment  required  to  be  made  by  it  pursuant  to Section  2.03, 2.06(d) or (e), 2.07, 2.18(d) or
10.04(c10.04(d), the Agent shall have no obligation to accept such Assignment and Assumption
and record the information therein in the Register unless and until such payment shall have been
made  in  full,  together  with  all  accrued  interest  thereon.    No  assignment  shall  be  effective  for
purposes  of  this  Agreement  unless  it  has  been  recorded  in  the  Register  as  provided  in  this
paragraph.
(e) Any Lender may, without the consent of , or notice to, the Borrowers, the
Agent, or the Issuing Lenders or the Swingline Lender, sell participations to one or more banks or
other entities (other than a Borrower or any of its Affiliates) (a “Participant”) in all or a portion
of such Lender’s rights and obligations under this Agreement (including all or a portion of its
Commitment and /or the Loans owing to it), provided that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties  hereto  for  the  performance  of  such  obligations  and  (iii)  the  Borrowers,  the  Agent,  the
Issuing Lenders and the other Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and /or obligations under this Agreement.  Any agreement
or instrument pursuant to which a Lender sells such a participation in the Commitments, the Loans
and the Letters of Credit Outstandings shall provide that such Lender shall retain the sole right to
enforce  the  Loan  Documents  and  to  approve  any  amendment,  modification  or  waiver  of  any
provision of the Loan Documents, provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 10.02(b) that directly and adversely affects such
Participant.  The Borrowers agree that each Participant shall be entitled to the benefits of Section 

	
	
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2.22(b), Section 2.26,  and Section 2.28  (subject  to  the  requirements  and  limitations  therein,
including the requirements of under Section 2.28(f) and Section 2.28(g), it being understood that
the documentation required under Section 2.28(f) and Section 2.28(g) shall be delivered to the
participating Lender and the information and documentation required under Section 2.28(g) will
be delivered to the Borrowers and the Agent) to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such
Participant (A) agrees to be subject to the provisions of Section 2.28 2.18 and Section 2.30 as if it
were an assignee under paragraph (b) of this Section, and (B) shall not be entitled to receive any
greater payment under Section 2.26 or Section 2.28, with respect to any participation, than its
participating Lender would have been entitled to receive.  Each Lender that sells a participation
agrees, at the Borrowers’ request and expense, to use reasonable efforts to cooperate with the
Borrowers to effectuate the provisions of Section 2.30(b) with respect to any Participant.  To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.10 as
though  it  were  a  Lender,  provided  such  Participant  agrees  to  be  subject  to Section 2.18(d) as
though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose
as an a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and
address of each Participant and the principal amounts (and stated interest) of each Participant’s
interest in the Loans or other obligations under the Loan Documents (the “Participant Register”);
provided that no Lender shall have any obligation to disclose all or any portion of the Participant
Register to any Person (including the identity of any Participant or any information relating to a
Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under
any  Loan  Document) to  any  Person except  to  the  extent  that  such  disclosure  is  necessary  to
establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form
under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant
Register shall be conclusive absent manifest error, and such Lender shall treat each person Person
whose  name  is  recorded  in  the  Participant  Register  as  the  owner  of  such  participation  for  all
purposes of this Agreement notwithstanding any notice to the contrary.   For the avoidance of
doubt,  the  Agent  (in  its  capacity  as  administrative  agent)  shall  have  no  responsibility  for
maintaining a Participant Register.
(f) Any Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not
apply to any such pledge or assignment of a security interest, provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.
Section 10.07 Survival.  All covenants, agreements, representations and warranties made
by the Borrowers in the Loan Documents and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the execution and delivery of
the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless
of any investigation made by any such other party or on its behalf and notwithstanding that the
Agent, any Issuing Lender or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall continue
in full force and effect as long as the principal of or any accrued interest on any Loan or any fee
or any other amount payable under this Agreement is outstanding and unpaid or any Letter of 

	
	
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Credit  is  outstanding  and  so  long  as  the  Commitments  have  not  expired  or  terminated.    The
provisions of Section 2.22(b), Section 2.26, Section 2.28 and Section 10.04 and Article IX shall
survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the termination of this Agreement or any provision hereof and the Payment
in Full of the Obligations.
Section 10.08 Counterparts;  Integration;  Effectiveness.    This  Agreement  may  be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement, the other Loan Documents and any separate letter agreements with respect to (a)
fees payable to the Agent and (b) increases or reductions of the LC Sublimit of the Issuing Lenders
constitute the entire contract among the parties constitute the entire contract among the parties
relating  to  the  subject  matter  hereof  and  supersede  any  and  all  previous  agreements  and
understandings,  oral  or  written,  relating  to  the  subject  matter  hereof.    Except  as  provided  in
Section 5.01, this Agreement shall become effective when it shall have been executed by the Agent
and the Lenders and when the Agent shall have received counterparts hereof that, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other
electronic transmission (x) this Agreement, (y) any other Loan Document and/or (z) any document,
amendment, approval, consent, information, notice (including, for the avoidance of doubt, any
notice  delivered  pursuant  to Section  10.01),  certificate,  request,  statement,  disclosure  or
authorization  related  to  this  Agreement,  any  other  Loan  Document  and/or  the  transactions
contemplated  hereby  and/or  thereby  (each  an  “Ancillary  Document”)  that  is  an  Electronic
Signature transmitted by facsimile, emailed pdf. or any other electronic means that reproduces an
image of an actual executed signature page shall be effective as delivery of a manually executed
counterpart  of  this  Agreement,  such  other  Loan  Document  or  such  Ancillary  Document,  as
applicable.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in
or relating to any document to be signed in connection with this Agreement and the transactions
contemplated hereby or thereby , any other Loan Document and/or any Ancillary Document shall
be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic
form (including deliveries by facsimile, emailed pdf. or any other electronic means that reproduces
an image of an actual executed signature page), each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature, physical delivery thereof or the use of
a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based
on the Uniform Electronic Transactions Act; provided that nothing herein shall require the Agent
to accept electronic signatures Electronic Signatures in any form or format without its prior written
consent  and  pursuant  to  procedures  approved  by  it;  provided,  further, without  limiting  the
foregoing, (i) to the extent the Agent has agreed to accept any Electronic Signature, the Agent and
each of the Lenders shall be entitled to rely on such Electronic Signature purportedly given by or
on behalf of any Borrower without further verification thereof and without any obligation to review
the appearance or form of any such Electronic Signature and (ii) upon the request of the Agent or
any  Lender,  any  Electronic  Signature  shall  be  promptly  followed  by  a  manually  executed
counterpart.  Without limiting the generality of the foregoing, each Borrower hereby (A) agrees
that, for all purposes, including without limitation, in connection with any workout, restructuring, 

	
	
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enforcement of remedies, bankruptcy proceedings or litigation among the Agent, the Lenders and
the Borrowers, Electronic Signatures transmitted by facsimile, emailed pdf. or any other electronic
means that reproduces an image of an actual executed signature page and/or any electronic images
of this Agreement, any other Loan Document and/or any Ancillary Document shall have the same
legal effect, validity and enforceability as any paper original, (B) the Agent and each of the Lenders
may, at its option, create one or more copies of this Agreement, any other Loan Document and/or
any Ancillary Document in the form of an imaged electronic record in any format, which shall be
deemed created in the ordinary course of such Person’s business, and destroy the original paper
document (and all such electronic records shall be considered an original for all purposes and shall
have the same legal effect, validity and enforceability as a paper record), (C) waives any argument,
defense or right to contest the legal effect, validity or enforceability of this Agreement, any other
Loan Document and/or any Ancillary Document based solely on the lack of paper original copies
of  this  Agreement,  such  other  Loan  Document  and/or  such  Ancillary  Document,  respectively,
including with respect to any signature pages thereto and (D) waives any claim against any Lender-
Related Person for any Liabilities arising solely from the Agent’s and/or any Lender’s reliance on
or  use  of  Electronic  Signatures  and/or  transmissions  by  facsimile,  emailed  pdf.  or  any  other
electronic means that reproduces an image of an actual executed signature page, including any
Liabilities arising as a result of the failure of any Borrower to use any available security measures
in connection with the execution, delivery or transmission of any Electronic Signature.  THIS
WRITTEN  AGREEMENT  REPRESENTS  THE  FINAL  AGREEMENT  BETWEEN  THE
PARTIES  AND  MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,
CONTEMPORANEOUS,  OR  SUBSEQUENT  ORAL  AGREEMENTS  OF  THE
PARTIES.   THERE  ARE  NO  UNWRITTEN  ORAL  AGREEMENTS  BETWEEN  THE
PARTIES.
Section 10.09 Severability.  Any provision of any Loan Document held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of  such  invalidity,  illegality  or  unenforceability  without  affecting  the  validity,  legality  and
enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other jurisdiction.
Section 10.10 Right  of  Setoff.    If  an  Event  of  Default  shall  have  occurred  and  be
continuing, each Lender , each Issuing Lender and each of its their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off and
apply any and all deposits (general or special, time or demand, provisional or final) at any time
held , and other obligations at any time owing , by such Lender or its Affiliates , such Issuing
Lender or any such Affiliate, to or for the credit or the account of the Borrowers against any of
and all the obligations of the Borrowers now or hereafter existing under this Agreement held by
such  Lender  or  its  Affiliateany  Borrower  against  any  and  all  of  the  Obligations  held  by  such
Lender, such  Issuing Lender or their respective  Affiliates, irrespective of whether or not such
Lender or its Affiliate , such Issuing Lender or their respective Affiliates shall have made any
demand under the Loan Documents and although such obligations may be contingent or unmatured
or are owed to a branch office or Affiliate of such Lender or such Issuing Lender different from
the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided
that no amount received pursuant to this Section 10.10 from any Borrower shall be applied to any
Excluded Hedging Obligation of any Borrower and provided further that in the event that any
Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid 

	
	
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over  immediately  to  the  Agent  for  further  application  in  accordance  with  the  provisions  of
Section 2.31 and, pending such payment, shall be segregated by such Defaulting Lender from its
other funds and deemed held in trust for the benefit of the Agent, the Issuing Lenders, and the
Lenders, and (y) the Defaulting Lender shall provide promptly to the Agent a statement describing
in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such
right of setoff.  The rights of each Lender , each Issuing Lender and their respective Affiliates
under this Section are in addition to other rights and remedies (including other rights of setoff) that
such Lender or its Affiliate , such Issuing Lender or their respective Affiliates may have.  In no
event may a Lender or its , a Issuing Lender or any of their respective Affiliates set off and apply
the Other Store Proceeds against such obligations.  Each Lender (including any Defaulting Lender)
and  each  Issuing  Lender  agrees  to  notify  the  Parent  Borrower  and  the  Administrative  Agent
promptly after any such application made by such Lender, provided that the failure to give such
notice shall not affect the validity of any such setoff or application under this Section.
Section 10.11 Governing Law; Jurisdiction; Consent to Service of Process.
(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW INTERNAL LAWS OF THE STATE OF NEW YORK.
(b) Each of the parties hereto agrees that any suit for the enforcement of this
Agreement or any other Loan Document may be brought in any New York state or federal court
sitting  in  the  Borough  of  Manhattan  in  New  York  City  and  consent  to  the  non-exclusive
jurisdiction of such courts.  Each of the parties hereto hereby waives any objection which they may
now or hereafter have to the venue of any such suit or any such court or that such suit is brought
in an inconvenient forum.
(c) Each party to this Agreement irrevocably consents to service of process in
the manner provided for notices in Section 10.01.  Nothing in this Agreement or any other Loan
Document will affect the right of any party to this Agreement to serve process in any other manner
permitted by law.
Section 10.12 WAIVER  OF  JURY  TRIAL.    EACH  PARTY  HERETO  HEREBY
IRREVOCABLY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR  ANY  OTHER  LOAN  DOCUMENT  OR  THE  TRANSACTIONS  CONTEMPLATED
HEREBY  OR  THEREBY  (WHETHER  BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER
THEORY).    EACH  PARTY  HERETO  (A)  CERTIFIES  THAT  NO  REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR
OTHERWISE,  THAT  SUCH  OTHER  PERSON  WOULD  NOT,  IN  THE  EVENT  OF
LITIGATION,  SEEK  TO  ENFORCE  THE  FOREGOING  WAIVER  AND  (B)
ACKNOWLEDGES  THAT  IT  AND  THE  OTHER  PARTIES  HERETO  HAVE  BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION. 

	
	
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Section 10.13 Headings.  Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.
Section 10.14 Interest  Rate  Limitation.    Notwithstanding  anything  herein  to  the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and
other  amounts  that  are  treated  as  interest  on  such  Loan  under  applicable  law  (collectively  the
“Charges”),  shall  exceed  the  maximum  lawful  rate  (the  “Maximum  Rate”)  that  may  be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance
with applicable law, the rate of interest payable in respect of such Loan hereunder, together with
all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent
lawful, the interest and Charges that would have been payable in respect of such Loan but were
not payable as a result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be increased (but not
above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at
the NYFRB Rate to the date of repayment, shall have been received by such Lender.
Section 10.15 Additional Waivers.
The Obligations are the joint and several obligations of each Borrower.
(a) To the fullest extent permitted by applicable law, the obligations of each
Borrower hereunder shall not be affected by (i) the failure of the Agent or any other Secured Party
to assert any claim or demand or to enforce or exercise any right or remedy against any other
Borrower under the provisions of this Agreement, any other Loan Document or otherwise, (ii) any
rescission,  waiver,  amendment  or  modification  of,  or  any  release from any of the terms or
provisions of, this Agreement, any other Loan Document, or any other agreement, including with
respect to any other Borrower of the Obligations under this Agreement, or (iii) the failure to perfect
any security interest in, or the release of, any of the security held by or on behalf of the Agent or
any other Secured Party.
(b) The  obligations  of  each  Borrower  hereunder  shall  not  be  subject to any
reduction, limitation, impairment or termination for any reason (other than the Payment in Full of
the Obligations), including any claim of waiver, release, surrender, alteration or compromise of
any of the Obligations, and shall not be subject to any defense or set-off, counterclaim, recoupment
or  termination  whatsoever  by  reason  of  the  invalidity,  illegality  or  unenforceability  of  the
Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of each
Borrower hereunder shall not be discharged or impaired or otherwise affected by the failure of any
Agent or any other Secured Party to assert any claim or demand or to enforce any remedy under
this Agreement, any other Loan Document or any other agreement, by any waiver or modification
of  any  provision  of  any  thereof,  by  any  default,  failure  or  delay,  willful  or  otherwise,  in  the
performance of the Obligations, or by any other act or omission that may or might in any manner
or to any extent vary the risk of any Borrower or that would otherwise operate as a discharge of
any Borrower as a matter of law or equity (other than the Payment in Full of the Obligations).
(c) To the fullest extent permitted by applicable law, each Borrower waives any
defense based on or arising out of any defense of any other Borrower or the unenforceability of 

	
	
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the Obligations or any part thereof from any cause, or the cessation from any cause of the liability
of any other Borrower, other than the Payment in Full of the Obligations.  The Agent and the other
Secured Parties may, at their election, foreclose on any security held by one or more of them by
one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of
foreclosure, compromise or adjust any part of the Obligations, make any other accommodation
with any other Borrower, or exercise any other right or remedy available to them against any other
Borrower, without affecting or impairing in any way the liability of any Borrower hereunder except
to the extent that all the Obligations have been Paid in Full.  Pursuant to applicable law, each
Borrower waives any defense arising out of any such election even though such election operates,
pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation
or other right or remedy of such Borrower against any other Borrower, as the case may be, or any
security.
(d) Upon  payment  by  any  Borrower  of  any  Obligations,  all  rights  of such
Borrower against any other Borrower arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be subordinate and junior
in right of payment to the prior Payment in Full of the Obligations.  In addition, any indebtedness
of any Borrower now or hereafter held by any other Borrower is hereby subordinated in right of
payment to the prior Payment in Full of the Obligations.  None of the Borrowers will demand, sue
for, or otherwise attempt to collect any such indebtedness.  If any amount shall erroneously be paid
to any Borrower on account of (i) such subrogation, contribution, reimbursement, indemnity or
similar right or (ii) any such indebtedness of any Borrower, such amount shall be held in trust for
the benefit of the Secured Parties and shall forthwith be paid to the Agent to be credited against
the payment of the Obligations, whether matured or unmatured, in accordance with the terms of
the Loan Documents.
Section 10.16 No Fiduciary Duty, etcEtc.
(a) Each  Borrower  acknowledges  and  agrees,  and  acknowledges  its
Subsidiaries’ understanding, that no Credit Party will have any obligations except those obligations
expressly set forth herein and in the other Loan Documents and each Credit Party is acting solely
in the capacity of an arm’s length contractual counterparty to each Borrower with respect to the
Loan  Documents  and  the  transactions  contemplated  herein  and  therein  and  not  as  a  financial
advisor or a fiduciary to, or an agent of, any Borrower or any other person.  Each Borrower agrees
that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary
duty by such Credit Party in connection with this Agreement and the transactions contemplated
hereby.  Additionally, each Borrower acknowledges and agrees that no Credit Party is advising
any Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any
jurisdiction.  Each Borrower shall consult with its own advisors concerning such matters and shall
be  responsible  for  making  its  own  independent  investigation  and  appraisal  of  the  transactions
contemplated  herein  or  in  the  other  Loan  Documents,  and  the  Credit  Parties  shall  have  no
responsibility or liability to any Borrower with respect thereto.
(b) Each  Borrower  further  acknowledges  and  agrees,  and  acknowledges its
Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service
securities  or  banking  firm  engaged  in  securities  trading  and  brokerage  activities  as  well  as
providing investment banking and other financial services.  In the ordinary course of business, any 

	
	
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Credit Party may provide investment banking and other financial services to, and/or acquire, hold
or sell, for its own accounts and the accounts of customers, equity, debt and other securities and
financial instruments (including bank loans and other obligations) of, any Borrower and other
companies with which any Borrower may have commercial or other relationships.  With respect
to any securities and/or financial instruments so held by any Credit Party or any of its customers,
all rights in respect of such securities and financial instruments, including any voting rights, will
be exercised by the holder of the rights, in its sole discretion.
(c) In addition, each Borrower acknowledges and agrees, and acknowledges its
Subsidiaries’  understanding,  that  each  Credit  Party  and  its  affiliates  may  be  providing  debt
financing,  equity  capital  or  other  services  (including  financial  advisory  services)  to  other
companies in respect of which a Borrower may have conflicting interests regarding the transactions
described herein and otherwise.  No Credit Party will use confidential information obtained from
any  Borrower  by  virtue  of  the  transactions  contemplated  by  the Loan  Documents  or  its  other
relationships with such  Borrower in  connection  with the performance  by  such  Credit  Party  of
services  for  other  companies,  and  no  Credit  Party  will  furnish any  such  information  to  other
companies.  Each Borrower also acknowledges that no Credit Party has any obligation to use in
connection  with  the  transactions  contemplated  by  the  Loan  Documents,  or  to  furnish  to  any
Borrower, confidential information obtained from other companies.
Section 10.17 Confidentiality.
(a) The Borrowers hereby agree that the Agent and each Lender may issue and
disseminate to the public general information describing this Agreement, including the name and
address of the Parent Borrower.
(b) The  Agent  and  each  Lender  agrees  to  keep  confidential  all  non-public
information provided to it by or on behalf of any Borrower pursuant to or in connection with this
Agreement that is designated by the provider thereof as confidential; provided that nothing herein
shall prevent the Agent or any Lender from disclosing any such information (i) to the Agent, any
other Lender or any Affiliate thereof, (ii) subject to an agreement to comply with the provisions of
this Section, to any actual or prospective transferee, assignee or participant or any direct or indirect
counterparty to any Hedging Agreement (or any professional advisor to such counterparty), (iii)
to its employees, directors, agents, attorneys, accountants and other professional advisors or those
of any of its Affiliates, (iv) upon the request or demand of any Governmental Authority, (v) in
response  to  any  order  of  any  court  or  other  Governmental  Authority or as may otherwise be
required pursuant to any requirement of law, (vi) to the extent required by applicable law or if
required  to  do  so  in  connection  with  any  litigation  or  similar proceeding,  (vii)  that  has  been
publicly disclosed, (viii) to the National Association of Insurance Commissioners or any similar
organization or any nationally recognized rating agency that requires access to information about
a Lender’s investment portfolio in connection with ratings issued with respect to such Lender, (ix)
in connection with the exercise of any remedy hereunder or under any other Loan Document, (x)
that becomes available to the Agent or any Lender on a nonconfidential basis from a source other
than the Borrowers, or (xi) any nationally recognized rating agency.  Notwithstanding anything to
the  contrary  herein  contained,  each  party  (and  their  respective  employees,  representatives  and
other agents) may disclose to any Person the tax treatment and tax structure of the transactions 

	
	
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contemplated by this Agreement and all materials (including opinions or other tax analyses) that
are provided to such party relating to such tax treatment and tax structure.
Section 10.18 Non-Public Information.
(a) EACH  LENDER,  EACH  ISSUING  LENDER  AND  THE  AGENT
ACKNOWLEDGES  THAT  INFORMATION  FURNISHED  TO  IT  PURSUANT  TO  OR  IN
CONNECTION  WITH  THIS  AGREEMENT  OR  THE  OTHER  LOAN  DOCUMENTS  MAY
INCLUDE  MATERIAL  NON-PUBLIC  INFORMATION  CONCERNING  THE  PARENT
BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND
CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE
USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH APPLICABLE LAW,
INCLUDING FEDERAL AND STATE SECURITIES LAWS.
(b) ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND
AMENDMENTS, FURNISHED BY ANY BORROWER OR THE AGENT PURSUANT TO,
OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT OR THE OTHER LOAN
DOCUMENTS WILL BE SYNDICATE LEVEL INFORMATION, WHICH MAY CONTAIN
MATERIAL NON-PUBLIC INFORMATION ABOUT THE PARENT BORROWER AND ITS
RELATED  PARTIES  OR  THEIR  RESPECTIVE  SECURITIES.    ACCORDINGLY,  EACH
LENDER AND EACH ISSUING LENDER REPRESENTS TO THE PARENT BORROWER
AND  THE  AGENT  THAT  IT  HAS  IDENTIFIED  IN  ITS  ADMINISTRATIVE
QUESTIONNAIRE  A  CREDIT  CONTACT  WHO  MAY  RECEIVE  INFORMATION  THAT
MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS
COMPLIANCE  PROCEDURES  AND  APPLICABLE  LAW,  INCLUDING  FEDERAL  AND
STATE SECURITIES LAWS.
Section 10.19 USA PATRIOT Act.  Each Lender that is subject to the requirements of
the USA PATRIOT Act hereby notifies the Borrowers that pursuant to the requirements of the
USA  PATRIOT  Act,  it  is  required  to  obtain,  verify  and  record  information  that  identifies  the
Borrowers,  which  information  includes  the  name  and  address  of  the  Borrowers  and  other
information that will allow such Lender to identify the Borrowers in accordance with the USA
PATRIOT Act.
Section 10.20 Specified  Subsidiaries.    For  the  avoidance  of  doubt,  the  assets  of  the
Specified Subsidiaries are not and shall not be required to be pledged as Collateral under this
Agreement or any other Loan Document and none of the Specified Subsidiaries are or shall be
deemed to be a Borrower, a Loan Guarantor or a Grantor (as defined in the Security Agreement).
The Agent and the Lenders hereby agree that at all times, including, without limitation, (a) if an
Event of Default has occurred and is continuing or (b) if the Lenders become judgment creditors
and seek to attach or levy upon any assets of the Parent Borrower or any of its Subsidiaries to
enforce any such judgment, DICL will continue to be operated in compliance with the regulatory
guidelines required by the Bermuda Monetary Authority and the Arkansas Insurance Department.
Section 10.21 Marketing Consent.  The Parent Borrower hereby authorizes JPMorgan
and its affiliates (collectively, the “JPMCB Parties”), at their respective sole expense, but without 

	
	
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any prior approval by the Parent Borrower, to include the Parent Borrower’s name and logo in
advertising slicks posted on their internet sites, in pitchbooks or sent in mailings to prospective
customers  and  to  give  such  other  publicity  to  this  Agreement  as  each  may  from  time  to  time
determine in its sole discretion.  The JPMCB Parties shall not use any Subsidiary Borrower’s name
or any Subsidiary Borrower’s logo without the prior written approval of such Subsidiary Borrower
and the Parent Borrower.  Notwithstanding the foregoing, the JPMCB Parties shall not publish the
Borrowers’ names in a newspaper or magazine without obtaining the Borrowers’ prior written
approval.  The foregoing authorization shall remain in effect unless and until the Parent Borrower
notifies the JPMCB Parties in writing that such authorization is revoked.
Section 10.22 Acknowledgement  and  Consent  to  Bail-In  of  Affected  Financial
Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other
agreement, arrangement or understanding among any such parties, each party hereto acknowledges
that any liability of any Affected Financial Institution arising under any Loan Document, to the
extent such liability is unsecured,  may be subject to the Write-Down and Conversion Powers of
the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to
be bound by:
(a) the  application  of  any  Write-Down  and  Conversion  Powers  by  the
applicable Resolution Authority to any such liabilities arising hereunder which may be payable to
it by any party hereto that is an Affected Financial Institution; and
(b) the  effects  of  any  Bail-In  Action  on  any  such  liability,  including,  if
applicable:
(i) a reduction in full or in part or cancellation of any such liability;
(ii) a conversion of all, or a portion of, such liability into shares or other
instruments  of  ownership  in  such  Affected  Financial  Institution,  its  parent  entity,
undertaking, or a bridge institution that may be issued to it or otherwise conferred on it,
and that such shares or other instruments of ownership will be accepted by it in lieu of any
rights with respect to any such liability under this Agreement or any other Loan Document;
or
(iii) the variation of the terms of such liability in connection with the
exercise  of  the  Write-Down  and  Conversion  Powers  of  the  applicable  Resolution
Authority.
Section 10.23 Acknowledgement Regarding Any Supported QFCs.  To the extent that
the  Loan  Documents  provide  support,  through  a  guarantee  or  otherwise,  for  any  Hedging
Agreement  or  any  other  agreement  or  instrument  that  is  a  QFC  (such  support,  “QFC  Credit
Support”  and  each  such  QFC,  a  “Supported  QFC”),  the  parties  acknowledge  and  agree  as
follows with respect to the resolution power of the Federal Deposit Insurance Corporation under
the  Federal  Deposit  Insurance  Act  and  Title  II  of  the  Dodd-Frank  Wall  Street  Reform  and
Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special
Resolution  Regimes”)  in  respect  of  such  Supported  QFC  and  QFC  Credit  Support  (with  the
provisions below applicable notwithstanding that the Loan Documents and any Supported QFC 

	
	
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may in fact be stated to be governed by the laws of the State of New York and/or of the United
States or any other state of the United States):
In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes
subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported
QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such
Supported QFC and such QFC Credit Support, and any rights in property securing such Supported
QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent
as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC
and  such  QFC  Credit  Support  (and  any  such  interest,  obligation and  rights  in  property)  were
governed by the laws of the United States or a state of the United States.  In the event a Covered
Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S.
Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply
to such Supported QFC or any QFC Credit Support that may be exercised against such Covered
Party are permitted to be exercised to no greater extent than such Default Rights could be exercised
under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were
governed by the laws of the United States or a state of the United States. Without limitation of the
foregoing, it is understood and agreed that rights and remedies of the parties with respect to a
Defaulting  Lender  shall  in  no  event  affect  the  rights  of  any  Covered  Party  with  respect  to  a
Supported QFC or any QFC Credit Support.
Section 10.24 Several Obligations; Violation of Law.  The respective obligations of the
Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or
perform  any  of  its  obligations  hereunder  shall  not  relieve  any other  Lender  from  any  of  its
obligations hereunder.  Each Lender hereby represents that it is not relying on or looking to any
margin stock (as defined in Regulation U of the Board) for the repayment  of  the  Borrowings
provided  for  herein.    Anything  contained  in  this  Agreement  to  the  contrary  notwithstanding,
neither any Issuing Lender nor any Lender shall be obligated to extend credit to the Borrowers in
violation of any requirement of law.
Section 10.25 Disclosure.  Each Borrower, each Lender and each Issuing Lender hereby
acknowledges  and  agrees  that  the  Agent  and/or  its  Affiliates  from  time  to  time  may  hold
investments in, make other loans to or have other relationships with any of the Borrowers and their
respective Affiliates.
Section 10.26 Appointment  for  Perfection.    Each  Lender  hereby  appoints  each  other
Lender as its agent for the purpose of perfecting Liens, for the benefit of the Agent and the other
Secured Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable
law can be perfected only by possession or control.  Should any Lender (other than the Agent)
obtain possession or control of any such Collateral, such Lender shall notify the Agent thereof,
and,  promptly  upon  the  Agent’s  request  therefor  shall  deliver  such  Collateral  to  the  Agent  or
otherwise deal with such Collateral in accordance with the Agent’s instructions.
Section 10.27 Joint and Several.  Each Borrower hereby unconditionally and irrevocably
agrees it is jointly and severally liable to the Agent, the Issuing Lenders and the Lenders for the
Obligations.  In furtherance thereof, each Borrower agrees that wherever in this Agreement it is
provided that a Borrower is liable for a payment, such obligation is the joint and several obligation 

	
	
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of each Borrower.  Each Borrower acknowledges and agrees that its joint and several liability
under this Agreement and the Loan Documents is absolute and unconditional and shall not in any
manner be affected or impaired by any acts or omissions whatsoever by the Agent, any Issuing
Lender, any Lender or any other Person.  Each Borrower’s liability for the Obligations shall not in
any manner be impaired or affected by which Borrower receives or uses the proceeds of the credit
extended hereunder or for what purposes such proceeds are used, and each Borrower waives notice
of borrowing requests issued by, and loans or other extensions of credit made to, other Borrowers.
Each Borrower hereby agrees not to exercise or enforce any right of exoneration, contribution,
reimbursement, recourse or subrogation available to such Borrower against any party liable for
payment under this Agreement and the Loan Documents unless and until the Obligations have
been  Paid  in  Full.    Each  Borrower’s  joint  and  several  liability  hereunder  with  respect  to  the
Obligations shall, to the fullest extent permitted by applicable law, be the unconditional liability
of such Borrower irrespective of (i) the validity, enforceability, avoidance or subordination of any
of the Obligations or of any other document evidencing all or any part of the Obligations against
any applicable Borrower, (ii) the absence of any attempt to collect any of the Obligations from any
other Borrower or any Collateral or other security therefor, or the absence of any other action to
enforce the same, (iii) the amendment, modification, waiver, consent, extension, forbearance or
granting  of  any  indulgence  by  the  Agent  or  any  Lender  with  respect  to  any  provision  of  any
instrument executed by any other Borrower evidencing or securing the payment of any of the
Obligations,  or  any  other  agreement  now  or  hereafter  executed  by  any  other  Borrower  and
delivered to the Agent (but not, in either case, with respect to such other Borrower or the payment
of the Obligations generally), (iv) the failure by the Agent or any Lender to take any steps to perfect
or maintain the perfected status of its Lien upon, or to preserve its rights to, any of the Collateral
or other security for the payment or performance of any of the Obligations or the Agent’s release
of any Collateral or of its Liens upon any Collateral, (v) the release or compromise, in whole or in
part, of the liability of any other Borrower for the payment of any of the Obligations, (vi) any
increase in the amount of the Obligations beyond any limits imposed herein or in the amount of
any interest, fees or other charges payable in connection therewith, in each case, if consented to
by any other Borrower, or any decrease in the same, or (vii) any other circumstance that might
constitute a legal or equitable discharge or defense of any Borrower.  After the occurrence and
during the continuance  of any Event of Default, the Agent may proceed directly and at once,
without notice to any Borrower, against any or all of Borrowers to collect and recover all or any
part  of  the  Obligations,  without  first  proceeding  against  any  other  Borrower  or  against  any
Collateral or other security for the payment or performance of any of the Obligations, and each
Borrower  waives  any  provision  that  might  otherwise  require  the Agent  or  the  Lenders  under
applicable  law  to  pursue  or  exhaust  remedies  against  any  Collateral  or  other  Borrower  before
pursuing such Borrower or its property.  Each Borrower consents and agrees that neither the Agent
nor any Lender shall be under any obligation to marshal any assets in favor of any Borrower or
against or in payment of any or all of the Obligations.
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]