Document:

Exhibit 10.1

 

Lock-Up
Agreement

 

_______,
2020

 

Aegis
Capital Corp.

810
Seventh Avenue, 18th Floor

New
York, NY 10019

 

As
Representative of the several Underwriters named on Schedule 1 to the Underwriting Agreement referenced below

 

Ladies
and Gentlemen:

 

The
undersigned understands that Aegis Capital Corp. (the “Representative”), proposes to enter into an Underwriting
Agreement (the “Underwriting Agreement”) with Digital Ally Inc., a Nevada corporation (the “Company”),
providing for the public offering (the “Public Offering”) of shares of common stock, par value $0.001 per share,
of the Company (the “Common Shares”) and/or other securities of the Company convertible into or exchangeable
for Common Shares.

 

To
induce the Representative to continue its efforts in connection with the Public Offering, the undersigned hereby agrees that,
without the prior written consent of the Representative or pursuant to a previously established and valid 10b5-1 trading plan,
the undersigned will not, during the period commencing on the date hereof and ending 45 days after the date of the Underwriting
Agreement relating to the Public Offering (the “Lock-Up Period”), (1) offer, pledge, sell, contract to sell,
grant, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Shares or any securities convertible into
or exercisable or exchangeable for Common Shares, whether now owned or hereafter acquired by the undersigned or with respect to
which the undersigned has or hereafter acquires the power of disposition (collectively, the “Lock-Up Securities”);
(2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by
delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to the registration
of any Lock-Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter
into any transaction, swap, hedge or other arrangement relating to any Lock-Up Securities. Notwithstanding the foregoing, and
subject to the conditions below, the undersigned may transfer Lock-Up Securities without the prior written consent of the Representative
in connection with (a) transactions relating to Lock-Up Securities acquired in open market transactions after the completion of
the Public Offering; provided that no filing under Section 13 or Section 16(a) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), or other public announcement shall be required or shall be voluntarily made
in connection with subsequent sales of Lock-Up Securities acquired in such open market transactions; (b) transfers of Lock-Up
Securities as a bona fide gift, by will or intestacy or to a family member or trust for the benefit of the undersigned
or a family member (for purposes of this lock-up agreement, “family member” means any relationship by blood, marriage
or adoption, not more remote than first cousin); (c) transfers of Lock-Up Securities to a charity or educational institution (d)
if the undersigned is a corporation, partnership, limited liability company or other business entity, (i) any transfers of Lock-Up
Securities to another corporation, partnership or other business entity that controls, is controlled by or is under common control
with the undersigned or (ii) distributions of Lock-Up Securities to members, partners, stockholders, subsidiaries or affiliates
(as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) of the undersigned; (e) if the undersigned is
a trust, to a trustee or beneficiary of the trust; provided that in the case of any transfer pursuant to the foregoing
clauses (b), (c) (d) or (e), (i) any such transfer shall not involve a disposition for value, (ii) each transferee shall sign
and deliver to the Representative a lock-up agreement substantially in the form of this lock-up agreement and (iii) no filing
under Section 13 or Section 16(a) of the Exchange Act or other public announcement shall be required or shall be voluntarily made
during the Lock-Up Period; (f) the receipt by the undersigned from the Company of Common Shares upon the vesting of restricted
stock awards or stock units or upon the exercise of options to purchase the Company’s Common Shares issued under an equity
incentive plan of the Company or an employment arrangement described in the Pricing Prospectus (as defined in the Underwriting
Agreement) (the “Plan Shares”) or the transfer of Common Shares or any securities convertible into Common Shares
to the Company upon a vesting event of the Company’s securities or upon the exercise of options to purchase the Company’s
securities, in each case on a “cashless” or “net exercise” basis or to cover tax obligations of the undersigned
in connection with such vesting or exercise, but only to the extent such right expires during the Lock-up Period, provided
that in the case of a net exercise or cashless exercise no filing under Section 13 or Section 16(a) of the Exchange Act or
other public announcement shall be required or shall be voluntarily made within 45 days after the date of the Underwriting Agreement,
and after such 45th day, if the undersigned is required to file a report under Section 13 or Section 16(a) of the Exchange Act
reporting a reduction in beneficial ownership of Common Shares during the Lock-Up Period, the undersigned shall include a statement
in such schedule or report to the effect that the purpose of such transfer was to cover tax withholding obligations of the undersigned
in connection with such vesting or exercise and, provided further, that the Plan Shares shall be subject to the terms of
this lock-up agreement; (g) the transfer of Lock-Up Securities pursuant to agreements described in the Pricing Prospectus under
which the Company has the option to repurchase such securities or a right of first refusal with respect to the transfer of such
securities, provided that if the undersigned is required to file a report under Section 13 or Section 16(a) of the Exchange
Act reporting a reduction in beneficial ownership of Common Shares during the Lock-Up Period, the undersigned shall include a
statement in such schedule or report describing the purpose of the transaction; (h) the establishment of a trading plan pursuant
to Rule 10b5-1 under the Exchange Act for the transfer of Lock-Up Securities and scheduled below; (i) the transfer of Lock-Up
Securities that occurs by operation of law, such as pursuant to a qualified domestic order or in connection with a divorce settlement,
provided that the transferee agrees to sign and deliver a lock-up agreement substantially in the form of this lock-up agreement
for the balance of the Lock-Up Period, and provided further, that any filing under Section 13 or Section 16(a) of the Exchange
Act that is required to be made during the Lock-Up Period as a result of such transfer shall include a statement that such transfer
has occurred by operation of law; and (j) the transfer of Lock-Up Securities pursuant to a bona fide third party tender offer,
merger, consolidation or other similar transaction made to all holders of the Common Shares involving a change of control (as
defined below) of the Company after the closing of the Public Offering and approved by the Company’s board of directors;
provided that in the event that the tender offer, merger, consolidation or other such transaction is not completed, the
Lock-Up Securities owned by the undersigned shall remain subject to the restrictions contained in this lock-up agreement. For
purposes of clause (j) above, “change of control” shall mean the consummation of any bona fide third party tender
offer, merger, amalgamation, consolidation or other similar transaction the result of which is that any “person” (as
defined in Section 13(d)(3) of the Exchange Act), or group of persons, becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 of the Exchange Act) of a majority of total voting power of the voting stock of the Company. The undersigned also agrees
and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer
of the undersigned’s Lock-Up Securities except in compliance with this lock-up agreement.

 

    	 	 	 

    	 

    

 

If
(i) during the last 17 days of the Lock-Up Period, the Company issues an earnings release or material news or a material event
relating to the Company occurs, or (ii) prior to the expiration of the Lock-Up Period, the Company announces that it will release
earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the
last day of the Lock-Up Period, the restrictions imposed by this lock-up agreement shall continue to apply until the expiration
of the 18-day period beginning on the issuance of the earnings release or the occurrence of such material news or material event,
as applicable, unless the Representative waives, in writing, such extension.

 

The
undersigned agrees that, prior to engaging in any transaction or taking any other action that is subject to the terms of this
lock-up agreement during the period from the date hereof to and including the 34th day following the expiration of the initial
Lock-Up Period, the undersigned will give notice thereof to the Company and will not consummate any such transaction or take any
such action unless it has received written confirmation from the Company that the Lock-Up Period (as may have been extended pursuant
to the previous paragraph) has expired.

 

If
the undersigned is an officer or director of the Company, (i) the undersigned agrees that the foregoing restrictions shall be
equally applicable to any issuer-directed or “friends and family” Securities that the undersigned may purchase in
the Public Offering; (ii) the Representative agrees that, at least three (3) business days before the effective date of any release
or waiver of the foregoing restrictions in connection with a transfer of Lock-Up Securities, the Representative will notify the
Company of the impending release or waiver; and (iii) the Company has agreed in the Underwriting Agreement to announce the impending
release or waiver by press release through a major news service at least two (2) business days before the effective date of the
release or waiver. Any release or waiver granted by the Representative hereunder to any such officer or director shall only be
effective two (2) business days after the publication date of such press release. The provisions of this paragraph will not apply
if (a) the release or waiver is effected solely to permit a transfer of Lock-Up Securities not for consideration and (b) the transferee
has agreed in writing to be bound by the same terms described in this lock-up agreement to the extent and for the duration that
such terms remain in effect at the time of such transfer.

 

    	 	 	 

    	 

    

 

The
undersigned understands that the Company and the Representative are relying upon this lock-up agreement in proceeding toward consummation
of the Public Offering. The undersigned further understands that this lock-up agreement is irrevocable and shall be binding upon
the undersigned’s heirs, legal representatives, successors and assigns.

 

The
undersigned understands that, if the Underwriting Agreement is not executed by March 12, 2020 or if the Underwriting Agreement
(other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery
of the Common Shares to be sold thereunder, then this lock-up agreement shall be void and of no further force or effect.

 

Whether
or not the Public Offering actually occurs depends on a number of factors, including market conditions. Any Public Offering will
only be made pursuant to an Underwriting Agreement, the terms of which are subject to negotiation between the Company and the
Representative.

 

	 	Very
    truly yours,
	 	 
	 	 
	 	(Name
    - Please Print)
	 	 
	 	 
	 	(Signature)
	 	 
	 	 
	 	(Name
    of Signatory, in the case of entities - Please Print)
	 	 
	 	 
	 	(Title
    of Signatory, in the case of entities - Please Print)

 

	 	Address:	 
	 		 
	 		 

 

    	 	 	 

    	 

    

 

Schedule
1

 

List
of Existing 10b5-1 Trading Planexhibitno101termloancred

                                                                            Execution Version                                                                                                                                                                    TERM LOAN CREDIT AGREEMENT                                                                                       among                                                          VERTIV INTERMEDIATE HOLDING II CORPORATION, as HOLDINGS                                                                  VERTIV GROUP CORPORATION, as the BORROWER,                                                                                 VARIOUS LENDERS                                                                                         and                                                                                  CITIBANK, N.A.,                               as ADMINISTRATIVE AGENT                         _______________________________________                                                                               Dated as of March 2, 2020                                                                                  CITIBANK, N.A.,                              JPMORGAN CHASE BANK, N.A.,                                BOFA SECURITIES, INC. and                        GOLDMAN SACHS LENDING PARTNERS LLC  as JOINT LEAD ARRANGERS AND BOOKRUNNERS FOR THE REFINANCING TERM LOANS                                                      ING CAPITAL LLC,                               PNC CAPITAL MARKETS LLC,                    WELLS FARGO BANK, NATIONAL ASSOCIATION and                            DEUTSCHE BANK SECURITIES INC.          as CO-DOCUMENTATION AGENTS FOR THE REFINANCING TERM LOANS                     

 

                                                                                                                                          TABLE OF CONTENTS                                                                                                Page   SECTION 1.     DEFINITIONS AND ACCOUNTING TERMS ............................................................................... 1          1.01    Defined Terms .................................................................................................................................. 1         1.02    Terms Generally; Certain Interpretive Provisions and Classification and Reclassification ............ 46         1.03    Limited Condition Transactions ...................................................................................................... 46         1.04    Divisions ......................................................................................................................................... 47         1.05    Currency Equivalents Generally ..................................................................................................... 47         1.06    Treatment of Subsidiaries Prior to Joinder ...................................................................................... 48   SECTION 2.     AMOUNT AND TERMS OF CREDIT .......................................................................................... 48          2.01    The Commitments ........................................................................................................................... 48         2.02    Minimum Amount of Each Borrowing ........................................................................................... 48         2.03    Notice of Borrowing ....................................................................................................................... 48         2.04    Disbursement of Funds ................................................................................................................... 49         2.05    Notes ............................................................................................................................................... 49         2.06    Interest Rate Conversions ............................................................................................................... 50         2.07    Pro Rata Borrowings ....................................................................................................................... 50         2.08    Interest ............................................................................................................................................ 50         2.09    Interest Periods ................................................................................................................................ 51         2.10    Increased Costs, Illegality, etc. ....................................................................................................... 52         2.11    Compensation ................................................................................................................................. 53         2.12    Change of Lending Office ............................................................................................................... 53         2.13    Replacement of Lenders .................................................................................................................. 54         2.14    Extended Term Loans ..................................................................................................................... 54         2.15    Incremental Term Loan Commitments ........................................................................................... 56         2.16    LIBOR Successor Rate ................................................................................................................... 58         2.17    [Reserved] ....................................................................................................................................... 59         2.18    Refinancing Term Loans ................................................................................................................. 59         2.19    Reverse Dutch Auction Repurchases .............................................................................................. 60         2.20    Open Market Purchases .................................................................................................................. 61   SECTION 3.     [RESERVED] ................................................................................................................................. 62   SECTION 4.     FEES; REDUCTIONS OF COMMITMENT ................................................................................. 62          4.01    Fees ................................................................................................................................................. 62         4.02    Mandatory Reduction of Commitments .......................................................................................... 62   SECTION 5.     PREPAYMENTS; PAYMENTS; TAXES ..................................................................................... 63          5.01    Voluntary Prepayments ................................................................................................................... 63         5.02    Mandatory Repayments .................................................................................................................. 63         5.03    Method and Place of Payment ......................................................................................................... 66         5.04    Net Payments .................................................................................................................................. 67   SECTION 6.     CONDITIONS PRECEDENT TO CREDIT EVENTS ON THE CLOSING DATE ..................... 68          6.01    Term Loan Credit Agreement ......................................................................................................... 68         6.02    Opinions of Counsel........................................................................................................................ 68         6.03    Corporate Documents; Proceedings, etc. ........................................................................................ 69                                                  -i- 

 

                                                                                                           6.04    Intercreditor Agreement .................................................................................................................. 69         6.05    Security Agreements ....................................................................................................................... 69         6.06    Subsidiaries Guaranty. .................................................................................................................... 69         6.07    Financial Statements. ...................................................................................................................... 69         6.08    Solvency Certificate ........................................................................................................................ 70         6.09    Fees, etc .......................................................................................................................................... 70         6.10    Representations and Warranties ...................................................................................................... 70         6.11    Patriot Act; Beneficial Ownership Regulation ................................................................................ 70         6.12    Borrowing Notice ............................................................................................................................ 70         6.13    Officer’s Certificate ........................................................................................................................ 70         6.14    [Reserved] ....................................................................................................................................... 70         6.15    Flood Documentation ...................................................................................................................... 70         6.16    Repayment of Existing Indebtedness .............................................................................................. 70   SECTION 7.     CONDITIONS PRECEDENT TO ALL CREDIT EVENTS AFTER THE CLOSING                 DATE .............................................................................................................................................. 71   SECTION 8.     REPRESENTATIONS, WARRANTIES AND AGREEMENTS .................................................. 71          8.01    Organizational Status ...................................................................................................................... 71         8.02    Power and Authority; Enforceability .............................................................................................. 71         8.03    No Violation .................................................................................................................................... 71         8.04    Approvals ........................................................................................................................................ 71         8.05    Financial Statements; Financial Condition ..................................................................................... 72         8.06    Litigation ......................................................................................................................................... 72         8.07    True and Complete Disclosure ........................................................................................................ 72         8.08    Use of Proceeds; Margin Regulations ............................................................................................. 72         8.09    Tax Returns and Payments .............................................................................................................. 73         8.10    ERISA ............................................................................................................................................. 73         8.11    The Security Documents ................................................................................................................. 74         8.12    Properties ........................................................................................................................................ 74         8.13    Capitalization .................................................................................................................................. 74         8.14    Subsidiaries ..................................................................................................................................... 75         8.15    Compliance with Statutes, OFAC Rules and Regulations; Patriot Act; FCPA ............................... 75         8.16    Investment Company Act ................................................................................................................ 75         8.17    [Reserved] ....................................................................................................................................... 75         8.18    Environmental Matters .................................................................................................................... 75         8.19    Labor Relations ............................................................................................................................... 76         8.20    Intellectual Property ........................................................................................................................ 76   SECTION 9.     AFFIRMATIVE COVENANTS ..................................................................................................... 76          9.01    Information Covenants .................................................................................................................... 76         9.02    Books, Records and Inspections; Conference Calls ........................................................................ 79         9.03    Maintenance of Property; Insurance ............................................................................................... 80         9.04    Existence; Franchises ...................................................................................................................... 81         9.05    Compliance with Statutes, etc. ........................................................................................................ 81         9.06    Compliance with Environmental Laws ........................................................................................... 81         9.07    ERISA ............................................................................................................................................. 82         9.08    End of Fiscal Years; Fiscal Quarters ............................................................................................... 82         9.09    [Reserved]. ...................................................................................................................................... 82         9.10    Payment of Taxes ............................................................................................................................ 83         9.11    Use of Proceeds ............................................................................................................................... 83         9.12    Additional Security; Further Assurances; etc. ................................................................................. 83         9.13    Post-Closing Date Actions .............................................................................................................. 84                                                   -ii- 

 

                                                                                                           9.14    Permitted Acquisitions .................................................................................................................... 84         9.15    Credit Ratings ................................................................................................................................. 85         9.16    Designation of Subsidiaries............................................................................................................. 85   SECTION 10.    NEGATIVE COVENANTS ........................................................................................................... 85          10.01   Liens ................................................................................................................................................ 85         10.02   Consolidation, Merger, or Sale of Assets, etc ................................................................................. 89         10.03   Dividends ........................................................................................................................................ 93         10.04   Indebtedness .................................................................................................................................... 96         10.05   Advances, Investments and Loans .................................................................................................. 99         10.06   Transactions with Affiliates .......................................................................................................... 103         10.07   Limitations on Payments, Certificate of Incorporation, By-Laws and Certain Other                  Agreements, etc. ......................................................................................................................... 104         10.08   Limitation on Certain Restrictions on Subsidiaries ....................................................................... 105         10.09   Business ........................................................................................................................................ 106         10.10   Negative Pledges ........................................................................................................................... 107   SECTION 11.    EVENTS OF DEFAULT .............................................................................................................. 108          11.01   Payments ....................................................................................................................................... 108         11.02   Representations, etc. ..................................................................................................................... 108         11.03   Covenants ...................................................................................................................................... 108         11.04   Default Under Other Agreements ................................................................................................. 108         11.05   Bankruptcy, etc. ............................................................................................................................ 109         11.06   ERISA ........................................................................................................................................... 109         11.07   Security Documents ...................................................................................................................... 109         11.08   Guaranties ..................................................................................................................................... 110         11.09   Judgments ..................................................................................................................................... 110         11.10   Change of Control ......................................................................................................................... 110   SECTION 12.    THE ADMINISTRATIVE AGENT ............................................................................................. 110          12.01   Appointment and Authorization .................................................................................................... 110         12.02   Delegation of Duties ..................................................................................................................... 111         12.03   Exculpatory Provisions ................................................................................................................. 111         12.04   Reliance by Administrative Agent ................................................................................................ 112         12.05   No Other Duties, Etc. .................................................................................................................... 112         12.06   Non-reliance on Administrative Agent and Other Lenders ........................................................... 112         12.07   Indemnification by the Lenders .................................................................................................... 112         12.08   Rights as a Lender ......................................................................................................................... 112         12.09   Administrative Agent May File Proofs of Claim; Credit Bidding ................................................ 112         12.10   Resignation of the Agents ............................................................................................................. 114         12.11   Collateral Matters and Guaranty Matters ...................................................................................... 114         12.12   Designated Interest Rate Protection Agreements and Designated Treasury Services                  Agreements ................................................................................................................................ 115         12.13   Withholding Taxes ........................................................................................................................ 115         12.14   Certain ERISA Matters ................................................................................................................. 115   SECTION 13.    MISCELLANEOUS ..................................................................................................................... 116          13.01   Payment of Expenses, etc. ............................................................................................................. 116         13.02   Right of Setoff ............................................................................................................................... 117         13.03   Notices .......................................................................................................................................... 118         13.04   Benefit of Agreement; Assignments; Participations, etc. .............................................................. 119                                                   -iii- 

 

                                                                                                           13.05   No Waiver; Remedies Cumulative ................................................................................................ 122         13.06   Payments Pro Rata ........................................................................................................................ 122         13.07   Calculations; Computations .......................................................................................................... 122         13.08   GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF                  JURY TRIAL ............................................................................................................................. 123         13.09   Counterparts .................................................................................................................................. 124         13.10   [Reserved] ..................................................................................................................................... 124         13.11   Headings Descriptive .................................................................................................................... 124         13.12   Amendment or Waiver; etc. .......................................................................................................... 124         13.13   Survival ......................................................................................................................................... 126         13.14   [Reserved] ..................................................................................................................................... 126         13.15   Confidentiality .............................................................................................................................. 126         13.16   USA Patriot Act Notice ................................................................................................................. 127         13.17   [Reserved] ..................................................................................................................................... 127         13.18   Waiver of Sovereign Immunity ..................................................................................................... 127         13.19   [Reserved] ..................................................................................................................................... 128         13.20   INTERCREDITOR AGREEMENT ............................................................................................. 128         13.21   Absence of Fiduciary Relationship ............................................................................................... 129         13.22   Electronic Execution of Assignments and Certain Other Documents ........................................... 129         13.23   Entire Agreement .......................................................................................................................... 129         13.24   Acknowledgement and Consent to Bail-In of EEA Financial Institutions .................................... 129         13.25   Acknowledgement Regarding Any Supported QFCs.................................................................... 130   SECTION 14.    CREDIT AGREEMENT PARTY GUARANTY ......................................................................... 130          14.01   The Guaranty ................................................................................................................................ 130         14.02   Bankruptcy .................................................................................................................................... 131         14.03   Nature of Liability ......................................................................................................................... 131         14.04   Independent Obligation ................................................................................................................. 131         14.05   Authorization ................................................................................................................................ 131         14.06   Reliance ........................................................................................................................................ 132         14.07   Subordination ................................................................................................................................ 132         14.08   Waiver ........................................................................................................................................... 132         14.09   Maximum Liability ....................................................................................................................... 133         14.10   Payments ....................................................................................................................................... 133         14.11   Keepwell ....................................................................................................................................... 133                                                      -iv- 

 

                                                                                                    SCHEDULE 1.01           Unrestricted Subsidiaries  SCHEDULE 2.01           Commitments  SCHEDULE 2.19(a)        Reverse Dutch Auction Procedures  SCHEDULE 8.12           Real Property  SCHEDULE 8.14           Subsidiaries  SCHEDULE 8.19           Labor Matters  SCHEDULE 9.13           Post-Closing Date Actions  SCHEDULE 10.01(iii)     Existing Liens  SCHEDULE 10.04          Existing Indebtedness  SCHEDULE 10.05(iii)     Existing Investments  SCHEDULE 10.06(viii)    Affiliate Transactions   EXHIBIT A-1             Form of Notice of Borrowing  EXHIBIT A-2             Form of Notice of Conversion/Continuation  EXHIBIT B               Form of Term Note  EXHIBIT C               Form of U.S. Tax Compliance Certificate  EXHIBIT D               [Reserved]  EXHIBIT E               Form of Officers’ Certificate  EXHIBIT F               [Reserved]  EXHIBIT G               Form of Security Agreement  EXHIBIT H               Form of Subsidiaries Guaranty  EXHIBIT I               Form of Solvency Certificate  EXHIBIT J               Form of Compliance Certificate  EXHIBIT K               Form of Assignment and Assumption  EXHIBIT L               [Reserved]  EXHIBIT M               Form of Intercreditor Agreement                                                   -v- 

 

         THIS  TERM  LOAN  CREDIT  AGREEMENT,  dated  as  of  March  2,  2020,  among  VERTIV  INTERMEDIATE  HOLDING  II  CORPORATION  (“Holdings”),  VERTIV  GROUP  CORPORATION  (the  “Borrower”),  the  Lenders  party  hereto  from  time  to  time  and  CITIBANK,  N.A.  (“Citi”),  as  the  Administrative  Agent.  All capitalized terms used herein and defined in Section 1 are used herein as therein defined.                                          W I T N E S S E T H:          WHEREAS, the Borrower has requested that the Lenders make Initial Term Loans under this Agreement  on the Closing Date in an aggregate principal amount of $2,200,000,000, and the Borrower will use the proceeds of  such borrowings to consummate the Transactions and for working capital or for any other purpose not prohibited  under this Agreement; and          WHEREAS, the Lenders have indicated their willingness to lend such Initial Term Loans on the terms and  subject to the conditions set forth herein.           NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the  parties hereto covenant and agree as follows:          Section 1.  Definitions and Accounting Terms.          1.01    Defined  Terms.   As  used  in  this  Agreement,  the  following  terms  shall  have  the  following  meanings:          “ABL Collateral” shall have the meaning provided in the Intercreditor Agreement.          “ABL Credit Agreement” shall mean (i) that certain asset-based revolving credit agreement, as in effect on  the  Closing  Date and  as the  same  may  be amended, amended and restated,  modified, supplemented, extended  or  renewed  from  time  to  time  in  accordance  with  the  terms  hereof  (including  by  reference  to  the  Intercreditor  Agreement)  and  thereof,  among  Holdings,  the  Borrower,  the  other  borrowers  party  thereto,  certain  lenders  party  thereto  and  JPMorgan  Chase  Bank,  N.A.,  as  the  administrative  agent,  and  (ii)  any  other  credit  agreement,  loan  agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing  the terms of any Indebtedness or other financial accommodation that has been incurred to refinance (subject to the  limitations  set  forth  herein  (including  by  reference  to  the  Intercreditor  Agreement))  in  whole  or  in  part  the  Indebtedness and other  obligations outstanding under (x) the credit agreement referred  to  in clause (i) or (y) any  subsequent ABL Credit Agreement, unless such agreement or instrument expressly provides that it is not intended to  be and is not an ABL Credit Agreement hereunder.  Any reference to the ABL Credit Agreement hereunder shall be  deemed a reference to any ABL Credit Agreement then in existence.          “Acquired  Entity  or  Business”  shall  mean  either  (x)  the  assets  constituting  a  business,  division,  product  line, manufacturing facility or distribution facility of any Person not already a Subsidiary of the Borrower, which  assets shall, as a result of the respective acquisition, become assets of the Borrower or a Restricted Subsidiary of the  Borrower (or assets of a Person who shall be merged or amalgamated with and into the Borrower or a Restricted  Subsidiary of the Borrower) or (y) a majority of the Equity Interests of any such Person, which Person shall, as a  result  of  the  respective  acquisition,  become  a  Restricted  Subsidiary  of  the  Borrower  (or  shall  be  merged  or  amalgamated with and into the Borrower or a Restricted Subsidiary of the Borrower).          “Additional Intercreditor Agreement” shall mean an intercreditor agreement among the Collateral Agent  and one or more Junior Representatives for holders of Permitted Junior Debt providing that, inter alia, the Liens on  the Collateral in favor of the Collateral Agent (for the benefit of the Secured Creditors) shall be senior to such Liens  in favor of the Junior Representatives (for the benefit of the holders of Permitted Junior Debt), as such intercreditor  agreement may be amended, amended and restated, modified, supplemented, extended or renewed from time to time  in  accordance  with  the  terms  hereof  and  thereof.   The  Additional  Intercreditor  Agreement  shall  be  in  a  form  customary at such time for transactions of the type contemplated thereby and otherwise reasonably satisfactory to  the Administrative Agent and the Borrower.                                                    1 

 

         “Additional Security Documents” shall have the meaning provided in Section 9.12(a).          “Adjusted  Consolidated  Working  Capital”  shall  mean,  at  any  time,  Consolidated  Current  Assets less  Consolidated Current Liabilities at such time.          “Adjustment” shall have the meaning provided in Section 2.16(a).          “Administrative Agent” shall mean Citi, in its capacity as Administrative Agent for the Lenders hereunder,  and shall include any successor to the Administrative Agent appointed pursuant to Section 12.10.          “Administrative  Questionnaire”  shall  mean  an  administrative  questionnaire  in  the  form  supplied  by  the  Administrative Agent.          “Advisory  Agreement”  shall  mean  that  certain  Corporate  Advisory  Services  Agreement  dated  as  of  November  30,  2016  by  and  among  the  Borrower  and  the  Sponsor,  as  may  be  amended,  amended  and  restated,  modified, supplemented, extended or renewed from time to time prior to the Closing Date, including to the extent  terminated prior to the Closing Date solely to the extent of any obligations that survive the termination thereof.          “Affiliate”  shall  mean,  with  respect  to  any  Person,  any  other  Person  directly  or  indirectly  controlling,  controlled by, or under direct or indirect common control with, such Person.  A Person shall be deemed to control  another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the  management and policies of such other Person, whether through the ownership of voting securities, by contract or  otherwise; provided, however, that neither the Administrative Agent nor any Lender (nor any Affiliate thereof) shall  be considered an Affiliate of the Borrower or any Subsidiary thereof as a result of this Agreement, the extensions of  credit hereunder or its actions in connection therewith.          “Agents” shall mean the Administrative Agent, the Collateral Agent, any sub-agent or co-agent of either of  the foregoing pursuant to the Credit Documents, the Lead Arrangers and Co-Documentation Agents.          “Agreement”  shall  mean  this Term  Loan  Credit  Agreement,  as  may be amended, amended  and  restated,  modified, supplemented, extended or renewed from time to time.          “Anti-Corruption  Laws”  shall  mean  all  laws,  rules,  and  regulations  of  any  jurisdiction  applicable  to  the  Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.          “Applicable Asset Sale/Recovery Event Prepayment Percentage” shall mean, at any time, 100%; provided  that, if, within five (5) Business Days (or such later period as the Administrative Agent shall determine in its sole  discretion) of the receipt of Net Sale Proceeds from the relevant Asset Sale or receipt of Net Insurance Proceeds  from the relevant Recovery Event, the Borrower shall have delivered to the Administrative Agent a certificate of a  Responsible Officer certifying that on a Pro Forma Basis immediately after  giving effect to such  Asset Sale or  Recovery Event, as applicable, and the application of the proceeds thereof, the Consolidated First Lien Net Leverage  Ratio  is  (i)  less  than  or  equal  to  3.30:1.00 but  greater  than  2.80:1.00,  the  Applicable  Asset  Sale/Recovery  Event  Prepayment Percentage with respect to such Net Sale Proceeds or Net Insurance Proceeds shall instead be 50% or  (ii) less than or equal to 2.80:1.00, the Applicable Asset Sale/Recovery Event Prepayment Percentage with respect to  such Net Sale Proceeds or Net Insurance Proceeds shall instead be 0%.          “Applicable ECF Prepayment Percentage” shall mean, at any time, 50%; provided that, if at any time the  Consolidated First  Lien Net  Leverage  Ratio as of  the last day of the fiscal  year  for  which the  Applicable ECF  Prepayment Percentage is calculated (as set forth in an officer’s certificate delivered pursuant to Section 9.01(e) for  such fiscal  year) is (i) less than or equal to 3.30:1.00 but greater than 2.80:1.00, the Applicable ECF Prepayment  Percentage for such fiscal year shall instead be 25% and (ii) less than or equal to 2.80:1.00, the Applicable ECF  Prepayment Percentage for such fiscal year shall instead be 0%.          “Applicable Increased Term Loan Spread” shall mean, with respect to any then outstanding Initial Term  Loans  at  the  time  of  the  provision  of  any  new  Tranche  of  Incremental  Term  Loans  pursuant  to  Section  2.15  or                                                    2 

 

  incurrence of Permitted Pari Passu Loans, in each case, prior to the date that is six (6) months after the Closing Date,  which new Tranche or Permitted Pari Passu Loans are subject to an Effective Yield that is greater than the Effective  Yield applicable to such Initial Term Loans by more than 0.50%, the margin per annum (expressed as a percentage)  mutually  determined  by  the  Administrative  Agent  and  the  Borrower  in  good  faith  (and  notified  by  the  Administrative Agent to the Lenders) as the margin per annum required to cause the Effective Yield applicable to  such then existing Initial Term Loans to equal (i) the Effective Yield applicable to such new Tranche of Incremental  Term  Loans  or  Permitted  Pari  Passu  Loans minus  (ii)  0.50%.   Each  mutual  determination  of  the  “Applicable  Increased Term Loan Spread” by the Administrative Agent and the Borrower shall be conclusive and binding on all  Lenders absent manifest error.          “Applicable  Margin”  shall  mean  a  percentage per  annum  equal  to,  in  the  case  of  Initial  Term  Loans  maintained as (a) Base Rate Term Loans, 2.00% and (b) LIBO Rate Term Loans, 3.00%.          The Applicable Margins for any Tranche of Incremental Term Loans shall be (i) in the case of Incremental  Term Loans added to an existing Tranche, the same as the Applicable Margins for such existing Tranche, and (ii)  otherwise, as specified in the applicable Incremental Term Loan Commitment Agreement; provided that on and after  the date of such incurrence of any Tranche of Incremental Term Loans which gives rise to a determination of a new  Applicable Increased Term Loan Spread, the Applicable Margins for the Initial Term Loans shall be the higher of  (x) the Applicable Increased Term Loan Spread for such Type of Initial Term Loans and (y) the Applicable Margin  for such Type of Initial Term Loans as otherwise determined above in the absence of this clause (x).  The Applicable  Margins for any Tranche of Refinancing Term Loans shall be as specified in the applicable Refinancing Term Loan  Amendment.   The  Applicable  Margins  for  any  Tranche  of  Extended  Term  Loans  shall  be  as  specified  in  the  applicable Extension Amendment.          “Approved Fund” shall mean any Person (other than a natural person (or a holding company, investment  vehicle or trust for, or owned and operated for the primary benefit of, a natural person)) 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) an existing Lender, (b) an Affiliate of an existing Lender or (c) an entity  or an Affiliate of an entity that administers or manages an existing Lender.          “Article 55 BRRD” means Article 55 of Directive 2014/59/EU establishing a framework for the recovery  and resolution of credit institutions and investment firms.          “Asset Sale” shall mean any sale, transfer or other disposition of all or any part of the property or assets by  the Borrower or any of its Restricted Subsidiaries, or entry into any Sale-Leaseback Transaction by the Borrower or  any of its Restricted Subsidiaries, in each case, pursuant to Section 10.02(ii).          “Assignment  and  Assumption”  shall  mean  an  Assignment  and  Assumption  substantially  in  the  form  of  Exhibit K (appropriately completed) or such other form as shall be acceptable to the Administrative Agent and the  Borrower (such approval by the Borrower not to be unreasonably withheld, delayed or conditioned).          “Auction” shall have the meaning provided in Section 2.19(a).          “Auction Manager” shall have the meaning provided in Section 2.19(a).          “Audited Financial Statements” shall have the meaning provided in Section 6.06.          “Available Amount” shall mean, on any date (the “Determination Date”), an amount equal to:                  (a)    the sum of, without duplication:                         (i)    (A)  the  greater  of  $125,000,000  and  25.0%  of  Consolidated  EBITDA  of  the                 Borrower and its Restricted Subsidiaries for the most recently ended Test Period (measured at the                 time of usage of such amount) plus (B) 50% of the Consolidated Net Income (excluding any gain                 on Investments  made in reliance on the  Available Amount), if positive, of the Borrower for the                                                    3 

 

                  period (taken as one accounting period) from January 1, 2020 to the end of the Borrower’s most  recently  ended  fiscal  quarter  for  which  internal  financial  statements  are  available  on  the  Determination Date (or, if such Consolidated Net Income for such period is a deficit, 0%); plus          (ii)   100% of the aggregate net cash proceeds, and the fair market value of property  other  than  cash,  received  by  the  Borrower  since  the  Closing  Date  (A)  as  a  contribution  to  its  common equity capital (including any contribution to its common equity capital from any Parent  Company with the proceeds of any issue or sale by such Parent Company of its Equity Interests)  (other than any (x) Disqualified Stock, (y) Equity Interests sold to a Restricted Subsidiary of the  Borrower  or  pursuant  to  any  management  equity  plan  or  stock  option  plan  or  any  other  management or employee benefit plan or agreement of the Borrower or a Restricted Subsidiary of  the Borrower and (z) Contribution Amounts) or (B) from the issue or sale of Equity Interests of  the Borrower (other than Disqualified Stock and other than sales of Equity Interests to a Restricted  Subsidiary),  in  each  case,  to  the  extent  not  otherwise  applied  to  any  other  basket  or  exception  under this Agreement; plus          (iii)  100% of the aggregate amount of cash  proceeds,  and  the  fair  market value of  property other than cash, received by the Borrower or a Restricted Subsidiary of the  Borrower  from  (A)  the  sale  or  disposition  (other  than  to  the  Borrower  or  a  Restricted  Subsidiary  of  the  Borrower) of Investments made after the Closing Date the permissibility of which was contingent  upon the utilization of the Available Amount and from repayments, repurchases and redemptions  of such Investments from the Borrower and its Restricted Subsidiaries by any Person (other than  the Borrower or its Restricted Subsidiaries); (B) a return, profit, distribution or similar amounts  from an Investment made after the Closing Date the permissibility of which was contingent upon  the  utilization  of  the  Available  Amount,  to  the  extent  that  such  amounts  were  not  otherwise  included in the Consolidated Net Income of the Borrower for such period; (C) the sale (other than  to the Borrower or any of its Restricted Subsidiaries) of the Equity Interests of an Unrestricted  Subsidiary; (D) a distribution or dividend from an Unrestricted Subsidiary, to the extent that such  amounts were not otherwise included in the Consolidated Net Income of the Borrower for such  period; and (E) any Investment that was made after the Closing Date in a Person that is not a  subsidiary at such time that subsequently becomes a Restricted Subsidiary of the Borrower; plus          (iv)   in the event that any Unrestricted Subsidiary of the Borrower designated as such  after  the  Closing  Date  is  redesignated  as  a  Restricted  Subsidiary  or  has  been  merged  or  consolidated with or into or transfers or conveys its assets to, or is liquidated into, the Borrower or  a Restricted Subsidiary of the Borrower, in each case after Closing Date, the fair market value of  the Borrower’s Investment in such Subsidiary as of the date of such redesignation, combination or  transfer (or of the assets transferred or conveyed, as applicable), after deducting any Indebtedness  associated  with  the  Unrestricted  Subsidiary  so  designated  or  combined  or  any  Indebtedness  associated with the assets so transferred or conveyed (other than in each case to the extent that the  designation of such Subsidiary as an Unrestricted Subsidiary constituted an Investment not made  in reliance on the Available Amount); plus          (v)    the amount of Declined Proceeds; plus          (vi)   the aggregate amount of any Leverage Excess Proceeds (which in no event shall  be less than zero for any fiscal year); plus          (vii)  100% of the aggregate net cash proceeds from the issue or sale of Disqualified  Stock of the Borrower or debt securities of the Borrower (other than Disqualified Stock or debt  securities issued or sold to a Restricted Subsidiary), in each case that have been converted into or  exchanged for Equity Interests of the Borrower or any Parent Company (other than Disqualified  Stock);   minus (b) the sum of, without duplication:                                     4 

 

                        (i)    the aggregate amount of all Dividends made by the Borrower and its Restricted                 Subsidiaries  pursuant  to  Section  10.03(xiii)  on  or  after  the  Closing  Date  and  on  or  prior  to  the                 Determination Date;                         (ii)   the  aggregate  amount  of  all  Investments  made  by  the  Borrower  and  its                 Restricted  Subsidiaries  pursuant  to  Section  10.05(xviii)  on  or  after  the  Closing  Date  and  on  or                 prior to the Determination Date; and                         (iii)  the  aggregate  amount  of  repayments,  repurchases,  redemptions  or  defeasances                 of Indebtedness pursuant to Section 10.07(a)(B)(i) on or after the Closing Date and on or prior to                 the Determination Date.          “Bail-In  Action” shall  mean  the exercise of any Write-Down and Conversion Powers  by  the applicable  EEA Resolution Authority in respect of any liability of an EEA Financial Institution.          “Bail-In Legislation” shall mean                  (a)    in relation to an EEA Member Country which has implemented, or which at any time         implements, Article 55 BRRD, the relevant implementing law or regulation as described in the EU Bail-In         Legislation Schedule from time to time; and                   (b)    in relation to any state other than such an EEA Member Country or (to the extent that the         United Kingdom is not such an EEA Member Country) the United Kingdom, any analogous law or         regulation from time to time which requires contractual recognition of any Write-down and Conversion         Powers contained in that law or regulation.          “Bankruptcy Code” shall have the meaning provided in Section 11.05.          “Base Rate” shall mean, 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%, (c) the 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%;  provided that, the LIBO Rate for any day shall be based on the LIBO Rate at approximately 11:00 a.m. London time  on such day and (d) 1.00%.  Any change in the Base Rate due to a change in the Prime Rate, the NYFRB Rate or the  LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB  Rate or the LIBO Rate, respectively.          “Base Rate Term Loan” shall mean each Term Loan which is designated or deemed designated as a Term  Loan bearing interest at the Base Rate by the Borrower at the time of the incurrence thereof or conversion thereto.          “Beneficial Ownership Certification” shall mean a certification regarding beneficial ownership as required  by the Beneficial Ownership Regulation.          “Beneficial Ownership Regulation” shall mean 31 C.F.R. § 1010.230.          “Benefit Plan” shall mean any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to  Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for  purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the  assets of any such “employee benefit plan” or “plan”.           “BHC Act Affiliate” shall have the meaning assigned to the term “affiliate” in, and shall be interpreted in  accordance with, 12 U.S.C. § 1841(k).          “Borrower” shall have the meaning provided in the first paragraph of this Agreement.                                                    5 

 

         “Borrowing” shall mean the borrowing of the same Type of Term Loan pursuant to a single Tranche by the  Borrower from all the Lenders having Commitments with respect to such Tranche on a given date (or resulting from  a conversion or conversions on such date), having, in the case of LIBO Rate Term Loans, the same Interest Period;  provided  that  any  Incremental  Term  Loans  incurred  pursuant  to  Section  2.01(b)  shall  be  considered  part  of  the  related Borrowing of the then outstanding Tranche of Term Loans (if any) to which such Incremental Term Loans  are added pursuant to, and in accordance with the requirements of, Section 2.15(c).          “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks  in New York City are authorized or required by law to remain closed; provided that, when used in connection with a  LIBO  Rate  Term  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” shall mean, with respect to any Person, all expenditures by such Person which are  required to be capitalized in accordance with U.S. GAAP and, without duplication, the amount of Capitalized Lease  Obligations incurred by such Person; provided that Capital Expenditures shall not include (i) the purchase price paid  in connection with a Permitted Acquisition, (ii) the purchase price of equipment that is purchased simultaneously  with the trade-in of existing equipment to the extent that the gross amount of such purchase price is reduced by the  credit  granted  by  the  seller  of  such  equipment  for  such  existing  equipment  being  traded  in  at  such  time,  (iii)  expenditures  made  in  leasehold  improvements,  to  the  extent  reimbursed  by  the  landlord,  (iv)  expenditures  to  the  extent that they are actually paid for by any Person other than a Credit Party or any of its Restricted Subsidiaries and  for  which  no  Credit  Party  or  any  of  its  Restricted  Subsidiaries  has  provided  or  is  required  to  provide  or  incur,  directly  or  indirectly,  any  consideration  or  monetary  obligation  to  such  third  party  or  any  other  Person  (whether  before,  during  or  after  such  period),  (v)  property,  plant  and  equipment  taken  in  settlement  of  accounts  and  (vi)  expenditures made to restore, replace or rebuild property subject to any damage, loss, destruction or condemnation,  to  the  extent  such  expenditures  are  made  with  insurance  proceeds,  condemnation  awards  or  damage  recovery  proceeds relating to any damage, loss, destruction or condemnation.          “Capitalized  Lease  Obligations”  shall  mean,  with  respect  to  any  Person,  all  rental  obligations  of  such  Person which, under U.S. GAAP, are required to be capitalized on the books of such Person, in each case taken at  the amount thereof accounted for as indebtedness in accordance with U.S. GAAP.          “Cash Equivalents” shall mean:                  (i)    U.S.  Dollars,  Canadian  dollars,  pounds  sterling,  euros,  the  national  currency  of  any         participating  member  state  of  the  European  Union  or,  in  the  case  of  any  Foreign  Subsidiary,  such  local         currencies held by it from time to time in the ordinary course of business;                  (ii)   readily  marketable  direct  obligations  of  any  member  of  the  European  Economic  Area,         Switzerland, or Japan, or any agency or instrumentality thereof or obligations unconditionally guaranteed         by the full faith and credit of such country, and, at the time of acquisition thereof, having a credit rating of         at least Aa3 (or the equivalent grade) by Moody’s or AA- by S&P (or an equivalent rating from Fitch);                  (iii)  marketable general obligations issued by (a) any state of the United States or any political         subdivision thereof or any instrumentality thereof that are guaranteed by the full faith and credit of such         state or (b) Canada or any agency or instrumentality thereof that are guaranteed by the full faith and credit         of Canada, and, in each case, at the time of acquisition thereof, having a credit rating of at least Aa3 (or the         equivalent grade) by Moody’s or AA- by S&P (or an equivalent rating from Fitch);                  (iv)   securities or any other evidence of Indebtedness or readily marketable direct obligations         issued  or  directly  and  fully  guaranteed  or  insured  by  the  United  States  government  or  any  agency  or         instrumentality of the United States government, the U.K. government or any agency or instrumentality of         the  U.K.  government,  any  constituent  nation  of  the  U.K.  or  any  agency  or  instrumentality  thereof,  any         member of the European Union or any agency or instrumentality thereof, or the Canadian government or         any agency or instrumentality thereof (provided that the full faith and credit of the United States, the U.K.,         such member, or Canada, as the case may be, is pledged in support of those securities), in such case having         maturities of not more than 24 months from the date of acquisition;                                                   6 

 

                 (v)    certificates of deposit and eurodollar time deposits with maturities of twenty-four months         or less from the date of acquisition, bankers’ acceptances with maturities not exceeding twenty-four months         and  overnight  bank  deposits,  in  each  case,  with  any  Lender  party  to  this  Agreement  or  any  commercial         bank or trust company  having, or  which is  the  principal banking  subsidiary  of  a bank  holding company         having, a long-term unsecured debt rating of at least “A” or the equivalent thereof from S&P or “A2” or the         equivalent thereof from Moody’s (or an equivalent rating from Fitch);                  (vi)   repurchase obligations with a term of not more than thirty days for underlying securities         of the types described in clauses (iv) and (v) above entered into with any financial institution meeting the         qualifications specified in clause (v) above;                  (vii)  commercial paper having one of the two highest ratings obtainable from Moody’s, S&P         or Fitch and, in each case, maturing within twenty-four months after the date of acquisition;                   (viii) money market funds at least 95% of the assets of which constitute Cash Equivalents of         the kinds described in clauses (i) through (vii) of this definition; and                  (ix)   Indebtedness or preferred stock issued by Person having a credit rating of at least A-2 (or         the  equivalent  grade)  by  Moody’s  or  A  by  S&P  (or  an  equivalent  rating  from  Fitch),  maturing  within         twenty-four months after the date of acquisition.          “CERCLA” shall mean the Comprehensive Environmental Response, Compensation, and Liability Act of  1980, as the same has been amended and may hereafter be amended from time to time, 42 U.S.C. § 9601 et seq.          “Change in Law” shall mean the occurrence after the Closing Date or, with respect to any Lender, such  later date on which such Lender becomes a party to this Agreement, of (a) the adoption of or taking effect of any  law,  rule,  regulation  or  treaty,  (b)  any  change  in  any  law,  rule,  regulation  or  treaty  or  in  the  interpretation  or  application  thereof  by  any  Governmental  Authority  or  (c)  compliance  by  any  Lender  (or,  for  purposes  of  Section 2.10(b),  by  any  lending  office  of  such  Lender  or  by  such  Lender’s  holding  company,  if  any)  with  any  request,  guideline  or  directive  (whether  or  not  having  the  force  of  law)  of  any  Governmental  Authority  made  or  issued after such applicable date; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines  or  directives  thereunder  or  issued  in  connection  therewith  and  (y) all  requests,  rules,  guidelines  or  directives  promulgated  by  the  Bank  for  International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or  the United States  or  foreign  regulatory authorities, in each case  pursuant to Basel  III, shall be deemed  to be a  “Change in Law,” regardless of the date enacted, adopted or issued.          “Change of Control” shall be deemed to occur if:                  (a)    any person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Securities         Exchange Act as in effect on the Closing Date), but excluding (x) any employee benefit plan of such person         and its Subsidiaries and any person or entity acting in its capacity as trustee, agent or other fiduciary or         administrator  of  any  such  plan  and  (y)  any  combination  of  Permitted  Holders,  shall  have,  directly  or         indirectly,  acquired  beneficial  ownership  of  Equity  Interests  representing  35%  or  more  of  the  aggregate         voting  power  represented  by  the  issued  and  outstanding  Equity  Interests  of  Ultimate  Parent  and  the         Permitted Holders shall own, directly or indirectly, less than such person or “group” of the aggregate voting         power represented by the issued and outstanding Equity Interests of Ultimate Parent;                   (b)    a “change of control” (or similar event) shall occur under (I) the ABL Credit Agreement,         and (II) the definitive agreements pursuant to which any Refinancing Notes, Refinancing Term Loans or         Indebtedness permitted under Section 10.04(xxvii) or (xxix) was issued or incurred, in each case of this         subclause  (II)  with  an  aggregate  outstanding  principal  amount  in  respect  of  such  series  of  Refinancing         Notes, Refinancing Term Loans or other Indebtedness in excess of the Threshold Amount;                                                     7 

 

                 (c)    Ultimate Parent shall cease to own, directly or indirectly, 100% of the Equity Interests of         Holdings; or                   (d)    Holdings shall cease to own, directly or indirectly, 100% of the Equity Interests of the         Borrower.          Notwithstanding  anything  to  the  contrary  in  this  definition  or  any  provision  of  Section  13d-3  of  the  Securities Exchange Act, no person or “group” shall be deemed to beneficially own Equity Interests to be acquired  by such person or “group” pursuant to a stock or asset purchase agreement, merger agreement, option agreement,  warrant  agreement  or  similar  agreement  until  the  consummation  of  the  acquisition  of  the  Equity  Interests  in  connection with the transactions contemplated by such agreement.          “Citi” shall have the meaning provided in the first paragraph of this Agreement.          “Closing Date” shall mean March 2, 2020.          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.          “Co-Documentation  Agents”  shall  mean,  collectively,  each  Person  identified  on  the  cover  of  this  Agreement as such, in its capacity as such.          “Collateral”  shall  mean  all  property  (whether  real,  personal  or  otherwise)  with  respect  to  which  any  security interests have been granted (or purported to be granted) pursuant to any Security Document (including any  Additional  Security  Documents),  including,  without  limitation,  all  “Collateral”  as  described  in  the  Security  Agreement and all Mortgaged Properties.          “Collateral Agent” shall mean the Administrative Agent acting as collateral agent for the Secured Creditors  pursuant to the Security Documents.          “Commitment”  shall  mean  any  of  the  commitments  of  any  Lender,  whether  an  Initial  Term  Loan  Commitment, Refinancing Term Loan Commitment or an Incremental Term Loan Commitment of such Lender.          “Commodity Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended  from time to time, and any successor statute.          “Consolidated Current Assets” shall mean, at any time, the consolidated current assets of the Borrower and  its Restricted Subsidiaries at such time (other than cash and Cash Equivalents, amounts related to current or deferred  Taxes based on income or profits, assets held for sale, loans to third parties that are permitted under this Agreement,  pension assets, deferred bank fees and derivative financial instruments).          “Consolidated  Current  Liabilities”  shall  mean,  at  any  time,  the  consolidated  current  liabilities  of  the  Borrower and its Restricted Subsidiaries at such time (other than the current portion of any Indebtedness under this  Agreement,  the  current  portion  of  any  other  long-term  Indebtedness  which  would  otherwise  be  included  therein,  accruals of  Interest  Expense (excluding Interest Expense that is due and unpaid),  accruals for  current  or deferred  Taxes based on income or profits, accruals of any costs or expenses related to restructuring reserves to the extent  permitted to be included in the calculation of Consolidated EBITDA and the current portion of pension liabilities).          “Consolidated Depreciation and Amortization Expense” shall mean, with respect to any Person, for any  period, the total amount of depreciation and amortization expense, including (i) amortization of deferred financing  fees and debt issuance costs, commissions, fees and expenses, (ii) amortization of unrecognized prior service costs  and  actuarial  gains  and  losses  related  to  pensions  and  other  post-employment  benefits  and  (iii)  amortization  of  intangibles  (including,  without  limitation,  amortization  of  turnaround  costs,  goodwill  and  organizational  costs)  (excluding any such adjustment to the extent that it represents an accrual of or reserve for cash expenditures in any  future period except  to  the extent such adjustment  is  subsequently reversed),  in each  case  of such  Person and its  Restricted Subsidiaries for such period on a consolidated basis in accordance with U.S. GAAP.                                                    8 

 

         “Consolidated EBITDA” shall mean, with respect to any Person for any period, Consolidated Net Income  of such Person for such period; plus (without duplication):                  (i)    provision for taxes based on income, profits or capital (including state franchise taxes and         similar taxes in the nature of income tax) of such Person and its Restricted Subsidiaries for such period,         franchise  taxes  and  foreign  withholding  taxes  and  including  an  amount  equal  to  the  tax  distributions         actually made to the holders of the Equity Interests of such Person or any direct or indirect parent of such         Person in respect of such period in accordance with Section 10.03(vi) as though such amounts had been         paid as income taxes directly by such Person, in each case, to the extent that such provision for taxes was         deducted in computing such Consolidated Net Income; plus                  (ii)   Consolidated Depreciation and Amortization Expense of such Person and its  Restricted         Subsidiaries for such period, to the extent such expenses were deducted in computing such Consolidated         Net Income; plus                  (iii)  the Fixed Charges of such Person and its Restricted Subsidiaries for such period, to the         extent that such Fixed Charges were deducted in computing such Consolidated Net Income; plus                  (iv)   any  other  non-cash  losses,  charges  and  expenses  of  such  Person  and  its  Restricted         Subsidiaries  (including  write-offs  and  write-downs)  for  such  period,  to  the  extent  that  such  non-cash         charges were included in computing such Consolidated Net Income; provided that  if  any  such  non-cash         charge represents an accrual or reserve for anticipated cash charges in any future period, (i) such Person         may  determine  not  to  add  back  such  non-cash  charge  in  the  period  for  which  Consolidated  EBITDA  is         being calculated; provided that the aggregate amount of such non-cash charges not so added back in such         period shall not exceed, when aggregated with amounts not added back pursuant to the proviso at the end of         this  definition,  $10,000,000  and  (ii)  to  the  extent  such  Person  does  decide  to  add  back  such  non-cash         charge, the cash payment in respect thereof in such future period shall be subtracted from Consolidated         EBITDA to such extent, and excluding amortization of a prepaid cash item that was paid in a prior period;         plus                  (v)    any  losses  from  foreign  currency  transactions  (including  losses  related  to  currency         remeasurements  of  Indebtedness)  of  such  Person  and  its  Restricted  Subsidiaries  for  such  period,  to  the         extent that such losses were taken into account in computing such Consolidated Net Income; plus                  (vi)   (a)  the  Specified  Permitted  Adjustments  and  (b)  any  other  cost  savings,  operating         expense reductions, operating improvements and synergies permitted to be added back to this definition         pursuant to the definition of “Pro Forma Cost Savings” (including, without limitation, expenses attributable         to  the  implementation  of  such  cost  savings  initiatives  and  costs  and  expenses  related  to  employment  of         terminated employees incurred by such Person during such period to the extent such costs and expenses         were deducted in computing Consolidated Net Income); plus                  (vii)  losses  in  respect  of  post-retirement  benefits  of  such  Person  and  its  Restricted         Subsidiaries, as a result of the application of ASC 715, Compensation-Retirement Benefits,  to  the extent         that such losses were deducted in computing such Consolidated Net Income; plus                  (viii) the amount of fees, indemnities and expenses incurred or reimbursed by such Person and         its Restricted Subsidiaries pursuant to Sections 10.06(v) and 10.06(vii)  hereunder; plus                  (ix)   any  proceeds  from  business  interruption  insurance  received  by  such  Person  and  its         Restricted Subsidiaries during such period, to the extent the associated losses arising out of the event that         resulted  in  the  payment  of  such  business  interruption  insurance  proceeds  were  included  in  computing         Consolidated Net Income; plus                  (x)    [reserved]; plus                                                    9 

 

                 (xi)   any contingent  or  deferred payments (including,  without  limitation, earn-out  payments,         noncompete  payments  and  consulting  payments)  incurred  in  connection  with  any  acquisition  or  other         Investment and paid or accrued during the applicable period; plus                  (xii)  [reserved]; plus                  (xiii) the  amount  of  any  interest  expense  consisting  of  Subsidiary  income  attributable  to         minority equity interests of third parties in any Restricted Subsidiary of such Person that is not a Wholly-        Owned Restricted Subsidiary of such Person; minus                  (xiv)  the amount of any gain in respect of post-retirement benefits as a result of the application         of ASC 715, to the extent such gains were taken into account in computing such Consolidated Net Income;         minus                  (xv)   any  gains  from  foreign  currency  transactions  (including  gains  related  to  currency         remeasurements  of  Indebtedness)  of  such  Person  and  its  Restricted  Subsidiaries  for  such  period,  to  the         extent that such gains were taken into account in computing such Consolidated Net Income; minus                  (xvi)  non-cash gains increasing such Consolidated Net Income for such period, other than the         accrual of revenue in the ordinary course of business and other than reversals of an accrual or reserve for a         potential cash item that reduced Consolidated EBITDA in any prior period;           provided,  that  the  Borrower  may,  in  its  sole  discretion,  elect  to  not  make  any  adjustment  for  any  item  pursuant to the foregoing clauses (i) through (xvi) above if any such item individually is less than $2,000,000 in any  fiscal quarter; provided, further that the aggregate amount  of such items  not added back  in such period shall not  exceed, when aggregated with amounts not added back pursuant to clause (iv)(i) of this definition, $10,000,000.          “Consolidated First Lien Net Leverage Ratio” shall mean, at any time, the ratio of (i) Consolidated First  Lien Secured Debt at such time to (ii) Consolidated EBITDA for the Test Period then most recently ended.  If the  Consolidated First  Lien Net Leverage Ratio is being determined for a given Test Period, Consolidated First Lien  Secured Debt shall be measured on the last day of such Test Period, with Consolidated EBITDA being determined  for such period.          “Consolidated  First  Lien  Secured  Debt”  shall  mean,  at  any  time,  (i)  the  sum  of  all  Consolidated  Indebtedness  at  such  time  that  is  secured  by  a  Lien  on  any  assets  of  the  Borrower  or  any  of  its  Restricted  Subsidiaries, less (ii) the aggregate principal amount of Indebtedness of the Borrower and its Restricted Subsidiaries  at such time that is secured  solely by a Lien on the assets of the Borrower and its Restricted Subsidiaries that is  junior  to  the  Lien  securing  the  Obligations, less (iii)  the  aggregate  amount  of  (a)  unrestricted  cash  and  Cash  Equivalents  and  (b)  cash  and  Cash  Equivalents  restricted  solely  in  favor  of  or  pursuant  to  the  ABL  Credit  Agreement  and  the  credit  documents  related  thereto,  any  Credit  Document,  any  Permitted  Pari  Passu  Notes  Documents,  any  Permitted  Pari  Passu  Loan  Documents,  any  Refinancing  Note  Documents  or  Refinancing  Term  Loan Documents in respect of Refinancing Notes or Refinancing Term Loans that rank pari passu with the Term  Loans  and  any  Permitted  Junior  Debt  Documents  (to  the  extent  such  cash  and  Cash  Equivalents  also  secure  the  Indebtedness hereunder on a senior priority basis), in each case, calculated on a Pro Forma Basis.          “Consolidated Indebtedness” shall mean, at any time, the sum of (without duplication) (i) all Capitalized  Lease  Obligations  of  the  Borrower  and  its  Restricted  Subsidiaries,  (ii)  all  Indebtedness  of  the  Borrower  and  its  Restricted  Subsidiaries  of  the  type  described  in  clause  (i)(A)  of  the  definition  of  “Indebtedness”  and  (iii)  all  Contingent  Obligations  of  the  Borrower  and  its  Restricted  Subsidiaries  in  respect  of  Indebtedness  of  any  third  Person of the type referred to in the preceding clauses (i) and (ii), in each case, determined on a consolidated basis in  accordance with U.S. GAAP and calculated on a Pro Forma Basis; provided that Consolidated Indebtedness shall  not include Indebtedness in respect of any Refinancing Notes or Permitted Notes that have been defeased or satisfied  and discharged in accordance with the applicable indenture or with respect to which the required deposit has been  made  in  connection  with  a  call  for  repurchase  or  redemption  to  occur  within  the  time  period  set  forth  in  the  applicable indenture, in each case to the extent such transactions are permitted by Section 10.07(a).                                                   10 

 

         “Consolidated Net Income” shall mean, with respect to any specified Person for any period, the aggregate  of  the  net  income  (loss)  of  such  Person  and  its  Restricted  Subsidiaries  for  such  period,  on  a  consolidated  basis,  determined in accordance with U.S. GAAP; provided that:                  (i)    any after-tax effect of all extraordinary (as determined in accordance with U.S. GAAP         prior to giving effect to Accounting Standards Update No. 2015-01, Income Statement—Extraordinary and         Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept         of Extraordinary Items), nonrecurring or unusual gains or losses or income or expenses (including related         to the Transactions) or any restructuring charges or reserves, including, without limitation, any expenses or         charges related to any reconstruction, recommissioning or reconfiguration of fixed assets for alternate uses,         retention, severance, system establishment cost, contract termination costs, costs to consolidate facilities         and  relocate  employees,  advisor  fees  and  other  out  of  pocket  costs  and  non-cash  charges  to  assess  and         execute operational improvement plans and restructuring programs, will be excluded;                  (ii)   any expenses, costs or charges incurred, or any amortization thereof for such period, in         connection with any equity issuance, Investment, acquisition, disposition, recapitalization or incurrence or         repayment of, or amendment or waiver of the operative documents with respect to, Indebtedness permitted         under this Agreement, including a refinancing thereof (in each case whether or not successful) (including         any such costs and charges incurred in connection with the Transactions), and all gains and losses realized         in  connection  with  any  business  disposition  or  any  disposition  of  assets  outside  the  ordinary  course  of         business  or  the  disposition  of  securities  or  the  early  extinguishment  of  Indebtedness  or  other  derivative         instruments, together with any related provision for taxes on any such gain, loss, income or expense will be         excluded;                  (iii)  the  net  income  (or  loss)  of  any  Person  that  is  not  a  Restricted  Subsidiary  or  that  is         accounted  for  by  the  equity  method  of  accounting  will  be  excluded;  provided that  the  income  of  such         Person will be included to the extent of the amount of dividends or similar distributions paid in cash (or         converted to cash) to the specified Person or a Restricted Subsidiary of the Person;                  (iv)   the net income (or loss) of any Person and its Restricted Subsidiaries will be calculated         without deducting the income attributed to, or adding the losses attributed to, the minority equity interests         of third parties in any non-Wholly-Owned Restricted Subsidiary except to the extent of the dividends paid         in cash (or convertible into cash) during such period on the shares of Equity Interests of such Restricted         Subsidiary held by such third parties;                  (v)    solely for the purpose of determining the amount available under clause (a)(i)(B) of the         definition of “Available  Amount”, the net income (but not loss) of any Restricted Subsidiary (other than         any  Guarantor)  will  be  excluded  to  the  extent  that  the  declaration  or  payment  of  dividends  or  similar         distributions by that Restricted Subsidiary of that net income is not at the date of determination permitted         without any prior governmental approval (that has not been obtained) or, directly or indirectly, by operation         of the terms of its charter or any Requirement of Law, unless such restrictions with respect to the payment         of dividends or similar distributions have been legally waived; provided that the Consolidated Net Income         of  such  Person  will  be increased  by the  amount  of dividends  or distributions or other payments  actually         paid in  cash (or converted to cash) by any  such  Restricted  Subsidiary to  such  Person in respect  of  such         period, to the extent not already included therein;                  (vi)   the cumulative effect of any change in accounting principles will be excluded;                  (vii)  (a) any non-cash expenses resulting from the grant or periodic remeasurement of stock         options,  restricted stock  grants or other equity  incentive programs  (including  any stock  appreciation and         similar  rights)  and  (b)  any  costs  or  expenses  incurred  pursuant  to  any  management  equity  plan  or  stock         option  plan  or  other  management  or  employee  benefit  plan  or  agreement  or  any  stock  subscription  or         shareholder agreement, to the extent, in the case of clause (b), that such costs or expenses are funded with         cash proceeds contributed to the common equity capital of the Borrower or a Restricted Subsidiary of the         Borrower, will be excluded;                                                   11 

 

                          (viii) the effect of any non-cash impairment charges or write-ups, write-downs or write-offs of  assets or liabilities resulting from the application of U.S. GAAP and the amortization of intangibles arising  from the  application of U.S.  GAAP,  including pursuant  to ASC 805, Business  Combinations,  ASC 350,  Intangibles-Goodwill  and  Other,  or  ASC  360, Property, Plant  and  Equipment,  as  applicable,  will  be  excluded;           (ix)   any net after-tax income or loss from disposed, abandoned or discontinued operations and  any net after-tax gains or losses on disposed, abandoned or discontinued, transferred or closed operations  will be excluded;           (x)    any increase in amortization  or depreciation, or effect  of  any adjustments to inventory,  property, plant or equipment, software, goodwill and other intangibles, debt line items, deferred revenue or  rent  expense,  any  one  time  cash  charges  (such  as  purchased  in  process  research  and  development  or  capitalized manufacturing profit in inventory) or any other effects, in each case, resulting from purchase  accounting in connection with the Transactions or any other acquisition prior to or following the Closing  Date will be excluded;           (xi)   an  amount  equal  to  the  tax  distributions  actually  made  to  the  holders  of  the  Equity  Interests  of  such  Person  or  any  direct  or  indirect  parent  of  such  Person  in  respect  of  such  period  in  accordance with Section 10.03(vi) will be included as though such amounts had been paid as income taxes  directly by such Person for such period;           (xii)  unrealized  gains  and  losses  relating  to  foreign  currency  transactions,  including  those  relating  to  mark-to-market  of  Indebtedness  resulting  from  the  application  of  U.S.  GAAP,  including  pursuant  to  ASC  830, Foreign  Currency  Matters,  (including  any  net  loss  or  gain  resulting  from  hedge  arrangements for currency exchange risk) will be excluded;           (xiii) any net gain or loss from obligations under Interest Rate Protection Agreements or Other  Hedging Agreements or in connection with the early extinguishment of Indebtedness or obligations under  Interest Rate Protection Agreements or Other Hedging Agreements (including of ASC 815, Derivatives and  Hedging) will be excluded;            (xiv)  the amount of any restructuring, business optimization, acquisition and integration costs  and  charges  (including,  without  limitation,  retention,  severance,  systems  establishment  costs,  excess  pension  charges,  information  technology  costs,  rebranding  costs,  recruiting  and  signing  bonuses  and  expenses,  contract  termination  costs,  including  future  lease  commitments,  costs  related  to  the  start-up  (including  entry  into  new  market/channels  and  new  service  offerings),  preopening,  opening,  closure  or  relocation, reconfiguration or consolidation of facilities and costs to relocate employees, systems, facilities  or equipment conversion costs, consulting fees, costs associated with tax projects and audits) or other fees  related to any of the foregoing (including any such costs, charges and fees incurred in connection with the  Transactions) will be excluded;            (xv)   accruals and reserves that are established or adjusted within 18 months after the Closing  Date that are so required to be established as a result of the Transactions in accordance with U.S. GAAP  will be excluded;           (xvi)  all  amortization  and  write-offs  of  deferred  financing  fees,  debt  issuance  costs,  commissions,  fees  and  expenses,  costs  of  surety  bonds,  charges  owed  with  respect  to  letters  of  credit,  bankers’ acceptances or similar facilities, and expensing of any bridge, commitment or other financing fees  (including in connection with a transaction undertaken but not completed), will be excluded;           (xvii) losses, charges and expenses that are covered by indemnification or other reimbursement  provisions in connection with any asset disposition will be excluded to the extent actually reimbursed, or so  long  as  such  Person  has  made  a  determination  that  a  reasonable  basis  exists  for  indemnification  or  reimbursement,  but only  to  the extent  that  such amount  is  in  fact indemnified  or  reimbursed  within  365                                            12 

 

         days of such determination (with a deduction in the applicable future period for any amount so added back         to the extent not so indemnified or reimbursed within such 365 days); and                  (xviii) cash dividends or returns of capital from Investments in Persons other than the Borrower         and the Restricted Subsidiaries (such return of capital limited to gains on dispositions of Investments), in         each case received during such period, to the extent not otherwise included in Consolidated Net Income for         that period or any prior period subsequent to the Closing Date will be included;          provided,  that  the  Borrower  may,  in  its  sole  discretion,  elect  to  not  make  any  adjustment  for  any  item  pursuant to the foregoing clauses (i) through (xviii) above if any such item individually is less than $2,000,000 in  any fiscal quarter; provided, further that the aggregate amount of such adjustments not included in any such fiscal  quarter shall not exceed $10,000,000.           “Consolidated  Total  Assets”  shall  mean,  as  of  any  date  of  determination,  the  amount  that  would,  in  conformity with U.S. GAAP, be set forth opposite the caption “total assets” (or any like caption) on a consolidated  balance sheet of the Borrower and the Restricted Subsidiaries at such date.          “Consolidated  Total  Net  Leverage  Ratio”  shall  mean,  at  any  time,  the  ratio  of  (x)  Consolidated  Indebtedness at such time, less the aggregate amount of (a) unrestricted cash and Cash Equivalents and (b) cash and  Cash Equivalents restricted solely in favor of or pursuant to the ABL Credit Agreement and the credit documents  related thereto, any Credit Document, any Permitted Pari Passu Notes Documents, any Permitted Pari Passu Loan  Documents,  any  Refinancing  Note  Documents  or  Refinancing  Term  Loan  Documents  in  respect  of  Refinancing  Notes  or  Refinancing  Term  Loans  that  rank pari  passu  with  the  Term  Loans  and  any  Permitted  Junior  Debt  Documents  (to  the  extent  such  cash  and  Cash  Equivalents  also  secure  the  Indebtedness  hereunder  on  a  senior  priority basis) to (y) Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the Test Period then  most recently ended.  If the Consolidated Total Net Leverage Ratio is being determined for a given Test Period,  Consolidated Indebtedness shall be measured on the last day of such Test Period, with Consolidated EBITDA being  determined for such Test Period.          “Contingent  Obligation” shall mean, as  to  any Person, any  obligation of  such Person  as  a result of  such  Person being a general partner of any other Person, unless the underlying obligation is expressly made non-recourse  as  to  such  general  partner,  and  any  obligation  of  such  Person  guaranteeing  or  intended  to  guarantee  any  Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or  indirectly,  including,  without  limitation,  any  such  obligation  of  such  Person,  whether  or  not  contingent,  (i)  to  purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance  or supply funds (x) for the purchase or payment of any such primary obligation or (y) to maintain working capital or  equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii)  to  purchase  property,  securities  or  services  primarily  for  the  purpose  of  assuring  the  owner  of  any  such  primary  obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to  assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that  the  term  Contingent  Obligation  shall  not  include  endorsements  of  instruments  for  deposit  or  collection  in  the  ordinary course of business.  The amount of any Contingent Obligation shall be deemed to be an amount equal to the  stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made or,  if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such  Person in good faith.          “Contract Consideration” shall have the meaning provided to such term in the definition of “Excess Cash  Flow.”          “Contribution Amounts” shall mean the aggregate amount of capital contributions applied by the Borrower  to permit the incurrence of Contribution Indebtedness pursuant to Section 10.04(xxiv).          “Contribution Indebtedness” shall mean Indebtedness of the Borrower or any Restricted Subsidiary in an  aggregate  principal  amount  at  any  time  outstanding  not  greater  than  100%  of  the  aggregate  amount  of  cash  contributions (other than the proceeds from the issuance of Disqualified Stock and contributions by the Borrower or  any Restricted Subsidiary) made to the capital of the Borrower after the Closing Date (whether through the issuance                                                  13 

 

  or  sale  of  capital  stock  or  otherwise),  in  each  case,  to  the  extent  not  otherwise  applied  to  increase  the  Available  Amount or any other basket or exception under this Agreement; provided that the maturity date of such Contribution  Indebtedness is no earlier than the Latest Maturity Date as of the date such Contribution Indebtedness was incurred.          “Covered Entity”  shall  mean  any of  the  following:  (i) a  “covered  entity” as that  term  is defined in, and  interpreted  in  accordance  with,  12  C.F.R.  §  252.82(b);  (ii)  a  “covered  bank”  as  that  term  is  defined  in,  and  interpreted  in  accordance  with,  12  C.F.R.  §  47.3(b);  or  (iii)  a  “covered  FSI”  as  that  term  is  defined  in,  and  interpreted in accordance with, 12 C.F.R. § 382.2(b).          “Covered Party” shall have the meaning provided in Section 13.25.          “Credit Agreement Party Guaranty” shall mean the guaranty of Holdings pursuant to Section 14.          “Credit Documents” shall mean this Agreement and, after the execution and delivery thereof pursuant to  the  terms  of  this  Agreement,  each  Note,  each  Subsidiaries  Guaranty,  each  Security  Document,  the  Intercreditor  Agreement,  any  Additional  Intercreditor  Agreement,  any  Pari Passu  Intercreditor  Agreement,  each  Incremental  Term Loan Commitment Agreement, each Refinancing Term Loan Amendment and each Extension Amendment.          “Credit Event” shall mean the making of any Term Loan.          “Credit Party” shall mean Holdings, the Borrower and each Subsidiary Guarantor.          “Debtor  Relief  Laws”  shall  mean  the  Bankruptcy  Code  of  the  United  States,  and  all  other  liquidation,  conservatorship,  bankruptcy,  assignment  for  the  benefit  of  creditors,  moratorium,  rearrangement,  receivership,  insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from  time to time in effect.          “Declined Proceeds” shall have the meaning provided in Section 5.02(k).          “Default”  shall  mean  any  event,  act  or  condition  which  with  notice  or  lapse  of  time,  or  both,  would  constitute an Event of Default.          “Default  Right”  shall  have  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” shall mean, any Lender that (a) has failed to (i) fund all or any portion of its Loans  within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies  the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination  that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable  default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent  or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when  due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its  funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement  relates to such lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s  determination  that  a  condition  precedent  to  funding  (which  condition  precedent,  together  with  any  applicable  default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within  three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to  the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder  (provided that such  Lender shall cease to be a Defaulting  Lender pursuant to this clause (c) upon receipt of such  written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent  company  that  has,  (i)  become  the  subject  of  (A)  a  proceeding  under  any  Debtor  Relief  Law  (other  than  via  an  Undisclosed Administration) or (B) a Bail-In Action, or (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; provided that a Lender shall  not be a Defaulting  Lender solely  by                                                   14 

 

  virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company  thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender  with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or  writs  of  attachment  on  its  assets  or  permit  such  Lender  (or  such  Governmental  Authority)  to  reject,  repudiate,  disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative  Agent  that  a  Lender  is  a  Defaulting  Lender  under  any  one  or  more  of  clauses  (a)  through  (d)  above,  and  of  the  effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed  to be a Defaulting Lender of the date established therefor by the Administrative Agent in a written notice of such  determination,  which  shall  be  delivered  by  the  Administrative  Agent  to  the  Borrower  and  each  other  Lender  promptly following such determination.           “Designated Interest Rate Protection Agreement” shall mean each Interest Rate Protection Agreement and  Other Hedging Agreements entered into by the Borrower or any of its Restricted Subsidiaries with a Guaranteed  Creditor secured by the Security Documents.  It is hereby understood that an Interest Rate Protection Agreement  may not be a Designated Interest Rate Protection Agreement to the extent it is similarly treated as such under the  ABL Credit Agreement.  Notwithstanding the foregoing, in no event shall any agreement evidencing any Excluded  Swap Obligation with respect to a Subsidiary Guarantor constitute a Designated Interest Rate Protection Agreement  with respect to such Subsidiary Guarantor.          “Designated Non-cash Consideration” shall mean the fair market value of non-cash consideration received  by  the Borrower or one of its Restricted Subsidiaries in connection  with an  Asset Sale that is so designated as  Designated Non-cash Consideration pursuant to an officers’ certificate, setting forth the basis of such valuation, less  the amount of cash and Cash Equivalents received in connection with a subsequent sale of such Designated Non- cash Consideration.          “Designated Treasury Services Agreement” shall mean each Treasury Services Agreement entered into by  the Borrower or any of its Restricted Subsidiaries with a Guaranteed Creditor secured by the Security Documents.  It  is hereby understood that a Treasury Services Agreement may not be a Designated Treasury Services Agreement to  the extent it is similarly treated as such under the ABL Credit Agreement.          “Determination Date” shall have the meaning provided in the definition of the term “Available Amount”.          “Disqualified Lender” shall mean (a) competitors of Ultimate Parent, the Borrower and its Subsidiaries,  and any person controlling or controlled by any such competitor, in each case identified in writing by the Borrower  (or its counsel) to the  Administrative  Agent at any  time, (b) institutions previously designated in  writing by the  Borrower to the Administrative Agent on or prior to the Closing Date and (c) any affiliates of any such competitors,  controlling or controlled persons or institutions reasonably identifiable as affiliates solely on the basis of their names  (other than bona fide fixed income investors or debt funds that are affiliates of competitors described in clause (a)  above but not of institutions described in clause (b) above) or identified by the Borrower (or its counsel) in writing  to the Administrative Agent at any time (it being understood that any update pursuant to clause (a) or clause (c)  above shall not become effective until the third Business Day following the Administrative Agent’s receipt of such  notice, and, in any event, shall not apply retroactively or to any entity that is party to a pending trade as of the date  of such notice).          “Disqualified Stock” shall mean, with respect to any Person, any capital stock of such Person other than  common Equity Interests or Qualified Preferred Stock of such Person.          “Dividend” shall mean, with respect to any Person, that such Person has paid a dividend, distribution or  returned  any  equity  capital  to  its  stockholders,  partners  or members  or  made  in  respect  of  its  Equity  Interests  or  caused to be made any other payment or delivery of property (other than common Equity Interests of such Person) to  its stockholders, partners or members as such in respect of its Equity Interests, or redeemed, retired, purchased or  otherwise acquired, directly or indirectly, for consideration any shares of any class of its Equity Interests outstanding  on or after the Closing Date (or any options or warrants issued by such Person with respect to its Equity Interests).          “Domestic  Subsidiary”  shall  mean,  as  to  any  Person,  any  Subsidiary  of  such  Person  incorporated  or  organized under the laws of the United States, any state thereof or the District of Columbia.                                                  15 

 

         “EEA Financial Institution” shall mean (a) any institution 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 institution established in an  EEA Member Country which is a subsidiary of an institution described in clause (a) or (b) of this definition and is  subject to consolidated supervision with its parent.          “EEA  Member  Country”  shall  mean  any  of  the  member  states  of  the  European  Union,  Iceland,  Liechtenstein, and Norway.          “EEA Resolution Authority” shall mean any public administrative authority or any Person entrusted with  public administrative authority of any EEA Member Country (including any delegee) having responsibility for the  resolution of any EEA Financial Institution.          “Effective Yield” shall mean, as to any Term Loan or other Indebtedness, the effective yield on such Term  Loan or other Indebtedness as mutually determined by the Administrative Agent and the Borrower in good faith,  taking  into  account  the  applicable  interest  rate  margins,  any  interest  rate  floors  or  similar  devices  and  all  fees,  including upfront or similar fees or original issue discount (amortized over the shorter of (x) the Weighted Average  Life to Maturity of such Term Loan or other Indebtedness and (y) the four years following the date of incurrence  thereof)  payable  generally  to  lenders  providing  such  Term  Loan  or  other  Indebtedness,  but  excluding  any  arrangement, structuring, commitment, underwriting, ticking or other fees payable in connection therewith that are  not  generally  shared  with  the  relevant  lenders  and  customary  consent  fees  paid  generally  to  consenting  lenders.   Each  mutual  determination  of  the  “Effective  Yield”  by  the  Administrative  Agent  and  the  Borrower  shall  be  conclusive and binding on all Lenders absent manifest error.          “Eligible Transferee” shall mean and include any existing Lender, any Approved Fund or any commercial  bank, an insurance company, a finance company, a financial institution, any fund that invests in loans or any other  “accredited investor” (as defined in Regulation D of the Securities Act) but in any event excluding (i) any natural  person,  (ii)  any  Disqualified  Lender  and  (iii)  except  to  the  extent  provided  in  Sections  2.19,  2.20  and  13.04(d),  Holdings, the Borrower and their respective Subsidiaries.          “Environment” shall mean ambient air, indoor air, surface water, groundwater, drinking water, land surface  and sub-surface strata and natural resources such as wetlands, flora and fauna.          “Environmental  Claims”  shall  mean  any  and  all  administrative,  regulatory  or  judicial  actions,  suits,  demands,  demand  letters,  directives,  claims,  liens,  notices  of  noncompliance  or  violation,  investigations  and/or  proceedings arising under or pursuant to any Environmental Law or any permit issued, or any approval given, under  any such Environmental Law, including, without limitation, (a) any and all Environmental Claims by governmental  or  regulatory  authorities  for  enforcement,  investigation,  cleanup,  removal,  response,  remedial  or  other  actions  or  damages pursuant to any applicable Environmental Law, and (b) any and all Environmental Claims by any third  party seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief arising out of  or relating to an alleged injury or threat of injury to human health, safety or the Environment due to the presence of  Hazardous Materials, including any Release or threat of Release of any Hazardous Materials.          “Environmental  Law”  shall  mean  any  federal,  state,  provincial,  foreign  or  local  statute,  law,  rule,  regulation, ordinance, code, binding guideline and rule of common law, now or hereafter in effect and in each case  as amended, and any judicial or administrative interpretation thereof, including any judicial or administrative order,  consent decree or judgment, relating to pollution or protection of the Environment, occupational health or Hazardous  Materials.          “Equity  Interests”  of  any  Person  shall  mean  any  and  all  shares,  interests,  rights  to  purchase,  warrants,  options, participations or other equivalents of or interests in (however designated) equity of such Person, including  any  preferred  stock,  any  limited  or  general  partnership  interest  and  any  limited  liability  company  membership  interest,  but  excluding,  for  the  avoidance  of  doubt,  any  Indebtedness  convertible  into  or  exchangeable  for  the  foregoing.                                                   16 

 

         “Equivalent Amount” shall mean, at any time, (a) with respect to any amount denominated in U.S. Dollars,  such amount, and (b) with respect to any amount denominated in any currency other than U.S. Dollars, the  equivalent amount thereof in U.S. Dollars as determined by the Administrative Agent, at such time on the basis of  the Exchange Rate for the purchase of U.S. Dollars with such currency as of the close of business on the  immediately preceding Business Day.          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to  time, and, unless the context indicates otherwise, the regulations promulgated and rulings issued thereunder.  Section  references to ERISA are to ERISA, as in effect at the date of this Agreement and any successor Section thereof.          “ERISA Affiliate” shall mean each person (as defined in Section 3(9) of ERISA) which together with the  Borrower  or  a  Restricted  Subsidiary  of  the  Borrower  would  be  deemed  to  be  a  “single  employer”  within  the  meaning of Section 414(b) or (c) of the Code and solely with respect to Section 412 of the Code, Section 414(b), (c),  (m) or (o) of the Code.          “ERISA  Event”  shall  mean  (a)  any  “reportable  event,”  as  defined  in  Section  4043  of  ERISA  or  the  regulations issued thereunder, but excluding any event for which the 30-day notice period is waived with respect to a  Plan, (b) any failure to make a required contribution to any Plan that would result in the imposition of a Lien or  other encumbrance or the failure to satisfy the minimum funding standards set forth in Sections 412 or 430 of the  Code or Sections 302 or 303 of ERISA, or the arising of such a Lien or encumbrance, with respect to a Plan, (c) the  incurrence by the Borrower, a Restricted Subsidiary of the Borrower, or an ERISA Affiliate of any liability under  Title IV of ERISA with respect to the termination of any Plan or the withdrawal or partial withdrawal (including  under Section 4062(e) of ERISA) of any of the Borrower, a Restricted Subsidiary of the Borrower, or an ERISA  Affiliate from any Plan or Multiemployer Plan, (d) the filing of a notice of intent to terminate a Plan or the treatment  of a Plan amendment as a termination under Section 4041 of ERISA, (e) the receipt by the Borrower, a Restricted  Subsidiary of the Borrower, or an ERISA Affiliate from the PBGC or a plan administrator of any notice of intent to  terminate any Plan or Multiemployer Plan or to appoint a trustee to administer any Plan, (f) the adoption of any  amendment to a Plan that would require the provision of security pursuant to the Code, ERISA or other applicable  law, (g) the receipt by the Borrower, a Restricted Subsidiary of the Borrower, or an ERISA Affiliate of any written  notice concerning statutory liability arising from the withdrawal or partial withdrawal of the Borrower, a Restricted  Subsidiary of the Borrower, or an ERISA Affiliate from a Multiemployer Plan or a written determination that a  Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA,  (h)  the  occurrence  of  any  non-exempt  “prohibited  transaction”  (within  the  meaning  of  Section  406  of  ERISA  or  Section  4975  of  the  Code)  with  respect  to  which  the  Borrower  or  any  Restricted  Subsidiary  is  a  “disqualified  person” (within the meaning of Section 4975 of the Code) or with respect to which the Borrower or any Restricted  Subsidiary  could  reasonably  be  expected  to  have  liability,  (i)  the  occurrence  of  any  event  or  condition  which  constitutes grounds under Section 4042 of ERISA for the termination of any Plan or the appointment of a trustee to  administer any Plan, (j) the filing of any request for or receipt of a minimum funding waiver under Section 412(c) of  the Code with respect to any Plan or Multiemployer Plan, (k) a determination that any Plan is in “at-risk” status (as  defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code), (l) the receipt by the Borrower, a Restricted  Subsidiary of the Borrower or any ERISA Affiliate of any notice, that a Multiemployer Plan is, or is expected to be,  in endangered or critical status under Section 305 of ERISA, or (m) any other extraordinary event or condition with  respect to a Plan or Multiemployer Plan which could reasonably be expected to result in a Lien or any acceleration  of any statutory requirement to fund all or a substantial portion of the unfunded accrued benefit liabilities of such  plan.          “EU Bail-In Legislation Schedule” means the document described as such and published by the Loan  Market Association (or any successor person) from time to time.          “Event of Default” shall have the meaning provided in Section 11.          “Excess  Cash  Flow”  shall  mean,  for  any  period,  the  remainder  of  (a)  the  sum  of,  without  duplication,  (i) Consolidated Net Income for such period and (ii) the decrease, if any, in Adjusted Consolidated Working Capital  from the first day to the last day of such period (but excluding any such decrease in Adjusted Consolidated Working  Capital arising from a Permitted Acquisition or dispositions of any Person by the Borrower and/or the Restricted  Subsidiaries during such period), minus (b) the sum of, without duplication, (i) the aggregate amount of all Capital                                                  17 

 

  Expenditures made by the Borrower and its Restricted Subsidiaries during such period to the extent financed with  Internally Generated Cash, (ii) without duplication of amounts deducted pursuant to clause (iii) below, the aggregate  amount  of  all  cash  payments  made  in  respect  of  all  Permitted  Acquisitions  and  other  Investments  (excluding  Investments in Cash Equivalents or in the Borrower or a Person that, prior to and immediately following the making  of such Investment, was and remains a Restricted Subsidiary) permitted under Section 10.05 made by the Borrower  and  its  Restricted  Subsidiaries  during  such  period,  in  each  case  to  the  extent  financed  with  Internally  Generated  Cash,  (iii)  without  duplication  of  amounts  deducted  from  Excess  Cash  Flow  in  prior  periods,  the  aggregate  consideration required to be paid in cash by the Borrower or any of its Restricted Subsidiaries pursuant to binding  contracts  (the  “Contract  Consideration”)  entered  into  prior  to  or  during  such  period  relating  to  Permitted  Acquisitions, Investments or Capital Expenditures to be consummated or made during the period of four consecutive  fiscal quarters of the Borrower following the end of such period; provided that to the extent the aggregate amount of  Internally  Generated  Cash  actually  utilized  to  finance  such  Permitted  Acquisitions,  Investments  or  Capital  Expenditures  during  such  period  of  four  consecutive  fiscal  quarters  is  less  than  the  Contract  Consideration,  the  amount of such shortfall shall be added to the calculation  of Excess Cash Flow at the end of such period of four  consecutive fiscal quarters, (iv) Dividends made in cash during such fiscal year to the extent otherwise permitted by  Section 10.03(iii), (vii), (viii), (ix) or (x), to the extent paid for with Internally Generated Cash, (v) (A) the aggregate  amount of Scheduled Repayments and other permanent principal payments of Indebtedness of the Borrower and its  Restricted Subsidiaries during such period (other than (x) voluntary prepayments of Term Loans, Refinancing Notes  and  Indebtedness  incurred  pursuant  to  Section  10.04(xxvii)  that  rank pari  passu  with  the  Term  Loans,  (y)  prepayments of revolving loans under the ABL Credit Agreement or any other revolving credit facility secured by a  Lien on the Collateral ranking pari passu with the Lien on the Collateral securing the ABL Credit  Agreement or  senior or pari passu with the Lien on the Collateral securing the Indebtedness hereunder and (z) prepayments of any  other revolving credit facility except to the extent accompanied by a permanent reduction in commitments therefor)  in each case to the extent paid for with Internally Generated Cash and (B) prepayments and repayments of Term  Loans  pursuant  to  Section  5.02(d)  or  5.02(f)  to  the  extent  the  Asset  Sale  or  Recovery  Event  giving  rise  to  such  prepayment or repayment resulted in an increase to Consolidated Net Income (but not in excess of the amount of  such increase), (vi) the portion of Transaction Costs and other transaction costs and expenses related to items (i)  through  (v)  above  paid  in  cash  during  such  fiscal  year  not  deducted  in  determining  Consolidated  Net  Income,  (vii) the increase, if any, in Adjusted Consolidated Working Capital from the first day to the last day of such period  (but excluding any such increase in Adjusted Consolidated Working Capital arising from a Permitted Acquisition or  disposition  of  any  Person  by  the  Borrower  and/or  the  Restricted  Subsidiaries  during  such  period),  (viii) cash  payments in respect of non-current liabilities (other than Indebtedness) to the extent made with Internally Generated  Cash, (ix) the aggregate amount of expenditures actually made by the Borrower and its Restricted Subsidiaries with  Internally Generated Cash during such period (including expenditures for the payment of financing fees, taxes, rent  and pension and other retirement benefits) to the extent such expenditures are not expensed during such period, (x)  the  aggregate  amount  of  any  premium,  make-whole  or  penalty  payments  actually  paid  with  Internally  Generated  Cash  during  such  period  that  are  required  to  be  made  in  connection  with  any  prepayment  of  Indebtedness,  (xi)  Dividends made pursuant to Section 10.03(vi) or (xiii) or, to the extent used to service Indebtedness of any Parent  Company,  Section  10.03(xv),  and  (xii)  all  non-cash  gains  to  the  extent  included  in  Consolidated  Net  Income  for  such period (excluding any non-cash gains to the extent it represents the reversal of an accrual or reserve for a  potential cash item that reduced Consolidated Net Income in any prior period).          “Excess Cash Flow Payment Date” shall mean the date occurring ten (10) Business Days after the date on  which  the  Borrower’s  (or  Parent  Company’s)  annual  audited  financial  statements  are  required  to  be  delivered  pursuant to Section 9.01(b) (or Section 9.01(c)) (commencing with respect to the fiscal year ending December 31,  2021).          “Excess Cash Flow Payment Period” shall mean, with respect to any Excess Cash Flow Payment Date, the  immediately preceding fiscal year of the Borrower.          “Exchange Rate” shall mean, with respect to any currency, the rate determined by the Administrative Agent  to be the rate quoted by the person acting in such capacity as the spot rate for the purchase by such person of such  currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m.,  New York City time on the date three Business Days prior to the date as of which the foreign exchange computation  is  made  or,  if  such  rate  cannot  be  computed  as  of  such  date,  such  other  date  as  the  Administrative  Agent  shall  reasonably  determine  is  appropriate  under  the circumstances; provided that  the  Administrative  Agent  may obtain                                                  18 

 

  such spot rate from another financial institution designated by the Administrative Agent if the person acting in such  capacity does not have as of the date of determination a spot buying rate for any such currency.          “Excluded Collateral” shall have the meaning provided in the Security Agreement.          “Excluded Subsidiary” shall mean any Subsidiary of the Borrower that is (a) a Foreign Subsidiary, (b) an  Unrestricted Subsidiary, (c) a FSHCO, (d) not a Wholly-Owned Subsidiary of the Borrower or one or more of its  Wholly-Owned Restricted Subsidiaries, (e) an Immaterial Subsidiary, (f) established or created pursuant to Section  10.05(xi)  and  meeting  the  requirements  of  the  proviso  thereto; provided  that  such  Subsidiary  shall  only  be  an  Excluded  Subsidiary  for  the  period prior  to  such  acquisition,  (g)  prohibited  by  applicable  law,  rule  or  regulation  from guaranteeing the facilities under this Agreement, or which would require governmental (including regulatory)  consent,  approval,  license  or  authorization  to  provide  a  guarantee,  in  each  case,  unless  such  consent,  approval,  license  or  authorization  has  been  received  (but  without  obligation  to  seek  the  same),  (h)  prohibited  from  guaranteeing the Obligations by any contractual obligation in existence (x) on the Closing Date or (y) at the time of  the acquisition of such Subsidiary after the Closing Date (to the extent such prohibition was not entered into in  contemplation of such acquisition), (i) a Subsidiary with respect to which a guarantee by it of the Obligations would  result  in  a  material  adverse  tax  consequence  to  Ultimate  Parent,  Holdings,  the  Borrower  or  any  Restricted  Subsidiary, as reasonably determined in good faith by the Borrower, (j) a not-for-profit Subsidiary or a Subsidiary  regulated as an insurance company, (k) any other Subsidiary with respect to which, in the reasonable judgment of  the  Administrative  Agent  (confirmed  in  writing  by  notice  to  the  Borrower),  the  cost  or  other  consequences  (including any adverse tax consequences) of guaranteeing the Obligations shall be excessive in view of the benefits  to be obtained by the Lenders therefrom, and (l) any Domestic Subsidiary that is a direct or indirect Subsidiary of a  Foreign  Subsidiary; provided  that,  notwithstanding  the  above, the  Borrower  may  designate  any  Subsidiary  that  would  otherwise  constitute  an  “Excluded  Subsidiary”  hereunder  as  a  “Subsidiary  Guarantor”  and  cause  such  Subsidiary to execute the Subsidiaries Guaranty as a “Subsidiary Guarantor” (and from and after the execution of  the Subsidiaries Guaranty, such Subsidiary shall no longer constitute an “Excluded Subsidiary” unless released from  its obligations under the Subsidiaries Guaranty as a “Subsidiary Guarantor” in accordance with the terms hereof and  thereof) so long as, to the extent such Subsidiary is organized in a jurisdiction other than the U.S., such jurisdiction  shall  be  reasonably  acceptable  to  the  Administrative  Agent  and  such  Subsidiary  shall  grant  a  perfected  lien  on  substantially  all  of  its  assets  to  the  Collateral  Agent  for  the  benefit  of  the  Secured  Creditors,  pursuant  to  arrangements  reasonably  agreed  between  the  Administrative  Agent  and  the  Borrower  and  subject  to  customary  limitations in such jurisdiction to be reasonably agreed to between the Administrative Agent and the Borrower.          “Excluded Swap Obligation” shall mean, with respect to any Guarantor, (x) as it relates to all or a portion  of the Guaranty of such Guarantor, any Swap Obligation if, and to the extent that, such Swap Obligation (or any  Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the  Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of  such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity  Exchange Act  and the regulations  thereunder at  the time the Guaranty  of  such  Guarantor becomes  effective  with  respect to such Swap Obligation or (y) as it relates to all or a portion of the grant by such Guarantor of a security  interest, any Swap Obligation if, and to the extent that, such Swap Obligation (or such security interest in respect  thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity  Futures  Trading  Commission  (or  the  application  or  official  interpretation  of  any  thereof)  by  virtue  of  such  Guarantor’s  failure  for  any  reason  to  constitute  an  “eligible  contract  participant”  as  defined  in  the  Commodity  Exchange Act and the regulations thereunder at the time the security interest of such Guarantor becomes effective  with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than  one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for  which such Guaranty or security interest is or becomes illegal.          “Excluded Taxes” shall mean, with respect to any Recipient, (a) income Taxes imposed on (or measured  by) net income (however denominated) and franchise (and similar) Taxes, imposed, in each case, as a result of such  Recipient being organized, or having its principal office or applicable lending office located in, such jurisdiction (or  any political subdivision thereof) or as a result of any other present or former connection between such Recipient  and  the  jurisdiction  imposing  such  Tax  (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 Credit Document, or sold or                                                  19 

 

  assigned an interest in any Term Loan or Credit Document), (b) any branch profits Taxes under Section 884(a) of  the Code or any similar Tax imposed by any jurisdiction described in clause (a) above, (c) in the case of a Lender  (other than an assignee pursuant to a request by a Borrower under Section 2.13), any U.S. federal withholding Tax  that is imposed on amounts payable to such Lender at the time such Lender becomes a party to this Agreement or  designates  a  new  lending  office,  except  to  the  extent  such  Recipient  (or  its  assignor,  if  any)  was  entitled,  immediately prior to the designation of a new lending office (or assignment), to receive additional amounts from the  Credit  Parties  with  respect  to  such  withholding  tax  pursuant  to  Section  5.04(a),  (d)  Taxes  attributable  to  such  Recipient’s failure to comply with Section 5.04(b) or Section 5.04(c), (e) any Taxes imposed under FATCA and (f)  U.S. federal backup withholding Taxes pursuant to Code Section 3406.           “Existing  Term  Loan  Credit  Agreement”  shall  have  the  meaning  provided  in  the  definition  of  the  term  “Transactions”.          “Existing Term Loan Tranche” shall have the meaning provided in Section 2.14(a).          “Extendable Bridge Loans” shall  mean customary “bridge” loans which by their terms will be converted  into  loans  that  have,  or  extended  such  that  they  have,  a  maturity  date  later  than  the  Latest  Maturity  Date  of  all  Tranches of Term Loans then in effect.          “Extended Term Loan Maturity Date” shall mean, with respect to any Tranche of Extended Term Loans,  the date specified as such in the applicable Extension Amendment.          “Extended Term Loans” shall have the meaning provided in Section 2.14(a).          “Extending Term Loan Lender” shall have the meaning provided in Section 2.14(c).          “Extension”  shall  mean  any  establishment  of  Extended  Term  Loans  pursuant  to  Section 2.14  and  the  applicable Extension Amendment.          “Extension Amendment” shall have the meaning provided in Section 2.14(d).          “Extension Election” shall have the meaning provided in Section 2.14(c).          “Extension Request” shall have the meaning provided in Section 2.14(a).          “Extension Series” shall have the meaning provided in Section 2.14(a).          “FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any  amended or successor version that is substantively comparable and not materially more onerous to comply  with),  any current or future regulations thereunder or official interpretations thereof, any agreements entered into pursuant  to Section 1471(b)(1) of the Code as of the date of this Agreement (or any amended or successor version described  above),  and  any  intergovernmental  agreements,  treaties  or  conventions  (and  any  related  laws,  rules  or  official  administrative guidance) implementing the foregoing.          “FCPA” shall mean the United States Foreign Corrupt Practices Act of 1977, as amended.          “Federal Funds Rate” shall  mean,  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 the NYFRB shall set forth on  its  public  website  from  time  to  time,  and  published  on  the  next  succeeding  Business  Day  by  the  NYFRB  as  the  federal funds effective rate.          “Fees” shall mean all amounts payable pursuant to or referred to in Section 4.01.          “Financial Statements Date” shall have the meaning provided in Section 6.07.                                                   20 

 

         “Fitch” shall mean Fitch, Inc.          “Fixed  Charges”  shall  mean,  with  respect  to  any  specified  Person  for  any  period,  the  sum,  without  duplication, of:                  (1)    the consolidated interest expense of such Person and its Restricted Subsidiaries for such         period, whether paid or accrued, to the extent such expense was deducted in computing Consolidated Net         Income, including, without limitation, amortization of original issue discount, the interest component of all         payments associated with Capitalized Lease Obligations, and the net of the effect of all payments made or         received  pursuant  to  Interest  Rate  Protection  Agreements  (but  excluding  any  non-cash  interest  expense         attributable to the  mark-to-market valuation of Interest Rate Protection Agreements or other derivatives         pursuant to U.S. GAAP) and excluding amortization or write-off of deferred financing fees and expensing         of  any  other  financing  fees,  including  any  expensing  of  bridge  or  commitment  fees  and  the  non-cash         portion of interest expense resulting from the reduction in the carrying value under purchase accounting of         the Borrower’s outstanding Indebtedness; provided that, for purposes of calculating consolidated interest         expense,  no  effect  will  be  given  to  the  discount  and/or  premium  resulting  from  the  bifurcation  of         derivatives under ASC 815, Derivatives and Hedging, as a result of the terms of the Indebtedness to which         such consolidated interest expense applies; plus                  (2)    the consolidated interest expense of such Person and its Restricted Subsidiaries that was         capitalized during such period; plus                  (3)    all cash dividends, whether paid or accrued, on any series of preferred stock or any series         of Disqualified Stock of such Person or any of its Restricted Subsidiaries, excluding items eliminated in         consolidation, in each case, determined on a consolidated basis in accordance with U.S. GAAP; minus                  (4)    the consolidated interest income of such Person and its Restricted Subsidiaries for such         period, whether received or accrued, to the extent such income was included in determining Consolidated         Net Income.          “Flood Insurance Laws” shall mean, collectively, (i) the National Flood Insurance Act of 1968 as now or  hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter  in effect or any successor statute thereto, (iii) the National Flood Insurance Reform Act of 1994 as now or hereafter  in effect or any successor statute thereto, (iv) the Flood Insurance Reform Act of 2004 as now or hereafter in effect  or any successor statute thereto and (v) the Biggert-Waters Flood Insurance Reform Act of 2012 as now or hereafter  in effect or any successor statute thereto.          “Foreign Asset Sale” shall have the meaning provided in Section 5.02(j).          “Foreign Pension Plan” shall mean any plan, fund (including, without limitation, any superannuation fund)  or other similar program established or maintained outside the United States by the Borrower or any one or more of  its Restricted Subsidiaries primarily for the benefit of employees of the Borrower or such Restricted Subsidiaries  residing  outside  the  United  States,  which  plan,  fund  or  other  similar  program  provides,  or  results  in,  retirement  income,  a  deferral  of  income  in  contemplation  of  retirement  or  payments  to  be  made  upon  termination  of  employment, and which plan is not subject to ERISA or the Code.          “Foreign Recovery Event” shall have the meaning provided in Section 5.02(j).          “Foreign Subsidiaries” shall mean each Subsidiary of the Borrower that is not a Domestic Subsidiary.          “FSHCO” shall mean any Domestic Subsidiary that is a disregarded entity that has no material assets other  than Equity Interests in one or more Foreign Subsidiaries.          “Governmental  Authority”  shall  mean  the  government  of  the  United  States  of  America,  any  other,  supranational authority or nation or any political subdivision thereof,  whether state, provincial or local, and any                                                   21 

 

  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.          “Guaranteed Creditors” shall mean and include (x) each of the Lender Creditors and (y) any Person that  was the Administrative Agent, any Lender and any Affiliate of the Administrative Agent or any Lender (even if the  Administrative  Agent  or such Lender  subsequently ceases to be the Administrative  Agent  or  a Lender under this  Agreement for any reason) at the time of entry into a particular Designated Interest Rate Protection Agreement or  Designated Treasury Services Agreement.          “Guaranteed Obligations” shall have the meaning provided in Section 14.01.          “Guarantor” shall mean and include Holdings and each Subsidiary Guarantor.          “Guaranty”  shall  mean  and  include  each  of  the  Credit  Agreement  Party  Guaranty  and  the  Subsidiaries  Guaranty.          “Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive materials, asbestos  in  any  form  that  is  or  could  become  friable,  urea  formaldehyde  foam  insulation,  polychlorinated  biphenyls,  and  radon  gas;  (b)  any  chemicals,  materials  or  substances  defined  as  or  included  in  the  definition  of  “hazardous  substances,”  “hazardous  waste,”  “hazardous  materials,”  “extremely  hazardous  substances,”  “restricted  hazardous  waste,”  “toxic substances,”  “toxic pollutants,”  “contaminants,” or “pollutants,” or  words  of  similar import,  under  any  applicable  Environmental  Law;  and  (c)  any  other  chemical,  material  or  substance  regulated  under  any  Environmental Law.          “Holdco Notes” shall mean Vertiv Intermediate Holding Corporation’s 12.00%/13.00% senior PIK toggle  notes due 2022 pursuant to the Holdco Notes Indenture.          “Holdco Notes Indenture” shall mean the Indenture dated as of February 9, 2017, pursuant to which the  Holdco Notes were issued, as amended, restated, supplemented or otherwise modified on or prior to the Closing  Date.          “Holdings” shall have the meaning provided in the first paragraph of this Agreement.          “Immaterial Subsidiary” shall mean any Restricted Subsidiary of the Borrower that, as of the most recently  ended Test Period, does not have, when taken together with all other Immaterial Subsidiaries, (a) assets in excess of  5.0% of Consolidated Total Assets; or (b) revenues for the period of four consecutive fiscal quarters ending on such  date in excess of 5.0% of the combined revenues of the Borrower and the Restricted Subsidiaries for such period.          “Impacted Interest Period” shall have the meaning provided in the definition of “LIBO Rate.”          “Incremental  Amount”  shall  mean,  as  of  any  date  of  determination,  the  sum  of  (a)  the  greater  of  $325,000,000  and  60.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries  for  the  most  recently  ended  Test  Period  (calculated  on  a  Pro  Forma  Basis) plus  (b)  an  amount  (the  “Prepayment  Available  Incremental  Amount”) equal  to  the  sum  of  all  voluntary  prepayments  (including  buybacks)  or  redemptions,  as  applicable,  of  Term  Loans  (including  pursuant  to  the  provisions  of  Section  2.19,  Section  2.20  and  Section  5.01(b)(i)), Refinancing Notes and Indebtedness incurred pursuant to Section 10.04(xxvii) (limited, in the case of  any voluntary prepayment in accordance with the provisions of Section 2.19 or Section 2.20 or similar provisions in  the  definitive  documentation  with  respect  to  such  Refinancing  Notes  or  other  Indebtedness,  to  the  cash  payment  made by any Credit Party or Restricted Subsidiary therefor) (in each case other than with the proceeds of long-term  Indebtedness  (other  than  Indebtedness  under  the  ABL  Credit  Agreement))  in  each  case  prior  to  the  date  of  incurrence  of  any  such  Incremental  Term  Loan  Commitments;  provided  that  no  Incremental  Term  Loan  or  Indebtedness  incurred  pursuant  to  Section  10.04(xxvii)  in  reliance  on  the  Prepayment  Available  Incremental  Amount shall be secured on a greater priority basis than that by which the Indebtedness so repaid and underlying  such  portion  of  the  Prepayment  Available  Incremental  Amount  so  utilized  was  secured, less (c)  the  aggregate  principal  amount  of  Incremental  Facilities  incurred  pursuant  to  Section  2.15(a)(v)(x)  and  Permitted  Pari  Passu                                                   22 

 

  Notes, Permitted Pari Passu Loans or Permitted Junior Debt incurred pursuant to Section 10.04(xxvii)(A)(1) prior to  such date (clauses (a), (b) and (c), collectively, the “Fixed Incremental Amount”) plus (d) an unlimited amount so  long as any of (A) in the case of any Indebtedness secured by a Lien on the Collateral that is pari passu with any  Lien on the Collateral securing the Obligations, the Consolidated First Lien Net Leverage Ratio, determined on a  Pro Forma Basis as of such date, would not exceed 3.75 to 1.00, (B) solely for purposes of Section 10.04(xxvii), in  the case of any Permitted Junior Debt consisting of Indebtedness secured by the Collateral on a junior-lien basis  relative  to  the  Liens  on  such  Collateral  securing  the  Obligations,  the  Consolidated  Total  Net  Leverage  Ratio,  determined  on  a  Pro  Forma  Basis  as  of  such  date,  would  not  exceed  either  (1)  5.25  to  1.00  or  (2)  if  such  Indebtedness  is  incurred  in  connection  with  a  Permitted  Acquisition  or  another  Investment  permitted  or  not  prohibited  by  this  Agreement,  the  Consolidated  Total  Net  Leverage  Ratio  as  in  effect  immediately  prior  to  the  consummation of such transaction calculated on a Pro Forma Basis as of the most recently ended Test Period or (C)  solely for  purposes  of  Section  10.04(xxvii),  in  the  case  of  any  Permitted  Junior  Debt  consisting  of  unsecured  Indebtedness, the Consolidated Total Net Leverage Ratio, determined on a Pro Forma Basis as of such date, would  not exceed either (1) 5.25 to 1.00 or (2) if such Indebtedness is incurred in connection with a Permitted Acquisition  or another Investment permitted or not prohibited by this Agreement, the Consolidated Total Net Leverage Ratio as  in effect immediately prior to the consummation of such transaction calculated on a Pro Forma Basis as of the most  recently ended Test Period (amounts pursuant to this clause (d), the “Incurrence-Based Incremental Amount” and  each of clauses (d)(A), (d)(B) and (d)(C), an “Incurrence-Based Incremental Facility Test”) (it being understood that  (1) the Borrower may utilize the Incurrence-Based Incremental Amount prior to the Fixed Incremental Amount and  that amounts under each of the Fixed Incremental Amount and the Incurrence-Based Incremental Amount may be  used in a single transaction and (2) any amounts utilized under the Fixed Incremental Amount shall be reclassified,  as the Borrower may elect from time to time, as incurred under the Incurrence-Based Incremental  Amount if the  Borrower meets any applicable Incurrence-Based Incremental Facility Test at such time on a Pro Forma Basis, and  if any applicable Incurrence-Based Incremental Facility Test would be satisfied on a Pro Forma Basis as of the end  of any subsequent Test Period after the initial utilization under the Fixed Incremental Amount, such reclassification  shall be deemed to have automatically occurred whether or not elected by the Borrower).          “Incremental Term Loan” shall have the meaning provided in Section 2.01(b).          “Incremental Term Loan Borrowing Date” shall mean, with respect to each Incremental Term Loan, each  date on which Incremental Term Loans are incurred pursuant to Section 2.01(b), which date shall be the date of the  effectiveness of the respective Incremental Term Loan Commitment Agreement pursuant to which such Incremental  Term Loans are to be made.          “Incremental Term Loan Commitment” shall mean, for each Lender, any commitment to make Incremental  Term Loans provided by such Lender pursuant to Section 2.15 on a given Incremental Term Loan Borrowing Date,  in  such  amount  as  agreed  to  by  such  Lender  in  the  Incremental  Term  Loan  Commitment  Agreement  delivered  pursuant to Section 2.15, as the same may be terminated pursuant to Sections 4.02 and/or 11.          “Incremental Term Loan Commitment Agreement” shall mean each Incremental Term Loan Commitment  Agreement in such form as may be reasonably satisfactory to the Borrower and the Administrative Agent) executed  in accordance with Section 2.15.          “Incremental  Term  Loan  Commitment  Requirements”  shall  mean,  with  respect  to  any  provision  of  an  Incremental Term Loan Commitment on a given Incremental Term Loan Borrowing Date, the satisfaction of each of  the following conditions:  (a) no Event of Default then exists or would result therefrom (provided, that with respect  to  any  Incremental  Term  Loan  Commitment  requested  with  respect  to  any  Limited  Condition  Transaction,  such  requirement shall be limited to the absence of an Event of Default pursuant to Section 11.01 or Section 11.05); (b)  all representations and warranties contained herein and in the other Credit Documents shall be true and correct in all  material  respects  with  the  same  effect  as  though  such  representations  and  warranties  had  been  made  on  the  Incremental  Term  Loan  Borrowing  Date  (it  being  understood  and  agreed  that  (x)  any  representation  or  warranty  which by its terms is made as of a specified date shall be required to be true and correct in all material respects only  as  of  such  specified  date  and  (y)  any  representation  or  warranty  that  is  qualified  as  to  “materiality,”  “Material  Adverse  Effect”  or  similar  language  shall  be  true  and  correct  in  all  respects  on  such  date)  (provided,  that  with  respect  to  any  Incremental  Term  Loan  Commitment  requested  in  connection  with  the  financing  of  a  Permitted  Acquisition or other Investment permitted hereunder, such requirement shall be limited to the making and truth and                                                  23 

 

  correctness  of  the  Specified  Representations);  (c)  the  delivery  by  the  relevant  Credit  Parties  of  such  technical  amendments, modifications and/or supplements to the respective Security Documents as are reasonably requested by  the Administrative Agent to ensure that the additional Obligations to be incurred pursuant to the Incremental Term  Loan Commitments are secured by, and entitled to the benefits of, the relevant Security Documents, and each of the  Lenders  hereby  agrees  to,  and  authorizes  the  Collateral  Agent  to  enter  into,  any  such  technical  amendments,  modifications  or  supplements  and  (d) solely  to  the  extent  such  certifications  are  not  included  in  the  relevant  Incremental Term Loan Commitment Agreement, the delivery by the Borrower to the Administrative Agent of an  officer’s certificate executed by a Responsible Officer certifying as to compliance with preceding clauses (a) and  (b).          “Incremental Term Loan Lender” shall have the meaning provided in Section 2.15(b).          “Indebtedness” shall mean, as to any Person, without duplication, (i) all indebtedness (including principal,  interest, fees and charges) of such Person (A) for borrowed money or (B) for the deferred purchase price of property  or services, (ii) the maximum amount available to be drawn under all letters of credit, bankers’ acceptances and  similar obligations issued for the account of such Person and all unpaid drawings in respect of such letters of credit,  bankers’ acceptances and similar obligations, (iii) all Indebtedness of the types described in clause (i), (ii), (iv), (v),  (vi)  or  (vii)  of  this  definition  secured  by  any  Lien  on  any  property  owned  by  such  Person,  whether  or  not  such  Indebtedness has been assumed by such Person (provided that, if the Person has not assumed or otherwise become  liable in respect of such Indebtedness, such Indebtedness shall be deemed to be in an amount equal to the lesser of  (x) the aggregate unpaid amount of Indebtedness secured by such Lien and (y) the fair market value of the property  to which such Lien relates as determined in good faith by such Person), (iv) the aggregate amount of all Capitalized  Lease  Obligations  of  such  Person,  (v)  all  Contingent  Obligations  of  such  Person,  (vi)  all  obligations  under  any  Interest Rate Protection Agreement, any Other Hedging Agreement, any Treasury Services Agreement or under any  similar type of agreement and (vii) all Off-Balance Sheet Liabilities of such Person.  Notwithstanding the foregoing,  Indebtedness shall not include (a) trade payables and accrued expenses incurred by any Person in accordance with  customary  practices  and  in  the  ordinary  course  of  business  of  such  Person,  (b)  obligations,  to  the  extent  such  obligations would otherwise constitute Indebtedness, under any agreement that has been defeased or satisfied and  discharged  pursuant  to  the  terms  of  such  agreement  or  (c)  earn-outs  and  contingent  payments  in  respect  of  acquisitions except to the extent that the liability on account of any such earn-outs or contingent payment becomes  fixed, due and payable for more than ten (10) Business Days without being paid and is required by U.S. GAAP to be  reflected as a liability on the consolidated balance sheet of the Borrower and its Restricted Subsidiaries.          “Indemnified Person” shall have the meaning provided in Section 13.01(a).          “Indemnified  Taxes”  shall  mean  all  Taxes  imposed  on  or  with  respect  to  any  payment  made  by  or  on  account of any obligation of any Credit Party under any Credit Document, other than (i) Excluded Taxes and (ii)  Other Taxes.          “Independent  Assets  or  Operations”  shall  mean,  with  respect  to  any  Parent  Company,  that  such  Parent  Company’s  total  assets,  revenues,  income  from  continuing  operations  before  income  taxes  and  cash  flows  from  operating activities (excluding in each case amounts related to its investment in the Borrower and the Restricted  Subsidiaries), determined in accordance with GAAP and as shown on the most recent balance sheet of such Parent  Company, is more than 5.0% of such Parent Company’s corresponding consolidated amount.          “Initial Incremental Term Loan Maturity Date” shall mean, for any Tranche of Incremental Term Loans,  the  final  maturity  date  set  forth  for  such  Tranche  of  Incremental  Term  Loans  in  the  Incremental  Term  Loan  Commitment Agreement relating thereto; provided that the initial final maturity date for all Incremental Term Loans  of a given Tranche shall be the same date.          “Initial Maturity Date for Initial Term Loans” shall mean the date that is seven years after the Closing Date,  or if such date is not a Business Day, the next preceding Business Day.          “Initial Term Loan” shall mean the Term Loans made on the Closing Date pursuant to Section 2.01(a).                                                   24 

 

         “Initial Term Loan Commitment” shall mean, for each Lender, the amount set forth opposite such Lender’s  name in Schedule 2.01 directly below the column entitled “Initial Term Loan Commitment,” as the same may be  terminated pursuant to Sections 4.02 and/or 11.          “Initial Tranche” shall have the meaning provided in the definition of the term “Tranche”.          “Intellectual Property” shall have the meaning provided in Section 8.20.          “Intercreditor Agreement” shall mean that certain Intercreditor Agreement in the form of Exhibit M, dated  as of the November 30, 2016, by and among the Collateral Agent and JPMorgan Chase Bank, N.A., as collateral  agent  under  the  ABL  Credit  Agreement,  as  may  be  amended,  amended  and  restated,  modified,  supplemented,  extended or renewed from time to time in accordance with the terms thereof.          “Interest Determination Date” shall mean, with respect to any LIBO Rate Term Loan, the second Business  Day prior to the commencement of any Interest Period relating to such LIBO Rate Term Loan.          “Interest Expense” shall mean the aggregate consolidated interest expense (net of interest income) of the  Borrower  and  its  Restricted  Subsidiaries  in  respect  of  Indebtedness  determined  on  a  consolidated  basis  in  accordance  with  U.S.  GAAP,  including  amortization  or  original  issue  discount  on  any  Indebtedness  and  amortization  of  all  fees  payable  in  connection  with  the  incurrence  of  such  Indebtedness,  including,  without  limitation, the interest portion  of any  deferred payment  obligation and  the interest component  of any  Capitalized  Lease  Obligations, and,  to  the extent  not included  in  such interest  expense,  any losses  on  hedging  obligations or  other  derivative  instruments  entered  into  for  the  purpose of  hedging  interest  rate  risk,  net  of  interest  income  and  gains on such hedging obligations, and costs of surety bonds in connection with financing activities.          “Interest Payment Date” shall  mean (a) with respect to any Base  Rate Term Loan, the  last day of each  March,  June,  September  and  December  and  (b) with  respect  to  any  LIBO  Rate  Term  Loan,  the  last  day  of  the  Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Borrowing with an  Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs  at intervals of three months’ duration after the first day of such Interest Period.          “Interest Period” shall have the meaning provided in Section 2.09.          “Interest  Rate  Protection  Agreement”  shall  mean  any  interest  rate  swap  agreement,  interest  rate  cap  agreement, interest collar agreement, interest rate hedging agreement or other similar agreement or arrangement.          “Internally Generated Cash” shall mean cash generated from the Borrower and its Restricted Subsidiaries’  operations, borrowings under the ABL Credit Agreement or any working capital facility permitted under Section  10.04  and  not  representing  (i)  a  reinvestment  by  the  Borrower  or  any  Restricted  Subsidiaries  of  the  Net  Sale  Proceeds of any Asset Sale or Net Insurance Proceeds of any Recovery Event, (ii) the proceeds of any issuance of  any Equity Interests or any Indebtedness of the Borrower or any Restricted Subsidiary (excluding borrowings under  the ABL Credit Agreement or borrowings under any working capital facility permitted under Section 10.04) or (iii)  any  credit  received  by  the  Borrower  or  any  Restricted  Subsidiary  with  respect  to  any  trade-in  of  property  for  substantially similar property or any “like kind exchange” of assets.          “Interpolated Rate” shall  mean, 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 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 LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at  such time.          “Investments” shall have the meaning provided in Section 10.05.                                                   25 

 

         “Junior  Representative”  shall  mean,  with  respect  to  any  series  of  Permitted  Junior  Debt,  the  trustee,  administrative agent, collateral agent, security agent or similar agent under the indenture or agreement pursuant to  which such Permitted Junior Debt is issued, incurred or otherwise obtained and each of their successors in such  capacities.          “Latest  Maturity  Date”  shall  mean,  at  any  time,  the  latest  Maturity  Date  applicable  to  any  Term  Loan  hereunder at such time, including the latest maturity date of any Incremental Term Loan, Refinancing Term Loan or  Extended Term Loan, in each case as extended in accordance with this Agreement from time to time.          “LCT Election” shall have the meaning provided in Section 1.03.          “LCT Test Date” shall have the meaning provided in Section 1.03.          “Lead  Arrangers”  shall  mean  Citibank,  N.A.,  JPMorgan  Chase  Bank,  N.A.,  BofA  Securities,  Inc.  and  Goldman Sachs Lending Partners LLC.          “Lender” shall mean each financial institution listed on Schedule 2.01, as well as any Person that becomes  a “Lender” hereunder pursuant to Section 2.13, 2.15, 2.18 or 13.04(b).          “Lender Creditors” shall have the meaning provided in Section 14.01.          “Leverage Excess Proceeds” shall have the meaning provided in Section 5.02(d).          “LIBO Rate” shall mean, with respect to any LIBO Rate Term Loan for any Interest Period, the London  interbank offered rate (“LIBOR”) as administered by ICE Benchmark Administration (or any other Person that takes  over the administration of such rate) for U.S. Dollars for a period equal in length to such Interest Period as displayed  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  Administrative  Agent  in  its  reasonable  discretion;  in  each  case  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 the LIBO  Screen Rate shall be less than 0.00% per annum, such rate shall be deemed to be 0.00% per annum for the purposes  of  this  Agreement; provided,  further,  that  if  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; provided that if  any Interpolated Rate shall be less than 0.00% per annum, such rate shall be deemed to be 0.00% per annum for  purposes of this Agreement.          “LIBO Rate Term Loan” shall mean each Term Loan which is designated as a Term Loan bearing interest  at the LIBO Rate by the Borrower at the time of the incurrence thereof or conversion thereto.          “LIBO Screen Rate” shall have the meaning provided in the definition of “LIBO Rate.”          “LIBOR” shall have the meaning provided in the definition of “LIBO Rate”.          “LIBOR Successor Rate” shall have the meaning provided in Section 2.16(a).          “LIBOR Successor Rate Conforming Changes” shall mean, with respect to any proposed LIBOR Successor  Rate,  any  conforming  changes  to  the  definition  of  Base  Rate,  the  definition  of  Interest  Period,  the  timing  and  frequency of determining rates and making payments of interest and other technical, administrative or operational  matters  as  may  be  appropriate,  in  the  discretion  of  the  Administrative  Agent,  to  reflect  the  adoption  and  implementation  of  such  LIBOR  Successor  Rate  and  to  permit  the  administration  thereof  by  the  Administrative  Agent  in  a  manner  substantially  consistent  with  market  practice  (or,  if  the  Administrative  Agent  determines  that  adoption of any portion of such market practice is not administratively feasible or that no market practice for the  administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative  Agent determines in consultation with the Borrower).                                                     26 

 

         “Lien”  shall  mean  any  mortgage,  pledge,  hypothecation,  collateral  assignment,  security  deposit  arrangement,  encumbrance,  deemed  or  statutory  trust,  security  conveyance,  lien  (statutory  or  other),  preference,  priority or other security agreement of any kind or nature whatsoever (including, without limitation, any conditional  sale or other title retention agreement, and any lease having substantially the same effect as any of the foregoing).          “Limited  Condition  Transaction”  shall  mean  any  acquisition  (including  by  way  of  merger)  or  similar  Investment (including the assumption or incurrence of Indebtedness), the making of any Dividend and/or the making  of any voluntary or optional payment or prepayment on or redemption or acquisition for value of any Indebtedness  subject to Section 10.07(a).           “Loans” shall mean the loans made by the Lenders to the Borrower pursuant to this Agreement.          “Location” of any Person shall mean such Person’s “location” as determined pursuant to Section 9-307 of  the Uniform Commercial Code of the State of New York.          “Majority Lenders” of any Tranche shall mean those Non-Defaulting Lenders which would constitute the  Required  Lenders  under,  and  as  defined  in,  this  Agreement  if  all  outstanding  Obligations  of  the  other  Tranches  under this Agreement were repaid in full and all Commitments with respect thereto were terminated.          “Margin Stock” shall have the meaning provided in Regulation U.          “Market  Capitalization”  shall  mean  an  amount  equal  to  (i)  the  total  number  of  issued  and  outstanding  shares of capital stock any Parent Company on the date of declaration of the relevant dividend multiplied by (ii) the  arithmetic mean of the closing prices per share of such capital stock on the New York Stock Exchange (or, if the  primary listing of such capital stock is on another exchange, on such other exchange) for the 30 consecutive trading  days immediately preceding the date of declaration of such dividend.          “Material  Adverse  Effect”  shall  mean  (i)  a  material  adverse  effect  on  the  business,  assets,  financial  condition or results of operations of the Borrower and its Restricted Subsidiaries, taken as a whole, (ii) a material  and adverse effect on the rights and remedies of the Administrative Agent and Lenders, taken as a whole, under the  Credit  Documents  or  (iii)  a  material  and  adverse  effect  on  the  ability  of  the  Credit  Parties,  taken  as  a  whole,  to  perform their payment obligations under the Credit Documents.           “Material Real Property” shall mean each parcel of Real Property that is acquired after the Closing Date  and owned in fee by any Credit Party that (together with any other parcels constituting a single site or operating  property) has a fair market value (as determined by the Borrower in good faith) of at least the greater of $15,000,000  and 3.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the most recently ended Test  Period.          “Maturity Date” shall mean (a) with respect to any Initial Term Loans that have not been extended pursuant  to Section 2.14, the Initial Maturity Date for Initial Term Loans, (b) with respect to any Incremental Term Loans  that have not been extended pursuant to Section 2.14, the Initial Incremental Term Loan Maturity Date applicable  thereto  and  (c)  with  respect  to  any  Tranche  of  Extended  Term  Loans,  the  Extended  Term  Loan  Maturity  Date  applicable  thereto.   For  the  avoidance  of  doubt,  the  parties  understand  that  no  waiver  of  any  Default,  Event  of  Default or mandatory prepayment shall constitute an extension of the Maturity Date.          “Minimum Borrowing Amount” shall mean $1,000,000.          “Minimum Purchase Condition” shall have the meaning provided in Section 2.19(b).          “MFN Pricing Test” shall have the meaning provided in Section 2.15(a).          “Moody’s” shall mean Moody’s Investors Service, Inc.                                                   27 

 

         “Mortgage”  shall  mean  a  mortgage,  debenture,  leasehold  mortgage,  deed  of  trust,  deed  of  immovable  hypothec, leasehold deed of trust, deed to secure debt, leasehold deed to secure debt or similar security instrument in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent,  in  favor  of  the  Collateral  Agent  for  the  benefit of the Secured Creditors, as the same  may be amended, amended and restated,  modified, supplemented,  extended or renewed from time to time.          “Mortgaged  Property”  shall  mean  any  Material  Real  Property  of  the  Borrower  or  any  of  its  Restricted  Subsidiaries which is required to be encumbered by a Mortgage.          “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA and  subject  to  Title  IV  of  ERISA  under  which  the  Borrower  or  a  Restricted  Subsidiary  of  the  Borrower  has  any  obligation or liability, including on account of an ERISA Affiliate.           “Net Debt Proceeds” shall mean, with respect to any incurrence of Indebtedness for borrowed money, an  amount in cash equal to the gross cash proceeds received by the respective Person from such incurrence, net of  underwriting discounts, commissions, fees and other costs of, and expenses associated with, such incurrence.          “Net Insurance Proceeds” shall mean, with respect to any Recovery Event, an amount in cash equal to the  gross cash proceeds received by the respective Person in connection with such Recovery Event, net of (i) costs of,  and  expenses  associated  with,  such  Recovery  Event  (including  any  costs  incurred  by  the  Borrower  or  any  of  its  Restricted Subsidiaries in connection with the adjustment, settlement or collection of any claims of the Borrower or  such Restricted Subsidiary in respect thereof), (ii) any taxes paid or payable as a result of such Recovery Event  (including the Borrower’s good faith estimate of any incremental income taxes that will be payable as a result of  such  Recovery  Event,  including  pursuant  to  tax  sharing  arrangements  or  any  tax  distributions),  (iii)  required  payments of any Indebtedness or other obligations (other than the Loans and Indebtedness secured on a pari passu  or  junior basis to the Loans)  which are secured  by the assets  which  were the subject  of such  Recovery Event  or  would be in default under the terms thereof as a result of such theft, loss, physical destruction, damage, taking or  similar event underlying such Recovery Event and (iv) to the extent such Recovery Event involves any theft, loss,  physical destruction, damage, taking or similar event with respect to Investments made after the Closing Date the  permissibility of which was contingent upon the utilization of the Available Amount, the portion of the Available  Amount so utilized in connection with such initial Investment.          “Net Sale Proceeds” shall mean, with respect to any Asset Sale (including, without limitation, any cash or  Cash Equivalents received upon the sale or other disposition of any Designated Non-cash Consideration received in  any Asset Sale), an amount in cash equal to the gross cash proceeds (including any cash received by way of deferred  payment pursuant to a promissory note, receivable or otherwise, but only as and when received) received from such  Asset Sale, net of (i) costs of, and expenses associated with, such Asset Sale (including fees and commissions), (ii)  any  taxes  paid  or  payable  as  a  result  of  such  Asset  Sale  (including  the  Borrower’s  good  faith  estimate  of  any  incremental  income  taxes  that  will  be  payable  as  a  result  of  such  Asset  Sale,  including  pursuant  to  tax  sharing  arrangements or any tax distributions), (iii) payments of unassumed liabilities relating to the assets sold and required  payments of any Indebtedness or other obligations (other than the Loans and Indebtedness secured on a pari passu  or junior basis to the Loans) which are secured by the assets which were sold or would be in default under the terms  thereof as a result of such Asset Sale, (iv) amounts provided as a reserve in accordance with U.S. GAAP against any  liabilities  under  any  indemnification  obligation  or  purchase  price  adjustment  associated  with  such  Asset  Sale  (provided that to the extent and at the time any such amounts are released from such reserve to the Borrower or any  of its Restricted Subsidiaries, such amounts shall constitute Net Sale Proceeds), (v) cash escrows from the sale price  for such Asset Sale (provided that to the extent and at the time any such amounts are released from escrow to the  Borrower or any of its Restricted Subsidiaries, such amounts shall constitute Net Sale Proceeds) and (vi) to the  extent such Asset Sale involves any disposition of Investments made after the Closing Date the permissibility of  which was contingent upon the utilization of the Available Amount, the portion of the Available Amount so utilized  in connection with such initial Investment.          “Non-Defaulting Lender” shall mean and include each Lender other than a Defaulting Lender.          “Note” shall mean each Term Note.                                                   28 

 

         “Notice of Borrowing” shall have the meaning provided in Section 2.03.          “Notice of Conversion/Continuation” shall have the meaning provided in Section 2.06.          “Notice Office” shall mean Citibank Delaware, One Penn’s Way, OPS II, New Castle, DE 19720, Attn:  Agency   Operations  (Phone:  (302)  894-6010;  Fax:  (646)  274-5080;  Borrower   inquiries  only:  AgencyABTFSupport@citi.com; Borrower notifications: GlAgentOfficeOps@Citi.com).          “NYFRB” shall mean the Federal Reserve Bank of New York.          “NYFRB Rate” shall mean, for any day, the greater of (a) the Federal Funds 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” shall mean the rate for a federal funds transaction quoted at 11:00 a.m. on  such day received to the Administrative Agent from a federal funds broker of recognized standing selected by it;  provided, further, that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for  purposes of this Agreement.          “Obligations” shall mean (x) all now existing or hereafter arising debts, obligations, covenants, and duties  of payment or performance by any Credit Party of every kind, matured or unmatured, direct or contingent, owing,  arising,  due,  or  payable  to  any  Lender,  Agent  or  Indemnified  Person  by  any  Credit  Party  arising  out  of  this  Agreement or any other Credit Document, including, without limitation, all obligations to repay principal or interest  (including  interest,  fees  and  other  amounts  accruing  during  any  proceeding  under  any  Debtor  Relief  Laws,  regardless of whether allowed or allowable in such proceeding) on the Term Loans, and to pay interest, fees, costs,  charges, expenses, professional fees, and all sums chargeable to any Credit Party or for which any Credit Party is  liable as indemnitor under the Credit Documents, whether or not evidenced by any note or other instrument and (y)  liabilities  and  indebtedness  of  the  Borrower  or  any  of  its  Restricted  Subsidiaries  owing  under  any  Designated  Interest  Rate  Protection  Agreement  or  Designated  Treasury  Services  Agreement  (with  respect  to  any  Subsidiary  Guarantor, other than any Excluded Swap Obligation of such Subsidiary Guarantor) entered into by the Borrower or  any of its Restricted Subsidiaries, whether now in existence or hereafter arising.  Notwithstanding anything to the  contrary  contained  above,  (x)  obligations  of  any  Credit  Party  under  any  Designated  Interest  Rate  Protection  Agreement  or  Designated  Treasury  Services  Agreement  shall  be  secured  and  guaranteed  pursuant  to  the  Credit  Documents only to the extent that, and for so long as, the other Obligations are so secured and guaranteed and (y)  any release of Collateral or Guarantors effected in the manner permitted by this Agreement shall not require the  consent  of  holders  of  obligations  under  Designated  Interest  Rate  Protection  Agreement  or  Designated  Treasury  Services Agreement.          “OFAC” shall mean the U.S. Treasury Department Office of Foreign Assets Control.          “Off-Balance Sheet Liabilities” of any Person shall mean (i) any repurchase obligation or liability of such  Person with respect to accounts or notes receivable sold by such Person, (ii) any liability of such Person under any  Sale-Leaseback Transactions that do not create a liability on the balance sheet of such Person, (iii) any obligation  under a Synthetic Lease or (iv) any obligation arising with respect to any other transaction which is the functional  equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such  Person.          “Open Market Purchase” shall have the meaning provided in Section 2.20(a).           “Other  Hedging  Agreements”  shall  mean  any  foreign  exchange  contracts,  currency  swap  agreements,  commodity agreements or other similar arrangements, or arrangements designed to protect against fluctuations in  currency values or commodity prices.          “Other Taxes” shall mean any and all present or future stamp, court or documentary, intangible, recording,  filing  or  similar  Taxes  arising  from  any  payment  made  under,  from  the  execution,  delivery,  registration,  performance or enforcement of, from the receipt or perfection of a security interest under, or otherwise with respect                                                   29 

 

  to, any Credit Document except any such Taxes imposed with respect to an assignment (other than an assignment  made pursuant to Section 2.13) that are imposed as a result of any present or former connection between the relevant  Lender and the jurisdiction imposing such Tax (other than a connection arising from such Lender 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 Credit Document, or sold or  assigned an interest in any Term Loan or Credit Document).          “Overnight Bank Funding Rate” shall mean, for any day, the rate comprised of both overnight federal funds  and overnight LIBO Rate 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 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).          “Parent  Company”  shall  mean  any  direct  or  indirect  parent  company  of  the  Borrower  (other  than  the  Sponsor).          “Pari  Passu  Intercreditor  Agreement”  shall  mean  an  intercreditor  agreement  among  the  Administrative  Agent, the Collateral Agent and one or more Pari Passu Representatives for holders of Permitted Pari Passu Notes or  Permitted  Pari  Passu  Loans  (or,  in  either  case,  Permitted  Refinancing  Indebtedness  in  respect  thereof)  providing  that, inter alia, the Liens on the Collateral in favor of the Collateral Agent (for the benefit of the Secured Creditors)  shall  be pari  passu with such Liens in favor of the Pari Passu Representatives (for the benefit of the holders of  Permitted Pari Passu Notes or Permitted Pari Passu Loans (or, in either case, Permitted Refinancing Indebtedness in  respect thereof)), as such intercreditor agreement may be amended, amended and restated, modified, supplemented,  extended  or  renewed  from  time  to  time  in  accordance  with  the  terms  hereof  and  thereof.   The  Pari  Passu  Intercreditor Agreement shall be in a form customary at such time for transactions of the type contemplated thereby  and otherwise reasonably satisfactory to the Administrative Agent and the Borrower.          “Pari  Passu  Representative”  shall  mean,  with  respect  to  any  series  of  Permitted  Pari  Passu  Notes  or  Permitted Pari Passu Loans (or, in each case, Permitted Refinancing Indebtedness in respect thereof), the trustee,  collateral  agent,  security  agent  or  similar  agent  under  the  indenture  or  other  agreement  pursuant  to  which  such  Permitted Pari Passu Notes or Permitted Pari Passu Loans (or, in each case, Permitted Refinancing Indebtedness in  respect thereof) are issued and each of their successors in such capacities.          “Participant” shall have the meaning provided in Section 13.04(c).          “Participant Register” shall have the meaning provided in Section 13.04(c).          “Patriot Act” shall have the meaning provided in Section 13.16.          “Payment Office” shall mean the office of the Administrative Agent located at One Penn’s Way, OPS II,  New Castle, DE 19720, Attn: Agency Operations (Phone: (302) 894-6010; Fax: (646) 274-5080; Borrower inquiries  only: AgencyABTFSupport@citi.com; Borrower notifications: GlAgentOfficeOps@Citi.com), or such other office  as the Administrative Agent may hereafter designate in writing as such to the other parties hereto.          “PBGC”  shall  mean  the  Pension  Benefit  Guaranty  Corporation  established  pursuant  to  Section  4002  of  ERISA, or any successor thereto.          “Perfection Certificate” shall have the meaning provided in the Security Agreement.          “Permitted Acquisition” shall mean the acquisition by the Borrower or any of its Restricted Subsidiaries of  an Acquired Entity or Business; provided that (i) the Acquired Entity or Business acquired is in a business permitted  by Section 10.09 and (ii) all applicable requirements of Section 9.14 are satisfied.                                                   30 

 

         “Permitted Encumbrance” shall mean, with respect to any Mortgaged Property, such exceptions to title as  are set forth in the mortgage title insurance policy delivered with respect thereto, all of which exceptions must be  acceptable to the Administrative Agent in its reasonable discretion.          “Permitted Holders” shall mean (i) the Sponsor, (ii) any Related Party of the Sponsor and (iii) any “group”  (within  the  meaning  of  Section  13(d)(3)  or  Section  14(d)(2)  of  the  Securities  Exchange  Act  or  any  successor  provision) of which any of the foregoing are members; provided that in the case of such “group” and without giving  effect  to  the  existence  of  such  “group”  or  any  other  “group”,  such  Persons  specified  in  clauses  (i)  or  (ii)  above,  collectively, have beneficial ownership, directly or indirectly, of more than 50% of the total voting power of the  voting stock of Ultimate Parent.          “Permitted Investment” shall have the meaning provided in Section 10.05.          “Permitted  Junior  Debt”  shall  mean  and  include  (i)  any  Permitted  Junior  Notes  and  (ii)  any  Permitted  Junior Loans.          “Permitted Junior Debt Documents” shall mean and include the Permitted Junior Notes Documents and the  Permitted Junior Loan Documents.          “Permitted Junior Loan Documents” shall mean, after the execution and delivery thereof, each agreement,  document  or  instrument  relating  to  the  incurrence  of  Permitted  Junior  Loans,  in  each  case  as  the  same  may  be  amended, amended and restated, modified, supplemented, extended or renewed from time to time in accordance  with the terms hereof and thereof.          “Permitted Junior Loans” shall mean any Indebtedness of the Borrower or any Restricted Subsidiary in the  form of unsecured or secured loans; provided that (i) except as provided in clause (v) below, no such Indebtedness,  to the extent incurred by any Credit Party, shall be secured by any asset of the Borrower or any of its Subsidiaries,  (ii) no such Indebtedness, to the extent incurred by any Credit Party, shall be guaranteed by any Person other than  Holdings,  the  Borrower  or  a  Subsidiary  Guarantor,  (iii) no  such  Indebtedness  shall  be  subject  to  scheduled  amortization or have a final stated maturity, in either case prior to the date occurring ninety-one (91) days following  the  Latest Maturity Date as of the date such Indebtedness  was incurred, except  in  the case  of Extendable Bridge  Loans,  (iv) any  “asset  sale”  mandatory  prepayment  provision  included  in  the  agreement  governing  such  Indebtedness, to the extent incurred by any Credit Party, shall not prohibit the Borrower or the respective Subsidiary  from repaying obligations under this Agreement before prepaying or offering to prepay such Indebtedness, (v) in the  case of any such Indebtedness incurred by a Credit Party that is secured (a) such Indebtedness is secured only by  assets comprising Collateral on a junior-lien basis relative to the Liens on such Collateral securing the Obligations of  the Credit Parties, and not secured by any property or assets of any Credit Party other than the Collateral, (b) the  security agreements relating to such Indebtedness are substantially the same as the Security Documents (with such  differences  as  are  necessary  to  reflect  the  differing  lien  priorities  or  as  otherwise  reasonably  satisfactory  to  the  Administrative  Agent)  and (c) a Junior Representative  acting on  behalf of the  holders  of such  Indebtedness  shall  have  become  party  to  the  Additional  Intercreditor  Agreement; provided  that  if  such  Indebtedness  is  the  initial  incurrence of Permitted Junior Debt that is secured by assets of the Borrower or any other Credit Party, then the  Administrative Agent, the Collateral Agent and the Junior Representative for such Indebtedness shall have executed  and delivered, and Holdings, the Borrower and the Subsidiary Guarantors shall have acknowledged, the Additional  Intercreditor Agreement and (vi) to the extent incurred by any Credit Party, the negative covenants and events of  default, taken as a whole, contained in the agreement governing such Indebtedness, shall not be materially more  favorable  to  the  lenders  providing  such  Permitted  Junior  Loans  than  the  related  provisions  contained  in  this  Agreement; provided that (w) any such terms may be more favorable to the extent they take effect after the Latest  Maturity Date as of  the date such Indebtedness was incurred, and (x) in the event that any agreement evidencing  such Indebtedness contains financial maintenance covenants that are effective prior to the Latest Maturity Date as of  the date such Indebtedness was incurred, the Borrower shall have offered in good faith to enter into an amendment  to this Agreement to add any such financial covenants as are not then contained in this Agreement (provided that a  certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent at least five (5) Business  Days prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material  terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower  has  determined  in  good  faith  that  such  terms  and  conditions  satisfy  the  requirement  set  out  in  the  foregoing                                                  31 

 

  clause (vi),  shall  be  conclusive  evidence  that  such  terms  and  conditions  satisfy  such  requirement  unless  the  Administrative  Agent  provides  notice  to  the  Borrower  of  an  objection  during  such  five  (5)  Business  Day  period  (including a reasonable description of the basis upon which it objects)).            “Permitted Junior Notes” shall mean any Indebtedness of the Borrower or any Restricted Subsidiary in the  form of unsecured or secured notes and incurred pursuant to one or more issuances of such notes; provided that (i)  except as provided in clause (vii) below, no such Indebtedness, to the extent incurred by any Credit Party, shall be  secured by any asset of the Borrower or any of its Subsidiaries, (ii) no such Indebtedness, to the extent incurred by  any Credit Party, shall be guaranteed by any Person other than Holdings, the Borrower or any Subsidiary Guarantor,  (iii) no such Indebtedness shall be subject to scheduled amortization or have a final stated maturity, in either case  prior to the date occurring ninety-one (91) days following the Latest Maturity Date as of the date such Indebtedness  was  incurred,  except  in  the  case  of  Extendable  Bridge  Loans,  (iv)  any  “asset  sale”  offer  to  purchase  covenant  included in the indenture governing such Indebtedness, to the extent incurred by any Credit Party, shall not prohibit  the  Borrower  or  the  respective  Subsidiary  from  repaying  obligations  under  this  Agreement  before  offering  to  purchase  such  Indebtedness,  (v)  the  indenture  governing  such  Indebtedness  shall  not  include  any  financial  maintenance  covenants,  (vi)  the  “default  to  other  indebtedness”  event  of  default  contained  in  the  indenture  governing such Indebtedness shall provide for a “cross-acceleration” or a “cross-acceleration” and “cross-payment  default” rather than a “cross-default,” (vii) in the case of any such Indebtedness incurred by a Credit Party that is  secured (a) such Indebtedness is secured only by assets comprising Collateral on a junior-lien basis relative to the  Liens on such Collateral securing the Obligations of the Credit Parties, and not secured by any property or assets of  any Credit Party other than the Collateral, (b) the security agreements relating to such Indebtedness are substantially  the same as the Security Documents (with such differences as are necessary to reflect the differing lien priorities or  as otherwise reasonably satisfactory to the Administrative Agent) and (c) a Junior Representative acting on behalf of  the holders of such Indebtedness shall have become party to the Additional Intercreditor Agreement; provided that if  such Indebtedness is the initial incurrence of Permitted Junior Debt that is secured by assets of the Borrower or any  other  Credit  Party,  then  the  Administrative  Agent,  the  Collateral  Agent  and  the  Junior  Representative  for  such  Indebtedness  shall  have  executed  and  delivered,  and  the  Borrower  and  the  Subsidiary  Guarantors  shall  have  acknowledged, the Additional Intercreditor Agreement, and (viii) to the extent incurred by any  Credit Party, the  negative covenants and events of default, taken as a whole, contained in the indenture governing such Indebtedness  shall  not be materially  more favorable to the holders of such Permitted Junior Notes than the related provisions  contained in this Agreement; provided that any such terms may be more favorable to the extent they take effect after  the Latest Maturity Date as of the date such Indebtedness was incurred (provided that a certificate of a Responsible  Officer of the Borrower delivered to the Administrative Agent at least five (5) Business Days prior to the incurrence  of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such  Indebtedness or drafts of the documentation relating thereto, stating that the Borrower has determined in good faith  that  such  terms  and  conditions  satisfy  the  requirement  set  out  in  the  foregoing  clause (viii),  shall  be  conclusive  evidence that such terms and conditions satisfy such requirement unless the Administrative Agent provides notice to  the Borrower of an objection during such five (5) Business Day period (including a reasonable description of the  basis upon which it objects)).            “Permitted Junior Notes Documents” shall mean, after the execution and delivery thereof, each Permitted  Junior Notes Indenture, and the Permitted Junior Notes, in each case as the same may be amended, amended and  restated, modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and  thereof.          “Permitted  Junior  Notes  Indenture”  shall  mean  any  indenture  or  similar  agreement  entered  into  in  connection  with  the  issuance  of  Permitted  Junior  Notes,  as  the  same  may  be  amended,  amended  and  restated,  modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and thereof.          “Permitted Liens” shall have the meaning provided in Section 10.01.          “Permitted Notes” shall mean and include (i) any Permitted Junior Notes and (ii) any Permitted Pari Passu  Notes.          “Permitted  Pari  Passu  Loan  Documents”  shall  mean,  after  the  execution  and  delivery  thereof,  each  agreement, document or instrument relating to the incurrence of Permitted Pari Passu Loans, in each case as the                                                  32 

 

  same may be amended, amended and restated, modified, supplemented, extended or renewed from time to time in  accordance with the terms hereof and thereof.           “Permitted Pari Passu Loans” shall mean any Indebtedness of the Borrower or any Restricted Subsidiary in  the form of secured loans; provided that, (i) no such Indebtedness, to the extent incurred by any Credit Party, shall  be  guaranteed  by  any  Person  other  than  Holdings,  the  Borrower  or  any  Subsidiary  Guarantor,  (ii)  no  such  Indebtedness shall have a final stated maturity prior to the Latest Maturity Date as of the date such Indebtedness was  incurred,  except  in  the  case  of Extendable  Bridge  Loans,  (iii)  any  “asset  sale”  mandatory  prepayment  provision  included in the agreement governing such Indebtedness, to the extent incurred by any Credit Party, shall not prohibit  the Borrower or the respective Subsidiary from repaying Term Loans under this Agreement on at least a pro rata  basis  with  such  Indebtedness  from  asset  sale  proceeds,  (iv)(a) such  Indebtedness  is  secured  only  by  assets  comprising Collateral on a pari passu basis relative to the Liens on such Collateral securing the Obligations of the  Credit  Parties,  and  not  secured  by  any  property  or  assets  of  any  Credit  Party  other  than  the  Collateral,  (b) the  security agreements relating to such Indebtedness are substantially the same in all material respects as the Security  Documents (or with such differences as are reasonably satisfactory to the Administrative Agent) and (c) a Pari Passu  Representative  acting  on  behalf  of  the  holders  of  such  Indebtedness  shall  have  become  party  to  the  Pari  Passu  Intercreditor Agreement; provided that if such Indebtedness is the initial incurrence of Permitted Pari Passu Loans  by a Credit Party, then the Administrative Agent, the Collateral Agent and the Pari Passu Representative for such  Indebtedness shall  have executed and delivered, and  Holdings,  the Borrower and the Subsidiary Guarantors  shall  have  acknowledged,  the  Pari  Passu  Intercreditor  Agreement,  (v) to  the  extent  incurred  by  any  Credit  Party,  the  negative covenants and events of default, taken as a whole, contained in the agreement governing such Indebtedness  shall  not be  materially  more favorable to the lenders  providing  such Permitted Pari  Passu  Loans  than  the related  provisions contained in this Agreement; provided that any such terms may be more favorable to the extent they take  effect  after  the  applicable  Latest  Maturity  Date  as  of  the  date  such  Indebtedness  was  incurred  (provided  that  a  certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent at least five (5) Business  Days prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material  terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower  has  determined  in  good  faith  that  such  terms  and  conditions  satisfy  the  requirement  set  out  in  the  foregoing  clause (v),  shall  be  conclusive  evidence  that  such  terms  and  conditions  satisfy  such  requirement  unless  the  Administrative  Agent  provides  notice  to  the  Borrower  of  an  objection  during  such  five  (5)  Business  Day  period  (including a reasonable description of the basis upon which it objects)) and (vi) such Indebtedness is subject to the  MFN Pricing Test.            “Permitted Pari Passu Notes” shall mean any Indebtedness of the Borrower or any Restricted Subsidiary in  the form of secured notes and incurred pursuant to one or more issuances of such notes; provided that, (i) no such  Indebtedness, to the extent incurred by any Credit Party, shall be guaranteed by any Person other than Holdings, the  Borrower or any Subsidiary Guarantor, (ii) no such Indebtedness shall have a final stated maturity prior to the Latest  Maturity Date as of the date such Indebtedness was incurred, except in the case of Extendable Bridge Loans, (iii)  any  “asset  sale”  offer  to  purchase  covenant  included  in  the  indenture  governing  such  Indebtedness,  to  the  extent  incurred by any Credit Party, shall not prohibit the Borrower or the respective Subsidiary from repaying Term Loans  under this Agreement on at least a pro rata basis with such Indebtedness from asset sale proceeds, (iv) the indenture  governing  such  Indebtedness  shall  not  include  any  financial  maintenance  covenants,  (v) the  “default  to  other  indebtedness” event of default contained in the indenture governing such Indebtedness shall provide for a “cross- acceleration”  or  a  “cross-acceleration”  and  “cross-payment  default”  rather  than  a  “cross-default,”  (vi) (a) such  Indebtedness is secured only by assets comprising Collateral on a pari  passu  basis  relative  to  the  Liens  on  such  Collateral securing the Obligations of the Credit Parties, and not  secured by any property or assets of any  Credit  Party other than the Collateral, (b) the security agreements relating to such Indebtedness are substantially the same  in all material respects as the Security Documents (or with such differences as are reasonably satisfactory to the  Administrative Agent) and (c) a Pari Passu Representative acting on behalf of the holders of such Indebtedness shall  have become party to the Pari Passu Intercreditor Agreement; provided that if such Indebtedness is the initial issue  of Permitted Pari Passu Notes by a Credit Party, then the Administrative Agent, the Collateral Agent and the Pari  Passu Representative for such Indebtedness shall have executed and delivered, and Holdings, the Borrower and the  Subsidiary  Guarantors  shall  have  acknowledged,  the  Pari  Passu  Intercreditor  Agreement,  and  (vii) to  the  extent  incurred  by  any  Credit  Party,  the  negative  covenants  and  events  of  default,  taken  as  a  whole,  contained  in  the  indenture governing such Indebtedness shall not be materially more favorable to the holders of such Permitted Pari  Passu Notes than the related provisions contained in this Agreement; provided that any  such terms  may be  more                                                  33 

 

  favorable to the extent they take effect after the Latest Maturity Date as of the date such Indebtedness was incurred  (provided that a certificate of a Responsible Officer of the Borrower delivered to the Administrative Agent at least  five (5) Business Days prior to the incurrence of such Indebtedness, together with a reasonably detailed description  of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that  the  Borrower  has  determined  in  good  faith  that  such  terms  and  conditions  satisfy  the  requirement  set  out  in  the  foregoing clause (vii), shall be conclusive evidence that such terms and conditions satisfy such requirement unless  the Administrative Agent provides notice to the Borrower of an objection during such five (5) Business Day period  (including a reasonable description of the basis upon which it objects)).            “Permitted  Pari  Passu  Notes  Documents”  shall  mean,  after  the  execution  and  delivery  thereof,  each  Permitted Pari Passu Notes Indenture and the Permitted Pari Passu Notes, in each case as the same may be amended,  amended and restated, modified, supplemented, extended or renewed from time to time in accordance with the terms  hereof and thereof.          “Permitted  Pari  Passu  Notes  Indenture”  shall  mean  any  indenture  or  similar  agreement  entered  into  in  connection with the issuance of Permitted Pari Passu Notes, as the same may be amended, amended and restated,  modified, supplemented, extended or renewed from time to time in accordance with the terms hereof and thereof.          “Permitted Refinancing Indebtedness” shall mean Indebtedness incurred by the Borrower or any Restricted  Subsidiary  which  serves  to  extend,  replace,  refund,  refinance,  renew  or  defease  (“Refinance”)  any  Indebtedness,  including any previously issued Permitted Refinancing Indebtedness, so long as:                  (1)    the principal amount of such new Indebtedness does not exceed (a) the principal amount         of Indebtedness (including any unused commitments therefor that are able to be drawn at such time) being         so  extended,  replaced,  refunded,  refinanced,  renewed  or  defeased  (such  Indebtedness,  the  “Refinanced         Debt”), plus (b) any accrued and unpaid interest and fees on such Refinanced Debt, plus (c) the amount of         any tender or redemption premium paid thereon or any penalty or premium required to be paid under the         terms of the instrument or documents governing such Refinanced Debt and any costs, fees and expenses         incurred in connection with the issuance of such new Indebtedness and the Refinancing of such Refinanced         Debt;                  (2)    except in the case of Extendable Bridge Loans, such Permitted Refinancing Indebtedness         has a:                         (a)    Weighted  Average  Life  to  Maturity  at  the  time  such  Permitted  Refinancing                 Indebtedness is incurred that is not less than the remaining Weighted Average Life to Maturity of                 the applicable Refinanced Debt; and                         (b)     final scheduled maturity date equal to or later than the final scheduled maturity                 date of the Refinanced Debt (or, if earlier, the date that is 91 days after the Latest Maturity Date as                 of the date such Indebtedness was incurred);                  (3)    to the extent such Permitted Refinancing Indebtedness Refinances (a) Indebtedness that is         expressly subordinated in right of payment to the Obligations (other than Indebtedness assumed or acquired         in  an  acquisition  and  not  created  in  contemplation  thereof),  such  Permitted  Refinancing  Indebtedness  is         subordinated  to  the  Obligations  on  terms  that  are,  taken  as  a  whole,  not  materially  less  favorable  to  the         Lenders  than  the  subordination  terms  applicable  to  the  Refinanced  Debt,  (b)  secured  by  Liens  that  are         subordinated  to  the  Liens  securing  the  Obligations,  such  Permitted  Refinancing  Indebtedness  is         (i) unsecured or (ii) secured by Liens that are subordinated to the Liens that secure the Obligations on terms         that are, taken as a whole, not materially less favorable to the Lenders than the Lien subordination terms         applicable to the Refinanced Debt or (c) secured by Liens that are pari passu with the Liens securing the         Obligations, such Permitted Refinancing Indebtedness is (i) unsecured or (ii) secured by Liens that are pari         passu  or  subordinated  to  the  Liens  that  secure  the  Obligations  on  terms  that  are,  taken  as  a  whole,  not         materially less favorable to the Lenders than the Collateral sharing provisions applicable to the Refinanced         Debt; and                                                   34 

 

                 (4)    subject  to  Section 10.01(vi),  such  Permitted  Refinancing  Indebtedness  shall  not  be         secured by any assets or property of the Borrower or any Restricted Subsidiary that does not secure the         Refinanced  Debt  being  Refinanced  (plus  improvements  and  accessions  thereon  and  proceeds  in  respect         thereof);   provided that (a) Permitted Refinancing Indebtedness will not include Indebtedness of a Restricted Subsidiary of the  Borrower that is not a Subsidiary Guarantor that refinances Indebtedness of the Borrower or a Subsidiary Guarantor,  (b) clause (2) of this definition will not apply to any Refinancing of any Indebtedness under clause (iii) or (v) of  Section 10.04.          “Person”  shall  mean  any  individual,  partnership,  joint  venture,  firm,  corporation,  association,  limited  liability company, trust or other enterprise or any government or political subdivision or any agency, department or  instrumentality thereof.          “Plan” shall mean any pension plan as defined in Section 3(2) of ERISA other than a Foreign Pension Plan  or a Multiemployer Plan, which is maintained or contributed to by (or to which there is an obligation to contribute  of) the Borrower or a Restricted Subsidiary of the Borrower or with respect to which the Borrower or a Restricted  Subsidiary of the Borrower has, or may have, any liability, including, for greater certainty, liability arising from an  ERISA Affiliate.          “Platform”  shall  mean  Debt  Domain,  Intralinks,  Syndtrak,  ClearPar  or  a  substantially  similar  electronic  transmission system.           “Pledged Collateral” shall have the meaning provided in the Security Agreement.          “Prime Rate” shall mean the rate of interest per annum publicly announced from time to time by Citi as its  prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from  and including the date such change is publicly announced as being effective.          “Pro Forma Basis” shall mean, with respect to the calculation of any test, financial ratio, basket or covenant  under this Agreement, including the Consolidated First Lien Net Leverage Ratio and the Consolidated Total Net  Leverage Ratio and the calculation of Consolidated Total Assets and Consolidated EBITDA, of any Person and its  Restricted  Subsidiaries,  as  of  any  date,  that pro  forma  effect  will  be  given  to  the  Transaction,  any  acquisition,  merger,  consolidation,  Investment,  any  issuance,  incurrence,  assumption  or  repayment  or  redemption  of  Indebtedness (including Indebtedness issued, incurred or assumed or repaid or redeemed as a result of, or to finance,  any relevant  transaction  and  for  which any  such test, financial ratio, basket  or  covenant  is  being calculated)  (but  excluding the identifiable proceeds of any Indebtedness being incurred substantially simultaneously therewith or as  part of the same transaction or series of related transactions for purposes of netting cash to calculate the applicable  ratio), any issuance or redemption of preferred stock or Disqualified Stock, all sales, transfers and other dispositions  or discontinuance of any Subsidiary, line of business, division, segment or operating unit, any operational change  (including the entry into any material contract or arrangement) or any designation of a Restricted Subsidiary to an  Unrestricted Subsidiary or of an Unrestricted Subsidiary to a Restricted Subsidiary, in each case that have occurred  during  the four consecutive fiscal quarter  period  of such  Person being used to calculate  such  test, financial  ratio,  basket or covenant (the “Reference Period”), or subsequent to the end of the Reference Period but prior to such date  or prior to or simultaneously with the event for which a determination under this definition is made (including any  such  event  occurring  at  a  Person  who  became  a  Restricted  Subsidiary  of  the  subject  Person  or  was  merged,  amalgamated or consolidated with or into the subject Person or any other Restricted Subsidiary of the subject Person  after the commencement of the Reference Period), as if each such event occurred on the first day of the Reference  Period.          For purposes of making any computation referred to above:                  (1)    if any Indebtedness bears a floating rate of interest and is being given pro forma effect,         the  interest  on  such  Indebtedness  shall  be  calculated  as  if  the  rate  in  effect  on  the  date  for  which  a         determination under this definition is made had been the applicable rate for the entire period (taking into                                                   35 

 

         account  any  Interest  Rate  Protection  Agreements  or  Other  Hedging  Agreements  applicable  to  such         Indebtedness if such Interest Rate Protection Agreements or Other Hedging Agreements has a remaining         term in excess of such period);                  (2)    interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate         reasonably determined by a responsible financial or accounting officer, in his or her capacity as such and         not in his or her personal capacity, of the Borrower to be the rate of interest implicit in such Capitalized         Lease Obligation in accordance with U.S. GAAP;                  (3)    interest on Indebtedness that may optionally be determined at an interest rate based upon         a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to         have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the         Borrower may designate; and                  (4)    interest on any Indebtedness under a revolving credit facility computed on a pro forma         basis shall be computed based upon the average daily balance of such Indebtedness during the applicable         period.          Any pro  forma  calculation  may  include,  without  limitation,  adjustments  calculated  in  accordance  with  Regulation S-X under the Securities Act.  Any pro forma calculation may include, without limitation, adjustments  calculated to give effect to any Pro Forma Cost Savings; provided that any such adjustments, other than Specified  Permitted Adjustments, that consist of reductions in costs and other operating improvements or synergies (whether  added pursuant to this definition, the definition of “Pro Forma Cost Savings” or otherwise added to Consolidated  Net Income or Consolidated EBITDA) shall be calculated in accordance with, and satisfy the requirements specified  in, the definition of “Pro Forma Cost Savings.”          “Pro Forma Cost Savings” shall mean, without duplication of any amounts referenced in the definition of  “Pro  Forma  Basis,”  an  amount  equal  to  the  amount  of  cost  savings,  operating  expense  reductions,  operating  improvements (including the  entry  into any  material contract or arrangement) and acquisition synergies, in each  case, projected in good faith to be realized (calculated on a pro forma basis as though such items had been realized  on the first day of such period) as a result of actions taken on or prior to, or to be taken by the Borrower (or any  successor thereto) or any Restricted Subsidiary within 18 months of, the date of such pro forma calculation, net of  the amount of actual benefits realized or expected to be realized during such period that are otherwise included in  the calculation of Consolidated EBITDA from such action; provided that (a) such cost savings, operating expense  reductions,  operating  improvements  and  synergies  are  factually  supportable  and  reasonably  identifiable  (as  determined in good faith by a responsible financial or accounting officer, in his or her capacity as such and not in his  or her personal capacity, of the Borrower (or any successor thereto)) and are reasonably anticipated to be realized  within 18 months after the date of such pro forma calculation and (b) no cost savings, operating expense reductions,  operating  improvements  and  synergies  shall  be  added  pursuant  to  this  definition  to  the  extent  duplicative  of  any  expenses or charges otherwise added to Consolidated Net Income or Consolidated EBITDA, whether through a pro  forma  adjustment  or  otherwise,  for  such  period; provided, further,  that,  except  for  the  Specified  Permitted  Adjustments, (i) the aggregate amount added in respect of the foregoing proviso (or otherwise added to Consolidated  Net Income or Consolidated EBITDA), solely with respect to acquisitions after the Closing Date, shall not exceed  with respect to any four quarter period 25% of Consolidated EBITDA for such period (calculated after giving effect  to  any  such  adjustments,  after  giving  effect  to  the  Specified  Permitted  Adjustments,  if  applicable)  and  (ii)  the  aggregate  amount  added  in  respect  of  the  foregoing  proviso  (or  otherwise  added  to  Consolidated  Net  Income  or  Consolidated  EBITDA)  shall  no  longer  be  permitted  to  be  added  back  to  the  extent  the  cost  savings,  operating  expense reductions, operating improvements and synergies have not been achieved within 18 months of the action or  event giving rise to such cost savings, operating expense reductions, operating improvements and synergies.          “PTE” shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any  such exemption may be amended from time to time.          “Public Company Costs” shall mean, as to any Person, costs relating to compliance with the provisions of  the Securities Act and the Securities Exchange Act, and any other comparable body of laws, rules or regulations, as  applicable to companies with equity securities held by the public, costs associated with, or in anticipation of, or in                                                  36 

 

  preparation for, compliance with the requirements of the Sarbanes Oxley Act of 2002 and the rules and regulations  promulgated  in  connection  therewith,  the  rules  of  national  securities  exchanges,  as  applicable  to  companies  with  listed  equity,  directors’  compensation,  fees  and  expense  reimbursement,  costs  relating  to  investor  relations,  shareholder meetings and reports to shareholders, directors’ and officers’ insurance and other executive costs, legal  and  other  professional  fees,  and  listing  fees,  in  each  case  to  the  extent  arising  solely  by  virtue  of  listing  such  Person’s equity securities on a national securities exchange.           “Public-Sider” shall mean a Lender whose representatives may trade in securities of the Borrower or its  controlling person or any of its Subsidiaries or any Parent Company while in possession of the financial statements  provided by the Borrower under the terms of this Agreement.          “QFC”  shall  have  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” shall have the meaning provided in Section 13.25.          “Qualified ECP Guarantor” shall have the meaning provided in Section 14.11.          “Qualified Preferred Stock” shall mean any preferred capital stock of Holdings or the Borrower so long as  the terms of any such preferred capital stock (x) do not contain any mandatory put, redemption, repayment, sinking  fund or other similar provision prior to the 91st day after the Latest Maturity Date as of the date such Qualified  Preferred  Stock  was  issued  other  than  (i)  provisions  requiring  payment  solely  (or  with  provisions  permitting  Holdings or the Borrower, as applicable, to opt to make payment solely) in the form of common Equity Interests or  Qualified  Preferred  Stock  of  Holdings  or  the  Borrower  or  cash  in  lieu  of  fractional  shares,  as  applicable,  or  any  Equity  Interests  of  any  Parent  Company  of  Holdings  or  the  Borrower,  as  applicable,  (ii)  provisions  requiring  payment solely as a result of a change of control or asset sale, so long as any rights of the holders thereof upon the  occurrence of a change of control or asset sale are subject to the payment in full of all Obligations in cash (other  than unasserted contingent indemnification obligations) or such payment is otherwise permitted by this Agreement  (including as a result of a waiver or amendment hereunder) and (iii) with respect to preferred capital stock issued to  any plan for the benefit of employees of Holdings or the Borrower, as applicable, or its Subsidiaries or by any such  plan  to  such  employees,  provisions  requiring  the  repurchase  thereof  in  order  to  satisfy  applicable  statutory  or  regulatory  obligations  and  (y)  give  Holdings  or  the  Borrower  the  option  to  elect  to  pay  such  dividends  or  distributions on a non-cash basis or otherwise do not require the cash payment of dividends or distributions at any  time that such cash payment is not permitted under this Agreement or would result in an Event of Default hereunder.          “Real Property” of any Person shall mean, collectively, the right, title and interest of such Person (including  any  leasehold,  mineral  or  other  estate)  in  and  to  any  and  all  land,  improvements  and  fixtures  owned,  leased  or  operated  by  such  Person,  together  with,  in  each  case,  all  easements,  hereditaments  and  appurtenances  relating  thereto,  all improvements and  appurtenant  fixtures and equipment, all  general intangibles  and  contract rights and  other property and rights incidental to the ownership, lease or operation thereof.          “Recipient” shall mean the Administrative Agent, any Lender, or any other recipient of any payment to be  made by or on account of any obligation of any Credit Party under any Credit Document.          “Recovery Event” shall mean the receipt by the Borrower or any of its Restricted Subsidiaries of any cash  insurance proceeds or condemnation awards payable (i) by reason of theft, loss, physical destruction, damage, taking  or any other similar event with respect to any property or assets of the Borrower or any of its Restricted Subsidiaries  (but not by reason of any loss of revenues or interruption of business or operations caused thereby) and (ii) under  any policy of insurance required to be maintained under Section 9.03, in each case to the extent such proceeds or  awards do not constitute reimbursement or compensation for amounts previously paid by the Borrower or any of its  Restricted Subsidiaries in respect of any such event.          “Reference Period” shall have the meaning provided in the definition of the term “Pro Forma Basis”.                                                   37 

 

         “Refinance”  shall  have  the  meaning  provided  in  the  definition  of  the  term  “Permitted  Refinancing  Indebtedness”.           “Refinanced Debt” shall have the meaning provided in the definition of the term “Permitted Refinancing  Indebtedness”.          “Refinancing Effective Date” shall have the meaning specified in Section 2.18(a).           “Refinancing Note Documents” shall mean the Refinancing Notes, the Refinancing Notes Indenture and  all other documents executed and delivered with respect to the Refinancing Notes or Refinancing Notes Indenture,  as the same may be amended, amended and restated, modified, supplemented, extended or renewed from time to  time in accordance with the terms hereof and thereof.          “Refinancing Notes” shall mean Permitted Junior Debt or Permitted Pari Passu Notes (or Indebtedness that  would constitute Permitted Junior Debt or Permitted Pari Passu Notes except as a result of a failure to comply with  any  maturity  or  amortization  requirement  applicable  thereto),  in  each  case,  that  constitute  Permitted  Refinancing  Indebtedness in respect of any Term Loans.          “Refinancing Notes Indenture” shall mean the indenture entered into with respect to the Refinancing Notes  and pursuant to which same shall be issued.          “Refinancing Term Loan Amendment” shall have the meaning specified in Section 2.18(c).          “Refinancing Term Loan Commitments” shall mean one or more commitments hereunder to provide a new  Tranche of Refinancing Term Loans or Refinancing Term Loans under an existing Tranche of Term Loans.           “Refinancing Term Loan Documents” shall mean the documents executed and delivered with respect to the  Refinancing  Term  Loans,  including,  without  limitation,  any  Refinancing  Term  Loan  Amendments,  as  such  Refinancing Term Loan Documents may be amended, amended and restated, modified, supplemented, extended or  renewed from time to time in accordance with the terms hereof and thereof.          “Refinancing Term Loan Lender” shall have the meaning specified in Section 2.18(b).          “Refinancing Term Loan Series” shall have the meaning specified in Section 2.18(b).          “Refinancing Term Loans” shall have the meaning specified in Section 2.18(a).          “Register” shall have the meaning provided in Section 13.04(b)(iv).          “Regulation D” shall mean Regulation D of the Board of Governors of the Federal Reserve System as from  time to time in effect and any successor to all or a portion thereof establishing reserve requirements.          “Regulation T” shall mean Regulation T of the Board of Governors of the Federal Reserve System as from  time to time in effect and any successor to all or a portion thereof.          “Regulation U” shall mean Regulation U of the Board of Governors of the Federal Reserve System as from  time to time in effect and any successor to all or a portion thereof.          “Regulation X” shall mean Regulation X of the Board of Governors of the Federal Reserve System as from  time to time in effect and any successor to all or a portion thereof.          “Rejection Notice” shall have the meaning provided in Section 5.02(k).          “Related  Party”  shall  mean  (a)  with  respect  to  Platinum  Equity  Advisors,  LLC,  (i)  any  investment  fund  controlled by or under common control with Platinum Equity Advisors, LLC, any officer or director of the foregoing                                                   38 

 

  persons, or any entity controlled by any of the foregoing persons and (ii) any spouse or lineal descendant (including  by adoption or stepchildren) of the officers and directors referred to in clause (a)(i); (b) with respect to any officer of  the Borrower or its Subsidiaries, (i) any spouse or lineal descendant (including by adoption and stepchildren) of such  officer  and  (ii)  any  trust,  corporation  or  partnership  or other  entity,  in  each  case  to  the  extent  not  an  operating  company, of which an 80% or more controlling interest is held by the beneficiaries, stockholders, partners or owners  who  are  the  officer,  any  of  the  persons  described  in  clause  (b)(i)  above  or  any  combination  of  these  identified  relationships  and  (c)  with  respect  to  any  Agent,  such  Agent’s  Affiliates  and  the  respective  directors,  officers,  employees, agents and advisors of such Agent and such Agent’s Affiliates.          “Release”  shall  mean  actively  or  passively  disposing,  discharging,  injecting,  spilling,  pumping,  leaking,  leaching, dumping, emitting, escaping, emptying, pouring, seeping, migrating or the like, of any Hazardous Material  into, through or upon the Environment or within, from or into any building, structure, facility or fixture.          “Relevant  Governmental  Body”  means  the  Federal  Reserve  Board  and/or  NYFRB,  or  a  committee  officially endorsed or convened by the Federal Reserve Board and/or NYFRB or any successor thereto.          “Replaced Lender” shall have the meaning provided in Section 2.13.          “Replacement Lender” shall have the meaning provided in Section 2.13.          “Repricing Transaction” shall mean (1) the incurrence by the Borrower or any of its Restricted Subsidiaries  of any Indebtedness in the form of syndicated term loans secured by the Collateral on a pari passu basis relative to  the  Liens  on  such  Collateral  securing  the  Obligations  (including,  without  limitation,  any  new  or  additional  term  loans  under  this  Agreement  (including  Refinancing  Term  Loans),  whether  incurred  directly  or  by  way  of  the  conversion of Initial Term Loans into a new tranche of replacement term loans under this Agreement) (i) having an  Effective Yield that is less than the Effective Yield for Initial Term Loans, (ii) the proceeds of which are used to  prepay (or, in the case of a conversion, deemed to prepay or replace), in whole or in part, outstanding principal of  Initial Term Loans or (2) any effective reduction in the Applicable Margin for Initial Term Loans (e.g., by way of  amendment,  waiver  or  otherwise)  (with  such  determination  to  be  made  in  the  reasonable  judgment  of  the  Administrative Agent, consistent with generally accepted financial practices), in each case, to the extent the primary  purpose  of  such  incurrence  or  reduction  is  to  reduce  the  Effective  Yield  applicable  to  the  Initial  Term  Loans;  provided that  any  prepayment,  replacement  or  amendment  in  connection  with  a  Change  of  Control,  the  implementation of LIBOR successor provisions, or an acquisition or Investment not permitted by this Agreement or  permitted but with respect to which the Borrower has determined in good faith that this Agreement will not provide  sufficient flexibility for the operation of the combined business following consummation thereof shall not constitute  a Repricing Transaction.            “Required Lenders” shall mean Non-Defaulting Lenders, the sum of whose outstanding principal of Term  Loans as of any date of determination represents greater than 50% of the sum of all outstanding principal of Term  Loans of Non-Defaulting Lenders at such time.          “Requirement of Law” or “Requirements of Law” shall mean, with respect to any Person, (i) the charter,  articles or certificate of organization or incorporation and bylaws or other organizational or governing documents of  such Person and (ii) any statute, law, treaty, rule, regulation, order, decree, writ, injunction or determination of any  arbitrator or court or other Governmental Authority, in each case applicable to or binding upon such Person or any  of its property or to which such Person or any of its property is subject.          “Resolution Authority” means any body which has authority to exercise any Write-down and Conversion  Powers.          “Responsible Officer” shall mean, with respect to any Person, its chief financial officer, chief executive  officer,  president,  or  any  vice  president,  managing  director,  treasurer,  controller  or  other  officer  of  such  Person  having  substantially  the  same  authority  and  responsibility  and,  solely  for  purposes  of  notices  given  pursuant  to  Section 2, any other officer or employee of the applicable Credit Party so designated by any of the foregoing officers  in a notice to the Administrative Agent or any other officer or employee of the applicable Credit Party designated in  or pursuant to an agreement between the applicable Credit Party and the Administrative Agent; provided that, with                                                  39 

 

  respect  to  compliance  with  financial  covenants,  “Responsible  Officer”  shall  mean  the  chief  financial  officer,  treasurer or controller of the Borrower, or any other officer of the Borrower having substantially the same authority  and responsibility.          “Restricted  Subsidiary”  shall  mean  each  Subsidiary  of  the  Borrower  other  than  any  Unrestricted  Subsidiaries.          “Returns” shall have the meaning provided in Section 8.09.          “S&P” shall mean S&P Global Ratings, a division of S&P Global Inc., and any successor owner of such  division.          “Sale-Leaseback Transaction” shall mean any arrangements with any Person providing for the leasing by  the Borrower or any of its Restricted Subsidiaries of real or personal property which has been or is to be sold or  transferred by the Borrower or such Restricted Subsidiary to such Person or to any other Person to whom funds have  been or are to be advanced by such Person in connection therewith.          “Sanctioned Country” shall mean a country, region or territory that at any time is the subject or target of  any comprehensive territorial Sanctions (as of the Closing Date, the Crimea region of the Ukraine, Cuba, Iran, North  Korea and Syria).           “Sanctioned  Person”  shall  mean,  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, or by the United Nations Security Council, the European Union or any European Union  member state, (b) any Person organized or resident in a Sanctioned Country or (c) any Person owned or controlled  by any such Person or Persons described in the foregoing clause (a) or (b).          “Sanctions”  shall  mean  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, any European Union member state or Her Majesty’s Treasury of the United Kingdom.          “Scheduled Repayment” shall have the meaning provided in Section 5.02(a).          “Scheduled Repayment Date” shall have the meaning provided in Section 5.02(a).          “Scheduled Unavailability Date” shall have the meaning provided in Section 2.16(a)(ii).           “SEC” shall have the meaning provided in Section 9.01(g).          “Second Lien Notes” shall mean the Borrower’s 10.00% senior secured second lien notes due 2024  pursuant to the Second Lien Notes Indenture.          “Second Lien Notes Indenture” shall mean the Indenture dated as of May 13, 2019, pursuant to which the  Second Lien Notes were issued, as amended, restated, supplemented or otherwise modified on or prior to the  Closing Date.          “Section 9.01 Financials” shall mean the annual and quarterly financial statements required to be delivered  pursuant to Sections 9.01(a) and (b) or, if applicable, Section 9.01(c) in lieu thereof.          “Secured Creditors” shall have the meaning assigned that term in the respective Security Documents.          “Securities  Act”  shall  mean  the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations  promulgated thereunder.                                                   40 

 

         “Securities Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and  regulations promulgated thereunder.          “Security Agreement” shall mean that certain Security Agreement in the form of Exhibit G, dated as of the  Closing Date, by and among the Credit Parties party thereto from time to time as grantors and the Collateral Agent,  as may be amended, amended and restated, modified, supplemented, extended or renewed from time to time in  accordance with the terms thereof.          “Security Document” shall mean and include each of the Security Agreement, each Mortgage and, after the  execution and delivery thereof, each Additional Security Document.          “Senior  Notes”  shall  mean  the  Borrower’s  9.250%  senior  notes  due  2024  pursuant  to  the  Senior  Notes  Indenture.          “Senior Notes  Indenture” shall  mean the Indenture dated as  of  October 17, 2016, pursuant  to  which the  Senior  Notes  were  issued,  as  amended,  restated,  supplemented  or  otherwise  modified  on  or  prior  to  the  Closing  Date.          “Similar  Business”  shall  mean  any  business  and  any  services,  activities  or  businesses  incidental,  or  reasonably  related  or  similar  to,  or  complementary  to  any  line  of  business  engaged  in  by  the  Borrower  and  its  Restricted Subsidiaries on the Closing Date (after giving effect to the Transaction) or any business activity that is a  reasonable extension, development or expansion thereof or ancillary thereto.           “Solvent” and  “Solvency” shall  mean,  with  respect to any Person on any date of determination, that  on  such date (i) the fair value of the assets of such Person and its Subsidiaries, on a consolidated basis, is greater than  the total amount of liabilities, including contingent liabilities, of such Person and its Subsidiaries, on a consolidated  basis (it being understood that the amount of contingent liabilities at any time shall be computed as the amount that,  in  light  of  all  the  facts  and  circumstances  existing  at  such  time,  represents  the  amount  that  can  reasonably  be  expected to become an actual or matured liability); (ii) the present fair saleable value of the assets of such Person  and  its  Subsidiaries,  on  a  consolidated  basis,  is  greater  than  the  total  amount  of  liabilities,  including  contingent  liabilities,  of  such  Person  and  its  Subsidiaries,  on  a  consolidated  basis  (it  being  understood  that  the  amount  of  contingent liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances  existing  at  such  time,  represents  the  amount  that  can  reasonably  be  expected  to  become  an  actual  or  matured  liability); (iii) such Person and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities  (including,  without limitation,  contingent  and subordinated liabilities)  as  they  become absolute and  mature in  the  ordinary course of business on their respective stated maturities and are otherwise “solvent” within the meaning  given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances; and (iv)  such Person and its Subsidiaries on a consolidated basis have, and will have, adequate capital with which to conduct  the business they are presently conducting and reasonably anticipate conducting.          “Specified Credit Party” shall mean any Credit Party that is not an “eligible contract participant” under the  Commodity Exchange Act (determined prior to giving effect to Section 14.11).          “Specified Permitted Adjustments” shall mean all adjustments identified in the calculation of “Pro Forma  Adjusted EBITDA” as set forth in the “Pro Forma Adjusted EBITDA Reconciliation” in the confidential information  memorandum  for  the  Initial  Term  Loans  to  the  extent  such  adjustments,  without  duplication,  continue  to  be  applicable to the reference period (it being understood that such adjustments shall be calculated net of the amount of  actual benefits realized or expected to be realized during such reference period that are otherwise included in the  calculation of Consolidated EBITDA).          “Specified Representations” shall mean the representations and warranties of the Credit Parties set forth in  Sections  8.02,  8.03(iii)  (in  the  case  of  any  Tranche  of  Term  Loans  with  respect  to  which  such  Specified  Representations are made, limited to the incurrence of such Tranche of Term Loans in the case of the Borrower, the  provision of the applicable Guaranty in the case of each Guarantor and the grant of the Liens in the Collateral to the  Collateral Agent for the benefit of the Secured Creditors in the case of all Credit Parties), 8.05(b), 8.08(c) (in the                                                   41 

 

  case of any Tranche of Term Loans with respect to which such Specified Representations are made, limited to the  incurrence and use of proceeds thereof), 8.08(d) (in the case of any Tranche of Term Loans with respect to which  such Specified Representations are made, limited to the incurrence and use of proceeds thereof), 8.11, 8.15 (in the  case of any Tranche of Term Loans with respect to which such Specified Representations are made, limited to the  incurrence and use of proceeds thereof) and 8.16 (in the case of any Tranche of Term Loans with respect to which  such Specified Representations are made, limited to the incurrence and use of proceeds thereof).          “Sponsor” shall mean Platinum Equity Advisors, LLC and its Affiliates (excluding any operating portfolio  company thereof).          “Sponsor  Affiliate”  shall  mean  the  collective  reference  to  any  entities  (other  than  a  portfolio  company)  controlled directly or indirectly by the Sponsor          “Subordinated Indebtedness” shall mean any Indebtedness that is expressly subordinated in right of  payment to the Obligations.          “Subsidiaries Guaranty” shall mean that certain Subsidiaries Guaranty in the form of Exhibit H, dated as of  the Closing Date, by and among the Credit Parties party thereto from time to time as guarantors and the  Administrative Agent, as may be amended, amended and restated, modified, supplemented, extended or renewed  from time to time in accordance with the terms thereof.          “Subsidiary” shall mean, as to any Person, (i) any corporation more than 50% of whose stock of any class  or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation  (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have  voting power by reason of the happening of any contingency) is at the time owned by such Person and/or one or  more Subsidiaries of such Person and (ii) any partnership, limited liability company, association, joint venture or  other  entity  in  which  such  Person  and/or  one  or  more  Subsidiaries  of  such  Person  has  more  than  a  50%  Equity  Interest at the time.          “Subsidiary Guarantor” shall mean each Restricted Subsidiary of the Borrower in existence on the Closing  Date  (after  giving  effect  to  the  Transaction)  other  than  any  Excluded  Subsidiary,  as  well  as  each  Restricted  Subsidiary of the Borrower established, created or acquired after the Closing Date which becomes a party to the  Subsidiaries Guaranty in accordance with the requirements of this Agreement or the provisions of the Subsidiaries  Guaranty.           “Supermajority Lenders” of any Tranche shall mean those Non-Defaulting Lenders which would constitute  the  Required  Lenders  under,  and  as  defined  in,  this  Agreement  if  (x)  all  outstanding  Obligations  of  the  other  Tranches under this Agreement were repaid in full and all Commitments with respect thereto were terminated and  (y) the percentage “50%” contained therein were changed to “66-2/3%.”          “Supported QFC” shall have the meaning provided in Section 13.25.          “Swap Obligation” shall mean, with respect to any Guarantor, any obligation to pay or perform under any  agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity  Exchange Act.          “Synthetic Lease” shall  mean a lease transaction under which the parties intend that (i) the lease will be  treated as an “operating lease” by the lessee and (ii) the lessee will be entitled to various tax and other benefits  ordinarily available to owners (as opposed to lessees) of like property.          “Tax Receivable Agreement” shall mean that certain Tax Receivable Agreement, dated as of February 7,  2020, by and between Ultimate Parent and VPE Holdings, LLC, a Delaware limited liability company, as may be  amended, amended and restated, modified, supplemented, extended or renewed from time to time.                                                   42 

 

         “Taxes” shall mean any and all present or future taxes, levies, imposts, duties, deductions, charges, fees,  assessments,  liabilities  or  withholdings  imposed by any  Governmental Authority  in the  nature of a tax, including  interest, penalties and additions to tax with respect thereto.           “Term  Loan  Commitment”  shall  mean,  for  each  Lender,  its  Initial  Term  Loan  Commitment,  its  Refinancing Term Loan Commitment or its Incremental Term Loan Commitment.          “Term Loan Percentage” of a Tranche of Term Loans shall mean, at any time, a fraction (expressed as a  percentage), the numerator of  which is equal to the aggregate outstanding principal amount of all Term Loans of  such Tranche at such time and the denominator of which is equal to the aggregate outstanding principal amount of  all Term Loans of all Tranches at such time.          “Term Loans”  shall  mean  the  Initial Term  Loans,  each Incremental Term  Loan,  each  Refinancing Term  Loan and each Extended Term Loan.          “Term Note” shall have the meaning provided in Section 2.05(a).          “Test  Period”  shall  mean  each  period  of  four  consecutive  fiscal  quarters  of  the  Borrower  (in  each  case  taken as one accounting period) for which Section 9.01 Financials have been (or were required to be) delivered or  are otherwise internally available; provided that, until the first such Section 9.01 Financials are (or are required to  be) delivered hereunder or are otherwise internally available, “Test Period” shall mean the four consecutive fiscal  quarters of Ultimate Parent or the Borrower for which financial statements have been delivered pursuant to Section  6.07.          “Threshold Amount” shall mean the greater of $100,000,000 and 20.0% of Consolidated EBITDA of the  Borrower and its Restricted Subsidiaries for the most recently ended Test Period.          “Total Commitment” shall mean, at any time, the sum of the Total Initial Term Loan Commitment, the  Total Incremental Term Loan Commitment and the Total Refinancing Term Loan Commitment.          “Total  Incremental Term  Loan  Commitment”  shall  mean,  at any time,  the sum of the Incremental  Term  Loan Commitments of each of the Lenders with such a Commitment at such time.          “Total  Initial  Term  Loan  Commitment”  shall  mean,  at  any  time,  the  sum  of  the  Initial  Term  Loan  Commitments of each of the Lenders with such a Commitment at such time.           “Total Refinancing Term Loan Commitment” shall mean, at any time, the sum of the Refinancing Term  Loan Commitments of each of the Lenders with such a Commitment at such time.          “Tranche” shall mean the respective facilities and commitments utilized in making Initial Term Loans or  Incremental Term Loans made pursuant to one or more tranches designated pursuant to the respective Incremental  Term  Loan  Commitment  Agreements  in  accordance  with  the  relevant  requirements  specified  in  Section  2.15  (collectively,  the  “Initial  Tranches”  and,  each,  an  “Initial  Tranche”),  and  after  giving  effect  to  the  Extension  pursuant to Section 2.14, shall include any group of Extended Term Loans, extended, directly or indirectly, from the  same  Initial  Tranche  and  having  the  same  Maturity  Date,  interest  rate  and  fees  and  after  giving  effect  to  any  Refinancing Term Loan Amendment pursuant to Section 2.18, shall include any group of Refinancing Term Loans  refinancing, directly or indirectly, the same Initial Tranche having the same Maturity Date, interest rate and fees;  provided that only in the circumstances contemplated by Section 2.18(b), Refinancing Term  Loans  may be made  part  of  a  then  existing  Tranche  of  Term  Loans; provided further  that  only  in  the  circumstances  contemplated  by  Section 2.15(c), Incremental Term Loans may be made part of a then existing Tranche of Term Loans.          “Transaction Costs” shall mean the fees, premiums, commissions and expenses payable by Holdings, the  Borrower  and  its  Subsidiaries  and  any  Parent  Company  in  connection  with  the  transactions  described  in  the  definition of “Transactions.”                                                   43 

 

         “Transactions” shall mean, collectively, (i) the entering into of the Credit Documents and the incurrence of  the Initial Term Loans on the Closing Date, (ii) the entering into of Amendment No. 5 to the ABL Credit Agreement  and the borrowings or repayments thereunder on the Closing Date (if any), (iii) the repayment in full of all “Loans”  outstanding under, and as defined in, that certain Term Loan Credit Agreement, dated as of November 30, 2016, by  and among Holdings, the Borrower, JPMorgan Chase Bank, N.A. as administrative agent and collateral agent and  the lenders party thereto (as amended, amended and restated, modified, supplemented, extended or renewed prior to  the Closing Date, the “Existing Term Loan Credit Agreement”), together with all accrued and unpaid interest and  fees thereon, in each case as of immediately prior to giving effect to this Agreement, (iv) the redemption in full of  the  outstanding  principal  amount  of  (A)  the  Senior  Notes  issued  pursuant  to  the  Senior  Notes  Indenture,  (B)  the  Second Lien Notes issued pursuant to the Second Lien Notes Indenture and (C) the Holdco Notes issued pursuant to  the Holdco Notes Indenture, in each case together with all accrued and unpaid interest, premiums and fees thereon,  in each case as of immediately prior to giving effect to this Agreement, and (v) the payment of all Transaction Costs.           “Treasury  Services  Agreement”  shall  mean  any  agreement  relating  to  treasury,  depositary  and  cash  management services or automated clearinghouse transfer of funds.          “Type” shall mean the type of Term Loan determined with regard to the interest option applicable thereto,  i.e., whether a Base Rate Term Loan or a LIBO Rate Term Loan.          “U.S. Dollars” and the sign “$” shall each mean freely transferable lawful money (expressed in dollars) of  the United States.          “U.S. GAAP” shall mean generally accepted accounting principles in the United States of America as in  effect from time to time; provided that determinations  made pursuant  to  this Agreement  in  accordance  with U.S.  GAAP are subject (to the extent provided therein) to Section 13.07(a).          “U.S. Special Resolution Regimes” shall have the meaning provided in Section 13.25.          “U.S. Tax Compliance Certificate” shall have the meaning provided in Section 5.04(c).          “UCC” shall mean the Uniform Commercial Code as from time to time in effect in the relevant jurisdiction.          “Ultimate Parent” shall mean Vertiv Holdings Co, a Delaware corporation (f/k/a GS Acquisition Holdings  Corp.).          “UK Bail-In Legislation” means (to the extent that the United Kingdom is not an EEA Member Country  which has implemented, or implements, Article 55 BRRD) Part I of the United Kingdom Banking Act 2009 and any  other  law  or  regulation  applicable  in  the  United  Kingdom  relating  to  the  resolution  of  unsound  or  failing  banks,  investment firms or other financial institutions or their affiliates (otherwise than through liquidation, administration  or other insolvency proceedings).          “Unaudited Financial Statements” shall have the meaning provided in Section 6.07.          “Undisclosed Administration” shall mean, in relation to a Lender or its direct or indirect parent company,  the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar  official by a supervisory authority or regulator under or based on the law in the country where such Lender or such  parent company is subject to home jurisdiction supervision if applicable law requires that such appointment is not to  be publicly disclosed.          “Unfunded Pension Liability” of any Plan subject to Title IV of ERISA shall mean the amount, if any, by  which  the  value  of  the  accumulated  plan  benefits  under  the  Plan  determined  on  a  plan  termination  basis  in  accordance with actuarial assumptions at such time consistent with those prescribed by the PBGC for purposes of  Section 4044 of ERISA, exceeds the fair market value of all plan assets of such Plan.          “United States” and “U.S.” shall each mean the United States of America.                                                   44 

 

         “Unrestricted Subsidiary”  shall  mean (i) on  the  Closing Date,  each  Subsidiary of the Borrower listed on  Schedule 1.01, (ii) any other Subsidiary of the Borrower designated by the board of directors of the Borrower as an  Unrestricted Subsidiary pursuant to Section 9.16 subsequent to the Closing Date, in each case, except to the extent  redesignated  as  a  Restricted  Subsidiary  in  accordance  with  such  Section  9.16,  and  (iii)  any  Subsidiary  of  an  Unrestricted Subsidiary pursuant to the foregoing clause (i) or (ii).           “Weighted  Average  Life  to  Maturity”  shall  mean,  when  applied  to  any  Indebtedness  at  any  date,  the  number of years obtained by dividing (i) the then outstanding principal amount of such Indebtedness into (ii) the  product obtained by  multiplying (x) the amount of each  then remaining  installment or other required scheduled  payments of principal, including payment at final maturity, in respect thereof, by (y) the number of years (calculated  to the nearest one-twelfth) that will elapse between such date and the making of such payment.          “Wholly-Owned  Domestic  Subsidiary”  shall  mean,  as  to  any  Person,  any  Wholly-Owned  Subsidiary  of  such Person which is a Domestic Subsidiary of such Person.          “Wholly-Owned  Restricted  Subsidiary”  shall  mean,  as  to  any  Person,  any  Wholly-Owned  Subsidiary  of  such Person which is a Restricted Subsidiary of such Person.          “Wholly-Owned Subsidiary” shall mean, as to any Person, (i) any corporation 100% of whose capital stock  is at the time owned by such Person and/or one or more Wholly-Owned Subsidiaries  of such Person and (ii) any  partnership,  association,  joint  venture  or  other  entity  in  which  such  Person  and/or  one  or  more  Wholly-Owned  Subsidiaries of such Person owns 100% of the Equity Interests at such time (other than, in the case of a Foreign  Subsidiary with respect to preceding clauses (i) or (ii), director’s qualifying shares and/or other nominal amounts of  shares required to be held by Persons other than the Borrower and its Subsidiaries under applicable law).          “Write-Down and Conversion Powers” shall mean                  (a)    in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule         from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In         Legislation Schedule;                  (b)    in relation to any other applicable Bail-In Legislation:                  (i)    any powers under that Bail-In Legislation to cancel, transfer or dilute shares issued by a         person that is a bank or investment firm or other financial institution or affiliate of a bank, investment firm         or other financial institution, to cancel, reduce, modify or change the form of a liability of such a person 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; and                  (ii)   any similar or analogous powers under that Bail-In Legislation; and                  (c)    in relation to any UK Bail-In Legislation:                   (i)    any powers under that UK Bail-In Legislation to cancel, transfer or dilute shares issued         by a person that is a bank or investment firm or other financial institution or affiliate of a bank, investment         firm or other financial institution, to cancel, reduce, modify or change the form of a liability of such a         person 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 UK Bail-In Legislation that are related to or ancillary to any         of those powers; and                                                   45 

 

                 (ii)   any similar or analogous powers under that UK Bail-In Legislation.          1.02    Terms  Generally;  Certain  Interpretive  Provisions  and  Classification  and  Reclassification.   The  definitions in Section 1.01 shall apply equally to both the singular and plural forms of the terms defined.  Whenever  the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The  words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The  word “will” shall be construed to have the same meaning and effect as the word “shall”; and the words “asset” and  “property”  shall  be  construed  as  having  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.   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 of this  Agreement unless the context shall otherwise require.  All references  herein to Articles, Sections, paragraphs, clauses, subclauses, Exhibits and Schedules shall be deemed references to  Articles, Sections, paragraphs, clauses and subclauses of, and Exhibits and Schedules to, this Agreement unless the  context  shall  otherwise  require.   Unless  otherwise  expressly  provided  herein,  (a)  all  references  to  documents,  instruments and other agreements (including the Credit Documents and organizational documents) shall be deemed  to  include  all  subsequent  amendments,  restatements,  amendments  and  restatements,  supplements  and  other  modifications  thereto,  but  only  to  the  extent  such  amendments,  restatements,  amendments  and  restatements,  supplements and other  modifications are not prohibited by any  Credit Document  and (b) references to any law,  statute, rule or regulation shall include all statutory and regulatory provisions consolidating, amending, replacing,  supplementing or interpreting such law.  Unless otherwise specified, all references herein to times of day shall be  references to Eastern time (daylight or standard, as applicable).  It is understood and agreed that any Lien, sale, lease  or  other  disposition  of  assets,  Dividend,  Indebtedness,  Investment,  Affiliate  transaction  or  prepayment  of  Indebtedness  need  not  be  permitted  solely  by  reference  to  one  category  of  permitted  Lien,  sale,  lease  or  other  disposition of assets, Dividend, Indebtedness, Investment, Affiliate transaction or prepayment of Indebtedness under  Sections 10.01, 10.02, 10.03, 10.04, 10.05, 10.06 and 10.07(a), respectively, but may instead be permitted in part  under any combination thereof (it being understood that the Borrower may utilize amounts under any category that  is subject to any financial ratio or test, including the Consolidated First Lien Net Leverage Ratio or Consolidated  Total Net Leverage Ratio, prior to amounts under any other category).  For purposes of determining compliance at  any time with Sections 10.01, 10.02, 10.03, 10.04, 10.05, 10.06 and 10.07(a), in the event that any Lien, sale, lease  or  other  disposition  of  assets,  Dividend,  Indebtedness,  Investment,  Affiliate  transaction  or  prepayment  of  Indebtedness meets the criteria of more than one of the categories of transactions or items permitted pursuant to any  clause of such Sections 10.01, 10.02, 10.03, 10.04, 10.05, 10.06 and 10.07(a), the Borrower, in its sole discretion,  may, from time to time, classify or reclassify such transaction or item (or portion thereof) and will only be required  to include the amount and type of such transaction (or portion thereof) in any one category.          1.03    Limited Condition Transactions.  Notwithstanding anything to the contrary in this Agreement, in  connection with any action being taken in connection with a Limited Condition Transaction, for purposes of:                   (i)   determining  compliance  with  any  provision  of  this  Agreement  which  requires  the         calculation of any financial ratio or test, including the Consolidated First Lien Net Leverage Ratio and         Consolidated  Total  Net  Leverage  Ratio  (and,  for  the  avoidance  of  doubt,  any  financial  ratio  set  forth  in         Section 2.15(a)); or                  (ii)   testing  availability  under  baskets  set  forth  in  this  Agreement  (including  baskets         determined by reference to Consolidated EBITDA or Consolidated Total Assets); or                 (iii)   determining other compliance with this Agreement (including the determination that no         Default or Event of Default (or any type of Default or Event of Default) has occurred, is continuing or         would result therefrom);   in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any  Limited  Condition  Transaction,  an  “LCT  Election”),  the  date  of  determination  of  whether  any  such  action  is  permitted  hereunder  shall  be  made  (1)  in  the  case  of  any  acquisition  (including  by  way  of  merger)  or  similar  Investment (including the assumption or incurrence of Indebtedness in connection therewith), at the time of (or on  the  basis  of  the  Section  9.01  Financials  for  the  most  recently  ended  Test  Period  at  the  time  of)  either  (x)  the                                                   46 

 

  execution of the definitive agreement with respect to such acquisition or Investment, (y) the public announcement of  an intention to make an offer in respect of the target of such acquisition or Investment or (z) the consummation of  such acquisition or Investment, (2) in the case of any Dividend, at the time of (or on the basis of the Section 9.01  Financials for the most recently ended Test Period at the time of) (x) the declaration of such Dividend or (y) the  making of such Dividend and (3) in the case of any voluntary or optional payment or prepayment on or redemption  or acquisition for value of any Indebtedness subject to Section 10.07(a), at the time of (or on the basis of the Section  9.01 Financials for the most recently ended Test Period at the time of) (x) delivery of irrevocable (which may be  conditional) notice with respect to such payment or prepayment or redemption or acquisition of such Indebtedness  or (y) the making of such voluntary or optional payment or prepayment on or redemption or acquisition for value of  any Indebtedness (the “LCT Test Date”), and if, for the Limited Condition Transaction (and the other transactions to  be  entered  into  in  connection  therewith),  the  Borrower  or  any  of  its  Restricted  Subsidiaries  would  have  been  permitted to take such action on the relevant LCT Test Date in compliance with such ratio, test or basket, such ratio,  test or basket shall be deemed to have been complied with.  For the avoidance of doubt, if the Borrower has made an  LCT Election and any of the ratios, tests or baskets for which compliance was determined or tested as of the LCT  Test Date would have failed to have been complied with as a result of fluctuations in any such ratio, test or basket,  including due to fluctuations in Consolidated EBITDA or Consolidated Total Assets of the Borrower or the Person  subject to such Limited Condition Transaction, at or prior to the consummation of the relevant transaction or action,  such  baskets, tests or ratios  will  not be deemed to  have  failed to  have been  complied  with as a  result of such  fluctuations; provided, that, notwithstanding anything to the contrary herein, if financial statements for one or more  subsequent Test Periods shall have become available, the Borrower may elect, in its sole discretion, to re-determine  all such financial ratios or tests, with respect to, or as of the last day of, the most recently ended Test Period on the  basis of such financial statements, in which case such date of redetermination shall thereafter be deemed to be the  LCT  Test  Date  for  purposes  of  such  baskets,  ratios  and  financial  metrics.   If  the  Borrower  has  made  an  LCT  Election for any Limited Condition Transaction, then in connection with any calculation of any ratio, test or basket  availability  with respect  to  the incurrence of  Indebtedness  or Liens,  the  making of  Dividends, the  making of  any  Permitted Investment, mergers, the conveyance, lease or other transfer of all or substantially all of the assets of the  Borrower,  the  prepayment,  redemption,  purchase,  defeasance  or  other  satisfaction  of  Indebtedness,  or  the  designation of an Unrestricted Subsidiary (each, a “Subsequent Transaction”) following the relevant LCT Test Date  and prior to the earlier of the date on which such Limited Condition Transaction is consummated or the date that the  definitive agreement or irrevocable notice for such Limited Condition Transaction is terminated, revoked or expires  without  consummation  of  such  Limited  Condition  Transaction,  for  purposes  of  determining  whether  such  Subsequent  Transaction  is  permitted  under  this  Agreement,  any  such  ratio,  test  or  basket  shall  be  required  to  be  satisfied on a Pro Forma Basis assuming such Limited Condition Transaction and other transactions in connection  therewith (including any incurrence of Indebtedness and the use of proceeds thereof) have been consummated.          1.04    Divisions.  For all purposes under the Credit Documents, in connection with any division or plan  of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset,  right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then  it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new  Person  comes  into  existence,  such  new  Person  shall  be  deemed  to  have  been  organized  on  the  first  date  of  its  existence by the holders of its Equity Interests at such time.          1.05    Currency Equivalents Generally.            (a)     Notwithstanding anything to  the contrary  in this  Agreement, (i) any representation or warranty  that  would  be  untrue  or  inaccurate,  (ii)  any  undertaking  that  would  be  breached,  (iii) any  basket  that  would  be  exceeded or (iv) any event that would constitute a Default or an Event of Default, in each case, solely as a result of  fluctuations in applicable currency exchange rates, shall not be deemed to be untrue, inaccurate, breached, exceeded  or so constituted, as applicable, solely as a result of such fluctuations in currency exchange rates.          (b)     For purposes of determining the Consolidated First Lien Net Leverage Ratio and the Consolidated  Total Net Leverage  Ratio,  amounts  denominated in a currency  other than U.S.  Dollars  will be converted to U.S.  Dollars at the Exchange Rate as of the date of calculation, and will, in the case of Indebtedness, reflect the currency  translation effects, determined in accordance with U.S. GAAP, of Interest Rate Protection Agreements and Other  Hedging  Agreements  permitted  hereunder  for  currency  exchange  risks  with  respect  to  the  applicable  currency  in  effect on the date of determination of the Equivalent Amount of such Indebtedness.                                                  47 

 

         1.06    Treatment of Subsidiaries Prior to Joinder.            Each Subsidiary of Holdings that is required to be joined as a Credit Party pursuant to Section 9.12 shall,  from the time of the requirement that such Subsidiary be joined as a Credit Party pursuant to Section 9.12 until the  completion of such joinder, be deemed for the purposes of Section 10 of this Agreement to be a Credit Party from  and after the date of formation or acquisition of such Subsidiary; provided that this Section 1.06 shall only apply to  the extent such Subsidiary is actually subsequently joined as a Credit Party pursuant to Section 9.12 in compliance  with the requirements thereunder.          Section 2.  Amount and Terms of Credit.          2.01    The Commitments.          (a)     Subject to and upon the terms and conditions set forth herein, each Lender with an Initial Term  Loan Commitment severally agrees to make an Initial Term Loan or Initial Term Loans to the Borrower, which  Initial Term Loans (i) shall be incurred by the Borrower pursuant to a single drawing on the Closing Date, (ii) shall  be denominated in U.S. Dollars, (iii) shall except as hereinafter provided, at the option of the Borrower, be incurred  and maintained as, and/or converted into, one or more Borrowings of Base Rate Term Loans or LIBO Rate Term  Loans; provided that all Initial Term Loans comprising the same Borrowing shall at all times be of the same Type,  and (iv) shall be made by each such  Lender in that aggregate principal amount which does not exceed the Initial  Term  Loan  Commitment  of  such  Lender  on  the  Closing  Date  (before  giving  effect  to  the  termination  thereof  pursuant to Section 4.02(a)).  Once repaid, Initial Term Loans may not be reborrowed.          (b)     Subject to and upon the terms and conditions set forth herein, each  Lender with an Incremental  Term Loan Commitment from time to time severally agrees to make term loans (each, an “Incremental Term Loan”  and,  collectively,  the  “Incremental  Term  Loans”)  to  the  Borrower,  which  Incremental  Term  Loans  (i)  shall  be  incurred  pursuant  to  a  single  drawing  on  the  applicable  Incremental  Term  Loan  Borrowing  Date,  (ii)  shall  be  denominated in U.S. Dollars, (iii) shall, except as hereinafter provided, at the option of the Borrower, be incurred  and maintained as, and/or converted into one or more Borrowings of Base Rate Term Loans or LIBO Rate Term  Loans; provided that all Incremental Term Loans of a given Tranche made as part of the same Borrowing shall at all  times consist of Incremental Term Loans of the same Type, and (iv) shall not exceed for any such Incremental Term  Loan Lender at any time of any incurrence thereof, the Incremental Term Loan Commitment of such Incremental  Term Loan Lender for such Tranche (before giving effect to the termination thereof on such date pursuant to Section  4.02(b)).  Once repaid, Incremental Term Loans may not be reborrowed.          2.02    Minimum  Amount  of  Each  Borrowing.   The  aggregate  principal  amount  of  each  Borrowing  of  Term Loans under any Tranche shall not be less than the Minimum Borrowing Amount.  More than one Borrowing  may occur on the same date, but at no time shall there be outstanding more than eight (8) Borrowings of LIBO Rate  Term Loans in the aggregate for all Tranches of Term Loans.          2.03    Notice  of  Borrowing.   Whenever  the  Borrower  desires  to  make  a  Borrowing  of  Term  Loans  hereunder, the Borrower shall give the Administrative  Agent at its Notice Office at least  one (1) Business Day’s  prior written notice (or telephonic notice promptly confirmed in  writing) of each Borrowing of Base Rate Term  Loans  to  be  made  hereunder  and  at  least  three  (3)  Business  Days’  (or  such  shorter  period  as  the  Administrative  Agent shall agree in its sole and absolute discretion) prior written notice (or telephonic notice promptly confirmed in  writing) of each LIBO Rate Term Loan to be made hereunder; provided that (in each case) any such notice shall be  deemed to have been given on a certain day only if given before 12:00 Noon (New York City time) on such day (or  such later time as the Administrative Agent shall agree in it its sole and absolute discretion).  Each such notice  (each, a “Notice of Borrowing”), except as otherwise expressly provided in Section 2.11, shall be irrevocable and  shall be in writing, or by telephone promptly confirmed in writing by or on behalf of the Borrower, in the form of  Exhibit A-1  or  such  other  form  as  may  be  approved  by  the  Administrative  Agent  including  any  form  on  an  electronic  platform  or  electronic  transmission  as  shall  be  approved  by  the  Administrative  Agent,  appropriately  completed by a Responsible Officer of the Borrower to specify:  (i) the aggregate principal amount of the Term  Loans to be made pursuant  to  such Borrowing, (ii) the  date of such  Borrowing (which  shall  be a Business Day),  (iii) whether the respective Borrowing shall consist of Initial Term Loans, Incremental Term Loans or Refinancing  Term Loans, (iv) whether the Term Loans being made pursuant to such Borrowing are to be initially maintained as                                                  48 

 

  Base Rate Term Loans or LIBO Rate Term Loans and (v) in the case of LIBO Rate Term Loans, the Interest Period  to  be  initially  applicable  thereto.   The  Administrative  Agent  shall  promptly  give  each  Lender  of  the  Tranche  specified in the respective Notice of Borrowing, notice of such proposed Borrowing, of such Lender’s proportionate  share thereof (determined in accordance with Section 2.07) and of the other matters required by the immediately  preceding sentence to be specified in the Notice of Borrowing.          2.04    Disbursement of Funds.  No later than 1:00 P.M. (New York City time) on the date specified in  each Notice of Borrowing, each Lender with a Commitment of the relevant Tranche will make available its pro rata  portion (determined in accordance with Section 2.07) of each such Borrowing requested to be made on such date.   All such amounts will be made available in U.S. Dollars and in immediately available funds at the Payment Office,  and  the  Administrative  Agent  will  make  available  to  the  Borrower  at  the  Payment  Office  the  aggregate  of  the  amounts so made available by the Lenders.  Unless the Administrative Agent shall have been notified by any Lender  prior to the date of any Borrowing that such Lender does not intend to make available to the Administrative Agent  such Lender’s portion of any Borrowing to be made on such date, the Administrative Agent may assume that such  Lender  has  made  such  amount  available  to  the  Administrative  Agent  on  such  date  of  Borrowing  and  the  Administrative Agent may (but shall not be obligated to), in reliance upon such assumption, make available to the  Borrower a corresponding amount.  If such corresponding amount is not in fact made available to the Administrative  Agent by such Lender, the Administrative Agent shall be entitled to recover such corresponding amount on demand  from  such  Lender.   If  such  Lender  does  not  pay  such  corresponding  amount  forthwith  upon  the  Administrative  Agent’s  demand  therefor,  the  Administrative  Agent  shall  promptly  notify  the  Borrower  and  the  Borrower  shall  immediately pay such corresponding amount to the Administrative Agent.  The Administrative Agent also shall be  entitled to recover on demand from such Lender or the Borrower interest on such corresponding amount in respect  of  each  day  from  the  date  such  corresponding  amount  was  made  available  by  the  Administrative  Agent  to  the  Borrower until the date such corresponding amount is recovered by the Administrative Agent, at a rate per annum  equal  to  (i) if  recovered  from  such  Lender,  the  greater  of  the  Federal  Funds  Rate  and  a  rate  determined  by  the  Administrative  Agent  in  accordance  with banking rules on  interbank  compensation  and (ii) if recovered  from  the  Borrower, the rate of interest applicable to the relevant Borrowing, as determined pursuant to Section 2.08.  Nothing  in this Section 2.04 shall be deemed to relieve any Lender from its obligation to make Term Loans hereunder or to  prejudice any rights which the Borrower may have against any Lender as a result of any failure by such Lender to  make Term Loans hereunder.          2.05    Notes.          (a)     Each Borrower’s obligation to pay the principal of, and interest on, the Term Loans made by each  Lender shall be evidenced  in  the Register  maintained by  the Administrative  Agent  pursuant  to Section 13.04 and  shall, if requested by  such  Lender, also be evidenced by  a promissory  note duly executed and delivered by the  Borrower substantially in the form of Exhibit B, with blanks appropriately completed in conformity herewith (each,  a “Term Note”).          (b)     Each Lender will note on its internal records the amount of each Term Loan made by it and each  payment in respect thereof and prior to any transfer of any of its Notes will endorse on the reverse side thereof the  outstanding principal amount of Term Loans evidenced thereby.  Failure to make any such notation or any error in  such notation shall not affect the Borrower’s obligations in respect of such Term Loans.          (c)     Notwithstanding anything to the contrary contained above in this Section 2.05 or elsewhere in this  Agreement, Notes shall only be delivered to Lenders that at any time specifically request the delivery of such Notes.   No failure of any Lender to request or obtain a Note evidencing its Term Loans to the Borrower shall affect or in  any manner impair the obligations of the Borrower to pay the Term Loans (and all related Obligations) incurred by  the Borrower which would otherwise be evidenced thereby in accordance with the requirements of this Agreement,  and  shall  not  in  any  way  affect  the  security  or  guaranties  therefor  provided  pursuant  to  the  various  Credit  Documents.   Any  Lender  that  does  not  have  a  Note  evidencing  its  outstanding  Term  Loans  shall  in  no  event  be  required  to  make  the  notations  otherwise  described  in  the  preceding  clause  (b).   At  any  time  when  any  Lender  requests the delivery of a Note to evidence any of its Term Loans, the Borrower shall promptly execute and deliver  to the respective Lender the requested Note in the appropriate amount or amounts to evidence such Term Loans.                                                   49 

 

         2.06    Interest Rate Conversions.  The Borrower shall have the option to convert, on any Business Day,  all  or  a  portion  equal  to  at  least  the  Minimum  Borrowing  Amount  of  the  outstanding  principal  amount  of  Term  Loans of a given Tranche made pursuant to one or more Borrowings of one or more Types of Term Loans, into a  Borrowing (of the same Tranche) of another Type of Term Loan; provided that (i) except as otherwise provided in  Section 2.11, (x) LIBO Rate Term Loans may be converted into Base Rate Term Loans only on the last day of an  Interest Period applicable to the Term Loans being converted and no such partial conversion of LIBO Rate Term  Loans,  as the case  may be, shall  reduce the outstanding  principal amount of  such  LIBO Rate Term  Loans,  made  pursuant  to  a  single  Borrowing  to  less  than  the  Minimum  Borrowing  Amount,  (ii) unless  the  Required  Lenders  otherwise agree, Base Rate Term Loans may only be converted into LIBO Rate Term Loans if no Event of Default  is in existence on the date of the conversion, and (iii) no conversion pursuant to this Section 2.06 shall result in a  greater number of Borrowings of LIBO Rate Term Loans than is permitted under Section 2.02.  Such conversion  shall be effected by the Borrower by giving the Administrative Agent at the Notice Office prior to 12:00 Noon (New  York City time) at least three (3) Business Days’ prior notice (in the case of any conversion to or continuation of  LIBO Rate Term Loans) or one (1) Business Day’s notice (in the case of any conversion to Base Rate Term Loans)  (each, a “Notice of Conversion/Continuation”) in the form of Exhibit A-2, appropriately completed to specify the  Term  Loans  of  a  given  Tranche  to  be  so  converted,  the Borrowing  or  Borrowings  pursuant  to  which  such  Term  Loans were incurred and, if to be converted into LIBO Rate Term Loans, the Interest Period to be initially applicable  thereto.  The Administrative Agent shall give each Lender prompt notice of any such proposed conversion affecting  any of its Term Loans.          2.07    Pro Rata Borrowings.  All Borrowings of Term Loans under this Agreement, subject to Section  2.10(d), shall be incurred from the Lenders pro rata on the basis of such Lenders’ Commitments as the case may be.   No Lender shall be responsible for any default by any other Lender of its obligation to make Term Loans hereunder,  and each Lender shall be obligated to make the Term Loans provided to be made by it hereunder, regardless of the  failure of any other Lender to make its Term Loans hereunder.          2.08    Interest.          (a)     The Borrower agrees to pay interest in respect of the unpaid principal amount of each Base Rate  Term Loan (including with respect to any LIBO Rate Term Loan converted into a Base Rate Term Loan pursuant to  Section 2.06 or 2.09) made to the Borrower hereunder from the date of Borrowing thereof (or, in the circumstances  described in the immediately preceding parenthetical, from the date of conversion of the respective LIBO Rate Term  Loan  into  a  Base  Rate  Term  Loan)  on  each  Interest  Payment  Date  until  the  earlier  of  (i)  the  maturity  thereof  (whether by acceleration or otherwise) and (ii) the conversion of such Base Rate Term Loan to a LIBO Rate Term  Loan pursuant to Section 2.06 or 2.09, as applicable, at a rate per annum which shall be equal to the sum of the  Applicable Margin plus the Base Rate, as in effect from time to time.          (b)     The Borrower agrees to pay interest in respect of the unpaid principal amount of each LIBO Rate  Term Loan made to the Borrower from the date of Borrowing thereof until the earlier of (i) the maturity thereof  (whether by acceleration or otherwise) and (ii) the conversion of such LIBO Rate Term Loan to a Base Rate Term  Loan pursuant to Section 2.06 or 2.09, as applicable, at a rate per annum which shall, during each Interest Period  applicable thereto, be equal to the sum of the Applicable Margin plus the applicable LIBO Rate for such Interest  Period.          (c)     Upon the occurrence and during the continuance of any Event of Default under Section 11.01 (x)  overdue  principal  and,  to  the  extent  permitted  by  law,  overdue  interest  in  respect  of  each  Term  Loan  shall  bear  interest at a rate per annum equal  to  (i)  for Base  Rate  Term  Loans  and  associated  interest,  2.00% per annum  in  excess of the Applicable Margin for Base Rate Term Loans plus the Base Rate, (ii) for LIBO Rate Term Loans and  associated interest, 2.00% per annum in excess of the Applicable Margin for LIBO Rate Term Loans plus the LIBO  Rate and (y) overdue amounts with respect to fees shall bear interest at a rate per annum equal to 2.00% per annum  in excess of the Applicable Margin for Base Rate Term Loans plus the Base Rate, each as in effect from time to  time, in each case with such interest to be payable on demand.          (d)     Accrued (and theretofore unpaid) interest shall be calculated daily and payable (i) on each Interest  Payment Date and (ii) on (w) the date of any conversion of a LIBO Rate Term Loan to a Base Rate Term Loan (on  the  amount  so  converted)  prior  to  the  last  day  of  the  Interest  Period  applicable  thereto,  (x) the  date  of  any                                                  50 

 

  prepayment or repayment thereof (on the amount prepaid or repaid), (y) at  maturity (whether by acceleration or  otherwise) and (z) after such maturity, on demand.          (e)     Upon each Interest Determination Date, the Administrative Agent shall determine the LIBO Rate  for each Interest Period applicable to the respective LIBO Rate Term Loans and shall promptly notify the Borrower  and the Lenders thereof.  Each such determination shall, absent manifest error, be final and conclusive and binding  on all parties hereto.          (f)     All interest hereunder shall be computed on the basis of a year of 360 days, except that interest  computed by reference to the Base Rate at times when the 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 Base Rate or LIBO Rate  shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.          2.09    Interest  Periods.   At  the  time  the  Borrower  gives  any  Notice  of  Borrowing  or  Notice  of  Conversion/Continuation in respect of the making of, or conversion into, any LIBO Rate Term Loan (in the case of  the initial Interest Period applicable thereto) or prior to 12:00 Noon (New York City time) on the third Business Day  prior to the expiration of an Interest Period applicable to such LIBO Rate Term Loan (in the case of any subsequent  Interest Period), the Borrower shall have the right to elect the interest period (each, an “Interest Period”) applicable  to such LIBO Rate Term Loan, which Interest Period shall, at the option of the Borrower be (x) a one, two, three or  six month period, or, if agreed to by all Lenders, a twelve month period or (y) if agreed to by the Administrative  Agent, a period less than one month; provided that (in each case):                   (i)   all  LIBO  Rate  Term  Loans  comprising  a  Borrowing  shall  at  all  times  have  the  same         Interest Period;                  (ii)   the initial Interest Period for any LIBO Rate Term Loan shall commence on the date of         Borrowing of such LIBO Rate Term Loan (including, in the case of LIBO Rate Term Loans, the date of         any conversion thereto from a Borrowing of Base Rate Term Loans) and each Interest Period occurring         thereafter  in  respect  of  such  LIBO  Rate  Term  Loan  shall  commence  on  the  day  on  which  the  next         preceding Interest Period applicable thereto expires;                 (iii)   if any Interest Period for a LIBO Rate Term Loan begins on a day for which there is no         numerically  corresponding  day  in  the  calendar  month  at  the  end  of  such  Interest  Period,  such  Interest         Period shall end on the last Business Day of such calendar month;                  (iv)   if any Interest Period for a LIBO Rate Term Loan would otherwise expire on a day which         is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided,         however, that if any Interest Period for a LIBO Rate Term Loan would otherwise expire on a day which is         not a Business Day but is a day of the month after which no further Business Day occurs in such month,         such Interest Period shall expire on the next preceding Business Day;                  (v)    unless the Required Lenders otherwise agree, no Interest Period for a LIBO Rate Term         Loan may be selected at any time when an Event of Default is then in existence; and                  (vi)   no Interest Period in respect of any Borrowing of any Tranche of Term Loans shall be         selected which extends beyond the Maturity Date therefor.   With respect to any LIBO Rate Term Loans, at the end of any Interest Period applicable to a Borrowing thereof, the  Borrower may elect to split the respective Borrowing of a single Type under a single Tranche into two or more  Borrowings of different Types under such Tranche or combine two or more Borrowings under a single Tranche into  a single Borrowing of the same Type under such Tranche, in each case, by having the Borrower give notice thereof  together with its election of one or more Interest Periods, in each case so long as each resulting Borrowing (x) has an  Interest  Period  which complies  with  the  foregoing  requirements  of  this  Section  2.09,  (y) has  a  principal  amount  which  is  not  less  than  the  Minimum  Borrowing  Amount  applicable  to  Borrowings  of  the  respective  Type  and                                                   51 

 

  Tranche, and (z) does not cause a violation of the requirements of Section 2.02.  If by 12:00 Noon (New York City  time) on the third Business Day prior to the expiration of any Interest Period applicable to a Borrowing of LIBO  Rate Term Loans, the Borrower has failed to elect, or is not permitted to elect, a new Interest Period to be applicable  to such LIBO Rate, the Borrower shall be deemed to have elected in the case of LIBO Rate Term Loans, to convert  such LIBO Rate Term Loans into Base Rate Term Loans with such conversion to be effective as of the expiration  date of such current Interest Period.          2.10    Increased Costs, Illegality, etc.          (a)     In the event:                   (i)   the Administrative Agent shall have determined (which determination shall be conclusive         absent manifest error) on any Interest Determination Date that, by reason of any changes arising after the         date of this Agreement affecting the interbank eurodollar market, adequate and fair means do not exist for         ascertaining the applicable interest rate on the basis provided for in the definition of “LIBO Rate”; or                  (ii)   the Administrative Agent is advised by the Required Lenders that the LIBO Rate for such         Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their         Loans included in such Borrowing for such Interest Period;   then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as  promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the  circumstances giving rise to such notice no longer exist, (i) any Notice of Conversion/Continuation that requests the  conversion of any Borrowing to, or continuation of any Borrowing as, a Borrowing of a LIBO Rate Term Loan shall  be ineffective and (ii) if any Notice of Borrowing requests a Borrowing of a LIBO Rate Term Loan, such Borrowing  shall be made as a Borrowing of a Base Rate Term Loan.          (b)     If any Change in Law shall:                   (i)   impose,  modify  or  deem  applicable  any  reserve,  special  deposit,  liquidity  or  similar         requirement  (including  any  compulsory  loan  requirement,  insurance  charge  or  other  assessment)  against         assets of, deposits with or for the account of, or credit extended by, any Lender;                  (ii)   impose  on  any  Lender  or  the  London  interbank  market  any  other  condition,  cost  or         expense (other than Taxes) affecting this Agreement or Loans made by such Lender; or                 (iii)   subject any Lender or the Administrative Agent to any Taxes (other than (A) Indemnified         Taxes,  (B)  Excluded  Taxes  or  (C)  Other  Taxes)  on  its  loans,  loan  principal,  commitments,  or  other         obligations, or its deposits, reserves, other liabilities or capital attributable thereto;   and the result of any of the foregoing shall be to increase the cost to such Lender or the Administrative Agent of  making, continuing, converting or maintaining any Term Loan (or of maintaining its obligation to make any such  Term Loan) or to reduce the amount of any sum received or receivable by such Lender or the Administrative Agent  hereunder  (whether  of  principal,  interest  or  otherwise),  then  the  Borrower  will  pay  to  such  Lender  or  the  Administrative Agent, as the case may be, such additional amount or amounts as will compensate such Lender or the  Administrative Agent, as the case may be, for such additional costs incurred or reduction suffered.          (c)     If any 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 capital or on the capital of such Lender’s  holding company, if any, as a consequence of this Agreement or the Term Loans made by such Lender, to a level  below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law  (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to  capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender such additional amount  or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.                                                   52 

 

         (d)      If any Lender determines that any Change in Law has made it unlawful, or that any Governmental  Authority has asserted that it is unlawful, for any Lender or its applicable lending office to make, maintain or fund  LIBO Rate Term Loans, or to determine or charge interest rates based upon the LIBO Rate, or any Governmental  Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits  of, U.S. Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the  Administrative Agent, any obligation of such Lender to make or continue LIBO Rate Term Loans or to convert Base  Rate Term Loans to LIBO Rate Term Loans shall be suspended until such Lender notifies the Administrative Agent  and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such  notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if  applicable, convert all LIBO Rate Term Loans of such Lender to Base Rate Term Loans, either on the last day of the  Interest Period therefor, if such Lender may lawfully continue to maintain such LIBO Rate Term Loans to such day,  or immediately, if such Lender may not lawfully continue to maintain such LIBO Rate Term Loans.  Upon any such  prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.           (e)     A  certificate  of  a  Lender  or  the  Administrative  Agent  setting  forth  the  amount  or  amounts  necessary to compensate such Lender or the Administrative Agent or its holding company, as the case may be, as  specified in clause (b) or  (c) of  this  Section 2.10,  and certifying  that it is the general practice and policy of such  Lender to demand such compensation from similarly situated borrowers in similar circumstances at such time to the  extent it is legally permitted  to do so, shall be delivered to the Borrower and shall be conclusive absent  manifest  error.  The Borrower shall pay such Lender or the Administrative Agent, as the case may be, the amount shown as  due on any such certificate within 10 Business Days after receipt thereof.          (f)     Failure or delay on the part of any Lender or the Administrative Agent to demand compensation  pursuant to this Section 2.10 shall not constitute a waiver of such Lender’s or the Administrative Agent’s right to  demand  such  compensation; provided  that  the  Borrower  shall  not  be  required  to  compensate  a  Lender  or  the  Administrative  Agent  pursuant  to  this  Section 2.10  for  any  increased  costs  or  reductions  incurred  more  than  180  days prior to the date that such Lender or the Administrative Agent, as the case may be, notifies the Borrower of the  Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Administrative Agent’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.          2.11    Compensation.  The Borrower agrees to compensate each Lender, upon its written request made  within five (5) Business Days of any event described in clauses (i) through (iii) below (which request shall set forth  in  reasonable  detail  the  basis  for  requesting  such  compensation  and  the  calculation  of  the  amount  of  such  compensation),  for all losses, expenses and liabilities  (including,  without limitation,  any  loss, expense or liability  incurred by reason of the liquidation or reemployment of deposits or other funds required by such Lender to fund its  LIBO Rate Term Loans but excluding loss of anticipated profits (and without giving effect to the minimum “LIBO  Rate”))  which  such  Lender  may  sustain:   (i) if  for  any  reason  (other  than  a  default  by  such  Lender  or  the  Administrative Agent) a Borrowing of, or conversion from or into, LIBO Rate Term Loans does not occur on a date  specified  therefor  in  a  Notice  of  Borrowing  or  Notice  of  Conversion/Continuation;  (ii)  if  any  prepayment  or  repayment (including any prepayment or repayment made pursuant to Section 5.01, Section 5.02 or as a result of an  acceleration of the Term Loans pursuant to Section 11) or conversion of any of its LIBO Rate Term Loans occurs on  a date which is not the last day of an Interest Period with respect thereto; (iii) if any prepayment of any LIBO Rate  Term  Loans  is  not  made  on  any  date  specified  in  a  notice  of  prepayment  given  by  the  Borrower;  or  (iv)  as  a  consequence of any other default by the Borrower to repay LIBO Rate Term Loans when required by the terms of  this Agreement or any Note held by such Lender.            2.12    Change of Lending Office.  Each Lender agrees that on the occurrence of any event giving rise to  the operation of Section 2.10(b), (c) or (d) or Section 5.04 with respect to such Lender, it will, if requested by the  Borrower,  use  reasonable  efforts  (subject  to  overall  policy  considerations  of  such  Lender)  to  designate  another  lending office for any Term Loans affected by such event; provided that such designation is made on such terms that  such Lender and its lending office suffer no economic, legal or regulatory disadvantage, with the object of avoiding  the consequence of the event giving rise to the operation of such Section.  Nothing in this Section 2.12 shall affect or  postpone any of the obligations of the Borrower or the right of any Lender provided in Sections 2.10 and 5.04.                                                   53 

 

         2.13    Replacement of Lenders.  (x) If any Lender becomes a Defaulting Lender, (y) upon the occurrence  of an event giving rise to the operation of Section 2.10(b), (c) or (d) or Section 5.04 with respect to such Lender or  (z) in the case of a refusal by a Lender to consent to certain proposed changes, waivers, discharges or terminations  with respect to this Agreement which have been approved by the Required Lenders as (and to the extent) provided in  Section 13.12(b),  the  Borrower  shall  have  the  right  to  replace  such  Lender  (the  “Replaced  Lender”)  with  one  or  more other Eligible Transferees, none of whom shall constitute a Defaulting Lender at the time of such replacement  (collectively, the  “Replacement  Lender”) and each of  whom  shall  be required to be reasonably acceptable to  the  Administrative Agent (to the extent the Administrative Agent’s consent would be required for an assignment to such  Replacement  Lender pursuant to Section 13.04); provided that (i) at the time of any replacement pursuant to this  Section 2.13, the Replacement Lender shall enter into one or more Assignment and Assumptions pursuant to Section  13.04(b) (and with all fees payable pursuant to said Section 13.04(b) to be paid by the Replacement Lender and/or  the Replaced Lender (as may be agreed to at such time by and among the Borrower, the Replacement Lender and the  Replaced Lender)) pursuant to which the Replacement Lender shall acquire all of the Commitments and outstanding  Term Loans of, the Replaced Lender and, in connection therewith, shall pay to (x) the Replaced Lender in respect  thereof an amount equal to the sum of (I) an amount  equal to the principal  of, and all  accrued  interest on, all  outstanding Term Loans of the respective Replaced Lender under each Tranche with respect to which such Replaced  Lender is being replaced and (II) an amount equal to all accrued, but theretofore unpaid, Fees owing to the Replaced  Lender pursuant to Section 4.01 and (ii) all obligations of the Borrower due and owing to the Replaced Lender at  such time (other than those specifically described in clause (i) above in respect of which the assignment purchase  price has been, or is concurrently being, paid) shall be paid in full to such Replaced Lender concurrently with such  replacement.  Upon receipt by the Replaced Lender of all amounts required to be paid to it pursuant to this Section  2.13, the Administrative Agent shall be entitled (but not obligated) and authorized to execute an  Assignment and  Assumption  on  behalf  of  such  Replaced  Lender,  and  any  such  Assignment  and  Assumption  so  executed  by  the  Administrative Agent and the Replacement Lender shall be effective for purposes of this Section 2.13 and Section  13.04.  Upon the execution of the respective Assignment and Assumption, the payment of amounts referred to in  clauses  (i)  and  (ii)  above,  recordation  of  the  assignment  on  the  Register  pursuant  to  Section  13.04  and,  if  so  requested  by  the  Replacement  Lender,  delivery  to  the  Replacement  Lender  of  the  appropriate  Note  or  Notes  executed by the Borrower, (x) the Replacement Lender shall become a Lender hereunder and the Replaced Lender  shall cease to constitute a Lender hereunder, except with respect to indemnification provisions under this Agreement  (including, without limitation, Sections 2.10, 2.11, 5.04, 12.07 and 13.01), which shall survive as to such Replaced  Lender with respect to actions or occurrences prior to it ceasing to be a Lender hereunder.            2.14    Extended Term Loans.          (a)     Notwithstanding  anything  to  the  contrary  in  this  Agreement,  subject  to  the  terms  of  this  Section 2.14, the Borrower may at any time and from time to time request that all or a portion of any Tranche of  Term Loans (each, an “Existing Term Loan Tranche”), be converted to extend the scheduled maturity date(s) of any  payment of principal with respect to all or any portion of the principal amount of such Term Loans (any such Term  Loans which have been so converted, “Extended Term Loans”) and to provide for other terms consistent with this  Section  2.14.   In  order  to  establish  any  Extended  Term  Loans,  the  Borrower  shall  provide  a  notice  to  the  Administrative Agent (who shall provide a copy of such notice to each of the Lenders under the applicable Existing  Term Loan Tranche) (each, an “Extension Request”) setting forth the proposed terms of the Extended Term Loans  to  be  established,  which  shall  (x)  be  identical  as  offered  to  each  Lender  under  the  relevant  Existing  Term  Loan  Tranche (including as to the proposed interest rates and fees payable) and (y) be identical to the Term Loans under  the relevant Existing Term Loan Tranche from which such Extended Term Loans are to be converted, except that:   (i) all or any of the scheduled amortization payments of principal of the Extended Term Loans may be delayed to  later dates than the scheduled amortization payments of principal of the Term Loans of such Existing Term Loan  Tranche to the extent provided in the applicable Extension Amendment; (ii) the Effective Yield with respect to the  Extended  Term  Loans  (whether  in  the  form  of  interest  rate  margin,  upfront  fees,  original  issue  discount  or  otherwise) may be different than the Effective Yield for the Term Loans of such Existing Term Loan Tranche to the  extent  provided  in  the  applicable  Extension  Amendment;  (iii)  the  Extension  Amendment  may  provide  for  other  covenants and terms that apply solely to any period after the Latest Maturity Date that is in effect on the effective  date  of  the  applicable  Extension  Amendment  (immediately  prior  to  the  establishment  of  such  Extended  Term  Loans);  (iv) Extended  Term  Loans  may  have  mandatory  prepayment  terms  which  provide  for  the  application  of  proceeds from mandatory prepayment events to be made first to prepay the Term Loans under the Existing Term  Loan Tranche from which such Extended Term Loans have been converted before applying any such proceeds to                                                  54 

 

  prepay such Extended Term Loans; (v) Extended Term Loans may have optional prepayment terms (including call  protection  and  terms  which  allow  Term  Loans  under  the  relevant  Existing  Term  Loan  Tranche  from  which  such  Extended Term Loans have been converted to be optionally prepaid prior to the prepayment of such Extended Term  Loans) as may be agreed by the Borrower and the Lenders thereof; and (vi) such Extended Term Loans may have  other terms (other than those described in the preceding clauses (i) through (v)) that differ from those of the Existing  Term  Loan  Tranche,  taken  as  a  whole,  that  are  not  materially  more  favorable  to  the  Lenders  providing  such  Extended  Term  Loans  than  the  provisions  applicable  to  the  Existing  Term  Loan  Tranche  or  as  are  otherwise  reasonably  satisfactory  to  the  Administrative  Agent.   Any  Extended  Term  Loans  converted  pursuant  to  any  Extension  Request  shall  be  designated  a  series  (each,  an  “Extension  Series”)  of  Extended  Term  Loans  for  all  purposes of this Agreement; provided that, subject to the requirements set forth above any Extended Term Loans  converted  from  an  Existing  Term  Loan  Tranche  may,  to  the  extent  provided  in  the  applicable  Extension  Amendment, be designated as an increase in any previously established Tranche of Term Loans.          (b)     [Reserved].          (c)     The Borrower shall provide the applicable Extension Request at least five (5) Business Days (or  such shorter period as to which the Administrative Agent may consent) prior to the date on which Lenders under the  Existing  Term  Loan  Tranche  are  requested  to  respond,  and  shall  agree  to  such  procedures,  if  any,  as  may  be  established  by,  or  acceptable  to,  the  Administrative  Agent,  in  each  case  acting  reasonably  to  accomplish  the  purposes of this Section 2.14.  No Lender shall have any obligation to agree to have any of its Term Loans of any  Existing Term Loan Tranche converted into Extended Term Loans pursuant to any Extension Request.  Any Lender  (each, an “Extending Term Loan Lender”) wishing to have all or a portion of its Term Loans under the Existing  Term  Loan  Tranche  subject  to  such  Extension  Request  converted  into  Extended  Term  Loans  shall  notify  the  Administrative Agent (each, an “Extension Election”) on or prior to the date specified in such Extension Request of  the amount of its Term Loans under the Existing Term Loan Tranche which it has elected to request be converted  into  Extended  Term  Loans  (subject  to  any  minimum  denomination  requirements  imposed  by  the  Administrative  Agent).  Any Lender that does not respond to the Extension Request on or prior to the date specified therein shall be  deemed to have rejected such Extension Request.  In the event that the aggregate principal amount of Term Loans  under the applicable Existing Term Loan Tranche exceeds the amount of Extended Term Loans requested pursuant  to such Extension Request, Term Loans of such Existing Term Loan Tranche, subject to such Extension Elections  shall either (i) be converted to Extended Term Loans of such Existing Term Loan Tranche on a pro rata basis based  on the aggregate principal amount of Term Loans of such Existing Term Loan Tranche included in such Extension  Elections, subject to such rounding requirements as may be established by the Administrative Agent or (ii) to the  extent such option is expressly set forth in the applicable Extension Request, be converted to Extended Term Loans  upon an increase in the amount of Extended Term Loans so that such excess does not exist.          (d)     Extended  Term  Loans  shall  be  established  pursuant  to  an  amendment  (each,  an  “Extension  Amendment”) to this  Agreement  among  the Borrower,  the Administrative  Agent and each  Extending  Term  Loan  Lender  providing  an  Extended  Term  Loan  thereunder,  which  shall  be  consistent  with  the  provisions  set  forth  in  Section 2.14(a) above (but which shall not require the consent of any other Lender).  The Administrative Agent shall  promptly notify each relevant Lender as to the effectiveness of each Extension Amendment.  After giving effect to  the Extension, the Term Loans so extended shall cease to be a part of the Tranche they were a part of immediately  prior to the Extension.          (e)     Extensions  consummated  by  the  Borrower  pursuant  to  this  Section  2.14  shall  not  constitute  voluntary or mandatory payments or prepayments for purposes of this Agreement.  The Administrative Agent and  the  Lenders  hereby  consent  to  each  Extension  and  the  other  transactions  contemplated  by  this  Section  2.14  (including, for the avoidance of doubt, payment of any interest or fees in respect of any Extended Term Loans on  such  terms  as  may  be  set  forth  in  the  applicable  Extension  Request)  and  hereby  waive  the  requirements  of  any  provision of this Agreement (including, without limitation, Sections 5.01, 5.02, 5.03, 13.02 or 13.06) or any other  Credit Document that may otherwise prohibit any Extension or any other transaction contemplated by this Section  2.14; provided that such consent shall not be deemed to be an acceptance of any Extension Request.          (f)     Each of the parties hereto hereby agrees that this Agreement and the other Credit Documents may  be amended pursuant to an Extension Amendment, without the consent of any other Lenders, to the extent (but only  to  the  extent)  reasonably  necessary  to  (i)  reflect  the  existence  and  terms  of  any  Extended  Term  Loans  incurred                                                  55 

 

  pursuant thereto, (ii) modify the scheduled repayments set forth in Section 5.02(a) with respect to any Existing Term  Loan  Tranche  subject  to  an  Extension  Election  to  reflect  a  reduction  in  the  principal  amount  of  the  Term  Loans  thereunder in an amount equal to the aggregate principal amount of the Extended Term Loans converted pursuant to  the  applicable  Extension  (with  such  amount  to  be  applied  ratably  to  reduce  scheduled  repayments  of  such  Term  Loans required pursuant to Section 5.02(a)), (iii) make such other changes to this Agreement and the other Credit  Documents consistent with the provisions and intent of Section 13.12(d), (iv) establish new Tranches in respect of  Term Loans so extended and such technical amendments as may be necessary in connection with the establishment  of such new Tranches, in each case, on terms consistent with this Section 2.14 and (v) effect such other amendments  to this Agreement and the other Credit Documents as may be necessary or appropriate, in the reasonable opinion of  the Administrative Agent and the Borrower, to effect the provisions of this Section 2.14, and each Lender hereby  expressly authorizes the Administrative Agent to enter into any such Extension Amendment.  In connection with any  Extension,  the  Credit  Parties  shall  (at  their  expense)  amend  (and  the  Administrative  Agent  is  hereby  directed  to  amend)  any  Mortgage  that  has  a  maturity  date  prior  to  the  Latest  Maturity  Date  so  that  such  maturity  date  is  extended to the Latest Maturity Date (or such later date as may be advised by local counsel to the Administrative  Agent), to the extent required pursuant to applicable local law.          2.15    Incremental Term Loan Commitments.          (a)     The Borrower shall have the right, without requiring the consent of any of the Lenders, to request  at any time and from time to time that one or more Lenders (and/or one or more other Persons which are Eligible  Transferees and which will become Lenders) provide Incremental Term Loan Commitments to the Borrower and,  subject  to  the  terms  and  conditions  contained  in  this  Agreement  and  in  the  relevant  Incremental  Term  Loan  Commitment Agreement, make Incremental Term Loans pursuant thereto; it being understood and agreed, however,  that  (i)  no  Lender  shall  be  obligated  to  provide  an  Incremental  Term  Loan  Commitment  as  a  result  of  any  such  request by the Borrower, (ii) any Lender (including any Eligible Transferee who  will become a Lender) may so  provide  an  Incremental  Term  Loan  Commitment  without  the  consent  of  any  other  Lender,  (iii)  each  Tranche  of  Incremental Term Loan Commitments shall be denominated in U.S. Dollars, (iv) the amount of Incremental Term  Loan Commitments made available pursuant to a given Incremental Term Loan Commitment Agreement shall be in  a  minimum aggregate amount  for all Lenders  which  provide an  Incremental Term  Loan  Commitment  thereunder  (including Eligible Transferees who will become Lenders) of at least $10,000,000, (v) the aggregate amount of all  Incremental Term Loan Commitments provided pursuant to this Section 2.15 after the Closing Date, on the date of  incurrence  thereof,  when  taken  together  with  the  aggregate  principal  amount  of  Permitted  Pari  Passu  Notes,  Permitted Pari Passu Loans and Permitted Junior Debt incurred pursuant to Section 10.04(xxvii)(A)(1) on such date,  shall not exceed (x) the then remaining Fixed Incremental Amount as of the date of incurrence plus (y) subject to the  satisfaction  of  the  applicable  Incurrence-Based  Incremental  Facility  Test,  any  Incurrence-Based  Incremental  Amount that may be incurred thereunder on such date, (vi) the proceeds of all Incremental Term Loans incurred by  the Borrower may be used for any purpose not prohibited under this Agreement, (vii) the Borrower, in consultation  with the Administrative Agent, shall specifically designate in the Incremental Term Loan Commitment Agreement  the Tranche of the Incremental Term Loan Commitments being provided thereunder (which Tranche shall be a new  Tranche  (i.e.,  not  the  same  as  any  existing  Tranche  of  Incremental  Term  Loans,  Incremental  Term  Loan  Commitments or other Term Loans), unless the requirements of Section 2.15(c) are satisfied), (viii) if to be incurred  as a new Tranche of Incremental Term Loans, such Incremental Term Loans shall have the same terms as each other  Tranche of Term Loans as in effect immediately prior to the effectiveness of the relevant Incremental Term Loan  Commitment Agreement, except as to purpose (which is subject to the requirements of the preceding clause (vi))  and  optional  prepayment  provisions  and  mandatory  prepayment  provisions  (which  are  governed  by  Section 5.02;  provided that each new Tranche of Incremental Term Loans shall be entitled to share in mandatory prepayments on  a ratable basis with the other Tranches of Term Loans (unless the holders of the Incremental Term Loans of any  Tranche  agree  to  take  a  lesser  share  of  any  such  prepayments)); provided, however,  that  (I)  the  maturity  and  amortization of such Tranche of Incremental Term Loans may differ, so long as, except in the case of Extendable  Bridge Loans, such Tranche of Incremental Term Loans shall have (a) a Maturity Date of no earlier than the Latest  Maturity Date as of the date such Indebtedness was incurred and (b) a Weighted Average Life to Maturity of no less  than the Weighted Average Life to Maturity as then in effect for the Tranche of then outstanding Term Loans with  the then longest Weighted Average Life to Maturity; provided, however, that Extendable Bridge Loans may have a  maturity date earlier than the Latest Maturity Date of all then outstanding Term Loans and the Weighted Average  Life to Maturity thereof may be shorter than the then longest remaining Weighted Average Life to Maturity of any  then outstanding Term Loans, (II) the Effective Yield applicable to such Tranche of Incremental Term Loans may                                                  56 

 

  differ  from  that  applicable  to  the  then  outstanding  Tranches  of  Term  Loans,  with  the  Effective  Yield  applicable  thereto to be specified in the respective Incremental Term Loan Commitment Agreement; provided, however, that if  the Effective Yield for any such Incremental Term Loans incurred prior to the date that is six (6) months after the  Closing Date exceeds the Effective Yield then applicable to any then outstanding Initial Term Loans by more than  0.50% per annum,  the Applicable Margins  for such  then  outstanding Initial Term  Loans shall  be increased  as of  such date in accordance with the requirements of the definition of “Applicable Margin” (the “MFN Pricing Test”)  and (III) such Tranche of Incremental Term Loans may have other terms (other than those described in preceding  clauses (I) and (II)) that may differ from those of other Tranches of Term Loans, including, without limitation, as to  the  application  of  optional  or  voluntary  prepayments  among  the  Incremental  Term  Loans  and  the  existing  Term  Loans and such other differences as may be reasonably satisfactory to the Administrative Agent, (ix) all Incremental  Term Loans (and all interest, fees and other amounts payable thereon) incurred by the Borrower shall be Obligations  of  the  Borrower  under  this  Agreement  and  the  other  applicable  Credit  Documents  and  shall  be  secured  by  the  Security Agreements, and guaranteed under each relevant Guaranty, on a pari passu basis with all other Term Loans  secured  by  the  Security  Agreement  and  guaranteed  under  each  such  Guaranty,  (x)  each  Lender  (including  any  Eligible  Transferee  who  will  become  a  Lender)  agreeing  to  provide  an  Incremental  Term  Loan  Commitment  pursuant  to  an  Incremental  Term  Loan  Commitment  Agreement  shall,  subject  to  the  satisfaction  of  the  relevant  conditions  set  forth  in  this  Agreement,  make  Incremental  Term  Loans  under  the  Tranche  specified  in  such  Incremental  Term  Loan  Commitment  Agreement  as  provided  in  Section 2.01(b)  and  such  Term  Loans  shall  thereafter be deemed to be Incremental Term Loans under such Tranche for all purposes of this Agreement and the  other applicable Credit Documents and (xi) all Incremental Term Loan Commitment Requirements are satisfied.          (b)     At  the  time  of  the  provision  of  Incremental  Term  Loan  Commitments  pursuant  to  this  Section 2.15,  the  Borrower,  the  Administrative  Agent  and  each  such  Lender  or  other  Eligible  Transferee  which  agrees to provide an Incremental Term Loan Commitment (each, an “Incremental Term Loan Lender”) shall execute  and  deliver  to  the  Administrative  Agent  an  Incremental  Term  Loan  Commitment  Agreement  (which  shall  not  require  the  consent  of  any  other  Lender),  with  the  effectiveness  of  the  Incremental  Term  Loan  Commitment  provided  therein  to  occur  on  the  date  on  which  (w)  a  fully  executed  copy  of  such  Incremental  Term  Loan  Commitment Agreement shall have been delivered to the Administrative Agent, (x) all fees required to be paid in  connection  therewith  at  the  time  of  such  effectiveness  shall  have  been  paid  (including,  without  limitation,  any  agreed upon upfront or arrangement fees owing to the Administrative Agent to the extent it served as the arranger  for  the  Incremental  Term  Loan  Commitments),  (y)  all  Incremental  Term  Loan  Commitment  Requirements  are  satisfied, and (z) all  other conditions set  forth  in  this  Section 2.15  shall have been  satisfied.   The Administrative  Agent  shall  promptly  notify  each  Lender  as  to  the  effectiveness  of  each  Incremental  Term  Loan  Commitment  Agreement, and at such time, (i) Schedule 2.01 shall be deemed modified to reflect the revised Incremental Term  Loan Commitments of the affected Lenders and (ii) to the extent requested by any Incremental Term Loan Lender,  Term Notes will be issued at the Borrower’s expense to such Incremental Term Loan Lender, to be in conformity  with  the  requirements  of  Section  2.05  (with  appropriate  modification)  to  the  extent  needed  to  reflect  the  new  Incremental Term Loans made by such Incremental Term Loan Lender.          (c)     Notwithstanding  anything  to  the  contrary  contained  above  in  this  Section 2.15,  the  Incremental  Term Loan Commitments provided by an Incremental Term Loan Lender or Incremental Term Loan Lenders, as the  case may be, pursuant to each Incremental Term Loan Commitment Agreement shall constitute a new Tranche,  which shall be separate and distinct from the existing Tranches pursuant to this Agreement; provided that, with the  consent of the Administrative Agent (not to be unreasonably withheld, delayed or conditioned), the parties to a given  Incremental  Term  Loan  Commitment  Agreement  may  specify  therein  that  the  Incremental  Term  Loans  made  pursuant thereto shall constitute part of, and be added to, an existing Tranche of Term Loans, in any case so long as  the following requirements are satisfied:                   (i)   the  Incremental  Term  Loans  to  be  made  pursuant  to  such  Incremental  Term  Loan         Commitment Agreement shall have the same Borrower, the same Maturity Date and the same Applicable         Margins as the Tranche of Term Loans to which the new Incremental Term Loans are being added;                  (ii)   the  new  Incremental  Term  Loans  shall  have  the  same  Scheduled  Repayment  Dates  as         then remain with respect to the Tranche to which such new Incremental Term Loans are being added (with         the amount of each Scheduled Repayment applicable to such new Incremental Term Loans to be the same         (on a proportionate basis) as is theretofore applicable to the Tranche to which such new Incremental Term                                                  57 

 

         Loans are being added, thereby increasing the amount of each then remaining Scheduled Repayment of the         respective Tranche proportionately); and                 (iii)   on  the  date  of  the  making  of  such  new  Incremental  Term  Loans,  and  notwithstanding         anything to the contrary set forth in Section 2.09, such new Incremental Term Loans shall be added to (and         form part of) each  Borrowing of  outstanding  Term  Loans  of the applicable  Tranche  on a pro rata basis         (based  on  the  relative  sizes  of  the  various  outstanding  Borrowings),  so  that  each  Lender  holding  Term         Loans  under  the  respective  Tranche  of  Term  Loans  participates  in  each  outstanding  Borrowing  of  Term         Loans of the respective Tranche (after giving effect to the incurrence of such new Incremental Term Loans         pursuant to Section 2.01(b)) on a pro rata basis.   To the extent the provisions of the preceding clause (iii) require that Lenders making new Incremental Term Loans  add such Incremental Term Loans to the then outstanding Borrowings of LIBO Rate Term Loans of such Tranche, it  is acknowledged that the effect thereof may result in such  new Incremental Term Loans having irregular Interest  Periods (i.e., an Interest Period that began during an Interest Period then applicable to outstanding LIBO Rate Term  Loans of such Tranche and which will end on the last day of such Interest Period), which irregular interest periods  shall  be  permitted  notwithstanding  anything  to  the  contrary  in  this  Agreement.   All  determinations  by  the  Administrative Agent of the LIBO Rate in such circumstances pursuant to the immediately preceding sentence shall,  absent manifest error, be final and conclusive and binding on all parties hereto.          (d)     Subject to compliance with the other applicable requirements set forth in this Section 2.15, any  new Incremental Term Loan may be established and incurred as a means of effectively extending the maturity of,  effecting a repricing of or a refinancing, in whole or in part, of any applicable Term Loans then outstanding so long  as:                   (i)   the Lenders with respect to the relevant series of Term Loans and/or Commitments being         extended, repriced or refinanced are offered the opportunity to participate in such transaction on a pro rata         basis (and on the same terms); and                  (ii)   the amount of any Incremental Term Loans does not exceed the sum of (x) the principal         amount  of  the  applicable  Term  Loans  effectively  being  extended,  repriced  or  refinanced,  (y)  fees  and         expenses (including any prepayment premium, penalties or other call protection) related to such extension,         repricing  or  refinancing,  and  (z)  fees  and  expenses  (including  any  upfront  fees,  original  issue  discount,         underwriting  discounts,  amendment  fees,  commissions  and  arrangement,  underwriting  and  similar  fees)         related to the establishment and incurrence of such Incremental Term Loans.          2.16    LIBOR Successor Rate.          (a)      Notwithstanding anything to the contrary in this Agreement or any other Credit Documents, if the  Administrative  Agent,  in  consultation  with  the  Borrower  but  in  the  Administrative  Agent’s  sole  discretion,  determines  (which  determination  shall  be  conclusive  absent  manifest  error),  or  the  Required  Lenders  notify  the  Administrative Agent (with a copy to the Borrower) that the Required Lenders have determined, that:                   (i)   adequate  and  reasonable  means  do  not  exist  for  ascertaining  LIBOR  for  any  requested         Interest Period, including, without limitation, because the LIBO Screen Rate is not available or published         on a current basis and such circumstances are unlikely to be temporary, or                  (ii)   the  supervisor  for  the  administrator  of  the  LIBO  Screen  Rate  or  a  Governmental         Authority  having  jurisdiction  over  the  Administrative  Agent  has  made  a  public  statement  identifying  a         specific date after which LIBOR or the LIBO Screen Rate shall no longer be made available, or used for         determining the interest rate of loans (such specific date, the “Scheduled Unavailability Date”),   then, after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice, as  applicable,  the  Administrative  Agent  and  the  Borrower  may  amend  this  Agreement  to  replace  LIBOR  with  an  alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated                                                   58 

 

  therein) that has been broadly accepted by the syndicated loan market in the United States in lieu of LIBOR (any  such proposed rate, a “LIBOR Successor Rate”), together with any proposed LIBOR Successor Rate Conforming  Changes  and,  notwithstanding  anything  to  the  contrary  in  Section  13.12,  any  such  amendment  shall  become  effective at 5:00 p.m. (New York City time) on the fifth  Business Day after the Administrative Agent shall have  posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the  Required Lenders have delivered to the Administrative Agent notice that such Required Lenders do not accept such  amendment.          (b)     If no LIBOR Successor Rate has been determined and the circumstances under clause (a)(i) above  exist, the obligation of the Lenders to make or maintain LIBO Rate Term Loans shall be suspended (to the extent of  the affected LIBO Rate Term Loans or Interest Periods).  Upon receipt of such notice, the Borrower may revoke any  pending  Notice  of  Borrowing  for  a  Borrowing  of,  and  any  pending  Notice  of  Conversion/Continuation  for  a  conversion to or continuation of, LIBO Rate Term Loans (to the extent of the affected LIBO Rate Term Loans or  Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of  Base Rate Loans in the amount specified therein.          (c)     Notwithstanding anything else herein, any definition of LIBOR Successor Rate shall provide that  in no event shall such LIBOR Successor Rate be less than zero for purposes of this Agreement.          2.17     [Reserved].          2.18    Refinancing Term Loans.          (a)     The  Borrower  may  from  time  to  time  by  written  notice  to  the  Administrative  Agent  elect  to  request the establishment of one or more additional Tranches of Term Loans under this Agreement (“Refinancing  Term Loans”),  which refinance,  renew,  replace,  defease or refund  all  or any portion of  one or more Tranches  of  Term Loans under this Agreement selected by the Borrower; provided, that such Refinancing Term Loans may not  be in an amount greater than the aggregate principal amount of the Term Loans being refinanced, renewed, replaced,  defeased  or  refunded plus  unpaid  accrued  interest  and  premium  (if  any)  thereon  and  upfront  fees,  original  issue  discount, underwriting discounts, fees, commissions and expenses incurred in connection with the Refinancing Term  Loans; provided that such aggregate principal amount may also be increased to the extent such additional amount is  capable of being incurred at such time pursuant to Section 2.15 and such excess incurrence shall for all purposes  hereof be an incurrence under the relevant subclauses of Section 2.15.  Each such notice shall specify the date (each,  a “Refinancing Effective Date”) on which the Borrower proposes that the Refinancing Term Loans shall be made,  which shall be a date not less than three (3) Business Days after the date on which such notice is delivered to the  Administrative Agent; provided that:                   (i)   except in the case of Extendable Bridge Loans, the Weighted Average Life to Maturity of         such Refinancing Term Loans shall not be shorter than the remaining Weighted Average Life to Maturity         of the Term Loans being refinanced and the Refinancing Term Loans shall not have a final stated maturity         before the Maturity Date applicable to the Term Loans being refinanced;                  (ii)   such  Refinancing  Term  Loans  shall  have  pricing  (including  interest  rates,  fees  and         premiums), amortization, optional prepayment, mandatory prepayment (so long as such Refinancing Term         Loans are not entitled to participate on a greater than pro rata basis in any mandatory prepayment than the         then outstanding Term Loans) and redemption terms as may be agreed to by the Borrower and the relevant         Refinancing Term Loan Lenders (as defined below);                 (iii)   such Refinancing Term Loans shall not be guaranteed by any Person other than Holdings,         the Borrower or a Subsidiary Guarantor;                  (iv)   in the case of any such Refinancing Term Loans that are secured, such Refinancing Term         Loans are secured only by assets comprising Collateral, and not secured by any property or assets of the         Borrower or any of its Subsidiaries other than the Collateral;                                                   59 

 

                 (v)    all other terms applicable to such Refinancing Term Loans (except as set forth above)         shall (I) be substantially identical to, or (II) (taken as a whole) be otherwise not materially more favorable         to  the  Refinancing  Term  Loan  Lenders  than  those  applicable  to  the  then  outstanding  Term  Loans  or         otherwise  reasonably  satisfactory  to  the  Administrative  Agent,  except  to  the  extent  such  covenants  and         other terms apply solely to any period after the Latest Maturity Date as of the date such Indebtedness was         incurred  (provided  that  a  certificate  of  a  Responsible  Officer  of  the  Borrower  delivered  to  the         Administrative  Agent  in  good  faith  at  least  five  (5)  Business  Days  prior  to  the  incurrence  of  such         Indebtedness, together with a reasonably detailed description of the material terms and conditions of such         Indebtedness or drafts of the documentation relating thereto, stating that the Borrower has determined in         good  faith  that  such  terms  and  conditions  satisfy  the  requirement  set  out  in  this  clause (v),  shall  be         conclusive  evidence  that  such  terms  and  conditions  satisfy  such  requirement  unless  the  Administrative         Agent provides notice to the Borrower of an objection during such five (5) Business Day period (including         a reasonable description of the basis upon which it objects)).          (b)     The Borrower may approach any Lender or any other Person that would be an Eligible Transferee  of  Term Loans  to provide all or  a portion  of the Refinancing Term Loans (a “Refinancing Term Loan  Lender”);  provided that any Lender offered or approached to provide all or a portion of the Refinancing Term Loans may elect  or decline, in its sole discretion, to provide a Refinancing Term Loan.  Any Refinancing Term Loans made on any  Refinancing Effective Date shall be designated a series (a “Refinancing Term Loan Series”) of Refinancing Term  Loans for all purposes of this Agreement; provided that any Refinancing Term Loans may, to the extent provided in  the applicable Refinancing Term Loan Amendment and subject to the restrictions set forth in clause (a) above, be  designated as an increase in any previously established Tranche of Term Loans.          (c)     The  Administrative  Agent  and  the  Lenders  hereby  consent  to  the  transactions  contemplated  by  Section 2.18(a)  (including,  for  the  avoidance  of  doubt,  the  payment  of  interest,  fees,  amortization  or  premium  in  respect of the Refinancing Term Loans on the terms specified by the Borrower) and hereby waive the requirements  of  this  Agreement  or  any  other  Credit  Document  that  may  otherwise  prohibit  any  transaction  contemplated  by  Section 2.18(a).  The Refinancing Term Loans shall be established pursuant to an amendment to this Agreement  among Holdings, the Borrower and the Refinancing Term Loan Lenders providing such Refinancing Term Loans (a  “Refinancing Term Loan Amendment”) which shall be consistent with the provisions set forth in Section 2.18(a).   Each Refinancing Term Loan Amendment shall be binding on the Lenders, the Administrative Agent, the Credit  Parties party thereto and the other parties hereto without the consent of any other Lender and the Lenders hereby  irrevocably authorize the  Administrative  Agent  to enter into  amendments  to  this  Agreement  and the other  Credit  Documents  as  may  be  necessary  or  appropriate  in  the  reasonable  opinion  of  the  Administrative  Agent  and  the  Borrower, to effect the provisions of this Section 2.18 including such technical amendments as may be necessary or  appropriate  in  connection  therewith  and  to  adjust  the  amortization  schedule  in  Section 5.02(a)  (insofar  as  such  schedule  relates  to  payments  due  to  Lenders  the  Term  Loans  of  which  are  refinanced  with  the  proceeds  of  Refinancing Term Loans; provided that no such amendment shall reduce the pro rata share of any such payment  that  would  have  otherwise  been  payable  to  the  Lenders,  the  Term  Loans  of  which  are  not  refinanced  with  the  proceeds of Refinancing Term Loans).  The Administrative Agent shall be permitted, and each is hereby authorized,  to enter into such amendments with the Borrower to effect the foregoing.          2.19    Reverse Dutch Auction Repurchases.          (a)     Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement  or  any  other  Credit  Document, Holdings, the Borrower or any Restricted Subsidiary may, at any time and from time to time, conduct  reverse Dutch auctions in order to purchase Term Loans of a particular Tranche (each, an “Auction”) (each such  Auction to be managed exclusively by the Administrative Agent or any other bank or investment bank of recognized  standing selected by the Borrower (with the consent of the Administrative Agent or such other bank or investment  bank) following consultation with the Administrative Agent (in such capacity, the “Auction Manager”)), so long as  the following conditions are satisfied:                   (i)   each Auction shall be conducted in accordance with the procedures, terms and conditions         set forth in this Section 2.19(a) and Schedule 2.19(a);                                                   60 

 

                 (ii)   no Event of Default shall have occurred and be continuing on the date of the delivery of         each auction notice and at the time of purchase of Term Loans in connection with any Auction;                 (iii)   the minimum principal amount (calculated on the face amount thereof) of all Term Loans         that Holdings, the Borrower or such Restricted Subsidiary offers to purchase in any such Auction shall be         no less than $2,500,000 (unless another amount is agreed to by the Administrative Agent); and                  (iv)   the aggregate principal amount (calculated on the face amount thereof) of all Term Loans         so purchased by Holdings, the Borrower or such Restricted Subsidiary shall automatically be cancelled and         retired on the settlement date of the relevant purchase (and may not be resold).          (b)     Holdings,  the  Borrower  or  such  Restricted  Subsidiary  must  terminate  an  Auction  if  it  fails  to  satisfy one or more of the conditions set forth above which are required to be met at the time which otherwise would  have been the time of purchase of Term Loans pursuant to such Auction.  Holdings, the Borrower or such Restricted  Subsidiary may withdraw any Auction if the reply amounts are insufficient to complete the purchase of a minimum  principal  amount  of  the  Term  Loans  designated  in  writing  to  the  applicable  Auction  Manager  by  Holdings,  the  Borrower or such Restricted Subsidiary (the “Minimum Purchase Condition”).  No Credit Party or any Restricted  Subsidiary shall have any liability to any Lender for any termination of such Auction as a result of its failure to  satisfy one or more of the conditions set forth above which are required to be met at the time which otherwise would  have been the time of purchase of Term Loans pursuant to the such Auction, or for any termination of such Auction  as a result of the failure to satisfy the Minimum Purchase Condition, and any such failure shall  not result in any  Default or Event of Default hereunder.  With respect to all purchases of Term Loans made pursuant to this Section  2.19,  (x)  Holdings,  the  Borrower  or  such  Restricted  Subsidiary  shall  pay  on  the  settlement  date  of  each  such  purchase all accrued and unpaid interest (except to the extent otherwise set forth in the relevant offering documents),  if any, on the purchased Term Loans up to the settlement date of such purchase and (y) such purchases (and the  payments made therefor and the cancellation of the purchased Term Loans, in each case in connection therewith)  shall not constitute voluntary or mandatory payments or prepayments for purposes of Section 5.01, 5.02 or 13.06.   At the time of purchases of Term Loans pursuant to an Auction, the then remaining Scheduled Repayments shall be  reduced by the aggregate principal amount (taking the face amount thereof) of Term Loans repurchased pursuant to  such Auction, with such reduction to be applied to such Scheduled Repayments on a pro rata basis (based on the  then remaining principal amount of each such Scheduled Repayments).          (c)     The  Administrative  Agent  and  the  Lenders  hereby  consent  to  the  Auctions  and  the  other  transactions contemplated by this Section 2.19 (provided that no Lender shall have an obligation to participate in  any  such  Auctions)  and  hereby  waive  the  requirements  of  any  provision  of  this  Agreement  (including,  without  limitation, Sections 5.01, 5.02 and 13.06 (it being understood and acknowledged that purchases of the Term Loans  by  Holdings,  the  Borrower  or  any  Restricted  Subsidiary  contemplated  by  this  Section  2.19  shall  not  constitute  Investments by such Person)) or any other Credit Document that may otherwise prohibit any Auction or any other  transaction contemplated by this Section 2.19.  The Auction Manager acting in its capacity as such hereunder shall  be entitled to the benefits of the provisions of Section 12 and Section 13.01 mutatis mutandis as if each reference  therein to the “Administrative Agent” were a reference to the Auction Manager, and the Administrative Agent and  the Auction Manager shall cooperate in a reasonable manner in connection therewith.          2.20    Open Market Purchases.          (a)     Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement  or  any  other  Credit  Document, Holdings, the Borrower or any of its Restricted Subsidiaries may, at any time and from time to time,  make open market purchases of Term Loans (each, an “Open Market Purchase”), so long as the following conditions  are satisfied:                   (i)   no Event of Default  shall  have occurred and be continuing on the date of such Open         Market Purchase; and                  (ii)   the aggregate principal amount (calculated on the face amount thereof) of all Term Loans         so  purchased  by  Holdings,  the  Borrower  or  any  of  its  Restricted  Subsidiaries  shall  automatically  be         cancelled and retired on the settlement date of the relevant purchase (and may not be resold).                                                  61 

 

         (b)     With respect to all purchases of Term Loans made pursuant to this Section 2.20, (x) Holdings, the  Borrower  or  such  Restricted  Subsidiary  shall  pay  on  the  settlement  date  of each  such  purchase  all  accrued  and  unpaid interest, if any, on the purchased Term Loans up to the settlement date of such purchase (except to the extent  otherwise  set  forth  in  the  relevant  purchase  documents  as  agreed  by  the  respective  selling  Lender)  and  (y)  such  purchases  (and  the  payments  made  therefor  and  the  cancellation  of the  purchased  Term  Loans,  in  each  case  in  connection therewith) shall not constitute voluntary or mandatory payments or prepayments for purposes of Section  5.01,  5.02  or  13.06.   At  the  time  of  purchases  of  Term  Loans  pursuant  to  any  Open  Market  Purchase,  the  then  remaining  Scheduled  Repayments  shall  be  reduced  by  the  aggregate  principal  amount  (taking  the  face  amount  thereof) of Term Loans repurchased pursuant to such Open Market Purchase, with such reduction to be applied to  such  Scheduled  Repayments  on  a pro  rata  basis  (based  on  the  then  remaining  principal  amount  of  each  such  Scheduled Repayments).          (c)     The  Administrative  Agent  and  the  Lenders  hereby  consent  to  the  Open  Market  Purchases  contemplated by this Section 2.20 and hereby waive the requirements of any provision of this Agreement (including,  without limitation, Sections 5.01, 5.02 and 13.06 (it being understood and acknowledged that purchases of the Term  Loans by Holdings, the Borrower or any Restricted Subsidiary contemplated by this Section 2.20 shall not constitute  Investments by such Person)) or any other Credit Document that may otherwise prohibit any Open Market Purchase  by this Section 2.20.           Section 3.  [Reserved].          Section 4.  Fees; Reductions of Commitment.          4.01    Fees.          (a)     The Borrower agrees to pay to the Administrative Agent such fees as may be agreed to in writing  from time to time by the Borrower and the Administrative Agent.          (b)     At the time of the effectiveness of any Repricing Transaction that is consummated prior to the date  that is six (6) months after the Closing Date, the Borrower agrees to pay to the Administrative Agent, for the ratable  account of each Lender with outstanding Initial Term Loans that are repaid or prepaid (and/or converted) pursuant to  such  Repricing  Transaction  (including,  if  applicable,  each  Lender  that  withholds  its  consent  to  a  Repricing  Transaction of the type described in clause (2) of the definition thereof and is replaced as a non-consenting Lender  under Section 2.13), a fee in an amount equal to 1.00% of (x) in the case of a Repricing Transaction of the type  described in clause (1) of the definition thereof, the aggregate principal amount of all Initial Term Loans prepaid (or  converted)  by  Borrower  in  connection  with  such  Repricing  Transaction  and  (y)  in  the  case  of  a  Repricing  Transaction of the type described in clause (2) of the definition thereof, the aggregate principal amount of all Initial  Term Loans outstanding with respect to the Borrower on such date that are subject to an effective reduction of the  Applicable Margin pursuant to such Repricing Transaction.  Such fees shall be due and payable upon the date of the  effectiveness of such Repricing Transaction.          4.02    Mandatory Reduction of Commitments.          (a)     In addition to any other mandatory commitment reductions pursuant to this Section 4.02, the Total  Initial Term Loan Commitment shall terminate in its entirety on the Closing Date after the funding of all Initial  Term Loans on such date.          (b)     In addition to any other mandatory commitment reductions pursuant to this Section 4.02, the Total  Incremental  Term  Loan  Commitment  pursuant  to  an  Incremental  Term  Loan  Commitment  Agreement  (and  the  Incremental Term Loan Commitment of each Lender with such a Commitment) shall terminate in its entirety on the  Incremental Term Loan Borrowing Date for such Total Incremental Term Loan Commitment after the funding of all  relevant Incremental Term Loans on such date.          (c)     Each reduction to the Total Initial Term Loan Commitment and the Total Incremental Term Loan  Commitment under a given Tranche pursuant to this Section 4.02 as provided above (or pursuant to Section 5.02)                                                   62 

 

  shall  be  applied  proportionately  to  reduce  the  Initial  Term  Loan  Commitment  or  the  Incremental  Term  Loan  Commitment under such Tranche, as the case may be, of each Lender with such a Commitment.          Section 5.  Prepayments; Payments; Taxes.          5.01    Voluntary Prepayments.          (a)     The Borrower shall have the right to prepay the Term Loans of any Tranche, without premium or  penalty (other than as provided in Section 4.01(b)), in whole or in part at any time and from time to time on the  following terms and conditions:  (i) the Borrower shall give the Administrative Agent at its Notice Office written  notice (or telephonic notice promptly confirmed in writing) of its intent to prepay all of the Term Loans, or in the  case  of  any  partial  prepayment,  the  Tranche  of  Term  Loans  to  be  prepaid,  the  amount  of  the  Term  Loans  to  be  prepaid,  the  Types  of  Term  Loans  to  be  repaid,  the  manner  in  which  such  prepayment  shall  apply  to  reduce  the  Scheduled Repayments and, in the case of LIBO Rate Term Loans, the specific Borrowing or Borrowings pursuant  to which made, which notice shall be given by the Borrower (x) prior to 12:00 Noon (New York City time) at least  one (1) Business Day prior to the date of such prepayment in the case of Term Loans maintained as Base Rate Term  Loans and (y) prior to 12:00 Noon (New York City time) at least three (3) Business Days prior to the date of such  prepayment in the case of LIBO Rate Term Loans (or, in the case of clauses (x) and (y), such shorter period as the  Administrative  Agent  shall  agree  in  its  sole  and  absolute  discretion),  and  be  promptly  transmitted  by  the  Administrative Agent to each of the Lenders; (ii) each partial prepayment of Term Loans pursuant to this Section  5.01(a) shall be in an aggregate principal amount of at least $1,000,000 or such lesser amount as is acceptable to the  Administrative  Agent;  provided  that  if  any  partial  prepayment  of  LIBO  Rate  Term  Loans  made  pursuant  to  any  Borrowing  shall  reduce  the  outstanding  principal  amount  of  LIBO  Rate  Term  Loans  made  pursuant  to  such  Borrowing  to  an  amount  less  than  the  Minimum  Borrowing  Amount,  then  if  such  Borrowing  is  a  Borrowing  of  LIBO  Rate  Term  Loans,  such  Borrowing  shall  automatically  be  converted  into  a  Borrowing  of  Base  Rate  Term  Loans and any election of an Interest Period with respect thereto given by the Borrower shall have no force or effect;  (iii) each prepayment pursuant to this Section 5.01(a) in respect of any Term Loans made pursuant to a Borrowing  shall be applied pro rata among such Term Loans; provided that it is understood and agreed that this clause (iii) may  be  modified  as  expressly  provided  in  Section  2.14  in  connection  with  an  Extension  Amendment;  and  (iv)  each  prepayment  of  principal  of  Term  Loans  of  a  given  Tranche  pursuant  to  this  Section  5.01(a)  shall  be  applied  as  directed by the Borrower in the applicable notice of prepayment delivered pursuant to this Section 5.01(a) or, if no  such  direction  is  given,  in  direct  order  of  maturity.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement, any such notice of prepayment pursuant to this Section 5.01(a) may state that it is conditioned upon the  occurrence or non-occurrence of any event specified therein (including the effectiveness of other credit facilities, the  occurrence of a Change of Control or any similar event), in which case such notice may be revoked by the Borrower  (by written notice to the Administrative Agent on or prior to the specified effective date) if such condition is not  satisfied.          (b)     In the event (i) of a refusal by a Lender to consent to proposed changes, amendments,  waivers,  discharges or terminations with respect to this Agreement which have been approved by the Required Lenders as  (and to the extent) provided in Section 13.12(b), or (ii) any Lender becomes a Defaulting Lender, the Borrower may,  upon five (5) Business Days’ prior written notice to the Administrative Agent at the Notice Office (or such shorter  notice as may be agreed by the Administrative Agent) repay all Term Loans of such Lender, together with accrued  and  unpaid  interest,  Fees  and  other  amounts  owing  to  such  Lender  in  accordance  with,  and  subject  to  the  requirements  of,  Section  13.12(b),  so  long  as,  in  the  case  of  any  repayment  pursuant  to  clause  (i)  hereof,  the  consents, if any, required under Section 13.12(b) in connection with the repayment pursuant to such clause (i) have  been obtained.  Each prepayment of any Term Loan pursuant to this Section 5.01(b) shall reduce the then remaining  Scheduled Repayments of the applicable Tranche of Term Loans on a pro rata basis (based upon the then remaining  unpaid  principal  amounts  of  Scheduled  Repayments  of  the  respective  Tranche  after  giving  effect  to  all  prior  reductions thereto).          5.02    Mandatory Repayments.          (a)     In addition to any other mandatory repayments pursuant to this Section 5.02, the Borrower shall be  required to repay to the Administrative Agent for the ratable account of the Lenders (i) on the last Business Day of  each  March,  June,  September  and  December,  commencing  June  30,  2020  (a  “Scheduled  Repayment  Date”),  an                                                  63 

 

  aggregate principal amount of Initial Term Loans equal to 0.25% of the aggregate principal amount of all Initial  Term  Loans  outstanding  on  the  Closing  Date  and  (ii)  on  the  Initial  Maturity  Date  for  Initial  Term  Loans,  the  aggregate principal amount of all Initial Term Loans outstanding on such date (each such repayment described in  clauses (i) and (ii), as the same may be reduced as provided in this Agreement, including in Section 2.19, Section  2.20  or  in  connection  with  voluntary  prepayments  as  provided  in  Section  5.01  or  mandatory  prepayments  as  provided in Section 5.02(g), or as a result of the application of prepayments in connection with any Extension as  provided in Section 2.14, a “Scheduled Repayment”).           (b)     In addition to any other mandatory repayments pursuant to this Section 5.02, the Borrower shall be  required to make, with respect to each new Tranche (i.e., other than Initial Term Loans, which are addressed in the  preceding  clause  (a))  of  Term  Loans  to  the  extent  then  outstanding,  scheduled  amortization  payments  of  such  Tranche of Term Loans to the extent, and on the dates and in the principal amounts, set forth in the Incremental  Term  Loan  Commitment  Agreement,  Refinancing  Term  Loan  Amendment  or  Extension  Amendment  applicable  thereto.          (c)     In  addition  to  any  other  mandatory  repayments  pursuant  to  this  Section  5.02,  within  five  (5)  Business Days following each date on or after the Closing Date upon which the Borrower or any of its Restricted  Subsidiaries receives any cash proceeds from any issuance or incurrence of Indebtedness (other than Indebtedness  permitted to be incurred pursuant to Section  10.04,  Refinancing  Term  Loans and  Refinancing Notes), an  amount  equal to 100% of the Net Debt Proceeds therefrom shall be applied as a mandatory repayment in accordance with  the requirements of Sections 5.02(g) and (h).          (d)     In  addition  to  any  other  mandatory  repayments  pursuant  to  this  Section  5.02,  within  five  (5)  Business Days following each date on or after the Closing Date upon which the Borrower or any of its Restricted  Subsidiaries receives any Net Sale Proceeds from any Asset Sale (other than ABL Collateral), an amount equal to  the  Applicable  Asset  Sale/Recovery  Event  Prepayment  Percentage  of  the  Net  Sale  Proceeds  therefrom  shall  be  applied  as  a  mandatory  repayment  in  accordance  with  the  requirements  of  Sections  5.02(g)  and  (h); provided,  however, with respect to no more than the greater of (x) $50,000,000 and (y) 10.0% of Consolidated EBITDA of the  Borrower and its Restricted Subsidiaries for the most recently ended Test Period in the aggregate of such Net Sale  Proceeds received by the Borrower and its Restricted Subsidiaries in any fiscal year of the Borrower, such Net Sale  Proceeds  shall  not  be  required  to  be  so  applied  or  used  to  make  mandatory  repayments  of  Term  Loans  and  any  required prepayment shall be only the amount in excess thereof.  Notwithstanding the foregoing, the Borrower and  its Restricted Subsidiaries may apply all or a portion of such Net Sale Proceeds that would otherwise be required to  be applied as a mandatory repayment hereunder to reinvest in the purchase of assets useful in the business of the  Borrower and its Restricted Subsidiaries within 12 months following the date of receipt of such Net Sale Proceeds  (or,  if  within  such  12-month  period,  the  Borrower  or  any  of  its  Restricted  Subsidiaries  enters  into  a  binding  commitment to so reinvest such Net Sale Proceeds, within 180 days following such 12-month period during which  the  Borrower  so  committed  to  such  plan  of  reinvestment); provided, further,  that  if  within  12  months  (or,  to  the  extent applicable, 18 months) after the date of receipt by the Borrower or its Restricted Subsidiaries of such Net Sale  Proceeds, the Borrower or its Restricted Subsidiaries have not so used all or a portion of such Net Sale Proceeds that  would  otherwise  be  required  to  be  applied  as  a  mandatory  repayment  pursuant  to  this  sentence,  the  remaining  portion  of  such  Net  Sale  Proceeds  that  would  otherwise  be  required  to  be  applied  as  a  mandatory  repayment  pursuant to this sentence shall be applied as a mandatory repayment in accordance with the requirements of Sections  5.02(g)  and  (h) on  the  last  day  of  such  12-month  (or,  to  the  extent  applicable,  18-month)  period.   Any  Net  Sale  Proceeds in respect of any such Asset Sale not required to be applied in accordance with this Section 5.02(d) as a  result of the application of the leverage-based step-down in the definition of Applicable Asset Sale/Recovery Event  Prepayment Percentage shall collectively constitute “Leverage Excess Proceeds”.          (e)     In addition to any other mandatory repayments pursuant to this Section 5.02, on each Excess Cash  Flow  Payment  Date,  an  amount  equal  to  the  remainder  of  (i)  the  Applicable  ECF  Prepayment  Percentage  of  the  Excess  Cash  Flow  for  the  related  Excess  Cash  Flow  Payment  Period less  (ii)  the  aggregate  amount  of  all  (x)  voluntary prepayments (including buybacks and prepayments in connection with Section 5.01(b)) of Term Loans,  Refinancing Notes and Indebtedness incurred pursuant to Section 10.04(xxvii) that rank pari passu with the Term  Loans (limited, in the case of any voluntary prepayment in accordance with the provisions of Section 2.19 or Section  2.20  or  similar  provisions  in  the  definitive  documentation  with  respect  to  such  Refinancing  Notes  or  other  Indebtedness, to the cash payment made by any Credit Party or Restricted Subsidiary therefor) and (y) prepayments                                                  64 

 

  of revolving loans under the ABL Credit Agreement or any other revolving credit facility secured by a Lien on the  Collateral ranking pari passu with the Lien on the Collateral securing the ABL Credit Agreement or senior or pari  passu with the Lien on the Collateral securing the Indebtedness hereunder, in each case, to the extent accompanied  by a permanent reduction in commitments therefor, during such Excess Cash Flow Payment Period shall be applied  as  a  mandatory  repayment  in  accordance  with  the  requirements  of  Sections  5.02(g)  and  (h); provided,  that  no  prepayment shall be required with respect to any Excess Cash Flow Payment Period to the extent Excess Cash Flow  for such period is equal to or less than the greater of (x) $50,000,000 and (y) 10.0% of Consolidated EBITDA of the  Borrower  and  its  Restricted  Subsidiaries  for  the  most  recently  ended  Test  Period  and,  in  such  case,  the  required  prepayment shall be only the amount in excess thereof.          (f)     In addition to any other mandatory repayments pursuant to this Section 5.02, within ten (10) days  following  each  date  on  or  after  the  Closing  Date  upon  which  the  Borrower  or  any  of  its  Restricted  Subsidiaries  receives any Net Insurance Proceeds from any Recovery Event with (other than in respect of ABL Collateral), an  amount equal to the Applicable Asset Sale/Recovery Event Prepayment Percentage of the Net Insurance Proceeds  from  such  Recovery  Event  shall  be  applied  as  a  mandatory  repayment  in  accordance  with  the  requirements  of  Sections 5.02(g) and (h); provided, however,  with respect to no more than the greater of (x) $50,000,000 and (y)  10.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the most recently ended Test  Period in the aggregate of such Net Insurance Proceeds received by the Borrower and its Restricted Subsidiaries in  any fiscal year of the Borrower, such Net Insurance Proceeds shall not give rise to a mandatory repayment and any  required prepayment shall be only the amount in excess thereof.  Notwithstanding the foregoing, the Borrower and  its  Restricted  Subsidiaries  may  apply  all  or  a  portion  of  such  Net  Insurance  Proceeds  that  would  otherwise  be  required  to  be  applied  as  a  mandatory  repayment  hereunder  to  reinvest  in  the  purchase  of  assets  useful  in  the  business of the Borrower and its Restricted Subsidiaries within 12 months following the date of receipt of such Net  Insurance Proceeds (or, if within such 12-month period, the Borrower or any of its Restricted Subsidiaries enters  into a binding commitment to so reinvest in such Net Insurance Proceeds, within 18 months following the date of  receipt of such proceeds); provided, further, that if within 12 months (or, to the extent applicable, 18 months) after  the  date  of  receipt  by  the  Borrower  or  any  of  its  Restricted  Subsidiaries  of  such  Net  Insurance  Proceeds,  the  Borrower or any of its Restricted Subsidiaries have not so used all or a portion of such Net Insurance Proceeds that  would otherwise be required to be applied as a mandatory repayment pursuant to this sentence, an amount equal to  the remaining portion of such Net Insurance Proceeds that would otherwise be required to be applied as a mandatory  repayment hereunder shall be applied as a mandatory repayment in accordance with the requirements of Sections  5.02(g) and (h) on the last day of such 12-month (or, to the extent applicable, 18-month) period, as the case may be.          (g)     Each amount required to be applied pursuant to Sections 5.02(d), (e) and (f) in accordance with  this Section 5.02(g) shall be applied to repay the outstanding principal amount of Term Loans, with each Tranche of  then outstanding Term Loans to be allocated its Term Loan Percentage of each amount so required to be applied;  provided that to the extent any Permitted Pari Passu Notes or Permitted Pari Passu Loans (or, in either case, any  Permitted Refinancing Indebtedness in respect thereof that is secured on a pari passu basis with the Obligations)  requires any mandatory prepayment or repurchase from any Net Sale Proceeds or Net Insurance Proceeds that would  otherwise be required to be applied to prepay Term Loans in accordance with clause (d) or (f) above, up to a pro  rata portion (based on the aggregate principal amount of Term Loans and such pari passu secured Indebtedness then  outstanding) of such Net Sale Proceeds or Net Insurance Proceeds may be applied to prepay or repurchase such pari  passu secured Indebtedness in lieu of prepaying Term Loans as provided above.  Prepayments pursuant to Section  5.02(c) shall be applied to the Tranche or Tranches of Term Loans selected by the Borrower.  Except as otherwise  provided below, all repayments of outstanding Term Loans of a given Tranche pursuant to Sections 5.02(c), (d), (e)  and  (f)  (and  applied  pursuant  to  this  clause  (g))  shall  be  applied  to  reduce  the  Scheduled  Repayments  of  the  applicable Tranche in direct order of maturity of such Scheduled Repayments.          (h)     With respect to each repayment of Term Loans required by this Section 5.02, the Borrower may  (subject  to  the  priority  payment  requirements  of  Section  5.02(g))  designate  the  Types  of  Term  Loans  of  the  applicable Tranche which are to be repaid and, in the case of LIBO Rate Term Loans, the specific Borrowing or  Borrowings of the applicable Tranche pursuant to which such LIBO Rate Term Loans were made; provided that:  (i)  repayments of LIBO Rate Term Loans pursuant to this Section 5.02 may only be made on the last day of an Interest  Period applicable thereto  unless all  such  LIBO  Rate Term Loans  of the applicable Tranche  with  Interest Periods  ending on such date of required repayment and all Base Rate Term Loans of the applicable Tranche have been paid  in full; and (ii) each repayment of any Term Loans made pursuant to a Borrowing shall be applied pro rata among                                                  65 

 

  such  Term  Loans.   In  the  absence  of  a  designation  by  the  Borrower  as  described  in  the  preceding  sentence,  the  Administrative Agent shall, subject to the above, make such designation in its sole discretion.          (i)     In addition to any other mandatory repayments pursuant to this Section 5.02, all then outstanding  Term Loans of any Tranche of Term Loans shall be repaid in full on the Maturity Date for such Tranche of Term  Loans.          (j)     Notwithstanding any other provisions of this Section 5.02, (i) to the extent that any or all of the  Net Sale Proceeds of any Asset Sale by a Foreign Subsidiary (a “Foreign Asset Sale”), the Net Insurance Proceeds  of  any  Recovery  Event  incurred  by  a  Foreign  Subsidiary  (a  “Foreign  Recovery  Event”)  or  Excess  Cash  Flow  attributable to Foreign Subsidiaries are prohibited or delayed by applicable local law, rule or regulation or applicable  organizational documents of such Foreign Subsidiary from being repatriated to the United States, the portion of such  Net Sale Proceeds, Net Insurance Proceeds or Excess Cash Flow so affected will not be required to be applied to  repay  Term  Loans  at  the  times  provided  in  this  Section  5.02  but  may  be  retained  by  the  applicable  Foreign  Subsidiary  so  long,  but  only  so  long,  as  the  applicable  local  law,  rule  or  regulation  or  applicable  organizational  documents  of  such  Foreign  Subsidiary  will  not  permit  repatriation  to  the  United  States  (the  Borrower  hereby  agreeing to use all commercially reasonable efforts to overcome or eliminate any such restrictions on repatriation  and/or minimize any such costs of prepayment and/or use the other cash sources of the Borrower and its Restricted  Subsidiaries to make the relevant prepayment), and if within one year following the date on which the respective  prepayment would otherwise have been required such repatriation of any of such affected Net Sale Proceeds, Net  Insurance Proceeds or Excess Cash Flow is permitted under the applicable local law, rule or regulation or applicable  organizational  documents  of  such  Foreign  Subsidiary,  such  repatriation  will  be  immediately  effected  and  such  repatriated Net Sale Proceeds, Net Insurance Proceeds or Excess Cash Flow will be promptly (and in any event not  later than two Business Days after such repatriation) applied (net of additional taxes payable or reserved against as a  result thereof and additional costs relating to such repatriation other than any such taxes already taken into account  by the definition of “Net Sale Proceeds”, “Net Insurance Proceeds” or “Excess Cash Flow”, as applicable) to the  repayment of the Term Loans pursuant to this Section 5.02 or (ii) to the extent that the Borrower has reasonably  determined  in  good  faith  that  repatriation  of  any  of  or  all  the  Net  Sale  Proceeds  of  any  Foreign  Asset  Sale,  Net  Insurance  Proceeds  of  any  Foreign  Asset  Sale  or  Foreign  Recovery  Event  or  Excess  Cash  Flow  attributable  to  Foreign Subsidiaries would have material adverse tax cost consequences with respect to such Net Sale Proceeds, Net  Insurance Proceeds or Excess Cash Flow, such Net Sale Proceeds, Net Insurance Proceeds or Excess Cash Flow so  affected may be retained by the applicable Foreign Subsidiary.          (k)     The Borrower shall notify the Administrative Agent in writing of any mandatory repayment of  Term Loans required to be made pursuant to Section 5.02(d), (e) or (f) at least three (3) Business Days prior to the  date of such repayment.  Each such notice shall specify the date of such repayment and provide the amount of such  repayment.  The Administrative Agent will promptly notify the Lenders of the contents of the Borrower’s repayment  notice and of such Lender’s pro rata share of any repayment.  Each Lender may reject all or a portion of its pro rata  share of any mandatory repayment (such declined amounts, the “Declined Proceeds”) of Term Loans required to be  made  pursuant  to  Section  5.02(d),  (e)  or  (f)  by  providing  written  notice  (each,  a  “Rejection  Notice”)  to  the  Administrative Agent and the Borrower no later than 5:00 P.M. (New York City time) on the Business Day after the  date of such Lender’s receipt of notice from the Administrative Agent regarding such repayment.  Each Rejection  Notice from a given Lender shall specify the principal amount of the mandatory repayment of Term Loans to be  rejected by such Lender.  If a Lender fails to deliver such Rejection Notice to the Administrative Agent within the  time frame specified above or such Rejection Notice fails to specify the principal amount of the Term Loans to be  rejected, any such failure will be deemed an acceptance of the total amount of such mandatory repayment of Term  Loans  to  which  such  Lender  is  otherwise  entitled.   Any  Declined  Proceeds  may  be  retained  by  the  Borrower  in  accordance with this Agreement.          5.03    Method and Place of Payment.  All payments under this Agreement and under any Note shall be  made (i) to the Administrative Agent at its Payment Office for the account of the Lender or Lenders entitled thereto,  or, except as otherwise specifically provided herein, directly to such Lender or Lenders, in each case not later than  2:00 p.m. (New York City time) on the date when due, (ii) in U.S. Dollars in immediately available funds and (iii)  free  and  clear  of  and  without  condition  or  deduction  for  any  counterclaim,  defense,  recoupment  or  setoff.   Any  payment received after such time on such date referred to in the first sentence of this Section 5.03 shall, at the option  of the Administrative Agent, be deemed to have been received on the next Business Day.  Whenever any payment to                                                  66 

 

  be made hereunder or under any Note shall be stated to be due on a day which is not a Business Day, the due date  thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest  shall be payable at the applicable rate during such extension.          5.04    Net Payments.          (a)     All payments made by or on account of any Credit Party under any Credit Document shall be  made free and clear of, and without deduction or withholding for, any Taxes, except as required by applicable law.   If any Taxes are required to be withheld or deducted from such payments by any applicable withholding agent, then  the Credit Parties jointly and severally agree that (i) to the extent such deduction or withholding is on account of an  Indemnified Tax or Other Tax, the sum payable by the applicable Credit Party shall be increased as necessary so that  after making all required deductions or withholding (including deduction or  withholdings applicable to additional  sums  payable  under  this  Section  5.04),  the  applicable  Lender  (or,  in  the  case  of  amounts  payable  to  the  Administrative Agent, the Administrative Agent) receives an amount equal to the sum it would have received had no  such  deductions  or  withholdings  been  made,  (ii)  the  applicable  withholding  agent  will  make  such  deductions  or  withholdings, and (iii) the applicable withholding agent shall timely pay the full amount deducted or withheld to the  relevant  Governmental  Authority  in  accordance  with  applicable  law.   In  addition,  but without  duplication  of  any  other  amounts  payable  under  this  Section  5.04,  the  Borrower  shall  timely  pay  any  Other  Taxes  to  the  relevant  Governmental Authority in accordance with applicable law.  The Borrower will furnish to the Administrative Agent  within 45 days after the date of the payment by any Credit Party of any Taxes pursuant to this Section 5.04 certified  copies of tax receipts evidencing such payment by the applicable Credit Party.  The Borrower shall indemnify and  hold harmless the Administrative Agent and each Lender, and reimburse the Administrative Agent and each Lender,  within  10  Business  Days  of  written  request  therefor,  for  the  amount  of  any  Indemnified  Taxes  (including  any  Indemnified  Taxes  imposed  on  amounts  payable  under  this  Section  5.04)  payable  or  paid  by  the  Administrative  Agent or such Lender or required to be withheld or deducted from a payment to the Administrative Agent or such  Lender, and any Other Taxes, and any reasonable out-of-pocket expenses arising therefrom or with respect thereto,  whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant  Governmental Authority.          (b)     Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to  payments made under any Credit Document shall deliver to the Borrower and the Administrative Agent, at the time  or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed  documentation reasonably requested by the Borrower or the Administrative Agent, certifying as to any entitlement  of such Lender to an exemption from, or a reduced rate of, withholding Tax.  In addition, each Lender shall deliver  to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the  Administrative  Agent,  such  other  documentation  prescribed  by  applicable  law  or  reasonably  requested  by  the  Borrower  or  the  Administrative  Agent  as  will  enable  the  Borrower  or  the  Administrative  Agent  to  determine  whether such Lender is subject to backup withholding or information reporting requirements.  Each Lender shall,  whenever a lapse in time or change in circumstances renders such documentation (including any specific documents  required below in Section 5.04(c)) expired, obsolete or inaccurate in any respect, deliver promptly to the Borrower  and  the  Administrative  Agent  updated  or  other  appropriate  documentation  (including  any  new  documentation  reasonably  requested  by  the  Borrower  or  the  Administrative  Agent)  or  promptly  notify  the  Borrower  and  the  Administrative Agent in writing of its legal ineligibility to do so.          (c)     Without  limiting  the  generality  of  the  foregoing:   (x)  Each  Lender  that  is  not  a  United  States  person  (as  such  term  is  defined  in  Section  7701(a)(30)  of  the  Code)  shall  deliver  to  the  Borrower  and  the  Administrative Agent on or prior to the Closing Date or, in the case of a Lender that is an assignee or transferee of  an  interest  under  this  Agreement  pursuant  to  Section  2.13  or 13.04(b)  (unless  the  relevant  Lender  was  already  a  Lender hereunder immediately prior to such assignment or transfer), on the date of such assignment or transfer to  such Lender, (i) two accurate and complete original signed copies of Internal Revenue Service Form W-8BEN (or  successor form) or Form W-8BEN-E (or successor form) claiming eligibility for benefits of an income tax treaty to  which the  United States is a party or Form W-8ECI (or successor form),  (ii) in  the case of a  Lender claiming  exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments  of  “portfolio  interest,”  a  certificate  substantially  in  the  form  of  Exhibit  C  (any  such  certificate,  a  “U.S.  Tax  Compliance Certificate”) and two accurate and complete original signed copies of Internal Revenue Service Form  W-8BEN (or successor form) or W-8BEN-E (or successor form), or (iii) to the extent a Lender is not the beneficial                                                  67 

 

  owner (for example, where the Lender is a partnership or a participating Lender), two accurate and complete original  signed copies of Internal Revenue Service Form W-8IMY (or successor form) of the Lender, accompanied by Form  W-8ECI, Form W-8BEN, Form W-8BEN-E, U.S. Tax Compliance Certificate, Form W-8IMY, Form W-9 and/or  any other required information (or successor or other applicable form) from each beneficial owner that  would be  required  under  this  Section  5.04(c)  if  such  beneficial  owner  were  a  Lender  (provided  that,  if  the  Lender  is  a  partnership  for  U.S.  federal  income  Tax  purposes  (and  not  a  participating  Lender),  and  one  or  more  beneficial  owners are claiming the portfolio interest exemption, the U.S. Tax Compliance Certificate may be provided by such  Lender on behalf of such beneficial owner(s)); (y) Each Lender that is a United States person, as defined in Section  7701(a)(30)  of  the  Code,  shall  deliver  to  the  Borrower  and  the  Administrative  Agent,  at  the  times  specified  in  Section 5.04(b), two accurate and complete original signed copies of Internal Revenue Service Form W-9, or any  successor form that such Person is entitled to provide at such time, in order to qualify for an exemption from United  States  federal  backup  withholding  requirements;  and  (z)  if  any  payment  made  to  a  Lender  under  any  Credit  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  Sections  1471(b)  or  1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent, at the  time or times prescribed by applicable law and at such time or times reasonably requested by the Borrower or the  Administrative  Agent,  such  documentation  prescribed  by  applicable  law  (including  as  prescribed  by  Section  1471(b)(3)(C)(i)  of  the  Code)  and  such  additional  documentation  reasonably  requested  by  the  Borrower  or  the  Administrative  Agent  as  may  be  necessary  for  the  Borrower  or  the  Administrative  Agent  to  comply  with  their  obligations  under FATCA, to determine whether such Lender has complied with such Lender’s obligations under  FATCA or to determine the amount, if any, to deduct and withhold from such payment.  Solely for purposes of  Section 5.04(c)(z), “FATCA” shall include any amendment made to FATCA after the Closing Date.          Notwithstanding  any  other  provision  of  this  Section  5.04,  a  Lender  shall  not  be  required  to  deliver  any  documentation that such Lender is not legally eligible to deliver.          (d)     If the  Administrative  Agent  or any Lender determines, in its sole discretion exercised in  good  faith, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified by  the Credit Parties or with respect to which a Credit Party has paid additional amounts pursuant to Section 5.04(a), it  shall pay to the relevant Credit Party an amount equal to such refund (but only to the extent of indemnity payments  made, or additional amounts paid, by such Credit Party under Section 5.04(a) with respect to the Indemnified Taxes  or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses, including any Taxes, of the  Administrative Agent or such Lender, as the case may be, and without interest (other than any interest paid by the  relevant  Governmental  Authority  with  respect  to  such  refund);  provided that the relevant Credit Party, upon the  request of the Administrative Agent or such Lender, agrees to repay the amount paid over to such Credit Party (plus  any  penalties,  interest  or  other  charges  imposed  by  the  relevant  Governmental  Authority)  to  the  Administrative  Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such  Governmental  Authority.   Notwithstanding  anything  to  the  contrary  in  this  Section  5.04(d),  in  no  event  will  the  Administrative Agent or any Lender be required to pay any amount to any Credit Party pursuant to this Section  5.04(d) to the extent such payment would place the Administrative Agent or such Lender in a less favorable position  (on a net after-Tax basis) than such party would have been in if the tax giving rise to such refund had never been  imposed and the applicable indemnification payments or additional amounts had never been paid.  Nothing in this  Section 5.04(d) shall be construed to obligate the Administrative Agent or any Lender to disclose its Tax returns or  any other information regarding its Tax affairs or computations to any Person or otherwise to arrange its Tax affairs  in any manner other than as it determines in its sole discretion.          Section 6.  Conditions Precedent to Credit Events on the Closing Date.  The obligation of each Lender to  make Term Loans on the Closing Date, is subject at the time of the making of such Term Loans to the satisfaction or  waiver of the following conditions:          6.01    Term Loan Credit Agreement.  On or prior to the Closing Date, Holdings and the Borrower shall  have executed and delivered to the Administrative Agent a counterpart of this Agreement.          6.02    Opinions  of  Counsel.   On  the  Closing  Date,  the  Administrative  Agent  shall  have  received  an  opinion  addressed  to  the  Administrative  Agent  and  each  of  the  Lenders  and  dated  the  Closing  Date  in  form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent  from  each  of  (i)  Willkie  Farr  &  Gallagher  LLP,                                                  68 

 

  special counsel to the Credit Parties, (ii) Morgan, Lewis & Bockius LLP, California counsel to the Credit Parties,  and (iii) Taft Stettinius & Hollister LLP, Ohio counsel to the Credit Parties.          6.03    Corporate Documents; Proceedings, etc.          (a)     On the Closing Date, the Administrative Agent shall have received a certificate from each Credit  Party, dated the Closing Date, signed by a Responsible Officer of such Credit Party, and attested to by the Secretary  or  any  Assistant  Secretary  or  other  Responsible  Officer  of  such  Credit  Party,  in  the  form  of  Exhibit  E  with  appropriate insertions, together with copies of the certificate or articles of incorporation and by-laws (or equivalent  organizational documents), as applicable, of such Credit Party and the resolutions of such Credit Party referred to in  such  certificate,  and  each  of  the  foregoing  shall  be  in  form  and  substance  reasonably  satisfactory  to  the  Administrative Agent.          (b)     The Administrative Agent shall have received good standing certificates (or equivalent evidence)  and bring-down telegrams or facsimiles, if any, for the Credit Parties which the Administrative Agent reasonably  may have requested.          6.04    Intercreditor Agreement.  On  the Closing  Date,  JPMorgan Chase Bank, N.A., as collateral agent  under  the  ABL  Credit  Agreement,  shall  have  received  notice  of  the  Refinancing  (as  defined  in  the  Intercreditor  Agreement) from the Collateral Agent.          6.05    Security Agreements .  On the Closing Date, each Credit Party shall have executed and delivered  the Security Agreement substantially in the form of Exhibit G (as may be amended, amended and restated, modified,  supplemented,  extended  or  renewed  from  time  to  time,  the  “Security  Agreement”)  covering  all  of  such  Credit  Party’s present and future Collateral referred to therein, and shall have delivered (or caused to be delivered) to the  Collateral Agent:                   (i)   proper financing statements (Form UCC-1 or the equivalent) authorized for filing under         the UCC or other appropriate filing offices of each jurisdiction as may be necessary to perfect the security         interests purported to be created by the Security Agreement;                  (ii)   all  of  the  Pledged  Collateral,  if  any,  referred  to  in  the  Security  Agreement  and  then         owned by such Credit Party together with executed and undated endorsements for transfer in the case of         Pledged Collateral constituting certificated securities, along with evidence that all other actions necessary         to perfect  (to  the extent  required  by the Security  Agreement) the security  interests in Pledged  Collateral         purported to be created by the Security Agreement have been taken; provided, that the requirements of this         clause (ii) shall not apply to any certificated securities that were previously delivered to JPMorgan Chase         Bank, N.A. in its capacity as collateral agent under the Existing Term Loan Credit Agreement;                  (iii)   certified copies of a recent date of requests for information or copies (Form UCC-1), or         equivalent reports as of a recent date, listing all effective financing statements that name the Borrower or         any  other  Credit  Party  as  debtor  and  that  are  filed  in  the  jurisdictions  referred  to  in  clause  (i)  above,         together with copies of such other financing statements that name the Borrower or any other Credit Party as         debtor (none of which shall cover any of the Collateral except to the extent evidencing Permitted Liens);         and                  (iv)   an executed Perfection Certificate.          6.06    Subsidiaries Guaranty.  On the Closing Date, each Subsidiary Guarantor shall have executed and  delivered  the  Subsidiaries  Guaranty  substantially  in  the  form  of  Exhibit  H  (as  may  be  amended,  amended  and  restated, modified, supplemented, extended or renewed from time to time, the “Subsidiaries Guaranty”).           6.07    Financial  Statements.   On  or  prior  to  the  Closing  Date,  the  Administrative  Agent  shall  have  received (i) the audited combined balance sheets of the Borrower (or a Parent Company) and its Subsidiaries for the  two  most  recent  years  ending  at  least  90  days  prior  to  the  Closing  Date,  and  the  related  audited  statements  of                                                   69 

 

  operations and comprehensive income and statements of cash flows of the Borrower (or such Parent Company) and  its  Subsidiaries  for  the  fiscal  years  then  ended  (collectively,  the  “Audited  Financial  Statements”)  and  (ii)  the  unaudited combined balance sheets of the Borrower (or a Parent Company)  and its Subsidiaries as of each fiscal  quarter ending after the date of the most recent balance sheet delivered pursuant to clause (i) and at least 45 days  prior to the Closing Date (the date of the last  such applicable fiscal year or quarter, as applicable, the “Financial  Statements Date”), and the related unaudited statements of operations and comprehensive income and statements of  cash flows of the Borrower (or such Parent Company) and its Subsidiaries for the portion of the fiscal year then  ended (the “Unaudited Financial Statements”).  The financial statements referred to in clauses (i) and (ii) shall be  prepared  in  accordance  with  U.S.  GAAP  subject  in  the  case  of  the  Unaudited  Financial  Statements  to  changes  resulting from audit and normal year-end audit adjustments and to the absence of certain footnotes.           6.08    Solvency Certificate.  On the Closing Date, the Administrative Agent shall have received a  solvency certificate from the chief financial officer or treasurer (or officer with equivalent duties) of the Borrower  substantially in the form of Exhibit I.                  6.09    Fees, etc.  On the Closing Date, the Borrower shall have paid to the Agents all costs, fees and  expenses (including, without limitation, legal fees and expenses) to the extent invoiced at least three (3) Business  Days prior the Closing Date and other compensation payable to the Agents or any Lender that have been separately  agreed and are payable in respect of the Transactions to the extent then due.          6.10    Representations and Warranties.  The representations and warranties contained herein and in the  other Credit Documents shall be true and correct in all material respects on the Closing Date (it being understood  and agreed that (x) any representation or warranty which by its terms is made as of a specified date shall be required  to be true and correct in all material respects only as of such specified date and (y) any representation or warranty  that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all  respects on such date).          6.11    Patriot Act; Beneficial Ownership Regulation.  (i) The Agents shall have received from the Credit  Parties, at least three (3) Business Days prior to the Closing Date, all documentation and other information required  by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations,  including the Patriot Act, in each case to the extent requested in writing at least ten (10) Business Days prior to the  Closing  Date  and  (ii)  if  the  Borrower  qualifies  as  a  “legal  entity  customer”  under  the  Beneficial  Ownership  Regulation, the Administrative Agent and each Lender that requests a Beneficial Ownership Certification shall have  received, at least three (3) Business Days prior to the Closing Date, a Beneficial Ownership Certification in relation  to the Borrower.          6.12    Borrowing  Notice.   Prior  to  the  making  of  the  Initial  Term  Loans  on  the  Closing  Date,  the  Administrative Agent shall have received a Notice of Borrowing meeting the requirements of Section 2.03.          6.13    Officer’s  Certificate.   On  the  Closing  Date,  the  Borrower  shall  have  delivered  to  the  Administrative Agent a certificate of a Responsible Officer of the Borrower certifying as to the satisfaction of the  condition in Section 6.10.          6.14    [Reserved].          6.15    Flood Documentation.  The Administrative Agent shall have received a completed “Life-of-Loan”  Federal  Emergency  Management  Agency  standard  flood  hazard  determination  with  respect  to  each  Mortgaged  Property (together with, to the extent applicable, a notice about special flood hazard area status and flood disaster  assistance duly executed by the Borrower and each Credit Party relating thereto).          6.16    Repayment  of  Existing  Indebtedness.   The  Borrower  shall  have  paid  in  full,  or  satisfied  and  discharged, the outstanding principal amount of (A) the Senior Notes issued pursuant to the Senior Notes Indenture,  (B) the Second Lien Notes issued pursuant to the Second Lien Notes Indenture, (C) the Holdco Notes pursuant to  the Holdco Notes Indenture and (D) all “Loans” outstanding under and as defined in the Existing Term Loan Credit  Agreement, in each case together with all accrued and unpaid interest, premiums and fees thereon, in each case as of  immediately prior to, or substantially simultaneously with, giving effect to this Agreement.                                                  70 

 

         Section 7.  Conditions  Precedent  to  all  Credit  Events  after  the  Closing  Date.   The  obligation  of  each  Lender to make Term Loans after the Closing Date shall be subject to the satisfaction or waiver of the conditions set  forth in Section 2.15 or Section 2.18, as applicable.          Section 8.  Representations, Warranties and Agreements.  In order to induce the Lenders to enter into  this Agreement and to make the Term Loans, the Borrower (and, solely with respect to Sections 8.01, 8.02, 8.03,  8.04, and 8.16  with respect to itself, Holdings),  makes the following representations and  warranties, in each case  after giving effect to the Transaction.          8.01    Organizational Status.  Each of Holdings, the Borrower and each of its Restricted Subsidiaries (i)  is  a  duly  organized  and  validly  existing  corporation,  partnership,  limited  liability  company  or  unlimited  liability  company,  as  the  case  may  be,  in  good  standing  (to  the  extent  such  concept  is  applicable)  under  the  laws  of  the  jurisdiction  of  its  organization,  (ii)  has  the  corporate,  partnership,  limited  liability  company  or  unlimited  holding  company power and authority, as the case may be, to own its property and assets and to transact the business in  which it is engaged and presently proposes to engage and (iii) is, to the extent such concepts are applicable under the  laws  of  the  relevant  jurisdiction,  duly  qualified  and  is  authorized  to do  business  and  is  in  good  standing  in  each  jurisdiction where the ownership, leasing or operation of its property or the conduct of its business requires  such  qualifications except for failures to be so qualified which, individually and in the aggregate would not reasonably be  expected to have a Material Adverse Effect.          8.02    Power  and  Authority;  Enforceability.   Each  Credit  Party  thereof  has  the  corporate,  partnership,  limited liability company or unlimited liability company power and authority, as the case may be, to execute, deliver  and  perform  the  terms  and  provisions  of  each  of  the  Credit  Documents  to  which  it  is  party  and  has  taken  all  necessary corporate, partnership, limited liability company or unlimited liability company action, as the case may  be, to authorize the execution, delivery and performance by it of each of such Credit Documents.  Each Credit Party  thereof has duly executed and delivered each of the Credit Documents to which it is party, and each of such Credit  Documents constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the  extent  that  the  enforceability  thereof  may  be  limited  by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  similar  laws  generally  affecting  creditors’  rights  and  by  equitable  principles  (regardless  of  whether enforcement is sought in equity or at law).          8.03    No Violation.  Neither the execution, delivery or performance by any Credit Party of the Credit  Documents to which it is a party, nor compliance by it with the terms and provisions thereof, (i) will contravene any  provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or governmental  instrumentality, (ii) will conflict with or result in any breach of any of the terms, covenants, conditions or provisions  of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any  Lien (except pursuant to the Security Documents) upon any of the property or assets of any Credit Party pursuant to  the  terms  of,  any  indenture,  mortgage,  deed  of  trust,  credit  agreement  or  loan  agreement,  or  any  other  material  agreement, contract or instrument, in each case to which any Credit Party is a party or by which it or any of its  property or assets is bound or to which it may be subject (except, in the case of preceding clauses (i) and (ii), other  than in the case of any contravention, breach, default and/or conflict, that would not reasonably be expected, either  individually  or  in  the  aggregate,  to  have  a  Material  Adverse  Effect)  or  (iii)  will  violate  any  provision  of  the  certificate or articles of incorporation, certificate of formation, limited liability company agreement or by-laws (or  equivalent organizational documents), as applicable, of any Credit Party.          8.04    Approvals.  Except to the extent the failure to obtain or make the same would not reasonably be  expected to have a Material Adverse Effect, no order, consent, approval, license, authorization or validation of, or  filing, recording or registration with (except for (x) those that have otherwise been obtained or made on or prior to  the Closing Date and which remain in full force and effect on the Closing Date and (y) filings which are necessary to  perfect the security interests created under the Security Documents), or exemption by, any governmental or public  body or authority, or any subdivision thereof, is required to be obtained or made by, or on behalf of, any Credit Party  to  authorize,  or  is  required  to  be obtained  or  made  by,  or on  behalf  of,  any  Credit  Party  in  connection  with,  the  execution, delivery and performance of any Credit Document.                                                   71 

 

         8.05    Financial Statements; Financial Condition.          (a)                        (i)   The Audited Financial Statements present fairly in all material respects the consolidated         financial position of the Borrower (or a Parent Company, as applicable) and its Subsidiaries as of the dates         thereof  and  their  results  of  operations  for  the  period  covered  thereby.   All  of  the  foregoing  Audited         Financial Statements have been audited by Ernst and Young,  KPMG LLP or other independent certified         public  accountants  of  recognized  national  standing  and  prepared  in  accordance  with  U.S.  GAAP         consistently applied, except as otherwise expressly noted.                  (ii)   The  Unaudited  Financial  Statements  present  fairly  in  all  material  respects  the         consolidated financial position of the Borrower (or a Parent Company, as applicable) and its Subsidiaries as         of the date thereof and their results of operations for the period covered thereby, subject to the absence of         footnotes and to normal year-end audit adjustments.  All of the foregoing Unaudited Financial Statements         have  been  prepared  in  accordance  with  U.S.  GAAP  consistently  applied,  except  as  otherwise  expressly         noted therein.          (b)     On the Closing Date, the Borrower and its Subsidiaries, on a consolidated basis, are Solvent after  giving effect to the consummation of the Transactions.          (c)     Since the Closing  Date there has been no change, event  or occurrence that  could  reasonably be  expected to have, either individually or in the aggregate, a Material Adverse Effect.          8.06    Litigation.   There  are  no  actions,  suits  or  proceedings  pending  or,  to  the  knowledge  of  the  Borrower,  threatened  in  writing  (i)  with  respect  to  the  Transaction  or  any  Credit  Document  or  (ii)  that  either  individually or in the aggregate, have had, or would reasonably be expected to have, a Material Adverse Effect.          8.07    True and Complete Disclosure.            (a)     All written information (other than information consisting of statements, estimates and forecasts,  as  to  which  no  representation,  warranty  or  covenant  is  made)  that  has  been  or  will  be  made  available  to  the  Administrative Agent or any Lender by any Credit Party or any representative of a Credit Party at its direction and  on its behalf in connection with this Agreement, the other Credit Documents or any transaction contemplated herein  or therein, when taken as a  whole and after giving effect to all supplements thereto, is and will be complete and  correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to  state a material fact necessary to make the statements contained therein, in each case in light of the circumstances  under which such statements are made, not materially misleading.          (b)     As of the Closing Date, to the best knowledge of the Borrower, the information included in the  Beneficial  Ownership  Certification  provided  on  or  prior  to  the  Closing  Date  to  any  Lender  pursuant  to  this  Agreement is true and correct in all respects.          8.08    Use of Proceeds; Margin Regulations.          (a)     All proceeds of the Initial Term Loans incurred on the Closing Date will be used by the Borrower  to finance the Transactions and for working capital or for any purpose not prohibited under this Agreement.            (b)     All  proceeds  of  Incremental  Term  Loans  will  be  used  for  purposes  not  in  violation  of  Section  2.15(a)(vi).            (c)     No part of any Credit Event (or the proceeds thereof) will be used to purchase or carry any Margin  Stock or to extend credit for the purpose of purchasing or carrying any Margin Stock.  Neither the making of any  Term  Loan  nor  the  use  of  the  proceeds  thereof  nor  the  occurrence  of  any  other  Credit  Event  will  violate  the                                                   72 

 

  provisions  of  Regulation  T,  Regulation  U  or  Regulation  X  of  the  Board  of  Governors  of  the  Federal  Reserve  System.          (d)     The Borrower will not request any Borrowing, and the Borrower shall not use, and shall procure  that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of  any Borrowing (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of  money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of  funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any  Sanctioned  Country,  or  (C)  in  any  manner  that  would  result  in  the  violation  of  any  Sanctions  applicable  to  the  Borrower and its Subsidiaries or, to the knowledge of the Borrower, any other party hereto.           8.09    Tax Returns and Payments.  Except as would not reasonably be expected to result in a Material  Adverse Effect, (i) the Borrower and each of its Restricted Subsidiaries has timely filed or caused to be timely filed  with the appropriate taxing authority all Tax returns, statements, forms and reports for taxes (the “Returns”) required  to be filed by, or with respect to the income, properties or operations of, the Borrower and/or any of its Restricted  Subsidiaries, (ii) the Returns accurately reflect in all material respects all liability for Taxes of the Borrower and its  Restricted Subsidiaries for the periods covered thereby, and (iii) the Borrower and each of its Restricted Subsidiaries  have  paid  all  Taxes  payable  by  them,  other  than  those  that  are  being  contested  in  good  faith  by  appropriate  proceedings  and  fully  provided  for  as  a  reserve  on  the  financial  statements  of  the  Borrower  and  its  Restricted  Subsidiaries in accordance with U.S. GAAP.  There is no action, suit, proceeding, investigation, audit or claim now  pending or, to the knowledge of the Borrower, threatened in writing by any authority regarding any Taxes relating to  the Borrower or any of its Restricted Subsidiaries which is reasonably likely to be adversely determined, and, if  adversely determined, would be reasonably be expected to result in a Material Adverse Effect.          8.10    ERISA.          (a)     No  ERISA  Event  has  occurred  or  is  reasonably  expected  to  occur  that  would  reasonably  be  expected to result in a Material Adverse Effect.  Each Plan is in compliance in form and operation with its terms and  with the applicable provisions of ERISA, the Code and other applicable law, except for such non-compliance that  would not reasonably be expected to have a Material Adverse Effect.  Except as would not reasonably be expected  to result in a Material Adverse Effect, each Plan (and each related trust, if any) which is intended to be qualified  under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service or  is in the form of a prototype document that is the subject of a favorable opinion letter.          (b)     There  exists  no  Unfunded  Pension  Liability  with  respect  to  any  Plan,  except  as  would  not  reasonably be expected to have a Material Adverse Effect.          (c)     If each of the Borrower, each Restricted Subsidiary of the Borrower and each ERISA Affiliate  were to withdraw from all Multiemployer Plans in a complete withdrawal as of the date this assurance is given, the  aggregate withdrawal liability that would be incurred would not reasonably be expected to have a Material Adverse  Effect.          (d)     There are no actions, suits or claims pending against or involving a Plan (other than routine claims  for  benefits)  or,  to  the  knowledge  of  the  Borrower,  any  Restricted  Subsidiary  of  the  Borrower  or  any  ERISA  Affiliate,  threatened,  which  would reasonably be expected to  be asserted  successfully  against  any Plan and,  if  so  asserted  successfully,  would  reasonably  be  expected,  either  individually  or  in  the  aggregate,  to  have  a  Material  Adverse Effect.          (e)     The Borrower, any Restricted Subsidiary of the Borrower and any ERISA Affiliate have made all  material  contributions  to  or  under  each  Plan  and  Multiemployer  Plan  required  by  law  within  the  applicable  time  limits prescribed thereby, the terms of such Plan or Multiemployer Plan, respectively, or any contract or agreement  requiring contributions to a Plan or Multiemployer Plan except where any failure to comply, individually or in the  aggregate, would not reasonably be expected to have a Material Adverse Effect.                                                   73 

 

         (f)     Except as would not reasonably be expected to have a Material Adverse Effect:  (i) each Foreign  Pension Plan has been maintained in substantial compliance with its terms and with the requirements of any and all  applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing  with applicable regulatory authorities; (ii) all contributions required to be made with respect to a Foreign Pension  Plan have been timely made; and (iii) neither the Borrower nor any of its Restricted Subsidiaries has incurred any  obligation in connection with the termination of, or withdrawal from, any Foreign Pension Plan.          8.11    The Security Documents.          (a)     The provisions of the Security Agreement are effective to create in favor of the Collateral Agent  for the benefit of the Secured Creditors a legal, valid and enforceable security interest (except to the extent that the  enforceability  thereof  may  be  limited  by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is  sought in equity or at law)) in all right, title and interest of the Credit Parties in the Collateral (as described in the  Security Agreement) specified therein in which a security interest can be created under applicable law, and upon (i)  the  timely  and  proper  filing  of  financing  statements  listing  each  applicable  Credit  Party,  as  a  debtor,  and  the  Collateral Agent, as secured creditor, in the secretary of state’s office (or other similar governmental entity) of the  jurisdiction  of  organization  of  such  Credit  Party,  (ii)  the  receipt  by  the  Collateral  Agent  of  all  Instruments  (as  defined in the Security Agreement), Chattel Paper (as defined in the Security Agreement) and certificated pledged  Equity Interests that constitute “securities” governed by Article 8 of the New York UCC, in each case constituting  Collateral in suitable form for transfer by delivery or accompanied by instruments of transfer or assignment duly  executed in blank, (iii) sufficient identification of commercial tort claims (as applicable), (iv) execution of a control  agreement establishing the Collateral Agent’s “control” (within the meaning of the New York UCC) with respect to  any deposit account, (v) the recordation of the Patent Security Agreement, if applicable, and the Trademark Security  Agreement,  if  applicable,  in  the  respective  form  attached  to  the  Security  Agreement,  in  each  case  in  the  United  States Patent and Trademark Office and (vi) the recordation of the Copyright Security Agreement, if applicable, in  the form attached to the Security Agreement with the United States Copyright Office, the Collateral Agent, for the  benefit of the Secured Creditors, has (to the extent provided in the Security Agreement) a fully perfected security  interest in all right, title and interest in all of the Collateral (as described in the Security Agreement), subject to no  other Liens other than Permitted Liens, in each case, to the extent perfection can be accomplished under applicable  law through these actions.          (b)     Upon delivery in accordance with Section 9.12 or 9.13 as applicable, each Mortgage will create, as  security for the obligations purported to be secured thereby, a valid and enforceable (except to the extent that the  enforceability  thereof  may  be  limited  by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is  sought in equity or at law)) and, upon recordation in the appropriate recording office, perfected security interest in  and mortgage lien on the respective Mortgaged Property in favor of the Collateral Agent (or such other trustee as  may be required or desired under local law) for the benefit of the Secured Creditors, superior and prior to the rights  of all third Persons (except as may exist pursuant to the Permitted Encumbrances related thereto) and subject to no  other Liens (other than Permitted Liens related thereto).          8.12    Properties.  All Real Property owned by any Credit Party as of the Closing Date, and the nature of  the interest  therein, is correctly set forth in Schedule 8.12, which Schedule 8.12 also indicates each property that  constitutes  a  Material  Real  Property  as  of  the  Closing  Date.   Each  of  the  Borrower  and  each  of  its  Restricted  Subsidiaries has good and marketable title or valid leasehold interest in the case of Real Property, and good and  valid  title  in  the  case  of  tangible  personal  property,  to  all  material  tangible  properties  owned  by  it,  including  all  material property reflected in the most recent historical balance sheets referred to in Section 8.05(a) (except as sold  or otherwise disposed of since the date of such balance sheet in the ordinary course of business or as permitted by  the terms of this Agreement), free and clear of all Liens, other than Permitted Liens, except where the failure to have  such title or interests would not reasonably be expected to have, individually or in the aggregate, a Material Adverse  Effect on the use or operation of such Real Property or personal property necessary for the ordinary conduct of the  Borrower and its Restricted Subsidiaries’ business, taken as a whole.          8.13    Capitalization.  All outstanding shares of capital stock of the Borrower have been duly and validly  issued and are fully paid and non-assessable (other than any assessment on the shareholders of the Borrower that                                                  74 

 

  may  be  imposed  as  a  matter  of  law)  and  are  owned  by  Holdings.   The  Borrower  does  not  have  outstanding  any  capital stock or other securities convertible into or exchangeable for its capital stock or any rights to subscribe for or  to  purchase,  or  any  options  for  the  purchase  of,  or  any  agreement  providing  for  the  issuance  (contingent  or  otherwise) of, or any calls, commitments or claims of any character relating to, its capital stock.          8.14    Subsidiaries.  On and as of the Closing Date and after giving effect to the consummation of the  Transactions, the Borrower has no Subsidiaries other than those Subsidiaries listed on Schedule 8.14.  Schedule 8.14  correctly sets forth, as of the Closing Date and after giving effect to the Transactions, the percentage ownership  (direct and indirect) of the Borrower in each class of capital stock of each of its Subsidiaries and also identifies the  direct owner thereof.          8.15    Compliance with Statutes, OFAC Rules and Regulations; Patriot Act; FCPA.          (a)     Each of the Borrower and its Subsidiaries is in compliance with all applicable statutes, regulations  and orders of (including any laws relating to terrorism, money laundering, embargoed persons or the Patriot Act),  and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, in respect of the conduct of  its business and the ownership of its property (including, without limitation, applicable statutes, regulations, orders  and restrictions relating to environmental standards and controls), except such noncompliances as, individually and  in  the  aggregate,  have  not  had,  and  would  not  reasonably  be  expected  to  have,  a  Material  Adverse  Effect.   The  Borrower will not directly (or knowingly indirectly) use the proceeds of the Initial Term Loans to violate or result in  a  violation  of  any  such  applicable  statutes,  regulations,  orders  or  restrictions  referred  to  in  the  immediately  preceding sentence.          (b)     The Borrower has implemented and maintains in effect policies and procedures reasonably and  appropriately  designed  to  ensure  material  compliance  by  the  Borrower,  its  Subsidiaries  and  their  respective  directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its  Subsidiaries and their respective officers and employees and, to the knowledge of the Borrower, its directors and  agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a)  the Borrower, any Subsidiary or any of their respective directors, officers or employees, or (b) to the knowledge of  the Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit  from  the  credit  facility  established  hereby,  is  a  Sanctioned  Person.   No  Borrowing,  use  of  proceeds  or  the  Transaction will violate any Anti-Corruption Law or applicable Sanctions.          8.16    Investment Company Act.  None of Holdings, the Borrower or any of its Restricted Subsidiaries is  an “investment company” within the meaning of the Investment Company Act of 1940, as amended, required to be  registered as such.          8.17    [Reserved].          8.18    Environmental Matters.          (a)     The  Borrower  and  each  of  its  Restricted  Subsidiaries  are  in  compliance  with  all  applicable  Environmental  Laws  and  the  requirements  of  any  permits  issued  under  such  Environmental  Laws.   To  the  knowledge of any Credit Party, there are no pending or threatened Environmental Claims against the Borrower or  any  of  its  Restricted  Subsidiaries  or  any  Real  Property  currently  or  formerly  owned,  leased  or  operated  by  the  Borrower or any of its Restricted Subsidiaries.  There are no facts, circumstances, conditions or occurrences with  respect to the business or operations of the Borrower or any of its Restricted Subsidiaries, or to the knowledge of  any Credit Party, any Real Property currently or formerly owned, leased or operated by the Borrower or any of its  Restricted Subsidiaries that would be reasonably expected (i) to form the basis of an Environmental Claim against  the Borrower or any of its Restricted Subsidiaries or (ii) to cause any Real Property owned, leased or operated by the  Borrower or any of its Restricted Subsidiaries to be subject to any restrictions on the ownership, lease, occupancy or  transferability of such  Real Property by the Borrower or any of its  Restricted Subsidiaries under any applicable  Environmental Law.                                                   75 

 

         (b)     To the knowledge of any Credit Party, Hazardous Materials have not at any time been generated,  used, treated or stored on, or transported to or from, or Released on or from, any Real Property owned, leased or  operated  by  the  Borrower  or  any  of  its  Restricted  Subsidiaries  where  such  generation,  use,  treatment,  storage,  transportation or Release has (i) violated or would be reasonably expected to violate any applicable Environmental  Law, (ii) give rise to an Environmental Claim or (iii) give rise to liability under any applicable Environmental Law.          (c)     Notwithstanding anything to the contrary in this Section 8.18, the representations and warranties  made in this Section 8.18 shall be untrue only if the effect of any or all conditions, violations, claims, restrictions,  failures and noncompliances of the types described above would, either individually or in the aggregate, reasonably  be expected to have a Material Adverse Effect.          8.19    Labor Relations.  Except as set forth in Schedule 8.19 or except to the extent the same has not,  either individually or in the aggregate, had and would not reasonably be expected to have a Material Adverse Effect,  (a)  there  are  no  strikes,  lockouts,  slowdowns  or  other  labor  disputes  pending  against  the  Borrower  or  any  of  its  Restricted  Subsidiaries  or,  to  the  knowledge  of  the  Borrower,  threatened  against  the  Borrower  or  any  of  its  Restricted  Subsidiaries,  (b)  to  the  knowledge  of  the  Borrower,  there  are  no  questions  concerning  union  representation  with  respect  to  the  Borrower  or  any  of  its  Restricted  Subsidiaries,  (c)  the  hours  worked  by  and  payments made to employees of the Borrower or any of its Restricted Subsidiaries have not been in violation of the  Fair Labor Standards Act or any other applicable Federal, state, local, or foreign law dealing with such matters and  (d) to the knowledge of the Borrower, no wage and hour department investigation has been made of the Borrower or  any of its Restricted Subsidiaries.          8.20    Intellectual Property.  Each of the Borrower and each of its Restricted Subsidiaries owns or has the  right  to  use  all  the  patents,  trademarks,  domain  names,  service  marks,  trade  names,  copyrights,  inventions,  trade  secrets,  formulas,  proprietary  information  and  know-how  of  any  type,  whether  or  not  written  (including,  but  not  limited  to,  rights  in  computer  programs  and  databases)  (collectively,  “Intellectual  Property”),  necessary  for  the  present conduct of its business, without any known conflict with the Intellectual Property rights of others, except for  such failures to own or have the right to use and/or conflicts as have not had, and would not reasonably be expected  to have, a Material Adverse Effect.          Section 9.  Affirmative  Covenants.   The  Borrower  and  each  of  its  Restricted  Subsidiaries  hereby  covenants and agrees that on and after the Closing Date and until the Term Loans (in each case together with interest  thereon), Fees and all other Obligations (other than any indemnification obligations arising hereunder which are not  then due and payable and obligations in respect of Interest Rate Protection Agreements, Other Hedging Agreements  and Treasury Services Agreements) incurred hereunder and thereunder, are paid in full:          9.01    Information Covenants. The Borrower will furnish to the Administrative Agent for distribution to  each Lender, including each Lender’s Public-Siders, except as otherwise provided below:                  (a)    Quarterly Financial Statements.  Within 45 days after the close of each of the first three         quarterly accounting periods in each fiscal year of the Borrower, (i) the consolidated balance sheet of the         Borrower and its Subsidiaries as at the end of such quarterly accounting period and the related consolidated         statements  of  income  and  retained  earnings  and  statement  of  cash  flows  for  such  quarterly  accounting         period and for the elapsed portion of the fiscal year ended with the last day of such quarterly accounting         period, in each case setting forth comparative figures for the corresponding quarterly accounting period in         the prior fiscal year, all of which shall be certified by the chief financial officer of the Borrower that they         fairly  present  in  all  material  respects  in  accordance  with  U.S.  GAAP  the  financial  condition  of  the         Borrower and its Subsidiaries as of the dates indicated and the results of their operations for the periods         indicated,  subject  to  normal  year-end  audit  adjustments  and  the  absence  of  footnotes,  and  (ii)         management’s discussion and analysis of the important operational and financial developments during such         quarterly accounting period.                    (b)    Annual Financial  Statements.  Within 90 days after the close of each fiscal year of the         Borrower, (i) the consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal         year and the related consolidated statements of income and retained earnings and statement of cash flows         for such fiscal year setting forth comparative figures for the preceding fiscal year and certified, in the case                                                  76 

 

                  of consolidated financial statements, by Ernst & Young, KPMG LLP or other independent certified public  accountants  of  recognized  national  standing,  together  with  an  opinion  of  such  accounting  firm  (which  opinion shall be without a “going concern” or like qualification or exception (other than any emphasis of  matter  paragraph)  and  without  any  qualification  or  exception  as  to  the  scope  of  such  audit  (except  for  qualifications for a change in accounting principles with which such accountants concur and which shall  have been disclosed in the notes to the financial statements or other than as a result of, or with respect to,  (A)  an  upcoming  maturity  date  under  this  Agreement  or  the  ABL  Credit  Agreement,  (B)  any  actual  or  potential inability to satisfy any financial maintenance covenant under any of its Indebtedness (including,  without limitation, the ABL Credit Agreement) on a future date or in a future period or (C) the activities,  operations, financial results, assets or liability of any Unrestricted Subsidiary)) to the effect such statements  fairly  present  in  all  material  respects  in  accordance  with  U.S.  GAAP  the  financial  condition  of  the  Borrower  and  its  Subsidiaries  as  of  the  date  indicated  and  the  results  of  their  operations  for  the  periods  indicated,  and  (ii)  management’s  discussion  and  analysis  of  the  important  operational  and  financial  developments during such fiscal year.             (c)    Notwithstanding  the  foregoing,  the  obligations  referred  to  in  Sections  9.01(a) and  9.01(b) above may be satisfied with respect to financial information of the Borrower and its Subsidiaries by  furnishing (A) the applicable financial statements of any Parent Company or (B) the Borrower’s or such  Parent Company’s Form 10-K or 10-Q, as applicable, filed with the SEC (and the public filing of such  report with the SEC shall constitute delivery under this Section 9.01); provided that with respect to each of  the preceding clauses (A) and (B), (1) to the extent such information relates to a Parent Company, if and so  long  as  such  Parent  Company  will  have  Independent  Assets  or  Operations,  such  information  is  accompanied by, or the Borrower shall separately deliver within the applicable time periods set forth in  Sections 9.01(a) and 9.01(b) above, consolidating information (which need not be audited) that explains in  reasonable  detail  the  differences  between  the  information  relating  to  such  Parent  Company  and  its  Independent Assets or Operations, on the one hand, and the information relating to the Borrower and the  consolidated Restricted  Subsidiaries  on a stand-alone basis,  on the other hand and  (2) to the extent  such  information  is  in  lieu  of  information  required  to  be  provided  under  Section 9.01(b),  such  materials  are  accompanied by a report and opinion by Ernst & Young, KPMG LLP or other independent certified public  accountants  of  recognized  national  standing  or  another  accounting  firm  reasonably  acceptable  to  the  Administrative Agent, which report and opinion  (a) will be prepared in accordance with generally accepted  auditing standards and (b) will be without a “going concern” or like qualification or exception (other than  any emphasis of matter paragraph) and without any qualification or exception as to the scope of such audit  (except for qualifications for a change in accounting principles with which such accountants concur and  which shall have been disclosed in the notes to the financial statements or other than as a result of, or with  respect  to,  (I)  an  upcoming  maturity  date  under  this  Agreement  or  the  ABL  Credit  Agreement,  (II)  any  actual or potential inability to satisfy any financial  maintenance covenant under any of its Indebtedness  (including, without limitation, the ABL Credit Agreement) on a future date or in a future period or (III) the  activities, operations, financial results, assets or liability of any Unrestricted Subsidiary).           (d)    [Reserved].             (e)    Officer’s  Certificates.   At  the  time  of  the  delivery  of  the  Section  9.01  Financials,  a  compliance certificate from a Responsible Officer of the Borrower substantially in the form of Exhibit J,  certifying on behalf of the Borrower that, to such Responsible Officer’s knowledge, no Default or Event of  Default  has  occurred  and  is  continuing  or,  if  any  Default  or  Event  of  Default  has  occurred  and  is  continuing,  specifying  the  nature  and  extent  thereof,  which  certificate  shall  (i)  if  delivered  with  the  financial  statements  required  by  Section  9.01(b),  set  forth  in  reasonable  detail  the  amount  of  (and  the  calculations required to establish the amount of) Excess Cash Flow for the applicable Excess Cash Flow  Payment Period, (ii) certify that there have been no changes to Schedules 1(a), 2(b), 9, 11(a), 11(b), 11(c),  12 and 13 of the Perfection Certificate, in each case since the Closing Date or, if later, since the date of the  most recent certificate delivered pursuant to this Section 9.01(e), or if there have been any such changes, a  list in reasonable detail of such changes (but, in each case with respect to this clause (ii), only to the extent  such changes are required to be reported to the Collateral Agent pursuant to the terms of such Security  Documents), and (iii) certify that there have been no changes to the information provided in the Beneficial  Ownership  Certification  delivered  to  any  Lender  that  would  result  in  a  change  to  the  list  of  beneficial                                           77 

 

                  owners identified in such certification, in each case since the Closing Date or, if later, since the date of the  most recent certificate delivered pursuant to this Section 9.01(e), or if there have been any such changes, a  list  in  reasonable  detail  of  such  changes  (but,  in  each  case  with  respect  to  this  clause  (iii),  solely  to  the  extent (x) such changes would result in a change to the list of beneficial owners identified in any such  certification and (y) the Beneficial Ownership Regulation is applicable to the Credit Parties specified in the  Beneficial Ownership Certification delivered to any Lender).           (f)    Notice  of  Default,  Litigation  and  Material  Adverse  Effect.   Promptly  after  any  Responsible Officer of the Borrower obtains knowledge thereof, notice of (i) the occurrence of any event  which constitutes a Default or an Event of Default or any default or event of default under the ABL Credit  Agreement, any Permitted Pari Passu Notes Documents, any Permitted Pari Passu Loan Documents or any  Permitted Junior Debt or other debt instrument in excess of the Threshold Amount, (ii) any litigation, or  governmental investigation or proceeding  pending against  Holdings or any  of  its Subsidiaries (x)  which,  either  individually  or  in  the  aggregate,  has  had,  or  would  reasonably  be  expected  to  have,  a  Material  Adverse Effect or (y) with respect to any Credit Document, or (iii) any other event, change or circumstance  that has had, or would reasonably be expected to have, a Material Adverse Effect.           (g)    Other Reports and Filings.  Promptly after the filing or delivery thereof, copies of all  financial information, proxy materials and reports, if any, which Holdings or any of its Subsidiaries shall  publicly file with the Securities and Exchange Commission or any successor thereto (the “SEC”).            (h)    Environmental Matters.  Promptly after any Responsible Officer of the Borrower obtains  knowledge thereof, notice of any of the following environmental matters to the extent such environmental  matters,  either  individually  or  when  aggregated  with  all  other  such  environmental  matters,  would  reasonably be expected to have a Material Adverse Effect:                   (i)   any pending or threatened Environmental Claim against the Borrower or any of          its Restricted Subsidiaries or any Real Property owned, leased or operated by the Borrower or any          of its Restricted Subsidiaries;                  (ii)    any condition or occurrence on or arising from any Real Property owned, leased          or operated by the Borrower or any of its Restricted Subsidiaries that (a) results in noncompliance          by the Borrower or any of its Restricted Subsidiaries with any applicable Environmental Law or          (b)  would  reasonably  be  expected  to  form  the  basis  of  an  Environmental  Claim  against  the          Borrower or any of its Restricted Subsidiaries or any such Real Property;                  (iii)  any condition or occurrence on any Real Property owned, leased or operated by          the Borrower or any of its Restricted Subsidiaries that could reasonably be expected to cause such          Real  Property  to  be  subject  to  any  restrictions  on  the  ownership,  lease,  occupancy,  use  or          transferability by the Borrower or any of its Restricted Subsidiaries of such Real Property under          any Environmental Law; and                  (iv)    the taking of any removal or remedial action in response to the actual or alleged          presence  of  any  Hazardous  Material  on  any  Real  Property  owned,  leased  or  operated  by  the          Borrower  or  any  of  its  Restricted  Subsidiaries  as  required  by  any  Environmental  Law  or  any          governmental or other administrative agency and all notices received by the Borrower or any of its          Restricted  Subsidiaries  from  any  government  or  governmental  agency  under,  or  pursuant  to,          CERCLA  which  identify  the  Borrower  or  any  of  its  Restricted  Subsidiaries  as  potentially          responsible  parties  for  remediation  costs  or  which  otherwise  notify  the  Borrower  or  any  of  its          Restricted Subsidiaries of potential liability under CERCLA.           All  such  notices  shall  describe  in  reasonable  detail  the  nature  of  the  claim,  investigation,  condition,  occurrence  or  removal  or  remedial  action  and  the  Borrower’s  or  such  Subsidiary’s  response  thereto.                                            78 

 

                 The  Borrower  represents  and  warrants  that  it,  Holdings  or  any  other  Parent  Company  and  any         Subsidiary, in each case, if any, either (i) has no registered or publicly traded securities outstanding, or (ii)         files  its  financial  statements  with  the  SEC  and/or  makes  its  financial  statements  available  to  potential         holders  of  its  144A  securities,  and,  accordingly,  the  Borrower  hereby  (i)  authorizes  the  Administrative         Agent to make financial statements and other information provided pursuant to clauses (a) and (b) above,         along with the Credit Documents and the list of Disqualified Lenders, available to Public-Siders and (ii)         agrees that at the time the Section 9.01 Financials are provided hereunder, they shall already have been, or         shall  substantially  concurrently  be,  made  available  to  holders  of  its  securities.   The  Borrower  will  not         request that any other material be posted to Public-Siders without expressly representing and warranting to         the Administrative Agent in writing that such materials do not constitute material non-public information         within the meaning of the federal securities laws or that the Borrower has no outstanding publicly traded         securities,  including  144A  securities  (it  being  understood  that  the  Borrower  shall  have  no  obligation  to         request that any material be posted to Public-Siders).  Notwithstanding anything herein to the contrary, in         no event shall the Borrower request that the Administrative Agent make available to Public-Siders budgets         or  any certificates, reports or  calculations  with respect to the Borrower’s compliance  with the covenants         contained herein.                   (i)    Notices to Holders.  Promptly after the sending, filing or receipt thereof, the Borrower         will provide to the Administrative Agent any material notices provided to, or received from, holders of (I)         Refinancing Notes, Permitted Pari Passu Notes, Permitted Pari Passu Loans, Permitted Junior Debt or other         Indebtedness, in each case of this clause (I), with a principal amount in excess of the Threshold Amount, or         (II) the ABL Credit Agreement (including, for the avoidance of doubt, any notices relating to an actual or         purported  default  or  event  of  default  thereunder  and  any  notices  to  the  extent  the  action  or  occurrence         described therein would reasonably be expected to be materially adverse to the interests of the Lenders, but         excluding any administrative notices or regular reporting requirements thereunder).                  (j)    Financial Statements of  Unrestricted Subsidiaries.   Simultaneously  with the delivery  of         each  set  of  Section  9.01  Financials,  the  related  consolidating  financial  statements  reflecting  adjustments         necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such consolidated financial         statements.                  (k)    Insurance.  Evidence of insurance renewals as required under Section 9.03.                  (l)    Other  Information.   From  time  to  time,  (x)  such  other  information  or  documents         (financial  or  otherwise)  with  respect  to  the  Borrower  or  any  of  its  Restricted  Subsidiaries  as  the         Administrative Agent or any Lender (through the Administrative Agent) may reasonably request and (y)         information and documentation reasonably requested by the Administrative Agent or any Lender necessary         for purposes  of  compliance  with applicable  “know  your  customer” and anti-money laundering rules and         regulations,  including  the  Patriot  Act  and  the  Beneficial  Ownership  Regulation.   Notwithstanding  the         foregoing,  neither  the  Borrower  nor  any  of  its  Restricted  Subsidiaries  will  be  required  to  provide  any         information pursuant to this Section 9.01(l) to the extent that the provision thereof would violate any law,         rule  or  regulation  or  result  in  the  breach  of  any  binding  contractual  obligation  or  the  loss  of  any         professional  privilege; provided  that  in  the  event  that  the  Borrower  or  any  of  its  Restricted  Subsidiaries         does not provide information that otherwise would be required to be provided hereunder in reliance on such         exception, the Borrower shall use commercially reasonable efforts to provide notice to the Administrative         Agent promptly upon obtaining knowledge that such information is being withheld (but solely if providing         such notice would not violate such law, rule or regulation or result in the breach of such binding contractual         obligation or the loss of such professional privilege).          9.02    Books, Records and Inspections; Conference Calls.            (a)     The  Borrower  will,  and  will  cause  each  of  its  Restricted  Subsidiaries  to,  keep  proper  books  of  record and accounts in which full, true and correct entries in conformity in all material respects with U.S. GAAP  shall be made of all dealings and transactions in relation to its business and activities (it being understood and agreed  that  Foreign  Subsidiaries  may  maintain  individual  books  and  records  in  conformity  with  generally  accepted  accounting principles that are applicable in their respective jurisdictions of organization).  The Borrower will, and                                                  79 

 

  will cause each of its Restricted Subsidiaries to, permit officers and designated representatives of the Administrative  Agent  or,  during  the  continuance  of  an  Event  of  Default  under  Section  11.01  or  11.05,  any  Lender  to  visit  and  inspect,  under  guidance  of  officers  of  the  Borrower  or  such  Restricted  Subsidiary,  any  of  the  properties  of  the  Borrower or such Restricted Subsidiary (subject to the rights of lessees or sublessees thereof and subject to any  restrictions or limitations in the applicable lease, sublease or other written occupancy arrangement pursuant to which  the Borrower or such Restricted Subsidiary is a party), and to examine the books of account of the Borrower or such  Restricted Subsidiary and discuss the affairs, finances and accounts of the Borrower or such Restricted Subsidiary  with, and be advised as to the same by, its and their officers and independent accountants (provided that neither the  Borrower nor any of its Restricted Subsidiaries will be required to provide any information to the extent that the  provision  thereof  would  violate  any  law,  rule  or  regulation  or  result  in  the  breach  of  any  binding  contractual  obligation  or  the  loss  of  any  professional  privilege; provided,  that  in  the  event  that  the  Borrower  or  any  of  its  Restricted Subsidiaries does not provide information that otherwise would be required to be provided hereunder in  reliance  on  such  exception,  the  Borrower  shall  use  commercially  reasonable  efforts  to  provide  notice  to  the  Administrative  Agent  promptly  upon  obtaining  knowledge  that  such  information  is  being  withheld  (but  solely  if  providing  such  notice  would  not  violate  such  law,  rule  or  regulation  or  result  in  the  breach  of  such  binding  contractual  obligation  or  the  loss  of  such  professional  privilege)),  all  upon  reasonable  prior  notice  and  at  such  reasonable times and intervals and to such reasonable extent as the Administrative Agent or any such Lender may  reasonably request; provided that the Administrative Agent shall give the Borrower an opportunity to participate in  any discussions with its accountants; provided, further, that in the absence of the existence of an Event of Default  under Section 11.01 or 11.05, (i) only the Administrative Agent on behalf of the Lenders may exercise the rights of  the  Administrative  Agent  and  the  Lenders  under  this  Section  9.02  and  (ii)  the  Administrative  Agent  shall  not  exercise its inspection rights under this Section 9.02 more often than two times during any fiscal year and only one  such  time  shall  be  at  the  Borrower’s  expense; provided, further, however,  that  when  an  Event  of  Default  under  Section 11.01 or 11.05 exists, the Administrative Agent or any Lender and their respective designees may do any of  the foregoing at the expense of the Borrower at any time during normal business hours and upon reasonable advance  notice.          (b)     If  requested  by  the  Administrative  Agent,  the  Borrower  will,  within  30  days  (or,  if  after  using  commercially reasonable efforts to schedule such call, at such later date as agreed to by the Administrative Agent in  its reasonable discretion) after the date of the delivery (or, if later, required delivery) of the quarterly and annual  financial  information  pursuant  to  Sections  9.01(a)  and  (b),  hold  a  conference  call  or  teleconference,  at  a  time  selected by the Borrower and reasonably acceptable to the Administrative Agent, with all of the Lenders that choose  to  participate,  to  review  the  financial  results  of  the  previous  fiscal  quarter  or  year,  as  the  case  may  be,  of  the  Borrower  (it  being  understood  that  any  such  call  may  be  combined  with  any  similar  call  held  for  any  of  the  Borrower’s or any Parent Company’s other lenders or equity holders).          9.03    Maintenance of Property; Insurance.          (a)     The Borrower will, and will cause each of its Restricted Subsidiaries to, (i) except as would not,  either  individually  or  in  the  aggregate,  reasonably  be  expected  to  result  in  a  Material  Adverse  Effect,  keep  all  tangible  property  necessary  to  the  business  of  the  Borrower  and  its  Restricted  Subsidiaries  in  reasonably  good  working  order  and  condition,  ordinary  wear  and  tear,  casualty  and  condemnation  excepted,  (ii)  maintain  with  financially sound and reputable insurance companies insurance on all such property and against all such risks as is,  in the good faith determination of the Borrower, consistent and in accordance with industry practice for companies  similarly situated owning similar properties and engaged in similar businesses as the Borrower and its Restricted  Subsidiaries,  and  (iii)  furnish  to  the  Administrative  Agent,  upon  its  request  therefor,  all  information  reasonably  requested as to the insurance carried.  The provisions of this Section 9.03 shall be deemed supplemental to, but not  duplicative of, the provisions of any Security Documents that require the maintenance of insurance.          (b)     If any portion of any Mortgaged Property is at any time located in an area identified by the Federal  Emergency Management  Agency (or  any  successor agency) as  a special  flood  hazard area  with  respect to  which  flood insurance has been made available under Flood Insurance Laws, then the Borrower shall, or shall cause the  applicable Credit Party to (i) maintain, or cause to be maintained, with a financially sound and reputable insurer,  flood insurance in an amount sufficient to comply with all applicable rules and regulations promulgated pursuant to  the  Flood  Insurance  Laws  and  (ii)  deliver  to  the  Administrative  Agent  evidence  reasonably  requested  by  the                                                   80 

 

  Administrative  Agent  as  to  such  compliance,  including,  without  limitation,  evidence  of  annual  renewals  of  such  insurance.          (c)     The  Borrower  will,  and  will  cause  each  of  its  Restricted  Subsidiaries  to,  at  all  times  keep  its  property constituting  Collateral insured  in  favor of the Collateral  Agent, and  all  liability and property policies  or  certificates (or certified copies thereof) with respect to such insurance that is a U.S. policy (i) shall be endorsed in a  customary manner to the Collateral Agent for the benefit of the Secured Creditors (including, without limitation, by  naming the Collateral Agent  as  loss payee,  mortgagee and/or  additional insured) and  (ii) if agreed by the insurer  (which agreement the Borrower shall use commercially reasonable efforts to obtain), shall state that such insurance  policies shall not be canceled without at least 30 days’ prior written notice thereof (or, with respect to non-payment  of premiums, 10 days’ prior written notice) by the respective insurer to the Collateral Agent; provided,  that  the  requirements  of  this  Section  9.03(c)  shall  not  apply  to  (x)  insurance  policies  covering  (1)  directors  and  officers,  fiduciary or other professional liability, (2) employment practices liability, (3) workers compensation liability, (4)  automobile and aviation liability, (5) health, medical, dental and life insurance, and (6) such other insurance policies  and programs as to which a secured lender is not customarily granted an insurable interest therein as the Collateral  Agent may approve; and (y) self-insurance programs.          (d)     If the Borrower or any of its Restricted Subsidiaries shall fail to maintain insurance in accordance  with this Section 9.03, or the Borrower or any of its Restricted Subsidiaries shall fail to so endorse all policies with  respect thereto, after any applicable grace period, the Administrative Agent shall have the right (but shall be under  no  obligation)  to  procure  such  insurance,  and  the  Credit  Parties  jointly  and  severally  agree  to  reimburse  the  Administrative Agent for all reasonable costs and expenses of procuring such insurance.          9.04    Existence; Franchises.  The Borrower will, and will cause each of its Restricted Subsidiaries to, do  or  cause  to be done,  all  things  necessary  to  preserve  and  keep  in  full  force  and  effect  its  existence,  franchises,  licenses and permits in each case to the extent material; provided, however, that nothing in this Section 9.04 shall  prevent (i) sales of assets and other transactions by the Borrower or any of its Restricted Subsidiaries in accordance  with Section 10.02, (ii) the abandonment by the Borrower or any of its Restricted Subsidiaries of any franchises,  licenses or permits that the Borrower reasonably determines are no longer material to the operations of the Borrower  and its Restricted Subsidiaries taken as a whole or (iii) the withdrawal by the Borrower or any of its Restricted  Subsidiaries of its qualification as a foreign corporation, partnership, limited liability company or unlimited liability  company,  as  the  case  may  be,  in  any  jurisdiction  if  such  withdrawal  would  not,  either  individually  or  in  the  aggregate, reasonably be expected to have a Material Adverse Effect.          9.05    Compliance  with  Statutes,  etc.   The  Borrower  will,  and  will  cause  each  of  its  Subsidiaries  to,  comply with all applicable statutes, regulations (including, without limitation, FCPA, OFAC and the PATRIOT Act)  and orders of, and all applicable restrictions imposed by, all governmental bodies, domestic or foreign, in respect of  the conduct of its business and the ownership of its property (including applicable statutes, regulations, orders and  restrictions  relating  to  environmental  standards  and  controls),  except  such  noncompliances  as  would  not,  either  individually  or  in  the  aggregate,  reasonably  be  expected  to  have  a  Material  Adverse  Effect.   The  Borrower  will  maintain in effect and enforce policies and procedures designed to ensure material compliance by the Borrower, its  Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable  Sanctions.          9.06    Compliance with Environmental Laws.          (a)     The Borrower will comply, and will cause each of its Restricted Subsidiaries to comply, with all  Environmental Laws and permits applicable to, or required by, the ownership, lease or use of Real Property now or  hereafter  owned,  leased  or  operated  by  the  Borrower  or  any  of  its  Restricted  Subsidiaries,  except  such  noncompliances  as  would  not,  either  individually  or  in  the  aggregate,  reasonably  be  expected  to  have  a  Material  Adverse Effect, and  will  keep or cause to be kept  all  such Real  Property  free and clear of  any  Liens  imposed  pursuant to such Environmental Laws (other than Liens imposed on leased Real Property resulting from the acts or  omissions of the owner of such leased Real Property or of other tenants of such leased Real Property who are not  within  the  control  of  the  Borrower),  except  such  Liens  as  would  not,  either  individually  or  in  the  aggregate,  reasonably be expected to have a Material Adverse Effect.  Except as have not had, and would not reasonably be  expected  to  have,  a  Material  Adverse  Effect,  neither  the  Borrower  nor  any  of  its  Restricted  Subsidiaries  will                                                  81 

 

  generate,  use,  treat,  store,  Release  or  dispose  of,  or  permit  the  generation,  use,  treatment,  storage,  Release  or  disposal of Hazardous Materials on any Real Property now or hereafter owned, leased or operated by the Borrower  or any of its Restricted Subsidiaries, or transport or permit the transportation of Hazardous Materials to or from any  such Real Property, except for Hazardous Materials generated, used, treated, stored, Released or disposed of at any  such Real Properties or transported to or from such Real Properties in compliance with all applicable Environmental  Laws.          (b)     (i) After the receipt by the Administrative Agent or any Lender of any notice of the type described  in Section 9.01(h) or (ii) at any time that the Borrower or any of its Restricted Subsidiaries are not in compliance  with  Section  9.06(a),  at  the  written  request  of  the  Administrative  Agent,  the  Borrower  will  provide  or  cause  the  applicable  Credit  Party  to  provide  an  environmental  site  assessment  report  concerning  any  Mortgaged  Property  owned, leased or operated by the Borrower or any other Credit Party that is the subject of or could reasonably be  expected  to  be  the  subject  of  such  notice  or  noncompliance,  prepared  by  an  environmental  consulting  firm  reasonably approved by the Administrative Agent, indicating the presence or absence of Hazardous Materials and  the reasonable worst case cost of any removal or remedial action in connection with such Hazardous Materials on  such Mortgaged Property.  If the Credit Parties fail to provide the same within 30 days after such request was made,  the Administrative Agent may order the same, the reasonable cost of which shall be borne (jointly and severally) by  the Borrower and the other Credit Parties.          9.07    ERISA.  Promptly upon a Responsible Officer of the Borrower obtaining knowledge thereof, the  Borrower will deliver to the Administrative Agent a certificate of a Responsible Officer of the Borrower setting  forth the full details as to such occurrence and the action, if any, that the Borrower, any Restricted Subsidiary or an  ERISA Affiliate is required or proposes to take, together with any notices required or proposed to be given or filed  by the Borrower, such Restricted Subsidiary, the Plan administrator or such ERISA Affiliate to or with the PBGC or  any other Governmental Authority, or a Plan participant and any notices received by the Borrower, such Restricted  Subsidiary or such ERISA Affiliate from the PBGC or any other Governmental Authority, or a Plan participant with  respect thereto:  that (a) an ERISA Event has occurred that is reasonably expected to result in a Material Adverse  Effect; (b) there has been an increase in Unfunded Pension Liabilities since the date the representations hereunder  are given, or from any prior notice, as applicable, in either case, which is reasonably expected to result in a Material  Adverse Effect; (c) there has been an increase in the estimated withdrawal liability under Section 4201 of ERISA, if  the  Borrower, any  Restricted Subsidiary  of  the Borrower  and the ERISA  Affiliates  were to  withdraw completely  from any and all Multiemployer Plans which is reasonably expected to result in a Material Adverse Effect, (d) the  Borrower, any Restricted Subsidiary of the Borrower or any ERISA Affiliate adopts, or commences contributions to,  any Plan subject to Section 412 of the Code, or adopts any amendment to a Plan subject to Section 412 of the Code  which is reasonably expected to result in a Material Adverse Effect, (e) that a contribution required to be made with  respect to a Foreign Pension Plan has not been timely made which failure is reasonably likely to result in a Material  Adverse Effect; or (f) that a Foreign Pension Plan has been or is reasonably expected to be terminated, reorganized,  partitioned or declared insolvent and such event is reasonably expected to result in a Material Adverse Effect.  The  Borrower will also deliver to the Administrative Agent, upon request by the Administrative Agent, a complete copy  of the most recent annual report (on Internal Revenue Service Form 5500-series, including, to the extent required,  the related financial and actuarial statements and opinions and other supporting statements, certifications, schedules  and  information)  filed  with  the  Internal  Revenue  Service  or  other  Governmental  Authority  of  each  Plan  that  is  maintained or sponsored by the Borrower or a Restricted Subsidiary.          9.08    End of Fiscal Years; Fiscal Quarters.  The Borrower will cause (i) its, and each of its Restricted  Subsidiaries’ fiscal years to end on or near December 31 of each year; provided, however, that the Borrower may,  upon  written  notice  to  the  Administrative  Agent,  change  its  fiscal  year  (or  the  fiscal  year  of  its  Restricted  Subsidiaries)  to  any  other  fiscal  year  reasonably  acceptable  to  the  Administrative  Agent,  in  which  case,  the  Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any amendments to  this Agreement that are necessary, in the judgment of the Administrative Agent and the Borrower, to reflect such  change in fiscal year, and (ii) each of its, and each of its Restricted Subsidiaries’ fiscal quarters to end on or near  March 31, June 30, September 30 and December 31.          9.09    [Reserved].                                                   82 

 

         9.10    Payment of Taxes.  Except as would not reasonably be expected to result in a Material Adverse  Effect, the Borrower will pay and discharge, and will cause each of its Restricted Subsidiaries to pay and discharge,  all Taxes imposed upon it or upon its income or profits or upon any properties belonging to it, prior to the date on  which penalties attach thereto, and all lawful claims which, if unpaid, might become a Lien or charge upon any  properties  of  the  Borrower  or  any  of  its  Restricted  Subsidiaries  not  otherwise  permitted  under  Section  10.01(i);  provided that neither the Borrower nor any of its Restricted Subsidiaries shall be required to pay any such Tax which  is being contested in good faith and by appropriate proceedings if it has maintained adequate reserves with respect  thereto  in  accordance  with  U.S.  GAAP  (or,  for  Foreign  Subsidiaries,  in  conformity  with  generally  accepted  accounting principles that are applicable in their respective jurisdictions of organization).          9.11    Use  of  Proceeds.  The  Borrower  will  use  the  proceeds  of  the  Term  Loans,  only  as  provided  in  Section 8.08.          9.12    Additional Security; Further Assurances; etc.          (a)     The Borrower will, and will cause each of the Subsidiary Guarantors to, grant to the Collateral  Agent for the benefit of the Secured Creditors security interests and Mortgages in such assets and properties (in the  case of Real Property, limited to Material Real Property) of the Borrower and the Subsidiary Guarantors as are  acquired  after  the  Closing  Date  (other  than  assets  constituting  Excluded  Collateral)  and  as  may  be  reasonably  requested from time to time by the Administrative Agent (collectively, as may be amended, amended and restated,  modified, supplemented, extended or renewed from time to time, the “Additional Security Documents”).  All such  security  interests  and  Mortgages  shall  be  granted  pursuant  to  documentation  consistent  with  any  Security  Documents  entered  into  on  the  Closing  Date  or  otherwise  reasonably  satisfactory  in  form  and  substance  to  the  Administrative Agent and (subject to exceptions as are reasonably acceptable to the Administrative Agent) shall  constitute, upon taking all necessary perfection action (which the Credit Parties agree to take pursuant to clause (e)  below) valid and enforceable perfected security interests and Mortgages (except to the extent that the enforceability  thereof  may  be  limited  by  applicable  bankruptcy,  insolvency,  reorganization,  moratorium  or  other  similar  laws  generally  affecting  creditors’  rights  and  by  equitable  principles  (regardless  of  whether  enforcement  is  sought  in  equity  or  at  law)),  subject  to  the  Intercreditor  Agreement,  any  Additional  Intercreditor  Agreement  and  any  Pari Passu Intercreditor Agreement, superior to and prior to the rights of all third Persons and subject to no other  Liens except for Permitted Liens.  The Additional Security Documents or instruments related thereto shall be duly  recorded or filed in such manner and in such places as are required by law to establish, perfect, preserve and protect  (subject to exceptions as are reasonably acceptable to the Administrative Agent) the Liens in favor of the Collateral  Agent required to be granted pursuant to the Additional Security Documents.  Notwithstanding any other provision  in  this  Agreement  or  any  other  Credit  Document,  no  Excluded  Subsidiary  shall  be  required  to  pledge  any  of  its  assets to secure any obligations of the Borrower under the Credit Documents or guarantee the obligations of the  Borrower under the Credit Documents.          (b)     Subject to the terms of the Intercreditor Agreement, any Additional Intercreditor Agreement and  any Pari Passu Intercreditor Agreement, with respect to any Person that is or becomes a Restricted Subsidiary after  the Closing Date, (i) deliver to the Collateral Agent the certificates, if any, representing all (or such lesser amount as  is  required)  of  the  Equity  Interests  of  such  Subsidiary,  together  with  undated  stock  powers  or  other  appropriate  instruments of transfer executed and delivered in blank by a duly authorized officer of the holder(s) of such Equity  Interests, and all intercompany notes owing from such Subsidiary to any Credit Party together with instruments of  transfer executed and delivered in blank by a duly authorized officer of such  Credit Party (to the extent required  pursuant to the Security Agreement), (ii) cause such new Subsidiary (other than an Excluded Subsidiary) (A) to  execute  a  joinder  agreement  to  the  Subsidiaries  Guaranty  and  a  joinder  agreement  to  each  applicable  Security  Document,  substantially  in  the  form  annexed  thereto,  and  (B)  to  take  all  actions  necessary  or  advisable  in  the  opinion of  the Administrative Agent or the Collateral  Agent  to cause the Lien created by  the applicable  Security  Document  to  be  duly  perfected  to  the  extent  required  by  such  agreement  in  accordance  with  all  applicable  Requirements  of  Law,  including  the  filing  of  financing  statements  in  such  jurisdictions  as  may  be  reasonably  requested by the Administrative Agent or the Collateral Agent and (iii) solely in the case of any Foreign Subsidiary,  at the request of the Administrative Agent, deliver or cause to be delivered to the Administrative Agent an opinion,  addressed to the Administrative Agent and the other Lenders, of counsel reasonably acceptable to the Administrative  Agent as to such matters set forth in this Section 9.12(b) as the Administrative Agent may reasonably request.                                                   83 

 

         (c)     The Borrower will, and will cause each of the other Credit Parties that are Restricted Subsidiaries  of the Borrower to, at the expense of the Borrower, make, execute, endorse, acknowledge, file and/or deliver to the  Collateral  Agent,  promptly,  upon  the  reasonable  request  of  the  Administrative  Agent  or  the  Collateral  Agent,  at  Borrower’s expense, any document or instrument supplemental to or confirmatory of the Security Documents to the  extent deemed by the Administrative Agent or the Collateral Agent reasonably necessary for the continued validity,  perfection and priority of the Liens on the Collateral covered thereby subject to no other Liens except for Permitted  Liens or as otherwise permitted by the applicable Security Document.          (d)     If the Administrative Agent reasonably determines that it  or the Lenders are required by law or  regulation to have appraisals prepared in respect of any Mortgaged Property, the Borrower will, at its own expense,  provide  to  the  Administrative  Agent  appraisals  which  satisfy  the  applicable  requirements  of  the  Real  Estate  Appraisal  Reform  Amendments of the  Financial Institution Reform,  Recovery and Enforcement  Act of 1989, as  amended.          (e)     The Borrower agrees that each action required by clauses (a) through (d) of this Section 9.12 shall  be completed  in no  event  later than 90 days after such  action  is  required to  be taken  pursuant  to  such  clauses or  requested  to  be  taken  by  the  Administrative  Agent  or  the  Required  Lenders  (or  (x)  with  respect  to  any  required  Mortgages, such later date on which the Borrower has received confirmation from the Administrative Agent that (A)  flood insurance due diligence has been completed in a manner reasonably satisfactory to the Administrative Agent  and all Lenders (including, for the avoidance of doubt, delivery by the Borrower to the Administrative Agent of a  completed  “Life-of-Loan”  FEMA  standard  flood  hazard  determination  and,  if  such  applicable  Real  Property  is  located in an area identified by the Federal Emergency Management Agency (or any successor agency) as a special  flood  hazard  area,  a  notice  about  special  flood  hazard  area  status  and  flood  disaster  assistance  executed  by  the  Borrower and any Credit Party relating thereto) and (B) it is reasonably satisfied that flood insurance complies with  Section 9.03 hereto and (y) in each case, such longer period as the Administrative Agent shall otherwise agree,  including  with  respect  to  any  Real  Property  acquired  after  the  Closing  Date  that  the  Borrower  has  notified  the  Administrative Agent that it intends to dispose of pursuant to a disposition permitted by Section 10.02), as the case  may be; provided that, in no event will the Borrower or any of its Restricted Subsidiaries be required to take any  action to obtain consents from third parties with respect to its compliance with this Section 9.12.          9.13    Post-Closing  Date  Actions.   The  Borrower  agrees  that  it  will,  or  will  cause  its  relevant  Subsidiaries to, complete each of the actions described on Schedule 9.13 as soon as commercially reasonable and by  no later than the date set forth in Schedule 9.13 with respect to such action or such later date as the Administrative  Agent may reasonably agree.          9.14    Permitted Acquisitions.          (a)     Subject to the provisions of this Section 9.14 and the requirements contained in the definition of  Permitted Acquisition, the Borrower and its Restricted Subsidiaries may from time to time after the Closing Date  effect  Permitted  Acquisitions,  so  long  as  (in  each  case  except  to  the  extent  the  Required  Lenders  otherwise  specifically agree in writing in the case of a specific Permitted Acquisition) no Event of Default shall have occurred  and be continuing at the time of the consummation of the proposed Permitted  Acquisition or immediately after  giving effect thereto.          (b)     With  respect  to  any  Permitted  Acquisition  involving  the  creation  or  acquisition  of  a  Restricted  Subsidiary, or the acquisition of Equity Interests of any Person, the Equity Interests thereof created or acquired in  connection with such Permitted Acquisition (other than any such Equity Interests constituting Excluded Collateral)  shall be pledged for the benefit of the Secured Creditors pursuant to (and to the extent required by) the Security  Agreement.          (c)     Each Borrower shall cause each Restricted Subsidiary (other than an Excluded Subsidiary) which  is formed to effect, or is acquired pursuant to, a Permitted Acquisition to comply with, and to execute and deliver all  of the documentation as and to the extent (and within the time periods) required by, Section 9.12, to the reasonable  satisfaction of the Administrative Agent.                                                   84 

 

         9.15    Credit Ratings.  The Borrower shall use commercially reasonable efforts to obtain and maintain  (but not  maintain  any specific rating) (a) a corporate family  and/or corporate  credit  rating,  as applicable,  and (b)  public ratings in respect of the Term Loans provided pursuant to this Agreement, from, in each case, at least two of  S&P, Moody’s and Fitch.          9.16    Designation  of  Subsidiaries.   The  Borrower  may  at  any  time  and  from  time  to  time  after  the  Closing Date designate any Restricted Subsidiary of the Borrower as an Unrestricted Subsidiary or any Unrestricted  Subsidiary as a Restricted Subsidiary by written notice to the Administrative Agent; provided that (i) immediately  before and after such designation, no Event of Default shall have occurred and be continuing, (ii) in the case of the  designation of any Subsidiary as an Unrestricted Subsidiary, such designation shall constitute an Investment in such  Unrestricted Subsidiary (calculated as an amount equal to the sum of (x) the fair market value of the Subsidiary  designated  immediately  prior  to  such  designation  (such  fair  market  value  to  be  calculated  without  regard  to  any  Obligations  of  such  Subsidiary  under  the  Subsidiaries  Guaranty)  and  (y)  the  aggregate  principal  amount  of  any  Indebtedness owed by such Subsidiary to the Borrower or any of its Restricted Subsidiaries immediately prior to  such designation, all calculated, except as set forth in the parenthetical to clause (x) above, on a consolidated basis in  accordance with U.S. GAAP), and such Investment shall be permitted under Section 10.05, (iii) no Subsidiary may  be designated as an Unrestricted Subsidiary if it is a “Restricted Subsidiary” for the purpose of (I) the ABL Credit  Agreement or (II) any Refinancing Notes Indenture, any Permitted Pari Passu Notes Document, any Permitted Pari  Passu Loan Document, any Permitted Junior Notes Document or other debt instrument, in each case of this clause  (II), with a principal amount in excess of the Threshold Amount, (iv) following the designation of an Unrestricted  Subsidiary as a Restricted Subsidiary, the Borrower shall comply with the provisions of Section 9.12 with respect to  such  designated  Restricted  Subsidiary,  (v)  no  Restricted  Subsidiary  may  be  a  Subsidiary  of  an  Unrestricted  Subsidiary (and any Subsidiary of an Unrestricted Subsidiary that is acquired or formed after the date of designation  shall  automatically  be  designated  as  an  Unrestricted  Subsidiary)  and  (vi)  in  the  case  of  the  designation  of  any  Subsidiary as an Unrestricted Subsidiary, each of (i) the Subsidiary to be so designated and (ii) its Subsidiaries has  not, at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become  directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the  assets of the Borrower or any Restricted Subsidiary (other than Equity Interests in an Unrestricted Subsidiary).  The  designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute (i) the incurrence at the time of  designation of any Investment, Indebtedness or Liens of such Subsidiary existing at such time and (ii) a return on  any Investment by the Borrower in Unrestricted Subsidiaries pursuant to the preceding sentence in an amount equal  to the fair market value at the date of such designation of the Borrower’s Investment in such Subsidiary.          Section 10. Negative Covenants.  The Borrower and each of its Restricted Subsidiaries (and Holdings in  the case of Section 10.09(b)) hereby covenant and agree that on and after the Closing Date and until the Term Loans  (together with interest thereon), Fees and all other Obligations (other than any indemnification obligations arising  hereunder which are not then due and payable and obligations in respect of Interest Rate Protection Agreements,  Other Hedging Agreements or Treasury Services Agreements) incurred hereunder and thereunder, are paid in full:          10.01   Liens.  The Borrower  will  not, and  will not  permit  any of its Restricted  Subsidiaries  to, create,  incur, assume or suffer to exist any Lien upon or with respect to any property or assets (real or personal, tangible or  intangible) of the Borrower or any of its Restricted Subsidiaries, whether now owned or hereafter acquired; provided  that the provisions of this Section 10.01 shall not prevent the creation, incurrence, assumption or existence of, or any  filing in respect of, the following (Liens described below are herein referred to as “Permitted Liens”):                   (i)   Liens  for Taxes, assessments or governmental charges or levies not yet overdue for 30         days  or  not  yet  due  and  payable  or  Liens  for  Taxes  being  contested  in  good  faith  and  by  appropriate         proceedings  for  which  adequate  reserves  have  been  established  in  accordance  with  U.S.  GAAP  (or,  for         Foreign  Subsidiaries,  in  conformity  with  generally  accepted  accounting  principles  that  are  applicable  in         their respective jurisdictions of organization);                  (ii)   Liens in respect of property or assets of the Borrower or any of its Restricted Subsidiaries         imposed by law, which were incurred in the ordinary course of business and do not secure Indebtedness for         borrowed  money,  such  as  carriers’,  warehousemen’s,  contractors’,  materialmen’s,  repairer’s  and         mechanics’ liens and other similar Liens arising in the ordinary course of business, and (i) which are being         contested in  good faith by  appropriate proceedings,  which  proceedings have the effect  of  preventing  the                                                  85 

 

                  forfeiture or sale of the property or assets, subject to any such Lien for which adequate reserves have been  established  in  accordance  with  U.S.  GAAP  (or,  for  Foreign  Subsidiaries,  in  conformity  with  generally  accepted accounting principles that are applicable in their respective jurisdictions of organization) or (ii) in  respect of which no obligations are past due;          (iii)   Liens  (x)  in  existence  on  the  Closing  Date  which  are  listed,  and  the  property  subject  thereto described, in Schedule 10.01(iii) (or to the extent not listed on such Schedule 10.01(iii), where the  principal amount of obligations secured by such Liens is less than $30,000,000 in the aggregate) and (y)  Liens  securing  Permitted  Refinancing  Indebtedness  in  respect  of  any  Indebtedness  secured  by  the  Liens  referred to in clause (x);           (iv)   (x) Liens created pursuant to the Credit Documents and (y) Liens securing Obligations  (as defined in the ABL Credit Agreement) under the ABL Credit  Agreement  and the  credit documents  related  thereto  and  incurred  pursuant  to  Section  10.04(i)(y)  and,  including  any  Interest  Rate  Protection  Agreements, Other Hedging Agreements and Treasury Services Agreements that are guaranteed or secured  by  the  guarantees  and  security  interests  thereunder; provided,  in  the  case  of  this  clause  (y),  that  the  collateral agent under the ABL Credit Agreement shall have entered into the Intercreditor Agreement;           (v)    leases, subleases, licenses or sublicenses (including licenses or sublicenses of software,  technology  and  other  Intellectual  Property)  granted  to  other  Persons  not  materially  interfering  with  the  conduct of the business of the Borrower or any of its Restricted Subsidiaries;           (vi)   Liens  (x)  upon  assets  of  the  Borrower  or  any  of  its  Restricted  Subsidiaries  securing  Indebtedness permitted by Section 10.04(iii); provided that such Liens do not encumber any asset of the  Borrower or any of its Restricted Subsidiaries other than the assets acquired with such Indebtedness and  after-acquired property that is affixed or incorporated into such assets and proceeds and products thereof;  provided  that  individual  financings  of  equipment  provided  by  one  lender  may  be  cross  collateralized  to  other  financings  of  equipment  provided  by  such  lender  on  customary  terms  and  (y)  Liens  securing  Permitted  Refinancing  Indebtedness  in  respect  of  any  Indebtedness  secured  by  the  Liens  referred  to  in  clause (x);          (vii)   [reserved];         (viii)   easements, rights-of-way, restrictions (including zoning and other land use restrictions),  covenants, conditions, licenses, encroachments, protrusions and other similar charges or encumbrances and  title deficiencies, which in the aggregate do not materially interfere with the conduct of the business of the  Borrower or any of its Restricted Subsidiaries;           (ix)   Liens  arising  from  precautionary  UCC  or  other  similar  financing  statement  filings  regarding  operating  leases  or  consignments  entered  into  in  the  ordinary  course  of  business  and  Liens  provided  for  by  any  transfer  of  an  account  permitted  under  the  Credit  Documents  or  a  commercial  consignment which do not secure payment or performance of an obligation;           (x)    attachment and judgment Liens, to the extent and for so long as the underlying judgments  and decrees do not constitute an Event of Default pursuant to Section 11.09 and notices of lis pendens and  associated  rights  related  to  litigation  being  contested  in  good  faith  by  appropriate  proceedings  and  for  which adequate reserves have been made;           (xi)   statutory,  common  law  and  contractual  landlords’  liens  under  leases  to  which  the  Borrower or any of its Restricted Subsidiaries is a party;          (xii)   Liens (other than Liens imposed under ERISA or any pension standards legislation of any  other  applicable  jurisdiction)  incurred  in  the  ordinary  course  of  business  in  connection  with  workers’  compensation  claims,  unemployment  insurance,  employee  source  deductions,  wages,  vacation  pay,  statutory pension plans and social security benefits and Liens securing the performance of bids, tenders,                                            86 

 

                  leases and contracts in the ordinary course of business, statutory obligations, surety, stay, customs or appeal  bonds, performance bonds and other obligations of a like nature (including (i) those to secure health, safety  and environmental obligations and (ii) those required or requested by any Governmental Authority other  than letters of credit) incurred in the ordinary course of business;         (xiii)   Permitted Encumbrances;         (xiv)    (A)  Liens  on  property  or  assets  acquired  pursuant  to  a  Permitted  Acquisition,  or  on  property  or  assets  of  a  Restricted  Subsidiary  of  the  Borrower  in  existence  at  the  time  such  Restricted  Subsidiary  is  acquired  pursuant  to  a  Permitted  Acquisition;  provided  that  (x)  any  Indebtedness  that  is  secured  by  such  Liens  is  permitted  to  exist  under  Section  10.04,  and  (y)  such  Liens  are  not  incurred  in  connection with, or in contemplation or anticipation of, such Permitted Acquisition and do not attach to any  other  asset  of  the  Borrower  or  any  of  its  Restricted  Subsidiaries  and  (B)  Liens  securing  Permitted  Refinancing Indebtedness in respect of any Indebtedness secured by the Liens referred to in clause (A);          (xv)    deposits  or  pledges  to  secure  bids,  tenders,  contracts  (other  than  contracts  for  the  repayment of borrowed money), leases, statutory obligations, surety, stay, customs and appeal bonds and  other obligations of like nature (including (i) those to secure health, safety and environmental obligations  and  (ii)  those  required  or  requested  by  any  Governmental  Authority  other  than  letters  of  credit),  and  as  security for the payment of rent, in each case arising in the ordinary course of business;         (xvi)    Liens  on  assets  of  non-Credit  Parties  securing  Indebtedness  of  non-Credit  Parties  permitted pursuant to Section 10.04(viii);         (xvii)   any  interest  or  title  of,  and  any  Liens  created  by,  a  lessor,  lessee,  sublessor,  licensee,  sublicensee, licensor or sublicensor under any lease, sublease, license or sublicense agreement (including  software and other technology licenses) in the ordinary course of business;        (xviii)   Liens  on  property  subject  to  Sale-Leaseback  Transactions  to  the  extent  such  Sale- Leaseback Transactions are permitted by Section 10.02(xii);         (xix)    any encumbrances or restrictions (including, without limitation, put and call agreements)  with respect to the Equity Interests of any joint venture or similar arrangement permitted by the terms of  this Agreement arising pursuant to the agreement evidencing such joint venture or similar arrangement;          (xx)    Liens  in  favor  of  the  Borrower  or  any  Restricted  Subsidiary  securing  intercompany  Indebtedness permitted by Section 10.05; provided that any Liens securing Indebtedness that are required  to  be  subordinated  pursuant  to  Section  10.05  shall  be  subordinated  to  the  Liens  created  pursuant  to  the  Security Documents;         (xxi)    Liens on specific items of inventory or other goods (and proceeds thereof) of any Person  securing such Person’s obligations in respect of bankers’ acceptances or letters of credit issued or created  for the  account of such  Person  to facilitate  the purchase, shipment  or storage of such  inventory  or  other  goods, and pledges or deposits in the ordinary course of business;         (xxii)   Liens on insurance policies and the proceeds thereof (whether accrued or not) and rights  or claims against an insurer, in each case securing insurance premium financings permitted under Section  10.04(x);        (xxiii)   Liens that may arise on inventory or equipment of the Borrower or any of its Restricted  Subsidiaries in the ordinary course of business as a result of such inventory or equipment being located on  premises owned by Persons other than the Borrower and its Restricted Subsidiaries (including Liens arising  out  of  conditional  sale,  title  retention  (including  extended  retention  of  title),  consignment  or  similar  arrangements for the sale of goods);                                            87 

 

                       (xxiv)    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 in the ordinary course of business;         (xxv)    Liens  (i)  of  a  collection  bank  arising  under  Section  4-210  of  the  UCC  (or  similar  provisions of other applicable laws) on items in the course of collection, (ii) attaching to commodity trading  accounts or other commodities brokerage accounts incurred in the ordinary course of business and (iii) in  favor of a banking or other financial institution arising as a matter of law or under customary general terms  and  conditions  encumbering  deposits  (including  the  right  of  set-off)  and  which  are  within  the  general  parameters customary in the banking industry;        (xxvi)    Liens  deemed  to  exist  in  connection  with  Investments  in  repurchase  agreements  permitted under Section 10.05(ii); provided that such Liens do not extend to any assets other than those that  are the subject of such repurchase agreement;        (xxvii)   Liens that are contractual rights of set-off (i) relating to the establishment of depository  relations with banks or other financial institutions not given in connection with the incurrence or issuance  of  Indebtedness,  (ii)  relating  to  pooled  deposit  or  sweep  accounts  of  the  Borrower  or  any  Restricted  Subsidiary  to  permit  satisfaction  of  overdraft  or  similar  obligations  incurred  in  the  ordinary  course  of  business  of  the  Borrower  or  any  Restricted  Subsidiary  or  (iii)  relating  to  purchase  orders  and  other  agreements entered into with customers of the Borrower or any of its Restricted Subsidiaries in the ordinary  course of business;       (xxviii)   Liens  attaching  solely  to  cash  earnest  money  deposits  in  connection  with  any  letter  of  intent  or  purchase  agreement  in  connection  with  a  Permitted  Acquisition  or  other  Investment  permitted  hereunder;        (xxix)    other Liens to the extent securing liabilities with a principal amount not in excess of the  greater  of  $250,000,000  and  45.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries for the most recently ended Test Period (measured at the time of incurrence) in the aggregate  at any time outstanding;         (xxx)    Liens on Collateral securing obligations in respect of Indebtedness permitted by Section  10.04(xxvii);        (xxxi)    cash deposits with respect to any Refinancing Notes, any Permitted Pari Passu Notes, any  Permitted Pari Passu Loans or any Permitted Junior Debt or any other Indebtedness, in each case to the  extent permitted by Section 10.07;        (xxxii)   Liens  on  accounts  receivable  sold  in  connection  with  the  sale  or  discount  of  accounts  receivable permitted by Section 10.02(iv);       (xxxiii)   Liens arising out of conditional sale, title retention, consignment or similar arrangements  for  sale  of  goods  entered  into  by  the  Borrower  or  any  Restricted  Subsidiary  in  the  ordinary  course  of  business;       (xxxiv)    Liens encumbering reasonable customary initial deposits and margin deposits and similar  Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course  of business and not for speculative purposes;        (xxxv)    (i)  zoning,  building,  entitlement  and  other  land  use  regulations  by  Governmental  Authorities  with  which  the  normal  operation  of  the  business  of  the  Borrower  and  the  Restricted  Subsidiaries complies, and (ii) any zoning or similar law or right reserved to or vested in any Governmental  Authority to control or regulate the use of any real  property that does not  materially interfere  with  the  ordinary conduct of the business of the Borrower or any Restricted Subsidiary;                                            88 

 

             (xxxvi)    deposits made in the ordinary course of business to secure liability to insurance carriers         or under self-insurance arrangements in respect of such obligations;              (xxxvii)   receipt  of  progress  payments  and  advances  from  customers  in  the  ordinary  course  of         business to the extent the same creates a Lien on the related inventory and proceeds thereof;             (xxxviii)   so long as no Event of Default has occurred and is continuing at the time of granting such         Liens, Liens on cash deposits in an aggregate amount not to exceed the greater of $45,000,000 and 8.5% of         Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries  for  the  most  recently  ended  Test         Period securing any Interest Rate Protection Agreement or Other Hedging Agreement permitted hereunder;               (xxxix)    [reserved];                   (xl)   customary Liens granted in favor of a trustee to secure fees and other amounts owing to         such trustee under an indenture or other agreement pursuant to which Indebtedness not prohibited by the         indenture is issued (including the indenture under which the notes are to be issued);                 (xli)    leases  and subleases  of real  property that  do  not  materially  interfere  with  the ordinary         conduct of the business of the Borrower or any of its Restricted Subsidiaries;                 (xlii)   Liens on cash or Cash Equivalents (and the related escrow accounts) in connection with         the  issuance  into  (and  pending  the  release  from)  escrow  of any  Refinancing  Notes,  any  Permitted  Pari         Passu Notes, any Permitted Pari Passu Loans or any Permitted Junior Debt;                 (xliii)  Liens  on  property  or  assets  used  to  redeem,  repay,  defease  or  satisfy  and  discharge         Indebtedness; provided that such redemption, repayment, defeasance or satisfaction and discharge is not         prohibited by this Agreement and that such deposit shall be deemed for purposes of Section 10.07 (to the         extent applicable) to be a prepayment of such Indebtedness; and                 (xliv)   other ordinary course Liens or Liens consistent with past practice, in each case, incidental         to  the  conduct  of  the  Borrower’s  and  its  Restricted  Subsidiaries’  businesses  or  the  ownership  of  its         property, not securing any Indebtedness of the Borrower or a Restricted Subsidiary, and which do not in the         aggregate  materially  detract  from  the  value  of  the  Borrower’s  and  its  Restricted  Subsidiaries’  property         when taken as a whole, or materially impair the use thereof in the operation of its business.   In connection with the granting of Liens of the type described in this Section 10.01 by the Borrower or any of its  Restricted Subsidiaries, the Administrative Agent and the Collateral Agent shall be authorized to take any actions  deemed  appropriate  by  it  in  connection  therewith  (including,  without  limitation,  by  executing  appropriate  lien  releases or lien subordination agreements in favor of the holder or holders of such Liens, in either case solely with  respect to the item or items of equipment or other assets subject to such Liens).          10.02   Consolidation, Merger, or Sale of Assets, etc.  The Borrower will not, and will not permit any of  its Restricted Subsidiaries to, wind up, liquidate or dissolve its affairs or enter into any partnership, joint venture, or  transaction of merger or consolidation, or convey, sell, lease or otherwise dispose of all or any part of its property or  assets, or enter into any Sale-Leaseback Transaction, except that:                   (i)   any Investment permitted by Section 10.05 may be structured as a merger, consolidation         or amalgamation;                  (ii)   the Borrower and its Restricted Subsidiaries may sell assets (including Equity Interests),         so long as (x) the Borrower or the respective Restricted Subsidiary receives at least fair market value (as         determined in good faith by the Borrower or such Restricted Subsidiary, as the case may be) and (y) in the         case of any single transaction that involves assets or Equity Interests having a fair market value of more         than  the  greater  of  $30,000,000  and  6.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted         Subsidiaries  for  the  most  recently  ended  Test  Period,  at  least  75%  of  the  consideration  received  by  the                                                   89 

 

                  Borrower or such  Restricted Subsidiary shall be in the form of cash, Cash Equivalents  or, subject to the  proviso  below,  Designated  Non-cash  Consideration  (taking  into  account  the  amount  of  cash  and  Cash  Equivalents, the principal amount of any promissory notes and the fair market value, as determined by the  Borrower  or  such  Restricted  Subsidiary,  as  the  case  may  be,  in  good  faith,  of  any  other  consideration  (including  Designated  Non-cash  Consideration))  and  is  paid  at  the  time  of  the  closing  of  such  sale;  provided, however, that for purposes of this clause (y), the following shall be deemed to be cash:  (A) any  liabilities (as shown on such Borrower’s or such Restricted Subsidiary’s most recent balance sheet provided  hereunder or in the footnotes thereto) of such Borrower or such Restricted Subsidiary (other than liabilities  that are by their terms subordinated to the Obligations) that are assumed by the transferee with respect to  the  applicable  disposition  and  for  which  the  Borrower  and  the  Restricted  Subsidiaries  shall  have  been  validly released by all applicable creditors in writing, (B) any securities, notes, other obligations or assets  received by such Borrower or such Restricted Subsidiary from such transferee that are convertible by such  Borrower or such Restricted Subsidiary into cash or Cash Equivalents (to the extent of the cash or Cash  Equivalents received in the conversion) within 180 days following the closing of the applicable asset sale,  (C)  consideration  consisting  of  Indebtedness  of  the  Borrower  or  such  Restricted  Subsidiary  that  is  not  Subordinated Indebtedness received from such transferee, (D) accounts receivable of a business retained by  the Borrower or any of its Restricted Subsidiaries, as the case may be, following the sale of such business;  provided  that  such  accounts  receivable  (1)  are  not  past  due  more  than  90  days  and  (2)  do  not  have  a  payment date greater than 120 days from the date of the invoices creating such accounts receivable and (E)  any Designated Non-cash Consideration received by the Borrower or any of its Restricted Subsidiaries in  such asset sale having an aggregate fair market value, taken together with all other Designated Non-cash  Consideration received pursuant to this clause (y) that is at that time outstanding, not to exceed the greater  of  (1)  $150,000,000  and  (2)  30.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries  for  the  most  recently  ended  Test  Period  (measured  at  the  time  of  the  receipt  of  such  Designated  Non-cash  Consideration)  (with  the  fair  market  value  of  each  item  of  Designated  Non-cash  Consideration  being  measured  at  the  time  received  and  without  giving  effect  to  subsequent  changes  in  value);          (iii)   each of the Borrower and its Restricted Subsidiaries may lease (as lessee) or license (as  licensee) real or personal property (so long as any such lease or license does not create a Capitalized Lease  Obligation except to the extent permitted by Section 10.04(iii));           (iv)   each of the Borrower and its Restricted Subsidiaries may sell or discount, in each case in  the ordinary course of business, accounts receivable arising in the ordinary course of business, but only in  connection with the compromise or collection thereof and not as part of any financing transaction;           (v)    each  of  the  Borrower  and  its  Restricted  Subsidiaries  may  grant  licenses,  sublicenses,  leases  or  subleases  to  other  Persons  not  materially  interfering  with  the  conduct  of  the  business  of  the  Borrower or any of its Restricted Subsidiaries, taken as a whole, including of Intellectual Property;           (vi)   (w) any Domestic Subsidiary of the Borrower may be merged, consolidated, dissolved,  amalgamated  or  liquidated  with  or  into  the  Borrower  (so  long  as  the  surviving  Person  of  such  merger,  consolidation,  dissolution,  amalgamation  or  liquidation  is  a  corporation,  limited  liability  company  or  limited partnership organized or existing under the laws of the United States of America, any state thereof  or  the  District  of  Columbia  and,  if  such  surviving  Person  is  not  the  Borrower,  such  Person  expressly  assumes,  in  writing,  all  the  obligations  of  the  Borrower  under  the  Credit  Documents  pursuant  to  an  assumption agreement in form and substance reasonably satisfactory to the Administrative Agent) or any  Subsidiary  Guarantor  (so  long  as  the  surviving  Person  of  such  merger,  consolidation,  dissolution,  amalgamation or liquidation is a Wholly-Owned  Domestic Subsidiary  of  the Borrower, is a  corporation,  limited  liability  company  or  limited  partnership  and  is  or  becomes  a  Subsidiary  Guarantor  concurrently  with such  merger, consolidation or liquidation), (x) any Excluded Subsidiary (other than an Unrestricted  Subsidiary) of the Borrower may be merged, consolidated, dissolved, amalgamated or liquidated  with or  into any  other Excluded  Subsidiary  (other than  an  Unrestricted Subsidiary) of  the Borrower and (y) any  Excluded Subsidiary (other than an Unrestricted Subsidiary) of the Borrower may be merged, consolidated,  dissolved,  amalgamated  or  liquidated  with  or  into  any  Credit  Party  (so  long  as  such  Credit  Party  is  the  surviving  corporation  of  such  merger,  consolidation,  dissolution,  amalgamation  or  liquidation); provided                                           90 

 

                  that  any  such  merger,  consolidation,  dissolution,  amalgamation  or  liquidation  shall  only  be  permitted  pursuant to this clause (vi), so long as (I) no Event of Default then exists or would exist immediately after  giving effect thereto and (II) any security interests granted to the Collateral Agent for the benefit of the  Secured Creditors in the assets (and Equity Interests) of any such Person subject to any  such transaction  shall not be impaired in any material respect as a result of such merger, consolidation, amalgamation or  liquidation;          (vii)   [reserved];         (viii)   each of the Borrower and its Restricted Subsidiaries  may  make sales or leases of (A)  inventory in the ordinary course of business, (B) goods held for sale in the ordinary course of business and  (C) immaterial assets with a fair market value, in the case of this clause (C), of less than the greater of  $25,000,000  and  5.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries  for  the  most recently ended Test Period (measured at the time of such sale or lease, as applicable);             (ix)   each of the Borrower and its Restricted Subsidiaries may sell or otherwise dispose of (i)  outdated, obsolete, surplus or worn out property, in each case, in the ordinary course of business and (ii)  property  no  longer  used  or  useful  in  the  conduct  of  the  business  of  the  Borrower  and  its  Restricted  Subsidiaries;           (x)    each of the Borrower and its Restricted Subsidiaries  may sell or otherwise dispose of  assets acquired pursuant to a Permitted Acquisition so long as (x) such assets are not used or useful to the  core or principal business of the Borrower and its Restricted Subsidiaries, (y) such assets have a fair market  value  not  in  excess  of  the  greater  of  (A)  $50,000,000  and  (B)  10.0%  of  Consolidated  EBITDA  of  the  Borrower and its Restricted Subsidiaries for the most recently ended Test Period (measured at the time of  disposition  thereof),  and  (z)  such  assets  are  sold,  transferred  or  disposed  of  on  or  prior  to  the  first  anniversary of the relevant Permitted Acquisition;            (xi)   in order to effect a sale, transfer or disposition otherwise permitted by this Section 10.02,  a Restricted Subsidiary of the Borrower may be merged, amalgamated or consolidated with or into another  Person, or may be dissolved or liquidated;          (xii)   each  of  the  Borrower  and  its  Restricted  Subsidiaries  may  effect  Sale-Leaseback  Transactions (a) involving real property acquired after the Closing Date and not more than 180 days prior  to such Sale-Leaseback Transaction for cash and fair market value (as determined by the Borrower) or (b)  with  respect  to  any  other  Sale-Leaseback  Transactions  not  described  in  subclause  (xii)(a),  having  an  aggregate fair market value not in excess of the greater of $25,000,000 and 5.0% of Consolidated EBITDA  of the Borrower and its Restricted Subsidiaries for the most recently ended Test Period (measured at the  time of such Sale-Leaseback Transaction);         (xiii)   [reserved];          (xiv)    each of the Borrower and its Restricted Subsidiaries may issue or sell Equity Interests in,  or Indebtedness or other securities of, an Unrestricted Subsidiary;          (xv)    each  of  the  Borrower  and  its  Restricted  Subsidiaries  may  make  transfers  of  property  subject to casualty or condemnation proceedings upon the occurrence of the related Recovery Event;         (xvi)    each  of  the  Borrower  and  its  Restricted  Subsidiaries  may  abandon,  allow  to  lapse  or  expire or otherwise become invalid Intellectual Property rights in the ordinary course of business, in the  exercise of its reasonable good faith judgment;         (xvii)   each of the Borrower and its Restricted Subsidiaries may make voluntary terminations of  or  unwind  Interest  Rate  Protection  Agreements,  Other  Hedging  Agreements  and  Treasury  Services  Agreements;                                            91 

 

              (xviii)   each  of  the  Borrower  and  its  Restricted  Subsidiaries  may  make  dispositions  resulting         from foreclosures by third parties on properties of the Borrower or any of its Restricted Subsidiaries and         acquisitions  by  the  Borrower  or  any  of  its  Restricted  Subsidiaries  resulting  from  foreclosures  by  such         Persons or properties of third parties;                (xix)    each of the Borrower and its Restricted Subsidiaries may terminate leases and subleases;                 (xx)    each of the Borrower and its Restricted Subsidiaries may use cash and Cash Equivalents         (or other assets that were Cash Equivalents when the relevant Investment was made) to make payments that         are not otherwise prohibited by this Agreement;                (xxi)    each  of  the  Borrower  or  its  Restricted  Subsidiaries  may  sell  or  otherwise  dispose  of         property to the extent that (i) such property is exchanged for credit against the purchase price of similar         replacement property or (ii) the proceeds of such sale or disposition are promptly applied to the purchase         price of such replacement property;                (xxii)   sales,  dispositions  or  contributions  of  property  (A)  between  Credit  Parties  (other  than         Holdings), (B) between Restricted Subsidiaries (other than Credit Parties), (C) by Restricted Subsidiaries         that  are  not  Credit  Parties  to  the  Credit  Parties  (other  than  Holdings)  or  (D)  by  Credit  Parties  to  any         Restricted Subsidiary that is not a Credit Party; provided with respect to clause (D) that (1) the portion (if         any) of any such sale, disposition or contribution of property made for less than fair market value and (2)         any noncash consideration received in exchange for any such sale, disposition or contribution of property,         shall in each case constitute an Investment in such Restricted Subsidiary subject to Section 10.05;               (xxiii)   dispositions  of  Investments  (including  Equity  Interests)  in  joint  ventures  to  the  extent         required  by,  or  made  pursuant  to  customary  buy/sell  arrangements  between,  the  joint  venture  parties  set         forth in joint venture arrangements and similar binding arrangements;               (xxiv)    transfers of condemned property as a result of the exercise of “eminent domain” (or the         equivalent under other applicable law) or other similar powers to the respective Governmental Authority or         agency that has condemned the same (whether by deed in lieu of condemnation or otherwise), and transfers         of property that have been subject to a casualty to the respective insurer of such real property as part of an         insurance  settlement; provided  that  the  proceeds  of  such  dispositions  are  applied  in  accordance  with         Section 5.02(f);                (xxv)    any  disposition  of  any  asset  between  or  among  the  Restricted  Subsidiaries  as  a         substantially concurrent interim disposition in connection with a disposition otherwise permitted pursuant         to this Section 10.02;                (xxvi)    dispositions permitted by Section 10.03; and               (xxvii)   dispositions or other transactions undertaken in good faith for Tax planning purposes, so         long as after giving effect to such dispositions or other transactions, the security interest of the Collateral         Agent in the Collateral for the benefit of the Secured Creditors is not materially impaired.   To the extent the Required Lenders (or such other percentage of the Lenders as may be required by this Section  10.02) waive the provisions of this Section 10.02 with respect to the sale of any Collateral, or any Collateral is sold  as permitted by this Section 10.02 (other than to the Borrower or a Subsidiary Guarantor), such Collateral shall be  sold free and clear of the Liens created by the Security Documents, and the Administrative Agent and the Collateral  Agent shall be authorized to take any actions deemed appropriate by them in order to effect the foregoing.                                                   92 

 

         10.03   Dividends.   The  Borrower  will  not,  and  will  not  permit  any  of  its  Restricted  Subsidiaries  to,  authorize, declare or pay any Dividends with respect to the Borrower or any of its Restricted Subsidiaries on or after  the Closing Date, except that:                   (i)   any Restricted Subsidiary of the Borrower may authorize, declare and pay Dividends or         return capital or make distributions and other similar payments with regard to its Equity Interests to the         Borrower  or  to  other  Restricted  Subsidiaries  of  the  Borrower  which  directly  or  indirectly  own  equity         therein;                  (ii)   any non-Wholly-Owned Subsidiary of the Borrower may declare and pay cash Dividends         to its shareholders generally so long as the Borrower or its Restricted Subsidiary which owns the Equity         Interests in the Subsidiary paying such Dividends receives  at  least  its proportionate  share thereof (based         upon its relative holding of the Equity Interests in the Subsidiary paying such Dividends and taking into         account the relative preferences, if any, of the various classes of Equity Interests of such Subsidiary);                 (iii)   so long as no Event of Default exists at the time of the applicable Dividend, redemption         or repurchase or would exist immediately after giving effect thereto, the Borrower may pay cash Dividends         to  Holdings  to  allow  Holdings  to  pay  cash  dividends  or  make  cash  distributions  to  any  other  Parent         Company  to  redeem  or  repurchase,  contemporaneously  with  such  Dividend,  Equity  Interests  of  such         Holdings  or  such  other  Parent  Company  from  management,  employees,  officers  and  directors  (and  their         successors  and  assigns)  of  Holdings,  such  other  Parent  Company,  the  Borrower  and  its  Restricted         Subsidiaries; provided  that  (A)  the  aggregate  amount  of  Dividends  made  by  the  Borrower  to  Holdings         pursuant to this clause (iii), and the aggregate amount paid by Holdings or such other Parent Company in         respect of all such Equity Interests so redeemed or repurchased shall not (net of any cash proceeds received         by  Holdings  from  issuances  of  its  Equity  Interests  (other  than  to  the  extent  included  in  the  Available         Amount)  and  contributed  to  the  Borrower  in  connection  with  such  redemption  or  repurchase),  in  either         case, exceed during any fiscal year of the Borrower, the greater of $50,000,000 and 10.0% of Consolidated         EBITDA of the Borrower and its Restricted Subsidiaries for the most recently ended Test Period (measured         at the time of such Dividend) (provided that the amount of cash Dividends permitted to be, but not, paid in         any fiscal year pursuant to this clause (iii) shall increase the amount of cash Dividends permitted to be paid         in the succeeding two fiscal years pursuant to this clause (iii)); (B) such amount in any calendar year may         be increased by an amount not to exceed:  (I) the cash proceeds of key man life insurance policies received         by the Borrower or any of its Restricted Subsidiaries after the Closing Date; plus (II) the net proceeds from         the sale of Equity Interests of Holdings or any Parent Company, in each case to members of management,         managers, directors or consultants of any Parent Company or any of its Subsidiaries that occurs after the         Closing Date, where the net proceeds of such sale are received by or contributed to the Borrower; provided         that the amount of any such net proceeds that are utilized for any Dividend under this clause (iii) will not be         considered  to  be  net  proceeds  of  Equity  Interests  for  purposes  of  clause  (a)(ii)  of  the  definition  of         “Available  Amount”; less  (III)  the  amount  of  any  Dividends  previously  made  with  the  cash  proceeds         described in the preceding clause (I); and (C) cancellation of Indebtedness owing to the Borrower from         members  of  management,  officers,  directors,  employees  of  the  Borrower  or  any  of  its  Subsidiaries  in         connection with a repurchase of Equity Interests of Holdings or any other Parent Company will not be         deemed to constitute a Dividend for purposes of this Agreement;                  (iv)   the Borrower may authorize, declare and pay cash Dividends to Holdings so long as the         proceeds thereof are promptly used by Holdings (or subsequently paid to any other Parent Company) to pay         expenses incurred by Holdings or any other Parent Company in connection with offerings, registrations, or         exchange listings of equity or debt securities and maintenance of same (A) where the net proceeds of such         offering are to be received by or contributed to the Borrower, (B) in a prorated amount of such expenses in         proportion to the amount of such net proceeds intended to be so received or contributed or loaned, or (C)         otherwise on an interim basis prior to completion of such offering so long as Holdings and any other Parent         Company shall cause the amount of such expenses to be repaid to the Borrower or the relevant Restricted         Subsidiary of the Borrower out of the proceeds of such offering promptly if such offering is completed;                  (v)    the Borrower may authorize, declare and pay cash Dividends to Holdings so long as the         proceeds thereof are promptly used by Holdings (or subsequently paid to any other Parent Company) to pay                                                  93 

 

                  costs (including all professional fees and expenses) incurred by Holdings or any other Parent Company in  connection  with  reporting  obligations  under  or  otherwise  incurred  in  connection  with  compliance  with  applicable laws, applicable rules or regulations of any governmental, regulatory or self-regulatory body or  stock exchange, including in respect of any reports filed with respect to the Securities Act, the Securities  Exchange Act or the respective rules and regulations promulgated thereunder;            (vi)   the Borrower  may authorize, declare and pay cash dividends or other distributions, or  make loans or advances to, any Parent Company or the equity interest holders thereof in amounts required  for any Parent Company or the equity interest holders thereof to pay, in each case without duplication:                  (A)    franchise  Taxes  (and  other  fees  and  expenses)  required  to  maintain  their          existence to the extent such Taxes, fees and expenses are reasonably attributable to the operations          of Holdings, the Borrower and its Restricted Subsidiaries;                  (B)    with  respect  to  any  taxable  period  for  which  the  Borrower  and/or  any  of  its          Subsidiaries  are  members  of  a  consolidated,  combined  or  similar  income  tax  group  for  U.S.          federal and/or applicable state, local or foreign income or similar tax purposes of which a direct or          indirect parent of the Borrower is the common parent, the portion of any U.S. federal, state, local          and/or  foreign  income  and  similar  taxes  (including  any  alternative  minimum  taxes)  of  such  tax          group that is attributable to the taxable income of the Borrower and/or such Subsidiaries; provided          (1) that the amount of such payments made in respect of any taxable period in the aggregate do not          exceed the amount that the Borrower and/or such Subsidiaries would have been required to pay in          respect  of  such  taxable  period  had  the  Borrower  and/or  such  Subsidiaries  been  a  stand-alone          corporate taxpayer or tax group for all applicable taxable periods ending after the date hereof, (2)          that the permitted payment pursuant to this clause (B) attributable to any Unrestricted Subsidiary          for any taxable period shall be limited to the amount actually paid by such Unrestricted Subsidiary          to the Borrower or any Restricted Subsidiary and (3) that with respect to any taxable period (or          portion  thereof)  ending  prior  to  the  Closing  Date,  distributions  otherwise  permitted  under  this          clause (B) shall be permitted only to the extent such tax distribution relates to income tax audit          adjustments that arise after the Closing Date;                  (C)    customary salary, bonus and other benefits payable to officers and employees of          any  Parent  Company  to  the  extent  such  salaries,  bonuses  and  other  benefits  are  reasonably          attributable to the ownership or operations of the Borrower and its Restricted Subsidiaries;                  (D)     general  corporate  operating  and  overhead  costs  and  expenses  (including          administrative,  legal,  accounting  and  similar  expenses  provided  by  third  parties)  of  any  Parent          Company  to  the  extent  such  costs  and  expenses  are  reasonably  attributable  to  the  ownership  or          operations of the Borrower and its Restricted Subsidiaries;                  (E)     cash payments in lieu of issuing fractional shares in connection with the exercise          of warrants, options or other securities convertible into or exchangeable for Equity Interests of the          Borrower or any Parent Company;                  (F)    the purchase or other acquisition by Holdings or any other Parent Company of          the Borrower of all or substantially all of the property and assets or business of any Person, or of          assets constituting a business unit, a line of business or division of such Person, or of all of the          Equity Interests in a Person; provided that if such purchase or other acquisition had been made by          the Borrower, it would have constituted a Permitted Acquisition permitted to be made pursuant to          Section  9.14; provided  that  (A)  such  dividend,  distribution,  loan  or  advance  shall  be  made          concurrently  with  the  closing  of  such  purchase  or  other  acquisition  and  (B)  such  parent  shall,          immediately  following  the  closing  thereof,  cause  (1)  all  property  acquired  (whether  assets  or          Equity Interests) and any liabilities assumed to be contributed to the Borrower or any Restricted          Subsidiary or (2) the merger (to the extent permitted in Section 10.02) into the Borrower or any          Restricted Subsidiary of the Person formed or acquired in order to consummate such purchaser or          other acquisition;                                           94 

 

                                 (G)     any customary fees and expenses related to any unsuccessful equity offering by          any  Parent  Company  directly  attributable  to  the  operations  of  the  Borrower  and  its  Restricted          Subsidiaries; and                  (H)     without duplication of any other amounts permitted pursuant to Section 10.03(v)          or this clause (vi), Public Company Costs;          (vii)   reasonable and customary indemnities to directors, officers and employees of Holdings or  any other Parent Company in the ordinary course of business, to the extent reasonably attributable to the  ownership or operation of the Borrower and its Restricted Subsidiaries;         (viii)   the Borrower may authorize, declare and pay cash Dividends to Holdings so long as the  proceeds thereof are promptly used by Holdings (or subsequently paid to any other Parent Company) for  payment  of  (x)  obligations  under  or  in  respect  of  director  and  officer  insurance  policies  to  the  extent  reasonably attributable to the ownership or operation of the Borrower and its Restricted Subsidiaries or (y)  indemnification obligations owing to the Sponsor and Sponsor Affiliates under the Advisory Agreement;           (ix)   any Dividend used to fund the Transactions, including Transaction Costs;           (x)    the  Borrower  may  authorize,  declare  and  pay  cash  Dividends  to  Holdings  (who  may  subsequently  authorize,  declare  and  pay  cash  Dividends  to  any  other  Parent  Company)  so  long  as  the  proceeds  thereof  are  used  to  pay  the  Sponsor  or  Sponsor  Affiliate  fees,  expenses  and  indemnification  payments that are then permitted to be paid pursuant to Sections 10.06(v) and 10.06(vii);            (xi)   repurchases  of  Equity  Interests  deemed  to  occur  upon  exercise  of  stock  options  or  warrants or similar equity incentive awards;          (xii)   a  Dividend  to  any  Parent  Company  to  fund  a  payment  of  dividends  on  such  Parent  Company’s  common  stock  after  the  Closing  Date,  not  to  exceed,  in  any  fiscal  year,  6%  of  such  Parent  Company’s Market Capitalization;         (xiii)    any  Dividends  to  the  extent  the  same  are  made  solely  with  the  Available  Amount,  so  long as, solely to the extent clause (a)(i)(B) of the definition of “Available Amount” is being utilized, at the  time of, and after giving effect to such Dividend on a Pro Forma Basis, (i) no Event of Default shall have  occurred  and be  continuing  and  (ii)  the  Consolidated Total  Net  Leverage  Ratio  does  not  exceed  4.50  to  1.00;         (xiv)    purchases  of  minority  interests  in  Restricted  Subsidiaries  that  are  not  Wholly-Owned  Subsidiaries by the Borrower and the Guarantors; provided that the aggregate amount of such purchases,  when added to the aggregate amount of Investments pursuant to Section 10.05(xvii), shall not exceed the  greater of $30,000,000 and 6.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries  for the most recently ended Test Period (measured at the time of such purchase);          (xv)    the  authorization,  declaration  and  payment  of  Dividends  or  the  payment  of  other  distributions by the Borrower in an aggregate amount since the Closing Date not to exceed the greater of  $125,000,000 and 25.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the  most recently ended Test Period (measured at the time of such Dividend);         (xvi)    the Borrower and each Restricted Subsidiary may authorize, declare and make Dividend  payments or other distributions payable solely in the Equity Interests of such Person so long as in the case  of  Dividend  or  other  distribution  by  a  Restricted  Subsidiary,  the  Borrower  or  a  Restricted  Subsidiary  receives at least its pro rata share of such dividend or distribution;         (xvii)   the  Borrower  may  authorize,  declare  and  pay  Dividends  with  the  cash  proceeds  contributed  to  its  common  equity  from  the  net  cash  proceeds  of  any  equity  issuance  by  any  Parent                                            95 

 

         Company, so long as, with respect to any such payments, no Event of Default shall have occurred and be         continuing or would result therefrom; provided that the amount of any such cash proceeds that are utilized         for any Dividend under this clause (xvii) will not be considered to be cash proceeds of Equity Interests for         purposes of clause (a)(ii) of the definition of “Available Amount” or the Contribution Amount;               (xviii)   the  Borrower  and  any  Restricted  Subsidiary  may  authorize,  declare  and  pay  Dividends         within  90  days  after  the  date  of  declaration  thereof,  if  at  the  date  of  declaration  of  such  payment,  such         payment would have complied with another provision of this Section 10.03;                 (xix)    any Dividends, so long as (x) at the time of, and after giving effect to such Dividend, no         Event of Default shall have occurred and be continuing and (y) on a Pro Forma Basis, the Consolidated         Total Net Leverage Ratio does not exceed 3.25 to 1.00;                  (xx)    the Borrower  may authorize, declare and pay cash dividends or other distributions, or         make loans or advances to, any Parent Company so long  as (a) the proceeds thereof are used to  make         payments to minority shareholders pursuant to appraisal or dissenter’s rights with respect to shares in an         Acquired Entity or Business held by such shareholders immediately prior to the acquisition and (b) such         acquisition was made in compliance with Section 10.03(vi)(F);                 (xxi)    any Dividend, payment or distribution to any Parent Company to fund payments required         to be made by such Parent Company pursuant to the Tax Receivable Agreement.   In determining compliance with this Section 10.03 (and in determining amounts paid as Dividends pursuant hereto  for purposes of the definition of Consolidated EBITDA and Consolidated Net Income), amounts loaned or advanced  to Holdings pursuant to Section 10.05(vi) shall, to the extent such loan or advance remains unpaid, be deemed to be  cash Dividends paid to Holdings to the extent provided in said Section 10.05(vi).          10.04   Indebtedness.  The Borrower  will  not, and  will  not permit any of its  Restricted  Subsidiaries to,  contract, create, incur, assume or suffer to exist any Indebtedness, except:                   (i)   (x)  Indebtedness  incurred  pursuant  to  this  Agreement  and  the  other  Credit  Document         (including in respect of any Incremental Term Loan Commitments); and (y) Indebtedness incurred pursuant         to the ABL Credit Agreement in an aggregate principal amount not to exceed $600,000,000;                  (ii)   Indebtedness under Interest Rate Protection Agreements entered into with respect to other         Indebtedness permitted under this Section 10.04 so long as the entering into of such Interest Rate Protection         Agreements are bona fide hedging activities and are not for speculative purposes;                 (iii)   Indebtedness  of  the  Borrower  and  its  Restricted  Subsidiaries  evidenced  by  Capitalized         Lease  Obligations  and  purchase  money  Indebtedness  (including  obligations  in  respect  of  mortgages,         industrial  revenue  bonds,  industrial  development  bonds  and  similar  financings)  in  connection  with  the         acquisition, construction, installation, repair, replacement or improvement of fixed or capital assets and any         Permitted  Refinancing  Indebtedness  in  respect  thereof; provided  that  in  no  event  shall  the  aggregate         principal amount of all such Indebtedness incurred or assumed in each case after the Closing Date pursuant         to this clause (iii) exceed the greater of $180,000,000 and 35.0% of Consolidated EBITDA of the Borrower         and its Restricted Subsidiaries for the most recently ended Test Period (measured at the time of incurrence)         at any one time outstanding;                  (iv)   to  the  extent  constituting  Indebtedness,  any  Indebtedness  in  respect  of  payments  to         minority  shareholders  pursuant  to  appraisal  or  dissenters’  rights  with  respect  to  shares  in  an  Acquired         Entity or Business held by such shareholders immediately prior to the Permitted Acquisition, as applicable;                    (v)    (A)  Indebtedness  of  a  Restricted  Subsidiary  of  the  Borrower  acquired  pursuant  to  a         Permitted Acquisition (or Indebtedness assumed at the time of a Permitted Acquisition of an asset securing         such  Indebtedness);  provided  that  (x)  such  Indebtedness  was  not  incurred  in  connection  with,  or  in                                                   96 

 

                  anticipation or contemplation of, such Permitted Acquisition and (y) the Consolidated Total Net Leverage  Ratio, determined on a Pro Forma Basis as of the last day of the most recently ended Test Period, shall not  exceed 4.50 to 1.00 and (B) any Permitted Refinancing Indebtedness in respect thereof;           (vi)   intercompany Indebtedness and cash management pooling obligations and arrangements  among the Borrower and its Restricted Subsidiaries to the extent permitted by Section 10.05(vi);          (vii)   Indebtedness  outstanding  on  the  Closing  Date  and  listed  on  Schedule  10.04  (or  to  the  extent not listed on such Schedule 10.04, where the outstanding principal amount of such Indebtedness is  less than $30,000,000 in the aggregate) and any Permitted Refinancing Indebtedness in respect thereof;         (viii)   Indebtedness  of  non-Credit  Parties; provided  that  the  aggregate  principal  amount  of  Indebtedness  outstanding  pursuant  to  this  clause  (viii)  shall  not  at  any  time  exceed  the  greater  of  $120,000,000 and 25.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the  most recently ended Test Period (measured at the time of incurrence);           (ix)   [reserved];           (x)    Indebtedness incurred in the ordinary course of business to finance insurance premiums  or take-or-pay obligations contained in supply arrangements;           (xi)   Indebtedness  incurred  in  the  ordinary  course  of  business  in  respect  of  netting  services,  overdraft  protections,  employee  credit  card  programs,  automatic  clearinghouse  arrangements  and  other  similar services in connection with cash management and deposit accounts and Indebtedness in connection  with  the  honoring  of  a  bank  or  other  financial  institution  of  a  check,  draft  or  similar  instrument  drawn  against insufficient funds in the ordinary course of business, including in each case, obligations under any  Treasury Services Agreements;          (xii)   Indebtedness in respect of Other Hedging Agreements so long as the entering into of such  Other Hedging Agreements are bona fide hedging activities and are not for speculative purposes;         (xiii)   unsecured  Indebtedness  of  the  Borrower  (which  may  be  guaranteed  on  a  subordinated  basis  by  Holdings  (so  long  as  it  is  a  Guarantor)  and  any  or  all  Subsidiary  Guarantors),  in  an  aggregate  outstanding principal amount (together with any Permitted Refinancing Indebtedness in respect thereof) not  to  exceed  the  greater  of  $240,000,000  and  45.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted Subsidiaries for the most recently ended Test Period (measured at the time of incurrence) at any  time, assumed or incurred in connection with any Permitted Acquisition permitted under Section 9.14, so  long as such Indebtedness (and any guarantees thereof) are subordinated to the Obligations upon terms and  conditions acceptable to the Administrative Agent and any Permitted Refinancing Indebtedness in respect  thereof;         (xiv)    Indebtedness  consisting  of  obligations  under  deferred  compensation  (including  indemnification  obligations,  obligations  in  respect  of  purchase  price  adjustments,  earn-outs,  incentive  noncompetes  and  other  contingent  obligations)  or  other  similar  arrangements  incurred  or  assumed  in  connection  with  any  Permitted  Acquisition  or  any  other  Investment,  in  each  case,  permitted  under  this  Agreement;          (xv)    additional Indebtedness of the Borrower and its Restricted Subsidiaries not to exceed the  greater  of  $250,000,000  and  45.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries  for  the  most  recently  ended  Test  Period  (measured  at  the  time  of  incurrence)  in  aggregate  principal amount outstanding at any time and any Permitted Refinancing Indebtedness in respect thereof;         (xvi)    Contingent  Obligations  for  customs,  stay,  performance,  appeal,  judgment,  replevin  and  similar  bonds  and  suretyship  arrangements,  and  completion  guarantees  and  other  obligations  of  a  like  nature, all in the ordinary course of business;                                            97 

 

                        (xvii)   Contingent  Obligations  to  insurers  required  in  connection  with  worker’s  compensation  and other insurance coverage incurred in the ordinary course of business;        (xviii)   guarantees made by the Borrower or any of its Restricted Subsidiaries of Indebtedness of  the  Borrower  or  any  of  its  Restricted  Subsidiaries  permitted  to be outstanding  under  this  Section  10.04;  provided that (x) such guarantees are permitted by Section 10.05 and (y) no Restricted Subsidiary that is  not a Subsidiary Guarantor shall guarantee Indebtedness of a Credit Party pursuant to this clause (xviii);         (xix)    guarantees made by any non-Credit Party of Indebtedness of any other non-Credit Party  permitted to be outstanding under this Section 10.04;          (xx)    guarantees made by Restricted Subsidiaries acquired pursuant to a Permitted Acquisition  of  Indebtedness  acquired  or  assumed  pursuant  thereto  in  accordance  with  this  Section  10.04,  or  any  refinancing  thereof  pursuant  to  this  Section  10.04; provided that such guarantees may only be made by  Restricted Subsidiaries who were guarantors of the Indebtedness originally acquired or assumed pursuant to  this  Section  10.04  at  the  time  of  the  consummation  of  the  Permitted  Acquisition  to  which such  Indebtedness relates;         (xxi)    customary Contingent Obligations in connection with sales, other dispositions and leases  permitted under Section 10.02 (but not in respect of Indebtedness for borrowed money or Capitalized Lease  Obligations) including indemnification obligations with respect to leases, and guarantees of collectability in  respect of accounts receivable or notes receivable for up to face value;         (xxii)   guarantees of Indebtedness of directors, officers and employees of the Borrower or any of  its Restricted Subsidiaries in respect of expenses of such Persons in connection with relocations and other  ordinary course of business purposes;        (xxiii)   guarantees of Indebtedness of a Person in connection with a joint venture; provided that  the aggregate principal amount of any Indebtedness so guaranteed that is then outstanding, when added to  the  aggregate amount of  unreimbursed payments theretofore  made in respect of  such  guarantees and the  amount  of  Investments  then  outstanding  (and  deemed  outstanding)  under  clause  (xix)  of  Section  10.05,  shall not exceed the greater of $210,000,000 and 40.0% of Consolidated EBITDA of the Borrower and its  Restricted Subsidiaries for the most recently ended Test Period (measured at the time of incurrence) and  any Permitted Refinancing Indebtedness in respect thereof;        (xxiv)    Contribution  Indebtedness  and  any  Permitted  Refinancing  Indebtedness  in  respect  thereof;         (xxv)    Indebtedness 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, to the extent  such Indebtedness is extinguished reasonably promptly after receipt of notice thereof;        (xxvi)    (x)  severance,  pension  and  health and  welfare  retirement  benefits  or  the  equivalent  thereof  to  current  and  former  officers,  employees  and  directors  of  the  Borrower  or  its  Restricted  Subsidiaries  incurred  in  the  ordinary  course  of  business,  (y)  Indebtedness  representing  deferred  compensation or stock-based compensation to current and former officers, employees and directors of the  Borrower and the Restricted Subsidiaries and (z) Indebtedness consisting of promissory notes issued by any  Credit  Party  to  current  or  former  officers,  directors  and  employees,  their  respective  estates,  spouses  or  former spouses to finance the purchase or redemption of Equity Interests of any Parent Company permitted  by Section 10.03;        (xxvii)   (A) Permitted Pari Passu Notes, Permitted Pari Passu Loans or Permitted Junior Debt in  an  amount  not to exceed  (1) the  then  remaining  Fixed Incremental  Amount  as  of  the date of incurrence  thereof plus (2) subject to the satisfaction of the applicable Incurrence-Based Incremental Facility test, any  Incurrence-Based Incremental Amounts that may be incurred thereunder on such date, in each case, so long                                            98 

 

         as (i) all such Indebtedness is incurred in accordance with the requirements of the definitions of “Permitted         Pari Passu Notes,” “Permitted Pari Passu Loans,” “Permitted Junior Notes” or “Permitted Junior Loans”, as         the case may be, (ii) there shall be no obligor in respect of such indebtedness that is not a Credit Party and         (iii)  no  Event  of  Default  then  exists  or  would  result  therefrom  (provided,  that  with  respect  to  any  such         Indebtedness incurred to finance a Limited Condition Transaction, such requirement shall be limited to the         absence of an Event of Default pursuant to Section 11.01 or Section 11.05) (it being understood that the         reclassification  mechanics  set  forth  in  the  definition  of  “Incremental  Amount”  shall  apply  to  amounts         incurred pursuant to this Section 10.04(xxvii)(A)); and (B) Permitted Refinancing Indebtedness in respect         of Indebtedness incurred pursuant to subclause (A);              (xxviii)   (x) guarantees made by the Borrower or any of its Restricted Subsidiaries of obligations         (not constituting debt for borrowed money) of the Borrower or any of its Restricted Subsidiaries owing to         vendors, suppliers and other third parties incurred in the ordinary course of business and (y) Indebtedness         of any Credit Party (other than Holdings) as an account party in respect of trade letters of credit issued in         the ordinary course of business;               (xxix)    (A) Permitted Junior Debt of the Borrower and its Restricted Subsidiaries incurred under         Permitted Junior Debt Documents so long as (i) all such Indebtedness is incurred in accordance with the         requirements of the definitions of “Permitted Junior Notes” or “Permitted Junior Loans”, as the case may         be, (ii) no Event of Default then exists or would result therefrom (provided, that with respect to any such         Indebtedness incurred to finance a Limited Condition Transaction, such requirement shall be limited to the         absence of an Event  of  Default  pursuant to  Section 11.01  or  Section 11.05), (iii) any  such Indebtedness         incurred or guaranteed by a Credit Party is not secured by any assets of the Borrower or any Restricted         Subsidiary and (iv) the aggregate principal amount of such Permitted Junior Debt issued or incurred after         the Closing Date shall not cause the Consolidated Total Net Leverage Ratio, determined on a Pro Forma         Basis  as  of  the  last  day  of  the  most  recently  ended  Test  Period,  to  exceed  4.50  to  1.00  and  (B)  any         Permitted  Refinancing  Indebtedness  in  respect  of  Indebtedness  incurred  pursuant  to  subclause  (A);         provided that the amount of Permitted Junior Debt which may be incurred pursuant to this clause (xxix) by         non-Credit Parties shall not exceed the greater of $240,000,000 and 45.0% of Consolidated EBITDA of the         Borrower and its Restricted Subsidiaries for the most recently ended Test Period (measured at the time of         incurrence) at any time outstanding;                (xxx)    Indebtedness  arising  out  of  Sale-Leaseback  Transactions  permitted  by  Section         10.01(xviii);               (xxxi)    Indebtedness  under  Refinancing  Notes,  100%  of  the  Net  Debt  Proceeds  of  which  are         applied to repay outstanding Term Loans in accordance with Section 5.02(c); and               (xxxii)   all premiums (if any), interest (including post-petition interest), fees, expenses, charges         and additional or contingent interest on obligations described in clauses (i) through (xxxi) above.           The Borrower or any Restricted Subsidiary may incur Indebtedness permitted by this Section 10.04  (including, to the extent permitted by this Section 10.04, through the use of the same basket or other exception used  to originally incur the debt securities being satisfied and discharged), to satisfy and discharge any debt securities  permitted to be incurred by this Section 10.04, at the same time as such debt securities are outstanding, so long as  the net proceeds of such Indebtedness are promptly deposited with the trustee to satisfy and discharge the applicable  indenture in accordance with such debt securities.          10.05   Advances,  Investments  and  Loans.   The  Borrower  will  not,  and  will  not  permit  any  of  its  Restricted Subsidiaries to, directly or indirectly, lend money or credit or make advances to any Person, or purchase  or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any  other Person (each of the foregoing, an “Investment” and, collectively, “Investments” and  with the value of each  Investment being measured at the time made and without giving effect to subsequent changes in value or any write- ups,  write-downs  or  write-offs  thereof  but  giving  effect  to  any  cash  return  or  cash  distributions  received  by  the  Borrower and its Restricted Subsidiaries with respect thereto), except that the following shall be permitted (each of  the following, a “Permitted Investment” and collectively, “Permitted Investments”):                                                  99 

 

                           (i)   the  Borrower and its  Restricted  Subsidiaries  may acquire  and hold accounts  receivable  owing to any of them, if created or acquired in the ordinary course of business and payable or dischargeable  in accordance with customary trade terms of the Borrower or such Restricted Subsidiary;           (ii)   the  Borrower  and  its  Restricted  Subsidiaries  may  acquire  and  hold  cash  and  Cash  Equivalents;          (iii)   the Borrower and its Restricted Subsidiaries may hold the Investments held by them on  the  Closing  Date  and  described  on  Schedule  10.05(iii),  and  any  modification,  replacement,  renewal  or  extension  thereof  that  does  not  increase  the  principal  amount  thereof  unless  any  additional  Investments  made with respect thereto are permitted under the other provisions of this Section 10.05;           (iv)   the Borrower and its Restricted Subsidiaries may acquire and hold Investments (including  debt  obligations  and  Equity  Interests)  received  in  connection  with  the  bankruptcy  or  reorganization  of  suppliers and customers, and Investments received in good faith settlement of delinquent obligations of,  and other disputes with, customers and suppliers arising in the ordinary course of business;           (v)    the  Borrower  and  its  Restricted  Subsidiaries  may  enter  into  Interest  Rate  Protection  Agreements  to  the  extent  permitted  by  Section  10.04(ii),  and  Other  Hedging  Agreements  to  the  extent  permitted by Section 10.04(xii);           (vi)   (a) the Borrower and any  Restricted Subsidiary  may  make intercompany loans to and  other  investments  (including  cash  management  pooling  obligations  and  arrangements)  in  Credit  Parties  (other  than  Holdings,  unless  otherwise  permitted  by  Section  10.03),  including  in  connection  with  tax  planning and reorganization activities, so long as, after giving effect thereto, the security interest of the  Collateral  Agent  for  the  benefit  of  the  Secured  Creditors  in  the  Collateral,  taken  as  a  whole,  is  not  materially  impaired,  (b)  any  non-Credit  Party  may  make  intercompany  loans  to  and  other  investments  (including cash management pooling obligations and arrangements) in the Borrower or any of its Restricted  Subsidiaries  so  long  as  in  the  case  of  such  intercompany  loans  (other  than  cash  management  pooling  obligations  and  arrangements)  to  Credit  Parties  (other  than  Holdings),  all  payment  obligations  of  the  respective  Credit  Parties  are  subordinated  to  their  obligations  under  the  Credit  Documents  on  terms  reasonably satisfactory to the Administrative Agent, (c) the Credit Parties may make intercompany loans  to,  guarantees  on  behalf  of,  and  other  investments  (including  cash  management  pooling  obligations  and  arrangements) in, Restricted Subsidiaries that are not Credit Parties, (d) any Restricted Subsidiary that is  not a Credit Party may make intercompany loans to, and other investments (including  cash management  pooling obligations and arrangements) in, any other Restricted Subsidiary that is also not a Credit Party and  (e)  Credit  Parties  may  make  intercompany  loans  and  other  investments  (including  cash  management  pooling obligations and arrangements) in any  Restricted  Subsidiary  that  is  not  a  Credit  Party  so  long  as  such  Investment  is  part  of  a  series  of  simultaneous  Investments  by  Restricted  Subsidiaries  in  other  Restricted Subsidiaries that results in the proceeds of the initial Investment being invested in one or more  Credit Parties (other than Holdings, unless otherwise permitted by Section 10.03);            (vii)   Permitted Acquisitions shall be permitted in accordance with Section 9.14;         (viii)   loans and advances by the Borrower and its Restricted Subsidiaries to officers, directors  and  employees  of  the  Borrower  and  its  Restricted  Subsidiaries  in  connection  with  (i)  business-related  travel,  relocations  and  other  ordinary  course  of  business  purposes  (including  travel  and  entertainment  expenses) shall  be permitted  and  (ii) any such Person’s  purchase of Equity Interests  of  Holdings or  any  Parent Company; provided that no cash is actually advanced pursuant to this clause (ii) unless immediately  repaid;           (ix)   advances  of  payroll  payments  to  employees  of  the  Borrower  and  its  Restricted  Subsidiaries in the ordinary course of business;                                            100 

 

                          (x)    non-cash  consideration  may  be  received  in  connection  with  any  asset  sale  permitted  pursuant to Section 10.02(ii) or (x);           (xi)   additional Restricted Subsidiaries of  the  Borrower  may  be  established  or  created  if  the  Borrower and such Subsidiary comply with the requirements of Section 9.12, if applicable; provided that to  the  extent  any  such  new  Subsidiary  is  created  solely  for  the  purpose  of  consummating  a  transaction  pursuant to an acquisition permitted by this Section 10.05, and such new Subsidiary at no time holds any  assets  or  liabilities  other  than  any  merger  consideration  contributed  to  it  contemporaneously  with  the  closing  of  such  transaction,  such  new  Subsidiary  shall  not  be  required  to  take  the  actions  set  forth  in  Section 9.12, as applicable, until the respective acquisition is consummated (at which time the surviving or  transferee  entity  of  the  respective  transaction  and  its  Subsidiaries  shall  be  required  to  so  comply  in  accordance with the provisions thereof);          (xii)   extensions  of  trade  credit  may  be  made  in  the  ordinary  course  of  business  (including  advances made to distributors consistent with past practice), Investments received in satisfaction or partial  satisfaction  of  previously  extended  trade  credit  from  financially  troubled  account  debtors,  Investments  consisting of prepayments to suppliers made in the ordinary course of business and loans or advances made  to distributors in the ordinary course of business;         (xiii)   earnest money deposits may be made to the extent required in connection with Permitted  Acquisitions and other Investments to the extent permitted under Section 10.01(xxviii);         (xiv)    Investments in deposit accounts, securities accounts or commodities accounts opened in  the ordinary course of business;          (xv)    Investments in the nature of pledges or deposits with respect to leases or utilities provided  to third parties in the ordinary course of business;         (xvi)    Investments  in  the  ordinary  course  of  business  consisting  of  UCC  Article  3  (or  the  equivalent under other applicable law) endorsements for collection or deposit;         (xvii)   purchases  of  minority  interests  in  Restricted  Subsidiaries  that  are  not  Wholly-Owned  Subsidiaries by the Borrower and the Guarantors; provided that the aggregate amount of such purchases,  when  added  to  the  aggregate  amount  of  Dividends  pursuant  to  Section  10.03(xiv),  shall  not  exceed  the  greater of $30,000,000 and 6.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries  for the most recently ended Test Period (measured at the time such Investment is made);        (xviii)   Investments to the extent made with the Available Amount;         (xix)    in addition to Investments permitted by clauses (i) through (xviii) and (xx) through (xxxi)  of  this  Section 10.05,  the Borrower and its Restricted Subsidiaries  may  make additional  loans,  advances  and other Investments to or in a Person (including a joint venture) in an aggregate outstanding amount for  all loans, advances and other Investments made pursuant to this clause (xix), not to exceed the greater of  $250,000,000 and 45.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the  most recently ended Test Period (measured at the time such Investment is made);          (xx)    the  licensing,  sublicensing  or  contribution  of  Intellectual  Property  rights  pursuant  to  arrangements with Persons other than the Borrower and the Restricted Subsidiaries in the ordinary course  of business for fair market value, as determined by the Borrower or such Restricted Subsidiary, as the case  may be, in good faith;         (xxi)    loans and advances to any Parent Company in lieu of, and not in excess of the amount of  (after giving effect to any other loans, advances or Dividends made to any Parent Company), Dividends  permitted to be made to any Parent Company in accordance with Section 10.03; provided that any  such  loan or advance shall reduce the amount of such applicable Dividends thereafter permitted under Section                                            101 

 

         10.03  by  a  corresponding  amount  (if  such  applicable  subsection  of  Section  10.03  contains  a  maximum         amount);                (xxii)   Investments to the extent that payment for such Investments is made solely in the form of         common  Equity  Interests  or  Qualified  Preferred  Stock  of  Holdings  or  any  Equity  Interests  of  any  other         Parent Company to the seller of such Investments;               (xxiii)   Investments  of  a  Person  that  is  acquired  and  becomes  a  Restricted  Subsidiary  or  of  a         company  merged or amalgamated or consolidated into any  Restricted Subsidiary, in  each case after the         Closing Date and in accordance with this Section 10.05 and/or Section 10.02, as applicable, to the extent         such  Investments  were  not  made  in  contemplation  of  or  in  connection  with  such  acquisition,  merger,         amalgamation or consolidation, do not constitute a material portion of the aggregate assets acquired in such         transaction and were in existence on the date of such acquisition, merger, amalgamation or consolidation;               (xxiv)    Investments in a Restricted Subsidiary that is not a Credit Party or in a joint venture, in         each case, to the extent such Investment is substantially contemporaneously repaid in full with a dividend         or other distribution from such Restricted Subsidiary or joint venture;                (xxv)    to  the  extent  that  they  constitute  Investments,  purchases  and  acquisitions  of  inventory,         supplies,  materials  and  equipment  or  purchases  of  contract  rights  or  licenses  or  leases  of  Intellectual         Property, in each case, in the ordinary course of business;                (xxvi)    Investments  by  the  Borrower  and  its  Restricted  Subsidiaries  (a)  consisting  of  deposits,         prepayment  and  other  credits to suppliers or  landlords made in the  ordinary course of business  or (b)  in         connection with obtaining, maintaining or renewing client contracts, each made in the ordinary course of         business;                (xxvii)   guaranties made in the ordinary course of business of or relating to (a) obligations owed         to  landlords,  suppliers,  customers,  franchisees  and  licensees  of  the  Borrower  or  its  Subsidiaries  and  (b)         operating  leases  (for  the  avoidance  of  doubt,  excluding  Capitalized  Lease  Obligations)  or  of  other         obligations that do not constitute Indebtedness;               (xxviii)   Investments  consisting  of  the  licensing,  sublicensing  or  contribution  of  Intellectual         Property pursuant to joint marketing arrangements with other Persons;               (xxix)    Investments in Unrestricted Subsidiaries having an aggregate fair market value (measured         on  the  date  each  such  Investment  was  made  and  without  giving  effect  to  subsequent  changes  in  value),         when taken together with all other Investments made pursuant to this Section 10.05(xxix) not to exceed the         greater  of  $150,000,000  and  30.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted         Subsidiaries for the most recently ended Test Period (measured at the time such Investment is made) at any         one time outstanding;                 (xxx)    any Investments, so long as, on the date of such Investment, (i) no Event of Default under         Section 11.01 or 11.05 has occurred and is continuing and (ii) on a Pro Forma Basis, the Consolidated Total         Net Leverage Ratio does not exceed 3.25 to 1.00; and               (xxxi)    Investments  by  the  Borrower  and  its  Restricted  Subsidiaries  in  joint  ventures  in  an         aggregate amount for all Investments made pursuant to this clause (xxxi), not to exceed, when added to the         aggregate  amount  then  guaranteed  under  clause  (xxiii)  of  Section  10.04  and  all  unreimbursed  payments         theretofore  made  in  respect  of  guarantees  pursuant  to  clause  (xxiii)  of  Section  10.04,  the  greater  of         $120,000,000 and 25.0% of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the         most recently ended Test Period (measured at the time such Investment is made).          To the extent an Investment is permitted to be made by a Credit Party directly in any Restricted Subsidiary  or  any other Person  who  is  not a Credit Party (each  such  person, a “Target  Person”) under any provision of  this                                                   102 

 

  Section  10.05,  such  Investment  may  be  made  by  advance,  contribution  or  distribution  by  a  Credit  Party  to  a  Restricted Subsidiary or Holdings, and further advanced or contributed by such Restricted Subsidiary or Holdings  for purposes of making the relevant Investment in the Target Person without constituting an additional Investment  for purposes of this Section 10.05 (it being understood that such Investment must satisfy the requirements of, and  shall  count  toward any thresholds  in, a provision of this  Section  10.05 as if  made by  the applicable Credit Party  directly to the Target Person).          10.06   Transactions  with  Affiliates.   The  Borrower  will  not,  and  will  not  permit  any  of  its  Restricted  Subsidiaries to, enter into any transaction or series of related transactions with any Affiliate of the Borrower or any  of its Subsidiaries involving aggregate payments or consideration in excess of the greater of $55,000,000 and 10%  of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries for the most recently ended Test Period  (measured at the time of such transaction), other than on terms and conditions deemed in good faith by the board of  directors of the Borrower (or any committee thereof) to be not less favorable to the Borrower or such Restricted  Subsidiary  as  would  reasonably  be  obtained  by  the  Borrower  or  such  Restricted  Subsidiary  at  that  time  in  a  comparable arm’s-length transaction with a Person other than an Affiliate, except:                   (i)   Dividends (and loans and advances in lieu thereof) may be paid to the extent provided in         Section 10.03;                  (ii)   loans  and  other  transactions  among  Holdings,  the  Borrower  and  its  Restricted         Subsidiaries (and any Parent Company);                 (iii)   customary  fees  and  indemnification  (including  the  reimbursement  of  out-of-pocket         expenses) may be paid to directors of Holdings, the Borrower and its Restricted Subsidiaries (and, to the         extent directly attributable to the operations of the Borrower and the other Restricted Subsidiaries, to any         other Parent Company);                  (iv)   the Borrower and its  Restricted Subsidiaries  may  enter into, and  may  make payments         under,  employment  or  other  service-related  agreements,  employee  benefits  plans,  stock  option  plans,         indemnification  provisions,  stay  bonuses,  severance  and  other  similar  compensatory  arrangements  with         current  and  former  officers,  employees,  consultants  and  directors  of  Holdings,  the  Borrower  and  its         Restricted Subsidiaries in the ordinary course of business;                  (v)    solely during calendar year 2020, so long as no Event of Default shall exist (both before         and immediately after giving effect thereto) under Section 11.01 or 11.05, Holdings and/or the Borrower         may pay fees to the Sponsor or the Sponsor Affiliates (or dividend such funds to any Parent Company to be         paid to the Sponsor or the Sponsor Affiliates) in an amount not to exceed $2,000,000 and perform its other         obligations  pursuant to the terms of  the Advisory  Agreement; provided further that upon the  occurrence         and during the continuance of Event of Default under Section 11.01 or 11.05, such amounts may accrue on         a subordinated basis,  but  not  be payable in cash  during  such period,  but  all such accrued amounts  (plus         accrued interest, if any, with respect thereto) may be payable in cash upon the cure or waiver of such Event         of Default;                  (vi)   the Transactions (including Transaction Costs) shall be permitted;                 (vii)   the Borrower may make payments (or make dividends to Holdings or any other Parent         Company to make payments) (i) to reimburse the Sponsor or the Sponsor Affiliates for its reasonable out-        of-pocket  expenses  and  to  indemnify  it,  pursuant  to  the  terms  of  the  Advisory  Agreement  and  (ii)  to         reimburse any shareholders for their respective reasonable out-of-pocket expenses and to indemnify them,         pursuant  to  the  terms  of  any  stockholders  agreement  with  respect  to  Holdings  or  any  other  Parent         Company, as in effect on the Closing Date, subject to amendments not materially adverse to the Lenders in         any material respect;                (viii)   transactions  described  on  Schedule  10.06(viii)  or  any  amendment  thereto  to  the  extent         such an amendment is not adverse to the Lenders in any material respect;                                                   103 

 

                 (ix)   Investments  in  the  Borrower’s  Subsidiaries  and  joint  ventures  (to  the  extent  any  such         Subsidiary that is not a Restricted Subsidiary or any such joint venture is only an Affiliate as a result of         Investments by Holdings and the Restricted Subsidiaries in such Subsidiary or joint venture) to the extent         otherwise permitted under Section 10.05;                  (x)    [reserved];                  (xi)   transactions between the Borrower and any Person that is an Affiliate solely due to the         fact that a director of such Person is also a director of the Borrower or any Parent Company; provided,         however, that such director abstains from voting as a director of the Borrower or such Parent Company, as         the case may be, on any matter involving such other Person;                  (xii)   payments by Holdings, the Borrower or any of its Restricted Subsidiaries to any Parent         Company for any financial advisory, financing, underwriting or placement services or in respect of other         investment  banking  activities,  including,  without  limitation,  in  connection  with  the  acquisitions  or         divestitures, which payments are approved by a majority of the board of directors of the Borrower in good         faith;                 (xiii)   guarantees  of  performance  by  the  Borrower  and  its  Restricted  Subsidiaries  of         Unrestricted  Subsidiaries  in  the  ordinary  course  of  business,  except  for  guarantees  of  Indebtedness  in         respect of borrowed money;                 (xiv)    the issuance of Equity Interests in the form of common stock or Qualified Preferred Stock         of the Borrower to any Parent Company, or to any director, officer, employee or consultant thereof;                  (xv)    transactions with joint ventures entered into in the ordinary course of business;                 (xvi)    transactions  with  Unrestricted  Subsidiaries,  customers,  clients,  lessors,  landlords,         suppliers, contractors, or purchasers or sellers of goods or services that are Affiliates, in each case, in the         ordinary course of business and otherwise in compliance with the terms of this Agreement that are fair to         the  Borrower  and  its  Restricted  Subsidiaries,  or  made  in  the  reasonable  determination  of  senior         management  or  the  board  of  directors  or  equivalent  governing  body  of  the  Borrower  or  any  Parent         Company; and                (xvii)   to the extent not otherwise prohibited by this Agreement, transactions between or among         Holdings,  the  Borrower  and  any  of  its  Restricted  Subsidiaries  shall  be  permitted  (including  equity         issuances).          10.07   Limitations on Payments, Certificate of Incorporation, By-Laws and Certain Other Agreements,  etc.  The Borrower will not, and will not permit any of its Restricted Subsidiaries to:                  (a)    make (or give any notice (other than any such notice that is expressly contingent upon the         repayment in full in cash of  all Obligations other than any indemnification obligations arising  hereunder         which are not due and payable) in respect of) any  voluntary or optional payment or prepayment on or         redemption  or  acquisition  for  value  of,  or  any  prepayment  or  redemption  as  a  result  of  any  asset  sale,         Change  of  Control  or  similar  event  of  (including,  in  each  case  without  limitation,  by  way  of  depositing         money or securities with the trustee with respect thereto or any other Person before due for the purpose of         paying when due), any Permitted Junior Debt, Subordinated Indebtedness or Refinancing Notes (other than         Refinancing Notes secured by Liens ranking pari passu with the Liens securing the Indebtedness under this         Agreement), in each case, in an outstanding principal amount greater than the greater of $55,000,000 and         10.0%  of  Consolidated  EBITDA  of  the  Borrower  and  its  Restricted  Subsidiaries  for  the  most  recently         ended Test Period (it being understood that payments of regularly scheduled interest and payments of fees,         expenses  and  indemnification  obligations  and  any  payment  that  is  intended  to  prevent  any  Indebtedness         from being treated as an “applicable high yield discount obligation” within the meaning of Section 163(i)        (1)  of  the  Code,  in  each  case,  shall  be  permitted)  except  that  (A)  the  Borrower  may  consummate  the                                                   104 

 

         Transactions, and (B) Permitted Junior Debt, Subordinated Indebtedness and such Refinancing Notes may         be repaid, prepaid, redeemed, repurchased or defeased (and any applicable deposit of money or securities         with the trustee with respect thereto or any other Person for the purpose of paying such Permitted Junior         Debt or Refinancing Notes when due may be made) (i) with the Available Amount; provided, that solely to         the extent clause (a)(i)(B) of the definition of “Available Amount” is being utilized, (x) no Event of Default         shall  have  occurred  and  be  continuing  at  the  time  of  the  consummation  of  the  proposed  repayment  or         prepayment or immediately after giving effect thereto and (y) the Consolidated Total Net Leverage Ratio,         determined on a Pro Forma Basis as of the last day of the most recently ended Test Period, shall not exceed         4.50 to 1.00, (ii) so long as no Event of Default has occurred or would result therefrom and on a Pro Forma         Basis, the Consolidated Total Net Leverage Ratio does  not exceed 3.25 to 1.00 and (iii) in an aggregate         amount not to exceed the greater of $75,000,000 and 15.0% of Consolidated EBITDA of the Borrower and         its  Restricted  Subsidiaries  for  the  most  recently  ended  Test  Period;  provided,  that  nothing  herein  shall         otherwise  prevent  the  Borrower  and  its  Restricted  Subsidiaries  from  refinancing  Permitted  Junior  Debt,         Subordinated Indebtedness or Refinancing Notes, in each case with Permitted Refinancing Indebtedness;                  (b)    amend  or  modify,  or  permit  the  amendment  or  modification  of  any  provision  of,  any         Refinancing  Note  Document  (after  the  entering  into  thereof)  other  than  any  amendment  or  modification         (when taken as a whole) that is not materially adverse to the interests of the Lenders;                  (c)    amend  or  modify,  or  permit  the  amendment  or  modification  of  any  provision  of,  any         Permitted Junior Debt Document (after the entering into thereof) with a principal amount in excess of the         Threshold  Amount,  other  than  any  amendment  or  modification  (when  taken  as  a  whole)  that  is  not         materially adverse to the interests of the Lenders; or                  (d)    amend,  modify  or  change  its  certificate  or  articles  of  incorporation  (including,  without         limitation,  by  the  filing  or  modification  of  any  certificate  or  articles  of  designation)  or  certificate  of         formation; limited liability company agreement or by-laws (or the equivalent organizational documents);         accounting policies, reporting policies or fiscal year (except as required by U.S. GAAP), as applicable, or         any agreement entered into by it with respect to its Equity Interests, or enter into any new agreement with         respect to its Equity Interests, unless such amendment, modification, change or other action contemplated         by this clause (d) (when taken as a whole) is not materially adverse to the interests of the Lenders.          10.08   Limitation  on Certain Restrictions on  Subsidiaries.   The Borrower  will  not, and  will  not  permit  any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become  effective  any  consensual  encumbrance  or  restriction  on  the  ability  of  any  such  Restricted  Subsidiary  to  (a)  pay  dividends  or  make  any  other  distributions  on  its  capital  stock  or  any  other  interest  or  participation  in  its  profits  owned by the Borrower or any of its Restricted Subsidiaries, or pay any Indebtedness owed to the Borrower or any  of its Restricted Subsidiaries, (b) make loans or advances to the Borrower or any of its Restricted Subsidiaries or (c)  transfer  any  of  its  properties  or  assets  to  the  Borrower  or  any  of  its  Restricted  Subsidiaries,  except  for  such  encumbrances or restrictions existing under or by reason of:                   (i)   applicable law;                  (ii)   this Agreement and the other Credit Documents and the ABL Credit Agreement and the         other definitive documentation entered into in connection therewith;                 (iii)   any Refinancing Note Documents and Refinancing Term Loan Documents;                  (iv)   customary  provisions  restricting  subletting  or  assignment  of  any  lease  governing  any         leasehold interest of the Borrower or any of its Restricted Subsidiaries;                  (v)    customary  provisions  restricting  assignment  of  any  licensing  agreement  (in  which  the         Borrower or any of its Restricted Subsidiaries is the licensee) or other contract entered into by the Borrower         or any of its Restricted Subsidiaries in the ordinary course of business;                                                   105 

 

                 (vi)   restrictions on the transfer of any asset pending the close of the sale of such asset;                 (vii)   any  agreement  or  instrument  governing  Indebtedness  assumed  in  connection  with  a         Permitted Acquisition, to the extent the relevant encumbrance or restriction was not agreed to or adopted in         connection  with,  or  in  anticipation  of,  the  respective  Permitted  Acquisition  and  does  not  apply  to  the         Borrower or any Restricted Subsidiary of the Borrower, or the properties of any such Person, other than the         Persons or the properties acquired in such Permitted Acquisition;                (viii)   encumbrances  or  restrictions  on  cash  or  other  deposits  or  net  worth  imposed  by         customers under agreements entered into in the ordinary course of business;                  (ix)   any  agreement  or  instrument  relating  to  Indebtedness  of  a  non-Credit  Party  incurred         pursuant to Section 10.04 to the extent such encumbrance or restriction only applies to such non-Credit         Party and any Subsidiaries of such non-Credit Party;                  (x)    an agreement effecting a refinancing, replacement or substitution of Indebtedness issued,         assumed or incurred pursuant to an agreement or instrument referred to in clause (vii) above; provided that         the provisions relating to such encumbrance or restriction contained in any such refinancing, replacement         or substitution agreement are no less favorable to the Borrower or the Lenders in any material respect than         the  provisions  relating  to  such  encumbrance  or  restriction  contained  in  the  agreements  or  instruments         referred to in such clause (vii);                  (xi)   restrictions on the transfer of any asset subject to a Lien permitted by Section 10.01;                 (xii)   restrictions  and  conditions  imposed  by  the  terms  of  the  documentation  governing  any         Indebtedness  of  a  Restricted  Subsidiary  of  the  Borrower  that  is  not  a  Subsidiary  Guarantor,  which         Indebtedness is permitted by Section 10.04;                (xiii)   customary provisions in joint venture agreements and other similar agreements applicable         to joint ventures permitted under Section 10.05 and applicable solely to such joint venture;                (xiv)    on or after the execution and delivery thereof, (i) the Permitted Junior Debt Documents,         (ii) the Permitted Pari Passu Notes Documents and (iii) the Permitted Pari Passu Loan Documents; and                 (xv)    negative  pledges  and  restrictions  on  Liens  in  favor  of  any  holder  of  Indebtedness  for         borrowed money permitted under Section 10.04 but only if such negative pledge or restriction expressly         permits  Liens  for  the  benefit  of  the  Administrative  Agent  and/or  the  Collateral  Agent  and  the  Secured         Creditors  with  respect  to  the  credit  facilities  established  hereunder  and  the  Obligations  under  the  Credit         Documents on a senior basis and without a requirement that such holders of such Indebtedness be secured         by  such  Liens  securing  the  Obligations  under  the  Credit  Documents  equally  and  ratably  or  on  a  junior         basis.          10.09   Business.          (a)     The Borrower will not permit at any time the business activities taken as a whole conducted by the  Borrower and its  Restricted  Subsidiaries to be  materially  different  from the business activities taken as a  whole  conducted  by  the  Borrower  and  its  Restricted  Subsidiaries  on  the  Closing  Date  (after  giving  effect  to  the  Transactions) except that the Borrower and its Restricted Subsidiaries may engage in Similar Business.          (b)     Holdings will not engage in any business other than its ownership of the capital stock of, and the  management  of,  the  Borrower  and,  indirectly,  its  Subsidiaries  and  activities  incidental  thereto; provided  that  Holdings may engage in those activities that are incidental to (i) the maintenance of its existence in compliance with  applicable law, (ii) legal, tax and accounting matters in connection with any of the foregoing or following activities,  (iii) the entering into, and performing its obligations under, this Agreement, the other Credit Documents to which it  is a party, the Advisory Agreement, the ABL Credit Agreement and the other definitive documentation entered into                                                   106 

 

  in  connection  therewith,  (iv)  the  issuance,  sale  or  repurchase  of  its  Equity  Interests  and  the  receipt  of  capital  contributions,  (v)  the  making  of  dividends  or  distributions  on  its  Equity  Interests,  (vi)  the  filing  of  registration  statements, and compliance with applicable reporting and other obligations, under federal, state or other securities  laws,  (vii)  the  listing  of  its  equity  securities  and  compliance  with  applicable  reporting  and  other  obligations  in  connection therewith, (viii) the retention of (and the entry into, and exercise of rights and performance of obligations  in  respect  of,  contracts  and  agreements  with)  transfer  agents,  private  placement  agents,  underwriters,  counsel,  accountants and other advisors and consultants, (ix) the performance of obligations under and compliance with its  certificate of incorporation and by-laws, or any applicable law, ordinance, regulation, rule, order, judgment, decree  or permit, including, without limitation, as a result of or in connection with the activities of its Subsidiaries, (x) the  incurrence and payment of its operating and business expenses and any taxes for which it may be liable (including  reimbursement to Affiliates for such expenses paid on its behalf), (xi) the consummation of the Transaction, (xii) the  making of loans to or other Investments in, or incurrence of Indebtedness from, the Borrower (or in the case of  incurrence of Indebtedness, from any Wholly-Owned Domestic Subsidiary which is a Subsidiary Guarantor) as and  to  the  extent  not  prohibited  by  this  Agreement  and  (xiii)  any  other  activity  expressly  contemplated  by  this  Agreement  to  be  engaged  in  by  Holdings,  including,  without  limitation,  repurchases  of  Indebtedness  of  the  Borrower  under  this  Agreement  pursuant  to  Section  2.19  and  Section  2.20  and  entry  into  and  performance  of  guarantees of Refinancing Notes, Permitted Junior Debt, Permitted Pari Passu  Notes, Permitted Pari Passu Loans  and,  subject  to  any  applicable  limitations  set  forth  herein,  other  permitted  Indebtedness  of  the  Borrower  and  its  Restricted Subsidiaries.          10.10   Negative Pledges.  The Borrower shall not, and shall not permit any of its Restricted Subsidiaries  that are Subsidiary Guarantors to, agree or covenant with any Person to restrict in any way its ability to grant any  Lien  on  its  assets  in  favor  of  the  Lenders,  other  than  pursuant  to  the  Intercreditor  Agreement,  any  Additional  Intercreditor Agreement, any Pari Passu Intercreditor Agreement or any other intercreditor agreement contemplated  by this agreement, and except that this Section 10.10 shall not apply to:                    (i)   any covenants contained in this Agreement or any other Credit Documents or that exist         on the Closing Date;                  (ii)   covenants existing under the ABL Credit Agreement as in effect on the Closing Date (or         as amended in a manner not prohibited by this Agreement or the other Credit Documents) and the other         credit documents pursuant thereto;                 (iii)   the  covenants  contained  in  any  Refinancing  Note  Documents,  any  Refinancing  Term         Loan Documents, any Permitted Pari Passu Notes Documents, any Permitted Pari Passu Loan Documents         or any Permitted Junior Debt (in each case so long as same do not restrict the granting of Liens to secure         Indebtedness pursuant to this Agreement);                  (iv)   covenants  and  agreements  made  in  connection  with  any  agreement  relating  to  secured         Indebtedness  permitted  by  this  Agreement  but  only  if  such  covenant  or  agreement  applies  solely  to  the         specific asset or assets to which such Lien relates;                  (v)    customary  provisions  in  leases,  subleases,  licenses  or  sublicenses  and  other  contracts         restricting the right of assignment thereof;                  (vi)   customary provisions in joint venture agreements and other similar agreements applicable         to joint ventures that are applicable solely to such joint venture;                 (vii)   restrictions imposed by law;                (viii)   customary  restrictions  and  conditions  contained  in  agreements  relating  to  any  sale  of         assets or Equity Interests pending such sale;  provided such restrictions and conditions apply only to the         Person or property that is to be sold;                                                   107 

 

                 (ix)   contractual  obligations  binding  on  a  Restricted  Subsidiary  at  the  time  such  Restricted         Subsidiary first becomes a Restricted Subsidiary, so long as such contractual obligations were not entered         into solely in contemplation of such Person becoming a Restricted Subsidiary;                  (x)    negative  pledges  and  restrictions  on  Liens  in  favor  of  any  holder  of  Indebtedness  for         borrowed money entered into after the Closing Date and otherwise permitted under Section 10.04 but only         if such negative pledge or restriction expressly permits Liens for the benefit of the Administrative Agent         and/or  the  Collateral  Agent  and  the  Secured  Creditors  with  respect  to  the  credit  facilities  established         hereunder and the Obligations under the Credit Documents on a senior basis and without a requirement that         such  holders  of  such  Indebtedness  be  secured  by  such  Liens  securing  the  Obligations  under  the  Credit         Documents equally and ratably or on a junior basis;                  (xi)   restrictions on any non-Credit Party pursuant to the terms of any Indebtedness of such         non-Credit Party permitted to be incurred hereunder;                 (xii)   restrictions on cash or other deposits imposed by customers under contracts entered into         in the ordinary course of business; and                (xiii)   any  restrictions  on  Liens  imposed  by  any  amendments,  modifications,  restatements,         renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or         obligations  referred  to  in  clauses  (i),  (ii),  (iii),  (ix),  (x)  and  (xi)  above; provided  that  such  amendments,         modifications,  restatements,  renewals,  increases,  supplements,  refundings,  replacements  or  refinancings         are,  in  the  good  faith  judgment  of  the  Borrower,  not  materially  more  restrictive,  taken  as  a  whole,  with         respect  to  such  encumbrance  and  other  restrictions  than  those  prior  to  such  amendment,  modification,         restatement, renewal, increase, supplement, refunding, replacement or refinancing.          Section 11. Events of Default.  Upon the occurrence of any of the following specified events (each, an  “Event of Default”):          11.01   Payments.  The Borrower shall (i) default in the payment when due of any principal of any Term  Loan  or (ii) default, and such  default  shall continue  unremedied for five or  more Business  Days, in the payment  when due of any interest on any Term Loan, or any Fees or any other amounts owing hereunder or under any other  Credit Document; or          11.02   Representations,  etc.   Any  representation,  warranty  or  statement  made  or  deemed  made  by  any  Credit Party herein or in any other Credit Document or in any certificate delivered to the Administrative Agent or  any Lender pursuant hereto or thereto shall prove to be untrue in any material respect on the date as of which made  or deemed made and such incorrect representation, warranty or statement (to the extent capable of being cured) shall  remain untrue in such material respect for a period of 30 days after written notice thereof to the Borrower by the  Administrative Agent or the Required Lenders; or          11.03   Covenants.  Holdings, the Borrower or any of its Restricted Subsidiaries shall (i) default in the due  performance or observance by it of any term, covenant or agreement contained in Section 9.01(f)(i), 9.04 (as to the  Borrower), 9.11, 9.14(a) or Section 10 or (ii) default in the due performance or observance by it of any other term,  covenant or agreement contained in this Agreement or in any other Credit Document (other than those set forth in  Sections 11.01 and 11.02), and such default shall continue unremedied for a period of 30 days after written notice  thereof to the Borrower by the Administrative Agent or the Required Lenders; or          11.04   Default Under Other Agreements.  (i) Holdings, the Borrower or any of its Restricted Subsidiaries  shall (x) default in any payment of any Indebtedness (other than Indebtedness under this Agreement) beyond the  period of grace, if any, provided in an instrument or agreement under which such Indebtedness was created or (y)  default  in  the observance or performance of  any agreement  or condition relating  to  any Indebtedness  (other than  Indebtedness under this Agreement) or contained in any instrument or agreement evidencing, securing or relating  thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition is to  cause, or to permit  the  holder or holders  of such Indebtedness  (or a trustee or agent  on  behalf of such  holder  or                                                   108 

 

  holders) to cause (determined without regard to whether any notice is required), any such Indebtedness to become  due prior to its stated maturity or (ii) any Indebtedness (other than Indebtedness under this Agreement) of Holdings,  the  Borrower  or  any  of  its  Restricted  Subsidiaries  shall  be  declared  to  be (or  shall  become)  due  and  payable,  or  required to be prepaid other than by a regularly scheduled required prepayment, prior to the stated maturity thereof;  provided  that  (A)  it  shall  not  be  a  Default  or  an  Event  of  Default  under  this  Section  11.04  unless  the  aggregate  principal amount of all Indebtedness as described in preceding clauses (i) and (ii) is at least equal to the Threshold  Amount, (B) the preceding clause (ii) shall not apply to Indebtedness that becomes due as a result of a voluntary sale  or transfer of, or Recovery Event with respect to, the property or assets securing such Indebtedness, if such sale or  transfer or Recovery Event is otherwise permitted hereunder and (C) an Event of Default under clause (i)(y) of this  Section 11.04 with respect to the ABL Credit Agreement shall not be an Event of Default until the earliest of (I) in  the case of a payment default, the first date on which such default shall continue unremedied for a period of 30 days  after the date of such default (during which period such default is not waived or cured), (II) the date on which the  Indebtedness under the ABL Credit Agreement has been accelerated as a result of such default and (III) the date on  which  the administrative agent  and/or  the lenders  under the  ABL Credit  Agreement  have exercised their  secured  creditor remedies as a result of such default; or          11.05   Bankruptcy,  etc.   Holdings,  the  Borrower  or  any  of  its  Restricted  Subsidiaries  (other  than  any  Immaterial Subsidiary) shall commence a voluntary case concerning itself under Title 11 of the United States Code  entitled  “Bankruptcy,”  as  now  or  hereafter  in  effect,  or  any  successor  thereto  (the  “Bankruptcy  Code”);  or  an  involuntary case is commenced against Holdings, the Borrower or any of its Restricted Subsidiaries (other than any  Immaterial  Subsidiary),  and  the  petition  is  not  dismissed  within  60  days,  after  commencement  of  the  case;  or  a  custodian  (as  defined  in  the  Bankruptcy  Code),  receiver,  receiver-manager,  trustee,  monitor  is  appointed  for,  or  takes charge of, all or substantially all of the property of Holdings, the Borrower or any of its Restricted Subsidiaries  (other than any Immaterial Subsidiary), or Holdings, the Borrower or any of its Restricted Subsidiaries (other than  any  Immaterial  Subsidiary)  commences  any  other  proceeding  under  any  reorganization,  bankruptcy,  insolvency,  arrangement, winding-up, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law  of any jurisdiction whether now or hereafter in effect relating to Holdings, the Borrower or any of its Restricted  Subsidiaries (other than any Immaterial Subsidiary), or there is commenced against Holdings, the Borrower or any  of  its  Restricted  Subsidiaries  (other  than  any  Immaterial  Subsidiary)  any  such  proceeding  which  remains  undismissed for a period of 60 days, or Holdings, the Borrower or any of its Restricted Subsidiaries (other than any  Immaterial Subsidiary)  is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such  case  or  proceeding  is  entered;  or  Holdings  or  any  of  its  Restricted  Subsidiaries  (other  than  any  Immaterial  Subsidiary) suffers any appointment of any custodian, receiver, receiver-manager, trustee, monitor or the like for it  or any substantial part of its property to continue undischarged or unstayed for a period of 60 days; or Holdings, the  Borrower or any of its Restricted Subsidiaries (other than any Immaterial Subsidiary) makes a general assignment  for the benefit of creditors; or any corporate, limited liability company or similar action is taken by the Borrower or  any  of  its  Restricted  Subsidiaries  (other  than  any  Immaterial  Subsidiary)  for  the  purpose  of  effecting  any  of  the  foregoing; or          11.06   ERISA.  (a) An ERISA Event has occurred with respect to a Plan or Multiemployer Plan which  has resulted or would reasonably be expected to result in a Material Adverse Effect, (b) there is or arises Unfunded  Pension Liability which has resulted or would reasonably be expected to result in a Material Adverse Effect, (c) a  Foreign Pension Plan has failed to comply with, or be funded in accordance with, applicable law which has resulted  or would reasonably be expected to result in a Material Adverse Effect, or (d) the Borrower or any of its Restricted  Subsidiaries  has  incurred  any  obligation  in  connection  with  the  termination  of,  or  withdrawal  from,  any  Foreign  Pension Plan that, in each case, has resulted or would reasonably be expected to result in a Material Adverse Effect;  or          11.07   Security Documents.  Any of the Security Documents shall cease to be in full force and effect, or  shall  cease  to  give  the  Collateral  Agent  for  the  benefit  of  the  Secured  Creditors  the  Liens,  rights,  powers  and  privileges purported to be created thereby (including, without limitation (to the extent provided therein), a perfected  security  interest,  to  the  extent  required  by  the  Credit  Documents,  in,  and  Lien  on,  any  material  portion  of  the  Collateral (other than as a result of the failure of the Collateral Agent to file continuation statements or the failure of  the Collateral Agent or the collateral agent under the ABL Credit Agreement to maintain possession of possessory  collateral delivered to  it),  in favor of the Collateral  Agent,  superior to and  prior to the rights of  all third Persons  (except as permitted by Section 10.01), and subject to no other Liens (except as permitted by Section 10.01)); or                                                  109 

 

         11.08   Guaranties.  Any Guaranty or any provision thereof shall cease to be in full force or effect as to  any  Guarantor  (other  than  any  Guarantor  otherwise  qualifying  as  an  Immaterial  Subsidiary,  whether  or  not  so  designated), or any Guarantor or any Person acting  for or on behalf of such Guarantor shall deny or disaffirm  in  writing such Guarantor’s obligations under the Guaranty to which it is a party or any Guarantor (other than any  Guarantor otherwise qualifying as an Immaterial Subsidiary, whether or not so designated) shall default in the due  performance or observance of any term, covenant or agreement on its part to be performed or observed pursuant to  the Guaranty to which it is a party; or          11.09   Judgments.  One or more judgments or decrees shall be entered against Holdings, the Borrower or  any  Restricted  Subsidiary  (other  than  any  Immaterial  Subsidiary)  of  the  Borrower  involving  in  the  aggregate  for  Holdings, the Borrower and its Restricted Subsidiaries (other than any Immaterial Subsidiary) a liability or liabilities  (not paid or fully covered (other than to the extent of any deductible) by a reputable and solvent insurance company  with respect to judgments for the payment of money) and such judgments and decrees either shall be final and non- appealable or shall not be vacated, discharged or stayed or bonded pending appeal for any period of 60 consecutive  days, and the aggregate amount of all such judgments and decrees (to the extent not paid or fully covered (other than  to the extent of any deductible) by such insurance company) equals or exceeds the Threshold Amount; or          11.10   Change of Control.  A Change of Control shall occur;   then  and  in  any  such  event,  and  at  any  time  thereafter,  if  any  Event  of  Default  shall  then  be  continuing,  the  Administrative Agent, upon the written request of the Required Lenders, shall by written notice to the Borrower,  take any or all of the following actions, without prejudice to the rights of the Administrative Agent, any Lender or  the holder of any Note to enforce its claims against any Credit Party (provided that, if an Event of Default specified  in Section 11.05 shall occur with respect to the Borrower, the result which would occur upon the giving of written  notice by the Administrative Agent as specified in clauses (i) and (ii) below shall occur automatically without the  giving of any such notice):   (i) declare the Total Commitment terminated,  whereupon  all Commitments of each  Lender shall forthwith terminate immediately; (ii) declare the principal of and any accrued interest in respect of all  Term Loans and the Notes and all Obligations owing  hereunder and thereunder to be, whereupon  the same shall  become, forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which  are hereby waived by each Credit Party; (iii) enforce, as Collateral Agent, all of the Liens and security interests  created pursuant to the Security Documents; and (iv) enforce each Guaranty.           Section 12. The Administrative Agent.          12.01   Appointment and Authorization.          (a)     Each of the Lenders hereby irrevocably appoints Citi to act on its behalf as the Administrative  Agent  hereunder  and  under  the  other  Credit  Documents  and  authorizes  the  Administrative  Agent  to  take  such  actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or  thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Section  12  (other  than  Sections  12.08,  12.10  and  12.11)  are  solely  for  the  benefit  of  the  Administrative  Agent  and  the  Lenders, and neither the Borrower nor any other Credit Party shall have rights as a third party beneficiary of any of  such provisions.          (b)     The Administrative Agent shall also act as the “Collateral Agent” and “security trustee” under the  Credit Documents, and each  of the  Lenders (on  behalf of itself and its  Affiliates, including in its capacity as a  potential  Guaranteed  Creditor  under  a  Designated  Interest  Rate  Protection  Agreement  or  Designated  Treasury  Services Agreement) hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of  such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any Credit  Party to secure any of the Obligations, together with such powers and discretion as are reasonably incidental thereto.   In this connection, the Administrative Agent, as “Collateral Agent” or “security trustee” and any co-agents, sub- agents  and  attorneys-in-fact  appointed  by  the  Administrative  Agent  pursuant  to  Section  12.02  for  purposes  of  holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Security Documents, or  for exercising any rights and remedies thereunder at the direction of the Administrative Agent, shall be entitled to  the benefits of all provisions of this Section 12 and Section 13 (including Section 13.01, as though such co-agents,  sub-agents and attorneys-in-fact were the “collateral agent” or “security trustee” under the Credit Documents) as if                                                  110 

 

  set forth in full  herein  with respect thereto.  Without limiting the generality of the foregoing, the  Lenders hereby  expressly authorize the Administrative Agent to execute any and all documents (including releases) with respect to  the Collateral and the rights of the Guaranteed Creditors with respect thereto, as contemplated by and in accordance  with the provisions of this Agreement and the Security Documents and acknowledge and agree that any such action  by any Agent shall bind the Lenders.          (c)     The Lenders hereby authorize the Administrative Agent to enter into the Intercreditor Agreements,  any  Additional  Intercreditor  Agreement,  any  Pari  Passu  Intercreditor  Agreement  and  any  other  intercreditor  agreement or arrangement or supplement thereto permitted under this Agreement without any further consent by any  Lender and any such intercreditor agreement shall be binding upon the Lenders.          12.02   Delegation  of  Duties.   The  Administrative  Agent  may  perform  any  and  all  of  its  duties  and  exercise its rights and powers hereunder or under any other Credit Document by or through any one or more sub- agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any  and  all  of  its  duties  and  exercise  its  rights  and  powers  by  or  through  their  respective  Related  Parties.   The  exculpatory  provisions  of  this  Section  12  shall  apply  to  any  such  sub-agent  and  to  the  Related  Parties  of  the  Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the  syndication of the credit facilities provided for herein as well as activities as Administrative Agent.          12.03   Exculpatory Provisions.  The Administrative Agent shall not have any duties or obligations except  those expressly set forth herein and in the other Credit Documents.  Without limiting the generality of the foregoing,  the Administrative Agent:                  (a)    shall  not  be  subject  to  any  fiduciary  or  other  implied  duties,  regardless  of  whether  a         Default has occurred and is continuing;                  (b)    shall  not  have  any  duty  to  take  any  discretionary  action  or  exercise  any  discretionary         powers,  except  discretionary  rights  and  powers  expressly  contemplated  hereby  or  by  the  other  Credit         Documents  that  the  Administrative  Agent  is  required  to  exercise  as  directed  in  writing  by  the  Required         Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in         the  other  Credit  Documents);  provided  that  the  Administrative  Agent  shall  not  be  required  to  take  any         action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or         that is contrary to any Credit Document or applicable law;                  (c)    shall  not, except  as expressly set  forth  herein  and in the other Credit  Documents, have         any  duty  to  disclose,  and  shall  not  be  liable  for  the  failure  to  disclose,  any  information  relating  to  the         Borrower  or  any  of  its  Affiliates  that  is  communicated  to  or  obtained  by  the  Person  serving  as  the         Administrative Agent or any of its Affiliates in any capacity;                  (d)    shall  not  be  liable  to  any  Lender  for  any  action  taken  or  not  taken  by  it  (i)  with  the         consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as         shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the         circumstances as provided in Sections 11 and 13.12) or (ii) in the absence of its own gross negligence, bad         faith  or  willful  misconduct.   The  Administrative  Agent  shall  be  deemed  not  to  have  knowledge  of  any         Default  unless  and  until  notice  describing  such  Default  is  given  to  the  Administrative  Agent  by  the         Borrower or a Lender; and                  (e)    shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,         warranty or representation made in or in connection with this Agreement or any other Credit Document, (ii)         the contents of any certificate, report or other document delivered hereunder or thereunder or in connection         herewith  or  therewith,  (iii)  the  performance  or  observance  of  any  of  the  covenants,  agreements  or  other         terms  or  conditions  set  forth  herein  or  therein  or  the  occurrence  of  any  Default,  (iv)  the  validity,         enforceability,  effectiveness  or  genuineness  of  this  Agreement,  any  other  Credit  Document  or  any  other         agreement,  instrument  or  document,  or  the  creation,  perfection  or  priority  of  any  Lien  purported  to  be         created by the Security Documents, (v) the value or the sufficiency of any Collateral, or (vi) the satisfaction                                                   111 

 

         of any condition set forth in Section 6 or elsewhere herein, other than to confirm receipt of items expressly         required to be delivered to the Administrative Agent.          12.04   Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and  shall  not  incur  any  liability  for  relying  upon,  any  notice,  request,  certificate,  consent,  statement,  instrument,  document  or  other  writing  (including  any  electronic  message,  Internet  or  intranet  website  posting  or  other  distribution) believed by  it  to  be genuine and  to have been  signed, sent  or  otherwise authenticated by  the proper  Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed  by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining  compliance with any condition hereunder to the making of a Term Loan, that by its terms must be fulfilled to the  satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender  unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of  such Term Loan.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower),  independent  accountants and  other experts selected by  it, and shall  not be liable,  in the absence of its  own  gross  negligence, bad faith or willful misconduct in selecting such counsel, accountants or other experts, for any action  taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.          12.05   No  Other  Duties,  Etc.   Anything  herein  to  the  contrary  notwithstanding,  none  of  the  Lead  Arrangers or Co-Documentation Agents shall have any powers, duties or responsibilities under this Agreement or  any of the other Credit Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender  hereunder.          12.06   Non-reliance on Administrative Agent and Other Lenders.  Each Lender acknowledges that it has,  independently  and  without  reliance  upon  the  Administrative  Agent  or  any  other  Lender  or  any  of  their  Related  Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and  decision  to  enter  into  this  Agreement.   Each  Lender  also  acknowledges  that  it  will,  independently  and  without  reliance  upon  the  Administrative  Agent  or  any  other  Lender  or  any  of  their  Related  Parties  and  based  on  such  documents and information as it shall from time to time deem appropriate, continue to make its own decisions in  taking  or  not  taking  action  under  or  based  upon  this  Agreement,  any  other  Credit  Document  or  any  related  agreement or any document furnished hereunder or thereunder.          12.07   Indemnification by the Lenders.  To the extent that the Borrower for any reason fails to pay any  amount required under Section 13.01(a) to be paid by it to the Administrative Agent or Collateral Agent (or any sub- agent of either of them), or any Related Party of any of the foregoing, each Lender severally agrees to pay to the  Administrative Agent or Collateral Agent (or any such sub-agent) or such Related Party, as the case may be, such  Lender’s pro rata share (based on the amount of then outstanding Term Loans held by each Lender or, if the Term  Loans have been repaid in full, based on the amount of outstanding Term Loans held by each Lender immediately  prior to such repayment in full) of (determined as of the time that the applicable unreimbursed expense or indemnity  payment is  sought) of  such  unpaid amount;  provided  that  the  unreimbursed  expense  or  indemnified  loss,  claim,  damage,  liability  or  related  expense,  as  the  case  may  be,  was  incurred  by  or  asserted  against  the  Administrative  Agent or Collateral Agent (or any such sub-agent) in its capacity as such, or against any Related Party of any of the  foregoing acting for the Administrative Agent or Collateral Agent (or any such sub-agent) in connection with such  capacity.  For the avoidance of doubt, this Section 12.07 does not expand or limit any obligation of any Credit Party  under this Agreement.          12.08   Rights  as  a  Lender.   The  Person  serving  as  the  Administrative  Agent  hereunder  shall  have  the  same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were  not  the  Administrative  Agent  and  the  term  “Lender”  or  “Lenders”  shall,  unless  otherwise  expressly  indicated  or  unless  the  context  otherwise  requires,  include  the  Person  serving  as  the  Administrative  Agent  hereunder  in  its  individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act  as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the  Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder  and without any duty to account therefor to the Lenders.          12.09   Administrative Agent May File Proofs of Claim; Credit Bidding.  In case of the pendency of any  proceeding  under  any  Debtor  Relief  Law  or  any  other  judicial  proceeding  relative  to  any  Credit  Party,  the                                                  112 

 

  Administrative  Agent  (irrespective  of  whether  the  principal  of  any  Term  Loan  shall  then  be  due  and  payable  as  herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have  made  any  demand  on  the  Borrower)  shall  be  entitled  and  empowered,  by  intervention  in  such  proceeding  or  otherwise:                  (a)    to file and prove a claim for the whole amount of the principal and interest owing and         unpaid in respect of the Term Loans 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  and  the         Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and         advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other         amounts  due the  Lenders and  the  Administrative  Agent  under Sections  4.01 and  13.01)  allowed in such         judicial proceeding; and                  (b)    to collect and receive any monies or other property payable or deliverable on any such         claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial  proceeding  is  hereby  authorized  by  each  Lender  to  make  such  payments  to  the  Administrative  Agent  and,  if  the  Administrative  Agent  shall  consent  to  the  making  of  such  payments  directly  to  the  Lenders,  to  pay  to  the  Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of  the  Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent  under  Sections 4.01 and 13.01.          Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to  or  accept  or  adopt  on  behalf  of  any  Lender  any  plan  of  reorganization,  arrangement,  adjustment  or  composition  affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the  claim of any Lender or in any such proceeding.          The  Secured  Creditors  hereby  irrevocably  authorize  the  Administrative  Agent,  at  the  direction  of  the  Required  Lenders,  to  credit  bid  all  or  any  portion  of  the  Obligations  (including  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  of the  United  States,  including under Sections 363, 1123 or 1129 of the Bankruptcy Code of the United States, or any similar laws in any  other jurisdictions to which a Credit Party is subject, (b) at any other sale or foreclosure or acceptance of collateral  in  lieu  of  debt  conducted  by  (or  with  the  consent  or  at  the  direction  of)  the  Administrative  Agent  (whether  by  judicial action  or otherwise) in accordance  with  any applicable law.  In connection  with any such credit  bid and  purchase, the Obligations owed to the Secured Creditors shall be entitled to be, and shall be, credit bid 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 would 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)  in  the  asset  or  assets so purchased (or in the Equity Interests or debt instruments of the acquisition vehicle or vehicles that are used  to consummate such purchase).  In connection with any such bid (i) the Administrative Agent shall be authorized to  form  one  or  more  acquisition  vehicles  to  make  a  bid,  (ii)  the  Administrative  Agent  shall  be  authorized  to  adopt  documents  providing  for  the  governance  of  the  acquisition  vehicle  or  vehicles  (provided that any actions by the  Administrative 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 the vote of the Required Lenders, irrespective of  the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders  contained  in  clauses  (a)(i)  through  (a)(vii)  of  Section  13.12  of  this  Agreement),  and  (iii)  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  debt  credit  bid  by  the  acquisition  vehicle  or  otherwise),  such  Obligations  shall  automatically  be  reassigned to the Lenders pro rata and the Equity Interests and/or debt instruments issued by any acquisition vehicle  on  account  of  the  Obligations  that  had  been  assigned  to  the  acquisition  vehicle  shall  automatically  be  cancelled,  without the need for any Secured Creditor or any acquisition vehicle to take any further action.                                                   113 

 

         12.10   Resignation  of  the  Agents.   The  Administrative  Agent  may  at  any  time  give  notice  of  its  resignation (including as Collateral Agent) to the Lenders  and the Borrower.  Upon receipt of any such  notice of  resignation, the Required Lenders shall have the right, with the Borrower’s consent (other than during the existence  of an Event of Default under Section 11.01 or 11.05), to appoint a successor, which shall be a bank with an office in  the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall  have been so appointed by the Required Lenders (and consented to by the Borrower, to the extent so required) and  shall  have  accepted  such  appointment  within  30 days  after  the  retiring  Administrative  Agent  gives  notice  of  its  resignation,  then  the  retiring  Administrative  Agent  may,  with  the  Borrower’s  consent  (other  than  during  the  existence  of  an  Event  of  Default  under  Section  11.01  or  11.05),  on  behalf  of  the  Lenders,  appoint  a  successor  Administrative  Agent  meeting  the  qualifications  set  forth  above; provided that if the Administrative Agent shall  notify the Borrower and the Lenders that no qualifying Person has accepted such appointment within such period,  then  such  resignation  shall  nonetheless  become  effective  in  accordance  with  such  notice  and  (a)  the  retiring  Administrative  Agent  shall  be  discharged  from  its  duties  and  obligations  hereunder  and  under  the  other  Credit  Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the  Lenders under any of the Credit Documents, the retiring Administrative Agent shall continue to hold such collateral  security  solely  for  purposes  of  maintaining  the  Secured  Creditors’  security  interest  thereon  until  such  time  as  a  successor Administrative Agent is appointed) and (b) all payments, communications and determinations provided to  be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such  time  as  the  Required  Lenders  (with  the  consent  of  the  Borrower,  to  the  extent  so  required)  appoint  a  successor  Administrative  Agent  as  provided  for  above  in  this  Section  12.10.   Upon  the  acceptance  of  a  successor’s  appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the  rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative  Agent shall be discharged from all of its duties and obligations hereunder or under the other Credit Documents (if  not already discharged therefrom as provided above in this Section 12.10).  After the retiring Administrative Agent’s  resignation hereunder and under the other Credit Documents, the provisions of this Section 12 and Section 13.01  shall  continue  in  effect  for  the  benefit  of  such  retiring  Administrative  Agent,  its  sub-agents  and  their  respective  Related  Parties  in  respect  of  any  actions  taken  or  omitted  to  be  taken  by  any  of  them  while  the  retiring  Administrative Agent was acting as Administrative Agent.          12.11   Collateral  Matters  and  Guaranty  Matters.   Each  of  the  Lenders  (including  in  its  capacity  as  a  potential  Guaranteed  Creditor  under  a  Designated  Interest  Rate  Protection  Agreement  or  Designated  Treasury  Services Agreement) irrevocably authorizes the Administrative Agent, at its option and in its discretion,                  (a)    to release any Lien on any property granted to or held by the Administrative Agent under         any  Credit  Document  (i)  upon  termination  of  the  Commitments  and  payment  in  full  of  all  Obligations         (other than (x) contingent indemnification obligations and (y) obligations and liabilities under Designated         Interest Rate Protection Agreements and Designated Treasury Services Agreements), (ii) that is sold or to         be sold as part of or in connection with any sale permitted hereunder or under any other Credit Document         to a Person that is not a Credit Party, (iii) that constitutes Excluded Collateral, (iv) if the property subject to         such Lien is owned by a Subsidiary Guarantor, subject to Section 13.12, upon release of such Subsidiary         Guarantor  from  its  obligations  under  the  Subsidiaries  Guaranty  pursuant  to  clause  (b)  below  or  (v)  if         approved, authorized or ratified in writing in accordance with Section 13.12;                  (b)    to release any Subsidiary Guarantor from its obligations under the Subsidiaries Guaranty         if such Person ceases to be a Restricted Subsidiary or becomes an Excluded Subsidiary as a result of a         transaction permitted hereunder; and                  (c)    to subordinate any Lien on any property granted to or held by the Administrative Agent         under  any  Credit  Document  to  the  holder  of  any  Lien  on  such  property  that  is  permitted  by  Sections         10.01(iv)(y), (vi), (xiv), (xxxviii), (xlii) or (xliii) or any other Lien that is permitted by Section 10.01 to be         senior  to  the  Lien  securing  the  Obligations  or  to  release  any  Lien  securing  the  Obligations  upon  the         incurrence of any Lien permitted by Section 10.01 with respect to specified assets if the Lien securing the         Obligations is not allowed by the documentation creating such Lien or related documentation.          Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the  Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to                                                  114 

 

  release  any  Guarantor  from  its  obligations  under  the  Guaranty  pursuant  to  this  Section  12.11.   In  each  case  as  specified  in  this  Section  12.11,  the  Administrative  Agent  will  (and  each  Lender  irrevocably  authorizes  the  Administrative  Agent  to),  at  the  Borrower’s  expense,  execute  and  deliver  to  the  applicable  Credit  Party  such  documents as such Credit Party may reasonably request to evidence the release of such item of Collateral from the  assignment and security interest granted under the Security Documents or to subordinate its interest in such item, or  to release such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the  Credit Documents and this Section 12.11.          12.12   Designated Interest Rate Protection Agreements and Designated Treasury Services Agreements.   No Guaranteed Creditor that obtains the benefits of Section 11, any Guaranty or any Collateral by virtue of the  provisions hereof or of any Guaranty or any Security Document shall have any right to notice of any action or to  consent to, direct or object to any action hereunder or under any other Credit Document or otherwise in respect of  the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in  such case, only to the extent expressly provided in the Credit Documents.  Notwithstanding any other provision of  this Section 12.12 to the contrary, the Administrative Agent shall not be required to verify the payment of, or that  other satisfactory arrangements have been made with respect to, Obligations arising under Designated Interest Rate  Protection Agreements and Designated Treasury Services Agreements unless the Administrative Agent has received  written notice of such Obligations, together with such supporting documentation as the Administrative Agent may  request, from the applicable Guaranteed Creditor.          12.13   Withholding Taxes.  To the extent required by any applicable law, the Administrative Agent may  withhold from any payment to any Lender an amount equivalent to any applicable withholding Tax.  If the Internal  Revenue  Service  or  any  other  authority  of  the  United  States  or  other  jurisdiction  asserts  a  claim  that  the  Administrative Agent did not properly withhold Tax from amounts paid to or for the account of any Lender for any  reason (including, without limitation, because the appropriate form was not delivered or not properly executed, or  because  such  Lender  failed  to  notify  the  Administrative  Agent  of  a  change  in  circumstance  that  rendered  the  exemption  from,  or  reduction  of  withholding  Tax  ineffective),  such  Lender  shall,  within  10  days  after  written  demand  therefor,  indemnify  and  hold  harmless  the  Administrative  Agent  (to  the  extent  that  the  Administrative  Agent  has  not  already  been  reimbursed  by  any  Credit  Party  pursuant  to  Section  5.04  and  without  limiting  or  expanding  the  obligation  of  any  Credit  Party  to  do  so)  for  all  amounts  paid,  directly  or  indirectly,  by  the  Administrative Agent as Taxes or otherwise, together with all expenses incurred, including legal expenses and any  other out-of-pocket expenses, whether or not such Tax was correctly or legally imposed or asserted by the relevant  Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the  Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative  Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other  Credit Document against any amount due the Administrative Agent under this Section 12.13.  The agreements in  this Section 12.13 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of  rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all other Obligations.          12.14   Certain ERISA Matters.           (a)     Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto,  to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being  a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the  benefit of the Borrower or any other Credit Party, that at least one of the following is and will be true:                                (i)     such Lender is not using “plan assets” (within the meaning of 29 CFR §                 2510.3 101, as modified by Section 3(42) of ERISA or otherwise) of one or more Benefit Plans in                 connection with such Lender’s entrance into, participation in, administration of and performance                 of the Loans, the Commitments or this Agreement,                                (ii)    the prohibited 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                                                  115 

 

                 transactions  involving  bank  collective  investment  funds)  or  PTE  96-23  (a  class  exemption  for                 certain  transactions  determined  by  in-house  asset  managers),  is  applicable,  and  the  applicable                 requirements  of  such  exemption  are  satisfied,  with  respect  to  such  Lender’s  entrance  into,                 participation  in,  administration  of  and  performance  of  the  Loans,  the  Commitments  and  this                 Agreement,                                (iii)   (A)  such  Lender  is  an  investment  fund  managed  by  a  “Qualified                 Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified                 Professional Asset Manager made the investment decision on behalf of such Lender to enter into,                 participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the                 entrance into, participation in, administration of and performance of the Loans, the Commitments                 and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-                14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of                 PTE  84-14  are  satisfied  with  respect  to  such  Lender’s  entrance  into,  participation  in,                 administration of and performance of the Loans, the Commitments and this Agreement, or                                (iv)    such other representation, warranty and covenant as may be agreed in                 writing between the Administrative Agent, in its sole discretion, and such Lender.          (b)     In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with  respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with  sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the  date such Person became a Lender party hereto, and (y) covenants, from the date such Person became a Lender party  hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and  not,  for  the  avoidance  of  doubt,  to  or  for  the  benefit  of  the  Borrower  or  any  other  Credit  Party,  that  the  Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Commitments  and  this  Agreement  (including  in  connection  with  the  reservation  or  exercise  of  any  rights  by  the  Administrative  Agent  under  this  Agreement, any Credit Document or any documents related hereto or thereto).          Section 13. Miscellaneous.          13.01   Payment of Expenses, etc.          (a)     The Credit Parties hereby jointly and severally agree, from and after the Closing Date, to:  (i) pay  all reasonable invoiced out-of-pocket costs and expenses of the Agents (limited, in the case of legal expenses, to the  reasonable  fees  and  disbursements  of  one  primary  counsel  to  all  Agents  and,  if  reasonably  necessary,  one  local  counsel in any relevant jurisdiction (which may include a single firm of counsel acting in multiple jurisdictions)) in  connection with (x) the preparation, execution and delivery of this Agreement and the other Credit Documents and  the  documents  and  instruments  referred  to  herein  and  therein,  (y)  the  administration  hereof  and  thereof  and  any  amendment, waiver or consent relating hereto or thereto (whether or not effective) and (z) their syndication efforts  with respect to this Agreement; (ii) pay all reasonable invoiced out-of-pocket costs and expenses of the Agents and  each  Lender  in  connection  with  the  enforcement  of  this  Agreement  and  the  other  Credit  Documents  and  the  documents and instruments referred to herein and therein or in connection with any refinancing or restructuring of  the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency  or bankruptcy proceedings (limited, in the case of legal expenses, to one primary counsel to all Agents and Lenders  to  be  retained  by  the  Administrative  Agent  and,  if  reasonably  necessary,  one  local  counsel  in  any  relevant  jurisdiction (which may include a single firm of counsel acting in multiple jurisdictions) and, in the case of an actual  or perceived conflict of interest where any Indemnified Person affected by such conflict informs the Borrower of  such conflict, of a single additional firm of counsel for all similarly situated affected Indemnified Persons); and (iii)  indemnify each Agent and each Lender and their respective Affiliates, and the officers, directors, employees, agents,  trustees, representatives and investment advisors of each of the foregoing (each, an “Indemnified Person”) from and  hold  each  of  them  harmless  against  any  and  all  liabilities,  obligations  (including  removal  or  remedial  actions),  losses,  damages,  penalties,  claims,  actions,  judgments,  suits,  costs,  expenses  and  disbursements  (including  reasonable attorneys’ and consultants’ fees and disbursements), but (in each case) excluding Taxes other than Taxes  that represent liabilities, obligations, losses, damages, penalties, actions, costs, expenses and disbursements arising                                                  116 

 

  from a non-Tax claim, incurred by, imposed on or assessed against any of them as a result of, or arising out of, or in  any way related to, or by reason of, (a) any investigation, litigation or other proceeding (whether or not any Agent or  any Lender is a party thereto and whether or not such investigation, litigation or other proceeding is brought by or on  behalf of any Credit Party) related to the entering into and/or performance of this Agreement or any other Credit  Document  or  the  proceeds  of  any  Term  Loans  hereunder  or  the  consummation  of  the  Transaction  or  any  other  transactions contemplated herein or in any other Credit Document or the exercise of any of their rights or remedies  provided herein or in the other Credit Documents, or (b) the actual or alleged presence of Hazardous Materials in the  Environment relating in any way to any Real Property owned, leased or operated, at any time, by the Borrower or  any of its Subsidiaries; the generation, storage, transportation, handling, Release or threat of Release of Hazardous  Materials by the Borrower or any of its Subsidiaries at any location, whether or not owned, leased or operated by the  Borrower  or  any  of  its  Subsidiaries;  the  non-compliance  by  the  Borrower  or  any  of  its  Subsidiaries  with  any  Environmental  Law  (including  applicable  permits  thereunder)  applicable  to  any  Real  Property;  or  any  Environmental  Claim  asserted  against  the  Borrower,  any  of  its  Subsidiaries  or  relating  in  any  way  to  any  Real  Property at any time owned, leased or operated by the Borrower or any of its Subsidiaries, including, in each case,  without limitation, the reasonable fees and disbursements of counsel and other consultants incurred in connection  with any such investigation, litigation or other proceeding, in all cases, whether or not caused by or arising, in whole  or in part, out of the comparative, contributory or sole negligence of the Indemnified Person (but excluding in each  case  (and  each  Indemnified  Person,  by  accepting  the  benefits  hereof,  agrees  to  promptly  refund  or  return  any  indemnity received hereunder to the extent it is later determined by a final, non-appealable judgment of a court of  competent jurisdiction that such Indemnified Person is not entitled thereto) any losses, liabilities, claims, damages or  expenses  (i)  to  the  extent  incurred  by  reason  of  the  gross  negligence,  bad  faith  or  willful  misconduct  of  the  applicable  Indemnified  Person,  any  Affiliate  of  such  Indemnified  Person  or  any  of  their  respective  directors,  officers, employees, representatives, agents, Affiliates, trustees or investment advisors, (ii) to the extent incurred by  reason  of  any  material  breach  of  the  obligations  of  such  Indemnified  Person  under  this  Agreement  or  the  other  Credit Documents (in the case of each of preceding clauses (i) and (ii), as determined by a court of competent  jurisdiction in a final and non-appealable decision) or (iii) that do not involve or arise from an act or omission by the  Borrower or Guarantors  or any  of their respective affiliates  and is brought by an  Indemnified  Person (other than  claims  against  any  Agent  solely  in  its  capacity  as  such  or  in  its  fulfilling  such  role)).   To  the  extent  that  the  undertaking to indemnify, pay or hold harmless any Agent or any Lender or other Indemnified Person set forth in  the preceding sentence may be unenforceable because it is violative of any law or public policy, the Credit Parties  shall make the maximum contribution to the payment and satisfaction of each of the indemnified liabilities which is  permissible under applicable law.          (b)     No Agent or any Indemnified Person shall be responsible or liable to any Credit Party or any other  Person for (x) any determination made by it pursuant to this Agreement or any other Credit Document in the absence  of  gross  negligence,  bad  faith  or  willful  misconduct  on  the  part  of  such  Indemnified  Person  (in  each  case,  as  determined by a court of competent jurisdiction in a final and non-appealable judgment) or (y) any damages arising  from the use by others of information or other materials obtained through electronic, telecommunications or other  information transmission systems.          (c)     No party  hereto (and no Indemnified Person or any Subsidiary or  Affiliate of Holdings or the  Borrower) shall be responsible to any other party hereto (or any Indemnified Person or any Subsidiary or Affiliate of  Holdings  or  the  Borrower)  for  any  indirect,  special,  exemplary,  incidental,  punitive  or  consequential  damages  (including, without limitation, any loss of profits, business or anticipated savings) which may be alleged as a result  of this Agreement or any other Credit Document or the financing contemplated hereby; provided that nothing in this  Section 13.01(c) shall limit the Credit Parties’ indemnity obligations to the extent that such indirect, special, punitive  or consequential damages are included in any claim by a third party unaffiliated with any Indemnified Person with  respect to which the applicable Indemnified Person is entitled to indemnification under Section 13.01(a).          13.02   Right of Setoff.          (a)     In addition to any rights now or hereafter granted under applicable law or otherwise, and not by  way of limitation of any such rights, upon the occurrence and during the continuance of an Event of Default, the  Administrative Agent, each Lender and each Guaranteed Creditor is hereby authorized at any time or from time to  time, without presentment, demand, protest or other notice of any kind to any Credit Party or to any other Person,  any such notice being hereby expressly waived, to set off and to appropriate and apply any and all deposits (general                                                  117 

 

  or  special)  (other  than  accounts  used  exclusively  for  payroll,  payroll  taxes,  fiduciary  and  trust  purposes,  and  employee benefits) and any other Indebtedness at any time held or owing by the Administrative Agent, such Lender  or such Guaranteed Creditor (including, without limitation, by branches and agencies of the Administrative Agent,  such Lender or such Guaranteed Creditor wherever located) to or for the credit or the account of the Borrower or  any  of  its  Subsidiaries  against  and  on  account  of  the  Obligations  and  liabilities  of  the  Credit  Parties  to  the  Administrative  Agent, such  Lender or such  Guaranteed  Creditor under this  Agreement  or under any of the other  Credit  Documents,  including,  without  limitation,  all  interests  in  Obligations  purchased  by  such  Lender  or  such  Guaranteed Creditor pursuant to Section 13.06(b), and all other claims of any nature or description arising out of or  connected  with  this  Agreement  or  any  other  Credit  Document,  irrespective  of  whether  or  not  the  Administrative  Agent,  such  Lender  or  such  Guaranteed  Creditor  shall  have  made  any  demand  hereunder  and  although  said  Obligations, liabilities or claims, or any of them, shall be contingent or unmatured.          (b)     NOTWITHSTANDING  THE  FOREGOING  SUBSECTION  (a),  AT  ANY  TIME  THAT  THE  LOANS  OR  ANY  OTHER  OBLIGATION  SHALL  BE  SECURED  BY  REAL  PROPERTY  LOCATED  IN  CALIFORNIA,  NO  LENDER  SHALL  EXERCISE  A  RIGHT  OF  SETOFF,  LIEN  OR  COUNTERCLAIM  OR  TAKE ANY COURT OR ADMINISTRATIVE ACTION OR INSTITUTE ANY PROCEEDING TO ENFORCE  ANY PROVISION OF THIS AGREEMENT OR ANY NOTE UNLESS IT IS TAKEN WITH THE CONSENT OF  THE REQUIRED LENDERS OR APPROVED IN WRITING BY THE ADMINISTRATIVE AGENT, IF SUCH  SETOFF OR  ACTION OR  PROCEEDING WOULD OR MIGHT (PURSUANT TO CALIFORNIA CODE OF  CIVIL  PROCEDURE  SECTIONS  580a,  580b,  580d  AND  726  OF  THE  CALIFORNIA  CODE  OF  CIVIL  PROCEDURE OR SECTION 2924 OF THE CALIFORNIA CIVIL CODE, IF APPLICABLE, OR OTHERWISE)  AFFECT OR IMPAIR THE VALIDITY, PRIORITY OR ENFORCEABILITY OF THE LIENS GRANTED TO  THE COLLATERAL AGENT PURSUANT TO THE SECURITY DOCUMENTS OR THE ENFORCEABILITY  OF THE NOTES AND OTHER OBLIGATIONS HEREUNDER, AND ANY ATTEMPTED EXERCISE BY ANY  LENDER OF ANY SUCH RIGHT WITHOUT OBTAINING SUCH CONSENT OF THE REQUIRED LENDERS  OR THE ADMINISTRATIVE AGENT SHALL BE NULL AND VOID.  THIS SUBSECTION (b) SHALL BE  SOLELY  FOR  THE  BENEFIT  OF  EACH  OF  THE  LENDERS  AND  THE  ADMINISTRATIVE  AGENT  HEREUNDER.          13.03   Notices.          (a)     Except as otherwise expressly provided herein, all notices and other communications provided for  hereunder  shall  be  in  writing  (including  telegraphic,  telex,  telecopier,  cable  communication  or  electronic  transmission) and mailed, telegraphed, telexed, telecopied, cabled, delivered or transmitted:  if to any Credit Party,  c/o  Vertiv  Group  Corporation,  1050  Dearborn  Drive,  Columbus,  OH  43085,  Attention:  Lynne  Maxeiner,  Vice  President, Global Treasury and Investor Relations; if to any Lender, at its address specified in its Administrative  Questionnaire or in writing to the Administrative Agent; and if to the Administrative Agent, at the Notice Office; or,  as to any Credit Party or the Administrative Agent, at such other address as shall be designated by such party in a  written notice to the other parties hereto.          (b)     Notices  and  other  communications  to  the  Lenders  hereunder  may  be  delivered  or  furnished  by  electronic  communications  pursuant  to  procedures  approved  by  the  Administrative  Agent; provided  that  the  foregoing shall not apply to notices pursuant to Section 2 unless otherwise agreed by the Administrative  Agent.   Each of the Administrative Agent, the Borrower or Holdings may, in its discretion, agree to accept notices and other  communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that  approval of such procedures may be limited to particular notices or communications.          (c)     (i) Notices and other communications sent to an e-mail address shall be deemed received upon the  sender’s  receipt  of  an  acknowledgement  from  the  intended  recipient  (such  as  by  the  “return  receipt  requested”  function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted  to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its  e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available  and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, 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 for the recipient.                                                   118 

 

         13.04   Benefit of Agreement; Assignments; Participations, etc.          (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,  except  that  (i) the  Borrower  may  not  assign  or  otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and  any  attempted  assignment  or  transfer  by  the  Borrower  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  13.04 and any assignment or transfer not in accordance with this Section 13.04 shall be null and void.  Nothing in  this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,  their respective successors and assigns permitted hereby, Participants (to the extent provided in paragraph (c) of this  Section 13.04) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative  Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.          (b)     (i)  Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or  more Eligible Transferees all or a portion of its rights and obligations under this  Agreement (including all or a  portion of its Commitments and Term Loans at the time owing to it) with the prior written consent (such consent not  to be unreasonably withheld) of:                  (A)    the  Borrower;  provided  that,  the  Borrower  shall  be  deemed  to  have  consented  to  an         assignment unless it shall have objected thereto by written notice to the Administrative Agent within ten         (10) Business Days after having received notice thereof; provided that no consent of the Borrower shall be         required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of         Default has occurred and is continuing under Section 11.01 or 11.05, any other Eligible Transferee;                  (B)    the Administrative Agent; provided that no consent of the Administrative Agent shall be         required for an assignment to a Lender, an Affiliate of a Lender or an Approved Fund;          (ii)    Assignments shall be subject to the following additional conditions:                  (A)    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 Term Loans of any         Tranche,  the  amount  of  the  Commitment  or  Term  Loans  of  the  assigning  Lender  subject  to  each  such         assignment (determined as of the date the Assignment and Assumption with respect to such assignment is         delivered to the Administrative Agent) shall not be less than $250,000 unless each of the Borrower and the         Administrative Agent otherwise consent; provided that no such consent of the Borrower shall be required if         an Event of Default has occurred and is continuing under Section 11.01 or 11.05;                  (B)    each partial assignment shall be made as an assignment of a proportionate part of all the         assigning  Lender’s  rights  and  obligations  under  this  Agreement;  provided  that  this  clause  shall  not  be         construed  to  prohibit  the  assignment  of  a  proportionate  part  of  all  the  assigning  Lender’s  rights  and         obligations in respect of one Tranche of Commitments or Term Loans;                   (C)    the parties to each assignment shall execute and deliver to the Administrative Agent (x)         an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment         and Assumption by reference pursuant to a Platform as to which the Administrative Agent and the parties         to  the  Assignment  and  Assumption  are  participants,  together  with  the  payment  by  the  assignee  of  a         processing and recordation fee of $3,500; and                  (D)    the  assignee,  if  it  shall  not  be  a  Lender,  shall  deliver  to  the  Administrative  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 Credit Parties         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.                                                   119 

 

         (iii)  Subject to acceptance and recording thereof pursuant to clause (b)(iv) below, 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 Sections 2.10, 5.04  and 13.01).   Any  assignment  or  transfer by  a Lender of  rights or obligations  under this  Agreement  that does not  comply  with  this  Section 13.04  shall  be  treated  for  purposes  of  this  Agreement  as  a  sale  by  such  Lender  of  a  participation in such rights and obligations in accordance with clause (c) below.          (iv)    The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall  maintain  at  one  of  its  offices  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 related  interest) of the Term Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).   The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent  and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a  Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be  available for inspection by the Borrower and, as to its own positions only, any Lender, at any reasonable time and  from time to time upon reasonable prior notice.          (v)     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 a Platform as to which the Administrative 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 this clause (b) and any written  consent to such assignment required by this clause (b), the Administrative 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 this Agreement,  the  Administrative  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 clause (v).          (c)     Any  Lender  may,  without  the  consent  of  the  Borrower  or  the  Administrative  Agent,  sell  participations to one or more Eligible Transferees (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 the Term Loans owing to it);  provided that (A) such Lender’s obligations under this Agreement shall remain  unchanged; (B) such Lender shall  remain solely responsible to the other parties hereto for the performance of such obligations; and (C) the Borrower,  the  Administrative  Agent  and  the  other  Lenders  shall  continue  to  deal  solely  and  directly  with  such  Lender  in  connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant  to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this  Agreement and to approve any amendment, modification or waiver of any provision of this  Agreement; provided  that such agreement  or instrument  may provide that such Lender  will  not,  without  the consent  of  the Participant,  agree to any amendment, modification or waiver that requires the consent of each Lender or each adversely affected  Lender and that directly affects such Participant.  The Borrower agrees that each Participant shall be entitled to the  benefits of Sections 2.10 and 5.04 (subject to the requirements and limitations therein (it being understood that the  documentation required under Sections 5.04(b) and (c) shall be delivered solely to the participating Lender)) to the  same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause (b) of this Section  13.04; provided that such Participant (A) shall be subject to the provisions of Section 2.12 as if it were an assignee  clause (b) of this Section 13.04; and (B) shall not be entitled to receive any greater payment under Section 2.10 or  5.04, with respect to any participation, than its participating Lender would have been entitled to receive, except to  the  extent  such  entitlement  to  receive  a  greater  payment  results  from  a  Change  in  Law  that  occurs  after  the  Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s  request  and  expense,  to  use  reasonable  efforts  to  cooperate  with  the  Borrower  to  effectuate  the  provisions  of  Section 2.13 with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled                                                  120 

 

  to  the  benefits  of  Section 9.08  as  though  it  were  a  Lender; provided  that  such  Participant  shall  be  subject  to  Section 2.12 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose  as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the  principal  amounts  (and  related  interest)  of  each  Participant’s  interest  in  the  Loans  or  other  obligations  under  the  Credit Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or  any  portion  of  the  Participant  Register  (including  the  identity  of  any  Participant  or  any  information  relating  to  a  Participant’s interest in any Commitments or Term Loan or its other obligations under any Credit Document) to any  Person except  to  the extent  such  disclosure is  necessary  to  establish  that  such  Commitment, Term  Loan  or other  obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in  the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose  name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement  notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as  Administrative Agent) shall have no responsibility for maintaining a Participant Register.          (d)     Holdings,  the  Borrower  and  its  Restricted  Subsidiaries  shall  also  be  entitled  to  purchase  (from  Lenders) outstanding principal of Term Loans in accordance with the provisions of Sections 2.19 and 2.20, which  purchases shall be evidenced by assignments (in form reasonably satisfactory to the Administrative Agent) from the  applicable  Lender  to  the  Borrower.   No  such  transfer  or  assignment  shall  be  effective  until  recorded  by  the  Administrative Agent (which the Administrative Agent agrees to promptly record) on the Register pursuant to clause  (b) above.  All Term Loans purchased pursuant  to Section 2.19 and 2.20 shall be immediately and automatically  cancelled  and  retired,  and  the  Borrower  shall  in  no  event  become  a  Lender  hereunder.   To  the  extent  of  any  assignment to a Borrower as described in this clause (d), the assigning Lender shall be relieved of its obligations  hereunder with respect to the assigned Term Loans.          (e)     Nothing in this Agreement shall prevent or prohibit any Lender from pledging its Term Loans and  Notes hereunder to a  Federal Reserve Bank or central banking  authority  in  support  of borrowings  made by  such  Lender  from  such  Federal  Reserve  Bank  or  central  banking  authority  and,  with  prior  notification  to  the  Administrative Agent (but without the consent of the Administrative Agent or the Borrower), any Lender which is a  fund may pledge all or any portion of its Term Loans and Notes to its trustee or to a collateral agent providing credit  or credit support to such Lender in support of its obligations to such trustee, such collateral agent or a holder of such  obligations, as the case may be.  No pledge pursuant to this clause (e) shall release the transferor Lender from any of  its obligations hereunder.          (f)     Each  Lender  acknowledges  and  agrees  to  comply  with  the  provisions  of  this  Section  13.04  applicable to it as a Lender hereunder.          (g)     [Reserved].          (h)     If  any  Borrower  wishes  to  replace  the  Term  Loans  or  Commitments  with  Term  Loans  or  Commitments  having  different  terms,  it  shall  have  the  option,  with  the  consent  of  the  Administrative  Agent  and  subject to at least three (3) Business Days’ advance notice to the Lenders of such Term Loans or holdings such  Commitments, instead of prepaying the Term Loans or reducing or terminating the Commitments to be replaced, to  (i) require such Lenders to assign such Term Loans or Commitments to the Administrative Agent or its designees  and  (ii)  amend  the  terms  thereof  in  accordance  with  Section  13.12  (with  such  replacement,  if  applicable,  being  deemed  to  have  been  made  pursuant  to  Section  13.12).   Pursuant  to  any  such  assignment,  all  Term  Loans  and  Commitments to be replaced shall be purchased at par (allocated among the applicable Lenders in the same manner  as would be required if such Term Loans were being optionally prepaid or such Commitments were being optionally  reduced or terminated by the Borrower), accompanied by payment of any accrued interest and fees thereon and any  amounts  owing  pursuant  to  Section  2.08.   By  receiving  such  purchase  price,  the  applicable  Lenders  shall  automatically  be  deemed  to  have  assigned  such  Term  Loans  or  Commitments  pursuant  to  the  terms  of  an  Assignment  and  Assumption,  and  accordingly  no  other  action  by  such  Lenders  shall  be  required  in  connection  therewith.  The provisions of this paragraph are intended to facilitate the maintenance of the perfection and priority  of existing security interests in the Collateral during any such replacement.          (i)     The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the  Administrative  Agent,  to  provide  to  any  requesting  Lender,  the  list  of  Disqualified  Lenders  provided  to  the                                                  121 

 

  Administrative  Agent  by  the  Borrower  and  any  updates  thereto.   The  Borrower  hereby  agrees  that  any  such  requesting Lender may share the list of Disqualified Lenders with any potential assignee, transferee or participant.   Notwithstanding the foregoing, each Credit Party and the Lenders acknowledge and agree that the Administrative  Agent  shall  not  have  any  responsibility  or  obligation  to  determine  whether  any  Lender  or  potential  Lender  is  a  Disqualified Lender (other than with respect to assignments or participations of its Loans and Commitments, if any)  and the Administrative Agent shall have no liability with respect to any assignment, transfer or participation made to  a Disqualified Lender (other than with respect to assignments or participations of its Loans and Commitments, if  any).          13.05   No Waiver; Remedies Cumulative.  No failure or delay on the part of the Administrative Agent,  the Collateral Agent or any Lender in exercising any right, power or privilege hereunder or under any other Credit  Document and no course of dealing between the Borrower or any other Credit Party and the Administrative Agent,  the Collateral Agent or any Lender shall operate as a waiver thereof; nor shall any single or partial exercise of any  right,  power  or  privilege  hereunder  or  under  any  other  Credit  Document  preclude  any  other  or  further  exercise  thereof  or  the  exercise  of  any  other  right,  power  or  privilege  hereunder  or  thereunder.   The  rights,  powers  and  remedies herein or in any other Credit Document expressly provided are cumulative and not exclusive of any rights,  powers or remedies which the Administrative Agent, the Collateral Agent or any Lender would otherwise have.  No  notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or  demand  in  similar  or  other  circumstances  or  constitute  a  waiver  of  the  rights  of  the  Administrative  Agent,  the  Collateral Agent or any Lender to any other or further action in any circumstances without notice or demand.          13.06   Payments Pro Rata.          (a)     The Administrative Agent agrees that promptly after its receipt of each payment from or on behalf  of any Credit Party in respect of any Obligations of such Credit Party, it shall, except as otherwise provided in this  Agreement, distribute such payment to the Lenders (other than any Lender that has consented in writing to waive its  pro rata share of such payment) pro rata based upon their respective shares, if any, of the Obligations with respect  to which such payment was received.            (b)     Each of the Lenders agrees that, if it should receive any amount hereunder (whether by voluntary  payment, by realization upon security, by the exercise of the right of setoff or banker’s lien, by counterclaim or cross  action,  by  the  enforcement  of  any  right  under  the  Credit  Documents,  or  otherwise)  which  is  applicable  to  the  payment of the principal of, or interest on, the Term Loans or Fees, of a sum which with respect to the related sum  or sums received by other Lenders is in a greater proportion than the total of such Obligation then owed and due to  such Lender bears to the total of such Obligation then owed and due to all of the Lenders immediately prior to such  receipt, then such Lender receiving such excess payment shall purchase for cash without recourse or warranty from  the other Lenders an interest  in the Obligations of the respective Credit Party to such  Lenders in such amount as  shall result in a proportional participation by all of the Lenders in such amount; provided that if all or any portion of  such excess amount is thereafter recovered from such Lender, such purchase shall be rescinded and the purchase  price restored to the extent of such recovery, but without interest.          (c)     Notwithstanding  anything  to  the  contrary  contained  herein,  the  provisions  of  the  preceding  Sections 13.06(a) and (b) shall be subject to (x) the express provisions of this Agreement which require, or permit,  differing  payments  to  be  made  to  Non-Defaulting  Lenders  as  opposed  to  Defaulting  Lenders,  (y)  the  express  provisions of this Agreement which permit disproportionate payments with respect to various of the Tranches as,  and to the extent, provided herein, and (z) any other provisions which permit disproportionate payments with respect  to the Term Loans as, and to the extent, provided therein.          13.07   Calculations; Computations.          (a)     The  financial  statements  to  be  furnished  to  the  Lenders  pursuant  hereto  shall  be  made  and  prepared in accordance with U.S. GAAP consistently applied throughout the periods involved (except as set forth in  the notes thereto); provided that to the extent expressly provided herein, certain calculations shall be made on a Pro  Forma Basis; provided further, that if the Borrower notifies the Administrative Agent that the Borrower wishes to  amend any leverage  calculation or any financial  definition used therein to implement the effect of any change in  U.S.  GAAP  or  the  application  thereof  occurring  after  the  Closing  Date  on  the  operation  thereof  (or  if  the                                                  122 

 

  Administrative  Agent  notifies  the  Borrower  that  the  Required  Lenders  wish  to  amend  any  leverage  test  or  any  financial definition used therein for such purpose), then the Borrower and the Administrative Agent shall negotiate  in good faith to amend such leverage test or the definitions used therein (subject to the approval of the Required  Lenders) to preserve the original intent thereof in light of such changes in  U.S. GAAP; provided, further that all  determinations  made  pursuant  to  any  applicable  leverage  test  or  any  financial  definition  used  therein  shall  be  determined  on  the  basis  of  U.S.  GAAP  as  applied  and  in  effect  immediately  before  the  relevant  change  in  U.S.  GAAP or the application thereof became effective, until such leverage test or such financial definition is amended.   Notwithstanding any other provision contained herein, (i) all terms of an accounting or financial nature used herein  shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect  to  Statement  of  Financial  Accounting  Standards 141R  or  ASC 805  (or  any  other  financial  accounting  standard  having a similar result or effect) and (ii) the accounting for any lease shall be based on the Borrower’s treatment  thereof  in  accordance  with  U.S.  GAAP  as  in  effect  on  December  15,  2018  and  without  giving  effect  to  any  subsequent changes in U.S. GAAP (or the required implementation of any previously promulgated changes in U.S.  GAAP) relating to the treatment of a lease as an operating lease or capitalized lease.          (b)     All  computations  of  interest  (other  than  interest  based  on  the  Prime  Rate)  and  other  Fees  hereunder shall be made on the basis of a year of 360 days for the actual number of days (including the first day but  excluding  the last  day)  occurring  in  the period for  which  such interest or Fees  are  payable.  All  computations of  interest based determined by reference to the Prime Rate shall be based on a 365-day or 366-day year, as the case  may be.          (c)     The calculation of any  financial ratios under this Agreement shall be calculated by dividing the  appropriate component by the other component, carrying the result to one place more than the number of places by  which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding- down if there is no nearest number).          13.08   GOVERNING  LAW;  SUBMISSION  TO  JURISDICTION;  VENUE;  WAIVER  OF  JURY  TRIAL.          (a)     THIS AGREEMENT AND  THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND  OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE  PROVIDED  IN  THE  RELEVANT  SECURITY  DOCUMENT,  BE  CONSTRUED  IN  ACCORDANCE  WITH  AND  BE  GOVERNED  BY  THE  LAW  OF  THE  STATE  OF  NEW  YORK.   ANY  LEGAL  ACTION  OR  PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT (EXCEPT  THAT,  (X)  IN  THE  CASE  OF  ANY  MORTGAGE  OR  OTHER  SECURITY  DOCUMENT,  PROCEEDINGS  MAY  ALSO  BE  BROUGHT  BY  THE  ADMINISTRATIVE  AGENT  OR  COLLATERAL  AGENT  IN  THE  STATE IN WHICH THE RELEVANT MORTGAGED PROPERTY OR COLLATERAL IS LOCATED OR ANY  OTHER RELEVANT JURISDICTION AND (Y) IN THE CASE OF ANY BANKRUPTCY, INSOLVENCY OR  SIMILAR  PROCEEDINGS  WITH  RESPECT  TO  ANY  CREDIT  PARTY,  ACTIONS  OR  PROCEEDINGS  RELATED  TO  THIS  AGREEMENT  AND  THE  OTHER  CREDIT  DOCUMENTS  MAY  BE  BROUGHT  IN  SUCH COURT HOLDING SUCH BANKRUPTCY, INSOLVENCY OR SIMILAR PROCEEDINGS) MAY BE  BROUGHT IN THE COURTS OF THE STATE OF NEW  YORK OR OF THE UNITED STATES FOR THE  SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF  NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT  DOCUMENT, EACH OF THE PARTIES HERETO OR THERETO HEREBY IRREVOCABLY ACCEPTS FOR  ITSELF  AND  IN  RESPECT  OF  ITS  PROPERTY,  GENERALLY  AND  UNCONDITIONALLY,  THE  EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS.  EACH PARTY HERETO HEREBY FURTHER  IRREVOCABLY  WAIVES  ANY  CLAIM  THAT  ANY  SUCH  COURTS  LACK  PERSONAL  JURISDICTION  OVER  IT,  AND  AGREES  NOT  TO  PLEAD  OR  CLAIM,  IN  ANY  LEGAL  ACTION  PROCEEDING  WITH  RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE  AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER IT.  EACH  PARTY  HERETO  IRREVOCABLY  CONSENTS  TO  THE  SERVICE  OF  PROCESS  OUT  OF  ANY  OF  THE  AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES  THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, SUCH PARTY, AS THE CASE  MAY  BE,  AT  ITS  ADDRESS  SET  FORTH  OPPOSITE  ITS  SIGNATURE  BELOW,  SUCH  SERVICE  TO  BECOME  EFFECTIVE  30  DAYS  AFTER  SUCH  MAILING.   EACH  PARTY  HERETO  IRREVOCABLY                                                  123 

 

  WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES  AND  AGREES  NOT  TO  PLEAD  OR  CLAIM  IN  ANY  ACTION  OR  PROCEEDING  COMMENCED  HEREUNDER  OR  UNDER  ANY  OTHER  CREDIT  DOCUMENT  THAT  SERVICE  OF  PROCESS  WAS  IN  ANY  WAY  INVALID  OR  INEFFECTIVE.   NOTHING  HEREIN  SHALL  AFFECT  THE  RIGHT  OF  ANY  PARTY  HERETO  TO  SERVE  PROCESS  IN  ANY  OTHER  MANNER  PERMITTED  BY  LAW  OR  TO  COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OTHER SUCH PARTY  IN ANY OTHER JURISDICTION.          (b)     EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT  MAY  NOW  OR  HEREAFTER  HAVE  TO  THE  LAYING  OF  VENUE  OF  ANY  OF  THE  AFORESAID  ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY  OTHER CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND  HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH  COURT  THAT  ANY  SUCH  ACTION  OR  PROCEEDING  BROUGHT  IN  ANY  SUCH  COURT  HAS  BEEN  BROUGHT IN AN INCONVENIENT FORUM.          (c)     EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL  RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF  OR  RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY.          13.09   Counterparts.   This  Agreement  may  be  executed  in  any  number  of  counterparts  and  by  the  different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original,  but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the  parties hereto shall be lodged with the Borrower and the Administrative Agent.          13.10   [Reserved].          13.11   Headings Descriptive.  The headings of the several Sections and subsections of this Agreement are  inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this  Agreement.          13.12   Amendment or Waiver; etc.          (a)     Except as expressly contemplated hereby, neither this Agreement nor any other Credit Document  nor  any  terms  hereof  or  thereof  may  be  changed,  waived,  discharged  or  terminated  unless  such  change,  waiver,  discharge or termination is in writing signed by the Credit Parties party hereto or thereto, the Administrative Agent  and the  Required Lenders  (although  additional parties  may  be added  to (and  annexes  may be  modified to reflect  such additions) the Subsidiaries Guaranty and the Security Documents in accordance with the provisions hereof and  thereof without the consent of the other Credit Parties party thereto or the Required Lenders) or the Administrative  Agent  with  the  written  consent  of  the  Required  Lenders;  provided  that  no  such  change,  waiver,  discharge  or  termination shall (i) without the prior written consent of each Lender directly and adversely affected thereby, extend  the final scheduled maturity of any Term Loan, or reduce the rate or extend the time of payment of interest or fees  thereon; except in connection with the waiver of the applicability of any post-default increase in interest rates, (ii)  except as otherwise expressly provided in the Security Documents, release all or substantially all of the Collateral  without  the  prior  written  consent  of  each  Lender,  (iii)  except  as  otherwise  provided  in  the  Credit  Documents,  releases all or substantially all of the value of the Guaranty by the Guarantors without the prior written consent of  each  Lender,  (iv)  amend,  modify  or  waive  any  provision  of  this  Section  13.12(a)  or  Section  13.06  (except  for  technical amendments with respect to additional extensions of credit pursuant to this Agreement which afford the  protections to such additional extensions of credit of the type provided to the Lenders of the Initial Term Loans on  the Closing Date), in each case, without the prior written consent of each Lender directly and adversely affected  thereby,  (v)  reduce  the  percentage  specified  in  the  definition  of  “Required  Lenders”  without  the  prior  written  consent of each Lender (it being understood that additional extensions of credit pursuant to this Agreement that are  permitted  by  the  terms  hereof  or  that  have  been  consented  to  by  the  Required  Lenders  may  be  included  in  the  determination of the Required Lenders, as applicable), (vi) consent to the assignment or transfer by the Borrower of  any of its rights and obligations under this Agreement without the consent of each Lender or (vii) amend Section                                                  124 

 

  2.14 the effect of which is to extend the maturity of any Term Loan without the prior written consent of each Lender  directly  and  adversely  affected  thereby; provided, further,  that  no  such  change,  waiver,  discharge  or  termination  shall (1) increase the Commitments of any Lender over the amount thereof then in effect without the consent of such  Lender (it being understood that waivers or modifications of conditions precedent, covenants, Defaults or Events of  Default or of a mandatory reduction in the Total Commitment shall not constitute an increase of the Commitment of  any Lender, and that an increase in the available portion of any Commitment of any Lender shall not constitute an  increase  of  the  Commitment  of  such  Lender),  (2)  without  the  consent  of  each  Agent  adversely  affected  thereby,  amend, modify or waive any provision of Section 12 or any other provision of any Credit Document as the same  relates to the rights  or  obligations  of  such  Agent, (3)  without the consent of Collateral Agent, amend,  modify  or  waive any provision relating to the rights or obligations  of the  Collateral  Agent, (4) without the consent of  the  Majority  Lenders  of  each  Tranche  which  is  being  allocated  a  lesser  prepayment,  repayment  or  commitment  reduction, alter the required application of any prepayments or repayments (or commitment reduction), as between  the various Tranches, pursuant to Section 5.01 or 5.02 (although (x) the Required Lenders may waive, in whole or in  part, any such prepayment, repayment or commitment reduction, so long as the application, as amongst the various  Tranches, of any such prepayment, repayment or commitment reduction which is still required to be made is not  altered and (y) any conversion of any Tranche of Term Loans into another Tranche of Term Loans hereunder in like  principal amount and any other conversion of any Tranche of Term Loans into Extended Term Loans pursuant to an  Extension Amendment shall not be considered a “prepayment” or “repayment” for purposes of this clause (4)), (5)  without  the  consent  of  the  Majority  Lenders  of  the  respective  Tranche  affected  thereby,  amend  the  definition  of  “Majority Lenders” (it being understood that, with the consent of the Required Lenders, additional extensions of  credit pursuant to this Agreement may be included in the determination of the Majority Lenders) or (6) without the  consent  of  the  Supermajority  Lenders  of  the  relevant  Tranche,  reduce  the  amount  of  or  extend  the  date  of,  any  Scheduled Repayment (except that, if additional Term Loans are made pursuant to a given Tranche, the scheduled  repayments of such Tranche may be increased on a proportionate basis without the consent otherwise required by  this clause (6)), or amend the definition of “Supermajority Lenders” (it being understood that, with the consent of  the  Required  Lenders,  additional  extensions  of  credit  pursuant  to  this  Agreement  may  be  included  in  the  determination of the Supermajority Lenders); and provided further that only the consent of the Administrative Agent  shall  be  necessary  for  amendments  described  in  clause  (x)  of  the  first  proviso  contained  in  clause  (vi)  of  the  definition of “Permitted Junior Loans.”          (b)     If,  in  connection  with  any  proposed  change,  waiver,  discharge  or  termination  of  any  of  the  provisions of this  Agreement as contemplated by clauses (i) through (v), inclusive, of the first proviso to Section  13.12(a),  the  consent  of  the  Required  Lenders  is  obtained  but  the  consent  of  one  or  more  of  such  other  Lenders  whose consent is required is not obtained, then the Borrower shall have the right, so long as all non-consenting  Lenders whose individual consent is required are treated as described in either clauses (A) or (B) below, to either  (A) replace each such non-consenting Lender or Lenders with one or more Replacement Lenders pursuant to Section  2.13 so long as at the time of such replacement, each such Replacement Lender consents to the proposed change,  waiver,  discharge  or  termination  or  (B)  terminate  such  non-consenting  Lender’s  Commitments  and/or  repay  the  outstanding Term Loans of each Tranche of such Lender in accordance with Section 5.01(b); provided that, unless  the Commitments that are terminated, and Term Loans repaid, pursuant to the preceding clause (B) are immediately  replaced  in  full  at  such  time  through  the  addition  of  new  Lenders  or  the  increase  of  outstanding  Term  Loans  of  existing  Lenders  (who  in each  case  must specifically  consent  thereto),  then in the case  of any  action pursuant to  preceding clause (B) the Required Lenders (determined after giving effect to the proposed action) shall specifically  consent  thereto;  provided, further,  that  in  any  event  the  Borrower  shall  not  have  the  right  to  replace  a  Lender,  terminate its Commitments or repay its Term Loans solely as a result of the exercise of such Lender’s rights (and the  withholding of any required consent by such Lender) pursuant to the second proviso to Section 13.12(a).          (c)     Notwithstanding  anything  to  the  contrary  contained  in  clause  (a)  of  this  Section  13.12,  (i)  the  Borrower, the Administrative Agent and each applicable Incremental Term Loan Lender may, without the consent  of  any  other  Lender,  in  accordance  with  the  provisions  of  Section  2.15,  enter  into  an  Incremental  Term  Loan  Commitment Agreement; provided that after the execution and delivery by the Borrower, the Administrative Agent  and  each  such  Incremental  Term  Loan  Lender  of  such  Incremental  Term  Loan  Commitment  Agreement,  such  Incremental  Term  Loan  Commitment  Agreement,  may  thereafter  only  be  modified  in  accordance  with  the  requirements of clause (a) above of this Section 13.12 and (ii) an Incremental Term Loan Commitment Agreement  may, without the consent of any other Credit Party, Agent or Lender, effect such amendments to this Agreement and  the  other  Credit  Documents  as  may  be  necessary  or  appropriate,  in  the  reasonable  opinion  of  the  Administrative                                                  125 

 

  Agent  and  the  Borrower,  to  effect  the  provisions  of  Section  2.15  and  the  Lenders  expressly  authorize  the  Administrative  Agent  to  enter  into  every  such  Incremental  Term  Loan  Commitment  Agreement,  including  any  amendments that are not materially adverse to the interests of any Lender that amend this Agreement to increase the  interest  rate  margin,  increase  the  interest  rate  floor,  increase,  extend  or  add  any  prepayment  premium,  increase,  extend  or  add  any  call  protection  or  increase  the  amortization  schedule  with  respect  to  any  existing  Tranche  of  Loans in order to cause any Incremental Term Loans to be fungible with such existing Tranche of Loans.          (d)     Notwithstanding anything to the contrary in clause (a) above of this Section 13.12, this Agreement  may be amended (or amended and restated) (i) with the written consent of the Required Lenders, the Administrative  Agent  and  the  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 ratably in the benefits of this Agreement and the other Credit Documents with the Term Loan and the accrued  interest and fees in respect thereof and (y) to include appropriately the Lenders holding such credit facilities in any  determination of the Required Lenders and (ii) with the written consent of the Administrative Agent, the Borrower  and  the  Refinancing  Term  Loan  Lenders,  this  Agreement  and  the  other  Credit  Documents  shall  be  amended  (or  amended and restated) in connection with any refinancing facilities permitted pursuant to Section 2.18.          (e)     Notwithstanding  anything  to  the  contrary  herein,  any  fee  letter  may  be  amended,  or  rights  and  privileges thereunder waived, in a writing executed only by the parties thereto.          (f)     Anything herein to the contrary notwithstanding, during such period as a Lender is a Defaulting  Lender,  to  the  fullest  extent  permitted  by  applicable  law,  such  Lender  will  not  be  entitled  to  vote  in  respect  of  amendments,  waivers  and  consents  hereunder  and  the  Commitment  and  the  outstanding  Term  Loans  or  other  extensions of credit of such Lender hereunder will not be taken into account in determining whether the Majority  Lenders, the Required Lenders or all of the Lenders, as required, have approved any such amendment,  waiver or  consent (and the definitions of “Majority Lenders” and “Required Lenders” will automatically be deemed modified  accordingly for the duration of such period); provided that any such amendment or waiver that would increase or  extend the term of the Commitment of such Defaulting Lender, extend the date fixed for the payment of principal or  interest owing to such Defaulting Lender hereunder, reduce the principal amount of any obligation owing to such  Defaulting Lender, reduce the amount of or the rate or amount of interest on any amount owing to such Defaulting  Lender or of any fee payable to such Defaulting Lender hereunder, or alter the terms of this proviso, will require the  consent of such Defaulting Lender.          (g)     Further, notwithstanding anything to the contrary contained in this Section 13.12, if following the  Closing Date, the Administrative Agent and any Credit Party shall have jointly identified an obvious error or any  error or omission of a technical or immaterial nature, in each case, in any provision of the Credit Documents, then  the Administrative Agent and the Credit Parties shall be permitted to amend such provision and such amendment  shall become effective without any further action or consent of any other party to any Credit Documents if the same  is  not  objected  to  in  writing  by  the  Required  Lenders  within  five  (5)  Business  Days  following  receipt  of  notice  thereof.          13.13   Survival.   All  indemnities  set  forth  herein  including,  without  limitation,  in  Sections  2.10,  2.11,  5.04, 12.07 and 13.01 shall survive the execution, delivery and termination of this Agreement and the Notes and the  making and repayment of the Obligations.          13.14   [Reserved].          13.15   Confidentiality.          (a)     Subject to the provisions of clause (b) of this Section 13.15, each Agent, Lead Arranger and  Lender agrees that it will not disclose without the prior consent of the Borrower (other than to its affiliates and its  and their respective directors, officers, employees, auditors, advisors or counsel or to another Lender if such Lender  or such Lender’s holding or parent company in its reasonable discretion determines that any such party should have  access to such information in connection with the transactions contemplated by this Agreement and such Agent’s,  Lead Arranger’s or Lender’s role hereunder or investment in the Term Loans; provided such Persons shall be subject  to the provisions of this Section 13.15 to the same extent as such Lender (or language substantially similar to this                                                  126 

 

  Section 13.15(a))) any non-public information with respect to the Borrower or any of its Subsidiaries (other than, for  the avoidance of doubt, information pertaining to this Agreement routinely provided by arrangers to data service  providers, including league table providers, that serve the lending industry) which is now or in the future furnished  by or on behalf of any Credit Party pursuant to this Agreement or any other Credit Document; provided that each  Agent, Lead Arranger and Lender may disclose any such information (i) as has become generally available to the  public other than by virtue of a breach of this Section 13.15(a) by such Agent, Lead Arranger or Lender, (ii) as may  be required or appropriate in any report, statement or testimony submitted to any municipal, state or Federal or  supranational regulatory body having or claiming to have jurisdiction over such Agent, Lead Arranger or Lender or  to the Federal Reserve Board or other central banking authority or the Federal Deposit Insurance Corporation or  similar organizations (whether in the United States or elsewhere) or their successors, (iii) as may be required or  appropriate in respect to any summons or subpoena or in connection with any litigation, (iv) in order to comply with  any law, order, regulation or ruling applicable to such Agent, Lead Arranger or Lender, (v) in the case of any Lead  Arranger or Lender, to the Administrative Agent or the Collateral Agent, (vi) to any prospective or actual direct or  indirect contractual counterparty (other than any Disqualified Lender except that the list of Disqualified Lenders  may be furnished) in any swap, hedge or similar agreement (or to any such contractual counterparty’s professional  advisor), so long as such contractual counterparty (or such professional advisor) agrees to be bound by the  provisions of this Section 13.15 (or language substantially similar to this Section 13.15(a)), (vii) in the case of any  Lender, to any prospective or actual transferee, pledgee or participant (other than any Disqualified Lender except  that the list of Disqualified Lenders may be furnished) in connection with any contemplated transfer, pledge or  participation of any of the Notes or Commitments or any interest therein by such Lender, (viii) has become available  to any Agent, Lead Arranger, any Lender, or any of their respective Affiliates on a non-confidential basis from a  source other than Holdings, the Borrower or any Subsidiary thereof, and which source is not known by such Person  to be subject to a confidentiality restriction in respect thereof in favor of the Borrower or any Affiliate of the  Borrower, (ix) for purposes of establishing a “due diligence” defense, (x) on a confidential basis to market data  collectors, similar service providers to the lending industry and service providers to the Administrative Agent and  the Lenders in connection with the administration and management of this Agreement and the other Credit  Documents and (xi) that has been independently developed by such Agent, Lead Arranger or Lender without the use  of any other confidential information provided by the Borrower or on the Borrower’s behalf; provided that such  prospective transferee, pledge or participant agrees to be bound by the confidentiality provisions contained in this  Section 13.15 (or language substantially similar to this Section 13.15(a)); provided, further, that, to the extent  permitted pursuant to any applicable law, order, regulation or ruling, and other than in connection with credit and  other bank examinations conducted in the ordinary course with respect to such Agent, Lead Arranger or Lender, in  the case of any disclosure pursuant to the foregoing clauses (ii), (iii) or (iv), such Agent, Lead Arranger or Lender  will use its commercially reasonable efforts to notify the Borrower in advance of such disclosure so as to afford the  Borrower the opportunity to protect the confidentiality of the information proposed to be so disclosed.          (b)     The  Borrower  hereby  acknowledges  and  agrees  that  each  Lender  may  share  with  any  of  its  affiliates, and such affiliates may share with such Lender, any information related to Holdings, the Borrower or any  of  its  Subsidiaries  (including,  without  limitation,  any  non-public  customer  information  regarding  the  creditworthiness  of  Holdings,  the  Borrower  and  its  Subsidiaries);  provided  such  Persons  shall  be  subject  to  the  provisions of this Section 13.15 to the same extent as such Lender.          13.16   USA Patriot Act Notice.  Each Lender hereby notifies Holdings and the Borrower that pursuant to  the requirements of the USA PATRIOT Act Title III of Pub. 107-56 (signed into law October 26, 2001 and amended  on  March  9,  2009)  (the  “Patriot  Act”),  it  is  required  to  obtain,  verify,  and  record  information  that  identifies  Holdings, the Borrower and each Subsidiary Guarantor, which information includes the name of each Credit Party  and other information that will allow such Lender to identify the Credit Party in accordance with the Patriot Act, and  each Credit Party agrees to provide such information from time to time to any Lender.          13.17   [Reserved].          13.18   Waiver of Sovereign Immunity.  Each of the Credit Parties, in respect of itself, its Subsidiaries, its  process  agents,  and  its  properties  and  revenues,  hereby  irrevocably  agrees  that,  to  the  extent  that  Holdings,  the  Borrower, their respective Subsidiaries or any of their properties has or may hereafter acquire any right of immunity,  whether characterized as sovereign immunity or otherwise, from any legal proceedings, whether in the United States  or elsewhere, to enforce or collect upon the Term Loans or any Credit Document or any other liability or obligation                                                  127 

 

  of  Holdings,  the  Borrower  or  any  of  their  respective  Subsidiaries  related  to  or  arising  from  the  transactions  contemplated  by  any  of  the  Credit  Documents,  including,  without  limitation,  immunity  from  service  of  process,  immunity  from  jurisdiction  or  judgment  of  any  court  or  tribunal,  immunity  from  execution  of  a  judgment,  and  immunity  of  any  of  its  property  from  attachment  prior  to  any  entry  of  judgment,  or from  attachment  in  aid  of  execution  upon  a  judgment,  Holdings  and  the  Borrower,  for  themselves  and  on  behalf  of  their  respective  Subsidiaries, hereby expressly waive, to the fullest extent permissible under applicable law, any such immunity, and  agree  not  to  assert  any  such  right  or  claim  in  any  such  proceeding,  whether  in  the  United  States  or  elsewhere.   Without limiting the generality of the foregoing, Holdings and the Borrower further agree that the waivers set forth  in this Section 13.18 shall have the fullest extent permitted under the Foreign Sovereign Immunities Act of 1976 of  the United States and are intended to be irrevocable for purposes of such Act.          13.19   [Reserved].          13.20   INTERCREDITOR AGREEMENT.          (a)     EACH  LENDER  PARTY  HERETO  UNDERSTANDS,  ACKNOWLEDGES  AND  AGREES  THAT IT (AND EACH OF ITS SUCCESSORS AND ASSIGNS) AND EACH OTHER LENDER (AND EACH  OF THEIR SUCCESSORS AND ASSIGNS) SHALL BE BOUND BY, THE INTERCREDITOR AGREEMENT  AND, TO THE EXTENT REQUESTED BY THE BORROWER AFTER THE DATE OF THIS AGREEMENT TO  BE ENTERED INTO IN CONNECTION WITH INDEBTEDNESS PERMITTED AND/OR NOT PROHIBITED  BY THIS AGREEMENT TO BE INCURRED AND PERMITTED BY THIS AGREEMENT TO BE SUBJECT TO  SUCH INTERCREDITOR AGREEMENT, ANY ADDITIONAL INTERCREDITOR AGREEMENT, ANY PARI  PASSU    INTERCREDITOR      AGREEMENT      OR   ANY     OTHER    INTERCREDITOR      AGREEMENT  CONTEMPLATED BY THIS AGREEMENT, WHICH IN CERTAIN CIRCUMSTANCES MAY REQUIRE (AS  MORE  FULLY  PROVIDED  THEREIN)  THE  TAKING  OF  CERTAIN  ACTIONS  BY  THE  LENDERS,  INCLUDING  THE  PURCHASE  AND  SALE  OF  PARTICIPATIONS  BY  VARIOUS  LENDERS  TO  EACH  OTHER IN ACCORDANCE WITH THE TERMS THEREOF.          (b)     THE PROVISIONS OF THIS SECTION 13.20 ARE NOT INTENDED TO SUMMARIZE OR  FULLY DESCRIBE THE PROVISIONS OF, THE INTERCREDITOR AGREEMENT AND, TO THE EXTENT  REQUESTED BY THE BORROWER AFTER THE DATE OF THIS AGREEMENT TO BE ENTERED INTO IN  CONNECTION WITH INDEBTEDNESS PERMITTED AND/OR NOT PROHIBITED BY THIS AGREEMENT,  ANY ADDITIONAL INTERCREDITOR AGREEMENT, ANY PARI PASSU INTERCREDITOR AGREEMENT  OR  ANY  OTHER  INTERCREDITOR  AGREEMENT  CONTEMPLATED  BY  THIS  AGREEMENT.   REFERENCE  MUST  BE  MADE  TO,  THE  INTERCREDITOR  AGREEMENT  AND,  TO  THE  EXTENT  REQUESTED BY THE BORROWER AFTER THE DATE OF THIS AGREEMENT TO BE ENTERED INTO IN  CONNECTION WITH INDEBTEDNESS PERMITTED AND/OR NOT PROHIBITED BY THIS AGREEMENT,  ANY ADDITIONAL INTERCREDITOR AGREEMENT, ANY PARI PASSU INTERCREDITOR AGREEMENT  OR ANY OTHER INTERCREDITOR AGREEMENT CONTEMPLATED BY THIS AGREEMENT, ITSELF TO  UNDERSTAND  ALL  TERMS  AND  CONDITIONS  THEREOF.   EACH  LENDER  IS  RESPONSIBLE  FOR  MAKING ITS OWN ANALYSIS AND REVIEW OF, THE INTERCREDITOR AGREEMENT AND, TO THE  EXTENT REQUESTED BY THE BORROWER AFTER THE DATE OF THIS AGREEMENT TO BE ENTERED  INTO  IN  CONNECTION  WITH  INDEBTEDNESS  PERMITTED  AND/OR  NOT  PROHIBITED  BY  THIS  AGREEMENT, ANY ADDITIONAL INTERCREDITOR AGREEMENT, ANY PARI PASSU INTERCREDITOR  AGREEMENT  OR  ANY  OTHER  INTERCREDITOR  AGREEMENT  CONTEMPLATED  BY  THIS  AGREEMENT,  AND  THE  TERMS  AND  PROVISIONS  THEREOF,  AND  NO  AGENT  OR  ANY  OF  AFFILIATES  MAKES  ANY  REPRESENTATION  TO  ANY  LENDER  AS  TO  THE  SUFFICIENCY  OR  ADVISABILITY OF THE PROVISIONS CONTAINED IN, THE INTERCREDITOR AGREEMENT AND, TO  THE  EXTENT  REQUESTED  BY  THE  BORROWER  AFTER  THE  DATE  OF  THIS  AGREEMENT  TO  BE  ENTERED INTO IN CONNECTION WITH INDEBTEDNESS PERMITTED AND/OR NOT PROHIBITED BY  THIS  AGREEMENT,  ANY  ADDITIONAL  INTERCREDITOR  AGREEMENT,  ANY  PARI  PASSU  INTERCREDITOR AGREEMENT OR ANY OTHER INTERCREDITOR AGREEMENT CONTEMPLATED BY  THIS  AGREEMENT.   COPIES  OF  THE  INTERCREDITOR  AGREEMENT  AND,  TO  THE  EXTENT  REQUESTED BY THE BORROWER AFTER THE DATE OF THIS AGREEMENT TO BE ENTERED INTO IN  CONNECTION WITH INDEBTEDNESS PERMITTED AND/OR NOT PROHIBITED BY THIS AGREEMENT,  ANY ADDITIONAL INTERCREDITOR AGREEMENT, ANY PARI PASSU INTERCREDITOR AGREEMENT                                                  128 

 

  OR  ANY  OTHER  INTERCREDITOR  AGREEMENT  CONTEMPLATED  BY  THIS AGREEMENT,  MAY  BE  OBTAINED FROM THE ADMINISTRATIVE AGENT.          (c)     THE INTERCREDITOR AGREEMENT AND EACH OF, TO THE EXTENT REQUESTED BY  THE BORROWER AFTER THE DATE OF THIS AGREEMENT TO BE ENTERED INTO IN CONNECTION  WITH  INDEBTEDNESS  PERMITTED  AND/OR  NOT  PROHIBITED  BY  THIS  AGREEMENT,  ANY  ADDITIONAL INTERCREDITOR AGREEMENT, ANY  PARI PASSU INTERCREDITOR AGREEMENT OR  ANY  OTHER  INTERCREDITOR  AGREEMENT  CONTEMPLATED  BY  THIS  AGREEMENT,  IS  AN  AGREEMENT SOLELY AMONGST THE LENDERS (AND THEIR SUCCESSORS AND ASSIGNS) AND IS  NOT AN AGREEMENT TO WHICH HOLDINGS OR ANY OF ITS SUBSIDIARIES IS PARTY.  AS MORE  FULLY PROVIDED THEREIN, THE INTERCREDITOR AGREEMENT AND, TO THE EXTENT REQUESTED  BY  THE  BORROWER  AFTER  THE  DATE  OF  THIS  AGREEMENT  TO  BE  ENTERED  INTO  IN  CONNECTION WITH INDEBTEDNESS PERMITTED AND/OR NOT PROHIBITED BY THIS AGREEMENT,  ANY ADDITIONAL INTERCREDITOR AGREEMENT, ANY PARI PASSU INTERCREDITOR AGREEMENT  OR ANY OTHER INTERCREDITOR AGREEMENT CONTEMPLATED BY THIS AGREEMENT CAN ONLY  BE AMENDED BY THE PARTIES THERETO IN ACCORDANCE WITH THE PROVISIONS THEREOF.          13.21   Absence  of  Fiduciary  Relationship.   Notwithstanding  any  other  provision  of  this  Agreement  or  any provision of any other Credit Document, (i) none of the Lead Arrangers or any Lender shall, solely by reason of  this Agreement or any other Credit Document, have any fiduciary, advisory or agency relationship or duty in respect  of any Lender or any other Person and (ii) Holdings and the Borrower hereby waive, to the fullest extent permitted  by law, any claims they may have against the Lead Arrangers or any Lender for breach of fiduciary duty or alleged  breach of fiduciary duty.  Each Agent, Lender and their Affiliates may have economic interests that conflict with  those of the Credit Parties, their stockholders and/or their affiliates.            13.22   Electronic  Execution  of  Assignments  and  Certain  Other  Documents.   The  words  “execution,”  “execute,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection  with  this  Agreement  and  the  transactions  contemplated  hereby  (including  without  limitation  Assignment  and  Assumptions,  amendments  or  other  Notice  of  Borrowings,  waivers  and  consents)  shall  be  deemed  to  include  electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms  approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the  same  legal  effect,  validity  or  enforceability  as  a  manually  executed  signature  or  the  use  of  a  paper-based  recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the  Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and  Records  Act,  or  any  other  similar  state  laws  based  on  the  Uniform  Electronic  Transactions  Act; provided  that  notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree  to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent  pursuant to procedures approved by it.          13.23   Entire Agreement.  This Agreement and the other Credit Documents represent the final agreement  among  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 among the parties.          13.24   Acknowledgement  and  Consent  to  Bail-In  of  EEA  Financial  Institutions.   Notwithstanding  anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among  any  such  parties,  each  party  hereto  acknowledges  and  accepts  that  any  liability  of  any  EEA  Financial  Institution  arising under any Credit Document may be subject to the Bail-In Action by the relevant Resolution Authority and  acknowledges and accepts to be bound by the effect of:                  (a)    any Bail-In Action in relation to any such liability, including (without limitation):                          (i)   a reduction, in full or in part, in the principal amount, or outstanding amount due                 (including any accrued but unpaid interest) in respect of any such liability;                                                   129 

 

                        (ii)    a conversion of all, or part of, any such liability into shares or other instruments                 of ownership that may be issued to, or conferred on, it; and                         (iii)  a cancellation of any such liability; and                  (b)    a variation of any term of any Finance Document to the extent necessary to give effect to         any Bail-In Action in relation to any such liability.          13.25   Acknowledgement Regarding Any Supported QFCs.  To the extent that the Credit Documents  provide  support,  through  a  guarantee  or  otherwise,  for  interest  rate  protection  agreements  or  other  hedging  agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such  QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the  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 Credit Documents and any Supported QFC may in  fact be stated to be  governed by the laws of the State of New York and/or of the United States or any other state of the United States).                 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 Credit 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 Credit 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 14. Credit Agreement Party Guaranty.          14.01   The  Guaranty.   In  order  to  induce  the  Agents  and  the  Lenders  (collectively,  the  “Lender  Creditors”)  to  enter  into  this  Agreement  and  the  Lenders  to  extend  credit  hereunder,  and  to  induce  the  other  Guaranteed  Creditors  to  enter  into  Designated  Interest  Rate  Protection  Agreements  and  Designated  Treasury  Services Agreements, in recognition of the direct benefits to be received by Holdings from the proceeds of the Term  Loans  and  the  entering  into  of  such  Designated  Interest  Rate  Protection  Agreements  and  Designated  Treasury  Services  Agreements,  Holdings  hereby  agrees  with  the  Guaranteed  Creditors  as  follows:   Holdings  hereby  unconditionally and irrevocably guarantees as primary obligor and not merely as surety:  (i) to the Lender Creditors  and any applicable Indemnified Person the full and prompt payment when due (whether at the stated maturity, by  acceleration  or otherwise) of  all Obligations  described in clause (x)  of the definition of  “Obligations”; and  (ii) to  each  applicable  Guaranteed  Creditor,  the  full  and  prompt  payment  when  due  (whether  at  the  stated  maturity,  by  acceleration or otherwise) of all Obligations described in clause (y) of the definition of “Obligations” (collectively,  the “Guaranteed Obligations”).  If any or all of the Guaranteed Obligations of Holdings to the Guaranteed Creditors  becomes due and payable hereunder, Holdings, unconditionally and irrevocably, promises to pay such indebtedness  to the Administrative Agent and/or the other Guaranteed Creditors, on order, on demand, together with any and all  expenses which may be incurred by the Administrative Agent and the other Guaranteed Creditors in collecting any  of  the  Guaranteed  Obligations.   This  Credit  Agreement  Party  Guaranty  is  a  guaranty  of  payment  and  not  of  collection.  This Credit Agreement Party Guaranty is a continuing one and all liabilities to which it applies or may  apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon.  If claim is  ever made upon any Guaranteed Creditor for repayment or recovery of any amount or amounts received in payment  or on account of any of the Guaranteed Obligations and any of the aforesaid payees repays all or part of said amount                                                  130 

 

  by reason  of  (i) any judgment, decree or order  of  any court or administrative body having  jurisdiction over such  payee or any of its property or (ii) any settlement or compromise of any such claim effected by such payee with any  such  claimant,  then  and  in  such  event  Holdings  agrees  that  any  such  judgment,  decree,  order,  settlement  or  compromise  shall  be  binding  upon  Holdings,  notwithstanding  any  revocation  of  this  Credit  Agreement  Party  Guaranty or any other instrument evidencing any liability, and Holdings shall be and remain liable to the aforesaid  payees hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally  been received by any such payee.          14.02   Bankruptcy.   Additionally,  Holdings  unconditionally and  irrevocably  guarantees  the payment of  any  and  all  of  its  Guaranteed  Obligations  to  the  Guaranteed  Creditors  whether  or  not  due  or  payable  upon  the  occurrence of any of the events specified in Section 11.05, and irrevocably and unconditionally promises to pay such  Guaranteed Obligations to the Guaranteed Creditors, on order, on demand, in lawful money of the United States.          14.03   Nature of Liability.  The liability of Holdings hereunder is primary, absolute and unconditional,  exclusive and independent of any security for or other guaranty of the Guaranteed Obligations, whether executed by  any other guarantor or by any other party, and Holdings understands and agrees, to the fullest extent permitted under  law, that the liability of Holdings hereunder shall not be affected or impaired by (a) any direction as to application of  payment by any other party, or (b) any other continuing or other guaranty, undertaking or maximum liability of a  guarantor or of any other party as to the Guaranteed Obligations, or (c) any payment on or in reduction of any such  other guaranty or undertaking (other than payment in cash of the Guaranteed Obligations), or (d) any dissolution,  termination or increase, decrease or change in personnel, or (e) any payment made to any Guaranteed Creditor on  the Guaranteed Obligations which any such Guaranteed Creditor repays pursuant to court order in any bankruptcy,  reorganization,  arrangement,  moratorium  or  other  debtor  relief  proceeding,  and  Holdings  waives  any  right  to  the  deferral or modification of its obligations hereunder by reason of any such proceeding, or (f) any action or inaction  by the Guaranteed Creditors as contemplated in Section 14.05, or (g) any invalidity, irregularity or unenforceability  of all or any part of the Guaranteed Obligations or of any security therefor.          14.04   Independent Obligation.  The obligations of Holdings hereunder are independent of the obligations  of any other guarantor or any other party, and a separate action or actions may be brought and prosecuted against  Holdings whether or not action is brought against any other guarantor or any other party and  whether or not any  other guarantor or any other party be joined in any such action or actions.  Holdings waives, to the fullest extent  permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement thereof.   Any payment or other circumstance which operates to toll any statute of limitations shall operate to toll the statute of  limitations as to Holdings.          14.05   Authorization.   To  the  fullest  extent  permitted  under  law,  Holdings  authorizes  the  Guaranteed  Creditors without notice or demand, and without affecting or impairing its liability hereunder, from time to time to:                  (a)    change the manner, place or terms of payment of, and/or change or extend the time of         payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations (including any increase         or decrease in the principal amount thereof or the rate of interest or fees thereon), any security therefor, or         any liability  incurred  directly  or  indirectly  in  respect thereof, and this  Credit  Agreement  Party  Guaranty         shall apply to the Guaranteed Obligations as so changed, extended, renewed or altered;                  (b)    take and hold security for the payment of the Guaranteed Obligations and sell, exchange,         release, impair, surrender, realize upon or otherwise deal with in any manner and in any order any property         by  whomsoever  at  any  time  pledged  or  mortgaged  to  secure,  or  howsoever  securing,  the  Guaranteed         Obligations or any liabilities (including any of those hereunder) incurred directly or indirectly in respect         thereof or hereof, and/or any offset there against;                  (c)    exercise  or  refrain  from  exercising  any  rights  against  any  Credit  Party  or  others  or         otherwise act or refrain from acting;                  (d)    release or substitute any one or more endorsers, guarantors, other Credit Parties or other         obligors;                                                   131 

 

                 (e)    settle  or  compromise  any  of  the  Guaranteed  Obligations,  any  security  therefor  or  any         liability (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and         may subordinate the payment of all or any part thereof to the payment of any liability (whether due or not)         to its creditors other than the Guaranteed Creditors;                  (f)    except  as  otherwise expressly  required  by  the  Security Documents, apply  any  sums  by         whomsoever paid or howsoever realized to any liability or liabilities to the Guaranteed Creditors regardless         of what liability or liabilities remain unpaid;                  (g)    consent to or waive any breach of, or any act, omission or default under, this Agreement,         any other Credit Document, any Designated Interest Rate Protection Agreement, any Designated Treasury         Services  Agreement  or  any  of  the  instruments  or  agreements  referred  to  herein  or  therein,  or  otherwise         amend, modify or supplement this  Agreement, any other Credit Document, any Designated Interest Rate         Protection Agreement, any Designated Treasury Services Agreement or any of such other instruments or         agreements; and/or                  (h)    take  any  other  action  which  would,  under  otherwise  applicable  principles  of  common         law, give rise to a legal or equitable discharge of Holdings from its liabilities under this Credit Agreement         Party Guaranty.          14.06   Reliance.  It is not necessary for any Guaranteed Creditor to inquire into the capacity or powers of  any  officers,  directors,  partners  or  agents  acting  or  purporting  to  act  on  behalf  of  any  Credit  Party,  and  any  Guaranteed Obligations made or created in reliance upon the professed exercise of such powers on behalf of such  Credit Party shall be guaranteed hereunder.          14.07   Subordination.  Any indebtedness now or hereafter owing to Holdings is hereby subordinated to  the Guaranteed Obligations owing to the Guaranteed Creditors; and if the Administrative Agent so requests at a time  when an Event of Default exists and is continuing, all such indebtedness to Holdings shall be collected, enforced and  received by Holdings for the benefit of the Guaranteed Creditors and be paid over to the Administrative Agent on  behalf  of  the  Guaranteed  Creditors  on  account  of  the  Guaranteed  Obligations  to  the  Guaranteed  Creditors,  but  without  affecting  or  impairing  in  any  manner  the  liability  of  Holdings  under  the  other  provisions  of  this  Credit  Agreement  Party  Guaranty.   Without  limiting  the  generality  of  the  foregoing,  Holdings  hereby  agrees  with  the  Guaranteed Creditors that it will not exercise any right of subrogation which it may at any time otherwise have as a  result of this Credit Agreement Party Guaranty (whether contractual, under Section 509 of the Bankruptcy Code or  otherwise) until all Guaranteed Obligations have been irrevocably paid in full in cash.          14.08   Waiver.          (a)     Holdings waives (except as shall be required by applicable law and cannot be waived) any right to  require any Guaranteed Creditor to (i) proceed against any guarantor or any other party, (ii) proceed against or  exhaust any security held from any guarantor or any other party or (iii) pursue any other remedy in any Guaranteed  Creditor’s power whatsoever.  Holdings waives any defense (except as shall be required by applicable statute and  cannot be waived) based on or arising out of any defense of any guarantor or any other party, other than payment of  the Guaranteed Obligations to the extent of such payment, based on or arising out of the disability of any guarantor  or any other party, or the invalidity, illegality or unenforceability of the Guaranteed Obligations or any part thereof  from any cause, or the cessation from any cause of the liability other than payment of the Guaranteed Obligations to  the extent of such payment.  The Guaranteed Creditors may, at their election, foreclose on any security held by the  Administrative Agent, the Collateral Agent or any other Guaranteed Creditor by one or more judicial or nonjudicial  sales, whether or not every aspect of any such sale is commercially reasonable (to the extent such sale is permitted  by applicable law), or exercise any other right or remedy the Guaranteed Creditors may have against any party, or  any security, without affecting or impairing in any way the liability of Holdings hereunder except to the extent the  Guaranteed  Obligations  have  been  paid.  Holdings  waives, to the fullest  extent  permitted  under law,  any defense  arising  out  of  any  such  election  by  the  Guaranteed  Creditors,  even  though  such  election  operates  to  impair  or  extinguish any right of reimbursement or subrogation or other right or remedy of Holdings against any party or any  security.                                                   132 

 

         (b)     Holdings  waives,  to  the  fullest  extent  permitted  under  law,  all  presentments,  demands  for  performance,  protests  and  notices,  including,  without  limitation,  notices  of  nonperformance,  notices  of  protest,  notices of dishonor, notices of acceptance of this Credit  Agreement Party Guaranty, and notices of the existence,  creation or incurring of new  or additional Guaranteed Obligations.  Holdings assumes all responsibility for being  and keeping itself informed of the Borrower’s and each other Guarantor’s 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 which Holdings assumes and incurs hereunder, and agrees that neither the Administrative Agent  nor any of the other Guaranteed Creditors shall  have any  duty to advise Holdings of information known to them  regarding such circumstances or risks.          14.09   Maximum Liability.  It is the desire and intent of Holdings and the Guaranteed Creditors that this  Credit Agreement Party Guaranty shall be enforced against Holdings to the fullest extent permissible under the laws  and public policies applied in each jurisdiction in which enforcement is sought.  If, however, and to the extent that,  the  obligations  of  Holdings  under  this  Credit  Agreement  Party  Guaranty  shall  be  adjudicated  to  be  invalid  or  unenforceable for any reason (including, without limitation, because of any applicable state or federal law relating to  fraudulent conveyances or transfers), then the amount of Holdings’ obligations under this Credit Agreement Party  Guaranty  shall  be  deemed  to  be  reduced  and  Holdings  shall  pay  the  maximum  amount  of  the  Guaranteed  Obligations which would be permissible under applicable law.          14.10   Payments.   All  payments  made  by  Holdings  pursuant  to  this  Section  14  will  be  made  without  setoff, counterclaim or other defense (other than payment of the Guaranteed Obligations in cash to the extent of such  payment), and shall be subject to the provisions of Sections 5.03 and 5.04.          14.11   Keepwell.   If  Holdings  is  a  Qualified  ECP  Guarantor  (as  defined  below)  at  the  time  the  Subsidiaries  Guaranty  or  the  grant  of  the  security  interest  under  the  Credit  Documents,  in  each  case,  by  any  Specified  Credit  Party,  becomes  effective  with  respect  to  any  Swap  Obligation,  it  hereby  jointly  and  severally,  absolutely,  unconditionally  and  irrevocably  undertakes  to  provide  such  funds  or  other  support  to  each  Specified  Credit Party with respect to such Swap Obligation as may be needed by such Specified Credit Party from time to  time to honor all of its obligations under the Subsidiaries Guaranty and the other Credit Documents in respect of  such  Swap  Obligation  (but,  in  each  case,  only  up  to  the  maximum  amount  of  such  liability  that  can  be  hereby  incurred  without  rendering  Holdings’  obligations  and  undertakings  under  this  Section  14.11  voidable  under  applicable  law  relating  to  fraudulent  conveyance  or  fraudulent  transfer,  and  not  for  any  greater  amount).   The  obligations  and  undertakings  of  Holdings  under  this  Section  14.11  shall  remain  in  full  force  and  effect  until  the  Guaranteed Obligations have been paid and performed in full.  Holdings intends this Section 14.11 to constitute, and  this Section 14.11 shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other  agreement”  for  the  benefit  of,  each  Specified  Credit  Party  for  all  purposes  of  the  Commodity  Exchange  Act.   “Qualified ECP Guarantor” shall mean, in respect of any Swap Obligation, that such Person guaranteeing such Swap  Obligation has total assets exceeding $10,000,000 at the time the guaranty or grant of the relevant security interest  becomes effective  with respect  to  such  Swap  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.                                             *       *      *                                                   133 

 

         IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and  deliver this Agreement as of the date first above written.                                                         VERTIV INTERMEDIATE HOLDING II CORPORATION,                                                  as Holdings                                                By:  _______________________________________                                                  Name:                                                    Title:                                                                                                                                                                                             VERTIV GROUP CORPORATION,                                                   as Borrower                                                By:  _______________________________________                                                  Name:                                                    Title:                                                                                                                                   [Signature Page to Term Loan Credit Agreement] 

 

                                                     Citibank, N.A.,                       as Administrative Agent and a Lender                    By:  _______________________________________                      Name:                        Title:                                           [Signature Page to Term Loan Credit Agreement]

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