Document:

Exhibit 10.1

 

EXECUTION VERSION

 

CITIGROUP GLOBAL MARKETS INC.

390 Greenwich Street

New York, New York 10013

 

January 20, 2017

 

AMC Entertainment Holdings, Inc.

One AMC Way

11500 Ash Street

Leawood, Kansas 66211

Attention: Craig Ramsey, Chief Financial Officer

 

Project Thor

Commitment Letter

 

Ladies and Gentlemen:

 

AMC Entertainment Holdings, Inc. (the “Borrower” or “you”) has advised Citi (as defined below, “Citi” and, together with any Additional Lead Arrangers and Additional Agents appointed in accordance with the terms set forth herein (if any), the “Commitment Parties”, the “Agents”, “we” or “us”) that it intends to consummate the Transactions (such term and each other capitalized term used but not defined herein having the meaning assigned to such term in the Transaction Description attached hereto as Exhibit A (the “Transaction Description”), in the Summary of Principal Terms and Conditions attached hereto as Exhibit B (the “Incremental Term Loan B Term Sheet”) or in the Summary of Principal Terms and Conditions attached hereto as Exhibit C (the “Senior Subordinated Bridge Facility Term Sheet” and, together with the Incremental Term Loan B Term Sheet and the Summary of Conditions Precedent attached as Exhibit D hereto, the “Term Sheets”; and together with this commitment letter, collectively, this “Commitment Letter”)).

 

For purposes of this Commitment Letter, “Citi” shall mean Citigroup Global Markets Inc., Citibank, N.A., Citicorp USA, Inc., Citicorp North America, Inc. and/or any of their affiliates as Citi shall determine to be appropriate to provide the services contemplated herein.

 

1.                                      Commitments.

 

In connection with the foregoing, Citi (and together with each Additional Initial Lender (as defined below), if any, the “Initial Lenders”) is pleased to advise you of its commitment to provide (a) 100% of the Incremental Term Loan B Facility (as defined in the Transaction Description) in an aggregate principal amount of up to $675.0 million, upon the terms set forth herein and subject only to the conditions set forth or referred to in Exhibit D, and (b) 100% of the principal amount of the Senior Subordinated Bridge Facility (as defined in the Transaction Description) in an aggregate principal amount of up to $325.0 million, upon the

 

 

terms set forth herein and subject only to the conditions set forth or referred to in Exhibit D (excluding, solely with respect to the Senior Subordinated Bridge Facility, any conditions expressly relating to collateral or security interests in respect of the Incremental Term Loan B Facility).

 

2.                                      Titles and Roles.

 

You hereby appoint (i) Citi to act, and Citi hereby agrees to act, as a lead bookrunner and a lead arranger for the Incremental Term Loan B Facility, (ii) Citi to act, and Citi hereby agrees to act, as a lead bookrunner and a lead arranger for the Senior Subordinated Bridge Facility (in each of clauses (i) and (ii), in such capacities, and together with any Additional Lead Arrangers appointed pursuant to the immediately succeeding paragraph (if any), the “Lead Arrangers”) in connection with the proposed arrangement and subsequent syndication of the Facilities and (iii) Citi to act, and Citi hereby agrees to act, as sole administrative agent for the Senior Subordinated Bridge Facility, in each case upon the terms and subject to the conditions set forth or referred to in this Commitment Letter.  It is agreed that Citi shall have “left” placement in any and all marketing materials or other documentation used in connection with the Facilities and shall hold the leading role and responsibility conventionally associated with such “left” placement and Citi will perform the duties and exercise the authority customarily performed and exercised by it in the foregoing roles.  You further agree that no other titles will be awarded and no compensation (other than that expressly contemplated by this Commitment Letter and the Fee Letter referred to below) will be paid in order to obtain commitments to participate in the Facilities unless you and the Commitment Parties shall so agree.

 

On or prior to the 10th business day following the date of this Commitment Letter, you may (in consultation with Citi) appoint up to four (4) additional joint lead arrangers and joint bookrunners (the “Additional Lead Arrangers”) and appoint additional agents or co-agents or confer other titles in a manner and with economics determined by you and reasonably acceptable to Citi for each of the Facilities (the “Additional Agents”); provided that (i) the aggregate economics payable to such Additional Lead Arrangers and Additional Agents in the aggregate for each of the Facilities shall not exceed 49% of the total economics that would otherwise be payable to the Lead Arrangers and the Agents pursuant to the Fee Letter (exclusive of any fees payable to an agent for its own account in its capacity as such), (ii) Citi shall receive no less than 51% of the aggregate economics under each Facility, (iii) each such Additional Lead Arranger’s and Additional Agent’s aggregate commitment shall be allocated pro rata among the Facilities (each Additional Lead Arranger or Additional Agent in its capacity as a provider of commitments, an “Additional Initial Lender”), (iv) the commitments of Citi will be reduced, on a pro rata basis among the Facilities, by the amount of the commitments of each such Additional Lead Arranger and Additional Agent (or its relevant affiliate) under the applicable Facility, upon the execution of customary joinder documentation satisfactory to the Lead Arrangers and the Borrower (which joinder documentation shall provide that the commitments of such Additional Initial Lender shall be subject to the same terms and conditions as are applicable to the commitments of the other Initial Lenders under this Commitment Letter), (v) the commitments assumed by such Additional Lead Arranger or Additional Agent for each of the Facilities will be in proportion to the economics allocated to such Additional Lead Arranger or Additional Agent and (vi) no Additional Lead Arranger (nor any affiliates thereof) nor Additional Agents (nor any

 

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affiliates thereof) shall receive greater economics in respect of either Facility than that received by Citi in respect of such Facility.

 

3.                                      Syndication.

 

We reserve the right, prior to and/or after the execution of the applicable definitive documentation for the respective Facilities (the “Credit Documentation”), to syndicate all or a portion of our commitments with respect to the Facilities to a group of banks, financial institutions and other lenders identified by us in consultation with you and subject to your consent (such consent not to be unreasonably withheld, delayed or conditioned) (together with the Initial Lenders, the “Lenders”) pursuant to a syndication to be managed exclusively by the Lead Arrangers; provided that we will not syndicate the Facilities to (i) those persons identified by you in writing to us prior to the date hereof, (ii) any person identified by name by you in writing to us from time to time that is or becomes a competitor of the Borrower, the Target or any of their respective subsidiaries, (iii) any affiliates (other than any Debt Fund Affiliate (as defined below)) of any person described in clause (i) or (ii) above that are clearly identifiable as affiliates solely on the basis of their name (provided that the Lead Arrangers shall have no obligation to carry out due diligence in order to identify such affiliates) and (iv) any other affiliate (other than any Debt Fund Affiliate) of any person described in clause (i) or (ii) above that is identified by name by you in writing to us from time to time (such persons, collectively, the “Disqualified Institutions”).  Subject to the foregoing rights, the Lead Arrangers will manage all aspects of the syndication of the Facilities in consultation with you, including, without limitation, timing, potential syndicate members to be approached, titles and allocations and division of fees.  For purposes of the foregoing, “Debt Fund Affiliate” means, with respect to any person, a bona fide debt fund that is an affiliate of such person and that is primarily engaged in, or advises fund or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in commercial loans, notes, bonds and similar extensions of credit or securities in the ordinary course of its business, whose managers have fiduciary duties to the investors independent of their duties to such person or other affiliates, and with respect to which such person and its other affiliates do not, directly or indirectly, possess the power to direct or cause the direction of the investment policies of such entity.

 

We intend to commence our syndication efforts with respect to the Facilities promptly upon your execution and delivery to us of this Commitment Letter, and, until the earlier to occur of (i) a Successful Syndication (as defined in the Fee Letter) and (ii) 60 days after the Closing Date (such period, the “Syndication Period”), you agree to actively assist us in completing a syndication that is reasonably satisfactory to us.  Such assistance shall include (i) your using commercially reasonable efforts to ensure that any syndication and marketing efforts benefit from your (and, to the extent practical and appropriate, the Target’s) existing lending and investment banking relationships, (ii) direct contact between appropriate members of senior management, certain representatives and certain non-legal advisors of you (and your using commercially reasonable efforts to cause direct contact between appropriate members of senior management, certain representatives and certain non-legal advisors of the Target), on the one hand, and the proposed Lenders and rating agencies identified by the Lead Arrangers, on the other hand, at times and places mutually agreed, (iii) assistance by you (and your using commercially reasonable efforts to cause the assistance by the Target) in the prompt preparation of (x) a customary confidential information memorandum (a “Confidential Information

 

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Memorandum”) for each of the Facilities and other customary marketing materials and information reasonably deemed necessary by the Lead Arrangers to complete a successful syndication for delivery to potential syndicate members and participants, including, without limitation, estimates, forecasts, projections and other forward-looking financial information regarding the future performance of the Borrower, the Target and their respective subsidiaries subject to limitations on your rights to request information concerning the Target and its subsidiaries set forth in the Acquisition Agreement (such estimates, forecasts, projections and other forward-looking information, collectively, the “Projections”); provided that you shall use your commercially reasonable efforts to ensure that the Lead Arrangers shall have been afforded a period (the “Bank Marketing Period”) of at least 10 consecutive business days prior to the Closing Date following receipt by the Lead Arrangers of the information required pursuant to paragraph 4 and paragraph 5 of Exhibit D (the “Required Bank Information”); it being understood and agreed that the provision of any information described in clause (b) of paragraph 4 and clause (b) of paragraph 5 of Exhibit D shall result in the “restart” of the Bank Marketing Period; provided that for purposes of calculating the Bank Marketing Period, April 14, 2017 and May 29, 2017 shall be disregarded as business days, and (y) a draft preliminary offering memorandum or preliminary private placement memorandum (collectively, the “Offering Documents”) suitable for use in a customary “high-yield road show” relating to the Senior Subordinated Notes, in each case, which contains all financial statements and other data to be included therein (including all audited financial statements, all unaudited financial statements (which shall have been reviewed by the independent accountants as provided in Statement on Auditing Standards No. 100) and all appropriate pro forma financial statements prepared in accordance with generally accepted accounting principles in the United States and prepared in accordance with Regulation S-X under the Securities Act of 1933, as amended, unless otherwise agreed, and, except as otherwise agreed by the Investment Bank (as defined in the Fee Letter), all other data (including selected financial data) that is customarily included in preliminary offering memoranda for non-registered “high yield” debt offerings (it being understood that none of such information need include (1) any financial statements or information required by Rule 3-09, Rule 3-10 or Rule 3-16 of Regulation S-X, (2) Compensation Discussion and Analysis or other information required by Item 402 of Regulation S-K, (3) the executive compensation and related person disclosure rules related to SEC Release Nos. 33-8732A, 34-54302A and IC-27444A or (4) a business description (other than in summary form) or Management Discussion and Analysis of Financial Condition and Results of Operations relating to the Target and its consolidated subsidiaries), or that would be necessary for the Investment Bank to receive customary (for high yield debt securities) “comfort” (including “negative assurance” comfort) from Borrower’s independent accountants and the independent accountants for the Target in connection with the offering of the Senior Subordinated Notes (and the Borrower shall have made commercially reasonable efforts to arrange for the delivery of such comfort or, if no Senior Subordinated Notes were issued, a draft thereof) (“Required Notes Information”)); provided, that you shall use your commercially reasonable efforts to ensure that the Investment Bank shall have been afforded a period (the “Bond Marketing Period”) of at least 10 consecutive business days prior to the Closing Date following receipt by the Lead Arrangers of the Required Notes Information; it being understood and agreed that the provision of any information described in clause (b) of paragraph 4 and clause (b) of paragraph 5 of Exhibit D shall result in the “restart” of the Bond Marketing Period; provided that for purposes of calculating the Bond Marketing Period, April 14, 2017 and May 29, 2017 shall be disregarded as business days, (iv) the hosting, with the Lead

 

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Arrangers, of one or more meetings with prospective Lenders at reasonable times and locations to be mutually agreed and (v) your using commercially reasonable efforts to obtain (or maintain, to the extent already in effect as of the date hereof), prior to the launch of the syndication of the Facilities and the marketing of the Senior Subordinated Notes (as defined below), public ratings (but no specific ratings) for the Incremental Term Loan B Facility and the Senior Subordinated Notes from each of Standard & Poor’s Ratings Services (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) and a public corporate credit rating (but no specific rating) of the Borrower from S&P and a public corporate family rating (but no specific rating) of the Borrower from Moody’s.  If at any time the Borrower in good faith reasonably believes that it has delivered the Offering Documents, it may deliver to the Lead Arrangers written notice to that effect (stating when it believes it completed the applicable delivery), in which case the Offering Documents shall be deemed to have been delivered on the date the applicable notice is received by the Lead Arrangers, unless the Lead Arrangers in good faith reasonably believe that the Borrower has not completed delivery of the Offering Documents, and, within 2 business days after receipt of such notice from the Borrower, the Lead Arrangers deliver a written notice to the Borrower to that effect (stating with specificity the Offering Documents that have not been delivered).  If at any time the Borrower in good faith reasonably believes that it has delivered the Required Bank Information, it may deliver to the Lead Arrangers written notice to that effect (stating when it believes it completed the applicable delivery), in which case the Required Bank Information shall be deemed to have been delivered on the date the applicable notice is received by the Lead Arrangers, unless the Lead Arranger in good faith reasonably believes that the Borrower has not completed delivery of the Required Bank Information, and, within 2 business days after receipt of such notice from the Borrower, the Lead Arrangers deliver a written notice to the Borrower to that effect (stating with specificity the Required Bank Information that has not been delivered).

 

You hereby acknowledge that (i) the Lead Arrangers and the Agents will make available Information (as defined below) and Projections, and the documentation relating to the Facilities referred to in the paragraph below, to the proposed syndicate of Lenders by transmitting such Information, Projections and documentation through Intralinks, SyndTrak Online, the internet, email or similar electronic transmission systems and (ii) certain of the Lenders may be “public side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Borrower, the Target and their respective subsidiaries or securities) (“Public Lenders”).  You agree, at the request of the Lead Arrangers, to assist in the prompt preparation of a version of the Confidential Information Memorandum and other marketing materials and presentations to be used in connection with the syndication of the Facilities, consisting exclusively of information and documentation that is either (a) publicly available or (b) not material with respect to the Borrower, the Target or their respective subsidiaries or any of their respective securities for purposes of United States Federal securities laws (all such information and documentation being “Public Lender Information” and with any information and documentation that is not Public Lender Information being referred to herein as “Private Lender Information”).

 

It is understood that in connection with your assistance described above, customary authorization letters will be included in any such Confidential Information Memorandum that authorize the distribution thereof to prospective Lenders, represent that the additional version of the Confidential Information Memorandum does not include any Private Lender Information and exculpate us with respect to any liability related to the use of the

 

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contents of such Confidential Information Memorandum or any related offering and marketing materials by the recipients thereof and exculpate you and the Acquired Business with respect to any liability related to the misuse of the contents of such Confidential Information Memorandum or any related offering and marketing materials by the recipients thereof.  You agree that such Confidential Information Memorandum or related offering and marketing materials to be disseminated by the Lead Arrangers to any prospective Lender in connection with the Facilities will be identified by you as either (A) containing Private Lender Information or (B) containing solely Public Lender Information.

 

You acknowledge that the following documents may be distributed to Public Lenders, unless you notify the Lead Arrangers in writing (including by email) within a reasonable period of time prior to the intended distribution that any such document contains Private Lender Information (provided that such materials have been provided to you for review a reasonable period of time prior thereto): (x) drafts and final versions of the Credit Documentation; (y) administrative materials prepared by the Lead Arrangers for prospective Lenders (such as a lender meeting invitation, allocation, if any, customary marketing term sheets and funding and closing memoranda); and (z) notification of changes in the terms and conditions of the Facilities.

 

You hereby agree that, prior to the later of (x) the Closing Date and (y) the completion of the Syndication Period, there shall be no competing issues, offerings or placements of debt securities or commercial bank or other credit facilities by or on behalf of the Borrower or its subsidiaries (and you will use commercially reasonable efforts to ensure that there are no competing issues, offerings or placements of debt securities or commercial bank or other credit facilities by or on behalf of the Target or its subsidiaries) being offered, placed or arranged (other than any refinancing of the facility under the Bridge Loan Agreement dated as of December 21, 2016 among you, the lenders party thereto, Citicorp North America, Inc., as Administrative Agent and the joint lead arrangers and joint bookrunners party thereto (the “Bridge Credit Agreement”), the Facilities, the Senior Subordinated Notes, ordinary course working capital facilities (including, without limitation, local credit facilities for Foreign Subsidiaries of the Borrower), ordinary course capital leases, purchase money indebtedness and equipment financings or any indebtedness of the Target and its subsidiaries permitted to be incurred or outstanding pursuant to the Acquisition Agreement), without the consent of the Lead Arrangers, if such issuance, offering, placement or arrangement would reasonably be expected to materially impair the primary syndication of the Facilities or the offering of the Senior Subordinated Notes.

 

Notwithstanding anything to the contrary in this Commitment Letter or the Fee Letter or the Credit Documentation or any agreement or undertaking concerning the financing of the Acquisition to the contrary, it is understood and agreed that (i) neither the obtaining of the ratings referenced above nor the compliance with any of the foregoing provisions set forth in this Section 3 shall constitute a condition to the Initial Lenders’ commitments hereunder or the funding of the Facilities on the Closing Date; (ii) none of the commencement nor the completion of the syndication of the Facilities shall constitute a condition to the commitments hereunder or the funding of the Facilities on the Closing Date, nor syndication of, or receipt of commitments or participations in respect of, all or any portion of an Initial Lender’s commitments hereunder prior to the Closing Date shall be a condition to such Initial Lender’s commitments; (iii) except

 

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as provided above with respect to the appointment of and commitments of Additional Initial Lenders, no Initial Lender shall be relieved, released or novated from its obligations hereunder (including its obligation to fund the Facilities on the Closing Date) in connection with any syndication, assignment or participation of the Facilities, including its commitments in respect thereof, until after the initial funding of the Facilities has occurred; (iv) no assignment or novation shall become effective with respect to all or any portion of any Initial Lender’s commitments in respect of any Facility until after the initial funding of the Facilities; and (v) unless you otherwise agree in writing, each Initial Lender shall retain exclusive control over all rights and obligations with respect to its commitments in respect of the Facilities, including all rights with respect to consents, modifications, supplements, waivers and amendments, until the Closing Date has occurred.

 

4.                                      Information.

 

You represent (with respect to Information and Projections and any forward-looking information relating to the Acquired Business, to your knowledge) that (a) all written information that has been or is hereafter furnished by you or on your behalf in connection with the transactions contemplated hereby (other than the Projections, other forward-looking information and information of a general economic or industry specific nature) (such information being referred to herein collectively as the “Information”), when taken as a whole, as of the time it was (or, in the case of Information furnished after the date hereof, hereafter is) furnished, does not (or will not) contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, taken as a whole, not materially misleading, in light of the circumstances under which they were (or hereafter are) made, and (b) the Projections and other forward-looking information that have been or will be made available to the Lead Arrangers and the Agents by you or any of your representatives have been or will be prepared in good faith based upon assumptions that you believe to be reasonable at the time made and at the time such Projections or other forward-looking information are made available to the Lead Arrangers and the Agents, it being recognized by the Lead Arrangers and the Agents that such Projections and other forward-looking information are as to future events and are not to be viewed as facts, such Projections and other forward-looking information are subject to significant uncertainties and contingencies and that actual results during the period or periods covered by any such Projections or other forward-looking information may differ significantly from the projected results, and that no assurance can be given that the projected results will be realized.  You agree that if at any time prior to the later of (x) the Closing Date and (y) the completion of the Syndication Period, you become aware that any of the representations in the preceding sentence would be incorrect in any material respect if the Information and Projections were being furnished, and such representations were being made, at such time, then you will promptly advise the Lead Arrangers and the Agents and supplement (or, prior to the Acquisition, use commercially reasonable efforts to supplement, in the case of Information and Projections and any forward-looking information relating to the Acquired Business) the Information and the Projections so that such representations will be (prior to the Acquisition, to your knowledge as to Information and Projections and any forward-looking information relating to the Acquired Business) correct in all material respects under those circumstances. You understand that, in arranging and syndicating the Facilities, we will be entitled to use and rely on the Information and the Projections without responsibility for independent verification thereof and do not assume responsibility for the accuracy or completeness of the Information or the Projections.

 

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Notwithstanding anything to the contrary, the only financial statements that shall be required to be provided to us in connection with the syndication of the Facilities will be those required to be delivered pursuant to paragraphs 4 and 5 of Exhibit D.

 

5.                                      Conditions Precedent.

 

Notwithstanding anything set forth in this Commitment Letter, the Term Sheets, the Fee Letter or the Credit Documentation, or any other agreement or other undertaking concerning the financing of the Acquisition to the contrary (other than the Funding Conditions (as defined below)), each Initial Lender’s commitment hereunder to fund the Facilities on the Closing Date, and the agreement of each Agent to perform the services described herein, are subject solely to the satisfaction or waiver by each of the Initial Lenders of the applicable conditions expressly set forth in Exhibit D attached hereto (excluding, solely with respect to the Senior Subordinated Bridge Facility, any conditions expressly relating to collateral or security interests in respect of the Incremental Term Loan B Facility) (the “Funding Conditions”); it being understood and agreed that there are no conditions (implied or otherwise) to the commitments hereunder including compliance with the terms of this Commitment Letter, the Fee Letter, the Credit Documentation, the Existing Credit Agreement or any other agreement or undertaking concerning the financing of the Acquisition, other than the Funding Conditions (and upon satisfaction or waiver of the Funding Conditions, the initial funding under the Facilities shall occur).

 

Notwithstanding anything set forth in this Commitment Letter, the Term Sheets, the Fee Letter or the Credit Documentation, or any other agreement or other undertaking concerning the financing of the Acquisition to the contrary, (i) the only representations and warranties the accuracy of which shall be a condition to availability of the Facilities on the Closing Date shall be the Specified Representations (as defined below) made by the Borrower in the Credit Documentation and (ii) the terms of the Credit Documentation shall be in a form such that they do not impair the availability of the Facilities on the Closing Date if the conditions set forth in Exhibit D attached hereto are satisfied or waived (it being understood and agreed that, subject to exceptions included in the Existing Credit Agreement, including, without limitation, for Foreign Subsidiaries (as defined in the Existing Credit Agreement, “Foreign Subsidiaries”), to the extent any Collateral (as defined in and referred to in the Incremental Term Loan B Facility Term Sheet) (other than Collateral that may be perfected by (A) the filing of a UCC financing statement or (B) taking delivery and possession of stock certificates (other than with respect to any immaterial subsidiary or any subsidiary not organized or incorporated in the United States or any state thereof)) is not or cannot be delivered or a security interest therein is not or cannot be provided or perfected on the Closing Date after your use of commercially reasonable efforts to do so and without undue burden and expense, then the provision and/or perfection of the security interest in such Collateral shall not constitute a condition precedent to the availability of the Incremental Term Loan B Facility on the Closing Date but, instead, may be accomplished within 90 days after the Closing Date (subject to extensions to be agreed upon by the Administrative Agent in its sole discretion)).

 

For purposes hereof, “Specified Representations” means the representations and warranties of the Borrower with respect to itself set forth (or referred to) in the Term Sheets relating to its legal existence; corporate power and authority relating to the entering into and

 

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performance of the Credit Documentation by the Borrower; the due authorization, execution, delivery and validity of the Credit Documentation by the Borrower, in each case related to (x) the borrowing under and the performance of the obligations under the Credit Documentation and (y) the granting and perfection of the Administrative Agent’s security interests in the Collateral (subject to the parenthetical beginning “it being understood and agreed” appearing in the preceding sentence) pursuant to, the Credit Documentation against the Borrower; the enforceability of the Credit Documentation against the Borrower; the incurrence of the loans to be made under the Facilities and the provision of the Guarantees (as defined in Term Sheets), in each case under the Facilities, the granting of the security interests in the Collateral to secure the Incremental Term Loan B Facility, the issuance of the Senior Subordinated Notes and the payment of consideration in respect of the Acquisition not conflicting with or violating the Borrower’s organizational documents; Federal Reserve margin regulations; the Investment Company Act of 1940, as amended; solvency of the Borrower and its Subsidiaries (as defined in the Existing Credit Agreement) on a consolidated basis as of the Closing Date (after giving effect to the Transactions) (solvency to be determined in a manner consistent with the manner in which solvency is determined in the solvency certificate to be delivered pursuant to paragraph 1 of Exhibit D); the USA PATRIOT Act; the use of proceeds on the Closing Date not violating OFAC or FCPA (or other similar applicable laws or regulations); subject to the parenthetical beginning “it being understood and agreed” appearing in the preceding sentence and subject to permitted liens, the creation, validity and perfection of the security interests, if any, granted in the proposed Collateral of the Acquired Business (subject to exceptions included in the Existing Credit Agreement, including, without limitation, for Foreign Subsidiaries). The provisions of this Section 5 are referred to as the “Funds Certain Provisions”.

 

6.                                      Fees.

 

As consideration for each Initial Lender’s commitment hereunder, and the agreement of each Agent to perform the services described herein, you agree to pay (or cause to be paid) to each Agent the fees to which such Agent is entitled, as set forth in this Commitment Letter and in the fee letter dated the date hereof and delivered herewith with respect to the Facilities or any agency fee letters related to the Facilities (collectively, the “Fee Letter”).

 

7.                                      Expenses; Indemnification.

 

To induce the Lead Arrangers and the Agents to issue this Commitment Letter and to proceed with the Credit Documentation, you hereby agree that, if the Closing Date occurs, you shall reimburse the Agents for all reasonable and documented out-of-pocket fees and expenses of (x) Latham & Watkins LLP as primary counsel for all Lead Arrangers and Agents, taken as a whole, subject to the proviso below and (y) one local counsel for each relevant jurisdiction as may be reasonably necessary or advisable in the reasonable judgment of the Lead Arrangers for all Lead Arrangers and Agents, taken as a whole, in each case, arising in connection with the Facilities and the preparation, negotiation, execution, delivery and enforcement of this Commitment Letter, the Fee Letter and the Credit Documentation (including in connection with our due diligence and syndication efforts); provided that, in the event that the Closing Date does not occur, you agree to reimburse the reasonable fees and expenses of Latham & Watkins LLP paid or incurred by the Lead Arrangers and Agents in an amount not to exceed the aggregate of (i) $150,000 in connection with this Commitment Letter, the Fee Letter and the Credit

 

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Documentation and (ii) $75,000 in connection with legal due diligence.  The provisions of Section 11.3 of the Existing Credit Agreement shall continue to apply, without limitation, to any other fees and expenses, including fees and expenses incurred in connection with the amendment to the Existing Credit Agreement to implement the Incremental Term Loan B Facility.

 

You further agree to indemnify and hold harmless each Lead Arranger, each Agent and each other agent or co-agent (if any) designated by the Lead Arrangers in consultation with you with respect to the Facilities (each, a “Co-Agent”) and the Initial Lenders and all of their respective affiliates and each director, officer, employee, advisor, representative and agent thereof (each, an “Indemnified Person”) from and against any and all actions, suits, proceedings (including any investigations or inquiries), claims, losses, damages, liabilities or expenses of any kind or nature whatsoever that may be incurred by or asserted against or involve any Lead Arranger, any Agent, any Co-Agent, any Initial Lender, or any other such Indemnified Person as a result of or arising out of or in any way related to or resulting from the Transactions, this Commitment Letter or the Fee Letter and, upon demand, to pay and reimburse each Lead Arranger, each Agent, each Co-Agent, the Initial Lenders, and each other Indemnified Person for any reasonable legal expenses of one firm of counsel for all such Indemnified Persons, taken as a whole (and, in the case of an actual or perceived conflict of interest, where the Indemnified Person affected by such conflict informs you of such conflict and thereafter retains its own counsel, of another firm of counsel for such affected Indemnified Person), and, if necessary, of a single local counsel in each appropriate jurisdiction (which may include a single special counsel acting in multiple jurisdictions) for all such Indemnified Persons, taken as a whole, or other reasonable and documented out-of-pocket expenses paid or incurred in connection with investigating, defending or preparing to defend any such action, suit, proceeding (including any inquiry or investigation) or claim (whether or not any Lead Arranger, any Agent, any Co-Agent, the Initial Lenders, or any other such Indemnified Person is a party to any action or proceeding out of which any such expenses arise or such matter is initiated by a third party or by you or any of your affiliates); provided, however, that you shall not have to indemnify any Indemnified Person against any loss, claim, damage, expense or liability to the extent same resulted from (x) the gross negligence or willful misconduct of such Indemnified Person (as determined by a court of competent jurisdiction in a final and non-appealable judgment), (y) a material breach by the relevant Indemnified Person (as determined by a court of competent jurisdiction in a final and non-appealable judgment) of the express contractual obligations of such Indemnified Person under this Commitment Letter or (z) any disputes among the Indemnified Parties (other than disputes involving claims against any Lead Arranger, Agent or other agent in their capacities as such) and not arising from any act or omission by the Borrower or any of its affiliates.

 

No Lead Arranger, Agent or any other Indemnified Person shall be responsible or liable to you or any other person or entity for any damages arising from the use by others of information or other materials obtained through electronic, telecommunications or other information transmission systems (including IntraLinks, Syndtrak Online or email) other than as a result of such person’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and non-appealable decision.  No party hereto shall be responsible or liable for any indirect, special, exemplary, incidental, punitive or consequential damages (including, without limitation, any loss of profits, business or anticipated savings) that may be alleged as a result of this Commitment Letter, the Fee Letter or the Transactions even if advised of the possibility thereof (except in respect of any such damages incurred or paid by an

 

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Indemnified Party to a third party), other than as a result of such party’s gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final and non-appealable decision; provided that the foregoing shall not in any way limit your indemnification obligations hereunder.

 

You agree that, without each Lead Arranger’s and each Agent’s prior written consent (such consent not to be unreasonably withheld or delayed), neither you nor any of your subsidiaries will settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification could be sought under the indemnification provision of this Commitment Letter (whether or not any Agent or any other Indemnified Person is an actual or potential party to such claim, action or proceeding), unless such settlement, compromise or consent includes an unconditional release of each Indemnified Person from all liability arising out of such claim, action or proceeding and does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any Indemnified Person.

 

8.                                      Sharing Information; Absence of Fiduciary Relationship; Affiliate Activities.

 

Each Commitment Party reserves the right to employ the services of its affiliates and branches in providing services contemplated by this Commitment Letter and to allocate, in whole or in part, to its affiliates certain fees payable to such Commitment Party in such manner as such Commitment Party and its affiliates may agree in their sole discretion. You acknowledge that (i) each Commitment Party may share with any of its affiliates and its and their respective directors, officers, employees, representatives, agents and advisors that are providing services contemplated by this Commitment Letter (including, without limitation, attorneys, accountants, consultants, bankers and financial advisors) (collectively, “Related Persons”), any information related to the Transactions, the Borrower, and the Target (and its and their respective subsidiaries and affiliates) or any of the matters contemplated hereby subject to the confidentiality provisions hereof and (ii) each Commitment Party and its affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which you, the Target or your or its affiliates may have conflicting interests regarding the transactions described herein or otherwise. We will not, however, furnish confidential information obtained from you by virtue of the transactions contemplated by this Commitment Letter or our other relationships with you to other persons (other than your affiliates). You also acknowledge that each Commitment Party has no obligation to use in connection with the Transactions, this Commitment Letter, the Fee Letter or to furnish to you, confidential information obtained by us from other companies.

 

You further acknowledge and agree that (i) no fiduciary, advisory or agency relationship between you and us is intended to be or has been created in respect of the Transactions, this Commitment Letter or the Fee Letter, irrespective of whether we or our affiliates have advised or are advising you on other matters, (ii) we, on the one hand, and you, on the other hand, have an arms-length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty on our part in respect of the transactions contemplated by this Commitment Letter, (iii) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter and the Fee Letter, (iv) you have been advised that we and our

 

11

 

affiliates are engaged in a broad range of transactions that may involve interests that differ from your interests and that we and our affiliates have no obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship, and (v) you waive, to the fullest extent permitted by law, any claims you may have against us or our affiliates for breach of fiduciary duty or alleged breach of fiduciary duty in respect of the financing transactions contemplated by this Commitment Letter and agree that we and our affiliates shall have no liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting such a fiduciary duty claim on behalf of or in right of you, including your equityholders, employees or creditors. Additionally, you acknowledge and agree that neither we nor any of our affiliates has, except as expressly contemplated in the preceding paragraph, advised or is advising you as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction in connection with the Transactions, this Commitment Letter and the Fee Letter. You shall consult with your own advisors concerning such matters and shall be responsible for making your own independent investigation and appraisal of the transactions contemplated by this Commitment Letter, and neither we nor any of our affiliates shall have any responsibility or liability to you with respect thereto. Accordingly, it is specifically understood that you will base your decisions regarding whether and how to pursue the Transactions or any portion thereof based on the advice of your legal, tax and other business advisors and such other factors that you consider appropriate. We are serving as an independent contractor hereunder, and in connection with the Transactions, in respect of its services hereunder and in such connection and not as a fiduciary or trustee of any party. The Borrower further acknowledges and agrees that any review by the Lead Arrangers of it, the Acquired Business, the Facilities, any offering of Securities (as defined in the Fee Letter), the terms of any Securities and other matters relating thereto in connection with the financing transactions contemplated by this Commitment Letter will be performed solely for the benefit of the Lead Arrangers and shall not be on behalf of the Borrower or any other person.

 

You further acknowledge that each Commitment Party is a full service securities firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services. In the ordinary course of business, any Commitment Party or its affiliates may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, you, the Acquired Business and your and their respective subsidiaries and other companies with which you, the Target or your or its subsidiaries may have commercial or other relationships. With respect to any securities and/or financial instruments so held by any Commitment Party or any of its affiliates or any of their respective customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

 

Each Agent or its affiliates may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of you, the Acquired Business or other companies that may be the subject of the arrangements contemplated by this Commitment Letter or engage in commodities trading with any thereof.

 

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9.                                      Confidentiality.

 

This Commitment Letter is delivered to you on the understanding that none of this Commitment Letter nor the Fee Letter, nor any of their terms or substance shall be disclosed, directly or indirectly, by you to any other person or entity except (a) to your subsidiaries and your and their officers, directors, affiliates, employees, equityholders, attorneys, accountants, agents and advisors who are directly involved in the consideration of this matter and on a confidential basis, (b) in connection with any pending legal or administrative proceeding or otherwise as required by applicable law or compulsory legal process (in which case you agree, to the extent permitted by applicable law, to inform us promptly thereof) or regulatory review or (c) if the Agents consent in writing to such proposed disclosure (such consent not to be unreasonably withheld); provided that (i) you may disclose this Commitment Letter, the Fee Letter and in each case the contents thereof (subject to usual and customary redactions reasonably satisfactory to the Agents) to the Acquired Business and the officers, directors, employees, equityholders, attorneys, accountants and advisors, controlling persons and equity holders thereof, in each case who are directly involved in the consideration of this matter and on a confidential basis, (ii) you may disclose this Commitment Letter and the contents thereof (but you may not disclose the Fee Letter or the contents thereof) in any prospectus or other offering memorandum relating to the Senior Subordinated Notes or in any filing with the SEC in connection with the Transactions, (iii) you may disclose the Term Sheets and the other exhibits and annexes to this Commitment Letter, and the contents thereof, to any rating agencies in connection with obtaining ratings for the Borrower and the Facilities, (iv) you may disclose the aggregate fee amounts contained in the Fee Letter as part of a generic disclosure of aggregate sources and uses related to fee amounts applicable to the Transactions to the extent customary or required in offering and marketing materials for the Facilities and/or the Senior Subordinated Notes or in any public release or filing relating to the Transactions, (v) in connection with the enforcement of your rights hereunder and (vi) in consultation with the existing Lead Arrangers, you may disclose this Commitment Letter and the Fee Letter and the contents thereof to any prospective Additional Lead Arranger or Additional Agent and to such Additional Lead Arranger’s or Additional Agent’s respective officers, directors, employees, attorneys, accountants and advisors, in each case on a confidential basis.  Your obligations under this paragraph (other than in respect of the Fee Letter) shall expire on the date occurring 12 months after the date hereof.

 

The Agents and their respective affiliates will use all confidential information provided to them or such affiliates by or on behalf of you hereunder solely for the purpose of providing the services that are the subject of this Commitment Letter and shall treat confidentially all such information; provided that nothing herein shall prevent the Agents from disclosing any such information (a) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case the Agents, to the extent permitted by law, agree to inform you promptly thereof), (b) upon the request or demand of any regulatory authority or self-regulatory body having jurisdiction or oversight over the Agents or any of their respective affiliates, their business or operations, (c) to the extent that such information becomes publicly available other than by reason of improper disclosure by the Agents or any of their affiliates, (d) to the extent that such information is received by the Agents from a third party that is not to their knowledge subject to confidentiality obligations to you or the Acquired Business, (e) to the

 

13

 

extent that such information is independently developed by the Agents, (f) to the Agents’ respective affiliates and their and their affiliates’ respective officers, directors, employees, legal counsel, independent auditors and other experts or agents who need to know such information in connection with the Transactions and are informed of the confidential nature of such information and are directed to maintain the confidentiality of same as provided herein, (g) to potential Lenders, participants or assignees (other than Disqualified Institutions) or any potential counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower, the Acquired Business or any of their respective affiliates or any of their respective obligations, in each case who agree that they shall be bound by the terms of this paragraph (or language substantially similar to this paragraph), including in any confidential information memorandum or other marketing materials, in accordance with our standard syndication processes or customary market standards for dissemination of such type of information, (h) for purposes of establishing a “due diligence” defense, (i) to enforce their respective rights hereunder or under the Fee Letter or (j) to rating agencies on a confidential basis in connection with their evaluation of any debt securities issued or sold in connection with the Transactions or in any offering documentation to prospective investors of such securities.  The Agents’ obligations under this paragraph shall automatically terminate and be superseded by the confidentiality provisions in the Credit Documentation upon the execution and delivery of the Credit Documentation and initial funding thereunder or shall expire on the date occurring 12 months after the date hereof, whichever occurs earlier.

 

10.                               Assignments; Etc.

 

This Commitment Letter and the Fee Letter (and your rights and obligations hereunder and thereunder) shall not be assignable by you without the prior written consent of each Lead Arranger and each Agent (and any attempted assignment without such consent shall be null and void), are intended to be solely for the benefit of the parties hereto and thereto (and Indemnified Persons), are not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto and thereto (and Indemnified Persons) and may not be relied upon by any person or entity other than you.  Each Initial Lender may assign its commitment hereunder to one or more prospective Lenders (other than to a Disqualified Institution); provided that, except with respect to assignments to Additional Lead Arrangers or Additional Agents as provided herein, (a) no Initial Lender shall be relieved or novated from its obligations hereunder (including its obligation to fund the Facilities on the Closing Date) in connection with any syndication, assignment or participation of the Facilities (including its commitments in respect thereof) until after the initial funding of the Facilities on the Closing Date, (b) no assignment or novation shall become effective with respect to all or any portion of any Initial Lender’s commitment in respect of the Facilities until the initial funding of the Facilities on the Closing Date, and (c) unless you agree in writing, the Initial Lenders shall retain exclusive control over all rights and obligations with respect to their respective commitments in respect of the applicable Facilities, including all rights with respect to consents, modifications, supplements and amendments, until the initial funding of the Facilities on the Closing Date has occurred. Any and all obligations of, and services to be provided by an Agent hereunder (including, without limitation, the commitment of such Agent) may be performed and any and all rights of the Agents hereunder may be exercised by or through any of their respective affiliates or branches; provided that with respect to the commitments, any assignments thereof to an

 

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affiliate will not relieve the Agents from any of their obligations hereunder unless and until such affiliate shall have funded the portion of the commitment so assigned.

 

11.                               Amendments; Governing Law; Etc.

 

This Commitment Letter and the Fee Letter may not be amended or modified, or any provision hereof or thereof waived, except by an instrument in writing signed by you and each Agent. Each of this Commitment Letter and the Fee Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter or the Fee Letter by facsimile (or other electronic, i.e. a “pdf” or “tif”) transmission shall be effective as delivery of a manually executed counterpart hereof or thereof, as the case may be. Section headings used herein and in the Fee Letter are for convenience of reference only, are not part of this Commitment Letter or the Fee Letter, as the case may be, and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter or the Fee Letter, as the case may be. Notwithstanding anything to the contrary set forth herein, each Agent may, in consultation with you, place customary advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of customary information on the Internet or worldwide web as it may choose, and circulate similar promotional materials, after the Closing Date in the form of a “tombstone” or otherwise describing the names of the Borrower, the Acquired Business and their respective affiliates (or any of them), and the amount, type and closing date of the transactions contemplated hereby, all at the expense of such Agent. This Commitment Letter and the Fee Letter set forth the entire agreement between the parties hereto as to the matters set forth herein and therein and supersede all prior understandings, whether written or oral, between us with respect to the matters herein and therein.  Each of the parties hereto agrees that (i) this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including an agreement to negotiate in good faith the Credit Documentation by the parties hereto in a manner consistent with this Commitment Letter, it being acknowledged and agreed that the funding of the Incremental Term Loan B Facility is subject only to the Funding Conditions as provided herein and (ii) the Fee Letter is a binding and enforceable agreement with respect to the subject matter contained therein.  THIS COMMITMENT LETTER AND THE FEE LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS THEREOF); provided, however, that (a) whether the Acquisition has been consummated as contemplated by the Acquisition Documents and (b) the determination of whether the representations made by the Acquired Business or any of its affiliates are accurate and whether as a result of any inaccuracy of any such representations the Borrower or any of its affiliates have the right to terminate its (or their) obligations, or has the right not to consummate the Acquisition, under the Acquisition Documents, in each case, shall be governed by, and construed in accordance with, English law.

 

12.                               Jurisdiction.

 

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in the County of New York, Borough of Manhattan, and

 

15

 

any appellate court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and agrees that all claims in respect of any such action or proceeding shall be heard and determined only in such courts located within New York County, (b) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letter or the transactions contemplated hereby or thereby in any such New York State or Federal court, as the case may be, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Service of any process, summons, notice or document by registered mail or overnight courier addressed to you at the address above shall be effective service of process against you for any suit, action or proceeding brought in any such court. Nothing in this paragraph shall affect the right of any Commitment Party, any of its affiliates or any Indemnified Party to serve process in any manner permitted by law.

 

13.                               Waiver of Jury Trial.

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, SUIT, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER, THE FEE LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.

 

14.                               Surviving Provisions.

 

The provisions of Sections 3, 6, 7, 8, 9, 11, 12, 13 and 14 of this Commitment Letter and the provisions of the Fee Letter shall remain in full force and effect regardless of whether definitive Credit Documentation shall be executed and delivered (other than those provisions relating to syndication which shall terminate upon the expiration or termination of this Commitment Letter if no definitive Credit Documentation shall have been executed and delivered) and notwithstanding the termination of this Commitment Letter or the commitments of the Agents hereunder and our agreements to perform the services described herein; provided that your obligations under this Commitment Letter and the Fee Letter (other than those provisions relating to confidentiality, the syndication of the Facilities and the payment of agency fees to any Agent) shall automatically terminate and be superseded by (to the extent covered by comparable provisions in) the definitive Credit Documentation relating to the Facilities upon the initial funding thereunder and the payment of all amounts owing at such time hereunder and under the Fee Letter.  You may terminate the Initial Lenders’ commitments with respect to the Facilities hereunder at any time in their entirety (but not in part), subject to the provisions of the preceding sentence, by written notice to the Initial Lenders.

 

15.                               PATRIOT Act Notification.

 

Each Agent hereby notifies you that each Agent and each Lender subject to the USA PATRIOT ACT (Title III of Pub. Law 107-56 (signed into law October 26, 2001)) (as

 

16

 

amended from time to time, the “PATRIOT Act”) is required to obtain, verify and record information that identifies the Borrower and each other obligor under the Facilities and any related Credit Documentation and other information that will allow such Lender to identify the Borrower and each other obligor in accordance with the PATRIOT Act. This notice is given in accordance with the requirements of the PATRIOT Act and is effective as to each Agent and each Lender. You hereby acknowledge and agree that the Agents shall be permitted to share any or all such information with the Lenders.

 

16.                               Termination and Acceptance.

 

Each Initial Lender’s commitments with respect to the Facilities as set forth above, and each Agent’s agreements to perform the services described herein, will automatically terminate (without further action or notice and without further obligation to you) on the first to occur of (i) 5:00 p.m. New York City time on April 30, 2017 (the “End Date”); provided, that if the “Long Stop Date” as defined under and referred to in the Acquisition Agreement as in effect on the date hereof is extended by an initial additional thirty (30) day period or one further thirty (30) day period pursuant to Section 4.3 thereof, then the Borrower shall have the right to extend the End Date by an additional thirty (30) day period or one further thirty (30) day period (provided further, that the extended End Date shall not be later than the extended “Long Stop Date” as defined under and referred to in the Acquisition Agreement as in effect on the date hereof) by notifying us in writing of such election prior to the end of the End Date (prior to giving effect to any such extension), (ii) any time after the execution of the Acquisition Agreement and prior to the consummation of the Transactions, the date of the termination of the Acquisition Agreement in accordance with its terms (other than with respect to terms that survive such termination), (iii) with respect to any portion of the Incremental Term Loan B Facility, if and to the extent the consummation of the Acquisition occurs without the use of such portion of the Incremental Term Loan B Facility or (iv) the earliest date on which you release a written public statement of your intention not to consummate the Transactions.  In addition, our commitment hereunder to provide and arrange the Senior Subordinated Bridge Facility will terminate upon, and to the extent of, the issuance of the Senior Subordinated Notes or the Securities (as defined in the Fee Letter) in lieu thereof.

 

If the foregoing correctly sets forth our agreement with you, please indicate your acceptance of the terms of this Commitment Letter and of the Fee Letter by returning to us executed counterparts hereof and of the Fee Letter not later than 11:59 p.m., New York City time, on January 20, 2017.  The commitments of the Initial Lenders hereunder, and the Agents’ agreements to perform the services described herein, will expire automatically (and without further action or notice and without further obligation to you) at such time in the event that we have not received such executed counterparts in accordance with the immediately preceding sentence.

 

[Remainder of this page intentionally left blank]

 

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We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CITIGROUP   GLOBAL MARKETS INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Thomas Cole
    
	
 
    	
 
    	
 
    	
Name:   Thomas Cole
    
	
 
    	
 
    	
 
    	
Title:   Managing Director
    

 

[Commitment Letter]

 

 

Accepted and agreed to as of the date first above written:

 

AMC ENTERTAINMENT HOLDINGS, INC.

 

 

	
By:
    	
/s/   Terry W. Crawford
    	
 
    
	
 
    	
Name:   Terry W. Crawford
    	
 
    
	
 
    	
Title:   Senior Vice President & Treasurer
    	
 
    

 

[Commitment Letter]

 

 

EXHIBIT A

 

Project Thor

Transaction Description

 

Capitalized terms used but not defined in this Exhibit A shall have the meanings set forth in the commitment letter to which this Exhibit A is attached (the “Commitment Letter”) and in the other Exhibits to the Commitment Letter.

 

The Borrower intends to (i) acquire all of the outstanding equity of a company identified to us and code-named “Thor” (the “Target” and, together with its subsidiaries, the “Acquired Business”) on the Closing Date (as defined below), by way of the purchase of the entire issued share capital of the Target by a newly-formed or existing direct or indirect wholly-owned subsidiary (such subsidiary, “Acquisition Sub”) of the Borrower (the “Acquisition”); and (ii) refinance in full all outstanding indebtedness of the Target and the indebtedness under (1) that certain senior facilities agreement dated as of May 6, 2015 (as amended and/or restated from time to time) between Nordic Cinema Group AB, The Governor and Company of the Bank of Ireland, Danske Bank A/S, Danmark, Sverige Filial, GE Corporate Finance Bank SCA, London Branch, Natixis and Nordea Bank AB (publ), (2) that certain Bonnier Loan Agreement between Bonnier Holding AB, a company incorporated in Sweden with registered number 556576-7463, and Nordic Cinema Group Holding AB, a company incorporated in Sweden with registered number 559010-5036, constituting the Bonnier Shareholder Loan (as amended and/or restated from time to time) and (3) that certain Bridgepoint Loan Agreement dated July 9, 2015 between European Cinemas S.à r.l., a company incorporated in Luxembourg with registered number B197419, and Nordic Cinema Group Holding AB, a company incorporated in Sweden with registered number 559010-5036, constituting the Bridgepoint Shareholder Loan (as amended and/or restated from time to time) (such refinancings, the “Refinancing”).

 

You have further advised us that in connection with the Acquisition:

 

(A)          on the date of the consummation of the Acquisition, the Borrower shall borrow incremental term loans (the “Incremental Term Loan B Facility”) under the Borrower’s existing credit agreement dated April 30, 2013 (as amended by that certain First Amendment to Credit Agreement dated December 11, 2015 and the Second Amendment to Credit Agreement dated November 8, 2016, the “Existing Credit Agreement”) in an aggregate amount of up to $675.0 million, which amount (1) may be reduced, at the Borrower’s option, in consultation with the Lead Arrangers, upon written notice delivered prior to the launch of general syndication, on a dollar-for-dollar basis by the NCM Net Cash Proceeds (as defined below) and (2) shall be automatically reduced on a dollar-for-dollar basis by the aggregate net cash proceeds of all offering of common stock by the  Borrower (an “Equity Offering”) consummated prior to the launch of general syndication (x) that are not required to be applied to prepay amounts outstanding under the Bridge Credit Agreement or (y) that have not been applied to reduce the commitments in respect of the Senior Subordinated Bridge Facility as described below; and

 

(B)          the Borrower will, at its option, either (i) issue in one or more Offerings (as defined below) an aggregate principal amount of its senior subordinated notes (the “Senior Subordinated Notes”) that, taken together, generate gross proceeds on or prior to the date of the

 

 

consummation of the Acquisition and funding of the Incremental Term Loan B Facility and the Senior Subordinated Bridge Facility (if applicable) (the “Closing Date”) of not less than $325.0 million with the proceeds deposited into an escrow account pending release on the Closing Date; or (ii) to the extent the Borrower receives gross proceeds from the Offerings on or prior to the Closing Date in an amount less than $325.0 million, then the Borrower will borrow on the Closing Date senior subordinated bridge loans (the “Senior Subordinated Bridge Loans”) under a senior subordinated increasing rate bridge facility (the “Senior Subordinated Bridge Facility” and, together with the Incremental Term Loan B Facility, the “Facilities”) in an aggregate principal amount of up to $325.0 million, which amount (1) may be reduced, at the Borrower’s option, in consultation with the Lead Arrangers, upon written notice delivered prior to the launch of general syndication, on a dollar-for-dollar basis by the NCM Net Cash Proceeds (as defined below) and (2) shall be automatically reduced on a dollar-for-dollar basis by the aggregate net cash proceeds of all Equity Offerings consummated prior to the launch of general syndication that are not required to be applied to prepay amounts outstanding under the Bridge Credit Agreement; provided, however, that any such reduction pursuant to the preceding clauses (1) and (2) shall not result in the Senior Subordinated Bridge Facility being in an amount less than $250.0 million.

 

“Offerings” means, collectively, any Rule 144A or other private placement of Senior Subordinated Notes and any offering or placement of Securities (as defined in the Fee Letter), in each case that is consummated after the date hereof and on or prior to the Closing Date (it being understood that the terms “Offerings” and “Senior Subordinated Notes” as used herein exclude any offering or placement of securities that is required to repay or refinance any indebtedness outstanding under the Bridge Credit Agreement).

 

“NCM Net Cash Proceeds” means proceeds from the sale of equity interests in National CineMedia, L.L.C. owned by the Borrower.

 

“Transactions” means, collectively, the Acquisition, the Refinancing and the other transactions described above in clauses (A) and (B).

 

A-2

 

EXHIBIT B

 

Project Thor

$675.0 million Incremental Term Loan B Facility

Summary of Principal Terms and Conditions(1)

 

	
Borrower:
    	
 
    	
AMC Entertainment Holdings, Inc., a Delaware corporation (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Lead Arranger and Bookrunner:
    	
 
    	
Citi will act as lead arranger and bookrunner for   the Incremental Term Loan B Facility (as defined below), and will perform the   duties customarily associated with such roles (together with any Additional   Lead Arrangers appointed in accordance with the terms set forth in the   Commitment Letter (if any), the “Lead Arrangers”).
    
	
 
    	
 
    	
 
    
	
Incremental Term Loan B Facility:
    	
 
    	
1. Amount: “B” incremental term loan facility   in an aggregate principal amount of up to $675.0 million (as such amount may   be reduced pursuant to paragraph (A) of Exhibit A to the Commitment   Letter) (the “Incremental Term Loan B Facility”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
2. Currency: U.S. dollars.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3. Use of Proceeds: The loans made pursuant   to the Incremental Term Loan B Facility (the “Incremental Term Loans”)   may only be incurred on the Closing Date and the proceeds thereof shall be   utilized, together with the proceeds of the Senior Subordinated Notes, the   Securities or the Senior Subordinated Bridge Facility, as applicable, solely   (i) to finance, in part, the Acquisition and the Refinancing and to pay   the fees, premiums, expenses and other transaction costs in connection with   the Transactions, including OID and upfront fees and (ii) to the extent   any portion of the Incremental Term Loan B Facility remains available   following application of proceeds pursuant to preceding clause (i), for   general corporate purposes.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
4. Maturity: The final maturity date of the   Incremental Term Loan B Facility shall be December 15, 2023 (the “Incremental   Term Loan Maturity Date”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
5. Amortization: (i) Annual amortization   (payable in four equal quarterly installments) of the Incremental Term Loans   shall be required in an amount equal to 1.00% of the initial aggregate   principal amount of the Incremental Term Loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii) The remaining aggregate principal amount   of Incremental Term 
    

 

(1)  All capitalized terms used but not defined herein have the meanings given to them in the Commitment Letter to which this term sheet is attached, including the other Exhibits thereto.

 

 

	
 
    	
 
    	
Loans originally incurred shall be due and payable   in full on the Incremental Term Loan Maturity Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
6. Availability: Incremental Term Loans may   only be incurred on the Closing Date. Once repaid, no amount of Incremental   Term Loans may be reborrowed.
    
	
 
    	
 
    	
 
    
	
Guarantees and Security:
    	
 
    	
Same as the Existing Credit Agreement subject in   each case to the Funds Certain Provisions. “Guaranties”, “Guarantors”   and “Collateral” shall be as defined in the Existing Credit Agreement;   provided that the exceptions included in the Existing Credit Agreement,   including, without limitation, for Foreign Subsidiaries, shall apply.
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
The definitive documentation governing the   Incremental Term Loan B Facility (the “Incremental Credit Documentation”)   will be the Existing Credit Agreement as amended by the Incremental Amendment   (as defined in the Existing Credit Agreement) (the “Documentation   Principles”); and the funding under the Incremental Credit Documentation   on the Closing Date will be subject only to the Funding Conditions.
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments:
    	
 
    	
101% soft call protection shall be applicable to the   Incremental Term Loan B Facility from the Closing Date until the six-month   anniversary thereof; provided that, in the event the Incremental Term   Loan B Facility is, at the option of the Lead Arrangers, structured as a   “tack on” to the 2016 Incremental Term Loans under and as defined in the   Existing Credit Agreement, soft call protection shall be applicable to the   Incremental Term Loan B Facility as set forth in the Existing Credit   Agreement with respect to the 2016 Incremental Term Loans.
    
	
 
    	
 
    	
 
    
	
Mandatory Repayments and Commitment Reductions:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Interest Rates:
    	
 
    	
At the Borrower’s option, Incremental Term   Loans may be maintained from time to time as (x) Base Rate Loans, which   shall bear interest at the Base Rate (or, if greater at any time, the Base   Rate Floor (as defined below)) in effect from time to time plus the   Applicable Margin (as defined below) or (y) LIBOR Loans, which shall   bear interest at LIBOR (adjusted for statutory reserve requirements) as   determined by the Administrative Agent for the respective interest period   (or, if greater at any time, the LIBOR Floor (as defined below)), plus   the Applicable Margin.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Applicable Margin” shall mean a percentage   per annum equal to (i) in the case of (A) Base Rate Loans, 1.75%,   and (B) LIBOR Loans, 2.75%.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Base Rate” shall mean the highest of   (x) the rate that the Administrative Agent announces from time to time   as its prime lending rate, as in effect 
    

 

B-2

 

	
 
    	
 
    	
from time to time, (y) 1/2 of 1% in excess of   the overnight federal funds rate, and (z) LIBOR for an interest period   of one month plus 1.00%.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Base Rate Floor” shall mean 1.00% per annum.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“LIBOR Floor” shall mean 0.00% per annum.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest periods of 1, 2, 3 and 6 months or, to the   extent agreed to by all Lenders with commitments and/or Incremental Term   Loans under a given tranche of the Incremental Term Loan B Facility, 12   months or periods shorter than 1 month shall be available in the case of   LIBOR Loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Interest in respect of Base Rate Loans shall be   payable quarterly in arrears on the last business day of each calendar   quarter. Interest in respect of LIBOR Loans shall be payable in arrears at   the end of the applicable interest period and every three months in the case   of interest periods in excess of three months. Interest will also be payable   at the time of repayment of any Loans and at maturity. All interest on Base   Rate Loans, LIBOR Loans and commitment fees and any other fees shall be based   on a 360-day year and actual days elapsed (or, in the case of Base Rate Loans   determined by reference to the prime lending rate, a 365/366-day year and   actual days elapsed).
    
	
 
    	
 
    	
 
    
	
Default Interest:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Yield Protection:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Agent/Lender Fees:
    	
 
    	
The Administrative Agent, the Lead Arrangers and the   Lenders shall receive such fees as have been separately agreed upon.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent:
    	
 
    	
Only those conditions precedent on Exhibit D   to the Commitment Letter, subject in each case to the Funds Certain   Provisions.
    
	
 
    	
 
    	
 
    
	
Representations and Warranties:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Affirmative, Negative and Financial Covenants:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Unrestricted Subsidiaries:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Assignments and
    	
 
    	
Same as the Existing Credit Agreement (other than   Disqualified 
    

 

B-3

 

	
Participations:
    	
 
    	
Institutions).
    
	
 
    	
 
    	
 
    
	
Waivers and Amendments:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Defaulting Lenders:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Indemnification; Expenses:
    	
 
    	
Same as the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum; Submission to Exclusive   Jurisdiction:
    	
 
    	
Same as the Existing Credit Agreement (New York).
    
	
 
    	
 
    	
 
    
	
Counsel to the Administrative Agent and the Lead   Arrangers:
    	
 
    	
Latham & Watkins LLP.
    

 

B-4

 

EXHIBIT C

 

Project Thor

$325.0 million Senior Subordinated Bridge Facility

Summary of Principal Terms and Conditions

 

	
Borrower:
    	
 
    	
AMC Entertainment Holdings, Inc., a Delaware corporation (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Agent:
    	
 
    	
Citi, acting through one or more of its branches or   affiliates, will act as sole administrative agent (in such capacity, the “Bridge   Facility Administrative Agent”) and Citi will act as syndication agent   for a syndicate of banks, financial institutions and other lenders, excluding   any Disqualified Institutions (the “Bridge Lenders”), and will perform   the duties customarily associated with such roles.
    
	
 
    	
 
    	
 
    
	
Joint Lead Arrangers and Joint Bookrunners:
    	
 
    	
Citi will act as lead arranger and bookrunner for   the Senior Subordinated Bridge Facility, and will perform the duties   customarily associated with such roles (together with any Additional Lead   Arrangers appointed in accordance with the terms set forth in the Commitment   Letter (if any), the “Lead Bridge Arrangers”).
    
	
 
    	
 
    	
 
    
	
Senior Subordinated Bridge Facility:
    	
 
    	
Senior subordinated unsecured bridge loans in an   aggregate principal amount of up to $325.0 million, less   the aggregate gross cash proceeds from any Senior Subordinated Notes and   Securities (as defined in the Fee Letter) issued (i) on the Closing Date   or (ii) prior to the Closing Date, with the proceeds thereof deposited   into an escrow account pending release on the Closing Date (as such amount   may be reduced pursuant to paragraph (B) of Exhibit A to the   Commitment Letter) (the “Senior Subordinated Bridge Loans”) provided   that the escrow agreement shall be in form and substance acceptable to the   Borrower and the Lead Bridge Arrangers and the escrow arrangement and release   condition of such proceeds from the escrow account shall be subject to the   Funds Certain Provisions and not be more restrictive to the Borrower than the   Funding Conditions.
    
	
 
    	
 
    	
 
    
	
Purpose:
    	
 
    	
The proceeds of the Senior Subordinated Bridge Loans   will be used by the Borrower on the Closing Date, together with the proceeds   from the Incremental Term Loan B Facility, and the issuance of Senior   Subordinated Notes and/or Securities (if any), solely to finance, in part,   the Acquisition and the Refinancing 
    

 

 

	
 
    	
 
    	
and to pay the fees, premiums, expenses and other   transaction costs.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Bridge Lenders will make the Senior Subordinated   Bridge Loans on the Closing Date in a single drawing. Amounts borrowed under   the Senior Subordinated Bridge Facility that are repaid or prepaid may not be   reborrowed.
    
	
 
    	
 
    	
 
    
	
Guarantees:
    	
 
    	
Same as the Borrower’s existing 5.875% Senior   Subordinated Notes due 2026 (the “Existing Subordinated Notes”);   provided that the exceptions included in the Existing Credit Agreement,   including, without limitation, for Foreign Subsidiaries, shall apply.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Interest Rates:
    	
 
    	
The Senior Subordinated Bridge Loans shall bear   interest, reset quarterly, at the rate of the Adjusted LIBOR plus 4.75% per   annum (the “Interest Rate”) and such spread over Adjusted LIBOR shall   automatically increase by 0.50% for each period of three months (or portion   thereof) after the Closing Date that Senior Subordinated Bridge Loans are   outstanding; provided, however, that the interest rate   determined in accordance with the foregoing shall not exceed the Total Bridge   Loan Cap (as defined in the Fee Letter) (excluding interest at the default   rate as described below).

 

“Adjusted LIBOR” on any date, means the   greater of (i) 1.00% and (ii) the rate (adjusted for statutory   reserve requirements for eurocurrency liabilities) for eurodollar deposits   for a three-month period appearing on the LIBOR 01 page published by   Reuters two business days prior to such date.

 

Upon the occurrence of a Demand Failure Event (as   defined in the Fee Letter), the outstanding Senior Subordinated Bridge Loans   shall automatically begin to accrue interest at the Total Bridge Loan Cap.
    
	
 
    	
 
    	
 
    
	
Interest Payments:
    	
 
    	
Interest on the Senior Subordinated Bridge Loans   will be payable in cash, quarterly in arrears.
    
	
 
    	
 
    	
 
    
	
Default Rate:
    	
 
    	
Overdue principal, interest and other amounts shall   bear interest, after as well as before judgment, at a rate per annum equal to   2.00% plus the Interest Rate.
    
	
 
    	
 
    	
 
    
	
Conversion and Maturity:
    	
 
    	
Any outstanding amount under the Senior Subordinated   Bridge Loans will be required to be repaid on the earlier of (a) the   closing date(s) of any permanent financing(s), but only to the 
    

 

C-2

 

	
 
    	
 
    	
extent of the net cash proceeds realized therefrom,   and (b) the one-year anniversary of the initial funding date of the   Senior Subordinated Bridge Loans (the “Bridge Loan Maturity Date”); provided,   however, that if the Borrower has failed to raise permanent financing   before the date set forth in clause (b) above, the Senior Subordinated   Bridge Loans shall be converted, subject to the conditions outlined under   “Conditions to Conversion” on Annex C-I hereto, to a senior   subordinated unsecured term loan facility (the “Senior Subordinated   Extended Term Loans”) with a maturity of seven years after the Conversion   Date (as defined in Annex C-I hereto). At any time or from time to   time on or after the Conversion Date, upon reasonable prior written notice   from the Bridge Lenders and in a minimum principal amount of at least $100.0   million (or such lesser principal amount as represents all outstanding Senior   Subordinated Extended Term Loans), the Senior Subordinated Extended Term   Loans may be exchanged in whole or in part for senior subordinated unsecured   exchange notes (the “Senior Subordinated Exchange Notes”) having an   equal principal amount and having the terms set forth in Annex C-II   hereto.

 

The Senior Subordinated Extended Term Loans will be   governed by the provisions of the Senior Subordinated Bridge Documentation   (as defined below) and will have the same terms as the Senior Subordinated   Bridge Loans except as expressly set forth in Annex C-I hereto. The   Senior Subordinated Exchange Notes will be issued pursuant to an indenture   that will have the terms set forth on Annex C-II hereto.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
The Borrower will prepay the Senior Subordinated   Bridge Loans at par, together with accrued interest to the prepayment date,   with any of the following: (i) the net proceeds from the issuance of the   Securities (as defined in the Fee Letter); provided that in the event   any Bridge Lender or affiliate of a Bridge Lender purchases debt securities   from the Borrower pursuant to a “Securities Demand” under the Fee Letter at   an issue price above the level at which such Bridge Lender or affiliate has   reasonably determined such Securities can be resold by such Bridge Lender or   affiliate to a bona fide third party at the time of such purchase (and   notifies the Borrower thereof), the net proceeds received by the Borrower in   respect of such Securities may, at the option of such Bridge Lender or   affiliate, be applied first to repay the Senior Subordinated Bridge Loans held   by such Bridge Lender or affiliate (provided that if there is more   than one such Bridge Lender or affiliate then such net proceeds will be   applied pro rata to repay the Senior Subordinated Bridge Loans of all such   Bridge Lenders or affiliates in proportion to such Bridge 
    

 

C-3

 

	
 
    	
 
    	
Lenders’ or affiliates’ principal amount of   Securities purchased from the Borrower) prior to being applied to prepay the   Senior Subordinated Bridge Loans held by other Bridge Lenders;   (ii) subject to prepayment requirements under the Existing Credit   Agreement and the Bridge Credit Agreement, the net proceeds from any other   indebtedness (including subordinated indebtedness) for borrowed money   incurred by the Borrower and its restricted subsidiaries (other than the   revolving credit facility under the Existing Credit Agreement, revolving   credit facilities used for working capital and other debt permitted by the   terms of the Existing Credit Agreement); (iii) subject to prepayment   requirements under the Bridge Credit Agreement, the net cash proceeds from   the issuance of equity interests by, or equity contributions to, Borrower   (other than equity contributed pursuant to employee stock plans and excluding   any issuance of equity interests to fund the Transactions); and   (iv) subject to certain customary and other exceptions, reinvestment   rights to be agreed upon and prepayment requirements under the Existing   Credit Agreement and the Bridge Credit Agreement, the net proceeds from   non-ordinary course asset sales by, and casualty events related to the   property of, Borrower or any of its restricted subsidiaries (including sales   of equity interests of any restricted subsidiary of the Borrower).
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments:
    	
 
    	
The Senior Subordinated Bridge Loans may be prepaid   at par prior to the Bridge Loan Maturity Date, in whole or in part, upon   written notice, at the option of the Borrower, at any time, together with   accrued interest to the prepayment date and break funding payments, if   applicable.
    
	
 
    	
 
    	
 
    
	
Change of Control:
    	
 
    	
In the event of a Change of Control (to be defined   in a manner consistent with the Existing Subordinated Notes, each Bridge   Lender will have the right to require the Borrower, and the Borrower must   offer, to prepay at par the outstanding principal amount of the Senior   Subordinated Bridge Loans plus accrued and unpaid interest thereon to the   date of prepayment.
    
	
 
    	
 
    	
 
    
	
Assignments and Participations:
    	
 
    	
The Bridge Lenders shall have the right to assign   their interest in the Senior Subordinated Bridge Loans in whole or in part   without the consent of the Borrower (other than to Disqualified   Institutions); provided, however, that (i) prior to the   date that is one year after the Closing Date and unless a Demand Failure   Event in respect of the Senior Subordinated Bridge Loans has occurred or a   payment or bankruptcy event of default shall have occurred and be continuing,   the consent of the Borrower shall be required with respect to any assignment   (such consent not to be unreasonably withheld, delayed or conditioned) if,   subsequent 
    

 

C-4

 

	
 
    	
 
    	
thereto, the Commitment Parties (together with their   respective affiliates) would hold, in the aggregate, less than 50.1% of the   outstanding Senior Subordinated Bridge Loans and (ii) the Borrower shall   be notified of such assignment. For any assignments for which the Borrower’s   consent is required, such consent shall be deemed to have been given if the   Borrower has not responded within five business days of a written request for   such consent.

 

The Bridge Lenders shall have the right to   participate their interest in the Senior Subordinated Bridge Loans without   restriction, other than customary voting limitations and, to the extent the   list of Disqualified Institutions is made available to all Bridge Lenders to   Disqualified Institutions. Participants will have the same benefits as the   selling Bridge Lenders would have (and will be limited to the amount of such   benefits) with regard to cost and yield protection, subject to customary   limitations and restrictions.
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
The definitive credit documentation for the Senior   Subordinated Bridge Facility (the “Senior Subordinated Bridge   Documentation”) will be consistent with the indenture governing the   Existing Subordinated Notes, as modified to (i) reflect the terms and   conditions set forth herein and in the Commitment Letter, (ii) take   account of differences related to the operational requirements of the   Borrower, the Acquired Business and their respective subsidiaries in light of   their size, industries, businesses, business practices (after giving effect   to the Transactions); provided that “baskets” may be greater than those   contained in the Existing Subordinated Notes after giving due consideration   to the pro forma metrics of the Borrower and (iii) operational and   administrative changes reasonably required by the Bridge Facility   Administrative Agent, the definitive terms of which will be negotiated in   good faith (the “Bridge Documentation Principles”); and the Senior   Subordinated Bridge Documentation will be subject only to the Funding   Conditions. Notwithstanding the foregoing, the Senior Subordinated Bridge   Documentation will contain only those mandatory repayments, representations,   warranties, covenants and events of default expressly set forth (or referred   to) in this Term Sheet, and only the conditions to borrowing set forth or   referred to in Exhibit D to the Commitment Letter (subject to the Funds   Certain Provisions). The Senior Subordinated Bridge Documentation shall   contain language to address the European Union bail-in rules (including   in a representation and in “Defaulting Lenders” provisions) in a form   reasonably satisfactory to the Borrower 
    

 

C-5

 

	
 
    	
 
    	
and the Bridge Facility Administrative Agent.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to Borrowing:
    	
 
    	
Only the conditions precedent on Exhibit D to   the Commitment Letter, subject in each case to the Funds Certain Provisions.
    
	
 
    	
 
    	
 
    
	
Representations and Warranties:
    	
 
    	
The Senior Subordinated Bridge Documentation will   contain representations and warranties relating to the Borrower and its   subsidiaries substantially similar to those contained in the Existing Credit   Agreement, with such changes as are appropriate to reflect the bridge loan   nature of the Senior Subordinated Bridge Loans (and in any event such   representations and warranties shall be no more restrictive to the Borrower   and its subsidiaries than those set forth in the Existing Credit Agreement).
    
	
 
    	
 
    	
 
    
	
Covenants:
    	
 
    	
The Senior Subordinated Bridge Documentation will   contain affirmative and incurrence-based negative covenants relating to the   Borrower and its restricted subsidiaries consistent, to the extent   applicable, with the Bridge Documentation Principles. The negative covenants   governing restricted payments, liens and limitations on indebtedness shall be   no more restrictive than those set forth in the Existing Credit Agreement   prior to the Conversion Date. The Senior Subordinated Bridge Documentation   shall not contain any financial maintenance covenants.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Customary for transactions of this type and   consistent with the Bridge Documentation Principles, including, without   limitation, payment defaults, covenant defaults, bankruptcy and insolvency,   monetary judgments in an amount in excess of an amount to be agreed, cross   acceleration of and failure to pay at final maturity other indebtedness   aggregating an amount in excess of an amount to be agreed, subject to, in   certain cases, customary thresholds and grace periods.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
Amendments and waivers of the Senior Subordinated   Bridge Documentation will require the approval of Bridge Lenders holding at   least a majority of the outstanding Senior Subordinated Bridge Loans, except   that the consent of each affected Bridge Lender will be required for, among   other things, (i) reductions of principal, interest rates or fees,   (ii) extensions of the Bridge Loan Maturity Date, (iii) additional   restrictions on the right to exchange Senior Subordinated Extended Term Loans   for Senior Subordinated Exchange Notes or any amendment of the rate of such   exchange or (iv) any amendment to the Senior Subordinated Exchange Notes   that requires (or would, if any Senior Subordinated Exchange Notes were   outstanding, require) 
    

 

C-6

 

	
 
    	
 
    	
the approval of all holders of Senior Subordinated   Exchange Notes.
    
	
 
    	
 
    	
 
    
	
Cost and Yield Protection:
    	
 
    	
To conform to the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Expenses and Indemnification:
    	
 
    	
To conform to the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum; Submission   to Exclusive Jurisdiction:
    	
 
    	
All Senior Subordinated Bridge Documentation shall   be governed by the internal laws of the State of New York. The Borrower and   the Guarantors will submit to the exclusive jurisdiction and venue of any New   York State court or Federal court sitting in the County of New York, Borough   of Manhattan, and appellate courts thereof.
    
	
 
    	
 
    	
 
    
	
Counsel to the Bridge Facility Administrative Agent   and the Lead Bridge Arrangers:
    	
 
    	
Latham & Watkins LLP.
    

 

C-7

 

ANNEX C-I

 

Senior Subordinated Extended Term Loans

 

	
Borrower:
    	
 
    	
Same as Senior Subordinated Bridge Loans.
    
	
 
    	
 
    	
 
    
	
Guarantees:
    	
 
    	
Same as Senior Subordinated Bridge Loans.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Facility:
    	
 
    	
Subject to “Conditions to Conversion” below, the   Senior Subordinated Bridge Loans will convert into senior subordinated   unsecured extended loans (the “Senior Subordinated Extended Term Loans”)   in an initial principal amount equal to 100% of the outstanding principal   amount of the Senior Subordinated Bridge Loans on the one-year anniversary of   the Closing Date (the “Conversion Date”). Subject only to the   conditions precedent set forth below, the Senior Subordinated Extended Term   Loans will be available to the Borrower to refinance the Senior Subordinated   Bridge Loans on the Conversion Date. The Senior Subordinated Extended Term   Loans will be governed by the Senior Subordinated Bridge Documentation and,   except as set forth below, shall have the same terms as the Senior   Subordinated Bridge Loans.
    
	
 
    	
 
    	
 
    
	
Maturity:
    	
 
    	
Seven years from the Conversion Date (the “Final   Maturity Date”).
    
	
 
    	
 
    	
 
    
	
Interest Rate:
    	
 
    	
The Senior Subordinated Extended Term Loans shall   bear interest, payable in cash semi-annually, in arrears at a fixed rate per   annum equal to the Total Bridge Loan Cap.
    
	
 
    	
 
    	
 
    
	
Covenants, Events of Default and Prepayments:
    	
 
    	
From and after the Conversion Date, the covenants,   events of default and mandatory prepayment provisions applicable to the   Senior Subordinated Extended Term Loans will conform to those applicable to   the Senior Subordinated Exchange Notes (described on Annex C-II),   except with respect to the right to exchange Senior Subordinated Extended   Term Loans for Senior Subordinated Exchange Notes; provided that the   optional prepayment provisions applicable to the Senior Subordinated Bridge   Loans shall remain applicable to the Senior Subordinated Extended Term Loans.
    
	
 
    	
 
    	
 
    
	
Conditions to Conversion:
    	
 
    	
One year after the Closing Date, unless (A) the   Borrower is subject to a bankruptcy or other insolvency proceeding or   (B) there exists a payment default (whether or not matured) with respect   to the Senior Subordinated Bridge Loans or any fees 
    

 

 

	
 
    	
 
    	
payable thereunder, the Senior Subordinated Bridge   Loans shall convert into the Senior Subordinated Extended Term Loans; provided,   however, that if an event described in clause (B) is continuing   at the scheduled Conversion Date but the applicable grace period, if any, set   forth in the events of default provision of the Senior Subordinated Bridge   Documentation has not expired, the Conversion Date shall be deferred until   the earlier to occur of (i) the cure of such event or (ii) the   expiration of any applicable grace period.
    

 

C-I-2

 

ANNEX C-II

 

Senior Subordinated Exchange Notes

 

	
Issuer:
    	
 
    	
Same as Borrower under Senior Subordinated Extended   Term Loans.
    
	
 
    	
 
    	
 
    
	
Guarantees:
    	
 
    	
Same as Senior Subordinated Extended Term Loans.
    
	
 
    	
 
    	
 
    
	
Maturity:
    	
 
    	
Seven years from the Conversion Date.
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Interest Rate; Redemption:
    	
 
    	
Each Senior Subordinated Exchange Note will bear   interest, payable in cash semi-annually in arrears, at a fixed rate per annum   equal to the Total Bridge Loan Cap. Except as set forth below, the Senior   Subordinated Exchange Notes will be non-callable until the third anniversary   of the Closing Date and will be callable thereafter at par plus accrued   interest plus a premium equal to three-fourths of the coupon of the Senior   Subordinated Exchange Notes, declining ratably to par on the date that is two   years prior to maturity of the Senior Subordinated Exchange Notes. The Senior   Subordinated Exchange Notes will provide for mandatory repurchase offers   consistent with the Existing Subordinated Notes.

 

Prior to the third anniversary of the Closing Date,   the Borrower may redeem up to 35% of such Senior Subordinated Exchange Notes   with the proceeds from an equity offering at a redemption price equal to par   plus accrued interest plus a premium equal to 100% of the coupon in effect on   such Senior Subordinated Exchange Notes.

 

Prior to the third anniversary of the Closing Date,   the Borrower may redeem such Senior Subordinated Exchange Notes at a   make-whole price based on U.S. Treasury notes with a maturity closest to the   third anniversary of the Closing Date plus 50 basis points plus accrued   interest.

 

Prior to a Demand Failure Event, any Senior   Subordinated Exchange Notes held by the Commitment Parties or their   respective affiliates (other than (x) asset management affiliates   purchasing Senior Subordinated Exchange Notes in the ordinary course of their   business as part of a regular distribution of the Senior Subordinated   Exchange Notes (“Asset Management Affiliates”) and (y) Senior   Subordinated Exchange Notes acquired pursuant to bona fide open market   purchases from third 
    

 

 

	
 
    	
 
    	
parties or market making activities), shall be   prepayable and/or subject to redemption in whole or in part at par plus   accrued interest on a non-ratable basis so long as such Senior Subordinated   Exchange Notes are held by them.
    
	
 
    	
 
    	
 
    
	
Offer to Repurchase Upon a Change of Control:
    	
 
    	
The Issuer will be required to make an offer to   repurchase the Senior Subordinated Exchange Notes following the occurrence of   a “change of control” at a price in cash equal to 101% of the outstanding   principal amount thereof, plus accrued and unpaid interest to the date of   repurchase; provided that Senior Subordinated Exchange Notes held by   the Commitment Parties or their respective affiliates (other than Asset   Management Affiliates or Senior Subordinated Exchange Notes acquired pursuant   to bona fide open market purchases from third parties or market making   activities) shall be subject to prepayment at par, plus accrued and unpaid   interest to the date of repurchase.
    
	
 
    	
 
    	
 
    
	
Defeasance and Discharge Provisions:
    	
 
    	
Consistent with the Existing Subordinated Notes.
    
	
 
    	
 
    	
 
    
	
Modification:
    	
 
    	
Consistent with the Existing Subordinated Notes.
    
	
 
    	
 
    	
 
    
	
Registration Rights:
    	
 
    	
Within 270 days after the issue date of the Senior   Subordinated Exchange Notes, the Borrower shall file a shelf registration   statement with the Securities and Exchange Commission and/or effect an   exchange offer whereby the Borrower has offered registered notes having terms   identical to the Senior Subordinated Exchange Notes (“Substitute Notes”)   in exchange for all outstanding Senior Subordinated Exchange Notes (it being   understood that a shelf registration statement is required to be made   available in respect of Senior Subordinated Exchange Notes the holders of   which could not receive Substitute Notes through the exchange offer that, in   the opinion of counsel, would be freely saleable by such holders without   registration or requirement for delivery of a current prospectus under the   Securities Act of 1933, as amended). If a shelf registration statement is   filed or required to be filed, the Borrower shall use its reasonable best   efforts to cause such shelf registration statement to be declared effective   within 90 days of such filing and keep such shelf registration statement   effective, with respect to resales of the Senior Subordinated Exchange Notes,   until the earlier of the date all Senior Subordinated Exchange Notes   registered thereby have been resold and the date that is two years from the   Conversion Date. Upon failure to comply with the requirements of the   registration rights agreement (a “Registration Default”), the Borrower   shall pay liquidated damages to each holder of Senior Subordinated Exchange   Notes with respect to 
    

 

C-II-2

 

	
 
    	
 
    	
the first 90-day period immediately following the   occurrence of the first Registration Default in an amount equal to   one-quarter of one percent (0.25%) per annum on the principal amount of   Senior Subordinated Exchange Notes held by such holder. The amount of the   liquidated damages will increase by an additional one-quarter of one percent   (0.25%) per annum on the principal amount of Senior Subordinated Exchange   Notes with respect to each subsequent 90-day period until all Registration   Defaults have been cured, up to a maximum amount of liquidated damages for   all Registration Defaults of 1.00% per annum.
    
	
 
    	
 
    	
 
    
	
Right to Transfer Exchange Notes:
    	
 
    	
The holders of the Senior Subordinated Exchange   Notes shall have the absolute and unconditional right to transfer such Senior   Subordinated Exchange Notes in compliance with applicable law to any third   parties.
    
	
 
    	
 
    	
 
    
	
Covenants:
    	
 
    	
The indenture governing the Senior Subordinated   Exchange Notes will include provisions consistent with the Existing   Subordinated Notes giving effect to the Bridge Documentation Principles.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Consistent with the Existing Subordinated Notes.
    

 

C-II-3

 

EXHIBIT D

 

Project Thor

Summary of Conditions Precedent

 

Capitalized terms used in this Exhibit D but not defined herein shall have the meanings set forth in the Commitment Letter to which this Exhibit D is attached and in the other Exhibits to the Commitment Letter.

 

The borrowings under the Facilities shall be subject to the following conditions precedent:

 

1.                                      As a condition to the closing of the Facilities, subject to the Funds Certain Provisions and the Documentation Principles (in the case of the Incremental Credit Documentation) and the Bridge Documentation Principles (in the case of the Senior Subordinated Bridge Documentation), (x) the execution and delivery by the Borrower and the Guarantors (as such terms are defined in Exhibit B) of the Incremental Credit Documentation and the Senior Subordinated Bridge Documentation, which shall be in accordance with the terms of the Commitment Letter and Exhibit B (as modified to reflect any exercise of any “flex” provisions of the Fee Letter) and Exhibit C, as applicable, and (y) delivery to the Administrative Agent and the Bridge Administrative Agent, as applicable, of (i) a customary borrowing notice, customary legal opinions, customary officer’s closing certificates, organizational documents, customary evidence of authorization and good standing certificates in jurisdictions of formation/organization, in each case with respect to the Borrower and the Guarantors (as such terms are defined in Exhibit B), to the extent applicable, and (ii) a solvency certificate, dated as of the Closing Date and after giving effect to the Transactions, substantially in the form attached as Exhibit E, from a senior financial officer of the Borrower. In respect of the Incremental Term Loan B Facility, and subject to the Funds Certain Provisions, all documents and instruments required to create and perfect the Administrative Agent’s security interest in the Collateral shall have been executed and delivered by the Borrower and the Guarantors (as such terms are defined in Exhibit B) and, if applicable, be in proper form for filing.

 

2.                                      Substantially concurrently with the initial funding under the Facilities, the Acquisition shall be consummated in accordance with the terms and conditions of the Sale and Purchase Agreement between the Institutional Sellers, the Management Sellers named therein, Acquisition Sub and the Borrower dated as of January 20, 2017 (together with all exhibits, annexes and schedules thereto and after giving effect to any alteration, amendment, modification, supplement or waiver, the “Acquisition Agreement”, and together with the Warranty Deed among Acquisition Sub and the Management Warrantors named therein dated as of January 20, 2017 (the “Management Warranty Deed”) and the Disclosure Letter in connection with the Management Warranty Deed addressed by the Management Warrantors to Acquisition Sub dated as of January 20, 2017 (the “Disclosure Letter”) in each case, together with all exhibits, annexes and schedules thereto and after giving effect to any alteration, amendment, modification, supplement or waiver, the “Acquisition Documents”) without giving effect to any alteration, amendment, modification, supplement or express waiver or consent granted by the Borrower (or its affiliate, if applicable), if such alteration, amendment, modification, supplement or express waiver or consent granted by the Borrower (or its affiliate, if applicable) is adverse to the

 

 

interests of the Lenders or the Lead Arrangers (in their capacities as such) in any material respect, without the prior written consent of the Lead Arrangers and the Agents (such consent not to be unreasonably withheld, delayed or conditioned) (it being understood and agreed that (a) any alteration, amendment, modification, supplement or express waiver or consent granted by the Borrower (or its affiliate, if applicable) under the Acquisition Documents that results in a reduction in the amount described in Section 3 of the Acquisition Agreement (the “Purchase Price”) shall not be deemed to be materially adverse to the interests of the Lenders or the Lead Arrangers; provided that any such reduction in the Purchase Price shall be applied to reduce the Incremental Term Loan B Facility and/or the Senior Subordinated Bridge Facility at the Borrower’s option, and (b) any alteration, amendment, modification, supplement or express waiver or consent granted by the Borrower (or its affiliate, if applicable) under the Acquisition Agreement that results in an increase in the Purchase Price shall be deemed not to be materially adverse to the interests of the Lenders or the Lead Arrangers as long as any such increase is funded solely by the issuance by the Borrower of common equity.

 

3.                                      Substantially concurrently with the closing of the Acquisition, the Refinancing shall have been consummated, and all commitments, security interests and guarantees in connection therewith shall have been terminated and released (or have been authorized to be released pursuant to customary payoff letters or other customary documentation).

 

4.                                      The Lead Arrangers shall have received (a) audited consolidated balance sheets of each of the Borrower and its consolidated subsidiaries as at the end of, and related statements of income and cash flows of each of the Borrower and its consolidated subsidiaries for the fiscal years ended December 31, 2015, December 31, 2014 and December 31, 2013, and for each fiscal year ended at least 90 days prior to the Closing Date and (b) unaudited consolidated balance sheets of each of the Borrower and its consolidated subsidiaries as at the end of, and related statements of income and cash flows of each of the Borrower and its consolidated subsidiaries for each fiscal quarter ended after December 31, 2015 and ended at least 45 days prior to the Closing Date (other than the fourth fiscal quarter of any fiscal year); provided that the filing of the required financial statements on Form 10-K and Form 10-Q by the Borrower shall be deemed to satisfy the foregoing requirements.  The Lead Arrangers hereby acknowledge receipt of the audited financial statements for (i) the fiscal years ended December 31, 2015, December 31, 2014 and December 31, 2013 referred to in clause (a) above for the Borrower and (ii) the fiscal quarters ended March 31, 2016, June 30, 2016 and September 30, 2016 for the Borrower.

 

5.                                      The Lead Arrangers shall have received (a) a pro forma consolidated balance sheet and related pro forma consolidated statement of income of the Borrower as of, and for the twelve-month period ended at least 45 days prior to the Closing Date (or 90 days prior to the Closing Date in the case of the twelve months ended December 31, 2016) and (b) without duplication with the foregoing clause (a), a pro forma consolidated balance sheet and related pro forma consolidated statement of income of the Borrower as of, and for the twelve-month period ending on, the last day of the most recently completed four-fiscal quarter period for which financial statements required to be delivered pursuant to paragraph 4 above have been delivered, prepared after giving effect to the acquisition of Odeon and UCI Cinemas Holdings Limited and Carmike Cinemas, Inc. as if the acquisition of Odeon and UCI Cinemas Holdings Limited and Carmike Cinemas, Inc. had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income), which need not be prepared

 

D-2

 

in compliance with Regulation S-X of the Securities Act of 1933, as amended, or include adjustments for purchase accounting (including adjustments of the type contemplated by Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations (formerly SFAS 141R)).

 

6.                                      To the extent invoiced (in the case of costs and expenses) at least two business days prior to the Closing Date, all costs, fees, expenses (including, without limitation, legal fees and expenses) and other compensation contemplated by the Commitment Letter and the Fee Letter, payable to each Agent (and counsel thereto) and the Lenders shall have been paid to the extent due.

 

7.                                      The Agents shall have received, at least three business days prior to the Closing Date, all documentation and other information about any Guarantors which are not Guarantors as of the date hereof that the Agents reasonably determine is required by United States regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act, to the extent requested in writing by an Agent at least ten business days prior to the Closing Date.

 

8.                                      The Specified Representations shall be true and correct in all material respects (or, if qualified by materiality, in all respects).

 

D-3

 

EXHIBIT E

 

AMC ENTERTAINMENT HOLDINGS, INC.

 

SOLVENCY CERTIFICATE

 

[DATE]

 

This Solvency Certificate (this “Certificate”) is furnished to the Administrative Agent and the Lenders pursuant to Section [  ] of the Credit Agreement, dated as of [     ], among [          ] (the “Credit Agreement”). Unless otherwise defined herein, capitalized terms used in this Certificate shall have the meanings set forth in the Credit Agreement.

 

I, the [     ] of the Borrower (after giving effect to the Transactions), in that capacity only and not in my individual capacity (and without personal liability), DO HEREBY CERTIFY on behalf of the Borrower that, as of the date hereof, after giving effect to the consummation of the Transactions (including the execution and delivery of the Acquisition Documents and the Credit Agreement, the making of the Loans and the use of proceeds of such Loans on the date hereof):

 

1.                                      The fair value of the assets of the Borrower and its Subsidiaries on a consolidated basis will exceed their consolidated debts and liabilities, contingent or otherwise.

 

2.                                      The present fair saleable value of the property of the Borrower and its Subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability on their debts and other liabilities, contingent or otherwise, as such debts and other liabilities become absolute and matured.

 

3.                                      The Borrower and its Subsidiaries on a consolidated basis will not have unreasonably small capital with which to conduct the business in which they are engaged as such business is now conducted and is proposed to be conducted following the Closing Date.

 

4.                                      The Borrower and its Subsidiaries on a consolidated basis will not have incurred and do not intend to incur, or believe that they will incur, any debts and liabilities, contingent or otherwise, including current obligations, that they do not believe that they will be able to pay (based on their assets and cash flow) as such debts and liabilities become due (whether at maturity or otherwise).

 

5.                                      In reaching the conclusions set forth in this Certificate, the undersigned has (i) reviewed the Credit Agreement, (ii) reviewed the financial statements (including the pro forma financial statements) referred to in Section [  ] of the Credit Agreement (the “Financial Statements”) and (iii) made such other investigations and inquiries as the undersigned has deemed appropriate. The undersigned is familiar with the financial performance and business of the Borrower and its Subsidiaries.

 

 

IN WITNESS WHEREOF, I have executed this Certificate this as of the date first written above.

 

	
 
    	
AMC Entertainment Holdings, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

D-2EX-4.1

 Exhibit 4.1 
  

 
 DISCOVER CARD EXECUTION NOTE TRUST

 Issuer 
 and 

U.S. BANK NATIONAL ASSOCIATION 

Indenture Trustee 
 CLASS A(2017-1) TERMS DOCUMENT 
 Dated as of January 20, 2017 

to 
 SECOND AMENDED AND RESTATED
INDENTURE SUPPLEMENT 
 Dated as of December 22, 2015 

for the DiscoverSeries Notes 
 to

 AMENDED AND RESTATED INDENTURE 

Dated as of December 22, 2015 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	
	ARTICLE I	  
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  
			
	 Section 1.01
	  	 Definitions
	  	 	1	  
	 Section 1.02
	  	 Representations and Warranties of Issuer
	  	 	7	  
	 Section 1.03
	  	 Representations and Warranties of Indenture Trustee
	  	 	8	  
	 Section 1.04
	  	 Limitations on Liability
	  	 	8	  
	 Section 1.05
	  	 Governing Law
	  	 	9	  
	 Section 1.06
	  	 Counterparts
	  	 	9	  
	 Section 1.07
	  	 Ratification of Indenture and Indenture Supplement
	  	 	9	  
	
	ARTICLE II	  
	THE CLASS A(2017-1) NOTES	  
			
	 Section 2.01
	  	 Creation and Designation
	  	 	9	  
	 Section 2.02
	  	 Adjustments to Required Subordinated Percentages and Amount
	  	 	9	  
	 Section 2.03
	  	 Interest Payment
	  	 	9	  
	 Section 2.04
	  	 Notification of LIBOR
	  	 	10	  
	 Section 2.05
	  	 Payments of Interest and Principal
	  	 	10	  
	 Section 2.06
	  	 Form of Delivery of Class A(2017-1) Notes;
Depository; Denominations
	  	 	10	  
	 Section 2.07
	  	 Delivery and Payment for the Class A(2017-1)
Notes
	  	 	11	  
	 Section 2.08
	  	 Targeted Deposits to the Accumulation Reserve Account
	  	 	11	  
	 Section 2.09
	  	 Additional Issuances of Notes
	  	 	11	  
	 Section 2.10
	  	 Designation of Additional Amounts to Be Included in the Excess Spread Amount for the
DiscoverSeries Notes
	  	 	12	  
	 Section 2.11
	  	 Variable Accumulation Period
	  	 	12	  
	 Section 2.12
	  	 Seller’s Interest to Be Included in the Monthly Statement
	  	 	13	  
	 Section 2.13
	  	 Duties of the Indenture Trustee
	  	 	13	  
			
	 EXHIBIT A
	  	 FORM OF CLASS A(2017-1) NOTE
	  			

  
 -i- 

 THIS CLASS A(2017-1) TERMS DOCUMENT (this “Terms
Document”), by and between DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized
and existing under the laws of the United States of America, as Indenture Trustee (the “Indenture Trustee”), is made and entered into as of January 20, 2017. 

Pursuant to this Terms Document, the Issuer shall create a new Tranche of Class A Notes of the DiscoverSeries and shall specify the
principal terms thereof. 
 ARTICLE I 

Definitions and Other Provisions of General Application 

Section 1.01    Definitions. For all purposes of this Terms Document, except as otherwise expressly provided
or unless the context otherwise requires: 
 (1)    the terms defined in this Article have the meanings assigned to them
in this Article, and include the plural as well as the singular; 
 (2)    all other terms used herein which are defined
in the Indenture Supplement or the Indenture, either directly or by reference therein, have the meanings assigned to them therein; 

(3)    all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are
generally accepted in the United States of America at the date of such computation; 
 (4)    all references in this
Terms Document to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document; the words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision; 

(5)    in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or
provision contained in the Indenture Supplement or the Indenture, the terms and provisions of this Terms Document shall be controlling, but solely with respect to the Class A(2017-1) Notes; 

(6)    each capitalized term defined herein shall relate only to the
Class A(2017-1) Notes and no other Tranche of Notes issued by the Issuer; 

(7)    “including” and words of similar import will be deemed to be followed by “without limitation”;
and 

 (8)    for purposes of determining any amount or making any calculation
hereunder, such amount or calculation, (x) if specified to be as of the first day of any Due Period, shall (a) include any Notes issued during such Due Period as if such Notes had been outstanding on the first day of such Due Period and
(b) give effect to any payments, deposits or other allocations made on the Distribution Date related to the prior Due Period and (y) if specified to be as of the close of business on the last day of any Due Period shall give effect to any
payments, deposits or other allocations made on the related Distribution Date. 
 “Accumulation Amount” means $62,500,000;
provided, however, if the commencement of the Accumulation Period is delayed in accordance with Section 2.11 hereof, the Accumulation Amount shall be determined in accordance with the definition of “Accumulation Amount”
in the Indenture Supplement. 
 “Accumulation Commencement Date” means January 1, 2021, or such later date as the
Calculation Agent on behalf of the Issuer determines in accordance with Section 2.11 hereof. 
 “Accumulation Period”
has the meaning set forth in the Indenture Supplement. 
 “Accumulation Period Length” means 12 months; provided,
however, if the commencement of the Accumulation Period is delayed in accordance with Section 2.11 hereof, the Accumulation Period Length shall be determined in accordance with the definition of “Accumulation Period Length” in
the Indenture Supplement. 
 “Accumulation Reserve Funding Period” shall not apply if the Calculation Agent on behalf of
the Issuer notifies the Indenture Trustee that it expects the Accumulation Period Length to be adjusted to one (1) month, and otherwise shall mean a period commencing on the first Distribution Date on which a condition in the right column of
the following table was in effect on the immediately preceding Distribution Date, if such Distribution Date is a Distribution Date described in the corresponding left column of the following table, and ending on the Distribution Date immediately
preceding the earlier to occur of: 
 (x)    the Expected Maturity Date for the
Class A(2017-1) Notes and 
 (y)    the Principal Payment Date on which the
Outstanding Dollar Principal Amount of the Class A(2017-1) Notes is paid in full. 
  

			
	Distribution Date:	 	Condition:
	(a) The Distribution Date occurring three (3) calendar months prior to the first scheduled Distribution
Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	 	No condition.
	 	 
	(b) The Distribution Date occurring four (4) calendar months prior to the first scheduled Distribution
Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	 	The three-month rolling average Excess Spread Percentage is less than 4%.
	 	 
	(c) The Distribution Date occurring six (6) calendar months prior to the first scheduled Distribution Date
of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	 	The three-month rolling average Excess Spread Percentage is less than 3%.
	 	 
	(d) The Distribution Date occurring twelve (12) calendar months prior to the first scheduled Distribution
Date of the Accumulation Period (as adjusted in accordance with Section 2.11 hereof) and any following Distribution Date	 	The three-month rolling average Excess Spread Percentage is less than 2%.

  
 2 

 provided, however, if at any point the Accumulation Reserve Funding Period has not commenced
because no condition requiring funding has occurred or the Calculation Agent has determined that the Accumulation Period Length will be shortened to one (1) month, and subsequently a condition requiring funding occurs and the Calculation Agent
determines that the Accumulation Period Length will not be so shortened, the Accumulation Reserve Funding Period shall commence on the following Distribution Date. 

“Class A(2017-1) Adverse Event” means the occurrence of any of the
following: (a) an Early Redemption Event with respect to the Class A(2017-1) Notes or (b) an Event of Default and acceleration of the Class A(2017-1)
Notes; provided, however, that if the only such event to have occurred is an Excess Spread Early Redemption Event for which an Excess Spread Early Redemption Cure has occurred, a
Class A(2017-1) Adverse Event shall not be treated as continuing from and after the date of such cure. 

“Class A(2017-1) Note” means any Note, in the form set forth in
Exhibit A hereto, designated therein as a Class A(2017-1) Note and duly executed and authenticated in accordance with the Indenture. 

“Class A(2017-1) Noteholder” means a Person in whose name a Class A(2017-1) Note is registered in the Note Register. 
 “Class A(2017-1) Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar Principal Amount of the
Class A(2017-1) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article VI thereof. 

“Excess Spread Percentage” for any Distribution Date means a fraction, the numerator of which is the Excess Spread Amount for
such Distribution Date multiplied by 12 and the denominator of which is the sum of the Nominal Liquidation Amounts of all Tranches of DiscoverSeries Notes as of the first day of the related Due Period. 

  
 3 

 “Expected Maturity Date” means January 18, 2022. 

“Indenture” means the Amended and Restated Indenture, dated as of December 22, 2015, between the Issuer and Indenture
Trustee, as such agreement may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Indenture Supplement” means the Second Amended and Restated Indenture Supplement, dated as of December 22, 2015, for
the DiscoverSeries Notes, between the Issuer and the Indenture Trustee, as the same may be further amended, supplemented, restated, amended and restated, replaced or otherwise modified from time to time. 

“Initial Dollar Principal Amount” means $750,000,000, or such higher amount as is specified in any Notice of Additional
Issuance under Section 2.09 hereof. 
 “Interest Accrual Period” means, with respect to any Interest Payment Date, the
period from and including the previous Interest Payment Date (or, in the case of the first Interest Payment Date for any Class A(2017-1) Note, from and including the applicable Issuance Date) to but
excluding such Interest Payment Date. 
 “Interest Payment Date” means the fifteenth day of each month commencing in
February 2017, or if such fifteenth day is not a Business Day, the next succeeding Business Day. 
 “Issuance Date” means
January 20, 2017, with respect to all Class A(2017-1) Notes issued on the date hereof and, with respect to any additional Class A(2017-1) Notes issued
pursuant to Section 2.09 hereof, any Issuance Date specified in the Notice of Additional Issuance delivered thereunder. 

“Legal Maturity Date” means July 15, 2024. 

“LIBOR” means, with respect to any LIBOR Determination Date, the rate for deposits in United States dollars with a duration
comparable to the relevant Interest Accrual Period which appears on Reuters Screen LIBOR01 as of 11:00 a.m., London time, on such day. If such rate does not appear on Reuters Screen LIBOR01, the rate will be determined by the Indenture Trustee on
the basis of the rates at which deposits in United States dollars are offered by major banks in the London interbank market, selected by the Indenture Trustee, at approximately 11:00 a.m., London time, on such day to prime banks in the London
interbank market with a duration comparable to the relevant Interest Accrual Period commencing on that day. The Indenture Trustee will request the principal London office of at least four banks to provide a quotation of its rate. If at least two
such quotations are provided, the rate will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that day will be the arithmetic mean of the rates quoted by four major banks in New York City,
selected by the Trustee, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks with a duration comparable to the relevant Interest Accrual Period commencing on that day. If LIBOR
with respect to a LIBOR Determination Date is not determined pursuant to the foregoing, LIBOR with respect to such LIBOR Determination Date will be LIBOR with respect to the immediately prior LIBOR Determination Date. 

  
 4 

 “LIBOR Business Day,” if applicable, shall mean a day other than a Saturday or a
Sunday on which banking institutions in both the City of London, England and in New York, New York are not required or authorized by law to be closed. 

“LIBOR Determination Date” means the second LIBOR Business Day immediately preceding the commencement of an Interest Accrual
Period. 
 “Note Interest Rate” means, for any Interest Accrual Period, LIBOR + 0.49% per annum, calculated on the basis of
the actual number of days elapsed and a 360-day year; provided, that if the sum of LIBOR + 0.49% for such Interest Accrual Period is less than 0.00%, then the Note Interest Rate for such Interest Accrual
Period will be deemed to be 0.00%. 
 “Notice of Additional Issuance” has the meaning set forth in Section 2.09
hereof. 
 “Regulation RR” means Regulation RR (Credit Risk Retention) promulgated by the Securities and Exchange
Commission to implement the credit risk retention requirements of Section 15G of the Securities Exchange Act. 
 “Required Daily
Deposit Target Finance Charge Amount” means, for any day in a Due Period, an amount equal to the Class A Tranche Interest Allocation for the related Distribution Date; provided, however, that for purposes of determining
the Required Daily Deposit Target Finance Charge Amount on any day on which the Class A Tranche Interest Allocation cannot be determined because the LIBOR Determination Date for the applicable Interest Accrual Period has not yet occurred, the
Required Daily Deposit Target Finance Charge Amount shall be the Class A Tranche Interest Allocation determined based on a pro forma calculation made on the assumption that LIBOR will be LIBOR for the applicable period determined on the first
day of such calendar month, multiplied by 1.25. 
 “Required Daily Deposit Target Principal Amount” means, for any
day in a Due Period, (i) if such Due Period is in the Accumulation Period for the Class A(2017-1) Notes, the Accumulation Amount, (ii) if such day is on or after the occurrence and during the
continuance of a Class A(2017-1) Adverse Event, the Nominal Liquidation Amount of the Class A(2017-1) Notes and (iii) in all other circumstances, zero.

 “Required Subordinated Amount of Class B Notes” means, for the
Class A(2017-1) Notes for any date of determination, an amount equal to the product of 

(a)    the Required Subordinated Percentage of Class B Notes for such
Class A(2017-1) Notes on such date of determination; and 
 (b)    the
Nominal Liquidation Amount of such Class A(2017-1) Notes on such date of determination; 
 provided,
however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2017-1) Adverse Event, the Required Subordinated Amount of Class B Notes for the
Class A(2017-1) Notes will be the greater of 
 (x)    the amount
determined above for such date of determination; and 

  
 5 

 (y)    the amount determined above for the date immediately prior to the date
on which such Class A(2017-1) Adverse Event shall have occurred. 
 “Required
Subordinated Amount of Class C Notes” means, for the Class A(2017-1) Notes for any date of determination, an amount equal to the product of 

(a)    the Required Subordinated Percentage of Class C Notes for such
Class A(2017-1) Notes on such date of determination; and 
 (b)    the
Nominal Liquidation Amount of such Class A(2017-1) Notes on such date of determination; 
 provided,
however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2017-1) Adverse Event, the Required Subordinated Amount of Class C Notes for the
Class A(2017-1) Notes will be the greater of 
 (x)    the amount
determined above for such date of determination; and 
 (y)    the amount determined above for the date immediately
prior to the date on which such Class A(2017-1) Adverse Event shall have occurred. 

“Required Subordinated Amount of Class D Notes” means, for the
Class A(2017-1) Notes for any date of determination, an amount equal to the product of 

(a)    the Required Subordinated Percentage of Class D Notes for such
Class A(2017-1) Notes on such date of determination; and 
 (b)    the
Nominal Liquidation Amount of such Class A(2017-1) Notes on such date of determination; 
 provided,
however, that for any date of determination on or after the occurrence and during the continuation of a Class A(2017-1) Adverse Event, the Required Subordinated Amount of Class D Notes for
the Class A(2017-1) Notes will be the greater of 
 (x)    the amount
determined above for such date of determination; and 
 (y)    the amount determined above for the date immediately
prior to the date on which the Class A(2017-1) Adverse Event shall have occurred. 

“Required Subordinated Percentage of Class B Notes” means, for the
Class A(2017-1) Notes, 6.96202532%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class C Notes” means, for the
Class A(2017-1) Notes, 8.86075950%, subject to adjustment in accordance with Section 2.02. 

“Required Subordinated Percentage of Class D Notes” means, for the
Class A(2017-1) Notes, 10.75949368%, subject to adjustment in accordance with Section 2.02. 

  
 6 

 “Reuters Screen LIBOR01” means the display page currently so designated on the
Reuters Screen (or such other page as may replace that page on that service for the purpose of displaying comparable rates or prices). 

“Seller’s Interest” means, at any time, a “seller’s interest” as defined in, and calculated in accordance
with, Regulation RR. 
 “Seller’s Interest Measurement Date” means the last day of each calendar month. 

“Specified Rating” means, for the Class A(2017-1) Notes, Aaa(sf) with respect to
Moody’s, AAA(sf) with respect to Standard & Poor’s and AAAsf with respect to Fitch. 
 “Stated Principal
Amount” means $750,000,000 or such higher amount as is specified in any Notice of Additional Issuance under Section 2.09. 

“Targeted Accumulation Reserve Subaccount Deposit” means, with respect to any Distribution Date during the Accumulation
Reserve Funding Period, an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class A(2017-1) Notes as of the close of business on the last day of the related Due Period or
(ii) any other amount designated by the Calculation Agent on behalf of the Issuer. 

Section 1.02    Representations and Warranties of Issuer. The Issuer represents and warrants that: 

(a)    the Issuer has been duly formed and is validly existing as a statutory trust in good standing under the laws of the
State of Delaware, and has full power and authority to execute and deliver this Terms Document and to perform the terms and provisions hereof; 

(b)    the execution, delivery and performance of this Terms Document by the Issuer have been duly authorized by all
necessary limited liability company and statutory trust proceedings of the Beneficiary and the Owner Trustee, do not require any approval or consent of any governmental agency or authority and do not and will not conflict with any material provision
of the Certificate of Trust or the Trust Agreement of the Issuer; 
 (c)    this Terms Document is the valid, binding
and enforceable obligation of the Issuer, except as the same may be limited by receivership, insolvency, reorganization, moratorium or other laws relating to the enforcement of creditors’ rights generally or by general equity principles; 

(d)    to the best of the Issuer’s knowledge, this Terms Document will not conflict with any law or governmental
regulation or court decree applicable to it; 
 (e)    the Issuer is not required to be registered under the Investment
Company Act; 
 (f)    all information heretofore furnished by the Issuer in writing to the Indenture Trustee for
purposes of or in connection with this Terms Document or any transaction contemplated hereby is, and all such information hereafter furnished by the Issuer in writing to the Indenture Trustee will be, true and accurate in every material respect or
based on reasonable estimates on the date as of which such information is stated or certified; and 

  
 7 

 (g)    to the best knowledge of the Issuer, there are no proceedings or
investigations pending against the Issuer before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Issuer (i) asserting the invalidity of this Terms Document,
(ii) seeking to prevent the consummation of any of the transactions contemplated by this Terms Document or (iii) seeking any determination or ruling which in the Issuer’s judgment would materially and adversely affect the performance
by the Issuer of its obligations under this Terms Document or the validity or enforceability of this Terms Document. 

Section 1.03    Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and
warrants and any successor trustee shall represent and warrant that: 
 (a)    the Indenture Trustee is organized,
existing and in good standing under the laws of the United States of America; 
 (b)    the Indenture Trustee has full
power, authority and right to execute, deliver and perform this Terms Document, and has taken all necessary action to authorize the execution, delivery and performance by it of this Terms Document; and 

(c)    this Terms Document has been duly executed and delivered by the Indenture Trustee. 

Section 1.04    Limitations on Liability. 

(a)    It is expressly understood and agreed by the parties hereto that (i) this Terms Document is executed and
delivered by the Owner Trustee not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as a personal representation, undertaking or agreement by the Owner Trustee but is made and intended for the purpose of binding only the Issuer, (iii) nothing herein
contained will be construed as creating any liability on the Owner Trustee individually or personally, to perform any covenant of the Issuer either expressed or implied herein, all such liability, if any, being expressly waived by the parties to
this Terms Document and by any Person claiming by, through or under them and (iv) under no circumstances will the Owner Trustee be personally liable for the payment of any indebtedness or expenses of the Issuer or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Terms Document or any related documents. 

(b)    None of the Indenture Trustee, the Owner Trustee, the Calculation Agent, the Beneficiary, the Depositor, any Master
Servicer or any Servicer or any of their respective officers, directors, employees, incorporators or agents will have any liability with respect to this Terms Document, and recourse may be had solely to the Collateral pledged to secure these Class A(2017-1) Notes under the Indenture, the Indenture Supplement and this Terms Document. 

  
 8 

 Section 1.05    Governing Law. THIS TERMS DOCUMENT WILL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN
THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 
 Section 1.06    Counterparts. This Terms Document may be
executed in any number of counterparts, each of which when so executed will be deemed to be an original, but all such counterparts will together constitute but one and the same instrument. 

Section 1.07    Ratification of Indenture and Indenture Supplement. As supplemented by this Terms Document,
each of the Indenture and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as supplemented by the Indenture Supplement and this Terms Document shall be read, taken and construed as one and the same instrument.

 ARTICLE II 
 The Class A(2017-1) Notes 
 Section 2.01    Creation and Designation.
There is hereby created a Tranche of Class A Notes to be issued pursuant to this Terms Document, the Indenture and the Indenture Supplement to be known as the “DiscoverSeries Class A(2017-1)
Notes.” 
 Section 2.02    Adjustments to Required Subordinated Percentages and Amount. 

(a)    On any date, the Issuer may, at the direction of the Beneficiary, change the Required Subordinated Percentage of
Class B Notes, the Required Subordinated Percentage of Class C Notes or the Required Subordinated Percentage of Class D Notes, in each case for the Class A(2017-1) Notes, without the
consent of any Noteholders; provided that the Issuer has received written confirmation from each applicable Note Rating Agency that the change in such percentage will not result in a Ratings Effect for any Tranche of Outstanding
DiscoverSeries Notes. 
 (b)    On any date, the Issuer may, at the direction of the Beneficiary, replace all or a
portion of the Required Subordinated Amount of Class B Notes, the Required Subordinated Amount of Class C Notes or the Required Subordinated Amount of Class D Notes, in each case for the
Class A(2017-1) Notes with a different form of credit enhancement (including, without limitation, a cash collateral account, a letter of credit, a reserve account, a surety bond, an insurance policy or a
collateral interest, or any combination thereof) and may add such definitions and other terms and make such additional amendments to this Terms Document as shall be necessary for such replacement without the consent of any Noteholders, provided
that the Issuer has received written confirmation from each applicable Note Rating Agency that such replacement and such other amendments will not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. 

Section 2.03    Interest Payment. For each Interest Payment Date the amount of interest due with respect to
the Class A(2017-1) Notes shall be an amount equal to 

  
 9 

	 	(i)	(A)   a fraction, the numerator of which is the actual number of days in the related Interest Accrual Period and the denominator of which is 360, times 

 

	 	    	(B)   the Note Interest Rate in effect with respect to such related Interest Accrual Period, times 

  

	 	(ii)	the Outstanding Dollar Principal Amount of the Class A(2017-1) Notes determined as of the first date of such related Interest Accrual Period, 

plus any Class A Tranche Interest Allocation Shortfall for such Class A(2017-1) Notes for the
immediately preceding Distribution Date, together with interest thereon at the Note Interest Rate in effect with respect to such related Interest Accrual Period, calculated on the basis of the actual number of days in the related Interest Accrual
Period and a 360-day year. 
 Section 2.04    Notification of LIBOR.
On each LIBOR Determination Date, the Indenture Trustee shall send to the Issuer, the Beneficiary, each applicable Master Servicer and any stock exchange on which the Class A(2017-1) Notes are then listed
(if the rules of such exchange so require), by facsimile transmission or electronic transmission, notification of LIBOR for the following Interest Accrual Period. 

Section 2.05    Payments of Interest and Principal. 

(a)    The Issuer will cause interest to be paid on each Interest Payment Date and principal to be paid on the Expected
Maturity Date; provided, however, that it shall not be an Event of Default if principal is not paid in full on such Expected Maturity Date unless funds for such payment have been allocated in accordance with Section 3.01 of the
Indenture Supplement; and provided, further, that if a Class A(2017-1) Adverse Event has occurred and is continuing, principal will instead be payable in monthly installments on each
Principal Payment Date for the Class A(2017-1) Notes in accordance with Sections 3.01 and 3.05 of the Indenture Supplement. All payments of interest and principal on the
Class A(2017-1) Notes shall be made as set forth in Section 1102 of the Indenture. 

(b)    The right of the Class A(2017-1) Noteholders to receive payments from
the Issuer will terminate on the Class A(2017-1) Termination Date. 

(c)    All payments of principal, interest or other amounts to the
Class A(2017-1) Noteholders will be made pro rata based on the Stated Principal Amount of their Class A(2017-1) Notes. 

Section 2.06    Form of Delivery of Class A(2017-1)
Notes; Depository; Denominations. 
 (a)    The Class A(2017-1) Notes
shall be delivered in the form of a Global Note which shall be a Registered Note as provided in Section 204 of the Indenture. The form of the Class A(2017-1) Notes is attached hereto as Exhibit A.

  
 10 

 (b)    The Depository for the
Class A(2017-1) Notes shall be The Depository Trust Company, and the Class A(2017-1) Notes shall initially be registered in the name of Cede & Co.,
its nominee. 
 (c)    The Class A(2017-1) Notes will be issued in minimum
denominations of $100,000 and integral multiples of $1,000 in excess of that amount. 
 Section 2.07    Delivery
and Payment for the Class A(2017-1) Notes. The Issuer shall execute and deliver the Class A(2017-1) Notes to the Indenture Trustee for
authentication, and the Indenture Trustee shall deliver the Class A(2017-1) Notes when authenticated, each in accordance with Sections 203 and 303 of the Indenture. 

Section 2.08    Targeted Deposits to the Accumulation Reserve Account. The deposit targeted to be made to the
Accumulation Reserve Subaccount for the Class A(2017-1) Notes for any Due Period during the Accumulation Reserve Funding Period will be an amount equal to the Targeted Accumulation Reserve Subaccount
Deposit minus any amount on deposit in the Accumulation Reserve Subaccount for the Class A(2017-1) Notes. 

Section 2.09    Additional Issuances of Notes. Subject to clauses (ii), (iii), (iv) and (v) of
Section 2.02 and Section 2.03 of the Indenture Supplement, the Issuer may issue additional Class A(2017-1) Notes, so long as the following conditions precedent are satisfied: 

(a)    the Issuer shall have given the Indenture Trustee written notice of such issuance of additional Class A(2017-1) Notes (the “Notice of Additional Issuance”) at least one (1) Business Day in advance of the Issuance Date thereof, which notice shall include: 

 

	 	(i)	the Issuance Date of such additional Class A(2017-1) Notes; 

  

	 	(ii)	the amount of such additional Class A(2017-1) Notes being offered and the resulting Initial Dollar Principal Amount and Stated Principal Amount of Class A(2017-1) Notes; 

  

	 	(iii)	the date from which interest on such additional Class A(2017-1) Notes will accrue (which may be a date prior to the date of issuance thereof); 

 

	 	(iv)	the first Interest Payment Date on which interest will be paid on such additional Class A(2017-1) Notes; and 

 

	 	(v)	any other terms that the Issuer set forth in such notice of issuance of additional Class A(2017-1) Notes to clarify the rights of Holders of such additional Class A(2017-1) Notes or the effect of such issuance of additional Class A(2017-1) Notes on any calculations to be made with respect to the Class A(2017-1) Notes, the Class A Notes or the Issuer. 

 All such terms shall be incorporated
into and form a part of this Terms Document on and after the effective date of such Class A(2017-1) Notes; 

(b)    no Class A(2017-1) Adverse Event has occurred and is continuing; and

  
 11 

 (c)    either (i) the issuance of such additional Class A(2017-1) Notes would be treated as part of the same issue as the outstanding Class A(2017-1) Notes under Treasury Regulation Sections 1.1275-1(f)(1) or 1.1275-2(k) or (ii) such additional Class A(2017-1) Notes are not issued with “original issue
discount” for purposes of Section 1273 of the Code. 
 The Issuer shall not have to satisfy the conditions set forth in
Section 310 of the Indenture in connection with an issuance of additional Class A(2017-1) Notes so long as such conditions were satisfied or waived in connection with the initial issuance of Class A(2017-1) Notes; provided, however, that the Issuer shall have to deliver to the Indenture Trustee a Master Trust Tax Opinion and an Issuer Tax Opinion with respect to such issuance. 

Section 2.10    Designation of Additional Amounts to Be Included in the Excess Spread Amount for the
DiscoverSeries Notes. At any time that any outstanding Series of certificates issued by the Master Trust provides that the Series Principal Collections allocated to such Series will be deposited into the Group Finance Charge Collections
Reallocation Account for the Master Trust to the extent necessary for application to cover shortfalls for other Series issued by the Master Trust, an amount equal to (x) all Series Principal Collections allocated to such Series, multiplied
by (y) a fraction, the numerator of which is the sum of the Nominal Liquidation Amounts for each outstanding Tranche of the DiscoverSeries Notes (including the Class A(2017-1) Notes) and the
denominator of which is (i) the Aggregate Investor Interest for the Master Trust minus (ii) the sum of the Series Investor Interests for all such Series that provide that the Series Principal Collections allocated to such Series
will be so deposited, is hereby designated to be included in the Excess Spread Amount and shall be treated as Series Finance Charge Amounts for the DiscoverSeries. 

Section 2.11    Variable Accumulation Period. Notwithstanding anything to the contrary in Section 4.02 of
the Indenture Supplement, the Calculation Agent on behalf of the Issuer shall, by written notice to the Indenture Trustee, delay the commencement of the Accumulation Period for the Class A(2017-1) Notes
and determine a new Accumulation Commencement Date, subject to the conditions set forth in this Section 2.11; provided, however, that the Accumulation Period shall commence no later than the first day of the Due Period related to
the Expected Maturity Date for the Class A(2017-1) Notes. Any such delay by the Calculation Agent on behalf of the Issuer shall be made no later than the first day of the scheduled Due Period immediately
preceding the first Due Period in the Accumulation Period (after giving effect to any prior delay in the commencement of the Accumulation Period pursuant to this Section 2.11). 

The Calculation Agent on behalf of the Issuer shall cause such delay if the Calculation Agent determines in good faith that each of the
following conditions will be satisfied: (i) the Calculation Agent on behalf of the Issuer delivers to the Indenture Trustee a certificate to the effect that the Calculation Agent on behalf of the Issuer reasonably believes that, based on the
payment rate and the anticipated availability of Series Principal Amounts and Reallocated Principal Amounts, the delay in the commencement of the Accumulation Period for the Class A(2017-1) Notes will not
result in any Tranche of Notes not being paid in full on the relevant Expected Maturity Date (as defined in the applicable Terms Document); (ii) such delay is permitted under the Series 2007-CC Supplement or
any other applicable agreement relating to any Additional Collateral Certificate; and (iii) the Accumulation Amount, the Accumulation Commencement Date and the Accumulation Period Length shall have been adjusted. The

  
 12 

 
Calculation Agent on behalf of the Issuer shall not be required to obtain confirmation from the applicable Note Rating Agencies that such delay in the commencement of the Accumulation Period will
not result in a Ratings Effect for any Tranche of Outstanding DiscoverSeries Notes. The Calculation Agent on behalf of the Issuer shall provide written notice to each applicable Note Rating Agency in the event that the commencement of the
Accumulation Period for the Class A(2017-1) Notes is delayed pursuant to this Section 2.11. 

Section 2.12    Seller’s Interest to Be Included in the Monthly Statement. The Issuer shall
cause the Master Servicer to include the amount of the Seller’s Interest as of the Seller’s Interest Measurement Date on each investor certificateholder’s monthly statement delivered pursuant to the Series 2007-CC Supplement. 
 Section 2.13    Duties of the Indenture Trustee.
For the avoidance of doubt, the Indenture Trustee undertakes to perform only such duties as are specifically set forth in the Indenture, the Indenture Supplement, the Pooling and Servicing Agreement, any Series Supplement and this
Agreement and as such shall have no obligation or responsibility to monitor or enforce compliance with Regulation RR, nor shall be liable to any Person for any violation of Regulation RR; provided that nothing in this Section 2.13 shall alter
the Indenture Trustee’s duties, obligations or standard of care as set forth in the Indenture or any Indenture Supplement. 

[Remainder of page intentionally blank; signature page follows] 

  
 13 

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

			
	 DISCOVER CARD EXECUTION NOTE TRUST,
as Issuer

		
	By:	 	Wilmington Trust Company,
		 	not in its individual capacity but solely as Owner Trustee
		
	By:	 	 /s/ Jennifer A. Luce

	Name:	 	Jennifer A. Luce
	Title:	 	Vice President
	
	 U.S. BANK NATIONAL ASSOCIATION,
as Indenture Trustee

		
	By:	 	 /s/ Julia Linian

	Name:	 	Julia Linian
	Title:	 	Vice President

  
 [Signature Page to Class
A(2017-1) Terms Document] 

 EXHIBIT A 

FORM OF CLASS A(2017-1) NOTE 

 DISCOVERSERIES CLASS A(2017-1) NOTE 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO
THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT AT ANY TIME
INSTITUTE AGAINST THE ISSUER, ANY MASTER TRUST OR ANY SPECIAL PURPOSE ENTITY THAT ACTS AS A DEPOSITOR WITH RESPECT TO ANY MASTER TRUST OR THE ISSUER, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUER, ANY MASTER TRUST OR ANY SPECIAL PURPOSE ENTITY THAT
ACTS AS A DEPOSITOR WITH RESPECT TO ANY MASTER TRUST OR THE ISSUER, ANY RECEIVERSHIP, INSOLVENCY, BANKRUPTCY OR SIMILAR PROCEEDINGS, OR OTHER PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY
OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE, ANY DERIVATIVE AGREEMENT, ANY SUPPLEMENTAL CREDIT ENHANCEMENT AGREEMENT AND ANY SUPPLEMENTAL LIQUIDITY AGREEMENT. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

			
	REGISTERED	  	$[●]*
	No. [●]	  	CUSIP NO. 254683 BW4

 DISCOVER CARD EXECUTION NOTE TRUST 

ONE-MONTH LIBOR + 0.49% 

DISCOVERSERIES CLASS A(2017-1) NOTE 

DISCOVER CARD EXECUTION NOTE TRUST, a statutory trust created under the laws of the State of Delaware (herein referred to as the
“Issuer” or the “Note Issuance Trust”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of $[●] ([●]
dollars) payable on the January 2022 Payment Date (the “Expected Maturity Date”), except as otherwise provided below or in the Indenture or the Indenture Supplement (as defined on the reverse hereof); provided,
however, that the entire unpaid principal amount of this Note shall be due and payable on the July 2024 Payment Date (the “Legal Maturity Date”). Interest will accrue on this Note at the rate of
one-month LIBOR + 0.49% per annum; provided, that if the sum of LIBOR + 0.49% is less than 0.00%, then interest on this Note will be deemed to accrue at a rate of 0.00%, as more specifically set forth in the Class A(2017-1) Terms Document dated as of January 20, 2017 (the “Terms Document”), between the Issuer and U.S. Bank National Association, as Indenture Trustee (the “Indenture
Trustee”, which term includes any successor Indenture Trustee under the Indenture), and shall be due and payable on each Interest Payment Date for the period from and including the previous Interest Payment Date (or, in the case of the
first Interest Payment Date for any Class A(2017-1) Notes, from and including the applicable Issuance Date) to but excluding such Interest Payment Date. Interest will be computed on the actual number of
days elapsed and a 360-day year. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 

The principal and interest may be payable monthly, and may be payable earlier or later than the Expected Maturity Date, following an Event of
Default or while an Early Redemption Event has occurred and is continuing. No principal or interest will be distributed on the Note following the distribution of proceeds of a Receivables Sale. 

The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. 
 The Initial Dollar Principal Amount of the
Class A(2017-1) Notes is $750,000,000. 
 Reference is made to the further provisions of this
Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the
certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture, Indenture Supplement or the Terms Document referred to
on the reverse hereof, or be valid or obligatory for any purpose. 
  

 

	* 	Denominations of $100,000 and in integral multiples of $1,000 in excess thereof. 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile,
by its Authorized Officer. 
  

			
	 DISCOVER CARD EXECUTION NOTE TRUST, as Issuer

		
	By:	 	WILMINGTON TRUST COMPANY, not in its individual capacity, but solely as Owner Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:             , 20    

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes designated above and referred to in the within-mentioned Indenture. 

 

			
	 US BANK NATIONAL ASSOCIATION, not in its individual capacity, but solely as Indenture
Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:             , 20    

 REVERSE OF NOTE 

This Note is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its
One-Month LIBOR + 0.49% Class A(2017-1) DiscoverSeries Notes (herein called the “Class A(2017-1)
Notes”), all issued under an Amended and Restated Indenture dated as of December 22, 2015 (such Indenture, as may be further amended, restated, amended and restated, supplemented, replaced or otherwise modified from time to time, is
herein called the “Indenture”), as supplemented by a Second Amended and Restated Indenture Supplement for the DiscoverSeries Notes, dated as of December 22, 2015 (such Indenture Supplement, as may be further amended, restated,
amended and restated, supplemented, replaced or otherwise modified from time to time, is herein called the “Indenture Supplement”), between the Issuer and Indenture Trustee, to which Indenture and Indenture Supplement reference is
hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders of the Notes. The Class A(2017-1) Notes are subject to all terms of the
Indenture, the Indenture Supplement and the Terms Document. All terms used in this Class A(2017-1) Note that are defined in the Indenture, the Indenture Supplement and the Terms Document shall have the
meanings assigned to them in or pursuant to the Indenture, the Indenture Supplement and the Terms Document. 
 The Class B Notes, the
Class C Notes and the Class D Notes of the DiscoverSeries and other tranches of Class A Notes of the DiscoverSeries will also be issued under the Indenture and the Indenture Supplement. 

The Class A(2017-1) Notes are and will be equally and ratably secured by the collateral pledged
as security therefor as provided in the Indenture and the Indenture Supplement. 
 Principal of the
Class A(2017-1) Notes will be payable on the Expected Maturity Date in an amount described on the face hereof except as otherwise provided in the Indenture or the Indenture Supplement. 

As described above, the entire unpaid principal amount of this Class A(2017-1) Note shall be due
and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid principal amount of the Class A(2017-1) Notes shall be due and payable on the date on which an Event of Default
relating to the Class A(2017-1) Notes shall have occurred and be continuing and, except in the event of an insolvency related default, the Indenture Trustee or the Majority Holders of the applicable
Series, Class or Tranche of Outstanding Dollar Principal Amount of the Outstanding Notes have declared the Class A(2017-1) Notes to be immediately due and payable in the manner provided in
Section 702 of the Indenture; provided, however, that such acceleration of the entire unpaid principal amount of the Notes may be rescinded by the Majority Holders of such applicable Series, Class or
Tranche of Notes. 
 On any day occurring on or after the date on which the aggregate Nominal Liquidation Amount of any Tranche of Notes is
reduced to less than 5% of its highest Outstanding Dollar Principal Amount, the Depositor or any Affiliate thereof has the right, but not the obligation, to redeem such Tranche of Notes in whole but not in part, pursuant to
Section 1202 of the Indenture. The redemption price will be an amount equal to the Outstanding Dollar Principal Amount of such Tranche, plus accrued, unpaid and additional interest or principal accreted and unpaid on such
Tranche to but excluding the date of redemption. 

 Subject to the terms and conditions of the Indenture, the Beneficiary, on behalf of the Note
Issuance Trust, may from time to time issue, or direct the Owner Trustee, on behalf of the Note Issuance Trust, to issue, one or more Series, Classes or Tranches of Notes. 

On each Payment Date, the Paying Agent shall distribute to each Holder of Class A(2017-1) Notes
of record on the related Record Date (except for the final distribution with respect to this Class A(2017-1) Note) such Holder’s pro rata share of the amounts held by the Paying Agent that are
allocated and available on such Payment Date to pay interest and principal on the Class A Notes. 
 Payments of interest on this Class A(2017-1) Note due and payable on each Payment Date, together with any installment of principal, if any, to the extent not in full payment of this
Class A(2017-1) Note, shall be made by check mailed to the Person whose name appears as the Registered Holder of this Class A(2017-1) Note on the Note Register
as of the close of business on each Record Date, except that with respect to Class A(2017-1) Notes registered on the Record Date in the name of the nominee of the clearing agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at the address of such Person as it appears on
the Note Register as of the applicable Record Date without requiring that this Class A(2017-1) Note be submitted for notation of payment. Any reduction in the principal amount of this Class A(2017-1) Note (or any one or more Predecessor Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Class A(2017-1) Note and of any Class A(2017-1) Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not
noted hereon. If funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Class A(2017-1) Note on a Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Class A(2017-1) Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture
Trustee’s agent appointed for such purposes located in the City of New York. 
 As provided in the Indenture and subject to certain
limitations set forth therein and as set forth in the first legend on the face hereof, the transfer of this Class A(2017-1) Note may be registered on the Note Register upon surrender of this Class A(2017-1) Note for registration of transfer at the office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed by a commercial bank or trust company located, or having a correspondent located, in the City of New
York or the city in which the Corporate Trust Office is located, or a member firm of a national securities exchange, and such other documents as the Indenture Trustee may require, and thereupon one or more new
Class A(2017-1) Notes of authorized denominations and in the same aggregate principal amount will be issued to the designated 

 
transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Class A(2017-1) Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 

To the fullest extent permitted by applicable law, each Noteholder or Note Owner, by acceptance of a
Class A(2017-1) Note or, in the case of a Note Owner, a beneficial interest in a Class A(2017-1) Note, covenants and agrees that by accepting the benefits of
the Indenture it will not at any time institute against the Issuer, any Master Trust or any special purpose entity that acts as a depositor with respect to any Master Trust or the Issuer, or join in any institution against the Issuer, any Master
Trust or any special purpose entity that acts as a depositor with respect to any Master Trust or the Issuer of, any receivership, insolvency, bankruptcy or other similar proceedings, or other proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, any Derivative Agreement, any Supplemental Credit Enhancement Agreement and any Supplemental Liquidity Agreement. 

Prior to the due presentment for registration of transfer of this Class A(2017-1) Note, the
Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Class A(2017-1) Note (as of the day of determination or as of such other date as
may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Class A(2017-1) Note be overdue, and neither the Issuer, the Indenture Trustee nor any such agent
shall be affected by notice to the contrary. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof
and the modification of the rights and obligations of the Issuer and the rights of the Holders of the Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing not less than 66 2/3% of the Outstanding
Dollar Principal Amount of each adversely affected Series, Class or Tranche of Notes. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Dollar Principal Amount of the
Notes, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Class A(2017-1) Note shall be conclusive and binding upon such Holder and upon all future Holders of this Class A(2017-1) Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Class A(2017-1) Note. The Indenture also permits the Indenture
Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 

The term “Issuer” as used in this Class A(2017-1) Note includes any successor to
the Issuer under the Indenture. 
 The Issuer is permitted by the Indenture, under certain circumstances, to merge or consolidate, subject
to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 

 The Class A(2017-1) Notes are issuable only in
registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth. 
 THIS CLASS A(2017-1) NOTE AND THE INDENTURE WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATION
LAW, WITHOUT REFERENCE TO ANY CONFLICT OF LAW PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER STATE. 
 No
reference herein to the Indenture and no provision of this Class A(2017-1) Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Class A(2017-1) Note at the times, place, and rate, and in the coin or currency herein prescribed. 

No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer on the Notes or under the Indenture or any
certificate or other writing delivered in connection therewith, against (i) the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuer or any successor or assign of the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed
(it being understood that the Owner Trustee has no such obligations in its individual capacity). The Holder of this Class A(2017-1) Note by the acceptance hereof agrees that, except as expressly provided
in the Indenture and the Indenture Supplement in the case of an Event of Default under the Indenture, the Holder shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that
nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this
Class A(2017-1) Note. 

 ASSIGNMENT 

Social Security or taxpayer I.D. or other identifying number of assignee 
  

                          
               
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto 
 (name and address of assignee) 
 the within
Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 

 

									
	Dated:	 	  
	 		 	  
	 	*
		 		 		 	Signature Guaranteed:	 	

  
  

	*	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.

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